<PAGE>

                                                                    Exhibit 10.1

                                                                Master Agreement
GTE                                                     Internetworking Services
___________________________
I N T E R N E T W O R K I N G                             Rev. February 19, 1998
POWERED BY BBN


This Master Agreement between GTE Internet Incorporated ("us") and the Customer
Identified below ("you") includes the attached Service Schedules and service
Quotations (collectively "Schedules") together with any additional Schedules
mutually agreed in writing in the future.

1.  Services.  We will provide you the Internetworking services ("Services")
specified in the Schedule(s).  Our commencement of providing any of the Services
shall constitute our acceptance of this Master Agreement.

2.  Prices.  Prices are stated in the Schedules and are guaranteed for the Term
stated in the Schedules.  If any of the Services are on a month-to-month basis,
we will give you at least 30 days notice of a price change.  In addition, you
are responsible for applicable taxes, tariffs, telecommunications, surcharges or
other governmental charges due on account of the Services.

3.  Payment.  Unless otherwise stated in a Schedule, we will invoice you
monthly.  You agree to pay within 30 days from receipt of invoice.  For overdue
invoices, you will pay interest of 1.5% for each month or part of a month (or
the maximum allowed by law, whichever is less).

4.  Our Responsibility.  We are responsible for providing the Services by
qualified personnel in a professional manner.  WE DISCLAIM ALL OTHER WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
A PARTICULAR PURPOSE.

5.  Your Responsibility.  You are responsible for the manner in which you use
the Services, including the maintenance and security of your data, computer
network and other facilities; your choice of equipment, software and online
content; and all other matters related to how you use the Services.  Unless
expressly permitted by a Schedule or separate reseller agreement with us, you
shall not resell Services, or access to Services, directly or indirectly to
third parties.

6.  Indemnification.  We will indemnify you for damages, costs and attorneys
fees you incur from any claim that our design of the Services infringes any U.S.
patent, copyright, trademark, trade secret or other intellectual property right.
You will indemnify us for damages, costs and attorneys fees we incur from any
claim arising from your manner of using of the Services, your combination of the
Services with other products or services not provided by us, or your
modification of the Services.  The indemnifying party shall conduct the defense
and shall have control of the litigation; the other party shall give prompt
notice of claims and shall cooperate in defending against the claim.  THE
PARTIES DISCLAIM THE IMPLIED WARRANTY OF NON-INFRINGEMENT, RELYING INSTEAD ON
THE TERMS OF THIS SECTION.

7.  IP Addresses.  Upon expiration, cancellation or termination of the Agreement
or applicable Schedule, you shall relinquish any IP addresses or address blocks
to you by us.

8.  Acknowledgment.  You agree that we may include your name in listings of our
customers.

9.  Compliance with Laws.  You shall not use or permit your end users to use the
Services in ways that violate laws of our acceptable use policy which is
published on our web site at http://www.bbn.com/zup, infringe the rights of
others, or interfere with users of our network or other networks.  For example,
you shall not distribute chain letters or unsolicited bulk electronic mail
("spamming"); propagate computer worms or viruses; use a false identity; attempt
to gain unauthorized entry to any site or network; distribute child pornography,
obscenity or defamatory material over the Internet; or infringe copyrights,
trademarks or other intellectual property rights.  You further agree to comply
with U.S. export laws concerning the transmission of technical data and other
regulated materials via the services.

10.  Termination.  Either party may terminate or cancel this Agreement if the
other fails to cure a material breach of the Agreement within 30 days after
receiving written notice of the breach.  We reserve the right, but assume no
obligation, to suspend performance immediately if you are more than 30 days
overdue in payments or if, in our reasonable judgment, you have violated Section
9.

11.  Limitation of Liability.  EXCEPT FOR (A) INDEMNIFICATIONS PURSUANT TO
SECTION 6, (B) BREACH OF ANY CONFIDENTIALITY OBLIGATIONS STATED IN A SERVICE
SCHEDULE, AND (C) BREACHES BY YOU OF LICENSE TERMS APPLICABLE TO GTE-PROVIDED
SOFTWARE.  NEITHER PARTY (NOR ITS SUPPLIERS OR CUSTOMERS) SHALL BE LIABLE TO THE
OTHER PARTY FOR PUNITIVE, SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES
INCLUDING WITHOUT LIMITATION, LOST PROFITS OR LOSS OR DAMAGE TO DATA ARISING OUT
OF THE USE OR INABILITY TO USE SERVICES, EVEN IF THE PARTY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES.

12.  Limitation of Damages.  OUR AGGREGATE LIABILITY TO YOU RELATING TO OR
ARISING OUT OF THIS AGREEMENT, WHETHER IN CONTRACT, TORT OR OTHERWISE, SHALL NOT
EXCEED (a) THE TOTAL AMOUNTS PAID BY YOU TO US FOR THE SERVICE IN QUESTION
DURING THE ONE-YEAR PERIOD IMMEDIATELY PRECEDING THE EVENT WHICH GAVE RISE TO
YOUR CLAIMS OR (b) $100,000, WHICHEVER IS LESS.

13.  Miscellaneous.  The terms and conditions of this Agreement supersede all
previous agreements, proposals or  representations related to the Services.
Except for assignments to GTE affiliates, neither party may assign this
Agreement without prior written consent of the other party.  This Agreement
shall be governed by the substantive laws of the Commonwealth of Massachusetts.
Any changes to this Agreement, or any additional or different terms in your
purchase orders, acknowledgments or other documents, will not be effective
unless expressly agreed to in writing by us.

        Please sign below to indicate your understanding and acceptance
                        of the terms of this Agreement.

Company (Type or Print Full Customer Name:____________________________________

Signature:____________________________________________ Date:__________________

Print Name:__________________________________________Title:___________________
<PAGE>

GTE                                                             Service Schedule
___________________________                                      DiaLinx Service
I N T E R N E T W O R K I N G
POWERED BY BBN                           (Global Access by U.S. Based Customers)
                                                      Version 2T - January, 1999

This Service Schedule is part of and is governed by the Master Agreement for
Internetworking Services ("Master Agreement").  The terms and conditions of the
Master Agreement are incorporated herein by reference.

1.  Covered Services.  We will provide you with the DiaLinx(TM) Basic Services
and Enhanced Services ("DiaLinx Service") indicated in the applicable GTE
Internetworking Service Quotation ("Quotation") which is attached hereto or
which we may provide to you in the future for additional DiaLinx Service.  The
term of the Service Period is one year or longer, as selected by you, and the
corresponding fees are described in the Quotation.  Our commencement of
providing DiaLinx Services to you under the Quotation shall constitute our
acceptance of the Agreement in respect of such DiaLinx Service.

2.  Service Description.  DiaLinx Service provides you with dial-up Internet
access service.  Further details of the DiaLinx Service are set forth in the
applicable Service Description.  Service Descriptions are available from your
GTE sales representative.

3.  Renewal.  We encourage you to contact us, via email to: renew@bbnplanet.com
                                                            -------------------
prior to the expiration of the then-current Service Period to renew the DiaLinx
Service for an additional term of one (1) year or greater.  If the Service
Period expires before it has been renewed in writing, then we may continue to
provide you with the DiaLinx Service on a month-to-month basis, at our then-
current  undiscounted list prices, until the Service Period has been renewed in
writing.

4.  Minimum Customer Commitment.  You agree to the Minimum Customer
Commitment(s) for each period as set forth in the Quotation.  You agree that you
are obligated to pay the greater of your actual usage or the Minimum Customer
Commitment for the applicable period.

5.  Third Party Access.  Subject to the terms and conditions of this Service
Schedule, you have the non-exclusive right to authorize access to DiaLinx
Services to your employees and/or to any third party (including the right to
sell such DiaLinx Service).  You agree that if you offer DiaLinx Service other
than to your bona fide employees, you will do so only pursuant to a binding
agreement incorporating terms substantially similar to those stated in Section
14 (Mandatory Flow-down Terms) of this Service Schedule.

6.  Responsibility for End Users.  You agree to be responsible for all billing
and collection from end users and that you will pay us on a timely basis,
regardless of whether you collect payment from end users.  You agree to be
responsible for all communications to and business relations with end users.
You shall be responsible for providing all technical and business support
related to DiaLinx Service access for end users, including but not limited to
responding to inquiries and questions, hot-line support, problem resolution,
providing system configuration, installation and support, as applicable and
other such services and shall maintain an organization which is highly trained
and qualified to provide such support.  You are responsible for authenticating
and authorizing access by your end users to DiaLinx Service.  Unless you have
purchased optional RADIUS hosting services from us, you shall install, operate,
and maintain a dedicated RADIUS server meeting the RADIUS specifications
published in Internet RFC 2138 and 2139 and all published derivative RFSs.  Our
RADIUS server will prompt each end user for the end user's identification and
password, and poll your RADIUS server for access information.  Unless otherwise
provided for in the Quotation, we will support only one authentication realm
(e.g. companyname.com).

7.  Equipment and Telephone Service.  You are solely responsible for obtaining
and providing the telephone services and user modems necessary to access DiaLinx
Service.  In no event will we be responsible for end user telephone charges.

8.  Network Access Availability.  ACCESS TO THE DIALINX NETWORK CANNOT BE
GUARANTEED TO YOU OR YOUR END USERS.  END USERS MAY BE UNABLE TO ACCESS THE
DIALINX SERVICE AT ANY TIME AND DISCONNECTIONS MAY OCCUR FROM TIME TO TIME.  YOU
AGREE THAT WE WILL NOT BE LIABLE FOR ANY DAMAGES THAT YOU OR YOUR END USERS MAY
INCUR ARISING OUT OF THE USE OR INABILITY TO USE THE DIALINX SERVICE.  THIS
DISCLAIMER IS IN ADDITION TO, NOT INSTEAD OF, THE DISCLAIMER, LIMITATION OF
LIABILITY AND LIMITATION OF DAMAGES CONTAINED IN THE MASTER AGREEMENT.

9.  Regulatory Charges.  We shall flow through to you any local exchange carrier
(LEC) price changes (i) that are attributable to changes in Federal or state
regulation, or (ii) for Federally regulated services that are treated as
exogenous regulatory cost changes by the Federal Communications Commission (the
"FCC") under its price caps regulations as defined in the FCC Rules.  47 C.F.R.
Section 61.45.  For purposes of this paragraph, price changes attributable to
changes in regulation include, but are not necessarily limited to, price changes
reflecting total or partial elimination of any enhanced services provider
exemption from payment of interexchange access charges or any regulatory
decision which results in application of multiple Subscriber Line Charges to
ISDN Primary Rate interface circuits or channelized T1 circuits.

10.  Compliance with Laws and Content Responsibility.  You shall not use or
permit the DiaLinx Service to be used (i) in violation of any applicable export
laws (including without limitation any U.S. export laws); (ii) in violation of
any applicable national, state, or local laws or regulations, including without
limitation any laws governing the import of the DiaLinx Service, or governing
the content which may be available via the DiaLinx Service; (iii) in violation
of our acceptable use policy which is published on our web site at

http://www.bbn.com/sup/; or (iv) in ways that infringe the rights of others, or
-----------------------
interfere with other users of our network or other networks.  For example, you
shall not distribute chain letter or unsolicited bulk electronic mail
("spamming"); propagate computer worms or viruses; use a false identity; attempt
to gain unauthorized entry to any site or network; distribute child pornography,
obscenity or defamatory material over the Internet; or infringe copyrights,
trademarks or other intellectual property rights.  We reserve the right to
suspend or terminate the DiaLinx Service (or any portion thereof) without notice
in the event that we believe that your use (or any of your end user's use) of
the DiaLinx Service may be in violation of this section.  You acknowledge that
we have no control over or liability for the actions of local jurisdictions
which may restrict or block the DiaLinx Service.

11.  Currency and Taxes.  All payments shall be in U.S. Dollars.  You are
responsible for the payment of all taxes (including without limitation
applicable VAT or withholding taxes but excluding taxes based solely on our net
income), import duties, or other applicable telecommunications or regulatory
fees (collectively, "Taxes").  You shall not deduct any such Taxes from the
amounts owed to us.  In the
<PAGE>

GTE                                                             Service Schedule
___________________________                                      DiaLinx Service
I N T E R N E T W O R K I N G
POWERED BY BBN                           (Global Access by U.S. Based Customers)
                                                      Version 2T - January, 1999

event you are required to withhold Taxes from any payment due to us, then the
amount of such payment shall be automatically increased to totally offset such
Taxes, so that the amount actually remitted to us, net of all Taxes, equals the
amount invoiced or otherwise due.

12.  Disputes.  Any dispute arising out of or in connection with the DiaLinx
Service in a country other than the United States, shall be referred to and
finally resolved by arbitration in accordance with the Rules of the
International Chamber of Commerce then in force; provided, however, that either
party may, at its sole discretion, seek injunctive relief in the courts of any
jurisdiction as may be necessary and appropriate to protect its proprietary or
confidential information.  The language used in the arbitral proceedings, and
the governing language of this agreement, shall be English.  Unless otherwise
mutually agreed upon in writing by the parties, the site of the arbitration
shall be Boston, Massachusetts, U.S.A.  Judgment upon the award of the
arbitration may be entered in any court having jurisdiction thereof.

13.  Governing Law.  The governing law in any dispute shall be the substantive
law of the Commonwealth of Massachusetts, U.S.A. without regard to conflicts of
law.  The parties expressly agree that the U.N. Convention on Contracts for the
International Sale of Goods shall not apply to the Agreement.

14.  Local Access Numbers.  We expect the DiaLinx network to change over time in
order to meet the needs of our customers.  We reserve the right to add to,
delete or change the dial-in access numbers associated with a specified service
category from time to time.  You will be notified of changes to the DiaLinx
network or access numbers via periodic e-mail updates.

We may periodically add additional dial up access service categories as the
DiaLinx network evolves.  These additional services and respective prices will
be made available on an ongoing basis, via e-mail updates notifying you of the
additional service.  Use of such additional services by you or your end users
will be deemed your acceptance of the updated service and pricing.  For a
current list of services, pricing, and dial up access numbers associated with
each service, please consult our Web page as listed in your DiaLinx Service
Description or contact your GTE Internetworking representative.

15.  Mandatory Flow-down Terms.  You agree to include terms  substantially
similar to the following minimum terms in legally binding agreements with end
users who are not your bona fide employees.  For the purpose of this section,
"Network Services Supplier" shall mean us.  "Company" shall mean you.  "User"
shall mean the non-employee end user, and "Network" shall mean the dial-up
network operated and maintained by us; and "Services" shall mean the DiaLinx
Service:

No Right of Resale.  User may not resell or redistribute any Services.
------------------

Content Responsibility.  User understands that neither Company nor its Network
----------------------
Services Supplier is responsible for the content of the transmissions which may
pass through the Network.  User agrees that it will NOT use the Services in ways
that violate laws, infringe the rights of others, or interfere with the users,
services, or equipment of other networks.  For example, you shall not distribute
unsolicited advertising, chain letters, or commercial electronic mail
("spamming"); propagate computer worms or viruses; attempt to gain unauthorized
entry to other computers, data or networks; distribute child pornography,
obscenity, or defamatory material over the Internet; or infringe copyrights,
trademarks, or other intellectual property rights.

Warranty and Liability Limitations.  COMPANY DOES NOT WARRANT THAT THE SERVICES
----------------------------------
WILL BE AVAILABLE ON A SPECIFIED DATE OR TIME OR THAT THE NETWORK WILL HAVE THE
CAPACITY TO MEET THE DEMAND OF END USERS DURING SPECIFIC HOURS.  USER MAY BE
UNABLE TO ACCESS THE NETWORK AT ANY TIME, AND DISCONNECTION FROM THE NETWORK MAY
OCCUR FROM TIME TO TIME.  NEITHER COMPANY NOR ITS NETWORK SERVICES SUPPLIER WILL
BE LIABLE FOR UNAUTHORIZED ACCESS TO COMPANY'S OR USER'S TRANSMISSION FACILITIES
OR PREMISES EQUIPMENT OR FOR UNAUTHORIZED ACCESS TO OR ALTERATION, THEFT OR
DESTRUCTION OF USER'S DATA FILES, PROGRAMS, PROCEDURES OR INFORMATION THROUGH
ACCIDENT, FRAUDULENT MEANS OR DEVICES, OR ANY OTHER METHOD, REGARDLESS OF
WHETHER SUCH DAMAGE OCCURS AS A RESULT OF COMPANY'S OR ITS NETWORK SERVICE
SUPPLIER'S NEGLIGENCE.  IN NO EVENT WILL COMPANY OR ITS NETWORK SERVICES
SUPPLIERS BE LIABLE FOR ANY DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF DATA,
LOSS OF REVENUE OR PROFITS, OR FOR ANY OTHER SPECIAL, INCIDENTAL, INDIRECT OR
CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THE USE OF OR
INABILITY TO USE SERVICES OR PRODUCTS PROVIDED HEREUNDER.

 Please sign below to indicate your understanding and acceptance of the terms
                           of this Service Schedule.

Company (Type or Print Full Customer Name:____________________________________

Signature:____________________________________________ Date:__________________

Print Name:__________________________________________Title:___________________
<PAGE>

GTE                                                                    Quotation
___________________________                       DiaLinx Services (Version 2.1)
I N T E R N E T W O R K I N G
POWERED BY BBN


                   Quotation for DiaLinx Service - Netpliance
--------------------------------------------------------------------------------

TO: Netpliance                                   Quote Date:     05-27-99
                                                 Quote Valid to: 06-27-99
                                                 Quote Number:   Netp052799


Quotation for DiaLinx Service
This Quotation is for DiaLinx Service Version 2.1, and sets forth the pricing
and volume commitments agreed to under the Service Schedule for DiaLinx
Services.

1.      Recital: For ease of understanding, this section highlights the general
elements of pricing and commitments:

        1.1     Network Access. You will be billed for each user who may access
                the GTE Internetworking DiaLinx network ("Network"). Several
                pricing options are available to you regarding user usage. These
                options include [* Confidential Treatment Requested]

        1.2     Minimum Customer Commitment: In return for volume discounts
                (inherent in the prices stated below), you have agreed to use a
                minimum dollar volume of network access in each month of the
                agreement ("Minimum Customer Commitment") for each pricing
                realm. In the event that network access charges for a given
                realm do not meet the Minimum Customer Commitment, you will be
                billed for this minimum amount.

        1.4     Surcharge: You will be billed additional charges for user's use
                of the International or 800 or 888 dial access.

2.      Territory: The Territory for Network access shall be the Global DiaLinx
        Network.

3.      Commencement Date: The Commencement Date is the day on which you or a
        user first connect to the Network, whichever is earlier.

4.      Service Period: The Service Period shall be [* Confidential Treatment
        Requested] plus an initial period consisting of one (1) partial calendar
        month. Month zero (0) means the partial calendar month beginning on the
        Commencement Date. Month one (1) means the full calendar month
        immediately following the Commencement Date, etc.

5.      Minimum Customer Commitment: During the Service Period, in return for
discounts inherent in the pricing outlined herein, you have agreed to use a
minimum dollar volume of network access in each month of the agreement ("Minimum
Customer Commitment") for each pricing realm (as described in Section 6). In the
event that Network access charges for a given pricing realm do not meet the
Minimum Customer Commitment you will be billed for the difference between the
amount actually charged within the given month and the Minimum Customer
Commitment.

[* Confidential Treatment Requested]
<PAGE>

6.   Rates and Charges: You have the following pricing options available for
     your users. A user is defined as a unique login ID. We reserve the right to
     prohibit multiple concurrent network sessions using the same login ID.

     U.S. Local Dial Access:

     [* Confidential Treatment Requested]

6.1  800/888 Surcharge: In addition to any other applicable charges, access to
     the Network via the U.S. 800/888 or Canadian 800/888 dial-up numbers will
     incur an additional charge per hour per user. Access via the U.S. 800/888
     dial-up numbers will incur [* Confidential Treatment Requested] per user
     for access via the Canadian-US 800/888 dial-up numbers.

6.2  ISDN Surcharge: Access via ISDN will be charged in accordance with the
     applicable realm pricing. [* Confidential Treatment Requested]

6.3  International Surcharges: In addition to any other applicable charges,
     access by to the Network via any Dialinx International Access Number will
     incur an additional charge per hour per user as detailed in the
     International Rate table below.

         International users will be billed a monthly International use for each
         month that a user accesses the DiaLinx International network, (much
         like a cellular phone "roaming fee"). If an individual user does not
         access the DiaLinx International network in any given month, no fee
         will be applied. Use of the Canadian 800/888 service is not a part of
         the DiaLinx International network.

         [* Confidential Treatment Requested]

     A list of dial-in access numbers associated with each DiaLinx International
     zone can be found at http://www.bbn.com/support/docs/intpops.xls. GTE
     Internetworking expects the DiaLinx network to change over time in order
     to meet the changing needs of our customers. We reserve the right to add
     to, delete or change the dial-in access number associated with a specified
     zone from time to time.
<PAGE>

GTE                                                                    Quotation
___________________________                       DiaLinx Services (Version 2.1)
I N T E R N E T W O R K I N G
      POWERED BY BBN

All Network connect time is rounded up to the next highest minute and billed in
one minute increments.  Invoices are issued monthly and due net thirty (30)
days.  All pricing is listed as U.S. dollars.

7.   Basic Services - Recurring Fees:
     -------------------------------

     7.1  Network Access:  You will be charged for Network Access, which, for
          --------------
          each calendar month, shall be the greater of either (A) or (B) for
          each pricing realm:

            (A)   Access charges due in accordance with Section 6, above;
                  OR
            (B)   Minimum Monthly Customer Commitment, as set in Section 5 forth
                  above.

     7.2  Service Level Assurance:  GTEI will provide nationwide 24 hour busy
          -----------------------
          free dial of >95% per month, as measured by Inverse Network
          Technology.  Should GTEI fail to meet this metric consistently through
          a calendar quarter, GTEI will issue a 1% credit on each subsequent
          monthly bill for each 1% below the 95% threshold."

          GTEI will adhere to the escalation procedures as stated in the
          document "Working with Customer Care: An Authorized Technical
          Contracts Guide". Including the ability to escalate open issues to the
          effected departments VP's within 24 hrs through the assigned
          XPressLane contact.

8.   Enhanced Services - One Time and Recurring Fees:  In addition to the fees
     -----------------------------------------------
     for Basic Services under section 7, you will be charged for optional
     Enhanced Services as set forth below:

     None Selected.


 Please sign below to indicate your understanding and acceptance of the terms
                              of this Quotation.

Company (Type or Print Full Customer Name:____________________________________

Signature:____________________________________________ Date:__________________

Print Name:__________________________________________Title:___________________
<PAGE>

      GTE

 COMMUNICATIONS
  CORPORATION

                                AMENDMENT NO. 1
                                       TO
                 MASTER AGREEMENT FOR INTERNETWORKING SERVICES

The Master Agreement for Internetworking Services (Agreement), including the
Service Schedule - DiaLinx Service (DiaLinx Schedule) between GTE Communications
Corporation (We) and NetPliance (You) is hereby modified as set forth below.  To
the extent that there are any conflicts between the terms of this Amendment No.
1 and the terms of the Agreement, including the DiaLinx Schedule, this Amendment
No. 1 shall control.

Agreement
---------

  1. Section 10 Termination.  The last sentence in Section 10 is deleted and
     replaced with the following provisions:  "We reserve the right, but assume
     no obligation, to suspend performance if you are more than 30 days overdue
     in payments or if, in our reasonable judgment, you have violated Section 9,
     provided, however, we will not suspend performance unless you have failed
     to cure such delinquency or violation within 5 business days after
     receiving written notification from us, identifying the amount overdue
     and/or explaining the basis of your Section 9 violation.  Notwithstanding
     the foregoing, we reserve the right to suspend performance immediately for
     Section 9 violations if required to do so by law enforcement or regulatory
     authorities."

DiaLinx Schedule
----------------

  1. Section 4 Minimum Customer Commitment & Billing.

     Add as new last sentence.  Cancellation Charge.  After a Service
                                -------------------
     Quote is accepted by GTE, Customer may cancel all or a portion of the
     Services described therein if Customer provides written notification
     thereof to GTE at least 60 days prior to the effective date of
     cancellation.  In such case, Customer shall pay to GTE all charges for
     Service provided through the effective date of such cancellation plus a
     cancellation charge determined as follows:  (i) if such cancellation
     becomes effective prior to completion of the first year of the initial
     term, then the cancellation charge shall be an amount equal to the balance
     of the monthly charges for Service (then in effect at the time of
     cancellation) for such canceled Service that otherwise would have become
     due for the unexpired portion of the first year of such term plus fifty
     percent (50%) of the balance of such monthly charges for Service for the
     remainder of such term beyond the first year; (ii) if cancellation becomes
     effective after completion of the first year of the initial term, before
     any renewal of this Agreement occurs, then the cancellation charge shall be
     an amount equal to fifty percent (50%) of the balance of the
<PAGE>

     monthly charges for Service (then in effect at the time of cancellation)
     for such canceled Service that otherwise would have become due for the
     unexpired portion of the initial term; and (iii) if such cancellation
     becomes effective prior to completion of any renewal term, then the
     cancellation charge shall be an amount equal to the balance of the monthly
     charges for Service (then in effect at the time of cancellation) for such
     canceled Service that otherwise would have become due for the unexpired
     portion of the renewal term. In the event monthly charges for Service are
     not fixed, monthly charges for Service shall be the average charges for
     usage of Services over the three calendar months prior to GTE's receipt of
     notice of cancellation.

  2. Section 8 Network Access Availability.  The third sentence in Section 8,
     beginning in line 5, is modified by adding the following provision after
                                                                        -----
     the word "damages" in the third sentence thereof:  ("Except as set forth in
     ---------------------------------------------------------------------------
     the attached Service Quotation").
     ---------------------------------

  3. Section 9 Regulatory Changes.  The following provision is added after the
     end of the first sentence of this Section:  "If allowed by the applicable
     Federal or State regulations, and if such price changes are wholly in the
     control of us, we will provide you with 30 days advance written notice
     before imposing any such price changes."

  4. Section 10 Compliance with Laws and Content Responsibility.  The third
     sentence in Section 10, beginning in line 16, is deleted and replaced with
     the following provisions:  "We reserve the right to suspend or terminate
     the DiaLinx Service (or any portion thereof) in the event that we believe
     that your use (or any of your end user's use) of the DiaLinx Service may be
     in violation of this section, provided, however, we will not suspend or
     terminate the DiaLinx Service unless you have failed to cure a violation
     within 5 business days after receiving written notification from us,
     explaining the basis of your violation.  Notwithstanding the foregoing, we
     reserve the right to suspend or terminate the DiaLinx Service immediately
     for violations of this section if required to do so by law enforcement or
     regulatory authorities."

Each individual executing this Amendment No. 1 for and on behalf of a party
represents that he or she if fully authorized to do so.

GTE Communications Corporation   NetPliance

By:                              By:
   ----------------------------     -----------------------------
Name:                            Name:
     --------------------------       ---------------------------
Title:                           Title:
      -------------------------        --------------------------