Document:

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                                                                     EXHIBIT 4.2

                        FORM OF SUBSCRIPTION AGREEMENT

                               February 11, 2000

Integral Systems, Inc.
5000 Philadelphia Way, Suite A
Lanham, Maryland  20706

Ladies/Gentlemen:

  1.   Subscription; Purchase and Closing; Purchase Price Adjustment.
       -------------------------------------------------------------

       1.1  The undersigned ("Subscriber"), intending to be legally bound
hereby, subscribes for and agrees to purchase the number of shares (the
"Shares") of the Common Stock, par value $.01 per share (the "Common Stock"), of
Integral Systems, Inc., a Maryland corporation (the "Company"), indicated on the
signature page hereto, at a price of $31.00 per share (the "Purchase Price") and
upon the terms and conditions set forth in this subscription agreement (this
"Agreement").

       1.2  The Shares subscribed for hereby shall not be deemed owned by
Subscriber, nor shall Subscriber be deemed a holder of securities of the
Company, until this subscription has been accepted by the Company and the
Purchase Price for the Shares subscribed for has been paid.  Subscriber
understands and agrees that the Company reserves the right to reject this
subscription for the Shares in whole or in part, in its sole discretion, at any
time through the Closing Date (as that term is defined in Section 1.5).  This
subscription is subject to allotment.   If subscription for the Shares is
oversubscribed, the Company will determine which subscriptions shall be
accepted, in whole or in part.

       1.3  In the event of rejection of this subscription, or in the event the
sale of the Shares is not consummated for any reason (in which event this
Agreement shall be deemed to be rejected), this Agreement shall have no force or
effect.

       1.4  Subscriber hereby agrees to deliver the Purchase Price required to
purchase the number of Shares subscribed for hereunder, as that amount may be
reduced pursuant to Section 1.2 hereof, on the Closing Date set by the Company
pursuant to Section 1.5 hereof.

       1.5  The closing of the transactions contemplated herein (the "Closing")
shall take place at such time as the Company and ING Barings LLC, Allen &
Company Incorporated and Miller, Johnson & Kuehn, Inc., as co-placement agents
(together, the "Placement Agents"), shall determine.  The Placement Agents shall
establish and inform Subscriber of the closing date for such subscription (the
"Closing Date") and the date upon which the Purchase Price shall be delivered to
the Company.
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       1.6  Payment of the full Purchase Price for the Shares to be purchased
shall be made on the Closing Date by wire transfer of immediately available
funds or at such other time and by such other means as the Company shall
approve.  The Company or the Placement Agents will notify Subscriber as to
payment instructions.  Upon the Closing Date, certificates representing the
Shares purchased by Subscriber will be delivered by the Company to Subscriber.

  2.   Representations, Warranties and Agreements of Subscriber.  Subscriber
       --------------------------------------------------------
hereby represents and warrants to the Company and hereby covenants and agrees
with the Company as follows:

            (a) Subscriber has full power and authority to enter into this
Agreement and to perform its obligations hereunder. All requisite action on the
part of Subscriber necessary for the authorization, execution, delivery and
performance of Subscriber's obligations under this Agreement and for the
purchase of the Shares has been taken, and this Agreement, when executed by a
duly authorized officer of Subscriber, will be a valid and binding agreement of
Subscriber, enforceable in accordance with its terms, except as such
enforceability may be limited by (i) bankruptcy, insolvency, reorganization or
other similar laws and legal and equitable principles limiting or affecting the
rights of creditors generally and/or (ii) general principles of equity,
regardless of whether considered in a proceeding in equity or at law, and except
as rights to indemnification hereunder may be limited by federal or state
securities laws.

            (b) Subscriber has carefully read this Agreement and, to the extent
Subscriber believes necessary, has discussed with Subscriber's counsel and other
professional advisor(s) the representations, warranties, covenants and
agreements which Subscriber makes by signing it, and any applicable limitations
upon Subscriber's transfer of the Shares issuable thereunder. Subscriber
acknowledges that Subscriber has not relied upon the legal counsel or
accountants for the Company regarding the transactions contemplated by this
Agreement, and Subscriber has been advised to engage separate legal counsel and
accountants to represent Subscriber's individual interest and advise Subscriber
regarding the structure of, and risks associated with, such transactions.

            (c) Subscriber understands that, as a publicly traded company, the
Company files with the Securities and Exchange Commission (the "SEC") various
reports, including quarterly and annual financial statements, annual reports to
stockholders, and proxy statements and that all of such reports statements and
information are available to the public, including Subscriber, from the SEC and
directly from the Company. Subscriber acknowledges that the Company has
delivered to Subscriber within a reasonable time prior to the execution of this
Subscription Agreement a copy of the following: (i) an Executive Summary dated
January 24, 2000; (ii) the Company's Annual Report on Form 10-KSB for the fiscal
year ended September 30, 1999; (iii) the Company's Quarterly Report on Form 10-
QSB for the fiscal quarter ended June 30, 1999; (iv) Amendment No. 1 to the
Company's Registration Statement on Form S-3 (Registration No. 333-82499) filed
with the SEC on July 28, 1999; (v) the Company's definitive proxy statement
filed with the SEC on March 23, 1999 and an amendment thereto filed with the SEC
on April 12, 1999 relating to its 1999 Annual Meeting of Stockholders; (vi) the
Company's press releases since September 30, 1999; and (vii) such other
documents as

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Subscriber (and Subscriber's attorney, accountant and/or other advisors) deemed
pertinent in order for Subscriber to make an informed investment decision (the
documents identified in clauses (i) through (vii) herein are collectively
referred to herein as the "Documents"). The Documents contain "forward-looking
statements" about business strategies, market potential, future financial
performance and other matters. These forward-looking statements are predictions.
No assurances can be given that the future results indicated, whether expressed
or implied, will be achieved. Subscriber acknowledges and agrees that the
inclusion of forward-looking statements in the Documents should not be regarded
as a representation by the Company or any other person that these estimates will
be realized, and actual results may vary materially.

          Subscriber further acknowledges that Subscriber is entering into this
Agreement solely on the basis of information contained in the Documents and not
on the basis of any information, representations or agreements made by any other
person, and that no representations or warranties of any nature have been made
to Subscriber with respect to the ultimate economic consequences or tax
consequences of Subscriber's investment in the Company.  Subscriber acknowledges
that any forecasted financial data, if any, which may have been given to
Subscriber is for illustration purposes only and no assurance is given that
actual results will correspond with the results contemplated in any such data.

          (d) Subscriber acknowledges that Subscriber has had the opportunity to
ask questions of, and receive answers from, or obtain additional information
from, the executive officers of the Company concerning the financial and other
affairs of the Company and the terms and conditions of its investment hereunder,
and, to the extent deemed necessary, Subscriber has asked such questions and
received satisfactory answers and desires to invest in the Company.  In
evaluating the suitability of an investment in the Company, the Subscriber has
not relied upon any representations or other information (whether oral or
written) other than as set forth in this Agreement or as contained in any
documents delivered or answers given in writing by the Company to questions
furnished to the Company.  Subscriber has been advised and acknowledges that no
federal or state agency has made any finding or determination as to the fairness
or merits of an investment in the Company and that no such agency has made any
recommendation or endorsement whatsoever with respect to such an investment.

          (e) Subscriber is an "accredited investor" as that term is defined in
Rule 501 of Regulation D promulgated by the SEC under the Securities Act of
1933, as amended (the "Securities Act").  For this purpose, Subscriber
understands that an "accredited investor" includes:

              (i)   any individual who: (A) has a net worth (with spouse) in
     excess of $1 million; or (B) has had an individual income in excess of
     $200,000 (or joint income with spouse in excess of $300,000) in each of the
     two most recent years and who reasonably expects the same income level for
     the current year; or (C) who is an executive officer or director of the
     Company;

               (ii) any entity in which all of the equity owners or partners are
     "accredited investors;" or

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               (iii)  any corporation or partnership with total assets in excess
     of $5,000,000 that was not formed for the specific purpose of purchasing
     the securities subscribed hereunder; or

               (iv)   any investment company registered under the Investment
     Company Act of 1940, as amended (the "Investment Company Act"), or a
     business development company as defined in Section 2(a)(48) of the
     Investment Company Act.

          (f)  Subscriber considers himself/herself/itself to be a sophisticated
investor in companies similarly situated to the Company, and Subscriber has
substantial knowledge and experience in financial and business matters
(including, without limitation, knowledge of finance, securities and
investments, generally, and experience and skill in investments based on actual
participation) such that Subscriber is capable of evaluating the merits and
risks of the prospective investment in the Company.

          (g)  Subscriber's current address and, if Subscriber is an entity, the
address of the office or offices of Subscriber where the investment decision
with respect to this Agreement was made, are as set forth on the signature page
hereto.  If Subscriber is an entity which does not meet the classification set
forth under Section 2(e)(iii) or Section 2(e)(iv) above, each of Subscriber's
equity owners and/or partners has the same state of residence as the state in
which the office or offices of Subscriber are located where the investment
decision with respect to this Agreement was made, and none of Subscriber's
equity owners and/or partners has any present intention of moving from such
state of residency.

          (h)  Subscriber has been advised and acknowledges that the issuance of
the Shares will not be registered under the Securities Act, in reliance upon the
exemption(s) from registration promulgated thereunder, and, therefore, are
"restricted securities."  Subscriber also acknowledges that the issuance of the
Shares will not be registered under the securities laws of any state.
Consequently, Subscriber agrees that the Shares cannot be resold unless they are
registered under the Securities Act and applicable state securities laws, or
unless an exemption from such registration requirements is available.
Subscriber has been advised and acknowledges that the Company is under no
obligation to take any action necessary in order to make available any exemption
for the transfer of the Shares without registration.

          (i)  Subscriber is purchasing the Shares solely for Subscriber's own
account and not as nominee for, representative of, or otherwise on behalf of,
any other person. Subscriber is purchasing the Shares with the intention of
holding the Shares for investment, with no present intention of participating
directly or indirectly in a subsequent public distribution of the Shares unless
registered under the Securities Act and applicable state securities laws, or
unless an exemption from such registration requirements is available. Subscriber
shall not make any sale, transfer or other disposition of the Shares in
violation of state or federal law.

          (j)  Subscriber has been advised that there is no assurance than an
active market for the Shares will continue in the future.  Subscriber is aware
that Subscriber's investment in the Company is speculative and involves a high
degree of risk of loss arising from,

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among other things, substantial market, operational, competitive and other
risks, and, having made Subscriber's own evaluation of the risks associated with
this investment, Subscriber is aware and Subscriber has been advised that
Subscriber must bear the economic risks of a purchase of the Shares
indefinitely.

          (k) Subscriber acknowledges that the Shares were not offered to
Subscriber by means of any form of general or public solicitation or general
advertising, or publicly disseminated advertisements or sales literature,
including, without limitation, (i) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media, or
broadcast over television or radio, or (ii) any seminar or meeting to which
Subscriber was invited by any of the foregoing means of communication.

          (l) Subscriber understands and agrees that the Company, and all
current and future stockholders of the Company, are relying on the agreements
and representations contained herein.

          (m) In connection with the purchase of the Shares by Subscriber,
Subscriber has not paid and will not pay, and has no knowledge of the payment
of, any commission or other direct or indirect remuneration to any person or
entity for soliciting or otherwise coordinating the purchase of the Shares,
except for fees paid to the Placement Agents.

          (n) Subscriber has been advised and agrees that there will be placed
on any certificates representing the Shares, or any substitution(s) thereof, a
legend stating in substance the following (and including any restrictions or
conditions that may be required by any applicable state law), and Subscriber has
been advised and further agrees that the Company will refuse to permit the
transfer of the Shares out of Subscriber's name in the absence of compliance
with the terms of such legend:

     "The shares represented by this certificate have not been
     registered under the Securities Act of 1933, as amended, or under
     any state securities laws and may not be sold, pledged,
     transferred, assigned or otherwise disposed of except in
     accordance with such Act and the rules and regulations thereunder
     and in accordance with applicable state securities laws. The
     Company will transfer such shares only upon receipt of evidence
     satisfactory to the Company, which may include an opinion of
     counsel, that the registration provisions of such Act have been
     compiled with or that such registration is not required and that
     such transfer will not violate any applicable state securities
     laws."

          (o) Subscriber is aware that the Company may offer and sell additional
shares of Common Stock in the future, thereby diluting Subscriber's percentage
equity ownership of the Company.

          (p) Subscriber is familiar with Regulation M promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), a copy of
which is attached

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hereto as Exhibit A, and is in full compliance with the provisions thereof with
          ---------
respect to the transactions contemplated hereby.

          Subscriber represents that the foregoing representations and
warranties are true and correct as of the date hereof and, unless Subscriber
otherwise notifies the Company prior to the Closing Date, shall be true and
correct as of the Closing Date.  The foregoing representations and warranties
shall survive the Closing Date.

  3.   Representations of the Company.  As used in this Section 3, the following
       ------------------------------
capitalized terms shall have the meanings set forth below:

       "Contract" means any agreement, indenture, lease, sublease, license,
sublicense, promissory note, evidence of indebtedness, insurance policy,
annuity, mortgage, restriction, commitment, obligation or other contract,
agreement or instrument (whether written or oral).

       "GAAP" means generally accepted accounting principles in effect in the
United States of America from time to time.

       "Material Adverse Change" or "Material Adverse Effect" means, with
respect to any Person, any change or effect that is materially adverse to the
financial condition, business, prospects or results of operations of such
Person.

       "Person(s)" means any individual, sole proprietorship, partnership, joint
venture, trust, limited liability company, incorporated organization,
association, corporation, institution, public benefit corporation, entity or
government (whether federal, state, county, city, municipal or otherwise,
including, without limitation, any instrumentality, division, agency, body or
department thereof).

       Subscriber is subscribing for the Shares based upon the following
representations and warranties of the Company, which the Company hereby confirms
by accepting this subscription:

          (a) Organization.  The Company is a corporation duly organized,
              ------------
validly existing and in good standing under the laws of the State of Maryland
and has the corporate power to own and/or lease its properties and to conduct
its business in the places where such properties are now owned, leased or
operated or such business is presently conducted.  The Company is duly qualified
and licensed as a foreign corporation in additional jurisdictions in which it
owns or leases real property or in which its operations or activities would
otherwise require such qualification, except where such failure to qualify would
not have a Material Adverse Effect on the Company.

          (b) Authorization.  The execution, delivery and performance of this
              -------------
Agreement by the Company has been duly and validly authorized and approved by
its Board of Directors, and this Agreement, when executed by a duly authorized
officer of this Company, will be a valid and binding agreement of the Company,
enforceable in accordance with its terms, except as such enforceability may be
limited by (i) bankruptcy, insolvency, reorganization or

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other similar laws and legal and equitable principles limiting or affecting the
rights of creditors generally and/or (ii) general principles of equity,
regardless of whether considered in a proceeding in equity or at law, and except
as rights to indemnification hereunder may be limited by federal or state
securities laws.

          (c) Capitalization.  The authorized capital stock of the Company
              --------------
consists of 40,000,000 shares of Common Stock, $.01 par value per share.  All
issued and outstanding shares of capital stock of the Company have been, and as
of the Closing Date will be, duly authorized and validly issued and are fully
paid and non-assessable.  As of the date hereof, 7,250,326 shares of Common
Stock are issued and outstanding.  The Company has a Stock Option Plan, pursuant
to which the Company has issued options to acquire up to an aggregate of 767,810
shares of Common Stock to its officers, directors, other employees and non-
employee consultants.  As of the date hereof, 408,660 of such options are
exercisable under this plan.

          (d) No Violations; Defaults.  The execution and delivery of this
              -----------------------
Agreement and the consummation of the transactions contemplated by this
Agreement will not (i) violate, result (with the lapse of time or giving of
notice, or both) in a violation of, conflict with, or constitute a default
under, or permit the termination or acceleration of the maturity of any material
indebtedness or material obligation of the Company; (ii) violate, result (with
the lapse of time or giving of notice, or both) in a violation of, conflict with
or constitute a default under, any material term of, or permit the termination
of, any material note, mortgage, indenture, license, agreement, contract,
arrangement, understanding or other instrument to which the Company is a party,
or by which it is bound, or the Articles of Incorporation or By Laws of the
Company; or (iii) violate any statute, law, rule, regulation or ordinance known
to the Company, or any judgment, decree, order regulation or rule of any court,
tribunal, administrative or governmental agency, body or entity to which the
Company or its properties are subject.

          (e) Validity of Securities.  The Shares, when issued, sold and
              ----------------------
delivered in accordance with the terms and conditions hereof, will be duly
authorized, validly issued, fully paid and non-assessable, and the delivery to
Subscriber of the Shares delivered pursuant to this Agreement shall vest in it
good title thereto, free of any and all liens, options, encumbrances, charges,
third-party rights or claims of any nature whatsoever except for restrictions on
transfers set forth herein or imposed by law.

          (f) Disclosure.  The Company is aware of no facts which lead it to
              ----------
believe that the Documents, as of their respective dates, contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading.

          (g) Material Changes.  Except as set forth in the Documents, or as
              ----------------
otherwise contemplated herein, since September 30, 1999, there has been no
Material Adverse Change in the Company, and there has not been (i) any direct or
indirect redemption, purchase or other acquisition by the Company of any shares
of the Common Stock, or (ii) declaration, setting aside or payment of any
dividend or other distribution by the Company with respect of the Common Stock.

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          (h) No Commissions.  In connection with the purchase of the Shares
              --------------
hereunder, the Company has agreed to pay the Placement Agents a placement fee
and certain expenses relating to the transactions contemplated hereunder.
Except for such placement fee and expenses, the Company has not incurred any
other obligation for any finder's or broker's or agent's fees or commissions in
connection with the sale of the Shares.

          (i) Consents/Approvals.  No consent, approval, waiver or other action
              ------------------
by any Person under any Contract to which the Company is a party, or by which
any of its properties or assets are bound, is required or necessary for the
execution, delivery or performance by the Company of this Agreement and the
consummation of the transactions contemplated hereby, except for such consents,
approvals or waivers that have been obtained or except where the failure to
obtain such consents, filings, authorizations, approvals or waivers or make such
filings would not have a Material Adverse Effect on the Company.

          (j) SEC Reports and NASDAQ Compliance.  Since September 30, 1998, the
              ---------------------------------
Company has made, in a timely fashion, all filings (as amended, the "SEC
Reports") required to be made by it under the Exchange Act.  The SEC Reports,
when filed, complied in all material respects with all applicable requirements
of the Securities Act and the Exchange Act and the securities laws, rules and
regulations of any state and pursuant to the requirements of applicable law.
The Company will use its best efforts to ensure its continued inclusion in, and
the continued eligibility of the Common Stock for trading on, the NASDAQ
National Market under all currently effective and currently proposed inclusion
requirements prior to and after the Closing.

          (k) Financial Statements.  Each of the balance sheets included in the
              --------------------
Documents (including any related notes and schedules) fairly presents in all
material respects the financial position of the Company as of its date, and each
of the other financial statements included in the Documents (including any
related notes and schedules) fairly presents in all material respects the
results of operations or other information therein of the Company for the
periods or as of the dates therein set forth in accordance with GAAP
consistently applied during the periods involved (except that the interim
reports are subject to normal recording adjustments which might be required as a
result of year-end audit and except as otherwise stated therein).

          The Company represents that the foregoing representations and
warranties are true and correct as of the date hereof and, unless the Company
otherwise notifies Subscriber prior to the Closing Date, shall be true and
correct as of the Closing Date.  The foregoing representations and warranties
shall survive the Closing Date.

  4.  Registration Rights.
      -------------------

      4.1 Registration of Shares.  As soon as practicable, but in any event no
          ----------------------
later than 30 days after the Closing Date, the Company will file a registration
statement (the "Registration Statement") under the Securities Act with respect
to all of the Shares (collectively, the "Subject Stock"), and the Company shall
use its best efforts to cause such Registration Statement to become effective as
soon as practicable after filing; provided, however, that in the event that the
                                  --------  -------
Company shall determine in good faith that complying with the foregoing 30-day
period would

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cause undue burden or expense to the Company, the Company shall, in its sole
discretion, have the option of extending such 30-day period for up to an
additional 30 days by giving notice to Subscriber 5 days prior to the expiration
of such 30-day period. In connection therewith, each holder of Shares (each, a
"Holder") will provide in a timely manner all such information and materials
pertaining to it as may be required in order to permit the Company to comply
with all applicable requirements of the SEC and to obtain the acceleration of
the effective date of the Registration Statement. In connection with such
registration, the Company shall:

          (a) keep the Registration Statement effective until the earliest of
(i) when each Holder has sold its Subject Stock, (ii) two years following the
effective date of the Registration Statement, or (iii) the date all of the
Shares may be sold without volume limitations under Rule 144 under the
Securities Act of 1933);

          (b) as expeditiously as possible furnish to each Holder such
reasonable numbers of copies of the prospectus as such Holder may reasonably
request in order to facilitate the public sale or other disposition of the
Subject Stock;

          (c) as expeditiously as possible use its best efforts to register or
qualify the Subject Stock under the securities or blue sky laws of such states
as Subscriber shall reasonably request, provided, however, that the Company
                                        --------  -------
shall not be required in connection with this paragraph (c) to qualify as a
foreign corporation or execute a general consent to service of process in any
jurisdiction;

          (d) pay all costs and expenses incident to registration hereunder,
except as set forth in Section 4.2.

     4.2  Holder's Fees.  Each Holder shall pay any and all underwriters'
          -------------
discounts, brokerage fees and transfer taxes incident to the sale of the Subject
Stock sold by such Holder pursuant to this Section and the fees and expenses of
its counsel.

 5.  Indemnification.
     ---------------

     5.1  Indemnification Generally.  The Company shall indemnify Subscriber
          -------------------------
from and against any and all losses, damages, liabilities, claims, charges,
actions, proceedings, demands, judgments, settlement costs and expenses of any
nature whatsoever (including, without limitation, attorneys' fees and expenses)
or deficiencies resulting from any material breach of a representation, warranty
or covenant by the Company and all claims, charges, actions or proceedings
incident to or arising out of the foregoing.

     5.2  Indemnification Relating to Registration Rights.
          -----------------------------------------------

          (a) With respect to any registration, qualification or compliance
effected or to be effected pursuant to Section 4 of this Agreement, the Company
shall indemnify each Holder of the Shares which are included or are to be
included therein, each of such Holder's directors and officers, each underwriter
(as defined in the Securities Act) of the Shares sold by such

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Holder (if any), and each Person who controls (within the meaning of the
Securities Act) any such Holder or underwriter (a "Controlling Person") from and
against all losses, damages, liabilities, claims, charges, actions, proceedings,
demands, judgments, settlement costs and expenses of any nature whatsoever
(including, without limitation, attorneys' fees and expenses) or deficiencies of
any such Holder or any such underwriter or Controlling Person concerning:

               (i)    any untrue statement (or alleged untrue statement) of a
material fact contained in any prospectus, offering circular or other document
(including any related registration statement, notification or the like)
incident to any such registration, qualification or compliance;

               (ii)   any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make a statement
therein, in the light of the circumstances under which it was made, not
misleading; or

               (iii)  any violation by the Company of the Securities Act or any
rule or regulation promulgated thereunder applicable to the Company, or of any
blue sky or other state securities laws or any rule or regulation promulgated
thereunder applicable to the Company,

in each case, relating to any action or inaction required of the Company in
connection with any such registration, qualification or compliance, and subject
to Section 5.3 below will reimburse each such Person entitled to indemnity under
this Section for all legal and other expenses reasonably incurred in connection
with investigating or defending any such loss, damage, liability, claim, charge,
action, proceeding, demand, judgment, settlement or deficiency; provided,
                                                                --------
however, that the foregoing indemnity and reimbursement obligation shall not be
-------
applicable to the extent that any such matter arises out of or is based on any
untrue statement (or alleged untrue statement) or omission (or alleged omission)
made in reliance upon and in conformity with written information furnished to
the Company by or on behalf of such Holder or by or on behalf of such an
underwriter specifically for use in such prospectus, offering circular or other
document.

          (b)  With respect to any registration, qualification or compliance
effected or to be effected pursuant to this Agreement, each Holder of the Shares
which are included or are to be included therein, shall indemnify the Company
from and against all losses, damages, liabilities, claims, charges, actions,
proceedings, demands, judgments, settlement costs and expenses of any nature
whatsoever (including, without limitation, attorneys' fees and expenses) or
deficiencies of the Company concerning:

               (i)    any untrue statement (or alleged untrue statement) of a
material fact contained in any prospectus, offering circular or other document
(including any related registration statement, notification or the like)
incident to any such registration, qualification or compliance;

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               (ii)   any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statement
therein, in the light of the circumstances under which it was made, not
misleading; or

               (iii)  any violation by such Holder of the Securities Act or any
rule or regulation promulgated thereunder applicable to the Company or such
Holder or of any blue sky or other state securities laws or any rule or
regulation promulgated thereunder applicable to the Company or such Holder,

in each case, relating to any action or inaction required of such Holder in
connection with any such registration, qualification or compliance, and subject
to Section 5.3 below will reimburse the Company for all legal and other expenses
reasonably incurred in connection with investigating or defending any such loss,
damage, liability, claim, charge, action, proceeding, demand, judgement,
settlement or deficiency; provided, however, that, the obligation of the Holder
                          --------  -------
hereunder shall be limited to an amount equal to the proceeds to the Holder of
the Shares sold as contemplated hereunder.

5.3  Indemnification Procedures.  Each Person entitled to indemnification under
     --------------------------
this Section (an "Indemnified Party") shall give written notice as promptly as
reasonably practicable to each party required to provide indemnification under
this Section (an "Indemnifying Party") of any action commenced against or by it
in respect of which indemnity may be sought hereunder, but failure to so notify
an Indemnifying Party shall not relieve such Indemnifying Party from any
liability that it may have otherwise than on account of this indemnity agreement
so long as such failure shall not have materially prejudiced the position of the
Indemnifying Party.  Upon such notification, (i) the Indemnifying Party shall
assume the defense of such action if it is a claim brought by a third party,
(ii) the Indemnified Party shall, at the Indemnifying Party's expense and
reasonable request, cooperate with the Indemnifying Party in any such defense
and shall make available to the Indemnifying Party at the Indemnifying Party's
expense all those persons and documents (excluding attorney/client work product
materials) reasonably requested by the Indemnifying Party in defense of any such
action and (iii) after such assumption the Indemnified Party shall not be
entitled to reimbursement of any expenses incurred by it in connection with such
action except as described below.  In any such action, any Indemnified Party
shall have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Party unless (x) the
Indemnifying Party and the Indemnified Party shall have mutually agreed to the
contrary or (y) the named parties in any such action (including any impleaded
parties) include both the Indemnifying Party and the Indemnified Party and
representation of both parties by the same counsel would be inappropriate due to
actual or potential differing or conflicting interests between them.  The
Indemnifying Party shall not be liable for any settlement of any proceeding
effected without its written consent (which shall not be unreasonably withheld
or delayed by such Indemnifying Party), but if settled with such consent or if
there be final judgment for the plaintiff, the Indemnifying Party shall
indemnify the Indemnified Party from and against any loss, damage or liability
by reason of such settlement or judgment.

                                       11
<PAGE>

  6.  Use of Proceeds.  Subscriber acknowledges that the Company intends to use
      ---------------
the proceeds of the private placement contemplated hereunder for general
corporate purposes, including, without limitation, potential acquisitions.
Subscriber acknowledges that some or all of the proceeds of the private
placement contemplated hereunder may be used for acquisitions by the Company,
and Subscriber is aware that the Company is in the process of actively looking
for potential acquisition candidates.  Subscriber acknowledges that the Company
may not be able to find any attractive or suitable candidates for acquisition
and that the Company may not be able to negotiate suitable terms for the
acquisition of any potential candidates.  Subscriber acknowledges that any
acquisition by the Company and subsequent integration of the acquired business
into the Company involves the risks described herein and in the Documents.

  7.  Miscellaneous.
      -------------

      7.1  Neither this Agreement nor any provisions hereof shall be modified,
discharged or terminated except by an instrument in writing signed by the party
against whom any such waiver, change, discharge or termination is sought to be
enforced.

      7.2  Any notice, demand or other communication which any party hereby may
be required or may elect to give to anyone interested hereunder shall be deemed
effectively given (a) three business days after deposit, postage prepaid, in a
United States mail letter box, registered or certified mail, return receipt
requested, addressed to such address as may be given herein, (b) one business
day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt, at such address, or (c)
upon personal delivery to the party to be notified at such address.  The
Company's address for notices is set forth on the first page hereof, and the
Subscriber's address for notices is set forth on the signature page.

      7.3  This Agreement may be executed through the use of separate signature
pages or in any number of counterparts, and each of such counterparts shall, for
all purposes, constitute one agreement binding on all the parties,
notwithstanding that all parties are not signatories to the same counterpart.

      7.4  Except as otherwise provided herein, the agreement shall be binding
upon and inure to the benefit of the parties and their successors, legal
representatives and assigns.

      7.5  This Agreement (including the Exhibits attached hereto) contains the
entire agreement of the parties, and there are no representations, covenants or
other agreements except as stated or referred to herein.

      7.6  This Agreement is not transferable or assignable by Subscriber except
as may be provided herein.

      7.7  This Agreement shall be governed by and construed in accordance with
the law of the State of New York applicable to agreements made and to be
performed in that State.

                                       12
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Subscription
Agreement to be duly executed and delivered as of the date set forth below.

NAME OF SUBSCRIBER:                        ADDRESS FOR NOTICES (Please Print):

_______________________                    ____________________________________
                                           ____________________________________
SIGNATURE:                                 ____________________________________
                                           Attention:__________________________
By:____________________                    Telecopy:___________________________
Name:__________________
Title:_________________                    Tax Identification #:_______________

Exact Name to appear on Stock Certificate: ____________________________________

Number of Shares Subscribed For:           ____________________________________
                                           Price = $_____ (must be a whole
                                           number of shares)

Aggregate Purchase Price (see Section 1.1):____________________________________

The Investor hereby provides the following additional information:

     (a)  Excluding the shares of Common Stock subscribed for above, set forth
below is the number of shares of Common Stock and options rights or warrants of
Integral Systems, Inc. ("Options" and together with the Common Stock,
"Securities") which Subscriber beneficially owns or of which Subscriber is the
                               ------------ ----
record owner on the date hereof.  Please refer to the definition of beneficial
                                                                    ----------
ownership on Exhibit B attached hereto.  If none, please so state.
---------    ---------

Number of Shares:  ___________ (excluding the Shares subscribed for above)

Number of Options: ___________

Please indicate by an asterisk (*) above if Subscriber disclaims "beneficial
                                                                  ----------
ownership" of any of the above listed Securities, and indicate in response to
---------
question (b) below who has beneficial ownership.

     (b)  If Subscriber disclaims "beneficial ownership" in question (a), please
                                   --------------------
furnish the following information with respect to the person(s) other than
Subscriber who is the beneficial owner(s) of the Securities in question.  If not
applicable, please check box: [_]

          Name of Beneficial Owner:_____________________________________
          Relationship to Subscriber: __________________________________
          Number of Securities Beneficially Owned:______________________

                                       13
<PAGE>

                                  NAME OF SUBSCRIBER:________________________

     (c)  Are any of the Securities listed in response to question (a) the
subject of a voting agreement, contract or other arrangement whereby others have
voting control over, or any other interest in, any of Subscriber's Securities?
                                     Yes      No

If the answer is "Yes," please give details:

     (d)  Please describe each position, office or other material relationship
which the Subscriber has had with the Company or any of its affiliates,
including any subsidiary of the Company, within the past three years.  Please
include a description of any loans or other indebtedness, and any contracts or
other arrangements or transactions involving a material amount, payable by
Subscriber to the Company or any of its affiliates, including its subsidiaries,
or by the Company or any of its affiliates, including its subsidiaries, to
Subscriber.  "Affiliates" of the Company include its directors and executive
officers, and any other person controlling or controlled by the Company.  If
none, please so state.

Answer:

     (e)  Please provide the name and address of other person(s), if any, to
whom any proxy statements, registration statements (including notice of
effectiveness thereof), prospectuses or similar documents and information should
be delivered by the Company on behalf of Subscriber in the future, with respect
to Subscriber's shares:

          ______________________             ________________________
          ______________________             ________________________
          ______________________             ________________________

     (f)  Please advise of special stock certificate delivery requirements for
closing, if any:

     (g)  Please advise if a NASD member has placed with you the Shares being
purchased hereunder: (Name of Member:)_______________________________________

==============================================================================

ACCEPTED:     INTEGRAL SYSTEMS, INC.

              By:__________________________________________
                 Name: Steven R. Chamberlain
                 Title: Chief Executive Officer

                                       14
<PAGE>

                                   EXHIBIT A

                              Copy of Regulation M
<PAGE>

                                   EXHIBIT B

                     Explanation of "BENEFICIAL OWNERSHIP"

     Securities that are subject to a power to vote or dispose are deemed
beneficially owned by the person who holds such power, directly or indirectly.
This means that the same securities may be deemed beneficially owned by more
than one person, if such power is shared.  In addition, the beneficial ownership
rules provide that shares which may be acquired upon exercise of an option or
warrant, or which may be acquired upon the termination of a trust, discretionary
account or similar arrangement, which can be effected within a period of 60 days
from the date of determination, are deemed to be "beneficially" owned.
Furthermore, shares that are subject to rights or powers even though such rights
or powers to acquire are not exercisable within the 60-day period may also be
deemed to be beneficially owned if the rights or powers were acquired "with the
purpose or effect of changing or influencing the control of the issuer or in
connection with or as a participant in any transaction having such purpose or
effect."

     In determining whether securities are "beneficially owned," benefits which
are substantially equivalent to those of ownership by virtue of any contract,
understanding, relationship, agreement or other arrangement should cause the
securities to be listed as "beneficially owned."

     Thus, for example, securities held for a person's benefit in the name of
others or in the name of any estate or trust in which such person may be
interested should also be listed.  Securities held by a person's spouse,
children or other members of such person's family who are such person's
dependents or who live in such person's household should be listed as
"beneficially owned" unless such person does not enjoy benefits equivalent to
those of ownership with respect to such securities.

     If a person has a proprietary or beneficial interest in a controlled
corporation, partnership, personal holding company, trust or estate which owns
of record or beneficially any securities, such person should state the amount of
such securities owned by such controlled corporation, partnership, personal
holding company, trust or estate in lieu of allocating such person's proprietary
interest, and by note or otherwise, please indicate that.  In any case, the name
of the controlled corporation, partnership, personal holding company, or estate
must be stated.

     In all cases the nature of the beneficial ownership should be stated.CONCENTRIC NETWORK CORPORATION
1300 BRISTOL STREET NORTH, SUITE 220, NEWPORT BEACH, CA 92660
CONCENTRIC HOST SERVER SOLUTIONS SERVICE AGREEMENT

This Concentric Host Server Solutions  Service  Agreement  ("Agreement") is made
and  entered  into on this 12 day of 6, 1999  ("Effective  Date") by and between
Concentric Network Corporation,  Inc., a Delaware corporation ("Concentric") and
RBID.COM,  INC. ("Customer"),  a Florida corporation with its principal place of
business at 24461 Ridge Route Drive (2nd Floor), Laguna Hills, CA 92653.

The Parties hereto agree as follows:

1.0 SERVICES

Subject to the terms and  conditions of this  Agreement  during the term of this
Agreement,   Concentric   will  provide  to  Customer  the  goods  and  services
(collectively,  the  "Services")  as described  and  selected in the  applicable
Co-location  Order  Form(s)  and/or the Managed  Server Order  Form(s)  (each an
"Order Form") attached hereto as Exhibit A.

2.0 PAYMENT AND INVOICES

2.1 Fees.  Customer  shall pay  concentric  all fees indicated on the applicable
Order Form. These fees and charges may include a one-time set-up charge, as well
as certain monthly fees.

<PAGE>

2.2 Payment  Terms.  Billing will begin on the date that CNC  notifies  Customer
that the Service is  available  to Customer  ("Anniversary  Date").  Anniversary
Date, or availability, is the date regardless of whether Customer is prepared to
institute  usage of the Service,  when all services  indicated on the Order Form
have been installed, activated, and have been successfully tested. Billing shall
reflect all corrected  Services on the Order Form,  and Customer is obligated to
pay CNC for such  services.  CNC shall  invoice  Customer  monthly  for the fees
payable under this Agreement, and Customer shall pay CNC such fees no later than
30 days after the invoice date. IF CNC does not receive payment in full for each
invoice within 30 days after the invoice date, CNC may add to Customer's account
late cxharge of 1.5% per month, or the highest amount allowed by law,  whichever
is less.

2.3 Taxes.  All fees are in United  States  dollars and  exclude any  applicable
taxes.  Customer  shall pay,  indemnify  and hold  Concentric  harmless from all
sales,  use,  value  added or other  taxes of any  nature,  other  than taxes on
Concentric's net income,  including  panalties and interest,  and all government
permit or license fees  assesses upon or iwth respect to any fees due under this
Agreement  (except to the extent Customer  provides  Concentric with a valid tax
exemption  certificate).  If any  applicable  foreign law  requires  Customer to
withhold amounts from any payments to Concentric  hereunder:  (a) Customer shall
affect  such  withholding,   remit  such  amounts  to  the  appropriate   taxing
authorities  and promptly  furnish  Concentric  with tax receipt  evidencing the
payments of such  amounts;  and (b) the sum  payable by Customer  upon which the
deduction or withholding is based shall be increased to the extent  necessary to
ensure that,  after such  deduction or  withholding  , a net amount equal to the
amount  Concentric  would have  received  and   retained  in the absence of such
required deduction or withholding.

<PAGE>

3.0 REPRESENTATIONS AND WARRANTIES

3.1  General.  Each  party  represents  and  warrants  that it has the right and
authority  to  enter  into  this  Agreement,  and  that by  entering  into  this
Agreement, it will not violate,  conflict with or cause a material default under
any  other  contract,  agreement,   indenture,  decree,  judgment,  undertaking,
conveyance,  lien or encumbrance to which it is a party or by which it or any of
its property is or may become  subject or bound.  Each party  shall,  at its own
expense, make obtain, and maintain in force at all times during the term of this
Agrement, all applicable filings,  registrations,  reports licenses, permits and
authorizations necessary to perform its obligations under this Agreement.

3.2  Compliance  with Laws.  Customer  represents  and warrants that no consent,
approval or  authorization  of or  designation,  declaration  or filing with any
governmental  authority  is required  in  connection  with the valid  execution,
delivery  and  performance  of this  Agreement.  Each  party  shall,  at its own
expenses,  comply with all laws,  regulations and other legal  requirements that
apply to it and this Agreement,  including copyright, privacy and communications
decency laws.

3.3  Acceptable  Use.  Customer  is solely  responsible  for the  content of any
postings,  date or transmissions using the Services, or any any other use of the
Services by Customer or by any person or entity  Customer  permits to access the
Services.  Customer  represents  and  warrants  that  it  will:  (a) not use any
Concentric  equipment or services in a manner that (I) is  prohibited by any law
or regulation or concentric policy, or to facilitate the violation of any law or
regulation or such policy;  or (ii) will disrupt third parties' use or enjoyment
of any  communications  service or outlet;  (b) not  violate or tamper  with the
security of any Concentric computer equipment or

<PAGE>

program;  and (C) enter into an agreement with each of its end-users  sufficient
to comply with the terms herein. If Concentric has reasonable grounds to believe
that  Customer is utilizing  the  Services  for any such  illegal or  disruptive
purpose Concentric may suspend or terminate Services  immediately upon notice to
Customer.

3.4  DISCLAIMER.  THE  WARRANTIES  SET  FORTH  IN THIS  SECTION  3 ARE THE  ONLY
WARRANTIES MADE BY CONCENTRIC. CONCENTRIC MAKES NO OTHER WARRANTIES OF ANY KIND,
EXPRESS  OR  IMPLIED,  WITH  RESPECT TO ITS  SERVICES,  ANY  RELATED  SERVICE OR
SOFTWARE,  OR THE FITNESS OF THE SPACE FOR  CUSTOMER'S  USE.  CONCENTRIC  HEREBY
EXPRESSLY  DISCLAIMS  ANY  IMPLIED  WARRANTY OF  MERCHANTABILITY,  FITNESS FOR A
PARTICULAR  PURPOSE, OR  NON-INFRINGEMENT,  OR IMPLIED WARRANTIES ARISING FROM A
COURSE OF DEALING OR COURSE OF PERFORMANCE. NO ORAL OR WRITTEN INFORMATION GIVEN
BY CONCENTRIC, ITS EMPLOYEES, LICENSORS OR THE LIKE WILL CREATE A WARRANTY.

4.0 LIMITATION OF LIABILITY

UNDER NO CIRCUMSTANCES, INCLUDING NEGLIGENCE, WILL (A) CONCENTRIC OR ANYONE ELSE
INVOLVED IN ADMINISTERING,  DISTRIBUTING OR PROVIDING THE SERVICES,  OR (B) WITH
REGARD TO  THIRD-PARTY  SOFTWARE,  THE  APPLICABLE  LICENSOR,  BE LIABLE FOR ANY
INDIRECT,  INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES THAT RESULT FROM THE USE
OR INABILITY TO USE

<PAGE>

THE SERVICES,  OR, IF APPLICABLE,  THE THIRD-PARTY  SOFTWARE,  INCLUDING BUT NOT
LIMITED  TO LOSS OF  REVENUE  OR LOST  PROFITS,  OR  DAMAGES  THAT  RESULT  FROM
MISTAKES, OMISSIONS, INTERRUPTIONS, DELETION OF FILES OR EMAIL, ERRORS, DEFECTS,
VIRUSES,  DELAYS IN OPERATION OR  TRANSMISSION,  FAILURE OF PERFORMANCE,  THEFT,
DESTRUCTION  OR  UNAUTHORIZED  ACCESS  TO  CONCENTRIC'S  RECORDS,   PROGRAMS  OR
SERVICES,  EVEN IF SUCH  PARTY  HAS  BEEN  ADVISED  OF THE  POSSIBILITY  OF SUCH
DAMAGES.   IN  THE  EVENT  OF  ANY  BREACH  BY  CONCENTRIC  OF  THIS  AGREEMENT,
CONCENTRIC'S LIABILITY TO CUSTOMER WILL NOT EXCEED THE AMOUNT PAID TO CONCENTRIC
BY CUSTOMER DURING THE PREVIOUS TWELVE MONTHS. IN THE EVENT OF ANY BREACH BY THE
THIRD-PARTY  LICENSOR OF THIS AGREEMENT,  SUCH LICENSOR'S  LIABILITY TO CUSTOEMR
WILL NOT EXCEED THE AMOUNT PAID FOR SUCH THIRD-PARTY SOFTWARE.

5.0 CONFIDENTIAL INFORMATION

5.1 Definition.  For purposes of this Agreement "Confidential Information" shall
mean  information  indcluding,  without  limitation,  computer  programs,  code,
algorithms,  names  and  expertise  of  employees  and  consultants,   know-how,
formulas,  processes,  ideas, inventions (whether patentable or not), schematics
and  other  technical,   business,  financial  and  product  development  plans,
forecasts,  strategies and information  marked  "Confidential",  or if disclosed
verbally,  is identified as confidential at the time of disclosure.  In addition
to the  foregoing,  with respect to  Third-Party  Software  (as defined  below),
Confidential Information shall also include any source or object

<PAGE>

codes,  technical data, data output of such software,  Documentation (as defined
below),  or  correspendence  owned  by  the  applicable  Licensor.  Confidential
Information   excludes  information  that  of  the  receiving  party;  (ii)  was
rightfully  known or becomes  rightfully  known to the  receiving  party without
confidential or proprietary  restriction from a source other than the disclosing
party;  (iii) is  idependently  developed  by the  receiving  party  without the
participation   of  individuals   who  have  had  access  to  the   Confidential
Information;  (iv) is approved by the disclosing  party for  disclosure  without
restriction in a wirtten  docuemnt which is signed by a fuly authorized  officer
of such disclosing  party;  and (v) the receiving party is legally  compelled to
disclose;  provided,  however, that prior to any such compelled disclosure,  the
receiving  party will (a) assert the privileged and  confidential  nature of the
Confidential  Informqtion  against the third party  seeking  disclosure  and (b)
cooperate  fully  with the  disclosing  party  in  protecting  against  any such
discosure  and/or  obtaining  a  protective  order  narrowing  the scope of such
disclosure  and/or use of the Confidential  Information.  In the event that such
sprotection  against  disclosure  is not obtained,  the receiving  party will be
entitled to disclose  the  Confidential  Information,  but only asl,  and to the
extent, necessary to legally comply with compelled disclosure.

5.2  Nondisclosure.  Until the later of three (3) years from the Effective Date,
or the expiration of the then current term as set forth on the Order From [sic],
each party agrees to maintain all Confidential  Information in confidence to the
same extent that it protects its own similar Confidential Information, but in no
event less than reasonable care, and to use such  Confidential  Informaiton only
as permitted under this Agreement; in addition, with respect to the Confidential
Information of the Third-Party Software Licensor,  Customer agrees that it shall
not use or disclose such  information at an time either during the term or after
the termination of this

<PAGE>

Agreement,  except as required by law. Each party agrees to take all  ressonable
precautions  to  prevent  any  unauthorized  disclosure  or use of  Confidential
Informaiton including,  without limitation disclosing  Confidential  Information
only to its employees: (a) with a need to know to further permitted uses of such
information; (b) who are parties to apppropriate agreements sufficient to comply
with  this  Section  5;  and (c) who are  informed  of the  nondisclosure/nonuse
obligations  imposed by this Section 5; and both parties shall take  appropriate
steps to implement and enforce such non-disclosure/non-use obligations.

5.3 Terms of Agreement Confidential. Subject to Section 7.1, each of the parties
agrees not to disclose to any third  party the terms of this  Agreement  hereto,
except  to  advisors,  investors  and  others  on  a  need-to-know  basis  under
circumstances  that reasonable  ensure the  confidentiality  thereof,  or to the
extent required by law.

5.4  Injunctive  Relief.  In the event of an actual or threatened  breach of the
above confidentiality  provisions, the nonbreaching party will have no adqequate
remedy at law and will be entitled to immediate  injunctive and other  equitable
relief, withoutbond and without the necessity of showing actual money damages.

6.0 TERM AND TERMINATION\

6.1 Term.  This  Agreement  will commence on the Effective Date and continue for
the term  elected by Customer as set forth on the Order Form which will begin on
the Anniversary Date. The initial term of any Order Form placed pursuant to this
Agreement for either Co-location or Managed

<PAGE>

Server  Services  shall be a minimum of one (1) year.  Absent  written notice by
either  party  thirty  (30)  days  prior to the end of the  initial  term or any
successive renewal terms, this Agreement will automatically renew for successive
one (1) year terms under the prices then in effect for the Services.

6.2 Termination. A party may terminate this Agreement upon written notice to the
other party:

(a) For any material breach of this Agreement,  which the defaulting party fails
to cure within thirty (30) days following  written notice by the  non-defaulting
party of such breach; or

(b) Upon the other party's  insolvency or  liquidation as a result of which such
party  ceases to do  business  for a  continuous  period  of at least  three (3)
months.

6.3 Effect of Termination.  Customer shall comply with all applicable procedures
related to equipment removal upon termination. The obligations of Sections 3, 4,
5,  6.3  and 9 will  survive  any  expiration  or  earlier  termination  of this
Agreement.  In the  event  of any  expiration  or  earlier  termination  of this
Agreement,  Customer will (a) if applicable,  immediately  stop using the Third-
Party Software,  and in the applicabvle  Licensor's sole  discretion,  return or
destroy all copies of the Third-Party  Software,  Documentation (each as defined
below)  and  data  output  of  such  software;  and (b) be  obligated  to pay to
Concentric fees and other charges incurred prior to termination. In addition, if
Customer fails to pay any  invoice(s) for forty-five  (45) days or more from the
date of this oivoice,  Customer  shall be denied access to the Space (as defined
below)  until  such  time  as  the  invoice(s)  has  been  paid  in  full.  Upon
cancellation Concentric reserves the

<PAGE>

right to retain  customer-woned  equipment  until all amounts due and payable to
Concentric  have  been  settled.  Finally,  within  ten  (10)  dayus  after  the
termination  of this  Agreement,  if  requested,  Customer  shall  return to the
disclosing party all originals and copies of all Confidential  Information which
has been fixed in any tangible medium of expression. If return of digital copies
is impractical,  Customer may destroy the digital copies and send the disclosing
party written certification of such destruction.

7.0 MARKETING AND PROMOTION

7.1 Press  Release.  The parties may agree to cooperate to prepare and release a
joint press  release  rgarding this  Agreement,  subject to the approval of each
party, which must not be unreasonably withheld or delayed.

8.0 FACILITIES

8.1 The folowing  terms and  conditions  will apply only if Customer has filed a
Co-Location Order Form:

(a)  License  to Occupy.  For  purposes  of this  Agreement,  "Sapce"  means the
Concentric  facilities  where  Customer's  hardware  and software are stored and
operated.  Concentric  grants to Customer a non-exclusive  license to occupy the
Space.  Customer  acknowledges that it has been granted only a license to occupy
the Space and that it has not been  granted any real  property  interests in the
Space.

<PAGE>

(b) Servides.  Cocentric will provide Customer with the services ("Services") as
specified in the Order Form (i.e., "Remote Hands").

(c) Exclusions.  Services shall not include services for problems arising out of
(i) modification,  alteration or addition or attempted modification,  alteration
or  addition  of  hardware  undertaken  by  persons  other  than  Concentric  or
Concentric's authorized representatives, or (ii) hardware supplied by Customer.

(d) Material and Changes.  Customer shall comply with all  applicable  rules and
regulations, including equipment installation or de-installation, and alteration
of the Space. Customer shall not make any changes or material alterations to the
interior  or  exterior  portions  of the Space,  including  any cabling or power
supplies for its hardware.  Customer agrees not to erect any signs or devices to
the exterior portion of the Space.

(e) Damage. Customer agrees to reimburse Concentric for all reasonable repair or
restoration  costs  associated  with damage or destruction  caused by Customer's
personnel,  Customer's agents, Customer's  suppliers/contractors,  or Customer's
visitors  during  the term or as a  consequence  of  Customer's  removal  of its
hardware or property installed in the Space.

(f)  Insurance.  Custoemr  shall  maintain,  at  Customer's  expense,  Insurance
covering  equipment and personal property owned or leased byCustomer and used or
stored on Concentric's premises. Customer shall also maintain insurance covering
the equipment or property  owned or leased by Customer  against loss or physical

<PAGE>

damage. If so requested, Customer will provide CNC written evidence of insurance
coverage consistent with the requirements of this subsection.

(g) Customer  Duties.  Customer shall document and promptly report all errors or
malfunctions  fo the  hardware to  Concentric.  Concentric  shall take all steps
necessary  to  carry  out  procedures  for  the   rectification   of  errors  or
malfunctions  within a reasonable time. Customer shall maintain a current backup
copy of all programs and dates.  Customer  shall properly train its personnel in
the use of the hardware.

(h) Third-Party Software. For purposes of this Agreement, "Third-Party Software"
means those products  indicated as such on the Order Form. If Customer purchases
any  Third-Party  Software,  Customer hereby agrees to be bound by the following
terms  and  conditions,   and  further  agrees  to  enter  into  all  applicable
agreements, if any, which such third-party requires of Concentric.

(i) Customer is granted a  non-exclusive,  nontransferable  right to install and
use  the   Third-Party   Software  in  object   code  form  only,   accompanying
documentation  ("Documentation"),  and data output of such  software  solely for
Customer's  internal  use.  Such license is not  transferable  or  assignable by
Customer, in whole or in part, whether voluntarily or bymerger, consolidation or
sale, or otherwise by operation of law. Customer may make one backup copy of the
Third-Party Software for archival purposes only.

ii.  Title to the  Third-Party  Software  shall be  retained  by the  applicable
Licensor of such  software.  No right,  title,  or  interest in the  Third-Party
Software or  Documentation  is granted or conveyed to Customer by implication or
otherwise.

<PAGE>

iii. Customer  acknowledges  that the applicable  Licensor can only control such
Licensor's  servers and therefore such Licensor cannot guarantee delivery of all
data output registered by Customer in any given time period.

iv. Except for any backup archival copies  permitted  herein,  Customer may not,
and shall not allow other to, copy, modify, translate,  disassemble,  decompile,
reverse  engineer  or  create  derivative  wroks  of the  Third-Party  Software,
Documentation or data output of such software,

v.  Customer  shall not  disclose  the  results  of any  benchmark  costs of the
Third-Party Software or data output of such software to any third party; provide
third parties access to the Third-Party Software,  Documentation or data output,
sublicense,  rent, lease,  barter, sell, or otherwise distribute the Third-Party
Software,  Documentation or other data output; or use any technical  information
in any way  related to or acquired by use of the  Third-Party  Software  for the
prospective   economic  advantage  of  any  third-party.   Notwithstanding   the
foregoing,  Customer  may publish and  disseminate  summaries of the data output
performed and  transmitted by the  Third-Party  Software  provided that Customer
attributes  the  applicable  Licensor  as the  source  of  the  data  output  or
information on which such summaries are based.

vi.  CUSTOMER  HEREBY  ACCEPTS THE  SOFTWARE AND DATA "AS IS" WITH NO EXPRESS OR
IMPLIED  WARRANTIES OR CONDITIONS OF ANY KIND,  INCLUDING,  WITHOUT  LIMITATION,
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE APLICABLE
LICENSOR NEITHER ASSUMES, NOR AUTHORIZES ANY OTHER PERSON TO ASSUME FOR IT,  ANY

<PAGE>

OTHER LIABILITY IN CONNECTION WITH THE SOFTWARE, DATA, OR ANY OTHER INFORMATION,
INCLUDING,   WITHOUT   LIMITATION,   LIABILITY  ARISING  OUT  OF  THE  DELIVERY,
INSTALLATION, SUPPORT OR USE OF THE SOFTWARE, INFORMATION OR DATA. SUCH LICENSOR
DIES NOT WARRANT THE RESULTS OF ANY PROGRAM OR SERVICE OR THAT ANY ERRORS IN THE
SOFTWARE  WILL  BE  CORRECTED,   OR  THAT  THE  SOFTWARE  WILL  MEET  CUSTOMER'S
REQUIREMENTS  OR  EXPECTATIONS.  SUCH  LICENSOR  CANNOT  GUARANTEE  AND DOES NOT
WARRANT  THE  ACCURACY  OF THE  DATA  DELIVERED  TO  CUSTOMER  OR  THAT  DATA IS
TRANSMITTED TO CUSTOMER WITHOUT INTERRUPTION OR DELAY.

Customer  asserts and  acknowledges  that prior to execution of this  Agreement,
Customer  had  sufficient  opportunityt  o evaluate  the  Third-Party  Software,
Documentation, and data output delivery of such software to become familiar with
their performance and operation.

8.2 The following  terms and  conditions  will apply only if Customer has filled
out Managed Server Order Form.

(a) Services. Concentric will provide Customer with the services as specified in
the Order Form.

(b) Service Level Agreement.  Concentric agrees that its Managed Server downtime
will not exceed 4.33  minutes  per day, or 30.3  minutes per week,or 130 minutes
per month. If in any calendar month, Customer's server is down for more than 130
minutes  (exclusive  of (i)  scheduled  maintenance  windows  and (ii)  customer

<PAGE>

enabled faults), Concentric will credit to Customer's account twenty-five perent
(25%) of each month's Managed Server fee, as set forth in the Order Form.

8.3 Regulations. Customer shall comply with all applicable operational rules and
regulations,  while on Concentric's  premises and while under Concentric escort.
Concentric may, in its sole discretion,  limit Customer's access to a reasonable
number  of  authorized  Customer  employees  or  designee.  Customer  shall  not
interfere with any other customers of Concentric,  or such other  customers' use
of Concentric's facilities.

8.4 Assumption of Risk.  Customer  hereby  assumes any and all risks  associated
with  Customer,  its  agents  (including  contractors  and  sub-contractors)  or
employees'  use of the space  and  shall  indemnify,  defend  and hold  harmless
Concentric from any and all claims,  liabilities,  judgments,  causes of action,
damages,  costs,  and expenses  (including  reasonable  attorneys'  and experts'
fees), caused by or arising in connection with such use.

9.0 GENERAL PROVISIONS

9.1  Assignment.  This  Agreement will be binding upon, and inure to the benefit
of,  the  parties   hereto  and  their   respective   successors   and  assigns.
Notwithstanding  the above,  Customer  may not assign its rights or  obligations
under this  Agreement  without  the prior  written  consent of  Concentric.  Any
assignment in violation of this Section shall be null and void.

9.2  Independent  Contractors.  The parties will have the status of  independent

<PAGE>

9.2  Independent  Contractors.  The parties will have the status of  independent
contractors and nothing in this Agreement  should be deemed to place the parties
in the  relationship  of employer-  emploee,  principal-agent,  or partners in a
joint venture.

9.3  Waiver.  The  failure  of either  party to  enforce  at any time any of the
provisions of this Agreement,  or the failure to require at any time performance
by the other party of any of the provisions of this Agreement,  should in no way
be construed to be a present or future waiver of such provisions, nor in any way
affect  ther  right of either  party to enforce  each and every  such  provision
thereafter.  The express waiver by either party of any  provision,  condition or
requirement  of this  Agreement  will  not  constitute  a waiver  of any  future
obligation to comply with such provision, condition or or requirement.

9.4  Severability.  If any  provision  of this  Agreement  is helf by a court of
competent jurisdiction ot be invalid, illegal, or unenforceable under present or
future laws,  such provision will be struck from the Agreement and the remaining
provisions of this Agreement shall remain in full force and effect.

9.5  Monitoring of Content.  Concentric,  at its sole  discretion,  may elect to
electronically  monitor the  Concentric  network and may disclose any content or
records  concerning   Customer's  account  as  necessary  to  satisfy  any  law,
regulation, or other governmental requirestor to properly operate the Concentric
network and protect any of its customers.  Customer  acknowledges  and expressly
agrees that  Concentric  will not be liable to Customer or its customers for any
action  Concentric  takes to remove or restrict  access to obscene,  indecent or
offensive  content  made  available  by  Customer,  nor for any action  taken to

<PAGE>

restrict  access to material made available in violation of any law,  regulation
or rights of a third  party,  including  but not  limited to,  rights  under the
copyright law and prohibitions on libel, slander and invasion of privacy.

9.6 Indemnity.  Customer shall indenmify,  defend and hold harmless  Concentric,
and/or, if applicable,  the Licensor of the Third-Party  Software,  from any and
all  dmaages,  liabilities,  costs and  expenses  (including  but not limited to
reasonable  attorneys'  fees)  incurred  (a) by  Concentric  as a result  of any
threatened  or actual suit against  Concentric  arising out of or in  connection
with:  (i)  information  or content  provided,  accesses  or made  available  by
Customer on  Concentric's  network;  and (ii)  Customer's  gross  negligence  or
deliberate  wrongdoing  in  performance  under  this  Agreement  and  (b) by the
applicable Third-Party Software Licensor as a result of any threatened or actual
suit  against  such  Licensor   arising  from  Customer's  use,   summarization,
ordissemination  of  any  data  output  of  such  software,  including,  without
limitation, trade libel and slander.

9.7 Force  Majeure.  Either  party will be excused  from any delay or failure to
perform any  obligation  unmder this  Agreement if such failure is caused by the
occurrence of any event beyond the reasonable  control of such party,  including
but not limited to, acts of God, earthquake,  labor disputes and strikes,  riots
or war. The  obligations and rights of the party so excused shall be extended on
a day-to-day  basis for the period of time equal to that of the underlying cause
of the delay.

9.8 Governing  Law. This Agreement will be deemed to have been made in the State
of  claifornia,  and the  provisions  and  conditions of this  Agreement will be

<PAGE>

governed  by and  interpreted  in  accordance  with  the  laws of the  State  of
California, without regard to conflict of laws principles thereof.

9.9 Arbitration. Anyu dispute or claim arising out of or in connection with this
Agreement or the  performance,  breach or termination  thereof,  will be finally
settled  by  binding  arbitration  in San  Jose,  California  under the Rules of
Arbitration of the American  Arbitration  Association by an aribtrator appointed
in  accordance  with  those  rules.  Judgment  on  the  award  rendered  by  the
arbitrators   may  be  entered  in  any  court  having   jurisdiction   thereof.
Notwithstanding the foregoing,  either party may apply to any court of competent
jurisdiction for equitable relief without breach of this arbitration provision.

9.10  Entire  Agreement.  This  Agreement  sets forth the entire  agreement  and
understanding  of the parties with  respect to the subject  matter  hereof,  and
supersedes all prior agreements and understandings between the parties,  whether
written or oral with respect to the subject matter hereof.  No  modification  of
this  Agreement  shll be binding  upon the parties  hereto  unless  evidenced in
writing duly signed by  authorized  representatives  of the  respective  parties
hereto.

9.11  Notices.  Any  required  notices  hereunder  shall be given in writing via
electronic  mail and by certified  mail or overnight  express  delivery  service
(such  as DHL) at the  address  of  each  party  avove  or as  indicated  on the
applicable Order Form, or to such other address as either party may from time to
dime substitute by written notice.  Notice shall be deemed served when delivered
or, if delivery is not  accomplished  by reason of some fault of the  addressee,
when tendered.

<PAGE>

Customer and Concentric's authorized representatives have read the foregoing and
all documents incorporated therein and agree and accept such terms.

CUSTOMER REPRESENTATIVE                  CONCENTRIC NETWORK CORPORATION
By: /s/Peter Ferras                      By
-------------------                      --
Print Name: Peter Ferras                 Print Name:
(Authorized Signature)                   (Authorized Signature)
Title: President/CEO                     Title:

<PAGE>

<TABLE>
<CAPTION>

                                 June 11, 1999

Concentric Network                                           Prepared for:
Jason Stein                                                  Jim Ferras
1300 Bristol Street North                                    RBID
Suite 220                                                    (949) 470-4576
Newport Beach, CA 92660                                      (310) 779-9268
(800) 711-8030, ext 274
(949) 250-7265

One time/Non-Recurring Costs
<S>      <C>      <C>                                                  <C>               <C>              <C>
                                                                                                          Sales
Qty.     Part #                     Description                        Price/Unit        Subtotal         Tax

1                 Managed Server Set Up Fee                            $650.00           $650.00

                  Deluxe  Concentric  Host Managed  Server
                  Dual  Pentium  II/512 cache, 450 MHZ=ASUS BX
                  256 MB DIMM (to 512 cache) PC-100-SDRAM
                  Hard Disk:  9.1 GB IBM,  Ulta SCSI 3
                  32-Bit PCI Graphics  Card w/1MB DRAM
                  Ethernet  10/100 MB
                  50 GB monthly data transfer
                  8" rack space  included
                  5 business  day set up time upon  payment receipt
                  NT or Unix operating  system
                  6 IP addresses
                  Unlimited email to the limitations of the server
                   itself
                  Services: Remote Hands  100 and 200
                  Bandwidth  utilization  Reports
                  Pushing a button
                  Power Cycling  (turning on and off equipment)
                  Securing Cabling to Connections
                  Observing,  describing, or reporting on indicator
                   lights  or  display   information on  machines
                   or consoles
                  Typing   commands  on  a  keyboard   console
                  Cable organization, ties or labeling
                  File Server Back-up

Subtotal (without sales tax)                                                            $650.00
Calif. Sales Tax (7.75%)
Non-Recurring Costs Total*                                                              $650.00
                                    Monthly Charges

Qty.     Part#             Description                                          Price/Unit       Total       Sales Tax
1                 Deluxe Managed Server (Rented Server w/50 GB)                                  $950.00
1                 Mail Server (10 GB of Transfer/mo.)                                            $260.00
                  Remote hands 100 and 200 Services included

Subtotal                                                                                       $1,210.00
Calif. Sales Tax (7.75%)
Recurring Costs Total*                                                                          $1,210.00 x 3mos.
                                                                                               =$4,280.00
Comments:
         12 month agreement
*Subject to Terms and Conditions of Service afrement [sic]
Signature     /s/ signature illegible

</TABLE>

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