Document:

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                                                                  Exhibit 10.1.1

                                                                  Execution Copy

                   AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

      This Amended and Restated Stockholders Agreement (the "Agreement") is made
as of September 30, 1999 by and among:

      (i)   Advanced Telecommunications, Inc., a Delaware corporation (the
            "Company");

      (ii)  Stolberg Partners, L.P. and Stolberg, Meehan & Scano II, L.P. (the
            "Stolberg Investors");

      (iii) Bain Capital Fund VI, L.P. ("Bain") and the other Persons who are
            listed on the signature page as Bain Investors who purchase shares
            of the Company's Series C Preferred Stock, par value $0.01 per share
            (the "Series C Preferred") (together with Bain, the "Bain
            Investors", and the Bain Investors together with Stolberg, Meehan &
            Scano II, L.P. (in its capacity as a purchaser and holder of shares
            of Series C Preferred), the "Series C Investors") and

      (iv)  the individuals identified on the signature pages and Schedule I
            hereof as "Minority Stockholders," such other Persons who from time
            to time become party hereto by executing a counterpart signature
            page hereof and are designated by the Board and included on Schedule
            I as "Minority Stockholders," and such other Persons who were
            designated as "Minority Stockholders" under the Initial Stockholders
            Agreement (as defined below) and who are identified on Schedule I,
            whether or not such Persons have executed a counterpart signature
            page hereof (the "Minority Stockholders" and together with the
            Stolberg Investors and the Series C Investors, the "Stockholders").

                                    Recitals

      1. On or about the date hereof, the Series C Investors have purchased or
will purchase shares of the Series C Preferred pursuant to a Series C Preferred
Stock Purchase Agreement dated September 30, 1999 between the Company and the
Series C Investors (the "Purchase Agreement").

      2. Upon the Closing (as defined below), the Company's Common Stock, par
value $0.01 per share (the "Common Stock"), the Company's Series A Preferred
Stock, par value $0.01 per share (the "Series A Preferred"), the Company's
Series B1 Preferred Stock, par value $0.01 per share, the Company's Series B2
Preferred Stock, par value $0.01 per share, the Company's Series B3 Preferred
Stock, par value $0.01 per share, and the Company's Series B4 Preferred Stock,
par value $0.01 per share (collectively, the "Series B Preferred"

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and together with the Series A Preferred and the Series C Preferred, the
"Preferred Stock"), the Series C Preferred and all Options and Convertible
Securities are held as set forth on Schedule II hereto.

      3. The parties believe that it is in the best interests of the Company and
the Stockholders to set forth their agreements on certain matters.

      4. This Agreement amends and restates in its entirety the Stockholders
Agreement dated as of July 1, 1996 by and among the Company, the Stolberg
Investors and the Minority Stockholders, as amended and in effect on the date
hereof (the "Initial Stockholders Agreement").

                                    Agreement

      Therefore, the parties hereto hereby agree as follows:

1. EFFECTIVENESS; DEFINITIONS.

      1.1. Closing. This Agreement shall become effective upon consummation of
the initial closing (the "Closing") under the Purchase Agreement.

      1.2. Definitions. Certain terms are used in this Agreement as specifically
defined herein. These definitions are set forth or referred to in Section 12
hereof.

2. VOTING AGREEMENT.

      2.1. Election of Directors. Each holder of Shares hereby agrees to cast
all votes to which such holder is entitled in respect of the Shares, whether at
any annual or special meeting, by written consent or otherwise, (a) to fix the
number of members of the board of directors of the Company (the "Board") at
seven or such higher number as may be specified from time to time by the Board
with the consent of the Majority Series C Investors, and (b) to elect as
directors of the Company such individuals, if any, as shall have been nominated
as follows:

            (i) two members of the Board as shall have been nominated by the
      Majority Stolberg Investors;

            (ii) two members of the Board as shall have been nominated by the
      Majority Bain Investors;

            (iii) one member of the Board who shall be the Chief Executive
      Officer of the Company; and

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            (iv) the balance who shall have been nominated by the Board with the
      consent of the Majority Series C Investors; provide, however, that it is
      understood that Marvin Moses shall be deemed to have been nominated and
      approved as a member of the Board as of the Closing.

      If the ownership percentage of the Bain Investors increases pursuant to
Section 1.2 of the Purchase Agreement, the Majority Bain Investors shall be
entitled from time to time to nominate an additional director or directors in
order to maintain the Bain Investors' representation on the Board at
approximately the same percentage as the ownership percentage of the Bain
Investors.

      2.2. Boards and Board Committees. The Majority Bain Investors and the
Majority Stolberg Investors shall each have the right to appoint one member to
each committee of the Board including without limitation the compensation, audit
and executive committees. Upon the request of either the Majority Bain Investors
or the Majority Stolberg Investors, the Company shall cause the boards of
directors and committees of the boards of directors of the significant
subsidiaries of the Company (as reasonably defined by the Majority Bain
Investors or the Majority Stolberg Investors, as applicable, in such request to
the Company) to mirror the Board and committees of the Board of the Company.

      2.3. Major Transactions. The charter or bylaws of each subsidiary of the
Company shall at all times include a provision that the subsidiary will not
undertake a Major Transaction unless such Major Transaction has first been
approved by the Board of the Company.

      2.4. Board Voting. The bylaws of the Company and each of its Subsidiaries
shall contain a provision that in the event of a tie vote by the board of
directors of such entity, (a) if the number of members of the Board is six, the
Chief Executive Officer shall abstain from voting, and (b) if the number of
members of the Board is any other even number, the Board shall determine a tie
breaking mechanism that is reasonably acceptable to a majority of the members
nominated by the Majority Bain Investors and the Majority Stolberg Investors.

      2.5. Transactions with Stolberg or Bain Affiliates. The Company will not
enter into, or permit any of its subsidiaries to enter into, any transaction or
agreement with any Affiliate of the Stolberg Investors or the Bain Investors
without the prior approval of the Board.

      2.6. Initial Public Offering. The Company shall not file a registration
statement in connection with an initial public offering of securities of the
Company pursuant to the Securities Act other than a Qualified Public Offering
without the prior consent of the Majority Series C Investors.

      2.7. Personnel Matters. The Company shall not approve the hiring or
election of, promotion to, or demotion, firing or removal of any member of the
Senior Management of the

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Company or the Board (except as specifically set forth in Section 2.1) without
the prior consent of the Majority Series C Investors.

      2.8. Certain Transactions. Each holder of Shares agrees to cast all votes
to which such holder is entitled in respect of the Shares, whether at any annual
or special meeting, by written consent or otherwise, in the same proportion as
Series C Shares are voted by the Majority Series C Investors to approve any
sale, recapitalization, merger, consolidation, reorganization or any other
transaction or series of transactions involving the Company or its subsidiaries
(or all or any portion of their respective assets) in connection with, or in
furtherance of, the exercise by the Majority Series C Investors of their rights
under Sections 3.2 and 3.6, the exercise by the Majority Stolberg Investors of
their rights under Section 3.3 and the exercise by the Majority Series C
Investors and the Majority Stolberg Investors, acting together, of their rights
under Section 3.4.

      2.9. Grant of Proxy. Each holder of Shares other than the Series C
Investors and the Stolberg Investors hereby grants to the Company an irrevocable
proxy to vote its Shares in accordance with its agreements contained in this
Section 2, which proxy shall be valid and remain in effect until the provisions
of this Section 2 expire pursuant to Section 2.9.

      2.10. The Company. The Company agrees not to give effect to any action by
any holder of Shares or any other Person which is in contravention of this
Section 2.

      2.11. Period. The foregoing provisions of this Section 2 shall expire on
the earliest of (i) a Qualified Public Offering and (ii) the last date permitted
by law.

3. "TAG ALONG" AND "DRAG ALONG" RIGHTS.

      3.1. Tag Along. No holder of Stolberg Shares or Series C Shares (each such
holder, a "Prospective Selling Investor") shall Transfer for value (a "Sale")
any such Shares to a Prospective Buyer except in compliance with this Section
3.1. Any attempted Transfer of Shares not in compliance with this Section 3
shall be null and void, and the Company shall not in any way give effect to any
such impermissible Transfer.

            3.1.1. Notice. A written notice (the "Tag Along Notice") shall be
      furnished by the Prospective Selling Investor to each other holder of
      Shares (each, a "Tag Along Holder") at least ten business days prior to
      such Transfer. The Tag Along Notice shall include:

                  (a) The material terms of the proposed Sale insofar as it
            relates to the sale of Shares, including the number of Shares to be
            purchased from the Prospective Selling Investor, the percentage of
            the total number of Shares originally issued to the Prospective
            Selling Investor which such number of Shares constitutes (the "Tag
            Along Sale Percentage"), the maximum and

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            minimum per share purchase price and the name and address of the
            Prospective Buyer; and

                  (b) An invitation to each Tag Along Holder to make an offer to
            include in the proposed Sale to the Prospective Buyer an additional
            number of Shares (not in any event to exceed the Tag Along Sale
            Percentage of the total number of Shares held by such Tag Along
            Holder) owned by such Tag Along Holder, on the same terms and
            conditions subject to Section 3.5.4 in the case of Options, with
            respect to each Share Sold, as the Prospective Selling Investor
            shall Sell its Shares.

            3.1.2. Exercise. Within ten business days after the effectiveness of
      the Tag Along Notice, each Tag Along Holder desiring to make an offer to
      include Shares in the proposed Sale (each a "Participating Seller" and,
      together with the Prospective Selling Investor, collectively, the "Tag
      Along Sellers") shall send a written offer (the "Tag Along Offer") to the
      Prospective Selling Investor specifying the number of Shares (not in any
      event to exceed the Tag Along Sale Percentage of the total number of
      Shares held by such Participating Seller) which such Participating Seller
      desires to have included in the proposed Sale. Each Tag Along Holder who
      does not accept the Prospective Selling Investor's invitation to make an
      offer to include Shares in the proposed Sale shall be deemed to have
      waived all of its rights with respect to such Sale, and the Tag Along
      Sellers shall thereafter be free to Sell to the Prospective Buyer, at a
      per share price no greater than the maximum per share price set forth in
      the Tag Along Notice and on other principal terms which are not materially
      more favorable to the Tag Along Sellers than those set forth in the Tag
      Along Notice, without any further obligation to such non-accepting Tag
      Along Holder.

            3.1.3. Irrevocable Offer. The offer of each Participating Seller
      contained in its Tag Along Offer shall be irrevocable, and, to the extent
      such offer is accepted, such Participating Seller shall be bound and
      obligated to Sell in the proposed Sale on the same terms and conditions,
      with respect to each Share Sold (subject to Section 3.5.4 in the case of
      Options), as the Prospective Selling Investor, up to such number of Shares
      as such Participating Seller shall have specified in its Tag Along Offer;
      provided, however, that if the principal terms of the proposed Sale change
      with the result that the per share price shall be less than the minimum
      per share price set forth in the Tag Along Notice or the other principal
      terms shall be materially less favorable to the Tag Along Sellers than
      those set forth in the Tag Along Notice, each Participating Seller shall
      be permitted to withdraw the offer contained in its Tag Along Offer and
      shall be released from its obligations thereunder.

            3.1.4. Reduction of Shares Sold. The Prospective Selling Investor
      shall attempt to obtain the inclusion in the proposed Sale of the entire
      number of Shares which the Tag Along Sellers requested to have included in
      the Sale (as evidenced in the case of

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      the Prospective Selling Investor by the Tag Along Notice and in the case
      of each Participating Seller by such Participating Seller's Tag Along
      Offer). In the event the Prospective Selling Investor shall be unable to
      obtain the inclusion of such entire number of Shares in the proposed Sale,
      the number of Shares to be sold in the proposed Sale shall be allocated
      among the Tag Along Sellers in proportion, as nearly as practicable, to
      the respective number of Shares which each Tag Along Seller requested to
      be included in the proposed Sale.

            3.1.5. Additional Compliance. If (a) prior to consummation, the
      terms of the proposed Sale shall change with the result that the per share
      price to be paid in such proposed Sale shall be greater than the maximum
      per share price set forth in the Tag Along Notice or the other principal
      terms of such proposed Sale shall be materially more favorable to the Tag
      Along Sellers than those set forth in the Tag Along Notice, the Tag Along
      Notice shall be null and void, and it shall be necessary for a separate
      Tag Along Notice to be furnished, and the terms and provisions of this
      Section 3.1 separately complied with, in order to consummate such proposed
      Sale pursuant to this Section 3.1; provided, however, that in the case of
      such a separate Tag Along Notice, the applicable period to which reference
      is made in Sections 3.1.1 and 3.1.2 shall be five business days and (b)
      the Prospective Selling Investor has not completed the proposed Sale by
      the end of the 180th day following the date of the effectiveness of the
      Tag Along Notice, each Participating Seller shall be released from its
      obligations under its Tag Along Offer, the Tag Along Notice shall be null
      and void, and it shall be necessary for a separate Tag Along Notice to be
      furnished, and the terms and provisions of this Section 3.1 separately
      complied with, in order to consummate such proposed Sale pursuant to this
      Section 3.1, unless the failure to complete such proposed Sale resulted
      from any failure by any Participating Seller to comply with the terms of
      this Section 3.1.

            3.1.6. Excluded Transactions. Notwithstanding the foregoing, (a)
      holders of Stolberg Shares or Series C Shares shall not be obligated to
      comply with the foregoing provisions of this Section 3.1 and (b) no other
      holder of Shares shall have any right of participation pursuant to the
      terms of this Section 3.1, or otherwise, in each case, with respect to any
      Transfer of Shares:

                  (i)   subject to the provisions of Section 9.1, by a holder of
                        Stolberg Shares or Series C Shares to its partners or
                        Affiliates;

                  (ii)  to the Company or its subsidiaries;

                  (iii) subject to the provisions of Section 7.4.4, in a Public
                        Offering or, after the closing of the Initial Public
                        Offering, pursuant to Rule 144; or

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                  (iv)  in accordance with the exercise by the Series C
                        Investors, the Stolberg Investors, or the Stolberg
                        Investors and the Bain Investors of their "drag along"
                        rights pursuant to Section 3.2, 3.3 or 3.4 of this
                        Agreement.

      3.2. Series C Investors Drag Along. Each holder of Shares hereby agrees,
if requested by the Majority Series C Investors at any time following the third
anniversary of the date of the Closing hereunder, to Sell a specified percentage
(the "Drag Along Sale Percentage") of such Shares, directly or indirectly, to a
Prospective Buyer in the manner and on the terms set forth in this Section 3.2
in connection with the Sale by one or more holders of Series C Shares (each such
holder, a "Prospective Selling Investor") of the Drag Along Sale Percentage of
the total number of Series C Shares held by all holders of Series C Shares to
the Prospective Buyer.

            3.2.1. Exercise. If the Majority Series C Investors elect to
      exercise their rights under this Section 3.2, the Prospective Selling
      Investors shall furnish a written notice (the "Drag Along Notice") to each
      other holder of Shares and to the Company. The Drag Along Notice shall set
      forth the material terms of the proposed Sale insofar as it relates to the
      sale of Shares including the number of Shares to be acquired from the
      Prospective Selling Investors, the Drag Along Sale Percentage, the per
      share consideration to be received in the proposed Sale and the name,
      address and any Affiliate relationship to the Series C Investors of the
      Prospective Buyer. If the Prospective Selling Investors consummate the
      proposed Sale to which reference is made in the Drag Along Notice, each
      other holder of Shares (each a "Participating Seller", and, together with
      the Prospective Selling Investors, collectively, the "Drag Along Sellers")
      shall be bound and obligated to Sell the Drag Along Sale Percentage of its
      Shares in the proposed Sale on the same terms and conditions, with respect
      to each Share Sold (subject to Section 3.5.4 in the case of Options), as
      the Prospective Selling Investors shall Sell each Series C Share in the
      Sale (subject to Section 3.5.4 in the case of Options). If at the end of
      the 180th day following the date of the effectiveness of the Drag Along
      Notice the Prospective Selling Investors have not completed the proposed
      Sale, each Participating Seller shall be released from its obligation
      under the Drag Along Notice, the Drag Along Notice shall be null and void,
      and it shall be necessary for a separate Drag Along Notice to be furnished
      and the terms and provisions of this Section 3.2 separately complied with,
      in order to consummate such proposed Sale pursuant to this Section 3.2.

            3.2.2. Appraisal Process. In the case of a proposed Sale pursuant to
      Section 3.2 to a Prospective Buyer which is an Affiliate of a Series C
      Investor, such proposed Sale shall not be effected pursuant to the
      provisions of Section 3.2 unless the Appraisal Process is followed.

      3.3. Stolberg Investors Drag Along. Each holder of Shares hereby agrees,
if requested by the Majority Stolberg Investors on or after April 1, 2004 and if
at the time of such request

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the Stolberg Investors own at least 33 1/3% of the Equivalent Shares, to Sell a
specified percentage (the "Drag Along Sale Percentage") of such Shares, directly
or indirectly, to a Prospective Buyer in the manner and on the terms set forth
in this Section 3.3 in connection with the Sale by one or more holders of
Stolberg Shares (each such holder of Stolberg Shares, a "Prospective Selling
Investor") of the Drag Along Sale Percentage of the total number of Shares held
by all holders of Stolberg Shares to the Prospective Buyer.

            3.3.1. Exercise. If the Majority Stolberg Investors elect to
      exercise their rights under this Section 3.3, the Prospective Selling
      Investors shall furnish a written notice (the "Drag Along Notice") to each
      other holder of Shares and to the Company. The Drag Along Notice shall set
      forth the material terms of the proposed Sale insofar as it relates to the
      sale of Shares including the number of Shares to be acquired from the
      Prospective Selling Investors, the Drag Along Sale Percentage, the per
      share consideration to be received in the proposed Sale and the name,
      address and any Affiliate relationship to the Stolberg Investors of the
      Prospective Buyer. If the Prospective Selling Investors consummate the
      proposed Sale to which reference is made in the Drag Along Notice, each
      other holder of Shares (each a "Participating Seller", and, together with
      the Prospective Selling Investors, collectively, the "Drag Along Sellers")
      shall be bound and obligated to Sell the Drag Along Sale Percentage of its
      Shares in the proposed Sale on the same terms and conditions, with respect
      to each Share Sold (subject to Section 3.5.4 in the case of Options), as
      the Prospective Selling Investors shall Sell each Share in the Sale
      (subject to Section 3.5.4 in the case of Options). If at the end of the
      180th day following the date of the effectiveness of the Drag Along Notice
      the Prospective Selling Investors have not completed the proposed Sale,
      each Participating Seller shall be released from its obligation under the
      Drag Along Notice, the Drag Along Notice shall be null and void, and it
      shall be necessary for a separate Drag Along Notice to be furnished and
      the terms and provisions of this Section 3.3 separately complied with, in
      order to consummate such proposed Sale pursuant to this Section 3.3.

            3.3.2. Appraisal Process. In the case of a proposed Sale pursuant to
      Section 3.3 to a Prospective Buyer which is an Affiliate of a Stolberg
      Investor, such proposed Sale shall not be effected pursuant to the
      provisions of Section 3.3 unless the Appraisal Process is followed.

      3.4. Stolberg Investors and Bain Investors Drag Along. If (i) the Majority
Stolberg Investors or their Affiliates and (ii) the Majority Bain Investors,
acting together, either with or without any other holders of Shares (each such
holder, together with such Majority Stolberg Investors and such Majority Bain
Investors, a "Prospective Selling Investor"), propose to Transfer a specified
percentage (the "Drag Alone Sale Percentage") of the total number of Shares held
by such Prospective Selling Investors to a Prospective Buyer, then each holder
of Shares hereby agrees, if requested by the Majority Stolberg Investors and the
Majority Bain Investors, to Sell the Drag Along Sale Percentage of such Shares,
directly or indirectly, to such

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Prospective Buyer in the manner and on the terms set forth in this Section 3.4
in connection with the Sale by the Prospective Selling Investors of the Drag
Along Sale Percentage of the total number of Shares held such Prospective
Selling Investors to the Prospective Buyer.

            3.4.1. Exercise. If the Majority Stolberg Investors and the Majority
      Bain Investors elect to exercise their rights under this Section 3.4, the
      Prospective Selling Investors shall furnish a written notice (the "Drag
      Along Notice") to each other holder of Shares. The Drag Along Notice shall
      set forth the material terms of the proposed Sale insofar as it relates to
      the sale of Shares including the number of Shares to be acquired from the
      Prospective Selling Investors, the Drag Along Sale Percentage, the per
      share consideration to be received in the proposed Sale and the name,
      address and any Affiliate relationship to the Bain Investors or the
      Stolberg Investors of the Prospective Buyer. If the Prospective Selling
      Investors consummate the proposed Sale to which reference is made in the
      Drag Along Notice, each other holder of Shares (each a "Participating
      Seller", and, together with the Prospective Selling Investors,
      collectively, the "Drag Along Sellers") shall be bound and obligated to
      Sell the Drag Along Sale Percentage of its Shares in the proposed Sale on
      the same terms and conditions, with respect to each Share Sold (subject to
      Section 3.5.4 in the case of Options), as the Prospective Selling
      Investors shall Sell their Shares in the Sale (subject to Section 3.5.4 in
      the case of Options). If at the end of the 180th day following the date of
      the effectiveness of the Drag Along Notice the Prospective Selling
      Investors have not completed the proposed Sale, each Participating Seller
      shall be released from its obligation under the Drag Along Notice, the
      Drag Along Notice shall be null and void, and it shall be necessary for a
      separate Drag Along Notice to be furnished and the terms and provisions of
      this Section 3.4 separately complied with, in order to consummate such
      proposed Sale pursuant to this Section 3.4.

            3.4.2. Appraisal Process. In the case of a proposed Sale pursuant to
      Section 3.4 to a Prospective Buyer which is an Affiliate of a Stolberg
      Investor or a Bain Investor, such proposed Sale shall not be effected
      pursuant to the provisions of Section 3.4 unless the Appraisal Process is
      followed.

      3.5. Miscellaneous. The following provisions shall be applied to any
prospective Sale to which Section 3.1, 3.2, 3.3 or 3.4 applies:

            3.5.1. Certain Legal Requirements. In the event the consideration to
      be paid in exchange for Shares in a proposed Sale pursuant to Section 3.1,
      3.2, 3.3 or 3.4 includes any securities, and the receipt thereof by a
      Participating Seller would require under applicable law (a) the
      registration or qualification of such securities or of any person as a
      broker or dealer or agent with respect to such securities or (b) the
      provision to any Tag Along Seller or Drag Along Seller of any information
      regarding such securities or the issuer thereof that would not be required
      to be provided to the Prospective Selling Investors, and the Prospective
      Selling Investors determine not to have the issuer

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      register or qualify such securities or person or have the issuer provide
      such information, as the case may be, then in lieu of the receipt of
      securities in the proposed Sale, against surrender of the Shares (in
      accordance with Section 3.5.6 hereof) which are to be Sold by such
      Participating Seller to the Prospective Buyer in the proposed Sale, the
      Prospective Selling Investors shall, contemporaneously with such Sale,
      cause to be paid to the Participating Seller an amount in cash equal to
      the Fair Market Value of such Shares as of the date of the issuance of
      securities in exchange for Shares.

            3.5.2. Further Assurances. Each Participating Seller, whether in its
      capacity as a Participating Seller, stockholder, officer or director of
      the Company, or otherwise, shall take or cause to be taken all such
      actions as may be necessary or reasonably desirable in order expeditiously
      to consummate each Sale pursuant to Section 3.1, 3.2, 3.3 or 3.4 and any
      related transactions, including, without limitation, executing,
      acknowledging and delivering consents, assignments, waivers and other
      documents or instruments; furnishing information and copies of documents;
      filing applications, reports, returns, filings and other documents or
      instruments with governmental authorities; and otherwise cooperating with
      the Prospective Selling Investors and the Prospective Buyer; provided,
      however, that Participating Sellers shall be obligated to become liable in
      respect of any representations, warranties, covenants, indemnities or
      otherwise to the Prospective Buyer solely to the extent provided in the
      immediately following sentence. Without limiting the generality of the
      foregoing, each Participating Seller agrees to execute and deliver such
      agreements as may be reasonably specified by the Prospective Selling
      Investors, to which such Prospective Selling Investors will also be party,
      including, without limitation, agreements to (a) make individual
      representations, warranties, covenants and other agreements as to the
      unencumbered title to its Shares and the power, authority and legal right
      to Transfer such Shares and the absence of any Adverse Claim with respect
      to such Shares and (b) be liable (whether by purchase price adjustment,
      indemnity payments or otherwise) in respect of representations,
      warranties, covenants and agreements in respect of the Company and its
      subsidiaries; provided, however, that, except with respect to individual
      representations, warranties, covenants, indemnities and other agreements
      of Participating Sellers of the type described in clause (a) above, the
      aggregate amount of such liability shall not exceed the lesser of (i) such
      Participating Seller's pro rata portion of any such liability, to be
      determined in accordance with such Participating Seller's portion of the
      total number of Shares included in such Sale or (ii) the proceeds to such
      Participating Seller in connection with such Sale.

            3.5.3. Sale Process. The Prospective Selling Investors shall, in
      their sole discretion, decide whether or not to pursue, consummate,
      postpone or abandon any proposed Sale and the terms and conditions
      thereof. No Prospective Selling Investor or any Affiliate of any
      Prospective Selling Investor shall have any liability to any other holder
      of Shares arising from, relating to or in connection with the pursuit,
      consummation, postponement, abandonment or terms and conditions of any
      proposed

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      Sale except to the extent such Prospective Selling Investor shall have
      failed to comply with the provisions of this Section 3.

            3.5.4. Treatment of Options. If any Participating Seller shall Sell
      Options in any Sale pursuant to Section 3.1, 3.2, 3.3 or 3.4, such
      Participating Seller shall receive in exchange for such Options
      consideration equal to the amount (if greater than zero) determined by
      multiplying (a) the purchase price per share of Common Stock received by
      the Prospective Selling Investors in such Sale less the exercise price per
      share of such Option by (b) the number of shares of Common Stock issuable
      upon exercise of such Option (to the extent exercisable at the time of
      such Sale), subject to reduction for any tax or other amounts required to
      be withheld under applicable law.

            3.5.5. Expenses. All reasonable costs and expenses incurred by the
      Prospective Selling Investors or the Company in connection with any
      proposed Sale pursuant to this Section 3 (whether or not consummated),
      including without limitation all attorneys fees and expenses, all
      accounting fees and charges and all finders, brokerage or investment
      banking fees, charges or commissions, shall be paid by the Company. The
      reasonable fees and expenses of a single legal counsel representing any or
      all of the other Tag Along Sellers or Drag Along Sellers in connection
      with any proposed Sale pursuant to this Section 3 (whether or not
      consummated) shall be paid by the Company. Any other costs and expenses
      incurred by or on behalf of any or all of the other Tag Along Seller or
      Drag Along Seller in connection with any proposed Sale pursuant to this
      Section 3 (whether or not consummated) shall be borne by such Tag Along
      Seller(s) or Drag Along Seller(s).

            3.5.6. Closing. The closing of a Sale pursuant to Section 3.1, 3.2,
      3.3 or 3.4 shall take place at such time and place as the Prospective
      Selling Investors shall specify by notice to each Participating Seller. At
      the closing of any Sale under this Section 3, each Participating Seller
      shall deliver the certificates evidencing the Shares to be Sold by such
      Participating Seller, duly endorsed, or with stock (or equivalent) powers
      duly endorsed, for transfer with signature guaranteed, free and clear of
      any liens or encumbrances, with any stock (or equivalent) transfer tax
      stamps affixed, against delivery of the applicable consideration.

      3.6. Initiation of Sale of Company or Subsidiaries. Any other provision of
this Agreement to the contrary notwithstanding, the Majority Series C Investors
shall have the right at any time following the fourth anniversary of the date of
the Closing hereunder to control the initiation of the sale of all or
substantially all of the assets of the Company or the merger of the Company with
another Person (a "Liquidity Event") and to control the timing and terms of any
Liquidity Event initiated by the Majority Series C Investors; provided, however,
that such Liquidity Event shall be subject, in the case of a sale of Shares, to
the applicable provisions of this Section 3.

                                      -11-
<PAGE>

      3.7. Period. The provisions of this Section 3 shall expire on the earlier
of (a) a Change of Control or (b) the closing of a Qualified Public Offering.

4. TRANSFER RIGHTS.

      4.1. Transfer Restrictions. No holder of Minority Shares shall Transfer
any such Shares to any Person except in the manner and on the terms set forth in
this Section 4. Any attempted Transfer of Shares not permitted by this Section 4
shall be null and void, and the Company shall not in any way give effect to any
such impermissible Transfer.

            4.1.1. Right of First Refusal. Except as may be permitted under
      Section 4.2, or under any other provision of this Agreement, if a Minority
      Stockholder or any of its Permitted Transferees shall at any time propose
      to Transfer all or any portion of its Shares (a "Minority Sale"), or is to
      be divested of its interest in all or a portion of its Shares though
      seizure or sale by legal process or any Transfer through operation of law,
      such Minority Stockholder or Permitted Transferee (the "Minority
      Transferor") shall notify the Board and shall first offer such Shares for
      sale in writing to the Company. Such written offer (the "Offer") shall
      state the number and type of Shares to be Transferred, the name and
      address of the proposed transferee, and the terms, conditions and third
      party price of the proposed Transfer.

            Upon receipt of such Offer, the Company (and if a right to purchase
      is granted to the Stolberg Investors and the Bain Investors pursuant to
      Section 4.1.2.2, the Stolberg Investors and the Bain Investors) shall have
      the following rights and options:

                  4.1.1.1. In the case of a proposed Minority Sale, the Company
            (and the Stolberg Investors and the Bain Investors, if applicable)
            may purchase the Shares set forth in the Offer at the purchase price
            and upon such terms and conditions as follows:

                        (a) The purchase price for the Shares offered for sale
                  will be the lesser of (x) the purchase price proposed by the
                  third party as described in the Offer, and (y) an amount equal
                  to 100% of the Contract Price (provided, however, that the
                  purchasing party may, at its option, elect to forego
                  determination of the Contract Price and set the purchase price
                  at the third party offer price); and

                        (b) If the purchase price is that proposed by the third
                  party, the terms of payment shall be as proposed by the third
                  party (except that if the purchasing party elects to pay the
                  lesser of the third party sale price or the Contract Price,
                  the "date of purchase" may be deferred until a date which will
                  be no later than 20 days after determination of the Contract
                  Price); and

                                      -12-
<PAGE>

                        (c) If the purchase price is the Contract Price, the
                  terms of payment shall be the Contract Terms.

                  4.1.1.2. If the Minority Transferor is to be divested of its
            interest in said Shares through seizure or sale by legal process or
            by any Transfer through operation of law, including without
            limitation, a Transfer in connection with a judgment lien or a
            proceeding under the Bankruptcy Code, the purchase price of the
            Shares shall be an amount equal to the Contract Price and the terms
            of payment shall be the Contract Terms.

            4.1.2. Acceptance of Offer.

                  4.1.2.1. The Company may, by majority vote of the Board,
            accept the Offer as to all or any portion of the Shares proposed to
            be Transferred, by giving written notice of such acceptance to the
            Minority Transferor within 15 days after the making of the Offer.

                  4.1.2.2. In the event the Company does not exercise its option
            to purchase all of the Shares being offered for sale, and the Board
            by majority vote agrees that the Offer shall be extended to the
            Stolberg Investors and the Bain Investors, the Board shall provide a
            copy of the Offer to the Stolberg Investors and the Bain Investors,
            and the Stolberg Investors and the Bain Investors may purchase the
            Shares not being purchased by the Company in accordance with the
            following procedure:

                        (a) The Stolberg Investors and the Bain Investors may
                  purchase all or any portion of the Shares not being purchased
                  by the Company by giving written notice of such acceptance to
                  the Minority Transferor, with a copy to the Company, within 15
                  days after the expiration of the Company's option. A Stolberg
                  Investor or a Bain Investor that timely submits a notice of
                  acceptance hereunder will be conclusively deemed to have
                  exercised its option to purchase its pro rata portion of the
                  Shares offered for sale hereunder or, if less, the number of
                  Shares specified by such Stolberg Investor or Bain Investor in
                  its notice of acceptance or, if any one or more of the other
                  Bain Investors or Stolberg Investors does not exercise its
                  option to purchase its entire pro rata portion of the Shares,
                  such greater number of Shares as specified by such Stolberg
                  Investor or Bain Investor in its notice of acceptance.

                        (b) The Shares which are available for purchase by the
                  Stolberg Investors and the Bain Investors hereunder will be
                  allocated among the Stolberg Investors and the Bain Investors
                  that have timely submitted notices of acceptance
                  proportionately, i.e., each such Stolberg Investor

                                      -13-
<PAGE>

                  or Bain Investor shall be allocated that number of Shares
                  which is calculated by multiplying the total number of
                  available Shares by a fraction, the numerator of which is the
                  number of Shares owned by such Stolberg Investor or Bain
                  Investor and its Permitted Transferees, and the denominator of
                  which is the total number of Shares owned by all Stolberg
                  Investors and Bain Investors (and their Permitted Transferees)
                  that have timely submitted notices of acceptance hereunder
                  (or, if less, such Stolberg Investor or Bain Investor shall be
                  allocated the number of Shares specified by such Stolberg
                  Investor or Bain Investor in its notice of acceptance).

            4.1.3. Disposition to Third Party. If the Offer is not accepted by
      the Company and/or the Stolberg Investors or the Bain Investors (if
      applicable) with respect to all of the Shares offered for sale, then none
      of the acceptances under Section 4.1.2 shall be effective and the Minority
      Transferor shall have the right to Transfer all (but not less than all) of
      its Shares subject to the Offer to the third party designated in the
      Offer, on the same terms, conditions and price specified in the Offer;
      provided, however, that such Transfer is made within 30 days after the
      last date on which an Offer may be accepted under Section 4.1.2 and
      provided, further, that the transferee agrees in writing to be bound by
      this Agreement (other than the provisions of Section 5 hereof) to the same
      extent as if such transferee had originally been a Minority Stockholder
      hereunder. In the event of a Transfer to such third party in accordance
      with this Section 4.1.3, the Company, the Stolberg Investors and the Bain
      Investors shall provide the Minority Transferor with such documents and
      instruments as may be reasonably necessary to permit the Transfer free of
      the right of first refusal options granted to the Company, the Stolberg
      Investors and the Bain Investors as set forth in this Section 4.1.

            4.1.4. Failure of Sale. If neither the Company, the Stolberg
      Investors, the Bain Investors nor the third party purchases all of the
      Shares offered for sale within the periods provided in Sections 4.1.2 and
      4.1.3, such Shares shall continue to be subject to the restrictions of
      this Agreement.

            4.1.5. Remedy for Violation. Upon any voluntary Transfer of Shares
      by a Minority Stockholder or any of its Permitted Transferees in violation
      of any of the provisions of this Agreement, the Company, the Stolberg
      Investors and the Bain Investors shall have, in addition to such other
      remedies and damages as may be available to them under applicable law, the
      right and option to purchase all or any of such Shares from the holder or
      holders thereof at a price equal to 90% of the price that would otherwise
      have been applicable if the Minority Stockholder had complied with the
      terms hereof and the terms of payment shall be the Contract Terms. Such
      option shall be exercisable in the manner and in accordance with the
      procedures set forth in Sections 4.1.1 through 4.1.3, provided that, for
      purposes of applying such procedures,

                                      -14-
<PAGE>

the date of discovery of such violation shall be deemed to be the date on which
the Offer is made.

            4.1.6. Sale Involving Non-Cash Consideration. In the case of a
      Minority Sale in which the prospective purchaser's terms include
      consideration other than cash or deferred payments, the Offer by the
      Minority Transferor shall set forth as the proposed third party sale price
      an equivalent value cash price; provided, however, that the Board may in
      good faith dispute the equivalent value cash price set forth in the Offer
      by providing a notice in writing ("Notice of Dispute") to the Minority
      Transferor within five days of the giving of the Offer. In the event of
      such dispute, a determination of the equivalent value cash price shall be
      made as soon as practicable after delivery of the Offer by an Appraiser
      mutually agreeable to the Minority Transferor and the Board. If the
      Minority Transferor and the Board are unable to select an Appraiser by
      mutual agreement within five days following the date the Notice of Dispute
      is provided, the Board and the Minority Transferor shall each select an
      Appraiser, and the two Appraisers so selected shall select the Appraiser
      who shall determine the equivalent value cash price for purposes hereof.
      The Minority Transferor shall bear one-half of the cost of any appraisal
      required hereunder and the Company shall bear the balance of the cost of
      such appraisal. The equivalent value cash price determined by the
      Appraiser finally selected hereunder shall be binding and conclusive on
      the parties, and the Offer shall be deemed to have been made as of the
      date such determination of the equivalent value cash price is final.

      4.2. Transfers of Minority Shares. Notwithstanding anything to the
contrary in Section 4.1, any holder of Minority Shares may Transfer any or all
of the Minority Shares held by such holder as set forth below:

            4.2.1. Company. Any holder of Minority Shares may, at any time
      during his lifetime, voluntarily Transfer any or all of such Minority
      Shares, with the Board's prior written approval, to the Company or any
      subsidiary of the Company.

            4.2.2. Bain Investors and Stolberg Investors. Any holder of Minority
      Shares may Transfer any or all of such Minority Shares to the Bain
      Investors and the Stolberg Investors, provided that (a) such Minority
      Shares to be Transferred are offered to both the Bain Investors and the
      Stolberg Investors and (b) if both the Bain Investors and the Stolberg
      Investors agree to accept such Minority Shares, then such Minority Shares
      shall be allocated between the Bain Investors and the Stolberg Investors
      in proportion to the number of Shares then held by the Bain Investors and
      the Stolberg Investors.

            4.2.3. Members of Immediate Family. Subject to the provisions of
      Section 9, with the prior written approval of the Board which shall not be
      unreasonably withheld, any holder of Minority Shares may Transfer any or
      all of such Minority Shares to a Member of the Immediate Family of such
      holder.

                                      -15-
<PAGE>

            4.2.4. Partners; Affiliates. Subject to the provisions of Section 9,
      with the prior written approval of the Board which shall not be
      unreasonably withheld, any holder of Minority Shares that is not a natural
      person may Transfer any or all of such Minority Shares to a partner or
      Affiliate of such holder.

            4.2.5. Calls. Any holder of Minority Shares may Transfer any or all
      of such Minority Shares in accordance with the provisions, terms and
      conditions of Section 5 hereof.

            4.2.6. Tag Alongs, Drag Alongs, etc. Any holder of Minority Shares
      may Transfer any or all of such Minority Shares in accordance with the
      provisions, terms and conditions of Section 3 hereof.

            4.2.7. Public. Subject to the provisions of Section 7.4.4, any
      holder of Minority Shares may Transfer any or all of such Minority Shares
      in a Public Offering or, after the closing of an Initial Public Offering,
      pursuant to Rule 144.

Any attempted Transfer of Minority Shares not in compliance with this Section 4
shall be null and void, and the Company shall not in any way give effect to any
such impermissible Transfer.

      4.3. Period. The foregoing provisions of this Section 4 shall expire upon
the earlier of (a) a Change of Control and (b) the closing of a Qualified Public
Offering.

5. PURCHASES OF MINORITY SHARES.

      5.1. Purchases Upon Termination of Employment. In the event the employment
of a Minority Stockholder with the Company terminates for any reason whatsoever,
whether such termination is voluntary or involuntary and whether it is with or
without Cause, the following shall apply:

            5.1.1. In the event the employment of the Minority Stockholder is
      terminated by the Company by reason of Disability or terminates by reason
      of death, the Company shall purchase all Shares owned by the Minority
      Stockholder and his Permitted Transferees, and such holders shall sell all
      such Shares to the Company, at a price equal to the Contract Price and on
      the Contract Terms.

            5.1.2. In the event the Minority Stockholder voluntarily terminates
      his employment with the Company, or the Company terminates his employment
      other than by reason of Disability (and whether with or without Cause),
      the Company shall have the right and option, exercisable by written notice
      to the terminated Minority Stockholder at any time within four months
      following the effective date of termination

                                      -16-
<PAGE>

      of employment, to purchase all (but not less than all except as set forth
      in Section 5.2) Shares then owned by the terminated Minority Stockholder
      and his Permitted Transferees at a price equal to (i) the Base Price
      thereof, in the event of termination of employment with Cause, or (ii) the
      Contract Price, in the event of termination of employment without Cause or
      in the event of voluntary termination of employment. The terms of payment
      shall be the Contract Terms. If the Company does not timely exercise its
      option hereunder or cannot exercise any purchase under Section 5.1.1 or
      5.1.2 as described in Section 5.2, the Stolberg Investors and the Bain
      Investors shall have the right and option, exercisable by giving written
      notice to the terminated Minority Stockholder within 30 days following
      expiration of the Company's option hereunder, to purchase all Shares then
      owned by the Minority Stockholder and his Permitted Transferees at the
      same price and on the same terms of payment as would have been applicable
      had the Company timely exercised its option to purchase such Shares. Such
      Shares shall be allocated among the Stolberg Investors and the Bain
      Investors so electing in the manner set forth in Section 4.1.2.

            5.1.3. In the event the Minority Stockholder voluntarily terminates
      his employment with the Company, or the Company terminates his employment,
      the Minority Stockholder shall have the right and option, exercisable by
      written notice to the Company at any time within four months following the
      effective date of termination of employment, to require the Company to
      purchase all (but not less than all) of the Shares then owned by the
      terminated Minority Stockholder and his Permitted Transferees at a price
      equal to (i) the Base Price thereof, in the event of termination of
      employment with Cause, or (ii) the Contract Price, in the event of
      termination of employment without Cause or in the event of voluntary
      termination of employment. The terms of payment shall be the Contract
      Terms.

            5.1.4. In the event a Minority Stockholder disputes that his
      employment has been terminated for Cause, such dispute shall be resolved
      via arbitration conducted in accordance with the then current rules of the
      American Arbitration Association ("AAA") Upon the filing of a notice for
      demand for arbitration by a Minority Stockholder, the dispute shall be
      referred to and decided by an arbitrator appointed by the AAA in
      accordance with the then current rules of the AAA. Except as set forth
      below, each party shall bear its own costs incurred in connection with the
      arbitration proceeding. A party shall have the right to conduct and
      enforce prehearing discovery in accordance with the then current Federal
      Rules of Civil Procedure. Document discovery and other discovery shall be
      under the control of and enforceable by the arbitrator and the arbitrator
      shall permit and facilitate such discovery as it shall determine is
      appropriate under the circumstances. If the arbitrator rules against the
      Company, any sale and purchase of Shares owned by such terminated Minority
      Stockholder and his Permitted Transferees pursuant to the provisions of
      this Section 5 shall be at the Contract Price. In addition, if the
      arbitrator determines that the Company did not have a reasonable basis for
      concluding that the actions or inactions of

                                      -17-
<PAGE>

      the Minority Stockholder giving rise to his termination of employment
      constituted a basis for Cause, the arbitrator shall so state and, in such
      event, the Company shall be required to reimburse the Minority Stockholder
      for all reasonable fees and expenses incurred in connection with such
      arbitration hearing.

      For purposes of this Section 5.1, Shares subject to purchase and sale
pursuant to the provisions of this Section 5.1 shall also include any and all
Shares which could be acquired by a Minority Stockholder pursuant to any
outstanding vested options and/or warrants held by such Minority Stockholder as
of the date of such purchase.

      5.2. Inability to Purchase. Notwithstanding the provisions of this Section
5, if the Company is the purchaser and it shall not have authority to permit it
to lawfully, purchase all of the Shares which are subject to purchase under
Sections 5.1.1, 5.1.2 and 5.1.3 hereof, or if its Senior Lenders shall prohibit
the cash payment described in clause (b) of the definition of Contract Terms at
such time, then (i) the Company shall not be deemed to be in breach or violation
hereof as a result thereof, (ii) the Minority Stockholder shall not be required
to sell his Shares to the Company at that time, and (iii) the rights of the
Minority Stockholder and the Company to demand purchase and sale of Shares held
by such Minority Stockholder and his Permitted Transferees shall be deferred
until such time as the Company shall legally be able to purchase such Shares or
the Senior Lenders agree that such purchase may be made. The Company shall
promptly give notice to the Minority Stockholder once it is legally able to
purchase such Shares or the Senior Lenders agree to the cash payment (the
"Waiver of Deferral Notice") and the purchase and sale obligations set forth in
Section 5.1.1 and the four month period in which the Minority Stockholder and
the Company have the option to exercise put and call rights as described in this
Section 5 shall begin running from the date of such notice. In the event of any
Transfers of Shares held by the Minority Stockholder and/or his Permitted
Transferees in accordance with this Agreement prior to the Waiver of Deferral
Notice, the reinstated put and call options described herein shall not apply to
such Transferred Shares. Notwithstanding the foregoing, if the seller shall so
request, the Company shall purchase as many of the Shares involved as it legally
shall be able to purchase or as its Senior Lenders may permit it to purchase
with the corresponding cash payment on the date the purchase is otherwise to
close hereunder.

      5.3. Employment with Subsidiary. For purposes of this Section 5, a
Minority Stockholder's employment with any subsidiary of the Company shall be
deemed to be employment with the Company. Any termination thereof shall be
deemed to be termination of such employment with the Company; provided, however,
that any termination of employment with Company or any subsidiary when such
employee is immediately employed by another subsidiary of the Company shall not
be deemed termination for purposes here.

      5.4. Contingent Put Option. In the event the Internal Revenue Service
("IRS") determines that the transfer by any Cady Stockholder of its shares of
common stock of Cady Communications, Inc. ("CCI Stock") to the Company in
exchange for Preferred Stock of the

                                      -18-
<PAGE>

Company does not satisfy the requirements of Section 351 of the Internal Revenue
Code of 1986, as amended (the "Code"), for tax- free exchange treatment and,
therefore, determines that such Cady Stockholder must recognize gain upon the
exchange of CCI stock for Preferred Stock (the "Gain"), then the following
shall apply:

            5.4.1. The Cady Stockholder shall have the right and option,
      exercisable by written notice to the Company delivered within 30 days
      after a final IRS determination, to require the Company to purchase that
      number of Shares of the Company held by such Cady Stockholder as have an
      aggregate Contract Price equal to the amount of federal and state capital
      gains taxes required to be paid by the Cady Stockholder on the Gain. For
      purposes hereof, an IRS determination shall be "final" if no right of
      appeal exists or the time allowed for appeal has expired without the Cady
      Stockholder appealing such determination. In the event of a sale and
      purchase pursuant to this Section 5.4, the purchase price for the Shares
      subject to the put option shall be the Contract Price and the terms of
      payment shall be the Contract Terms except that no promissory note shall
      be issued and the purchase price shall be paid in full in cash at the
      closing of the purchase and sale of such Shares.

            5.4.2. Notwithstanding the provisions of Section 5.4.1, if the
      Company's Senior Lenders shall prohibit payment by the Company with
      respect to the put option described herein, then the Company shall not be
      required to purchase any Shares pursuant to this Section 5.4.

      5.5. Period. The provisions of Section 5 (other than Section 5.4) shall
expire on the closing of a Qualified Public Offering.

6. PREEMPTIVE RIGHTS. The Company shall not issue or sell any shares of any of
its capital stock or any securities convertible into or exchangeable for any
shares of its capital stock, issue or grant any options or warrants for the
purchase of, or enter into any agreements providing for the issuance (contingent
or otherwise) of, any of its capital stock or any stock or securities
convertible into or exchangeable for any shares of its capital stock, in each
case, to any Person (each an "Issuance" of "Subject Securities"), except in
compliance with the provisions of this Section 6.

      6.1. Right of Participation.

            6.1.1. Offer. Not fewer than 15 days prior to the consummation of
      the Issuance, a notice (the "Participation Notice") shall be furnished by
      the Company to each of the Bain Investors, the Stolberg Investors,
      Clifford D. Williams, Paul D. Cady, Daniel P. Cady, David G. Cady and Kim
      Cady, Susan E. Rivera and Thomas Rivera, and Steve M. Simon (the
      "Participation Offerees"). The Participation Notice shall include:

                                      -19-
<PAGE>

                  (a) The principal terms of the proposed Issuance, including,
            without limitation, the amount and kind of Subject Securities to be
            included in the Issuance, the number of Equivalent Shares
            represented by such Subject Securities (if applicable), the
            percentage of the total number of Equivalent Shares outstanding as
            of immediately prior to giving effect to such Issuance which the
            number of Equivalent Shares held by such Participation Offeree
            constitutes (the "Participation Portion"), the maximum and minimum
            price (including, without limitation, if applicable, the maximum and
            minimum Price Per Equivalent Share) per unit of the Subject
            Securities, which maximum price shall be no greater than the lesser
            of $1.00 or five percent above the minimum price, and the name and
            address of the Person to whom the Subject Securities will be Issued
            (the "Prospective Subscriber"); and

                  (b) An offer by the Company to Issue, at the option of each
            Participation Offeree, to such Participation Offeree such portion of
            the Subject Securities to be included in the Issuance as may be
            requested by such Participation Offeree (not to exceed the
            Participation Portion of the total amount of Subject Securities to
            be included in the Issuance), on the same economic terms and
            conditions, with respect to each unit of Subject Securities issued
            to the Participation Offerees, as each of the Prospective
            Subscribers shall be Issued units of Subject Securities.

            6.1.2. Exercise.

                  6.1.2.1. General. Each Participation Offeree desiring to
            accept the offer contained in the Participation Notice shall send a
            written commitment to the Company within 15 days after the
            effectiveness of the Participation Notice specifying the amount of
            Subject Securities (not in any event to exceed its Participation
            Portion of the total amount of Subject Securities to be included in
            the Issuance) which such Participation Offeree desires to be issued
            (each a "Participating Buyer"). Each Participation Offeree who has
            not so accepted such offer shall be deemed to have waived all of its
            rights with respect to the Issuance, and the Company shall
            thereafter be free to Issue Subject Securities in the Issuance to
            the Prospective Subscriber and any Participating Buyers, at a price
            no less than the minimum price set forth in the Participation Notice
            and on other principal terms not substantially more favorable to the
            Prospective Subscriber than those set forth in the Participation
            Notice, without any further obligation to such non-accepting
            Participation Offerees. If, prior to consummation, the terms of such
            proposed Issuance shall change with the result that the price shall
            be less than the minimum price set forth in the Participation Notice
            or the other principal terms shall be substantially more favorable
            to the Prospective Subscriber than those set forth in the
            Participation Notice, it shall be necessary for a separate
            Participation Notice to be furnished, and the terms and

                                      -20-
<PAGE>

            provisions of this Section 6.1 separately complied with, in order to
            consummate such Issuance pursuant to this Section 6.1.

                  6.1.2.2. Irrevocable Acceptance. The acceptance of each
            Participating Buyer shall be irrevocable except as hereinafter
            provided, and each such Participating Buyer shall be bound and
            obligated to acquire in the Issuance on the same terms and
            conditions, with respect to each unit of Subject Securities Issued,
            as the Prospective Subscriber, such amount of Subject Securities as
            such Participating Buyer shall have specified in such Participating
            Buyer's written commitment.

                  6.1.2.3. Time Limitation. If at the end of the 180th day
            following the date of the effectiveness of the Participation Notice
            the Company has not completed the Issuance (for any reason other
            than the failure by any Participating Buyer to pay the applicable
            purchase price), each Participating Buyer shall be released from its
            obligations under the written commitment, the Participation Notice
            shall be null and void, and it shall be necessary for a separate
            Participation Notice to be furnished, and the terms and provisions
            of this Section 6.1 separately complied with, in order to consummate
            such Issuance pursuant to this Section 6.1.

            6.1.3. Other Securities. The Company may condition the participation
      of the Participation Offerees in an Issuance upon the purchase by such
      Participation Offerees of any securities (including, without limitation,
      debt securities) other than Subject Securities ("Other Securities") in the
      event that the participation of the Prospective Subscriber in such
      Issuance is so conditioned. In such case, each Participating Buyer shall
      acquire in the Issuance, together with the Subject Securities to be
      acquired by it, Other Securities in the same proportion to the Subject
      Securities to be acquired by it as the proportion of Other Securities to
      Subject Securities being acquired by the Prospective Subscriber in the
      Issuance, on the same terms and conditions, as to each unit of Subject
      Securities and Other Securities issued to the Participating Buyers, as the
      Prospective Subscriber shall be issued units of Subject Securities and
      Other Securities.

            6.1.4. Certain Legal Requirements. In the event that the
      participation in the Issuance by a Participation Offeree as a
      Participating Buyer would require under applicable law (i) the
      registration or qualification of such securities or of any person as a
      broker or dealer or agent with respect to such securities or (ii) the
      provision to any participant in the Sale of any information regarding the
      Company or the securities that would not be required to be provided to
      Bain or either of the Stolberg Investors, then such holder of Shares shall
      not have the right to participate in the Issuance. Without limiting the
      generality of the foregoing, it is understood and agreed that the Company
      shall not be under any obligation to effect a registration of such
      securities under the Securities Act or similar state statutes.

                                      -21-
<PAGE>

            6.1.5. Further Assurances. Each Participation Offeree and each
      Stockholder to whom the Shares held by such Participation Offeree were
      originally issued, shall, whether in its capacity as a Participating
      Buyer, Stockholder, officer or director of the Company, or otherwise, take
      or cause to be taken all such reasonable actions as may be necessary or
      reasonably desirable in order expeditiously to consummate each Issuance
      pursuant to this Section 6.1 and any related transactions, including,
      without limitation, executing, acknowledging and delivering consents,
      assignments, waivers and other documents or instruments; filing
      applications, reports, returns, filings and other documents or instruments
      with governmental authorities; and otherwise cooperating with the Company
      and the Prospective Subscriber. Without limiting the generality of the
      foregoing, each such Participating Buyer and Stockholder agrees to execute
      and deliver such subscription and other agreements specified by the
      Company to which the Prospective Subscriber will be party.

            6.1.6. Expenses. All reasonable costs and expenses incurred by the
      Participation Offerees or the Company in connection with any proposed
      Issuance of Subject Securities (whether or not consummated), including
      without limitation all accounting fees and charges, all finders, brokerage
      or investment banking fees, charges or commissions, and the reasonable
      fees and expenses of a single legal counsel representing any or all of the
      Participation Offerees in connection with any proposed Issuance of Subject
      Securities (whether or not consummated) shall be paid by the Company.

            6.1.7. Closing. The closing of an Issuance pursuant to Section 6.1
      shall take place at such time and place as the Company shall specify by
      notice to each Participating Buyer. At the closing of any Issuance under
      this Section 6.1.7, each Participating Buyer shall be delivered the notes,
      certificates or other instruments evidencing the Subject Securities (and,
      if applicable, Other Securities) to be Issued to such Participating Buyer,
      registered in the name of such Participating Buyer or its designated
      nominee, free and clear of any liens or encumbrances, with any transfer
      tax stamps affixed, against delivery by such Participating Buyer of the
      applicable consideration.

      6.2. Excluded Transactions. Notwithstanding the preceding provisions of
this Section 6, the preceding provisions of this Section 6 shall not restrict:

            (a) Any Issuance of Common Stock upon the exercise or conversion of
      any Common Stock, Options or Convertible Securities outstanding on the
      date hereof or Issued after the date hereof in compliance with the
      provisions of this Section 6;

            (b) Any Issuance of Subject Securities in connection with the
      acquisition by the Company or its subsidiaries of the business, assets or
      stock of another entity;

                                      -22-
<PAGE>

            (c) Any Issuance of Subject Securities to employees, directors or
      consultants of the Company or its subsidiaries;

            (d) Any Issuance of Subject Securities in connection with the
      placement of debt;

            (e) Any Issuance of Common Stock in connection with a Public
      Offering;

            (f) The Issuance of Series C Shares to the Series C Investors at the
      Closing and the Subsequent Closings (as defined in the Purchase
      Agreement);

            (g) The Issuance of Series B Preferred upon exchange of any of (i)
      the Company's Series A 8% Convertible Subordinated Promissory Notes
      currently convertible into shares of Common Stock at a per share price of
      $1.8207, (ii) the Company's Series A 8% Convertible Subordinated
      Promissory Notes currently convertible into shares of Common Stock at a
      per share price of $2.0318, (iii) the Company's Series B 8% Convertible
      Subordinated Notes currently convertible into shares of Common Stock at a
      per share price of $2.0822 (collectively, all such notes, the "Notes"), or
      (iv) any interest that has or will have accrued on such converted Notes;

            (h) The Issuance of Subject Securities pursuant to the terms of the
      Agreement and Plan of Merger, dated as of June 22, 1998, by and among the
      Company, Cady Communications, Inc. and One Call Telecom, Inc.;

            (i) The Issuance of warrants or Common Stock pursuant to the terms
      of the Stock Purchase Warrant Agreement, dated as of July 19, 1999, by and
      among the Company and General Electric Capital Corporation;

            (j) The Issuance of Common Stock pursuant to the terms of the Stock
      Purchase Warrant Agreement, dated as of April 12, 1999, by and among the
      Company and Imperial Bank;

            (k) The Issuance of Series A Preferred upon exchange of shares of
      the Company's Class B Common Stock;

            (l) The Issuance of Common Stock by reason of a dividend, stock
      split, split-up or other distribution on Common Stock; or

            (m) The Issuance of other Subject Securities upon the written
      consent of the holders of 66 2/3% of the Shares held by the Participation
      Offerees (following a written notice to such Participation Offerees
      requesting such exclusion, which notice shall include the type of security
      to be issued, the number of shares of the security to be issued, and the
      consideration to be received by the Company for such security(ies)).

                                      -23-
<PAGE>

      6.3. Certain Provisions Applicable to Options. In the event that the
Issuance of Subject Securities shall result in any increase in the number of
shares of Common Stock issuable upon exercise of the Options, the number of
shares (or Equivalent Shares, if applicable) of Subject Securities (and Other
Securities, if applicable) which the holders of such Options shall be entitled
to purchase pursuant to Section 6.1, if any, shall be reduced, share for share,
by the amount of any such increase.

      6.4. Period. The foregoing provisions of this Section 6 shall expire on
the earlier of (a) a Change of Control or (b) the closing of a Qualified Public
Offering.

7. REGISTRATION RIGHTS. The Company will perform and comply, and cause each of
its subsidiaries to perform and comply, with such of the following provisions as
are applicable to it. Each holder of Shares will perform and comply with such of
the following provisions as are applicable to such holder.

      7.1. Demand Registration Rights for Bain Shares.

            7.1.1. General. At any time after the earlier of (i) the second
      anniversary of the date of the Closing, or (ii) 180 days after the closing
      of the Initial Public Offering, one or more holders of Bain Shares
      representing at least 25% of the total amount of Registrable Securities
      into which the Bain Shares then outstanding are convertible ("Initiating
      Bain Investors"), by notice to the Company specifying the intended method
      or methods of disposition, may request that the Company effect the
      registration under the Securities Act for a Public Offering of at least
      25% of the then outstanding Registrable Bain Securities or of Registrable
      Securities having an aggregate offering price of at least $5,000,000
      (based upon the then current public market price or Fair Market Value of
      such Registrable Securities) (for purposes of this Agreement, "Registrable
      Bain Securities" shall mean Registrable Securities into which the Bain
      Shares are convertible). At any time after the Company becomes eligible to
      file a registration statement on Form S-3 (or any successor form relating
      to secondary offerings), holders of Bain Shares will have the right to
      require the Company to effect a registration on Form S-3 (or such
      successor form), of Registrable Securities having an aggregate offering
      price in each registration on Form S-3 in excess of $500,000 (based on the
      current public market price at the time the registration is requested).
      The Company will then use its best efforts to effect the registration
      under the Securities Act of the Registrable Securities which the Company
      has been requested to register by such Initiating Bain Investors together
      with all other Registrable Securities which the Company has been requested
      to register pursuant to Section 7.3 by notice delivered to the Company
      within 20 days after the Company has given the notice required by Section
      7.3.1 (which request shall specify the intended method of disposition of
      such Registrable Securities), all to the extent requisite to permit the
      disposition (in accordance with the intended methods thereof as aforesaid)
      of the Registrable Securities which the Company has been so requested to
      register.

                                      -24-
<PAGE>

            7.1.2. Number of Registrations; Form. The Company shall be required
      to effect only two registrations on Form S-1 (or any successor form) and
      an unlimited number of registrations on Form S-3 (or any successor form)
      pursuant to Section 7.1; provided, however, that the Company shall not be
      required to effect any registration (other than on Form S-3 or any
      successor form relating to secondary offerings) within six months after
      the effective date of any other registration statement of the Company;
      provided further; that the Company shall not be required to effect more
      than two registrations pursuant to Section 7.1 in any 12-month period.

            7.1.3. Company Delay. If at the time of any request to register
      Registrable Securities pursuant to this Section 7.1, the Company is
      engaged or has fixed plans to engage within 30 days of the time of the
      request in a registered public offering as to which the holders of Bain
      Shares may include Registrable Securities pursuant to Section 7.3 or is
      engaged in any other activity which, in the good faith determination of
      the Board, would be adversely affected by the requested registration to
      the material detriment of the Company, then the Company may at its option
      direct that such request be delayed for a period not in excess of 90 days
      from the effective date of such offering or the date of commencement of
      such other material activity, as the case may be, such right to delay a
      request to be exercised by the Company not more than once in any two year
      period.

            7.1.4. Effective Demands. Except as provided in Section 7.1.5, no
      registrations of Registrable Securities which shall not have become and
      remained effective in accordance with the provisions of this Section 7,
      and no registrations of Registrable Securities pursuant to which the
      Initiating Bain Investors and all other holders of Registrable Bain
      Securities joining therein are not able to include at least 90% of the
      Registrable Securities which they desired to include, shall be included in
      the calculation of numbers of registrations contemplated by this Section
      7.1.

            7.1.5. Payment of Expenses. The Company shall pay all reasonable
      costs and expenses incurred by the holders of Bain Shares, including the
      reasonable fees and expenses of a single legal counsel representing any or
      all of the Initiating Bain Investors, in connection with each registration
      of Registrable Securities requested pursuant to this Section 7.1, other
      than underwriting discount and commission, if any, and applicable transfer
      taxes, if any; provided, however, that if a registration under this
      Section 7.1 is withdrawn at the request of the Initiating Bain Investors
      (other than as a result of information concerning the business or
      financial condition of the Company which is made known to the Initiating
      Bain Investors after the date on which such registration was requested and
      other than as a result of a significant deterioration of the financial
      markets) and if the Initiating Bain Investors elect not to have such
      registration counted as a registration requested under this Section 7.1,
      the Initiating Bain Investors

                                      -25-
<PAGE>

      shall pay the registration expenses of such registration pro rata in
      accordance with the number of their Registrable Securities included in
      such registration.

            7.1.6. Additional Procedures. In the case of a registration pursuant
      to Section 7.1 hereof, whenever the holders of at least a majority of the
      Registrable Bain Securities to be included in the proposed registration
      statement in question (the "Majority Participating Investors") shall
      request that such registration shall be effected pursuant to an
      underwritten offering, the Company shall include such information in the
      written notices to holders of Registrable Securities referred to in
      Section 7.3. In such event, the right of any holder of Registrable
      Securities to have securities owned by such holder included in such
      registration pursuant to Section 7.1 shall be conditioned upon such
      holder's participation in such underwriting and the inclusion of such
      holder's Registrable Securities in the underwriting (unless otherwise
      mutually agreed upon by the Majority Participating Investors and such
      holder). If requested by such underwriters, the Company together with the
      holders of Registrable Securities proposing to distribute their securities
      through such underwriting will enter into an underwriting agreement with
      such underwriters for such offering containing such representations and
      warranties by the Company and such holders and such other terms and
      provisions as are customarily contained in underwriting agreements with
      respect to secondary distributions, including, without limitation,
      customary indemnity and contribution provisions (subject, in each case, to
      the limitations on such liabilities set forth in this Agreement).

      7.2. Demand Registration Rights for Stolberg Shares.

            7.2.1. General. At any time after the earlier of (i) 180 days after
      the closing of the Initial Public Offering or (ii) subject to the
      provisions of Section 7.2.7, the third anniversary of the date of the
      Closing, one or more holders of Stolberg Shares representing at least 25%
      of the total amount of Registrable Securities into which the Stolberg
      Shares then outstanding are convertible ("Initiating Stolberg Investors"),
      by notice to the Company specifying the intended method or methods of
      disposition, may request that the Company effect the registration under
      the Securities Act for a Public Offering of at least 25% of the then
      outstanding Registrable Stolberg Securities or of Registrable Securities
      having an aggregate offering price of at least $5,000,000 (based upon the
      then current public market price or Fair Market Value of such Registrable
      Securities) (for purposes of this Agreement, "Registrable Stolberg
      Securities" shall mean Registrable Securities into which the Stolberg
      Shares are convertible). At any time after the Company becomes eligible to
      file a registration statement on Form S-3 (or any successor form relating
      to secondary offerings), holders of Stolberg Shares will have the right to
      require the Company to effect a registration on Form S-3 (or such
      successor form), of Registrable Securities having an aggregate offering
      price in each registration on Form S-3 in excess of $500,000 (based on the
      current public market price at the time the registration is requested).
      The Company will then use its best

                                      -26-
<PAGE>

      efforts to effect the registration under the Securities Act of the
      Registrable Securities which the Company has been requested to register by
      such Initiating Stolberg Investors together with all other Registrable
      Securities which the Company has been requested to register pursuant to
      Section 7.3 by notice delivered to the Company within 20 days after the
      Company has given the notice required by Section 7.3.1 (which request
      shall specify the intended method of disposition of such Registrable
      Securities), all to the extent requisite to permit the disposition (in
      accordance with the intended methods thereof as aforesaid) of the
      Registrable Securities which the Company has been so requested to
      register.

            7.2.2. Number of Registrations; Form. The Company shall be required
      to effect only two registrations on Form S-1 (or any successor form) and
      an unlimited number of registrations on Form S-3 (or any successor form)
      pursuant to Section 7.2; provided, however, that the Company shall not be
      required to effect any registration (other than on Form S-3 or any
      successor form relating to secondary offerings) within six months after
      the effective date of any other registration statement of the Company;
      provided further; that the Company shall not be required to effect more
      than two registrations pursuant to Section 7.2 in any 12-month period.

            7.2.3. Company Delay. If at the time of any request to register
      Registrable Securities pursuant to this Section 7.2, the Company is
      engaged or has fixed plans to engage within 30 days of the time of the
      request in a registered public offering as to which the holders of
      Stolberg Shares may include Registrable Securities pursuant to Section 7.3
      or is engaged in any other activity which, in the good faith determination
      of the Board, would be adversely affected by the requested registration to
      the material detriment of the Company, then the Company may at its option
      direct that such request be delayed for a period not in excess of 90 days
      from the effective date of such offering or the date of commencement of
      such other material activity, as the case may be, such right to delay a
      request to be exercised by the Company not more than once in any two year
      period.

            7.2.4. Effective Demands. No registrations of Registrable Securities
      which shall not have become and remained effective in accordance with the
      provisions of this Section 7, and no registrations of Registrable
      Securities pursuant to which the Initiating Stolberg Investors and all
      other holders of Registrable Stolberg Securities joining therein are not
      able to include at least 90% of the Registrable Securities which they
      desired to include, shall be included in the calculation of numbers of
      registrations contemplated by this Section 7.2.

            7.2.5. Payment of Expenses. The Company shall pay all reasonable
      costs and expenses incurred by the holders of Stolberg Shares, including
      the reasonable fees and expenses of a single legal counsel representing
      any or all of the Initiating Stolberg Investors, in connection with each
      registration of Registrable Securities requested

                                      -27-
<PAGE>

      pursuant to this Section 7.2, other than underwriting discount and
      commission, if any, and applicable transfer taxes, if any; provided,
      however, that if a registration under this Section 7.2 is withdrawn at the
      request of the Initiating Stolberg Investors (other than as a result of
      information concerning the business or financial condition of the Company
      which is made known to the Initiating Stolberg Investors after the date on
      which such registration was requested and other than as a result of a
      significant deterioration of the financial markets) and if the Initiating
      Stolberg Investors elect not to have such registration counted as a
      registration requested under this Section 7.2, the Initiating Stolberg
      Investors shall pay the registration expenses of such registration pro
      rata in accordance with the number of their Registrable Securities
      included in such registration.

            7.2.6. Additional Procedures. In the case of a registration pursuant
      to Section 7.2 hereof, whenever the holders of at least a majority of the
      Registrable Stolberg Securities to be included in the proposed
      registration statement in question (the "Majority Participating
      Investors") shall request that such registration shall be effected
      pursuant to an underwritten offering, the Company shall include such
      information in the written notices to holders of Registrable Securities
      referred to in Section 7.3. In such event, the right of any holder of
      Registrable Securities to have securities owned by such holder included in
      such registration pursuant to Section 7.2 shall be conditioned upon such
      holder's participation in such underwriting and the inclusion of such
      holder's Registrable Securities in the underwriting (unless otherwise
      mutually agreed upon by the Majority Participating Investors and such
      holder). If requested by such underwriters, the Company together with the
      holders of Registrable Securities proposing to distribute their securities
      through such underwriting will enter into an underwriting agreement with
      such underwriters for such offering containing such representations and
      warranties by the Company and such holders and such other terms and
      provisions as are customarily contained in underwriting agreements with
      respect to secondary distributions, including, without limitation,
      customary indemnity and contribution provisions (subject, in each case, to
      the limitations on such liabilities set forth in this Agreement).

            7.2.7. IRR Threshold. In the case of a registration pursuant to
      Section 7.2.1 in connection with the Initial Public Offering, the Company
      shall not effect such registration unless the Estimated Net Offering Price
      Per Share (as defined below) for such offering is equal to or greater than
      the Target Net Offering Price Per Share. The "Estimated Net Offering Price
      Per Share" shall mean the average of the highest and lowest net offering
      prices per share in the range of estimated net offering prices per share
      determined by the underwriter retained in connection with such offering,
      which underwriter shall be selected by the Initiating Stolberg Investors
      with the consent of the Board and the Majority Bain Investors.
      Notwithstanding anything to the contrary in this Section 7.2, in the event
      that the final net offering price per share determined by the underwriter
      immediately prior to the effective date of such offering is less than 95%

                                      -28-
<PAGE>

      of the Target Net Offering Price Per Share, then the Company shall, upon
      the request of the Majority Bain Investors, cause such offering to be
      terminated.

      7.3. Piggyback Registration Rights.

            7.3.1. Piggyback Registration.

                  7.3.1.1. General. Each time the Company proposes to register
            any shares of Common Stock under the Securities Act on a form which
            would permit registration of Registrable Securities for sale to the
            public, for its own account and/or for the account of one or more
            Bain Investors or Stolberg Investors (pursuant to Section 7.1 or 7.2
            or otherwise) for sale in a Public Offering, the Company will give
            notice to all holders of Registrable Securities of its intention to
            do so. Any such holder may, by written response delivered to the
            Company within 20 days after the effectiveness of such notice,
            request that all or a specified part of the Registrable Securities
            held by such holder be included in such registration. The Company
            thereupon will use its reasonable efforts to cause to be included in
            such registration under the Securities Act all shares of Common
            Stock which the Company has been so requested to register by such
            holders, to the extent required to permit the disposition (in
            accordance with the methods to be used by the Company or other
            holders of shares of Common Stock in such Public Offering) of the
            Registrable Securities to be so registered. No registration of
            Registrable Securities effected under this Section 7.3 shall relieve
            the Company of any of its obligations to effect registrations of
            Registrable Securities pursuant to Section 7.1 or 7.2 hereof.

                  7.3.1.2. Excluded Transactions. The Company shall not be
            obligated to effect any registration of Registrable Securities under
            this Section 7.3 incidental to the registration of any of its
            securities in connection with:

                        (a) Any Public Offering relating to employee benefit
                  plans or dividend reinvestment plans;

                        (b) Any Public Offering relating to the acquisition or
                  merger after the date hereof by the Company or any of its
                  subsidiaries of or with any other businesses; or

                        (c) The Initial Public Offering except as to (i)
                  Registrable Securities requested to be included in such
                  offering by one or more of the Bain Investors and the Stolberg
                  Investors and (ii) securities requested to be included in such
                  offering pursuant to registration rights that exist on the
                  date of this Agreement.

                                      -29-
<PAGE>

            7.3.2. Payment of Expenses. The Company shall pay all reasonable
      expenses of a single legal counsel representing any and all holders of
      Registrable Securities incurred in connection with each registration of
      Registrable Securities requested pursuant to this Section 7.3; provided,
      however, that if the Company is paying the expenses of counsel to the
      Initiating Bain Investors pursuant to Section 7.1.5 or counsel to the
      Initiating Stolberg Investors pursuant to Section 7.2.5, the Company shall
      not be required to pay expenses for any additional legal counsel to the
      holders of Registrable Securities.

            7.3.3. Additional Procedures. Holders of Shares participating in any
      Public Offering pursuant to this Section 7.3 shall take all such actions
      and execute all such documents and instruments that are reasonably
      requested by the Company to effect the sale of their Shares in such Public
      Offering, including, without limitation, being parties to the underwriting
      agreement entered into by the Company and any other selling shareholders
      in connection therewith and being liable in respect of the representations
      and warranties by, and the other agreements (including without limitation
      customary selling stockholder representations, warranties,
      indemnifications and "lock-up" agreements) for the benefit of the
      underwriters; provided, however, that (a) with respect to individual
      representations, warranties, indemnities and agreements of sellers of
      Shares in such Public Offering, the aggregate amount of such liability
      shall not exceed such holder's net proceeds from such offering and (b) to
      the extent selling stockholders give further representations, warranties
      and indemnities, then with respect to all other representations,
      warranties and indemnities of sellers of shares in such Public Offering,
      the aggregate amount of such liability shall not exceed the lesser of (i)
      such holder's pro rata portion of any such liability, in accordance with
      such holder's portion of the total number of Shares included in the
      offering or (ii) such holder's net proceeds from such offering.

      7.4. Certain Other Provisions.

            7.4.1. Underwriter's Cutback. In connection with any registration of
      shares, the underwriter may determine that marketing factors (including,
      without limitation, an adverse effect on the per share offering price)
      require a limitation of the number of shares to be underwritten.
      Notwithstanding any contrary provision of this Section 7 and subject to
      the terms of this Section 7.4.1, the underwriter may limit the number of
      shares which would otherwise be included in such registration by excluding
      any or all Registrable Securities from such registration (it being
      understood that the number of shares which the Company seeks to have
      registered in such registration shall not be subject to exclusion, in
      whole or in part, under this Section 7.4.1). Upon receipt of notice from
      the underwriter of the need to reduce the number of shares to be included
      in the registration, the Company shall advise all holders of the Company's
      securities that would otherwise be registered and underwritten pursuant
      hereto, and the number of shares of such securities, including Registrable
      Securities, that may be included in the

                                      -30-
<PAGE>

      registration shall be allocated in the following manner, unless the
      underwriter shall determine that marketing factors require a different
      allocation: shares, other than Registrable Securities, requested to be
      included in such registration by shareholders shall be excluded unless the
      right to register such shares exists on the date of this Agreement or
      unless the Company has, with the consent of the Majority Series C
      Investors, granted registration rights which are to be treated on an equal
      basis with Registrable Securities for the purpose of the exercise of the
      underwriter cutback; and, if a limitation on the number of shares is still
      required, the number of Registrable Securities and other shares of Common
      Stock that may be included in such registration shall be allocated among
      holders thereof in proportion, as nearly as practicable, to the respective
      amounts of Common Stock which each shareholder requested be registered in
      such registration. For purposes of any underwriter cutback, all Common
      Stock held by any holder of Registrable Securities which is a partnership
      or corporation shall also include any Common Stock held by the partners,
      retired partners, shareholders or affiliated entities of such holder, or
      the estates and family members of any such partners and retired partners
      and any trusts for the benefit of any of the foregoing persons, and such
      holder and other persons shall be deemed to be a single selling holder,
      and any pro rata reduction with respect to such selling holder shall be
      based upon the aggregate amount of Common Stock owned by all entities and
      individuals included in such selling holder, as defined in this sentence.
      No securities excluded from the underwriting by reason of the
      underwriter's marketing limitation shall be included in such registration.
      If any holder of Registrable Securities disapproves of the terms of the
      underwriting, it may elect to withdraw therefrom by written notice to the
      Company and the underwriter. The Registrable Securities so withdrawn shall
      also be withdrawn from registration.

            7.4.2. Other Actions. If and in each case when the Company is
      required to use its reasonable best efforts to effect a registration of
      any Registrable Securities as provided in this Section 7, the Company
      shall take appropriate and customary actions in furtherance thereof,
      including, without limitation: (a) promptly preparing and filing with the
      Commission a registration statement with respect to such Registrable
      Securities and using reasonable efforts to cause such registration
      statement to become effective; (b) preparing and filing with the
      Commission such amendments and supplements to such registration statement
      as may be required to comply with the Securities Act and to keep such
      registration statement effective for a period not to exceed 180 days from
      the date of effectiveness or such earlier time as the Registrable
      Securities covered by such registration statement shall have been disposed
      of in accordance with the intended method of distribution therefor or the
      expiration of the time when a prospectus relating to such registration is
      required to be delivered under the Securities Act; (c) furnishing to the
      holders of Registrable Securities such number of copies of a prospectus,
      including a preliminary prospectus, in conformity with the requirements of
      the Securities Act, and such other documents as they may reasonably
      request in order to facilitate the disposition of Registrable Securities
      owned by them; (d) notifying each holder of Registrable Securities covered
      by such registration statement at any time when

                                      -31-
<PAGE>

      a prospectus relating thereto is required to be delivered under the
      Securities Act of the happening of any event as a result of which the
      prospectus included in such registration statement, as then in effect,
      includes an untrue statement of a material fact or omits to state a
      material fact required to be stated therein or necessary to make the
      statements therein not misleading in light of the circumstances then
      existing and, at the request of the majority of the holders of Registrable
      Securities, preparing a supplement or amendment to such prospectus so
      that, as thereafter delivered to the purchasers of such Registrable
      Securities, such prospectus shall not contain an untrue statement of a
      material fact or omit to state any material fact required to be stated
      therein or necessary to make the statements therein not misleading; (e) in
      the event of an underwritten public offering, entering into and performing
      its obligations under an underwriting agreement, in usual and customary
      form, with the managing underwriter(s) of such offering; provided,
      however, that each holder of Registrable Securities participating in such
      underwriting shall also enter into and perform its obligations under such
      an agreement; (f) using its reasonable best efforts to furnish, on the
      date that such Registrable Securities are delivered to the underwriters
      for sale, if such securities are being sold through underwriters, (i) an
      opinion, dated as of such date, of the counsel representing the Company
      for the purposes of such registration, in form and substance as is
      customarily given to underwriters in an underwritten public offering and
      (ii) a letter, dated as of such date, from the independent certified
      public accountants of the Company, in form and substance as is customarily
      given by independent certified public accountants to underwriters in an
      underwritten public offering; (g) using its reasonable best efforts to
      register or qualify such Registrable Securities under the state securities
      or "blue sky" laws of such jurisdictions as the holders of Registrable
      Securities shall reasonably request; provided, however, that the Company
      shall not be obligated to file any general consent to service of process
      or to qualify as a foreign corporation in any jurisdiction in which it is
      not so qualified or to subject itself to taxation in respect of doing
      business in any jurisdiction in which it would not otherwise be so
      subject; (h) causing all Registrable Securities to be listed on each
      securities exchange on which similar securities issued by the Company are
      then listed and, if not so listed, to be listed on the NASD automated
      quotation system and, if listed on the NASD automated quotation system,
      using its reasonable best efforts to secure designation of all Registrable
      Securities covered by such registration statement as a NASDAQ "national
      market system security" within the meaning of Rule 11Aa2-1 of the
      Commission or, failing that, securing NASDAQ authorization for such
      Registrable Securities and, without limiting the generality of the
      foregoing, arranging for at least two market makers to register as such
      with respect to such Registrable Securities with the NASD; (i) making
      available for inspection by any seller of Registrable Bain Securities or
      Registrable Stolberg Securities, any underwriter participating in any
      disposition pursuant to such registration statement and any attorney,
      accountant or other agent retained by any such seller or underwriter, all
      financial and other records, pertinent corporate documents and properties
      of the Company, and causing the Company's officers, directors, employees
      and independent accountants to supply all information

                                      -32-
<PAGE>

      reasonably requested by any such seller, underwriter, attorney, accountant
      or agent in connection with such registration statement, in each case
      subject to the requirement that recipients execute appropriate
      confidentiality agreements; and (j) otherwise cooperating reasonably with,
      and take such customary actions as may reasonably be requested by the
      holders of Registrable Securities in connection with, such registration.

            7.4.3. Selection of Underwriters and Counsel. The underwriters to be
      retained in connection with any Public Offering shall be selected by the
      Board with the joint consent of the Majority Stolberg Investors and the
      Majority Bain Investors which in each case shall not be unreasonably
      withheld or, in the case of an offering following a request therefor under
      Section 7.1.1, the Initiating Bain Investors with the consent of the Board
      which shall not be unreasonably withheld or, in the case of an offering
      following a request therefor under Section 7.2.1, except as set forth in
      Section 7.2.7, the Initiating Stolberg Investors with the consent of the
      Board which shall not be unreasonably withheld. The legal counsel to be
      retained in connection with any Public Offering shall be selected by the
      Board or, in the case of an offering following a request therefor under
      Section 7.1.1, the Initiating Bain Investors or, in the case of an
      offering following a request therefor under Section 7.2.1, the Initiating
      Stolberg Investors.

            7.4.4. Lock-Up. Without the prior written consent of the
      underwriters managing any Public Offering, for a period beginning seven
      days immediately preceding and ending on the 180th day following the
      effective date of the registration statement used in connection with such
      offering, no holder of Shares (whether or not a selling shareholder
      pursuant to such registration statement) shall (a) offer, pledge, sell,
      contract to sell, sell any option or contract to purchase, purchase any
      option or contract to sell, grant any option, right or warrant to
      purchase, lend, or otherwise Transfer, directly or indirectly, any shares
      of Common Stock or any securities convertible into or exercisable or
      exchangeable for such Common Stock or (b) enter into any swap or other
      arrangement that transfers to another, in whole or in part, any of the
      economic consequences of ownership of Common Stock, whether any such
      transaction described in clause (a) or (b) above is to be settled by
      delivery of such Common Stock or such other securities, in cash or
      otherwise; provided, however, that the foregoing restrictions shall not
      apply to (i) transactions relating to shares of Common Stock or other
      securities acquired in open market transactions after the completion of
      the Initial Public Offering, (ii) Transfers to a Permitted Transferee of
      such holder in accordance with the terms of this Agreement or (iii)
      conversions of shares of Common Stock into other classes of Common Stock
      without change of holder.

      7.5. Indemnification and Contribution.

            7.5.1. Indemnities of the Company. In the event of any registration
      of any Registrable Securities or other debt or equity securities of the
      Company or any of its subsidiaries under the Securities Act pursuant to
      this Section 7 or otherwise, and in

                                      -33-
<PAGE>

      connection with any registration statement or any other disclosure
      document produced by or on behalf of the Company or any of its
      subsidiaries including, without limitation, reports required and other
      documents filed under the Exchange Act, and other documents pursuant to
      which any debt or equity securities of the Company or any of its
      subsidiaries are sold (whether or not for the account of the Company or
      its subsidiaries), the Company will, and hereby does, and will cause each
      of its subsidiaries, jointly and severally, to indemnify and hold harmless
      each seller of Registrable Securities, any Person who is or might be
      deemed to be a controlling Person of the Company or any of its
      subsidiaries within the meaning of Section 15 of the Securities Act or
      Section 20 of the Exchange Act, their respective direct and indirect
      partners, advisory board members, directors, officers, trustees, members
      and shareholders, and each other Person, if any, who controls any such
      seller or any such holder within the meaning of Section 15 of the
      Securities Act or Section 20 of the Exchange Act (each such person being
      referred to herein as a "Covered Person"), against any losses, claims,
      damages or liabilities (or actions or proceedings in respect thereof),
      joint or several, to which such Covered Person may be or become subject
      under the Securities Act, the Exchange Act, any other securities or other
      law of any jurisdiction, the common law or otherwise, insofar as such
      losses, claims, damages or liabilities (or actions or proceedings in
      respect thereof) arise out of or are based upon (i) any untrue statement
      or alleged untrue statement of any material fact contained or incorporated
      by reference in any registration statement under the Securities Act, any
      preliminary prospectus or final prospectus included therein, or any
      related summary prospectus, or any amendment or supplement thereto, or any
      document incorporated by reference therein, or any other such disclosure
      document (including without limitation reports and other documents filed
      under the Exchange Act and any document incorporated by reference therein)
      or other document or report, (ii) any omission or alleged omission to
      state therein a material fact required to be stated therein or necessary
      to make the statements therein not misleading or (iii) any violation or
      alleged violation by the Company or any of its subsidiaries of any
      federal, state, foreign or common law rule or regulation applicable to the
      Company or any of its subsidiaries and relating to action or inaction in
      connection with any such registration, disclosure document or other
      document or report, and will reimburse such Covered Person for any legal
      or any other expenses incurred by it in connection with investigating or
      defending any such loss, claim, damage, liability, action or proceeding;
      provided, however, that neither the Company nor any of its subsidiaries
      shall be liable to any Covered Person in any such case to the extent that
      any such loss, claim, damage, liability, action or proceeding arises out
      of or is based upon an untrue statement or alleged untrue statement or
      omission or alleged omission made in such registration statement, any such
      preliminary prospectus, final prospectus, summary prospectus, amendment or
      supplement, incorporated document or other such disclosure document or
      other document or report, in reliance upon and in conformity with written
      information furnished to the Company or to any of its subsidiaries through
      an instrument duly executed by such Covered Person specifically stating
      that it is for use in the preparation

                                      -34-
<PAGE>

      thereof or specifically furnished for use in the preparation thereof. The
      indemnities of the Company and of its subsidiaries contained in this
      Section 7.5.1 shall remain in full force and effect regardless of any
      investigation made by or on behalf of such Covered Person and shall
      survive any transfer of securities.

            7.5.2. Indemnities to the Company. In the event of any registration
      of any Registrable Securities under the Securities Act pursuant to this
      Section 7, each seller of Registrable Securities, severally and not
      jointly, shall indemnify and hold harmless the Company and any of its
      subsidiaries, each director of the Company or any of its subsidiaries,
      each officer of the Company or any of its subsidiaries who shall sign such
      registration statement and each other Person (other than such seller), if
      any, who controls the Company and any of its subsidiaries within the
      meaning of Section 15 of the Securities Act or Section 20 of the Exchange
      Act and each other prospective seller of such securities with respect to
      any statement in or omission from such registration statement, any
      preliminary prospectus, final prospectus or summary prospectus included
      therein, or any amendment or supplement thereto, or any other disclosure
      document (including, without limitation, reports and other documents filed
      under the Exchange Act or any document incorporated therein) or other
      document or report, if such statement or omission was made in reliance
      upon and in conformity with written information furnished to the Company
      or any of its subsidiaries through an instrument executed by such seller
      specifically stating that it is for use in the preparation or specifically
      furnished for use in the preparation of such registration statement,
      preliminary prospectus, final prospectus, summary prospectus, amendment or
      supplement, incorporated document or other document or report. Such
      indemnity shall remain in full force and effect regardless of any
      investigation made by or on behalf of the Company, any of its subsidiaries
      or any such director, officer or controlling Person and shall survive any
      transfer of securities.

            7.5.3. Contribution. If the indemnification provided for in Section
      7.5.1 or 7.5.2 hereof is unavailable to a party that would have been
      entitled to indemnification pursuant to the foregoing provisions of this
      Section 7.5 (an "Indemnitee") in respect of any losses, claims, damages or
      liabilities (or actions or proceedings in respect thereof) referred to
      therein, then each party that would have been an indemnifying party
      thereunder shall, in lieu of indemnifying such Indemnitee, contribute to
      the amount paid or payable by such Indemnitee as a result of such losses,
      claims, damages or liabilities (or actions or proceedings in respect
      thereof) in such proportion as is appropriate to reflect the relative
      fault of such indemnifying party on the one hand and such Indemnitee on
      the other in connection with the statements or omissions which resulted in
      such losses, claims, damages or liabilities (or actions or proceedings in
      respect thereof). The relative fault shall be determined by reference to,
      among other things, whether the untrue or alleged untrue statement of a
      material fact or the omission or alleged omission to state a material fact
      relates to information supplied by such indemnifying party or such
      Indemnitee and the parties' relative intent,

                                      -35-
<PAGE>

      knowledge, access to information and opportunity to correct or prevent
      such statement or omission. The parties agree that it would not be just or
      equitable if contribution pursuant to this Section 7.5.3 were determined
      by pro rata allocation or by any other method of allocation which does not
      take account of the equitable considerations referred to in the preceding
      sentence. The amount paid or payable by a contributing party as a result
      of the losses, claims, damages or liabilities (or actions or proceedings
      in respect thereof) referred to above in this Section 7.5.3 shall include
      any legal or other expenses reasonably incurred by such Indemnitee in
      connection with investigating or defending any such action or claim. No
      Person guilty of fraudulent misrepresentation (within the meaning of
      Section 11(f) of the Securities Act) shall be entitled to contribution
      from any Person who was not guilty of such fraudulent misrepresentation.

            7.5.4. Limitation on Liability of Holders of Registrable Securities.
      The liability of each holder of Registrable Securities in respect of any
      indemnification or contribution obligation of such holder arising under
      this Section 7.5 shall not in any event exceed an amount equal to the net
      proceeds to such holder (after deduction of all underwriters' discounts
      and commissions) from the disposition of the Registrable Securities
      disposed of by such holder pursuant to such registration.

      7.6. Limitations on Subsequent Registration Rights. From and after the
date of this Agreement, the Company shall not, without the prior written consent
of the Majority Series C Investors, enter into any agreement with any holder or
prospective holder of any securities of the Company relating to registration
rights unless such agreement includes: (a) to the extent the agreement would
allow such holder or prospective holder to include such securities in any
registration filed under Section 7.1, 7.2 or 7.3 hereof, a provision that such
holder or prospective holder may include such securities in any such
registration only to the extent that the inclusion of its securities will not
reduce the amount of the Registrable Securities of the Bain Investors or
Stolberg Investors which would otherwise be included; and (b) no provision which
would allow such holder or prospective holder to make a demand registration
which could result in such registration statement being declared effective prior
to the earlier of the dates or events set forth in Section 7.1.1 or 7.2.1.

8. REVALUATION OF SHARE PRICES

      8.1. Look-Back by Company, etc,. Notwithstanding anything contained in
this Agreement to the contrary, if (i) Shares are purchased pursuant to Section
4.1 or 5.1 from a Minority Stockholder or its Permitted Transferees (the
"Subject Minority Shares") and such Minority Stockholder is or was ever an
employee of the Company or any of its subsidiaries (or related to such employee
or director), (ii) the purchaser of the Subject Minority Shares was the Company,
any of the Stolberg Investors or any of the Bain Investors, and (iii) the
purchase price paid for the Subject Minority Shares exceeded $100,000, then the
Stolberg Investors, the Bain Investors and/or the Company will have the option
(the "Look-Back Option"), exercisable

                                      -36-
<PAGE>

by written notice to such Minority Stockholder at any time within the one year
period following the notice of exercise of an option to sell or purchase the
Subject Minority Shares pursuant to Section 4.1 or 5.1 (the date of notice of
exercise of the Look-Back Option is referred to herein as the "Look-Back Date"),
to require that the Contract Price of the Subject Minority Shares be
redetermined as of the Look-Back Date (the "Look-Back Valuation") by the same
Appraiser who determined the Contract Price of the Subject Minority Shares (or
if no Appraiser was used, such Appraiser shall be chosen in the manner described
in the definition of Contract Price in Section 13.2). The fees and expenses of
such Appraiser shall be borne by the purchaser. If the Look-Back Option is
exercised, the following shall apply:

            8.1.1. If the Look-Back Valuation is an amount which is less than
      90% of the purchase price paid by the Stolberg Investors, the Bain
      Investors and/or the Company for the Subject Minority Shares, the purchase
      price paid to such Minority Stockholder and/or any of his Permitted
      Transferees will be reduced to an amount equal to the Look-Back Valuation.
      Any such reduction in the purchase price for the Subject Minority Shares
      shall be deducted in equal installments over the remaining term of any
      promissory note issued in connection with the purchase of the Subject
      Minority Shares and, if no such promissory note was issued and remains
      outstanding, such reduction shall be due and payable immediately by the
      Minority Stockholder and/or his Permitted Transferees to the purchaser in
      cash. Any amounts not paid by the Minority Stockholder and/or his
      Permitted Transferees when due shall either (i) bear interest at a fixed
      rate per annum from the due date to the date of payment at the lesser of
      12% or the Prime Rate in effect as of the due date or (ii) at the option
      of the Stolberg Investors, the Bain Investors and/or the Company, as
      applicable, be paid by surrendering a number of Shares with a value based
      on the Look-Back Valuation equal to the amount due from the Minority
      Stockholders and/or his Permitted Transferees.

            8.1.2. If the Look-Back Valuation equals or exceeds 90% of the
      purchase price paid to such Minority Stockholder and/or his Permitted
      Transferees for the Subject Minority Shares, the purchase price for the
      Subject Minority Shares will not be changed and, in addition, the interest
      rate on any outstanding promissory note issued to the Minority Stockholder
      and/or his Permitted Transferees in connection with the purchase of such
      Subject Minority Shares will be increased by 100 basis points effective as
      of the Look-Back Date.

      8.2 Look-Back by Minority Stockholder. Notwithstanding anything contained
in this Agreement to the contrary, if (i) Shares are purchased from any Minority
Stockholder and/or his Permitted Transferees pursuant to Section 5.1.1 or 5.1.2
(such Shares purchased pursuant to Section 5.1.1 or 5.1.2 (specifically
excluding, however, any shares of Stock purchased upon termination of such
Minority Stockholder's employment for Cause) are referred to herein as the
"Employee Stock"), and (ii) there is a Sale of the Company within the one year
period following the date of notice of exercise of such option to purchase, such
Minority Stockholder shall have the right and option, exercisable by written
notice to the

                                      -37-
<PAGE>

purchaser of the Employee Stock within 15 days after notice of such Sale has
been provided to the Minority Stockholder, to require that the Contract Price
for the Employee Stock be redetermined as of the date of Sale based on the
consideration received in the Sale and determined as if the Employee Stock were
issued and outstanding on the date of Sale. At the time notice of the Sale is
provided to the Minority Stockholder, the Minority Stockholder shall also be
advised of the terms, conditions and price received in connection with the Sale.
The Minority Stockholder shall have the right to review those portions of the
Sale documentation relating to the determination, payment and any adjustment of
the consideration paid in connection with such Sale; provided, however, that
such Minority Stockholder shall first agree to treat all such information as
confidential information and shall sign such confidentiality agreement as may be
reasonably requested with respect thereto. If the consideration in the Sale is
for other than cash and the parties cannot agree on the redetermined Contract
Price, such redetermined Contract Price shall be determined by the same
Appraiser who originally determined the Contract Price (or, if no Appraiser was
used, such Appraiser shall be chosen in the manner described in the definition
of Contract Price in Section 13.2). In the event the redetermined Contract price
for the Employee Stock is higher than the price paid to such Minority
Stockholder and/or his Permitted Transferees for the Employee Stock, then the
excess shall be paid to such Minority Stockholder and/or his Permitted
Transferees on the same terms and conditions as the remaining Stockholders of
the Company receive amounts payable to them in connection with the Sale. The
cost of any re-appraisal shall be borne by the Minority Stockholder.

      8.3. Re-evaluation Upon Initial Public Offering Notwithstanding anything
in this Agreement to the contrary, if (i) Employee Stock is purchased, and (ii)
there is an Initial Public Offering of the Company within the one year period
following the date of notice of exercise of the option to purchase such Employee
Stock, the Company shall give written notice of the proposed Initial Public
Offering to such Minority Stockholder not less than 30 days prior to the
proposed effective date of such Initial Public Offering. Upon receipt of such
notice, such Minority Stockholder and/or his Permitted Transferees shall each
have the right and option, exercisable by written notice delivered to the
Company and the purchaser of the Employee Stock within 15 days after receipt of
notice of the proposed Initial Public Offering, to rescind the sale of the
Employee Stock. If the Minority Stockholder and its Permitted Transferees so
elect to rescind the sale of the Employee Stock, and contingent upon the
effectiveness of the Initial Public Offering, the Minority Stockholder and his
Permitted Transferees shall remit to the purchaser of the Employee Stock all
consideration received for such Employee Stock and, upon receipt of such funds,
the Minority Stockholder and/or his Permitted Transferees shall receive a return
of the Employee Stock. Notwithstanding the foregoing, if a Minority Stockholder
or its Permitted Transferee elects to rescind a sale of Employee Stock to a Bain
Investor or a Stolberg Investor pursuant to this Section 8.3 and (i) such
recision would give rise to taxable income and (ii) the Bain Investor or
Stolberg Investor who is required to rescind the sale of Employee Stock so
notifies the Minority Stockholder (or Permitted Transferee) electing to exercise
the right of recision prior to the time of such recision, which notice shall set
forth the Make-Whole Amount (as defined below), the Minority

                                      -38-
<PAGE>

Stockholder (or Permitted Transferee) in question shall have the option either
(a) of electing to rescind the notice of recision or (b) proceeding with the
recision so long as prior to such recision the Minority Stockholder (or
Permitted Transferee) in question pays to the Bain Investor or Stolberg Investor
in question an amount (the "Make-Whole Amount") which after deducting all taxes
payable as a result of the receipt thereof would equal the taxes on the taxable
income referred to above (both such taxes to be calculated at the maximum
marginal rate applicable to individuals).

9. CERTAIN ISSUANCES AND TRANSFERS, ETC. Notwithstanding any other provision of
this Agreement, (a) Shares Transferred in a Public Offering or, after the
Initial Public Offering, pursuant to Rule 144 shall be conclusively deemed
thereafter not to be Series C Shares, Bain Shares, Stolberg Shares or Minority
Shares, as applicable, under this Agreement and not to be subject to any of the
provisions hereof or entitled to the benefit of any of the provisions hereof,
and (b) any Shares Transferred or acquired other than as contemplated in clause
(a) shall upon such Transfer or acquisition continue to be deemed for all
purposes hereof to be Series C Shares, Bain Shares, Stolberg Shares or Minority
Shares, as applicable, under this Agreement and no such Transfer shall be
effective unless the transferee of such Shares has delivered to the Company a
written acknowledgment and agreement in form and substance reasonably
satisfactory to the Company that such Shares to be received by such transferee
shall remain Series C Shares, Bain Shares, Stolberg Shares or Minority Shares
hereunder, as the case may be, and shall continue to be subject to all of the
provisions of this Agreement and that such transferee shall be bound by and a
party to this Agreement as the holder of Series C Shares, Bain Shares, Stolberg
Shares or Minority Shares, as the case may be, hereunder.

10. REMEDIES.

      10.1. Generally. The Company and each holder of Shares shall have all
remedies available at law, in equity or otherwise in the event of any breach or
violation of this Agreement or any default hereunder by the Company or any
holder of Shares. The parties acknowledge and agree that in the event of any
breach of this Agreement, in addition to any other remedies which may be
available, each of the parties hereto shall be entitled to specific performance
of the obligations of the other parties hereto and, in addition, to such other
equitable remedies (including, without limitation, preliminary or temporary
injunctive relief) as may be appropriate in the circumstances.

      10.2. Deposit. Without limiting the generality of Section 10.1, if any
holder of Shares fails to deliver to the purchaser thereof the certificate or
certificates evidencing Shares to be Sold pursuant to Section 3 or 5 hereof,
such purchaser may, at its option, in addition to all other remedies it may
have, deposit the purchase price (including any promissory note constituting all
or any portion thereof) for such Shares with any national bank or trust company
having combined capital, surplus and undivided profits in excess of One Hundred
Million Dollars ($100,000,000) (the "Escrow Agent") and the Company shall cancel
on its books the

                                      -39-
<PAGE>

certificate or certificates representing such Shares and thereupon all of such
holder's rights in and to such Shares shall terminate. Thereafter, upon delivery
to such purchaser by such holder of the certificate or certificates evidencing
such Shares (duly endorsed, or with stock powers duly endorsed, for transfer,
with signature guaranteed, free and clear of any liens or encumbrances, and with
any stock transfer tax stamps affixed), such purchaser shall instruct the Escrow
Agent to deliver the purchase price (without any interest from the date of the
closing to the date of such delivery, any such interest to accrue to such
purchaser) to such holder.

11. LEGENDS.

      11.1. Restrictive Legend. Each certificate representing Shares shall have
the following legend endorsed conspicuously thereupon:

            The voting of the shares of stock represented by this certificate,
      and the sale, encumbrance or other disposition thereof, are subject to the
      provisions of a Stockholders Agreement to which the issuer and certain of
      its stockholders are party, a copy of which may be inspected at the
      principal office of the issuer or obtained from the issuer without charge.

      Any person who acquires Shares which are not subject to all or part of the
terms of this Agreement shall have the right to have such legend (or the
applicable portion thereof) removed from certificates representing such Shares.

      11.2. 1933 Act Legends. Each certificate representing Shares shall have
the following legend endorsed conspicuously thereupon:

            The securities represented by this certificate were issued in a
      private placement, without registration under the Securities Act of 1933,
      as amended (the "Act"), and may not be sold, assigned, pledged or
      otherwise transferred in the absence of an effective registration under
      the Act covering the transfer or an opinion of counsel, satisfactory to
      the issuer, that registration under the Act is not required.

      11.3. Stop Transfer Instruction. The Company will instruct any transfer
agent not to register the Transfer of any Shares until the conditions specified
in the foregoing legends are satisfied.

      11.4. Termination of 1933 Act Legend. The requirement imposed by Section
11.2 hereof shall cease and terminate as to any particular Shares (a) when, in
the opinion of Ropes & Gray, or other counsel reasonably acceptable to the
Company, such legend is no longer required in order to assure compliance by the
Company with the Securities Act or (b) when such Shares have been effectively
registered under the Securities Act or transferred pursuant to

                                      -40-
<PAGE>

Rule 144. Wherever (x) such requirement shall cease and terminate as to any
Shares or (y) such Shares shall be transferable under paragraph (k) of Rule 144,
the holder thereof shall be entitled to receive from the Company, without
expense, new certificates not bearing the legend set forth in Section 11.2
hereof.

12. AMENDMENT, TERMINATION, ETC.

      12.1. Oral Modifications. This Agreement may not be orally amended,
modified, extended or terminated, nor shall any oral waiver of any of its terms
be effective.

      12.2. Written Modifications. This Agreement may be amended, modified,
extended or terminated, and the provisions hereof may be waived, only by an
agreement in writing signed by the Company and the Majority Stockholders;
provided, however, that:

            12.2.1. the consent of the Majority Series C Investors shall be
      required for any amendment, modification, extension, termination or waiver
      which has a material adverse effect on the rights of the holders of Series
      C Shares as such under this Agreement;

            12.2.2. the consent of the Majority Stolberg Investors shall be
      required for any amendment, modification, extension, termination or waiver
      which has a material adverse effect on the rights of the holders of
      Stolberg Shares as such under this Agreement;

            12.2.3. the consent of the holders of a majority of the Minority
      Shares then outstanding shall be required for (i) any amendment,
      modification, extension, termination or waiver of Section 3.1 which would
      eliminate the rights of the holders of Minority Shares to participate in a
      Sale under Section 3.1 or any amendment, modification, extension,
      termination or waiver of Section 3.1 which would disproportionately
      materially adversely affect the rights of the holders of Minority Shares
      vis-a-vis the rights of the holders of Shares other than Minority Shares,
      (ii) any amendment, modification, extension, termination or waiver of
      Section 7.3 which would eliminate the rights of the holders of Minority
      Shares to participate in a registration under Section 7.3 or any
      amendment, modification, extension, termination or waiver of Section 7.3
      which would disproportionately materially adversely affect the rights of
      the holders of Minority Shares vis-a-vis the rights of the holders of
      Shares other than Minority Shares, (iii) any amendment, modification,
      extension, termination or waiver of Section 3.2.2, 3.3.2 or 3.4.2 which
      would disproportionately materially adversely affect the rights of the
      holders of Minority Shares vis-a-vis the rights of the holders of Shares
      other than Minority Shares, and (iv) any amendment, modification,
      extension, termination or waiver of Section 4.2, 5 or 8;

                                      -41-
<PAGE>

            12.2.4. the consent of the holders of a majority of the Shares held
      by the Cady Stockholders shall be required for any amendment,
      modification, extension, termination or waiver of Section 5.4; and

            12.2.5. the consent of the holders of a majority of the Shares held
      by the Participation Offerees shall be required for any amendment,
      modification, extension, termination or waiver of Section 6.

      Each such amendment, modification, extension, termination and waiver shall
be binding upon each party hereto and each holder of Shares subject hereto. In
addition, each party hereto and each holder of Shares subject hereto may waive
any right hereunder by an instrument in writing signed by such party or holder.

      12.3. Termination. No termination under this Agreement shall relieve any
Person of liability for breach prior to termination.

13. DEFINITIONS. For purposes of this Agreement:

      13.1. Certain Matters of Construction. In addition to the definitions
referred to or set forth below in this Section 13:

            (a) The words "hereof", "herein", "hereunder" and words of similar
      import shall refer to this Agreement as a whole and not to any particular
      Section or provision of this Agreement, and reference to a particular
      Section of this Agreement shall include all subsections thereof;

            (b) Definitions shall be equally applicable to both nouns and verbs
      and the singular and plural forms of the terms defined; and

            (c) The masculine, feminine and neuter genders shall each include
      the other.

      13.2. Definitions. The following terms shall have the following meanings:

            "AAA" shall have the meaning set forth in Section 5.1.4.

            "Adverse Claim" shall have the meaning set forth in Section 8-302 of
      the applicable Uniform Commercial Code.

            "Affiliate" shall mean, with respect to any specified Person, (a)
      any other Person which directly or indirectly through one or more
      intermediaries controls, or is controlled by, or is under common control
      with, such specified Person (for the purposes of this definition,
      "control" (including, with correlative meanings, the terms "controlling,"
      "controlled by" and "under common control with"), as used with respect

                                      -42-
<PAGE>

      to any Person, means the possession, directly or indirectly, of the power
      to direct or cause the direction of the management or policies of such
      Person, whether through the ownership of voting securities, by agreement
      or otherwise) and (b) each Person of which such specified Person or an
      Affiliate (as defined in clause (a) above) thereof shall, directly or
      indirectly, beneficially own at least five percent of the outstanding
      capital stock or other evidence of beneficial interest at such time. With
      respect to any natural Person, "Affiliate" shall also include without
      limitation any Member of the Immediate Family of such natural Person.

            "Affiliated Fund" shall mean each corporation, trust, limited
      liability company, general or limited partnership or other entity under
      common control with any Bain Investor or Stolberg Investor, as the case
      may be.

            "Agreement" shall have the meaning set forth in the Preamble.

            "Appraisal Process" shall mean the following process: within three
      business days after the effectiveness of the Drag Along Notice, the
      Participating Sellers shall, by majority vote, select a representative
      (the "Representative") to meet with the Prospective Selling Investors. If
      no such representative has been selected within such three business day
      period, then the Company shall serve as the Representative. The
      Prospective Selling Investors shall meet with the Representative to
      discuss the per share price to be paid in the proposed Sale as set forth
      in the Drag Along Notice. If the Representative agrees to the per share
      price set forth in the Drag Along Notice, then the Prospective Selling
      Investors may effect the proposed Sale pursuant to Section 3.2, 3.3 or
      3.4, as applicable. If the Representative does not agree to the per share
      price set forth in the Drag Along Notice within three business days after
      the first meeting between the Prospective Selling Investors and the
      Representative, then the Representative and the Prospective Selling
      Investors shall each select an Appraiser within three business days and
      the two Appraisers shall each make an independent appraisal as to the per
      share fair value of the Shares to be sold in the proposed Sale. If the
      average of the two per share fair values determined by the Appraisers is
      less than or equal to the per share price as set forth in the Drag Along
      Notice, then the Prospective Selling Investors may effect the proposed
      Sale pursuant to Section 3.2, 3.3 or 3.4, as applicable, at the per share
      price set forth in the Drag Along Notice. If the average of the two per
      share fair values determined by the Appraisers is greater than the per
      share price as set forth in the Drag Along Notice, then the Prospective
      Selling Investors may either effect the proposed Sale pursuant to Section
      3.2, 3.3 or 3.4, as applicable, at such average per share fair value or
      request that a third appraiser be selected, in which case the Prospective
      Selling Investors and the Representative shall attempt to agree on a third
      Appraiser. If, within three business days, the Prospective Selling
      Investors and the Representative cannot agree on a third Appraiser, then
      the two Appraisers selected by each of the Prospective Selling Investors
      and the Representative shall select a third Appraiser who shall make an
      independent appraisal as to the per share fair value of the

                                      -43-
<PAGE>

      Shares to be sold in the proposed Sale. An average shall be taken of the
      two out of three per share fair values determined by the Appraisers that
      are closest together, or, if the three per share fair values are
      equidistant from one another, an average shall be taken of all three per
      share fair values. If such average is less than or equal to the per share
      price as set forth in the Drag Along Notice, then the Prospective Selling
      Investors may effect the proposed Sale pursuant to Section 3.2, 3.3 or
      3.4, as applicable, at such average per share fair value. If such average
      is greater than the per share price as set forth in the Drag Along Notice,
      then the Prospective Selling Investors may either effect the proposed Sale
      pursuant to Section 3.2, 3.3 or 3.4, as applicable, at such average per
      share fair value or elect not to proceed with the proposed Sale pursuant
      to Section 3.2, 3.3 or 3.4, as applicable. The costs and expenses of each
      of the Appraisers will be borne by the Company.

            "Appraiser" shall mean an independent business appraiser or
      investment banker of recognized standing with knowledge and experience
      related to the industry in which the Company operates.

            "Bain" shall have the meaning set forth in the Preamble.

            "Bain Investors" shall have the meaning set forth in the Preamble.

            "Bain Shares" shall mean (a) all shares of Common Stock originally
      issued to, or issued with respect to shares originally issued to, or held
      by, the Bain Investors, whenever issued, including, without limitation,
      all shares of Common Stock issued pursuant to the exercise of any Options
      and all shares of Common Stock issued upon conversion of any shares of
      Preferred Stock, (b) all shares of Preferred Stock originally issued to,
      or issued with respect to shares originally issued to, or held by, the
      Bain Investors, whenever issued (treating such shares of Preferred Stock
      as a number of Shares equal to the number of Equivalent Shares represented
      by such shares of Preferred Stock for all purposes of this Agreement
      except as otherwise specifically set forth herein), and (c) all Options
      originally granted or issued to the Bain Investors (treating such Options
      as a number of Shares equal to the number of Equivalent Shares represented
      by such Options for all purposes of this Agreement except as otherwise
      specifically set forth herein).

            "Bankruptcy Code" shall mean 11 U.S.C. ss.101 et seq., or any
      successor provisions thereto.

            "Base Price" of any Share, as of any date, shall mean an amount
      equal to the lesser of (i) the Contract Price of such Share as of such
      date, or (ii) the amount originally paid to the Company for such Share by
      the original holder upon issuance thereof, increased from the date of
      issuance through the date in question at a non-compounded per annum rate
      of six percent.

                                      -44-
<PAGE>

            "Board" shall have the meaning set forth in Section 2.1.

            "Cady Stockholder" shall mean Paul D. Cady, Daniel P. Cady, David G.
      Cady and Kim Cady, Susan E. Rivera and Thomas Rivera, and Steven M. Simon.

            "Cause" shall be deemed to exist if a Minority Stockholder: (i)
      violates any federal, state or local law or commits any act of dishonesty
      involving the Company or any of its subsidiaries if such violation or act
      (x) causes material damages to the Company or any of its subsidiaries, or
      (y) in the reasonable judgment of the Board, would materially and
      adversely affect the Minority Stockholder's ability to perform his duties
      for the Company or any of its subsidiaries; (ii) solicits or contacts
      customers of the Company or any of its subsidiaries, becomes employed by a
      competitor of the Company or any of its subsidiaries or actively and
      knowingly assists in the establishment or operation of any competitive
      business in violation of any agreement with the Company or any of its
      subsidiaries concerning noncompetition; (iii) breaches any agreement with
      the Company or any of its subsidiary concerning noncompetition in a manner
      other than as described in the foregoing clause (ii) and fails to
      discontinue the offending conduct within ten days following receipt of
      notice thereof; (iv) knowingly or intentionally breaches any
      confidentiality agreement with the Company or any of its subsidiaries; (v)
      unintentionally breaches any confidentiality agreement with the Company or
      any of its subsidiaries and continues to engage in behavior in violation
      of such confidentiality agreement following receipt of notice of such
      breach; (v) commits an act of willful misconduct in the course of his
      employment with the Company or any of its subsidiaries that causes
      material damage to the Company or any of its Subsidiaries; (vi) commits
      any act of gross negligence in the course of his employment or breaches in
      any material respect any of the terms of his employment with the Company
      or any of its subsidiaries if the Minority Stockholder fails to
      discontinue the offending conduct within ten days following receipt of
      notice thereof and such act of gross negligence or breach has caused
      material damage to the Company or any of its subsidiaries. Nothing
      contained in this definition or this Agreement shall be deemed to affect
      the right of the Company or any of its Subsidiaries to discipline or
      discharge a Minority Stockholder and this Cause definition shall be used
      solely for purposes of determining the price to be paid for Shares held by
      a Minority Stockholder upon termination of his employment which are
      purchased in accordance with the terms of this Agreement.

            "CCI Stock" shall have the meaning set forth in Section 5.4.

            "Change of Control" shall mean any change in the ownership of the
      capital stock of the Company if, immediately after giving effect thereto,
      the Stolberg Investors, the Bain Investors and the Minority Stockholders
      and their Affiliates shall own less than ten percent of the Equivalent
      Shares.

                                      -45-
<PAGE>

            "Closing" shall have the meaning set forth in Section 1.1.

            "Code" shall have the meaning set forth in Section 5.4.

            "Commission" shall mean the Securities and Exchange Commission.

            "Common Stock" shall have the meaning set forth in the recitals.

            "Company" shall have the meaning set forth in the Preamble.

            "Contract Price," as of any date, of any Share subject to purchase
      hereunder, shall mean the aggregate price at which a purchaser and seller
      would buy and sell such Share on such date and shall be determined as
      follows:

            (a) The seller and the purchaser(s) will attempt to agree on the
      Contract Price. For those purchaser(s) with whom the seller is able to
      agree on the Contract Price, the amount so agreed will be the Contract
      Price.

            (b) If the seller and any purchaser(s) are unable to agree on the
      Contract Price for such Shares, the Contract Price shall be determined by
      an Appraiser mutually acceptable to the seller and such purchaser(s). If
      the parties cannot agree on an Appraiser, the purchaser(s) and the seller
      shall each select an Appraiser and the two Appraisers so selected shall
      select the Appraiser who shall determine the Contract Price and the
      determination of such Appraiser shall be binding and conclusive on such
      parties for purposes hereof. In appraising the Shares subject to purchase,
      the Appraiser shall utilize a valuation method based upon the market
      values of publicly-held companies which are comparable to the Company. The
      Appraiser shall apply such discount as the Appraiser deems appropriate
      (but not to exceed 27.5%) for lack of marketability but shall not apply
      any discount for minority interests. The seller shall bear one-half of the
      costs and expenses of such Appraiser or, if less, an amount equal to ten
      percent of the aggregate Contract Price (as determined by such Appraiser)
      for all Shares available for purchase from the seller and the purchaser(s)
      shall bear the balance of the costs and expenses of such Appraiser.

            (c) The Contract Price of the Shares subject to repurchase hereunder
      shall be determined as of (i) the date an Offer is made in the event of a
      purchase under Section 4.1, or (ii) the date of notice of exercise of an
      option to purchase or sell such Shares (as the case may be) in the event
      of a purchase pursuant to Section 5; provided, however, that in the event
      a purchase or sale option is deferred in accordance with Section 5.2, the
      date of determination shall be the date of notice of exercise of an option
      on or after the Waiver of Deferral Notice is delivered.

                                      -46-
<PAGE>

            "Contract Terms" with respect to Shares purchased pursuant hereto
      shall mean the following terms of payment:

            (a) The purchaser will be required to pay the purchase price for
      such Shares in cash or other immediately available funds as of the date of
      purchase if the aggregate purchase price for such Shares is $100,000 or
      less and, if the Company is the purchaser, such cash payment is permitted
      by the Company's Senior Lenders.

            (b) If the purchase price for such Shares exceeds $100,000 or the
      Company is the purchaser and is prohibited by its Senior Lenders from
      making such cash payment, the purchaser will pay the purchase price for
      such Shares by delivering to the seller on the date of purchase cash or
      other immediately available funds in an amount equal to the greater of
      $75,000 or ten percent of the purchase price and the balance of the
      purchase price shall be paid by purchaser's delivery to the seller on the
      date of purchase of a promissory note with terms as follows:

                  (i) The remaining purchase price will be payable in 12 equal
            consecutive quarterly installments commencing 90 days after the date
            of purchase;

                  (ii) Interest will accrue on the principal balance outstanding
            from time to time at a fixed rate per annum equal to the lesser of
            (i) the Prime Rate in effect as of the date of purchase, or (ii) 12%
            and will be payable together with each installment of principal; and

                  (iii) The promissory note will be subordinated to the
            Company's Senior Lenders on such terms as may be requested by such
            Senior Lenders.

            (c) The "date of purchase" shall be such date as the seller and the
      purchaser(s) shall agree but in no event shall such date of purchase be
      more than 20 days after the date of notification of the final
      determination of the Contract Price (or, if applicable, the Base Price) of
      the Shares being sold.

            (d) On the date of purchase, the seller shall deliver to the
      purchaser(s) certificates evidencing ownership of the Shares being sold
      properly endorsed or with properly executed stock powers, free and clear
      of all liens, claims, restrictions and encumbrances other than this
      Agreement.

            "Convertible Securities" shall mean any evidence of indebtedness,
      shares of stock (other than Common Stock) or other securities (other than
      Options) which are directly or indirectly convertible into or exchangeable
      or exercisable for shares of Common Stock.

                                      -47-
<PAGE>

            "Cost" shall mean, for any security, the price paid to the issuer
      for such security.

            "Covered Person" shall have the meaning set forth in Section 7.5.1.

            "Disability" shall mean the inability of a Minority Stockholder to
      perform his regular duties for the Company or any of its subsidiaries on a
      full-time basis as a result of a physical or mental illness or condition,
      regardless of the nature or cause thereof, which continues for a period in
      excess of 180 consecutive days or 210 days in any consecutive 12 month
      period.

            "Drag Along Notice" shall have the meaning set forth in Sections
      3.2.1, 3.3.1 and 3.4.1.

            "Drag Along Sale Percentage" shall have the meaning set forth in
      Sections 3.2, 3.3 and 3.4.

            "Drag Along Sellers" shall have the meaning set forth in Sections
      3.2.1, 3.3.1 and 3.4.1.

            "Employee Stock" shall have the meaning set forth in Section 8.2.

            "Equivalent Shares" shall mean as to any outstanding shares of
      Common Stock, such number of shares of Common Stock, and as to any
      outstanding Options or Convertible Securities, the maximum number of
      shares of Common Stock for which or into which such Options or Convertible
      Securities may at the time be exercised or converted.

            "Escrow Agent" shall have the meaning set forth in Section 10.2.

            "Estimated Net Offering Price Per Share" shall have the meaning set
      forth in Section 7.2.7.

            "Exchange Act" shall mean the Securities Exchange Act of 1934, as in
      effect from time to time.

            "Fair Market Value" shall mean, as of any date, as to any share of
      Common Stock, the Board's good faith determination of the fair value of
      such share as of the applicable reference date.

            "Gain" shall have the meaning set forth in Section 5.4.

            "Indemnitee" shall have the meaning set forth in Section 7.5.3.

                                      -48-
<PAGE>

            "Initial Public Offering" means the initial Public Offering
      registered on Form S-1 (or any successor form under the Securities Act).

            "Initial Stockholders Agreement" shall have the meaning set forth in
      the Recitals.

            "Initiating Bain Investors" shall have the meaning set forth in
      Section 7.1.1.

            "Initiating Stolberg Investors" shall have the meaning set forth in
      Section 7.2.1.

            "IRS" shall have the meaning set forth in Section 5.4.

            "Issuance" shall have the meaning set forth in Section 6.

            "Joining Parties" shall have the meaning set forth in Section 14.7.

            "Liquidity Event" shall have the meaning set forth in Section 3.6.

            "Look-Back Date" shall have the meaning set forth in Section 8.1.

            "Look-Back Option" shall have the meaning set forth in Section 8.1.

            "Look-Back Valuation" shall have the meaning set forth in Section
      8.1.

            "Majority Bain Investors" shall mean, as of any date, Bain Investors
      holding a majority of the outstanding Series C Shares held by all Bain
      Investors.

            "Majority Series C Investors" shall mean, as of any date, the
      holders of a majority of the Series C Shares outstanding on such date.

            "Majority Participating Investors" shall have the meaning set forth
      in Sections 7.1.6 and 7.2.6.

            "Majority Stockholders" shall mean, as of any date, the holders of a
      majority of the Shares outstanding on such date.

            "Majority Stolberg Investors" shall mean, as of any date, Stolberg
      Investors holding a majority of the outstanding Stolberg Shares held by
      all Stolberg Investors.

            "Major Transaction" shall mean, with respect to any entity, (a)
      merger or consolidation, whether or not such entity is the surviving
      entity (other than a merger effected solely for the reincorporation of
      such entity), (b) disposition of properties (whether effected by merger,
      sale of assets, lease, equity exchange or otherwise), other

                                      -49-
<PAGE>

      than in any transaction or series of related transactions involving less
      than $100,000, (c) acquisition of or lease of properties (whether effected
      by merger, purchase of assets, lease, equity exchange or otherwise), other
      than in any transaction or series of related transactions involving less
      than $100,000, and (d) borrowing of money (whether in the public or
      private markets), obtaining of credit (other than trade credit in the
      ordinary course of business), issuance of notes, debentures or securities,
      or the refinancing thereof, except to the extent that the aggregate
      principal amount of indebtedness of the type described in this clause (d)
      at any time outstanding and not approved according to the procedures
      described in Section 2.3 hereof does not exceed $100,000.

            "Make Whole Amount" shall have the meaning set forth in Section 8.3.

            "Members of the Immediate Family" shall mean, with respect to any
      individual, each spouse or child or other descendants of such individual,
      each trust created for the primary benefit of one or more of the
      aforementioned Persons and their spouses and each custodian or guardian of
      any property of one or more of the aforementioned Persons in its capacity
      as such custodian or guardian.

            "Minority Shares" shall mean (a) all shares of Common Stock
      originally issued to, or issued with respect to shares originally issued
      to, or held by, a Minority Stockholder, whenever issued, including,
      without limitation, all shares of Common Stock issued pursuant to the
      exercise of any Options and all shares of Common Stock issued upon
      conversion of any shares of Preferred Stock, (b) all shares of Preferred
      Stock originally issued to, or issued with respect to shares originally
      issued to, or held by, a Minority Stockholder, whenever issued (treating
      such shares of Preferred Stock as a number of Shares equal to the number
      of Equivalent Shares represented by such shares of Preferred Stock for all
      purposes of this Agreement except as otherwise specifically set forth
      herein), and (c) all Options originally granted or issued to a Minority
      Stockholder (treating such Options as a number of Shares equal to the
      number of Equivalent Shares represented by such Options for all purposes
      of this Agreement except as otherwise specifically set forth herein).

            "Minority Sale" shall have the meaning set forth in Section 4.1.1.

            "Minority Stockholders" shall have the meaning set forth in the
      Preamble.

            "Minority Transferor" shall have the meaning set forth in Section
      4.1.1.

            "Notes" shall have the meaning set forth in Section 6.2.

            "Notice of Dispute" shall have the meaning set forth in Section
      4.1.6.

            "Offer" shall have the meaning set forth in Section 4.1.1.

                                      -50-
<PAGE>

            "Options" shall mean any options or warrants to subscribe for,
      purchase or otherwise acquire either Common Stock or Convertible
      Securities.

            "Other Securities" shall have the meaning set forth in Section
      6.1.3.

            "Participating Buyer" shall have the meaning set forth in Section
      6.1.2.

            "Participating Seller" shall have the meaning set forth in Sections
      3.1.2, 3.2.1, 3.3.1 and 3.4.1.

            "Participation Notice" shall have the meaning set forth in Section
      6.1.1.

            "Participation Offerees" shall have the meaning set forth in Section
      6.1.1.

            "Participation Portion" shall have the meaning set forth in Section
      6.1.1.

            "Permitted Transferee" shall mean (a) as to each Series C Share, a
      Transferee of such Series C Share resulting from a Transfer to an
      Affiliated Fund, partner or Affiliate of a holder of Series C Shares, (b)
      as to each Stolberg Share, a Transferee of such Stolberg Share an
      Affiliated Fund, partner or Affiliate of a holder of Stolberg Shares, and
      (c) as to each Minority Share, a Transferee of such Minority Share in
      compliance with Sections 4.2.3, 4.2.4 and 4.2.5.

            "Person" shall mean any individual, partnership, corporation,
      company, association, trust, joint venture, unincorporated organization,
      entity or division, or any government, governmental department or agency
      or political subdivision thereof.

            "Preferred Stock" shall have the meaning set forth in the Recitals.

            "Price Per Equivalent Share" shall mean the Board's good faith
      determination of the price per Equivalent Share of any Convertible
      Securities or Options which are the subject of an Issuance pursuant to
      Section 8 hereof.

            "Prime Rate" shall mean the rate per annum published in the Wall
      Street Journal (or any comparable successor publication) as the Prime Rate
      (i.e., the base rate on corporate loans posted by at least 75% of the
      nation's 30 largest banks).

            "Prospectus Buyer" shall mean any Person.

            "Prospective Selling Investor" shall have the meaning set forth in
      Sections 3.1, 3.2, 3.3 and 3.4.

                                      -51-
<PAGE>

            "Prospective Selling Stockholder" shall have the meaning set forth
      in Section 4.1.1.

            "Prospective Subscriber" shall have the meaning set forth in Section
      6.1.1.

            "Public Offering" shall mean a public offering and sale of Common
      Stock for cash pursuant to an effective registration statement under the
      Securities Act.

            "Purchase Agreement" shall have the meaning set forth in the
      Recitals.

            "Qualified Public Offering" shall mean a Public Offering, other than
      any Public Offering or sale pursuant to a registration statement on Form
      S-8 or comparable form, in which the aggregate price to the public of all
      such common stock sold in such offering shall exceed $30,000,000.

            "Registrable Bain Securities" shall have the meaning set forth in
      Section 7.1.1.

            "Registrable Securities" shall mean (a) all shares of Common Stock,
      (b) all shares of Common Stock issuable upon exercise of any Option or
      Convertible Security and (c) all shares of Common Stock directly or
      indirectly issued or issuable with respect to the securities referred to
      in clauses (a) or (b) above by way of stock dividend or stock split or in
      connection with a combination of shares, recapitalization, merger,
      consolidation or other reorganization, in each case constituting Shares.
      As to any particular Registrable Securities, such shares shall cease to be
      Registrable Securities when (v) such shares shall have been Transferred
      pursuant to Section 3.1 (other than Section 3.1.6(i), (ii), (iii) or
      (iv)), 3.2, 3.3 or 3.4 hereof, (w) a registration statement with respect
      to the sale of such securities shall have become effective under the
      Securities Act and such securities shall have been disposed of in
      accordance with such registration statement, (x) such securities shall
      have been Transferred pursuant to Rule 144, (y) subject to the provisions
      of Section 12 hereof, such securities shall have been otherwise
      transferred, new certificates for them not bearing a legend restricting
      further transfer shall have been delivered by the Company and subsequent
      disposition of them shall not require registration of them under the
      Securities Act and such securities may be distributed without volume
      limitation or other restrictions on transfer under Rule 144 (including
      without application of paragraphs (c), (e) (f) and (h) of Rule 144) or (z)
      such securities shall have ceased to be outstanding.

            "Registrable Stolberg Securities" shall have the meaning set forth
      in Section 7.2.1.

            "Representative" shall have the meaning set forth in the definition
      of "Appraisal Process" in this Section 13.2.

                                      -52-
<PAGE>

            "Rule 144" shall mean Rule 144 under the Securities Act (or any
      successor Rule).

            "Rule 145 Transaction" shall mean a registration on Form S-4
      pursuant to Rule 145 of the Securities Act (or any successor Form or
      provision, as applicable).

            "Sale" shall have the meaning set forth in Section 3.1. The terms
      "Sell" and "Sold" shall reference the sale of Shares pursuant to a "Sale."

            "Securities Act" shall mean the Securities Act of 1933, as in effect
      from time to time.

            "Senior Lenders" shall mean any financial institution providing
      credit or financing to the Company whether in the form of term loans,
      revolving lines of credit, letters of credit, industrial revenue bonds or
      otherwise; provided, however, that "Senior Lenders" shall not include the
      Stolberg Investors.

            "Senior Management" shall mean the Chief Executive Officer, Chief
      Financial Officer or Chief Operating Officer.

            "Series A Preferred" shall have the meaning set forth in the
      Recitals.

            "Series B Preferred" shall have the meaning set forth in the
      Recitals.

            "Series C Investors" shall have the meaning set forth in the
      Preamble.

            "Series C Preferred" shall have the meaning set forth in the
      Preamble.

            "Series C Shares" shall mean (a) all shares of Series C Preferred
      originally issued to, or issued with respect to shares originally issued
      to, or held by, the Series C Investors, whenever issued (treating such
      shares of Series C Preferred as a number of Shares equal to the number of
      Equivalent Shares represented by such shares of Series C Preferred for all
      purposes of this Agreement except as otherwise specifically set forth
      herein) and (b) all shares of Common Stock issued upon conversion of any
      shares of Series C Preferred originally issued to, or held by, the Series
      C Investors.

            "Shares" shall mean all Series C Shares, Stolberg Shares, and
      Minority Shares.

            "Stockholders" shall have the meaning set forth in the Preamble.

            "Stolberg Investors" shall have the meaning set forth in the
      Preamble.

                                      -53-
<PAGE>

            "Stolberg Shares" shall mean (a) all shares of Common Stock
      originally issued to, or issued with respect to shares originally issued
      to, or held by, the Stolberg Investors, whenever issued, including,
      without limitation, all shares of Common Stock issued pursuant to the
      exercise of any Options and all shares of Common Stock issued upon
      conversion of any shares of Preferred Stock, (b) all shares of Preferred
      Stock originally issued to, or issued with respect to shares originally
      issued to, or held by, the Stolberg Investors, whenever issued (treating
      such shares of Preferred Stock as a number of Shares equal to the number
      of Equivalent Shares represented by such shares of Preferred Stock for all
      purposes of this Agreement except as otherwise specifically set forth
      herein), and (c) all Options originally granted or issued to the Stolberg
      Investors (treating such Options as a number of Shares equal to the number
      of Equivalent Shares represented by such Options for all purposes of this
      Agreement except as otherwise specifically set forth herein), in each case
      excluding, for all purposes of this Agreement other than the provisions of
      Section 7.2, all Series C Shares originally issued to, or issued with
      respect to shares originally issued to, or held by, the Stolberg
      Investors.

            "Subject Minority Shares" shall have the meaning set forth in
      Section 8.1.

            "Subject Securities" shall have the meaning set forth in Section 6.

            "Tag Along Holder" shall have the meaning set forth in Section
      3.1.1.

            "Tag Along Notice" shall have the meaning set forth in Section
      3.1.1.

            "Tag Along Offer" shall have the meaning set forth in Section 3.1.2.

            "Tag Along Sale Percentage" shall have the meaning set forth in
      Section 3.1.1.

            "Tag Along Sellers" shall have the meaning set forth in Section
      3.1.2.

            "Target Net Offering Price Per Share" shall mean, with respect to
      any public offering of shares of Common Stock, the net offering price per
      share which would result in proceeds to the Bain Investors, if the Bain
      Investors were to sell one share of Registrable Bain Securities at such
      net offering price per share, equal to $5.00 per share (as adjusted for
      stock splits, stock dividends and the like) plus an amount sufficient to
      generate an internal rate of return thereon of 50% per annum compounded
      quarterly.

            "Transfer" shall mean any sale, pledge, assignment, encumbrance or
      other transfer or disposition of any Shares to any other Person, whether
      directly, indirectly, voluntarily, involuntarily, by operation of law,
      pursuant to judicial process or otherwise.

                                      -54-
<PAGE>

            "Waiver of Deferral Notice" shall have the meaning set forth in
      Section 5.2.

14. MISCELLANEOUS.

      14.1. Authority; Effect. Each party hereto represents and warrants to and
agrees with each other party that the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized on behalf of such party and do not violate any agreement or other
instrument applicable to such party or by which its assets are bound. This
Agreement does not, and shall not be construed to, give rise to the creation of
a partnership among any of the parties hereto, or to constitute any of such
parties members of a joint venture or other association.

      14.2. Notices. Any notices and other communications required or permitted
in this Agreement shall be effective if in writing and (a) delivered personally
or (b) sent (i) by Federal Express, DHL or UPS or (ii) by registered or
certified mail, postage prepaid, in each case, addressed as follows:

            If to the Company, to it:

                        Advanced Telecommunications, Inc.
                        730 2nd Avenue South
                        Suite 1200
                        Minneapolis, MN 55402
                        Attention:  Chief Executive Officer

                  with a copy to:

                        Piper & Marbury
                        1200 Nineteen St., N.W.
                        Washington, DC 20036-2430
                        Attention:  Edwin M. Martin, Esq.

                  and with a copy to:

                        Robins, Kaplan, Miller & Ciresi L.L.P.
                        2800 LaSalle Plaza
                        800 LaSalle Avenue
                        Minneapolis, MN 55402-2015
                        Attention:  David L. Mitchell, Esq.

            If to the Bain Investors, to them:

                        c/o Bain Capital, Inc.

                                      -55-
<PAGE>

                        Two Copley Place, 7th Floor
                        Boston, Massachusetts 02116
                        Attention:  Michael A. Krupka

                  with a copy to:

                        Ropes & Gray
                        One International Place
                        Boston, Massachusetts 02110
                        Attention: Philip J. Smith, Esq.

            If to the Stolberg Investors, to them:

                        c/o Stolberg Partners, L.P.
                        370 17th Street
                        Suite 4240
                        Denver, CO 80202
                        Attention:  Peter Van Genderen

                  with a copy to:

                        Holland & Hart
                        555 Seventeenth Street, Suite 3200
                        P.O. Box 8749
                        Denver, CO 80201
                        Attention:  Betty Arkell, Esq.

            If to a Minority Stockholder, to it at the address set forth in the
      stock record book of the Company.

      Notice to the holder of record of any shares of capital stock shall be
deemed to be notice to the holder of such shares for all purposes hereof.

      Unless otherwise specified herein, such notices or other communications
shall be deemed effective (a) on the date received, if personally delivered,
(b) two business days after being sent by Federal Express, DHL or UPS and (c)
three business days after deposit with the U.S. Postal Service, if sent by
registered or certified mail. Each of the parties hereto shall be entitled to
specify a different address by giving notice as aforesaid to each of the other
parties hereto.

      14.3. Binding Effect, etc. Except for restrictions on Transfer of Shares
set forth in other agreements, plans or other documents, this Agreement
constitutes the entire agreement of the parties with respect to its subject
matter, supersedes all prior or contemporaneous oral or

                                      -56-
<PAGE>

written agreements or discussions with respect to such subject matter, and shall
be binding upon and inure to the benefit of the parties hereto and their
respective heirs, representatives, successors and assigns.

      14.4. Descriptive Headings. The descriptive headings of this Agreement are
for convenience of reference only, are not to be considered a part hereof and
shall not be construed to define or limit any of the terms or provisions hereof.

      14.5. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one instrument.

      14.6. Severability. In the event that any provision hereof would, under
applicable law, be invalid or unenforceable in any respect, such provision shall
be construed by modifying or limiting it so as to be valid and enforceable to
the maximum extent compatible with, and possible under, applicable law. The
provisions hereof are severable, and in the event any provision hereof should be
held invalid or unenforceable in any respect, it shall not invalidate, render
unenforceable or otherwise affect any other provision hereof.

      14.7. Joinder. The parties hereto intend that (a) transferees of shares
hereunder, (b) holders of securities of the Company that are not parties hereto
and (c) future holders of securities of the Company (collectively, the "Joining
Parties") may become parties to this Agreement. The parties agree that the
Joining Parties may become parties hereto by executing a joinder agreement and
upon execution of such joinder agreement shall be entitled to rights and subject
to obligations applicable to such Joining Parties hereunder.

      14.8. Consent to Amendment and Restatement. By executing this Agreement,
each party hereto consents to this amendment and restatement of the Initial
Stockholders Agreement pursuant to the terms of Section 16.1 of the Initial
Stockholders Agreement.

      14.9. Supersession of Prior Registration Rights Agreement. By executing
this Agreement, each party hereto agrees that this Agreement supersedes the
Registration Rights Agreement dated as of February 7, 1997, as amended, by and
among the Company, the Stolberg Investors and the Holders (as defined therein).

15. GOVERNING LAW, ETC.

      15.1. Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic substantive laws of the State of Delaware without
giving effect to any choice or conflict of laws provision or rule that would
cause the application of the domestic substantive laws of any other
jurisdiction.

                                      -57-
<PAGE>

      15.2. Consent to Jurisdiction. Each party to this Agreement, by its
execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction
of the state courts of the State of Delaware sitting in the County of Wilmington
or the United States District Court for the District of Delaware for the purpose
of any action, claim, cause of action or suit (in contract, tort or otherwise),
inquiry, proceeding or investigation arising out of or based upon this Agreement
or relating to the subject matter hereof, (b) hereby waives to the extent not
prohibited by applicable law, and agrees not to assert, and agrees not to allow
any of its subsidiaries to assert, by way of motion, as a defense or otherwise,
in any such action, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt or immune
from attachment or execution, that any such proceeding brought in one of the
above-named courts is improper, or that this Agreement or the subject matter
hereof or thereof may not be enforced in or by such court and (c) hereby agrees
not to commence or maintain any action, claim, cause of action or suit (in
contract, tort or otherwise), inquiry, proceeding or investigation arising out
of or based upon this Agreement or relating to the subject matter hereof or
thereof other than before one of the above-named courts nor to make any motion
or take any other action seeking or intending to cause the transfer or removal
of any such action, claim, cause of action or suit (in contract, tort or
otherwise), inquiry, proceeding or investigation to any court other than one of
the above-named courts whether on the grounds of inconvenient forum or
otherwise. Notwithstanding the foregoing, to the extent that any party hereto is
or becomes a party in any litigation in connection with which it may assert
indemnification rights set forth in this agreement, the court in which such
litigation is being heard shall be deemed to be included in clause (a) above.
Each party hereto hereby consents to service of process in any such proceeding
in any manner permitted by Delaware law, and agrees that service of process by
registered or certified mail, return receipt requested, at its address specified
pursuant to Section 14.2 hereof is reasonably calculated to give actual notice.

      15.3. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW
WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT
WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO
TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF
ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR
INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER
HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS
CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING.
EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES
HERETO THAT THIS SECTION 15.3 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY
ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 15.3 WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO
TRIAL BY JURY.

                                      -58-
<PAGE>

      15.4. Exercise of Rights and Remedies. No delay of or omission in the
exercise of any right, power or remedy accruing to any party as a result of any
breach or default by any other party under this Agreement shall impair any such
right, power or remedy, nor shall it be construed as a waiver of or acquiescence
in any such breach or default, or of any similar breach or default occurring
later; nor shall any such delay, omission nor waiver of any single breach or
default be deemed a waiver of any other breach or default occurring before or
after that waiver.

                                      -59-
<PAGE>

      IN WITNESS WHEREOF, each of the undersigned has duly executed this
Agreement (or caused this Agreement to be executed on its behalf by its officer
or representative thereunto duly authorized) under seal as of the date first
above written.

THE COMPANY:                           ADVANCED TELECOMMUNICATIONS, INC.

                                       By: /s/ Clifford D. Williams
                                           -------------------------------------
                                           Clifford D. Williams,
                                           Chief Executive Officer

BAIN INVESTORS:                        BAIN CAPITAL FUND VI, L.P.
                                       By: Bain Capital Partners VI, L.P.,
                                             its general partner
                                       By: Bain Capital Investors VI, Inc.,
                                             its general partner

                                       By:______________________________________
                                       Name:
                                       Title: Managing Director

                                       BCIP ASSOCIATES II
                                       BCIP TRUST ASSOCIATES II
                                       BCIP ASSOCIATES II-B
                                       BCIP TRUST ASSOCIATES II-B
                                       BCIP ASSOCIATES II-C
                                       By: Bain Capital, Inc.,
                                             their Managing Partner

                                       PEP INVESTMENTS PTY LTD.
                                       By: Bain Capital, Inc.,
                                           its attorney-in-fact

                                       By:______________________________________
                                       Name:
                                       Title: Managing Director

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-1
<PAGE>

      IN WITNESS WHEREOF, each of the undersigned has duly executed this
Agreement (or caused this Agreement to be executed on its behalf by its officer
or representative thereunto duly authorized) under seal as of the date first
above written.

THE COMPANY:                           ADVANCED TELECOMMUNICATIONS, INC.

                                       By: _____________________________________
                                           Clifford D. Williams,
                                           Chief Executive Officer

BAIN INVESTORS:                        BAIN CAPITAL FUND VI, L.P.
                                       By: Bain Capital Partners VI, L.P.,
                                             its general partner
                                       By: Bain Capital Investors VI, Inc.,
                                             its general partner

                                       By: /s/ Michael A. Krupka
                                           -------------------------------------
                                       Name: Michael A. Krupka
                                       Title: Managing Director

                                       BCIP ASSOCIATES II
                                       BCIP TRUST ASSOCIATES II
                                       BCIP ASSOCIATES II-B
                                       BCIP TRUST ASSOCIATES II-B
                                       BCIP ASSOCIATES II-C
                                       By: Bain Capital, Inc.,
                                             their Managing Partner

                                       PEP INVESTMENTS PTY LTD.
                                       By: Bain Capital, Inc.,
                                           its attorney-in-fact

                                       By: /s/ Michael A. Krupka
                                           -------------------------------------
                                       Name: Michael A. Krupka
                                       Title: Managing Director

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-1
<PAGE>

                                       RGIP, LLC

                                       By: /s/ R. Bradford Malt
                                           -------------------------------------
                                       Name: R. Bradford Malt
                                       Title: Managing Member

STOLBERG INVESTORS:
                                       STOLBERG PARTNERS, L.P.,
                                       By: SGMS, L.P., General Partner
                                       By: Stolberg Meehan & Scano, Inc.
                                             General Partner

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       STOLBERG MEEHAN & SCANO II, L.P.
                                       a Delaware limited partnership
                                       By: Stolberg Meehan & Scano LLC,
                                             General Partner

                                       By: _____________________________________
                                       Name:
                                       Title:

THE MINORITY STOCKHOLDERS:

                                       STOLBERG PARTNERS, L.P.,
                                       as Nominee for Gary E. Snyder, 780
                                       Partners, Larry Walker, Lawrence
                                       Freeborg, Peter Van Genderen, and
                                       Nottingham & Spirk Design, Inc.
                                       By: SGMS, L.P., General Partner
                                       By: Stolberg Meehan & Scano, Inc.
                                             General Partner

                                       By: _____________________________________
                                       Name:
                                       Title:

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-2
<PAGE>

                                       RGIP, LLC

                                       By: _____________________________________
                                       Name:
                                       Title:

STOLBERG INVESTORS:
                                       STOLBERG PARTNERS, L.P.,
                                       By: SGMS, L.P., General Partner
                                       By: Stolberg Meehan & Scano, Inc.
                                             General Partner

                                       By: /s/ E. Theodore Stolberg
                                           -------------------------------------
                                       Name: E. Theodore Stolberg
                                       Title: Partner

                                       STOLBERG MEEHAN & SCANO II, L.P.
                                       a Delaware limited partnership
                                       By: Stolberg Meehan & Scano LLC,
                                             General Partner

                                       By: /s/ Peter Van Genderen
                                           -------------------------------------
                                       Name: Peter Van Genderen
                                       Title: Partner

THE MINORITY STOCKHOLDERS:

                                       STOLBERG PARTNERS, L.P.,
                                       as Nominee for Gary E. Snyder, 780
                                       Partners, Larry Walker, Lawrence
                                       Freeborg, Peter Van Genderen, and
                                       Nottingham & Spirk Design, Inc.
                                       By: SGMS, L.P., General Partner
                                       By: Stolberg Meehan & Scano, Inc.
                                             General Partner

                                       By: /s/ [ILLEGIBLE]
                                           -------------------------------------
                                       Name:
                                       Title:

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-2
<PAGE>

                                       ARTESIAN CAPITAL LIMITED PARTNERSHIP II

                                       By: Artesian Management, Inc
                                           -------------------------------------
                                       Its: General Partner
                                       By: Frank B. Bennett
                                       Its: President

                                       ARTESIAN MANAGEMENT, INC.

                                       By: /s/ Frank B. Bennett
                                           -------------------------------------
                                       Name: Frank B. Bennett
                                       Title: President

                                       RWJ Co.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       MOSES FAMILY LIMITED PARTNERSHIP

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Marvin Moses

                                       _________________________________________
                                       Peter Fyhrie

                                       J M HIXON PARTNERS LLC

                                       By: _____________________________________
                                       Name:
                                       Title:

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                       S-3

<PAGE>

                                       ARTESIAN CAPITAL LIMITED PARTNERSHIP II

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       ARTESIAN MANAGEMENT, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       RWJ Co.

                                       By: /s/ James O. Pohlad
                                           -------------------------------------
                                       Name:  JAMES O. POHLAD
                                       Title: AGENT PARTNER

                                       MOSES FAMILY LIMITED PARTNERSHIP

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Marvin Moses

                                       _________________________________________
                                       Peter Fyhrie

                                       J M HIXON PARTNERS LLC

                                       By: _____________________________________
                                       Name:
                                       Title:

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                       S-3

<PAGE>

                                       ARTESIAN CAPITAL LIMITED PARTNERSHIP II

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       ARTESIAN MANAGEMENT, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       RWJ Co.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       MOSES FAMILY LIMITED PARTNERSHIP

                                       By: /s/ Marvin C. Moses
                                           -------------------------------------
                                       Name: MARVIN C. MOSES
                                       Title: MANAGING MEMBER OF CHESTNUT
                                              SPRINGS, L.L.C., GENERAL PARTNER

                                       /s/ Marvin C. Moses
                                       -----------------------------------------
                                       Marvin Moses

                                       _________________________________________
                                       Peter Fyhrie

                                       J M HIXON PARTNERS LLC

                                       By: _____________________________________
                                       Name:
                                       Title:

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                       S-3

<PAGE>

                                       ARTESIAN CAPITAL LIMITED PARTNERSHIP II

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       ARTESIAN MANAGEMENT, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       RWJ Co.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       MOSES FAMILY LIMITED PARTNERSHIP

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Marvin Moses

                                       /s/ Peter Fyhrie
                                       -----------------------------------------
                                       Peter Fyhrie

                                       J M HIXON PARTNERS LLC

                                       By: _____________________________________
                                       Name:
                                       Title:

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                       S-3

<PAGE>

                                       ARTESIAN CAPITAL LIMITED PARTNERSHIP II

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       ARTESIAN MANAGEMENT, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       RWJ Co.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       MOSES FAMILY LIMITED PARTNERSHIP

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Marvin Moses

                                       _________________________________________
                                       Peter Fyhrie

                                       J M HIXON PARTNERS LLC

                                       By: /s/ Benson K. Whitney
                                           -------------------------------------
                                       Name:  Benson K. Whitney
                                       Title: Managing Member

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                       S-3

<PAGE>

                                       MINNESOTA MANAGEMENT PARTNERS I

                                       By: /s/ Jack L. Hauser
                                           -------------------------------------
                                       Name: JACK L. HAUSER
                                       Title: EXECUTIVE DIRECTOR

                                       SIT INVESTMENT ASSOCIATES, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Joseph Rubin & Marguerite Rubin,
                                       as Joint Tenants

                                       _________________________________________
                                       Joseph Rubin

                                       _________________________________________
                                       John R. Dennis & Maryanne Dennis,
                                       as Joint Tenants

                                       _________________________________________
                                       John R. Dennis

                                       _________________________________________
                                       Winslow W. Bennett & Adele W. Bennett,
                                       Joint Tenants

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-4
<PAGE>

                                       MINNESOTA MANAGEMENT PARTNERS I

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       SIT INVESTMENT ASSOCIATES, INC.

                                       By: /s/ Carla J. Rose
                                           -------------------------------------
                                       Name:  Carla J. Rose
                                       Title: V.P. Administration & Deputy
                                              Controller

                                       _________________________________________
                                       Joseph Rubin & Marguerite Rubin,
                                       as Joint Tenants

                                       _________________________________________
                                       Joseph Rubin

                                       _________________________________________
                                       John R. Dennis & Maryanne Dennis,
                                       as Joint Tenants

                                       _________________________________________
                                       John R. Dennis

                                       _________________________________________
                                       Winslow W. Bennett & Adele W. Bennett,
                                       Joint Tenants

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-4
<PAGE>

                                       MINNESOTA MANAGEMENT PARTNERS I

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       SIT INVESTMENT ASSOCIATES, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       /s/ Joseph Rubin      Marguerite A. Rubin
                                       -----------------------------------------
                                       Joseph Rubin & Marguerite Rubin,
                                       as Joint Tenants

                                       /s/ Joseph Rubin
                                       -----------------------------------------
                                       Joseph Rubin

                                       _________________________________________
                                       John R. Dennis & Maryanne Dennis,
                                       as Joint Tenants

                                       _________________________________________
                                       John R. Dennis

                                       _________________________________________
                                       Winslow W. Bennett & Adele W. Bennett,
                                       Joint Tenants

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-4
<PAGE>

                                       MINNESOTA MANAGEMENT PARTNERS I

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       SIT INVESTMENT ASSOCIATES, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Joseph Rubin & Marguerite Rubin,
                                       as Joint Tenants

                                       _________________________________________
                                       Joseph Rubin

                                       /s/ John R. Dennis        Maryanne Dennis
                                       -----------------------------------------
                                       John R. Dennis & Maryanne Dennis,
                                       as Joint Tenants

                                       /s/ John R. Dennis
                                       -----------------------------------------
                                       John R. Dennis

                                       _________________________________________
                                       Winslow W. Bennett & Adele W. Bennett,
                                       Joint Tenants

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-4

<PAGE>

                                       MINNESOTA MANAGEMENT PARTNERS I

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       SIT INVESTMENT ASSOCIATES, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Joseph Rubin & Marguerite Rubin,
                                       as Joint Tenants

                                       _________________________________________
                                       Joseph Rubin

                                       _________________________________________
                                       John R. Dennis & Maryanne Dennis,
                                       as Joint Tenants

                                       _________________________________________
                                       John R. Dennis

                                       /s/ Winslow W. Bennett & Adele W. Bennett
                                       [ILLEGIBLE]
                                       -----------------------------------------
                                       Winslow W. Bennett & Adele W. Bennett,
                                       Joint Tenants

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-4

<PAGE>

                                       /s/ Winslow W. Bennett
                                       -----------------------------------------
                                       Winslow W. Bennett

                                       /s/ Adele W. Bennett
                                       /s/ Winslow W. Bennett ATTY
                                       -----------------------------------------
                                       Adele W. Bennett

                                       _________________________________________
                                       Kathleen Brown Zerwas &
                                       James Zerwas, as Joint Tenants

                                       BAYVIEW CAPITAL GROUP, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Ronald W. Mullins & Sara G. Mullins,
                                       as Joint Tenants

                                       _________________________________________
                                       Sara G. Mullins

                                       _________________________________________
                                       Timothy I. Maudlin

                                       _________________________________________
                                       Richard E. Struthers

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-5

<PAGE>

                                       _________________________________________
                                       Winslow W. Bennett

                                       _________________________________________
                                       Adele W. Bennett

                                       /s/ Kathleen Brown Zerwas
                                       /s/ James Zerwas
                                       -----------------------------------------
                                       Kathleen Brown Zerwas &
                                       James Zerwas, as Joint Tenants

                                       BAYVIEW CAPITAL GROUP, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Ronald W. Mullins & Sara G. Mullins,
                                       as Joint Tenants

                                       _________________________________________
                                       Sara G. Mullins

                                       _________________________________________
                                       Timothy I. Maudlin

                                       _________________________________________
                                       Richard E. Struthers

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-5
<PAGE>

                                       _________________________________________
                                       Winslow W. Bennett

                                       _________________________________________
                                       Adele W. Bennett

                                       _________________________________________
                                       Kathleen Brown Zerwas &
                                       James Zerwas, as Joint Tenants

                                       BAYVIEW CAPITAL GROUP, INC.

                                       By: /s/ Bayview Capital Group, Inc.
                                       Name:  R. Jeffrey [ILLEGIBLE]
                                       Title: CEO

                                       _________________________________________
                                       Ronald W. Mullins & Sara G. Mullins,
                                       as Joint Tenants

                                       _________________________________________
                                       Sara G. Mullins

                                       _________________________________________
                                       Timothy I. Maudlin

                                       _________________________________________
                                       Richard E. Struthers

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-5

<PAGE>

                                       _________________________________________
                                       Winslow W. Bennett

                                       _________________________________________
                                       Adele W. Bennett

                                       _________________________________________
                                       Kathleen Brown Zerwas &
                                       James Zerwas, as Joint Tenants

                                       BAYVIEW CAPITAL GROUP, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       /s/ Ronald W. Mullins
                                       -----------------------------------------
                                       Ronald W. Mullins & Sara G. Mullins,
                                       as Joint Tenants

                                       _________________________________________
                                       Sara G. Mullins

                                       _________________________________________
                                       Timothy I. Maudlin

                                       _________________________________________
                                       Richard E. Struthers

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-5
<PAGE>

                                       _________________________________________
                                       Winslow W. Bennett

                                       _________________________________________
                                       Adele W. Bennett

                                       _________________________________________
                                       Kathleen Brown Zerwas &
                                       James Zerwas, as Joint Tenants

                                       BAYVIEW CAPITAL GROUP, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       /s/ Sara G. Mullins
                                       -----------------------------------------
                                       Ronald W. Mullins & Sara G. Mullins,
                                       as Joint Tenants

                                       /s/ Sara G. Mullins
                                       -----------------------------------------
                                       Sara G. Mullins

                                       _________________________________________
                                       Timothy I. Maudlin

                                       _________________________________________
                                       Richard E. Struthers

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-5
<PAGE>

                                       _________________________________________
                                       Winslow W. Bennett

                                       _________________________________________
                                       Adele W. Bennett

                                       _________________________________________
                                       Kathleen Brown Zerwas &
                                       James Zerwas, as Joint Tenants

                                       BAYVIEW CAPITAL GROUP, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Ronald W. Mullins & Sara G. Mullins,
                                       as Joint Tenants

                                       _________________________________________
                                       Sara G. Mullins

                                       /s/ Timothy I. Maudlin
                                       -----------------------------------------
                                       Timothy I. Maudlin

                                       _________________________________________
                                       Richard E. Struthers

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-5
<PAGE>

                                       _________________________________________
                                       Winslow W. Bennett

                                       _________________________________________
                                       Adele W. Bennett

                                       _________________________________________
                                       Kathleen Brown Zerwas &
                                       James Zerwas, as Joint Tenants

                                       BAYVIEW CAPITAL GROUP, INC.

                                       By: _____________________________________
                                       Name:
                                       Title:

                                       _________________________________________
                                       Ronald W. Mullins & Sara G. Mullins,
                                       as Joint Tenants

                                       _________________________________________
                                       Sara G. Mullins

                                       _________________________________________
                                       Timothy I. Maudlin

                                       /s/ Richard E. Struthers
                                       -----------------------------------------
                                       Richard E. Struthers

(Signature pages to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.)

                                      S-5
<PAGE>

                                        GHYSELINCK & ASSOCIATES LLC

                                        By: /s/ Sara Ghyselinck Mullins
                                           ----------------------------------
                                        Name: Sara Ghyselinck Mullins
                                        Title: Partner

                                        MULLINS LIVING TRUST

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

                                        -------------------------------------
                                        George T. Holden

                                        -------------------------------------
                                        Joseph Alexander

                                        -------------------------------------
                                        Thomas W. Burton & Georgia L. Burton,
                                        as Joint Tenants

                                        BURTON REAL ESTATE ADVISORS, INC.

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

                                        -------------------------------------
                                        Clifford D. Williams

                                      S-6
<PAGE>

                                        GHYSELINCK & ASSOCIATES LLC

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

                                        MULLINS LIVING TRUST

                                        By: /s/ Ronald W. Mullins
                                           ----------------------------------
                                        Name: Ronald W. Mullins
                                        Title:

                                        -------------------------------------
                                        George T. Holden

                                        -------------------------------------
                                        Joseph Alexander

                                        -------------------------------------
                                        Thomas W. Burton & Georgia L. Burton,
                                        as Joint Tenants

                                        BURTON REAL ESTATE ADVISORS, INC.

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

                                        -------------------------------------
                                        Clifford D. Williams

                                      S-6
<PAGE>

                                        GHYSELINCK & ASSOCIATES LLC

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

                                        MULLINS LIVING TRUST

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

                                        /s/ George T. Holden
                                        -------------------------------------
                                        George T. Holden

                                        -------------------------------------
                                        Joseph Alexander

                                        -------------------------------------
                                        Thomas W. Burton & Georgia L. Burton,
                                        as Joint Tenants

                                        BURTON REAL ESTATE ADVISORS, INC.

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

                                        -------------------------------------
                                        Clifford D. Williams

                                      S-6
<PAGE>

                                        GHYSELINCK & ASSOCIATES LLC

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

                                        MULLINS LIVING TRUST

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

                                        -------------------------------------
                                        George T. Holden

                                        /s/ Joseph Alexander
                                        -------------------------------------
                                        Joseph Alexander

                                        -------------------------------------
                                        Thomas W. Burton & Georgia L. Burton,
                                        as Joint Tenants

                                        BURTON REAL ESTATE ADVISORS, INC.

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

                                        -------------------------------------
                                        Clifford D. Williams

                                      S-6
<PAGE>

                                      GHYSELINCK & ASSOCIATES LLC

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

                                      MULLINS LIVING TRUST

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

                                      -------------------------------------
                                      George T. Holden

                                      -------------------------------------
                                      Joseph Alexander

                                      /s/ Thomas W. Burton /s/ Georgia L. Burton
                                      -------------------------------------
                                      Thomas W. Burton & Georgia L. Burton,
                                      as Joint Tenants

                                      BURTON REAL ESTATE ADVISORS, INC.

                                      By: /s/ Thomas W. Burton
                                         ----------------------------------
                                      Name: Thomas W. Burton
                                      Title: CEO

                                      -------------------------------------
                                      Clifford D. Williams

                                      S-6

<PAGE>

                                        GHYSELINCK & ASSOCIATES LLC

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

                                        MULLINS LIVING TRUST

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

                                        -------------------------------------
                                        George T. Holden

                                        -------------------------------------
                                        Joseph Alexander

                                        -------------------------------------
                                        Thomas W. Burton & Georgia L. Burton,
                                        as Joint Tenants

                                        BURTON REAL ESTATE ADVISORS, INC.

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

                                        /s/ Clifford D. Williams
                                        -------------------------------------
                                        Clifford D. Williams

                                      S-6

<PAGE>

                                        Myrna L. Williams, as custodian for
                                        Scott Frasier Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        /s/ Myrna L. Williams
                                        -------------------------------------
                                        Myrna L. Williams

                                        Myrna L. Williams, as custodian for
                                        Regan Rea-Anna Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        /s/ Myrna L. Williams
                                        -------------------------------------
                                        Myrna L. Williams

                                        /s/ Scott Frasier Williams
                                        -------------------------------------
                                        Scott Frasier Williams

                                        /s/ Regan Rea-Anna Williams
                                        -------------------------------------
                                        Regan Rea-Anna Williams

                                        -------------------------------------
                                        Paul D. Cady

                                        -------------------------------------
                                        Sheldon Allen

                                        -------------------------------------
                                        Michael D. Lopata

                                        -------------------------------------
                                        Satish C. Tiwari

                                       S-7
<PAGE>

                                        Myrna L. Williams, as custodian for
                                        Scott Frasier Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        -------------------------------------
                                        Myrna L. Williams

                                        Myrna L. Williams, as custodian for
                                        Regan Rea-Anna Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        -------------------------------------
                                        Myrna L. Williams

                                        -------------------------------------
                                        Scott Frasier Williams

                                        -------------------------------------
                                        Regan Rea-Anna Williams

                                        /s/ Paul D. Cady
                                        -------------------------------------
                                        Paul D. Cady

                                        -------------------------------------
                                        Sheldon Allen

                                        -------------------------------------
                                        Michael D. Lopata

                                        -------------------------------------
                                        Satish C. Tiwari

                                       S-7
<PAGE>

                                        Myrna L. Williams, as custodian for
                                        Scott Frasier Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        -------------------------------------
                                        Myrna L. Williams

                                        Myrna L. Williams, as custodian for
                                        Regan Rea-Anna Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        -------------------------------------
                                        Myrna L. Williams

                                        -------------------------------------
                                        Scott Frasier Williams

                                        -------------------------------------
                                        Regan Rea-Anna Williams

                                        -------------------------------------
                                        Paul D. Cady

                                        /s/ Sheldon Allen
                                        -------------------------------------
                                        Sheldon Allen

                                        -------------------------------------
                                        Michael D. Lopata

                                        -------------------------------------
                                        Satish C. Tiwari

                                       S-7
<PAGE>

                                        Myrna L. Williams, as custodian for
                                        Scott Frasier Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        -------------------------------------
                                        Myrna L. Williams

                                        Myrna L. Williams, as custodian for
                                        Regan Rea-Anna Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        -------------------------------------
                                        Myrna L. Williams

                                        -------------------------------------
                                        Scott Frasier Williams

                                        -------------------------------------
                                        Regan Rea-Anna Williams

                                        -------------------------------------
                                        Paul D. Cady

                                        -------------------------------------
                                        Sheldon Allen

                                        /s/ Michael D. Lopata
                                        -------------------------------------
                                        Michael D. Lopata

                                        -------------------------------------
                                        Satish C. Tiwari

                                       S-7
<PAGE>

                                        Myrna L. Williams, as custodian for
                                        Scott Frasier Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        -------------------------------------
                                        Myrna L. Williams

                                        Myrna L. Williams, as custodian for
                                        Regan Rea-Anna Williams under the
                                        Minnesota Uniform Transfers to Minors
                                        Act

                                        -------------------------------------
                                        Myrna L. Williams

                                        -------------------------------------
                                        Scott Frasier Williams

                                        -------------------------------------
                                        Regan Rea-Anna Williams

                                        -------------------------------------
                                        Paul D. Cady

                                        -------------------------------------
                                        Sheldon Allen

                                        -------------------------------------
                                        Michael D. Lopata

                                        /s/ Satish C. Tiwari
                                        -------------------------------------
                                        Satish C. Tiwari

                                       S-7
<PAGE>

                                        /s/ William E. Shanley, Jr.
                                        -------------------------------------
                                        William E. Shanley, Jr.

                                        -------------------------------------
                                        Daniel P. Cady & Jane Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Steven M. Simon

                                        -------------------------------------
                                        Robert Pickens

                                        -------------------------------------
                                        Carol Braun-Wolfram

                                        -------------------------------------
                                        William S. Whitney

                                        -------------------------------------
                                        Scott Bussey

                                        -------------------------------------
                                        Susan E. Rivera & Thomas J. Rivera,
                                        as Joint Tenants

                                        -------------------------------------
                                        James Lawrence

                                      S-8
<PAGE>

                                        -------------------------------------
                                        William E. Shanley, Jr.

                                        /s/ Daniel P. Cady /s/ Jane Maland Cady
                                        -------------------------------------
                                        Daniel P. Cady & Jane Maland Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Steven M. Simon

                                        -------------------------------------
                                        Robert Pickens

                                        -------------------------------------
                                        Carol Braun-Wolfram

                                        -------------------------------------
                                        William S. Whitney

                                        -------------------------------------
                                        Scott Bussey

                                        -------------------------------------
                                        Susan E. Rivera & Thomas J. Rivera,
                                        as Joint Tenants

                                        -------------------------------------
                                        James Lawrence

                                      S-8
<PAGE>

                                        -------------------------------------
                                        William E. Shanley, Jr.

                                        -------------------------------------
                                        Daniel P. Cady & Jane Cady,
                                        as Joint Tenants

                                        /s/ Steven M. Simon
                                        -------------------------------------
                                        Steven M. Simon

                                        -------------------------------------
                                        Robert Pickens

                                        -------------------------------------
                                        Carol Braun-Wolfram

                                        -------------------------------------
                                        William S. Whitney

                                        -------------------------------------
                                        Scott Bussey

                                        -------------------------------------
                                        Susan E. Rivera & Thomas J. Rivera,
                                        as Joint Tenants

                                        -------------------------------------
                                        James Lawrence

                                      S-8
<PAGE>

                                        -------------------------------------
                                        William E. Shanley, Jr.

                                        -------------------------------------
                                        Daniel P. Cady & Jane Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Steven M. Simon

                                        /s/ Robert Pickens
                                        -------------------------------------
                                        Robert Pickens

                                        -------------------------------------
                                        Carol Braun-Wolfram

                                        -------------------------------------
                                        William S. Whitney

                                        -------------------------------------
                                        Scott Bussey

                                        -------------------------------------
                                        Susan E. Rivera & Thomas J. Rivera,
                                        as Joint Tenants

                                        -------------------------------------
                                        James Lawrence

                                      S-8
<PAGE>

                                        -------------------------------------
                                        William E. Shanley, Jr.

                                        -------------------------------------
                                        Daniel P. Cady & Jane Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Steven M. Simon

                                        -------------------------------------
                                        Robert Pickens

                                        /s/ Carol Braun-Wolfram
                                        -------------------------------------
                                        Carol Braun-Wolfram

                                        -------------------------------------
                                        William S. Whitney

                                        -------------------------------------
                                        Scott Bussey

                                        -------------------------------------
                                        Susan E. Rivera & Thomas J. Rivera,
                                        as Joint Tenants

                                        -------------------------------------
                                        James Lawrence

                                      S-8
<PAGE>

                                        -------------------------------------
                                        William E. Shanley, Jr.

                                        -------------------------------------
                                        Daniel P. Cady & Jane Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Steven M. Simon

                                        -------------------------------------
                                        Robert Pickens

                                        -------------------------------------
                                        Carol Braun-Wolfram

                                        /s/ William S. Whitney
                                        -------------------------------------
                                        William S. Whitney

                                        -------------------------------------
                                        Scott Bussey

                                        -------------------------------------
                                        Susan E. Rivera & Thomas J. Rivera,
                                        as Joint Tenants

                                        -------------------------------------
                                        James Lawrence

                                      S-8
<PAGE>

                                        -------------------------------------
                                        William E. Shanley, Jr.

                                        -------------------------------------
                                        Daniel P. Cady & Jane Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Steven M. Simon

                                        -------------------------------------
                                        Robert Pickens

                                        -------------------------------------
                                        Carol Braun-Wolfram

                                        -------------------------------------
                                        William S. Whitney

                                        /s/ Scott Bussey
                                        -------------------------------------
                                        Scott Bussey

                                        -------------------------------------
                                        Susan E. Rivera & Thomas J. Rivera,
                                        as Joint Tenants

                                        -------------------------------------
                                        James Lawrence

                                      S-8
<PAGE>

                                       -------------------------------------
                                       William E. Shanley, Jr.

                                       -------------------------------------
                                       Daniel P. Cady & Jane Cady,
                                       as Joint Tenants

                                       -------------------------------------
                                       Steven M. Simon

                                       -------------------------------------
                                       Robert Pickens

                                       -------------------------------------
                                       Carol Braun-Wolfram

                                       -------------------------------------
                                       William S. Whitney

                                       -------------------------------------
                                       Scott Bussey

                                       /s/ Susan E. Rivera  /s/ Thomas J. Rivera
                                       -------------------------------------
                                       Susan E. Rivera & Thomas J. Rivera,
                                       as Joint Tenants

                                       -------------------------------------
                                       James Lawrence

                                      S-8
<PAGE>

                                        -------------------------------------
                                        William E. Shanley, Jr.

                                        -------------------------------------
                                        Daniel P. Cady & Jane Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Steven M. Simon

                                        -------------------------------------
                                        Robert Pickens

                                        -------------------------------------
                                        Carol Braun-Wolfram

                                        -------------------------------------
                                        William S. Whitney

                                        -------------------------------------
                                        Scott Bussey

                                        -------------------------------------
                                        Susan E. Rivera & Thomas J. Rivera,
                                        as Joint Tenants

                                        /s/ James Lawrence
                                        -------------------------------------
                                        James Lawrence

                                      S-8
<PAGE>

                                        /s/ Michael A. Donahue
                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        /s/ David Patterson
                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        /s/ Bob Pentico
                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        /s/ Arlin Goldberg       9/17/99
                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        /s/ David G. Cady    /s/ Kim S. Cady
                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        /s/ Laurie Goldman
                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        /s/ Stephen Cady   /s/ Robin Cady
                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        /s/ Diane M. Petroff
                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        /s/ John M. Monson
                                        -------------------------------------
                                        John M. Monson

                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        -------------------------------------
                                        Michael A. Donahue

                                        -------------------------------------
                                        David Patterson

                                        -------------------------------------
                                        Bob Pentico

                                        -------------------------------------
                                        Arlin Goldberg

                                        -------------------------------------
                                        David G. Cady & Kim S. Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Laurie Goldman

                                        -------------------------------------
                                        Stephen Cady & Robin Cady,
                                        as Joint Tenants

                                        -------------------------------------
                                        Diane M. Petroff

                                        -------------------------------------
                                        John M. Monson

                                        /s/ Gary R. Nelson
                                        -------------------------------------
                                        Gary R. Nelson

                                      S-9
<PAGE>

                                        /s/ Toni T. Albani
                                        -------------------------------------
                                        Toni T. Albani

                                        -------------------------------------
                                        Greg W. Griffiths

                                        -------------------------------------
                                        Richard W. Smith

                                      S-10
<PAGE>

                                        -------------------------------------
                                        Toni T. Albani

                                        /s/ Greg W. Griffiths
                                        -------------------------------------
                                        Greg W. Griffiths

                                        -------------------------------------
                                        Richard W. Smith

                                      S-10
<PAGE>

                                        -------------------------------------
                                        Toni T. Albani

                                        /s/ Greg W. Griffiths
                                        -------------------------------------
                                        Greg W. Griffiths

                                        /s/ Richard W. Smith       9/29/99
                                        -------------------------------------
                                        Richard W. Smith

                                      S-10
<PAGE>

BAIN INVESTORS (continued):             SANKATY HIGH YIELD ASSET PARTNERS, L.P.

                                        By: /s/ Jonathan S. Lavine
                                           ----------------------------------
                                        Name: Jonathan S. Lavine
                                        Title: Managing Director

                                      S-11
<PAGE>

THE MINORITY STOCKHOLDERS (continued):

                                        BANCBOSTON ROBERTSON STEPHENS INC.

                                        By: /s/ Dana Welch
                                           ----------------------------------
                                        Name: Dana Welch
                                        Title: Chief Administrative Officer

                                        BAYVIEW 99 I, L.P.

                                        By: Bayview 99 GP, LLC,
                                              its General Partner

                                        By: /s/ Dana Welch
                                           ----------------------------------
                                        Name: Dana Welch
                                        Title: Chief Administrative Officer

                                        BAYVIEW 99 II, L.P.

                                        By: Bayview 99 GP, LLC,
                                              its General Partner

                                        By: /s/ Dana Welch
                                           ----------------------------------
                                        Name: Dana Welch
                                        Title: Chief Administrative Officer

                                        -------------------------------------
                                        Clark Callander

                                        -------------------------------------
                                        Richard Innenberg

                                      S-12
<PAGE>

THE MINORITY STOCKHOLDERS (continued):

                                        BANCBOSTON ROBERTSON STEPHENS INC.

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

                                        BAYVIEW 99 I, L.P.

                                        By: Bayview 99 GP, LLC,
                                              its General Partner

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

                                        BAYVIEW 99 II, L.P.

                                        By: Bayview 99 GP, LLC,
                                              its General Partner

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

                                        /s/ Clark Callander
                                        -------------------------------------
                                        Clark Callander

                                        /s/ Richard Innenberg
                                        -------------------------------------
                                        Richard Innenberg

                                      S-12
<PAGE>

                                   SCHEDULE I

                              MINORITY STOCKHOLDERS

Stolberg Partners, L.P.,
as Nominee for Gary E. Snyder, 780 Partners, Larry Walker, Lawrence Freeborg,
Peter Van Genderen and Nottingham & Spirk Design, Inc.

Artesian Capital Limited Partnership II

Artesian Management, Inc.

RWJ Co.

Moses Family Limited Partnership

Marvin Moses

Peter Fyhrie

J M Hixon Partners LLC

Minnesota Management Partners I

SIT Investment Associates, Inc.

Joseph Rubin & Marguerite Rubin, as Joint Tenants

Joseph Rubin

John R. Dennis & Maryanne Dennis, as Joint Tenants

John R. Dennis

Winslow W. Bennett & Adele W. Bennett, as Joint Tenants

Kathleen Brown Zerwas & James Zerwas, as Joint Tenants

Bayview Capital Group, Inc.

Ronald W. Mullins & Sara G. Mullins, as Joint Tenants

Sara G. Mullins

Timothy I. Maudlin

Richard E. Struthers

Ghyselinck & Associates LLC

Mullins Living Trust

George T. Holden

Joseph Alexander

Thomas W. Burton & Georgia L. Burton, as Joint Tenants

Burton Real Estate Advisors, Inc.

Clifford D. Williams

{Schedule I to Amended and Restated
Stockholder Agreement to Advanced Telecommunications, Inc.}
I-13

<PAGE>

Myrna L. Williams, as custodian for Scott Frasier Williams under the Minnesota
Uniform Transfers to Minors Act

Myrna L. Williams, as custodian for Regan Rea-Anna Williams under the Minnesota
Uniform Transfers to Minors Act

Scott Frasier Williams

Regan Rea-Anna Williams

Paul D. Cady

Sheldon Allen

Michael D. Lopata

Satish C. Tiwari

William E. Shanley, Jr.

Daniel P. Cady & Jane Maland Cady, as Joint Tenants

Steven M. Simon

Robert Pickens

Carol Braun-Wolfram

William S. Whitney

Scott Bussey

Susan E. Rivera & Thomas J. Rivera, as Joint Tenants

James Lawrence

Michael A. Donahue

David Patterson

Bob Pentico

Arlin Goldberg

David G. Cady & Kim S. Cady, as Joint Tenants

Laurie Goldman

Stephen Cady & Robin Cady, as Joint Tenants

Diane M. Petroff

John M. Monson

Gary R. Nelson

Toni T. Albani

Greg W. Griffiths

Richard A. Smith

BancBoston Robertson Stephens Inc.

Bayview 99 I, L.P.

Bayview 99 II, L.P.

Clark Callander

Richard Innenberg

{Schedule I to Amended and Restated
Stockholder Agreement of Advanced Telecommunications, Inc.}
I-14

<PAGE>

<TABLE>
<CAPTION>

                                                                 Common       Series A     Series B1    Series B2     Series B3
                                                                 Shares      Preferred     Preferred    Preferred     Preferred

<S>                                                              <C>         <C>           <C>          <C>             <C>
OUTSIDE SHAREHOLDERS
Stolberg Partners, L.P.                                           54,660     4,800,000     1,130,059    1,476,523       480,261
Bain Investors                                                        --            --            --           --            --
Stolberg, Meehan & Scano II, L.P.                                112,740            --            --           --       720,391
General Electric Capital Corp (warrants)                              --            --            --           --            --
Artesian Capital L.P. II                                         245,640            --            --           --            --
RWJ Co.                                                           97,320            --            --           --            --
Moses Family Limited Partnership                                  88,260            --            --           --            --
Marvin Moses                                                      17,640            --            --           --            --
Peter Fyhrie                                                      70,440            --            --           --            --
J.M. Hixon Partners LLC                                           64,620            --            --           --            --
Minnesota Management Partners I                                   42,180            --            --           --            --
Stolberg Partners, L.P., as Nominee for 780
  Partners, a Wisconsin general partnership                            0        13,740        13,739        9,843            --
Sit Investment Associates, Inc.                                   33,720            --            --           --            --
Michael Karangelen                                                    --            --            --           --            --
Stolberg Partners, L.P., as Nominee for Larry Walker                  --            --        13,739        9,843            --
Stolberg Partners, L.P., as Nominee for Lawrence Freeborg             --        10,320        13,739           --            --
Joseph & Marguerite Rubin                                          9,600            --            --           --            --
John & Maryanne Dennis                                            17,220            --            --           --            --
Gary Snyder                                                           --        13,740            --           --            --
Nottingham & Spirk                                                    --        13,740            --           --            --
Adele W. Bennett & Winslow W. Bennett                             12,600            --            --           --            --
Imperial Bank (warants)                                               --            --            --           --            --
Stolberg Partners, L.P., as Nominee for Peter Van Genderen            --            --            --        9,843            --
Kathleen Brown Zerwas & James Zerwas                               5,760            --            --           --            --
Bayview Capital Group, Inc.                                        6,660            --            --           --            --
Ronald W. Mullins & Sara G. Mullins                                6,300            --            --           --            --
Tim Maudlin                                                        4,140            --            --           --            --
Richard E. Struthers                                               3,360            --            --           --            --
Ghyselinck & Associates LLC                                        3,300            --            --           --            --
Mullins Living Trust                                               2,460            --            --           --            --
Artesian Management, Inc.                                          1,800            --            --           --            --
George T. Holden                                                   1,740            --            --           --            --
Joseph Alexander                                                   1,620            --            --           --            --

<CAPTION>
                                                                                                  TOTAL                PERCENT
                                                                Series B4      Series C        SHARES (Pre-           OWNERSHIP
                                                                Preferred     Preferred          Options)            (Pre-Option)

<S>                                                               <C>         <C>               <C>                     <C>
OUTSIDE SHAREHOLDERS
Stolberg Partners, L.P.                                           227,946     2,000,000         10,169,449              48.11%
Bain Investors                                                         --     7,080,000          7,080,000              33.49%
Stolberg, Meehan & Scano II, L.P.                                  43,029            --            876,160               4.14%
General Electric Capital Corp (warrants)                               --            --                  0               0.00%
Artesian Capital L.P. II                                               --            --            245,640               1.16%
RWJ Co.                                                                --            --             97,320               0.46%
Moses Family Limited Partnership                                       --            --             88,260               0.42%
Marvin Moses                                                           --            --             17,640               0.08%
Peter Fyhrie                                                           --            --             70,440               0.33%
J.M. Hixon Partners LLC                                                --            --             64,620               0.31%
Minnesota Management Partners I                                        --            --             42,180               0.20%
Stolberg Partners, L.P., as Nominee for 780
  Partners, a Wisconsin general partnership                         1,660            --             38,982               0.18%
Sit Investment Associates, Inc.                                        --            --             33,720               0.16%
Michael Karangelen                                                     --            --                  0               0.00%
Stolberg Partners, L.P., as Nominee for Larry Walker                1,660            --             25,242               0.12%
Stolberg Partners, L.P., as Nominee for Lawrence Freeborg           1,056            --             25,115               0.12%
Joseph & Marguerite Rubin                                              --            --              9,600               0.05%
John & Maryanne Dennis                                                 --            --             17,220               0.08%
Gary Snyder                                                            --            --             13,740               0.06%
Nottingham & Spirk                                                     --            --             13,740               0.06%
Adele W. Bennett & Winslow W. Bennett                                  --            --             12,600               0.06%
Imperial Bank (warants)                                                --            --                  0               0.00%
Stolberg Partners, L.P., as Nominee for Peter Van Genderen            604            --             10,447               0.05%
Kathleen Brown Zerwas & James Zerwas                                   --            --              5,760               0.03%
Bayview Capital Group, Inc.                                            --            --              6,660               0.03%
Ronald W. Mullins & Sara G. Mullins                                    --            --              6,300               0.03%
Tim Maudlin                                                            --            --              4,140               0.02%
Richard E. Struthers                                                   --            --              3,360               0.02%
Ghyselinck & Associates LLC                                            --            --              3,300               0.02%
Mullins Living Trust                                                   --            --              2,460               0.01%
Artesian Management, Inc.                                              --            --              1,800               0.01%
George T. Holden                                                       --            --              1,740               0.01%
Joseph Alexander                                                       --            --              1,620               0.01%

<CAPTION>
                                                               ATI Options/      Vested                                 TOTAL
                                                                 Warrants        Options/      Common Stock         SHARES (Post-
                                                                  (Total)        Warrants      Equivalents*        Options/Warrants)

<S>                                                             <C>              <C>            <C>                  <C>
OUTSIDE SHAREHOLDERS
Stolberg Partners, L.P.                                              --               --        10,169,449           10,169,449
Bain Investors                                                       --               --         7,080,000            7,080,000
Stolberg, Meehan & Scano II, L.P.                                    --               --           876,160              876,160
General Electric Capital Corp (warrants)                        428,500          428,500           428,500              428,500
Artesian Capital L.P. II                                             --               --           245,640              245,640
RWJ Co.                                                              --               --            97,320               97,320
Moses Family Limited Partnership                                     --               --            88,260               88,260
Marvin Moses                                                     58,800           19,620            37,260               76,440
Peter Fyhrie                                                         --               --            70,440               70,440
J.M. Hixon Partners LLC                                              --               --            64,620               64,620
Minnesota Management Partners I                                      --               --            42,180               42,180
Stolberg Partners, L.P., as Nominee for 780
  Partners, a Wisconsin general partnership                          --               --            38,982               38,982
Sit Investment Associates, Inc.                                      --               --            33,720               33,720
Michael Karangelen                                               29,160           29,160            29,160               29,160
Stolberg Partners, L.P., as Nominee for Larry Walker                 --               --            25,242               25,242
Stolberg Partners, L.P., as Nominee for Lawrence Freeborg            --               --            25,115               25,115
Joseph & Marguerite Rubin                                        15,480           15,480            25,080               25,080
John & Maryanne Dennis                                               --               --            17,220               17,220
Gary Snyder                                                          --               --            13,740               13,740
Nottingham & Spirk                                                   --               --            13,740               13,740
Adele W. Bennett & Winslow W. Bennett                                --               --            12,600               12,600
Imperial Bank (warants)                                          12,000           12,000            12,000               12,000
Stolberg Partners, L.P., as Nominee for Peter Van Genderen           --               --            10,447               10,447
Kathleen Brown Zerwas & James Zerwas                              7,860            7,860            13,620               13,620
Bayview Capital Group, Inc.                                          --               --             6,660                6,660
Ronald W. Mullins & Sara G. Mullins                                  --               --             6,300                6,300
Tim Maudlin                                                          --               --             4,140                4,140
Richard E. Struthers                                                 --               --             3,360                3,360
Ghyselinck & Associates LLC                                          --               --             3,300                3,300
Mullins Living Trust                                                 --               --             2,460                2,460
Artesian Management, Inc.                                            --               --             1,800                1,800
George T. Holden                                                     --               --             1,740                1,740
Joseph Alexander                                                     --               --             1,620                1,620
</TABLE>

<PAGE>

<TABLE>
<S>                                                              <C>         <C>           <C>          <C>           <C>
Thomas & Georgia Burton                                              840            --            --           --            --
Burton Real Estate Advisors, Inc.                                    300            --            --           --            --
-------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                         904,920     4,851,540     1,171,276    1,506,052     1,200,652

INSIDE SHAREHOLDERS
Cliff D. Williams                                                     --       406,980        76,893           --            --
Paul D. Cady                                                          --       280,000            --           --            --
Sheldon Allen                                                    206,120            --            --           --            --
Richard A. Smith                                                      --            --            --           --        96,052
Michael Lopata                                                   231,000            --            --           --            --
Satish C. Tiwari                                                      --        55,440        13,739        9,843            --
Bill Shanley                                                     123,060            --            --           --            --
Daniel P. Cady & Jane Maland Cady                                     --        90,000        20,596           --            --
Steven M. Simon                                                   16,200        60,000        13,730       22,147            --
Robert E. Pickens                                                     --         3,480         2,746           --            --
David A. Kunde                                                        --            --            --           --            --
Carol L. Braun-Wolfram                                                --        30,000        10,984        7,440            --
William Whitney                                                   77,040            --            --           --            --
Greg W. Griffiths                                                     --            --        13,730           --            --
Scott Bussey                                                      56,340            --            --           --            --
Thomas J. & Susan E. Rivera                                           --        30,000         4,119           --            --
Jim Lawrence                                                          --         7,140            --           --            --
Michael A. Donahue                                                    --         6,900         8,238           --            --
David A. Patterson                                                    --        10,320         2,746           --            --
Bob Pentico                                                       40,140            --            --           --            --
Arlin B. Goldberg                                                     --         6,900         2,746           --            --
David G. & Kim S. Cady                                                --        30,000         4,119           --            --
Laurie A. Goldman                                                     --        13,740         1,098          984            --
Stephen and Robin Cady                                                --        30,000            --           --            --
Jim Gordon                                                            --            --            --           --            --
Diane M. Petroff                                                      --            --         2,746           --            --
Lynne Powers                                                          --            --            --           --            --
Maureen Fahey                                                         --            --            --           --            --
Janet Darkenwald                                                      --            --            --           --            --
John M. Monson                                                        --            --            --        2,460            --
Gary R. Nelson                                                        --            --            --        1,968            --
Gary Sheppard                                                         --            --            --           --            --
Todd Kolb                                                             --            --            --           --            --
Dianna Dole                                                           --            --            --           --            --
Liz Ktytor                                                            --            --            --           --            --

<CAPTION>
<S>                                                         <C>         <C>            <C>                  <C>            <C>
Thomas & Georgia Burton                                          --            --             840            0.00%              --
Burton Real Estate Advisors, Inc.                                --            --             300            0.00%              --
------------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                    275,955     9,080,000      18,990,395           89.83%         551,800

INSIDE SHAREHOLDERS
Cliff D. Williams                                             5,920            --         489,793            2.32%         348,240
Paul D. Cady                                                     --            --         280,000            1.32%              --
Sheldon Allen                                                    --            --         206,120            0.98%          49,440
Richard A. Smith                                              1,824            --          97,876            0.46%         220,020
Michael Lopata                                                   --            --         231,000            1.09%          18,000
Satish C. Tiwari                                              1,660            --          80,682            0.38%          90,000
Bill Shanley                                                     --            --         123,060            0.58%          27,000
Daniel P. Cady & Jane Maland Cady                             1,587            --         112,183            0.53%          27,300
Steven M. Simon                                               2,371            --         114,448            0.54%           9,000
Robert E. Pickens                                               211            --           6,437            0.03%          85,200
David A. Kunde                                                   --            --               0            0.00%          90,000
Carol L. Braun-Wolfram                                        1,290            --          49,714            0.24%          37,200
William Whitney                                                  --            --          77,040            0.36%           9,000
Greg W. Griffiths                                             1,054            --          14,784            0.07%          51,060
Scott Bussey                                                     --            --          56,340            0.27%           9,000
Thomas J. & Susan E. Rivera                                     317            --          34,436            0.16%          27,300
Jim Lawrence                                                     --            --           7,140            0.03%          52,800
Michael A. Donahue                                              635            --          15,773            0.07%          37,200
David A. Patterson                                              211            --          13,277            0.06%          37,200
Bob Pentico                                                      --            --          40,140            0.19%           9,000
Arlin B. Goldberg                                               211            --           9,857            0.05%          37,200
David G. & Kim S. Cady                                          317            --          34,436            0.16%           9,000
Laurie A. Goldman                                               143            --          15,965            0.08%          19,200
Stephen and Robin Cady                                           --            --          30,000            0.14%              --
Jim Gordon                                                       --            --               0            0.00%          24,000
Diane M. Petroff                                                211            --           2,957            0.01%          19,200
Lynne Powers                                                     --            --               0            0.00%          19,200
Maureen Fahey                                                    --            --               0            0.00%          19,200
Janet Darkenwald                                                 --            --               0            0.00%          15,000
John M. Monson                                                  145            --           2,605            0.01%           9,000
Gary R. Nelson                                                  116            --           2,084            0.01%           9,000
Gary Sheppard                                                    --            --               0            0.00%           9,000
Todd Kolb                                                        --            --               0            0.00%           9,000
Dianna Dole                                                      --            --               0            0.00%           9,000
Liz Ktytor                                                       --            --               0            0.00%           9,000

<CAPTION>
<S>                                                       <C>                <C>                  <C>
Thomas & Georgia Burton                                        --                   840                  840
Burton Real Estate Advisors, Inc.                              --                   300                  300
------------------------------------------------------------------------------------------------------------
SUBTOTAL                                                  512,620            19,503,015           19,542,195

INSIDE SHAREHOLDERS
Cliff D. Williams                                         208,980               698,773              838,033
Paul D. Cady                                                   --               280,000              280,000
Sheldon Allen                                              29,700               235,820              255,560
Richard A. Smith                                           46,740               144,616              317,896
Michael Lopata                                              7,200               238,200              249,000
Satish C. Tiwari                                               --                80,682              170,682
Bill Shanley                                               10,800               133,860              150,060
Daniel P. Cady & Jane Maland Cady                          16,380               128,563              139,483
Steven M. Simon                                             5,400               119,848              123,448
Robert E. Pickens                                          33,720                40,157               91,637
David A. Kunde                                                 --                     0               90,000
Carol L. Braun-Wolfram                                     19,620                69,334               86,914
William Whitney                                             3,600                80,640               86,040
Greg W. Griffiths                                          30,600                45,384               65,844
Scott Bussey                                                5,400                61,740               65,340
Thomas J. & Susan E. Rivera                                16,380                50,816               61,736
Jim Lawrence                                               21,120                28,260               59,940
Michael A. Donahue                                         19,620                35,393               52,973
David A. Patterson                                         19,620                32,897               50,477
Bob Pentico                                                 5,400                45,540               49,140
Arlin B. Goldberg                                          19,620                29,477               47,057
David G. & Kim S. Cady                                      5,400                39,836               43,436
Laurie A. Goldman                                          11,520                27,485               35,165
Stephen and Robin Cady                                         --                30,000               30,000
Jim Gordon                                                  4,800                 4,800               24,000
Diane M. Petroff                                            7,680                10,637               22,157
Lynne Powers                                                3,840                 3,840               19,200
Maureen Fahey                                               7,680                 7,680               19,200
Janet Darkenwald                                            3,000                 3,000               15,000
John M. Monson                                              2,700                 5,305               11,605
Gary R. Nelson                                              3,600                 5,684               11,084
Gary Sheppard                                               5,400                 5,400                9,000
Todd Kolb                                                   5,400                 5,400                9,000
Dianna Dole                                                 1,800                 1,800                9,000
Liz Ktytor                                                  1,800                 1,800                9,000
</TABLE>

<PAGE>

<TABLE>
<S>                         <C>           <C>           <C>          <C>           <C>             <C>         <C>
Julie Dzubay                       --            --            --           --            --            --            --
Michele Speranza                   --            --            --           --            --            --            --
Tammy Anderson (Gottas)            --            --            --           --            --            --            --
Angela McGregor                    --            --            --           --            --            --            --
Bob Thompson                       --            --            --           --            --            --            --
Judith Proell                      --            --            --           --            --            --            --
Elaine Britt                       --            --            --           --            --            --            --
Mark Hechtl                        --            --            --           --            --            --            --
Chris Ammon                        --            --            --           --            --            --            --
Pete Desrocher                     --            --            --           --            --            --            --
Alan Keck                          --            --            --           --            --            --            --
Sally L. Hay                       --            --            --           --            --            --            --
Tom Hoffman                        --            --            --           --            --            --            --
Jeff Cammerrer                     --            --            --           --            --            --            --
Chris Frederiksen                  --            --            --           --            --            --            --
Toni T. Albani                     --            --            --        1,260            --            76            --
D.J. Ingwaldson                    --            --            --           --            --            --            --
Tracy Householder                  --            --            --           --            --            --            --
Corky Raines                       --            --            --           --            --            --            --
Brian Johnson                      --            --            --           --            --            --            --
Greg Luvelle                       --            --            --           --            --            --            --
Darlene Langdon                    --            --            --           --            --            --            --
Mary Braun                         --            --            --           --            --            --            --
Ron Davis                          --            --            --           --            --            --            --
Karen Nystrom                      --            --            --           --            --            --            --
William Flores                     --            --            --           --            --            --            --
------------------------------------------------------------------------------------------------------------------------
SUBTOTAL                      749,900     1,060,900       178,230       46,102        96,052        18,299            --
========================================================================================================================
GRAND TOTAL                 1,654,820     5,912,440     1,349,506    1,552,154     1,296,704       294,254     9,080,000

<CAPTION>
<S>                          <C>                    <C>           <C>              <C>           <C>                  <C>
Julie Dzubay                          0               0.00%           9,000            1,800          1,800                9,000
Michele Speranza                      0               0.00%           9,000            1,800          1,800                9,000
Tammy Anderson (Gottas)               0               0.00%           9,000            3,600          3,600                9,000
Angela McGregor                       0               0.00%           9,000            1,800          1,800                9,000
Bob Thompson                          0               0.00%           9,000            1,800          1,800                9,000
Judith Proell                         0               0.00%           9,000            1,800          1,800                9,000
Elaine Britt                          0               0.00%           9,000            3,000          3,000                9,000
Mark Hechtl                           0               0.00%           9,000            3,000          3,000                9,000
Chris Ammon                           0               0.00%           9,000            3,000          3,000                9,000
Pete Desrocher                        0               0.00%           9,000            3,600          3,600                9,000
Anlan Keck                            0               0.00%           9,000            1,800          1,800                9,000
Sally L. Hay                          0               0.00%           9,000            1,800          1,800                9,000
Tom Hoffman                           0               0.00%           9,000            3,600          3,600                9,000
Jeff Cammerver                        0               0.00%           9,000            3,600          3,600                9,000
Chris Frederiksen                     0               0.00%           9,000            1,800          1,800                9,000
Toni T. Albani                    1,336               0.01%           5,400            5,400          6,736                6,736
D.J. Ingwaldson                       0               0.00%           4,500            2,700          2,700                4,500
Tracy Householder                     0               0.00%           4,500            2,700          2,700                4,500
Corky Raines                          0               0.00%           4,500              900            900                4,500
Brian Johnson                         0               0.00%           4,500              900            900                4,500
Greg Luvelle                          0               0.00%           4,500              900            900                4,500
Darlene Langdon                       0               0.00%           4,500              900            900                4,500
Mary Braun                            0               0.00%           4,500              900            900                4,500
Ron Davis                             0               0.00%           4,500              900            900                4,500
Karen Nystrom                         0               0.00%           3,000              600            600                3,000
William Flores                        0               0.00%           1,200              240            240                1,200
--------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL                      2,149,483              10.17%       1,630,560          639,360      2,788,843            3,780,043
================================================================================================================================
GRAND TOTAL                  21,139,878             100.00%       2,182,360        1,151,980     22,291,858           23,322,238
</TABLE><PAGE>
                                                                  Exhibit 10.1.2

                                  BAKER CENTER
                             LEASE OF OFFICE SPACE

DATE:              AUGUST 14, 1996

BETWEEN:           ST. PAUL PROPERTIES, INC.
(address)          435 Peavey Building
                   730 Second Avenue South
                   Minneapolis, MN 55402                          ("Landlord")

AND                ADVANCED TELECOMMUNICATIONS, INC.
(address)          410 Peavey Building
                   730 Second Avenue South
                   Minneapolis, MN 55402

                                                                  ("Tenant")

FOR PREMISES IN: Peavey Building, Minneapolis, MN

LANDLORD AND TENANT, in consideration of the covenants herein contained, hereby
agree as follows:

ARTICLE 1.00 DEFINITIONS

1.01  Definitions In this Lease:

      (a)   "Annual Rent" means the amount payable by Tenant to Landlord in
            respect of each year of the Term under Article 4.01.

      (b)   "Article" means an article of this Lease.

      (c)   "Commencement Date" means the date set forth in Article 3.01 as the
            first day of the Term.

      (d)   "Exhibit A" means the plan(s) attached hereto as Exhibit A.

      (e)   "Exhibit B" means the provisions relating to Occupancy Costs and
            other matters attached hereto as Exhibit B.

      (f)   "Exhibit C" means the Rules and Regulations attached hereto as
            Exhibit C.

      (g)   "Expiration Date" means the date set forth in Article 3.01 as the
            last day of the Term.

      (h)   "Fiscal Year" means the calendar year unless Landlord elects by
            thirty (30) days' notice to Tenant that Fiscal Year shall mean a
            twelve-month period from time to time determined by Landlord, with
            concurrence of the appropriate taxation authorities, at the end of
            which Landlord's books are balanced for auditing or taxation
            purposes.

      (i)   "Lease" means this lease, Exhibits A, B, C and (if attached) D to
            this lease, and every properly executed instrument which by its
            terms amends, modifies or supplements this lease.

      (j)   "Occupancy Costs" means amounts payable by Tenant to Landlord under
            Article 4.02.

      (k)   "Other Charges" means amounts payable by Tenant to Landlord under
            Article 4.03.

                                       1
<PAGE>

      (l)   "Premises" means the area on the 4th floor of the Building as
            indicated on Exhibit A. hereby deemed to contain 3.337 square feet,
            plus for calculation of Rent only, an additional 400 square feet of
            unallocated space in the Building.

      (m)   "Rent" means the aggregate of all amounts payable by Tenant to
            Landlord under Articles 4.01, 4.02 and 4.03.

      (n)   "Term" means the period of time set out in Article 3.01.

      Other words and phrases are defined in Exhibit B.

ARTICLE 2.00 GRANT OF LEASE

2.01  Grant  Landlord hereby demises and leases the Premises to Tenant, and
      Tenant hereby leases and accepts the Premises from Landlord, to have and
      to hold during the Term, subject to the terms, covenants and conditions of
      this Lease.

2.02  Quiet Enjoyment  So long as tenant observes and performs all of the terms,
      covenants and conditions to be observed and performed by Tenant under this
      Lease, tenant shall quietly have, hold and enjoy possession of the
      Premises during the Term subject to the terms and conditions of this
      Lease.

2.03  Covenants of Landlord and Tenant  Landlord covenants to observe and
      perform all of the terms and conditions to be observed and performed by
      Landlord under this Lease. Tenant covenants to pay the Rent when due under
      this Lease, and to observe and perform all of the terms and conditions to
      be observed and performed by Tenant under this Lease.

ARTICLE 3.00 TERM AND POSSESSION

3.01  Term Notwithstanding  Articles 3.02 and 3.03, the term of this Lease shall
      be five (5) years, sixteen (16) days, beginning on the fifteenth day of
      the month of September, 1996 and ending on the last day of the month of
      September, 2001, unless terminated earlier as provided in this Lease.

3.02  Early Occupancy  If Tenant begins to conduct business in all or any
      portion of the Premises before the Commencement Date, Tenant shall pay to
      Landlord on the Commencement Date a rental in respect thereof for the
      period from the date Tenant begins to conduct business therein to the
      Commencement Date, which rental shall be that proportion of Rent for one
      calendar year which the number of days in such period bears to 365. Except
      where clearly inappropriate, the provisions of this Lease shall be
      applicable during such period.

3.03  Delayed Possession  If Landlord is delayed in delivering possession of all
      or any portion of the Premises on the date (not later than one year after
      the Commencement Date) when Landlord delivers possession of all of the
      Premises. This Lease shall not be void or voidable nor shall Landlord be
      liable to Tenant for any loss or damage resulting from any delay in
      delivering possession of the Premises to Tenant nor shall any delay be
      construed in any way to affect the Expiration Date, but unless such delay
      is principally caused by or attributable to Tenant, its servants, agents
      or independent contractors, no Rent shall be payable by Tenant for the
      period prior to the date on which Landlord can so deliver possession of
      all of the Premises, unless Tenant elects to take possession of a portion
      of the Premises whereupon Rent shall be payable in respect of that portion
      from the date such possession is so taken.

3.04  Acceptance of Premises  Taking possession of all or any portion of the
      Premises by Tenant shall be rebuttal evidence as against Tenant that the
      Premises or such portion thereof are in satisfactory condition on the date
      of taking possession.

ARTICLE 4.00 RENT AND OCCUPANCY COSTS

4.01  Annual Rent  Tenant shall pay to Landlord as Annual Rent for the Premises
      the annual sum of twenty-two thousand four hundred twenty-two dollars and
      no/100 ($22,422.00) in respect to the period from and including the
      Commencement Date through September 30, 1997; twenty-six thousand one
      hundred fifty-nine dollars and no/100 ($26,159.00) in respect to the
      period October 1, 1997 through September 30, 1998; thirty-three thousand
      six hundred thirty-three dollars and no/l00 ($33,633.00) in respect to the
      period October 1, 1998 through September 30, 1999; and forty-four thousand
      eight hundred forty-four dollars and no/l00 ($44,844.00) in respect to the
      period October 1, 1999 through September 30, 2001.

                                       2
<PAGE>

      payable in advance and without notice in monthly installments (each equal
      to one-twelfth of the Annual Rent) on the Commencement Date and on the
      first day of each calendar month thereafter during the term.

4.02  Occupancy Costs  Tenant shall pay to Landlord, at the times and in the
      manner provided in Article 4.06, the Occupancy Costs (if any) determined
      under Exhibit B.

4.03  Other Charges  Tenant shall pay to Landlord, at the times and in the
      manner provided in this Lease or, if not so provided, as reasonably
      required by Landlord, all amounts (other than that payable under Articles
      4.01 and 4.02 which are payable by Tenant to Landlord under this Lease).

4.04  Payment of Rent-General  All amounts payable by Tenant to Landlord under
      this Lease shall be deemed to be Rent and shall be payable and recoverable
      as Rent in the manner herein provided, and Landlord shall have all rights
      against Tenant for default in any such payment as in the case of arrears
      of rent. Rent shall be paid to Landlord without deduction or set-off in
      legal tender of the jurisdiction in which the Building is located, at the
      address of Landlord as set forth in the beginning of this Lease, or to
      such other person or at such other address as Landlord may from time to
      time designate in writing. Tenant's obligation to pay Rent shall survive
      the expiration or earlier termination of this Lease.

4.05  Annual Rent - Partial Months If the Term begins on a day other than the
      first day of a calendar month or ends on a day other than the last day of
      a calendar month, the installment of Annual Rent payable in respect of
      that calendar month shall be that proportion of the Annual Rent which the
      number of days in that calendar month which fall within the Term bears to
      365.

4.06  Payment - Occupancy Costs

      (a)   Unless delayed by causes beyond Landlord's reasonable control, prior
            to the Commencement Date and the beginning of each Fiscal Year
            thereafter, Landlord shall compute and deliver to Tenant a bona fide
            estimate of Occupancy Costs for the appropriate Fiscal Year. Without
            further notice Tenant shall pay to Landlord in monthly installments
            one-twelfth of such estimate simultaneously with Tenant's payments
            of Annual Rent during such Fiscal Year.

      (b)   Landlord may at any time during a Fiscal Year compute and deliver to
            Tenant a revised bona fide estimate of Occupancy Costs for that
            Fiscal Year, together with Landlord's determination of the
            adjustment to Tenant's monthly installments of Occupancy Costs for
            that Fiscal Year to fully recover the revised estimate of Occupancy
            Costs in that Fiscal Year. Without further notice, Tenant shall pay
            to Landlord monthly installments of Occupancy Costs in accordance
            with that adjustment.

      (c)   Unless delayed by causes beyond Landlord's reasonable control,
            Landlord shall deliver to Tenant within one hundred twenty (120)
            days after the end of each Fiscal Year a written statement (the
            "statement") setting out in reasonable detail the amount of
            Occupancy Costs for such Fiscal Year and certified to be correct by
            an officer of Landlord. If the aggregate of monthly installments of
            Occupancy Costs actually paid by Tenant to Landlord during such
            Fiscal Year differs from the amount of Occupancy Costs payable for
            such Fiscal Year under Article 4.02, Tenant shall pay, or if Tenant
            is not then in default under this Lease beyond the applicable grace
            period, Landlord shall refund the difference (as the case may be)
            without interest within thirty (30) days after the date of delivery
            of the Statement.

      (d)   If Landlord and Tenant disagree on the accuracy of Occupancy Costs
            as set forth in the Statement, Tenant shall nevertheless make
            payment in accordance with any notice given by Landlord, and
            Landlord shall immediately refer the disagreement to a public
            accountant, architect, insurance broker or other professional
            consultant selected by Landlord and approved by Tenant, which
            approval will not be unreasonably withheld, who shall be deemed to
            be acting as an expert and not an arbitrator, and a determination
            signed by the selected expert shall be final and binding on both
            Landlord and Tenant. Any adjustment required to any previous payment
            made by Tenant or Landlord by reason of any such decision shall be
            made within fourteen (14) days thereof, and the party required to
            make payment under such adjustment shall bear all costs of the
            expert making such decision, except where that payment represents 3%
            or less of the Occupancy Costs that were the subject of the
            disagreement in which case Tenant shall bear all costs.

                                       3
<PAGE>

      (e)   Neither party may claim re-adjustment in respect of occupancy Costs
            for a Fiscal Year if based upon any error of computation or
            allocation except by notice delivered to the other party within six
            months after the date of delivery of the Statement.

ARTICLE 5.00 USE OF PREMISES

5.01  Use  The Premises shall be used and occupied only as executive,
      administrative, and general business offices of Tenant or for such other
      purpose as Landlord may specifically authorize in writing.

5.02  Compliance  The Premises shall be used and occupied in a prudent, safe,
      careful and proper manner and in such manner as not to contravene any
      present or future governmental or quasi-governmental laws in force or
      regulations or orders, or to make void or voidable any insurance on the
      Building. If, due to Tenant's non-compliance with the foregoing sentence,
      Landlord's insurance carrier(s) reasonably imposes an increased or extra
      premium for Landlord's insurance on the Building, Tenant shall pay such
      increased or extra premium. If, due solely to Tenant's use of the
      Premises, improvements are necessary to comply with any of the foregoing
      or with the requirements of insurance carriers, Landlord, or Tenant at
      Landlord's election, shall make such improvements and, in either event,
      Tenant shall pay the entire cost thereof. Any such improvements by Tenant
      shall comply with the provisions of Article 7.04.

5.03  Abandonment  Tenant shall not vacate or abandon the Premises at any time
      during the Term without Landlord's prior written consent.

5.04  Nuisance  Tenant shall not cause or maintain any nuisance in or about the
      Premises, and shall keep the Premises free of debris, rodents, vermin and
      anything of a dangerous, noxious or offensive nature or which could create
      a fire hazard (through undue load on electrical circuits or otherwise) or
      undue vibration, heat, odor or noise.

ARTICLE 6.00 SERVICES, MAINTENANCE, REPAIR AND ALTERATIONS BY Landlord

6.01  Operation of Building  During the Term Landlord shall operate and maintain
      the Building in accordance with all applicable laws and regulations and
      with standards from time to time prevailing for first-class office
      buildings in the area in which the Building is located and, subject to
      participation by Tenant by payment of Occupancy Costs under Article 4.02,
      shall provide the services set out in Articles 6.02 and 6.03.

6.02  Services to Premises  Landlord shall provide in the Premises:

      (a)   heat, ventilation and cooling as required for the comfortable use
            and occupancy of the Premises during normal business hours,

      (b)   janitor services, including window washing. Monday through Friday,
            excluding holidays, as reasonably required to keep the Premises in a
            clean and wholesome condition, provided that Tenant shall leave the
            Premises in a reasonably orderly condition at the end of each
            business day, and

      (c)   maintenance, repair and replacement as set out in Article 6.04.

6.03 Building Services  Landlord shall provide in the Building:

      (a)   domestic running water and necessary supplies in washrooms
            sufficient for the normal use thereof by occupants in the Building.

      (b)   access to and egress from the Premises, including elevator or
            escalator service if included in the Building,

      (c)   heat, ventilation, cooling, lighting, electric power, domestic
            running water, and janitor service in those areas of the Building
            from time to time designated by Landlord for use during normal
            business hours by Tenant in common with all tenants and other
            persons in the Building but under the exclusive control of Landlord,

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<PAGE>

      (d)   a general directory board on which Tenant shall be entitled to have
            shown, provided that Landlord shall have exclusive control thereof
            and of the space thereon to be allocated to each tenant, and

      (e)   maintenance, repair, and replacement as set out in Article 6.04.

6.04  Maintenance, Repair and Replacement  Landlord shall operate, maintain,
      repair and replace the systems, facilities and equipment necessary for the
      proper operation of the Building and for provision of Landlord's services
      under Articles 6.02 and 6.03 (except such systems, facilities and
      equipment as may be installed by or be the property of Tenant) and shall
      be responsible for and shall maintain and repair the foundations,
      structure and roof of the Building and repair damage to the Building which
      Landlord is obligated to insure against under Article 9.00, provided that

      (a)   if all or part of such systems, facilities or equipment is
            destroyed, damaged, impaired or taken by condemnation, Landlord
            shall have a reasonable time in which to complete the necessary
            repair or replacement, and during that time shall be required only
            to maintain such services as are reasonably possible in the
            circumstances, and

      (b)   Landlord may temporarily reduce or discontinue such services or any
            of them at such times as may be reasonably necessary due to causes
            (except lack of funds) beyond the reasonable control of Landlord.

6.05  Additional Services

      (a)   If from time to time requested in writing by Tenant and to the
            extent that it is reasonably able, Landlord shall endeavor to
            provide in the Premises services in addition to those set out in
            Article 6.02, provided that Tenant shall within ten (10) days of
            receipt of any statement for any such additional service pay
            Landlord therefore at such rates as Landlord may from time to time
            reasonably establish. So long as Landlord is entitled to terminate
            this Lease, Landlord may terminate any such additional services.

      (b)   If electricity is provided by Landlord under Article 7.02(b),
            Landlord will pay the cost thereof and will apportion such costs
            among the users based on meter readings for the Premises or, if the
            Premises are not separately metered, according to the proportion of
            each user's floor space to the total floor space of all users on a
            common meter with the Premises. Upon receipt of Landlord's statement
            of apportionment, Tenant shall reimburse Landlord for the amounts
            which Tenant is shown thereon to be liable to Landlord.

      (c)   Tenant shall not without Landlord's prior written consent, which
            consent will not be unreasonably withheld, install in the Premises
            equipment (including telephone equipment) which generates sufficient
            heat to affect the temperature otherwise maintained in the Premises
            by the air conditioning system as normally operated. If Tenant
            installs such equipment, Landlord may install supplementary air
            conditioning units, facilities or services in the Premises, or
            modify its air conditioning system, as may in Landlords reasonable
            opinion be required to maintain proper temperature levels, and
            Tenant shall pay Landlord the cost thereof (including, without
            limitation, installation, operation and maintenance expenses) within
            ten (10) days of receipt of notice from Landlord.

      (d)   If Landlord shall from time to time reasonably determine that the
            use of electricity or any other utility or service in the Premises
            is disproportionate to the use of other tenants, Landlord may
            separately charge Tenant for the excess costs attributable to such
            disproportionate use. In the event of such determination, Landlord
            may also install and maintain, at Tenant's expense, metering devices
            for determining the use of any such utility or service in the
            Premises.

6.06  Alterations by Landlord  Landlord may from time to time

      (a)   make repairs, replacements, changes or additions to the structure,
            systems, facilities and equipment in the Premises where necessary to
            serve the Premises or other parts of the Building or Project.

      (b)   make changes in or additions to any part of the Building or Project
            not in or forming part of the Premises and

      (c)   change or alter the location of those areas of the Building, or
            Project from time to time designated by Landlord for use during
            Normal Business Hours for the Building by Tenant in common with all
            tenants and other persons in the Building but under the exclusive
            control of Landlord,

                                       5
<PAGE>

      provided that, subject to Article 6.04, Landlord shall not disturb or
      interfere with Tenant's use of the Premises and operation of its business
      any more than is reasonably necessary under the circumstances and shall
      repair any damage to the Premises caused thereby.

6.07  Access by Landlord  Tenant shall permit Landlord to enter the Premises
      outside normal business hours and during normal business hours where such
      will not reasonably disturb or interfere with Tenant's use of the Premises
      and operation of his business, to examine and inspect the Premises and
      show the Premises to any prospective purchaser or mortgagee of the
      Building or person wishing to lease them, to provide services or make
      repairs, replacements, changes or alterations as set out in this Lease,
      and to take such steps as Landlord may deem necessary for the safety,
      improvement or preservation of the Premises, the Building, or the Project.
      Landlord shall, to the extent reasonably possible, consult with or give
      notice to Tenant prior to such entry, and no such entry shall constitute
      an eviction or entitle Tenant to any abatement of Rent.

6.08  Energy, Conservation and Security Policies  Landlord shall be deemed to
      have observed and performed the terms and conditions to be performed by
      Landlord under this Lease, including those relating to the provision of
      utilities and services, if in doing so it acts in accordance with a
      directive, policy or request of a governmental or quasi-governmental
      authority serving the public interest in the fields of energy,
      conservation or security.

6.09  Limitation

      (a)   Landlord shall use reasonable diligence in carrying out its
            obligations under Article 6.00, but shall not be liable under any
            circumstances for any consequential damage to any person or property
            for any failure to carry out such obligations.

      (b)   No reduction or discontinuance of any services under this Article
            6.00 shall be construed as an eviction of Tenant or (except as
            specifically provided in this Lease) release Tenant from any
            obligation of Tenant under this Lease.

      (c)   Nothing contained in this Article 6.00 shall derogate from the
            provisions of Article 15.00 or Article 16.00.

ARTICLE 7.00 UTILITIES, MAINTENANCE, REPAIR AND ALTERATIONS BY TENANT

7.01  Condition of Premises  Except to the extent to Landlord is specifically
      responsible therefore under this Lease, Tenant shall maintain the Premises
      and all improvements therein in good order and condition, including

      (a)   repainting and redecorating the Premises and cleaning drapes and
            carpets at reasonable intervals as needed, and

      (b)   making repairs, replacements and alterations as needed, including
            those necessary to comply with the requirements of any governmental
            or quasi-governmental authority having jurisdiction over the
            Premises.

7.02  Electricity

      (a)   During the term, Tenant shall provide in the Premises at its own
            expense all electricity required in the Premises, except electricity
            required for such heat, ventilation and cooling of the Premises as
            shall be the Landlord's responsibility under Article 6.02(a).

      (b)   If during the Term the electrical utility serving the Building
            ceases to make electricity directly available to Tenant, Landlord
            shall connect Tenant's electrical service to the Building system at
            Tenant's cost and expense and, to the extent such utility makes
            electricity available to Landlord, shall provide electrical power in
            the Premises as an additional service in accordance with the
            conditions of Article 6.05.

7.03  Failure to Maintain Premises  If Tenant fails to perform any obligation
      under Article 7.01, then on not less than ten (10) days' notice to Tenant
      (or without notice in an emergency). Landlord may enter the Premises and
      perform such obligation without liability to Tenant for any loss or damage
      to Tenant thereby incurred, and Tenant shall pay Landlord for the cost
      thereof, plus 20% of such cost for overhead and supervision, within ten
      (10) days of notice from Landlord of such cost.

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<PAGE>

7.04  Alterations by Tenant  Tenant may from time to time at its own expense
      make non-structural changes, additions and improvements in the Premises to
      better adapt the same to its business, provided that any such change,
      addition or improvement shall

      (a)   comply with the requirements of any governmental or
            quasi-governmental authority having jurisdiction.

      (b)   be made only with the prior written consent of Landlord, which
            consent will not be unreasonably withheld,

      (c)   equal or exceed the then current standard for the Building, and

      (d)   be carried out only by persons selected by Tenant and approved in
            writing by Landlord, which approval will not be unreasonably
            withheld, who shall if required by Landlord deliver to Landlord
            before commencement of the work performance and payment bonds as
            well as proof of worker's compensation and public liability and
            property damage insurance coverage, with Landlord names as an
            additional insured, in amounts with companies, and in forms
            reasonably satisfactory to Landlord, which shall remain in effect
            during the entire period in which the work will be carried out.

            Any increase in property taxes on or fire or casualty insurance
            premiums for the Building attributable to such change, addition or
            improvements shall be borne by Tenant.

7.05  Trade Fixtures and Personal Property  Tenant may install in the Premises
      its usual trade fixtures and personal property in a proper manner,
      provided that no such installation shall interfere with or damage the
      mechanical or electrical systems or the structure of the Building. Trade
      fixtures and personal property installed in the Premises by Tenant may be
      removed from the Premises

      (a)   from time to time in the ordinary course of Tenant's business or in
            the course of reconstruction, renovation or alteration of the
            Premises by Tenant, and

      (b)   during a reasonable period prior to the expiration of the Term,

      provided that Tenant conducts such installation and removal in a manner
      which does not unreasonably interfere with the rights of other tenants in
      the Building and otherwise in compliance with any Rules and Regulations
      promulgated under Article 14.00, and Tenant promptly repairs at its own
      expense any damage to the Premises, Building or Project resulting from
      such installation and removal.

7.06  Mechanic Liens  Tenant shall pay before delinquency all costs for work
      done or caused to be done by Tenant in the Premises which could result in
      any lien or encumbrance on Landlord's interest in the land and Building or
      any part thereof or on Tenant's interest in the Premises, shall keep the
      title to the Land and Building and every part thereof free and clear of
      any lien or encumbrance in respect of such work and shall indemnify and
      hold harmless Landlord against any claim, loss, cost, demand and legal or
      other expense, whether in respect of any lien or otherwise, arising out of
      the supply of materials, services or labor for such work. Tenant shall
      immediately notify Landlord of any such lien, claim of lien or other
      action of which it has or reasonably should have knowledge and which
      affects the title to the Land or Building or any part thereof or to
      Tenant's interest in the Premises, and shall cause the same to be removed
      within five (5) days (or such additional time as Landlord may reasonably
      consent to in writing) failing which Landlord may take such action as
      Landlord deems necessary to remove the same and the entire cost thereof
      shall be immediately due and payable by Tenant to Landlord.

7.07  Signs  Any sign, lettering or design of Tenant which is visible from the
      exterior of the Premises shall be a Tenant's expense and subject to
      approval by Landlord, and shall conform to the uniform pattern of
      identification signs for tenants in the Building as prescribed by
      Landlord, Tenant shall not inscribe or affix any sign, lettering or design
      in the Premises or Building which is visible from the exterior of the
      Building.

ARTICLE 8.00 TAXES

8.01  Landlord's Taxes  Landlord shall pay before delinquency (with
      participation by Tenant by payment of Occupancy Costs under Article 4.02)
      every real estate tax, assessment, license fee and other charge, excepting
      Tenant's Taxes under Article 4.02) every real estate tax, assessment,
      license fee and other charge, excepting Tenant's Taxes under Article 8.02
      which is imposed,

                                       7
<PAGE>

      levied, assessed or charged by any governmental or quasi-governmental
      authority having jurisdiction and which is payable in respect of the Term
      upon or on account of the Land or Building.

8.02  Tenant's Taxes  Tenant shall pay before delinquency every tax, assessment,
      license fee, excise and other charge, however described, which is imposed,
      levied, assessed or charged by any governmental or quasi-governmental
      authority having jurisdiction and which is payable in respect of the Term
      upon or on account of

      (a)   operations at, occupancy of, or conduct of business in or from the
            Premises by or with the permission of Tenant,

      (b)   fixtures or personal property in the Premises which do not belong to
            the Landlord, and

      (c)   the Rent paid or payable by Tenant to Landlord for the Premises or
            for the use and occupancy of all or any part thereof;

      provided that if it is a rent or similar tax and Landlord so elects by
      notice to Tenant, Tenant shall add any amounts payable under this Article
      8.02 to the monthly installments of Annual Rent payable under Article 4.01
      and Landlord shall remit such amounts to the appropriate authorities.

8.03  Right to Contest  Landlord and Tenant shall each have the right to contest
      in good faith the validity or amount of any tax, assessment, license fee,
      excise fee and any other charge which it is responsible to pay under this
      Article 8.00, provided that no contest by Tenant may involve the
      possibility of forfeiture, sale or disturbance of Landlord's interest in
      the Premises. Building or Project and that upon the final determination of
      any contest by Tenant, Tenant shall immediately pay and satisfy the amount
      found to be due, together with any costs, penalties and interest.

ARTICLE 9.00 INSURANCE

9.01  Landlord's Insurance  During the Term, Landlord shall maintain at its own
      expense (with participation by Tenant by payment of Occupancy Costs under
      Article 4.01) liability insurance, fire insurance with extended coverage,
      boiler and pressure vessel insurance, and other insurance on the Building
      and all property and interest of Landlord in the Building with coverage
      and in amounts not less than those which are from time to time reasonably
      acceptable to a prudent owner in the area in which the Building is
      located. Policies for such insurance shall waive, to the extent available
      from Landlord's insurance carrier(s) any right of subrogation against
      Tenant. If there shall be an additional charge for such waiver, Tenant
      shall promptly pay the same upon demand by Landlord.

9.02  Tenant's Insurance  During the Term, Tenant shall maintain at its own
      expense

      (a)   fire insurance with extended coverage and water damage insurance in
            amounts sufficient to fully cover Tenant's improvements and all
            property in the Premises which is not owned by Landlord, and

      (b)   liability insurance, with Landlord named as an additional insured,
            against claims for death, personal injury and property damage in or
            about the Premises, in amounts which are not less than those from
            time to time acceptable to a prudent tenant in the community in
            which the Building is located, but in no event less than One Million
            Dollars ($1,000,000) for death, illness or injury to any one or more
            persons, and Five Hundred Thousand Dollars ($500,000) for property
            damage, in respect of each occurrence.

      Policies for such insurance shall be in a form and with an insurer
      reasonably acceptable to Landlord, shall require at least fifteen (15)
      days' written notice to Landlord of termination or material alteration
      during the Term, and shall waive, to the extent available from Tenant's
      insurance carriers, any right of subrogation against Landlord. If there
      shall be an additional charge for such waiver, Landlord shall promptly pay
      the same upon demand by Tenant. If requested by Landlord, Tenant shall
      from time to time promptly deliver to Landlord certified copies or other
      evidence of such policies acceptable to Landlord, and evidence
      satisfactory to Landlord that all premiums thereon have been paid and the
      policies are in full force and effect.

ARTICLE 10.00 INJURY TO PERSON OR PROPERTY

                                       8
<PAGE>

10.01 Indemnity by Tenant  Tenant shall indemnify and hold harmless Landlord
      from and against every demand, claim, cause of action, judgment and
      expense (including attorney's fees), and all loss and damage arising from

      (a)   any injury or damage to the person or property of Tenant, any other
            tenant in the Project or to any other person in the Project, where
            the injury or damage is caused by negligence or misconduct of
            Tenant, its agents, servants or employees, or of any other person
            entering upon the Premises under express or implied invitation of
            Tenant, or results from the violation of laws or ordinances,
            governmental orders of any kind or of the provisions of this Lease
            by any of the foregoing parties,

      (b)   any loss or damage, however caused, to books, records, files, money,
            securities, negotiable instruments or papers in or about the
            Premises,

      (c)   any loss or damage, resulting from interference with or obstruction
            of deliveries to or from the Premises, and

      (d)   any injury or damage not specified above to the person or property
            of Tenant, its agents, servants or employees, or any other person
            entering upon the Premises under express or implied invitation of
            Tenant, where the injury or damage is caused by any reason other
            than the negligence of misconduct of Landlord, its agents, servants,
            or employees.

10.02 Subrogation  The provisions of this Article 10.00 are subject to the
      waiver of any right of subrogation against Tenant in Landlord's Insurance
      Under Article 9.01 and to the waiver of any right of subrogation against
      Landlord in Tenant's Insurance under Article 9.02.

ARTICLE 11.00 ASSIGNMENT AND SUBLETTING

11.01 Assignment  Tenant may assign this Lease with Landlord's prior written
      consent, which consent will not be unreasonably withheld.

      (a)   to an assignee who is a purchaser of all or substantially all of the
            assets of Tenant, a parent or wholly owned subsidiary of Tenant, a
            company which results from the reconstruction, consolidation or
            merger of Tenant, or a partnership in which Tenant (or not less than
            one-half of the principals thereof) has a greater than 50% interest,
            provided that consent will not be required if the assignment is for
            a good business purpose and not principally for the purpose of
            transferring this Lease and (except for an assignment to a
            subsidiary of Tenant) the net worth of the assignee immediately
            following the assignment is not less than the net worth of the
            Tenant on the Commencement Date or immediately prior to the
            assignment, whichever is greater, or

      (b)   subject to the Article 11.03, to any other assignee who, in
            Landlord's reasonable opinion, will not be inconsistent with the
            dignity, character and standards of the Building and its other
            tenants.

11.02 Subleasing  Tenant may sublet all or any part of the Premises with
      Landlords prior written consent, which consent will not be unreasonably
      withheld.

      (a)   to a sublessee who is a parent or wholly owned subsidiary of Tenant
            and is consistent with the dignity, character and standards of the
            Building and its other tenants, and only for such period as it
            remains a parent or wholly owned subsidiary of Tenant, or

      (b)   subject to Article 11.03, to any other sublessee who, in Landlord's
            reasonable opinion, will not be inconsistent with the dignity,
            character and standards of the Building and its other tenants.

11.03 First Offer

      (a)   If Tenant wishes to assign this Lease or sublet all or any part of
            the Premises (except as set out in Article 11.01(a) or 11.02(a) to a
            named third party, Tenant shall first offer in writing to assign or
            sublet (as the case may be) to Landlord. Such first offer shall
            contain the terms of Tenant's proposed assignment or subletting. Any
            such first offer shall be deemed to be rejected unless within thirty
            (30) days of receipt thereof Landlord delivers written notice of
            acceptance to Tenant.

                                       9
<PAGE>

      (b)   If Landlord accepts Tenants offer, Tenant shall assign this Lease to
            Landlord or sublet the proposed space to Landlord without cost, such
            assignment or subletting to be effective on the date and for the
            periods of time set forth in Tenant's notice, provided the effective
            date shall not be sooner than forty-five (45) days after the giving
            of Tenant's offer.

      (c)   Any sublease to Landlord will be on the same terms and conditions as
            provided in this Lease except that

            (i)   Rent shall be the Rent (on a square-foot basis) provided in
                  this Lease, or the rent Tenant's proposed sublessee would have
                  paid, whichever is less,

            (ii)  Landlord may assign the sublease or further sublet all or any
                  part of the space without Tenant's consent, and

            (iii) Landlord may make changes, additions, alterations or
                  improvements (structural or otherwise to the space provided
                  that Landlord shall be required to restore the space to its
                  condition immediately prior to the commencement of the
                  sublease to the same extent as Tenant's proposed sublessee
                  would have been required to do so.

11.04 Limitation  No assignment or sublease which is permitted under this
      Article 11.00 shall be effective until Tenant delivers a copy of the
      executed instrument to Landlord. Except as specifically provided in this
      Article 11.00, Tenant shall not assign or transfer this Lease or any
      interest therein or in any way part with possession of all or any part of
      the Premises, or permit all or any part of the Premises to be used or
      occupied by any other person. Any assignment, transfer or subletting or
      purported assignment, transfer or subletting except as specifically
      provided herein shall be null and void and of no force and effect.
      Landlord shall not be required to consent to an assignment of this Lease
      or a sublease of all or part of the Premises by Tenant to any tenant in
      the Project or with whom Landlord is negotiating in good faith for space
      in the Project. Except as expressly provided herein, the rights and
      interests of Tenant under this Lease shall not be assignable by operation
      of law without Landlord's written consent, which consent may be withheld
      in Landlord's absolute discretion.

11.05 Tenant's Obligations Continue  No assignment, transfer, or subletting (or
      use or occupation of the Premises by any other person) shall in any way
      release or relieve Tenant of its obligations under this Lease unless such
      release or relief is specifically granted by Landlord to Tenant in
      writing, except should Landlord accept Tenant's First Offer under Article
      11.03, then Tenant shall be released on the portion of the Premises taken
      by Landlord.

11.06 Subsequent Consent  Landlord's consent to an assignment; transfer or
      subletting (or use or occupation of the Premises by any other person)
      shall not be deemed to be a consent to any subsequent assignment,
      transfer, subletting, use or occupation.

11.07 Change in Control  As used in this Article 11.00. the term "assignment"
      shall be deemed to include:

      (d)  Any transaction whether issuance of interest in Advanced
           Telecommunications, Inc. or transference of interest of Advanced
           Telecommunications, Inc. (whether stock, partnership interest, or
           otherwise) which would reduce the personal holdings of Cliff
           Williams and Paul Cady to less than 10% interest in Advance
           Telecommunications, Inc.

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ARTICLE 12.00 SURRENDER

12.01 Possession  Upon the expiration or other termination of the Term, Tenant
      shall immediately quit and surrender possession of the Premises (including
      all improvements made to the Premises) in substantially the condition in
      which Tenant is required to maintain the Premises, excepting only
      reasonable wear and tear and damage covered by Landlord's insurance under
      Article 9.01. Upon such surrender, all right, title and interest of Tenant
      in the Premises including the improvements made to the Premises shall
      cease.

12.02 Trade Fixtures, Personal Property and Improvements  Subject to Tenant's
      rights under Article 7.05, after the expiration or other termination of
      the Term all of Tenant's trade fixtures and personal property remaining in
      the Premises shall be deemed conclusively to have been abandoned by
      Tenant. All of Tenant's trade fixtures, personal property and improvements
      remaining in the Premises may be appropriated, sold, destroyed or
      otherwise disposed of by Landlord without notice or obligation to
      compensate Tenant or to account therefore, and Tenant shall pay to
      Landlord on written demand all costs incurred by Landlord in connection
      therewith. The obligations of Tenant under this Article 12.02 shall
      survive the expiration or other termination of the Term.

12.03 Merger  The voluntary or other surrender of this Lease by Tenant or the
      cancellation or termination of this Lease by mutual agreement of Tenant
      and Landlord or otherwise shall not work a merger, and shall at Landlord's
      option terminate all or any subleases and subtenancies or operate as an
      assignment to Landlord of all or any subleases or subtenancies.

12.04 Payments After Termination  No payments of money by Tenant to Landlord
      after the expiration or other termination of the Term or after the giving
      of any notice (other than a demand for payment of money) by Landlord to
      Tenant, shall reinstate, continue or extend the Term or make ineffective
      any notice given to Tenant prior to the payment of such money. After the
      service of notice or the commencement of a suit, or after final judgment
      granting Landlord possession of the Premises, Landlord may receive and
      collect any sums of Rent due under the Lease, and the payment thereof
      shall not make ineffective any notice, or in any manner affect any pending
      suit or any judgment therefore obtained.

ARTICLE 13.00 HOLDING OVER

13.01 Month-to-Month Tenancy  If with Landlord's written consent (which consent
      will not be unreasonably withheld if all or part of the Premises is not
      leased to others or required for Landlord's use) Tenant remains in
      possession of the Premises after the expiration or other termination of
      the Term, Tenant shall be deemed to be occupying the Premises on a
      month-to-month tenancy only at a monthly rental equal to the installment
      of Annual Rent in effect for the last month of the Term, plus all other
      Rent which would have been payable under this Lease for such additional
      month or months if the Term had remained in effect, as determined in
      accordance with Article 4.00 or such other rental as is stated in such
      written consent, and such month-to-month tenancy may be terminated by
      Landlord or Tenant on the last day of any calendar month by giving at
      least one month's advance notice of termination to the other.

13.02 Tenancy at Sufferance  If without Landlord's written consent Tenant
      remains in possession of the Premises after the expiration or other
      termination of the Term, Tenant shall promptly surrender the Premises to
      Landlord in accordance with Article 12.00, and shall pay to Landlord for
      each day that Tenant retains possession of the Premises or any portion
      thereof beyond the expiration or other termination of the Term an amount
      equal to two times the Annual Rent in effect on the last day of the Term,
      plus all other Rent which would have been payable under this Lease if the
      Term had remained in effect, as determined in accordance with Article 4.00
      and adjusted and calculated on a per diem basis.

13.03 General  Any month-to-month tenancy or tenancy at sufferance hereunder
      shall be subject to all other terms and conditions of this Lease except
      any right of renewal and nothing contained in this Article 13.00 shall be
      construed to limit or impair any of Landlord's rights of re-entry or
      eviction or constitute a waiver thereof.

ARTICLE 14.00 RULES AND REGULATIONS

14.01 Purpose  The Rules and Regulations in Exhibit C have been adopted by
      Landlord for the, safety, benefit and convenience of all tenants and other
      persons in the Building.

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<PAGE>

14.02 Observance  Tenant shall at all times comply with, and shall cause its
      employees, agents, licensees and invitees to comply with the Rules and
      Regulations from time to time in effect.

14.03 Modification  Landlord may from time to time, for the purposes set out in
      Article 14.01, amend, delete from, or add to the Rules and Regulations,
      provided that any such modification.

      (a)   shall not be repugnant to any other provision of this Lease,

      (b)   shall be reasonable and have general application to all tenants in
            the Building, and

      (c)   shall be effective only upon delivery of a copy thereof to Tenant at
            the Premises.

14.04 Non-Compliance  Landlord shall endeavor to secure compliance by all
      tenants in the Building with the Rules and Regulations from time to time
      in effect, but shall not be responsible to Tenant for failure of any
      person to comply with such Rules and Regulations.

ARTICLE 15.00 EMINENT DOMAIN

15.01 Taking of Premises  If during the Term all of the Premises shall be taken
      for any public or quasi-public use under any statute or by right of
      eminent domain, or purchased under threat of such taking, this Lease shall
      automatically terminate on the date on which the condemning authority
      takes possession of the Premises (hereinafter called the "date of such
      taking").

15.02 Partial Taking of Building  If during the Term only part of the Building
      is taken or purchased as set out in Article 15.01, then

      (a)   if in the reasonable opinion of Landlord substantial alteration or
            reconstruction of the Building is necessary or desirable as a result
            thereof, whether or not the Premises are or may be affected,
            Landlord shall have the right to terminate this Lease by giving
            Tenant at least thirty (30) days' written notice of such
            termination, and

      (b)   if more than one-third of the number of square feet in the Premises
            is included in such taking or purchase, Landlord and Tenant shall
            each have the right to terminate this Lease by giving the other at
            least thirty (30) days' written notice thereof.

      If either party exercises its right of termination hereunder, this Lease
      shall terminate on the date stated in the notice, provided, however, that
      no termination pursuant to notice hereunder may occur later than sixty
      (60) days after the date of such taking.

15.03 Surrender  On any such date of termination under Article 15.01 or 15.02,
      Tenant shall immediately surrender to Landlord the Premises and all
      interests therein under this Lease. Landlord may re-enter and take
      possession of the Premises and remove Tenant therefrom, and the Rent shall
      abate on the date of termination, except that if the date of such taking
      differs from the date of termination, Rent shall abate on the former date
      in respect of the portion taken. After such termination, and on notice
      from Landlord stating the Rent then owing, Tenant shall forthwith pay
      Landlord such Rent.

15.04 Partial Taking of Premises  If any portion of the Premises (but less than
      the whole thereof) is so taken, and no rights of termination herein
      conferred are timely exercised, the Term of this Lease shall expire with
      respect to the portion so taken on the date of such taking. In such event
      the Rent payable hereunder with respect to such portion so taken shall
      abate on such date, and the Rent thereafter payable with respect to the
      remainder not so taken shall be adjusted pro rata by Landlord in order to
      account for the resulting reduction in the number of square feet in the
      Premises.

15.05 Awards  Upon any such taking or purchase, Landlord shall be entitled to
      receive and retain the entire award or consideration for the affected
      lands and improvements, and Tenant shall not have nor advance any claim
      against Landlord or the condemning authority for the value of its property
      or its leasehold estate or the unexpired Term of this Lease, or for costs
      of removal or relocation, or business interruption expenses or any other
      damages arising out of such taking or purchase, and Tenant hereby assigns
      to Landlord all of its interest to such award and agrees to execute any
      documents that may be required to facilitate collection thereof by
      Landlord. Nothing herein shall give Landlord any interest in or preclude
      Tenant from seeking and recovering on its own account from the condemning
      authority any separate award or compensation attributable to the taking or
      purchase of Tenant's trade fixtures or personal property, or the removal
      or relocation of its business and effects, or the

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<PAGE>

      interruption of its business, provided such award shall be made in
      addition to, and not result in a reduction of, the award otherwise made to
      Landlord. If any such award made or compensation paid to either party
      specifically includes an award or amount for the other, the party first
      receiving the same shall promptly account therefore to the other.

ARTICLE 16.00 DAMAGE BY FIRE OR OTHER CASUALTY

16.01 Limited Damage to Premises  If all or part of the Premises are rendered
      untenantable by damage from fire or other casualty, in the reasonable
      opinion of an architect selected by Landlord and approved by Tenant, which
      approval will not be unreasonably withheld, cannot be substantially
      repaired under applicable laws and governmental regulations within one
      hundred eighty (180) days from the date of such casualty (employing normal
      construction methods without overtime or other premium), then either
      Landlord or Tenant may elect to terminate this Lease as of the date of
      such casualty by written notice delivered to the other not more than
      twenty (20) days after receipt of such architect's opinion, failing which
      Landlord shall forthwith at its own expense repair such damage other than
      damage to improvements, trade fixtures or personal property which do not
      belong to Landlord.

16.02 Major Damage to Premises  If all or part of the Premises are rendered
      untenantable by damage from fire or other casualty, in the reasonable
      opinion of an architect selected by Landlord and approved by Tenant, which
      approval will not be unreasonably withheld, cannot be substantially
      repaired under applicable laws and governmental regulations within one
      hundred eighty (180) days from the date of such casualty (employing normal
      construction methods without overtime or other premium), then either
      Landlord or Tenant may elect to terminate this Lease as of the date of
      such casualty by written notice delivered to the other not more than
      twenty (20) days after receipt of such architect's opinion, failing which
      Landlord shall forthwith at its own expense repair such damage other than
      damage to improvements, trade fixtures or personal property which do not
      belong to Landlord.

16.03 Abatement  If Landlord is required to repair damage to all or part of the
      Premises under Article 16.01 or 16.02, the Rent payable by Tenant
      hereunder shall be proportionately reduced to the extent that the Premises
      are thereby rendered unusable by Tenant in its business, from the date of
      such casualty until five (5) days after completion by Landlord of the
      repairs to the Premises (or the part thereof rendered untenantable) or
      until Tenant again uses the Premises (or the part thereof rendered
      untenantable) in its business, whichever first occurs.

16.04 Major Damage to Building  If all or a substantial part (whether or not
      including the Premises) of the Building is rendered untenantable by damage
      from fire or other casualty to such a material extent that in the
      reasonable opinion of Landlord the Building must be totally or partially
      demolished, whether or not to be reconstructed in whole or in part,
      Landlord may elect to terminate this Lease as of the date of such casualty
      (or on the date of notice if the Premises are unaffected by such casualty)
      by written notice delivered to Tenant not more than sixty (60) days after
      the date of such casualty.

16.05 Limitation on Landlord's Liability  Except as specifically provided in
      this Article 16.00, there shall be no reduction of Rent and Landlord shall
      have no liability to Tenant by reason of any injury to or interference
      with Tenant's business or property arising from fire or other casualty,
      howsoever caused or from the making of any repairs resulting therefrom in
      or to any portion of the Building or the Premises. Notwithstanding
      anything contained herein, Rent payable by Tenant hereunder shall not be
      abated if the damage is caused by any act or omission of Tenant, its
      agents, servants, employees or any other person entering upon the Premises
      under express or implied invitation of Tenant.

ARTICLE 17.00 TRANSFERS BY LANDLORD

17.01 Sales, Conveyance and Assignment  Nothing in this Lease shall restrict the
      right of Landlord to sell, convey, assign or otherwise deal with the
      Building, subject only to the rights of Tenant under this Lease.

17.02 Effect of Sale, Conveyance or Assignment  A sale, conveyance or assignment
      of the Building shall operate to release Landlord from liability from and
      after the effective date thereof upon all of the covenants, terms and
      conditions of this Lease, express or implied, except as such may relate to
      the period prior to such effective date, and Tenant shall thereafter look
      solely to Landlord's successor in interest in and to this Lease. This
      Lease shall not be affected by any such sale, conveyance or assignment,
      and Tenant shall attorn to Landlord's successor in interest thereunder.

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<PAGE>

17.03 Subordination  This Lease is and shall be subject and subordinate in all
      respects to any and all ground or underlying leases, and to all mortgages
      and deeds of trust which may now or hereafter affect any of such leases or
      the Building or Land, and to all renewals, modifications, consolidations,
      replacements and extensions thereof.

17.04 Attornment  Subject to Article 17.05, if the interest of Landlord is
      transferred to any person (herein called "Purchaser") by reason of
      foreclosure or other proceedings for enforcement of any such mortgage or
      deed of trust, or by delivery of a deed in lieu of such foreclosure or
      other proceedings, Tenant shall immediately and automatically attorn to
      Purchaser.

17.05 Nondisturbance  No attornment by Tenant under Article 17.04 shall be
      effective unless, before the date of transfer to Purchaser, Purchaser
      delivers to Tenant a written undertaking, binding upon Purchaser and
      enforceable by and for the benefit of Tenant under applicable law, that
      this Lease and Tenant's rights hereunder shall continue undisturbed while
      Tenant is not in default despite such enforcement proceedings and
      transfer.

17.06 Effect of Attornment  Upon attornment under Article 17.04, this Lease
      shall continue in full force and effect as a direct lease between
      Purchaser and Tenant, upon all of the same terms, conditions and covenants
      as are set forth in this Lease except that, after such attornment,
      Purchaser shall not be

      (a)   liable for any act or omission of Landlord, or

      (b)   subject to any offsets or defenses which Tenant might have against
            Landlord, or

      (c)   bound by any prepayment by Tenant of more than one month's
            installment of Rent, or by any previous modification of this Lease,
            unless such prepayment or modification shall have been approved in
            writing by Purchaser or any predecessor in interest except Landlord.

17.07 Execution of Instruments  The subordination and attornment provisions of
      this Article 17.00 shall be self-operating and, except as set out in
      Article 17.05, no further instrument shall be required. Nevertheless,
      Tenant, on request by and without cost to Landlord or any successor in
      interest, shall promptly execute and deliver to Landlord any and all
      instruments further evidencing such subordination and (where applicable
      hereunder) attornment.

ARTICLE 18.00 NOTICES, ACKNOWLEDGEMENTS, AUTHORITIES FOR ACTION

18.01 Notices  Any notice from Landlord to Tenant shall be in writing and shall
      be deemed duly served if delivered personally to a responsible employee of
      Tenant, or if mailed by registered or certified mail addressed to Tenant
      at the Premises (whether or not Tenant has departed from, vacated or
      abandoned the same). Any notice from Tenant to Landlord shall be in
      writing and shall be deemed duly served if mailed by registered or
      certified mail addressed to Landlord at the place from time to time
      established for the payment of Rent. Any notice shall be deemed to have
      been given at the time of personal delivery or, if mailed, three (3) days
      after the date of mailing thereof. Either party shall have the right to
      designate by notice, in the manner above set forth, a different address to
      which notices are to be mailed.

18.02 Acknowledgements  Each of the parties hereto shall at any time and from
      time to time upon not less than fifteen (15) days' prior notice from the
      other execute, acknowledge and deliver a written statement certifying

      (a)   that this Lease is in full force and effect, subject only to such
            modifications (if any) as may be set out therein,

      (b)   that Tenant is in possession of the Premises and paying Rent as
            provided in this Lease,

      (c)   the dates (if any) to which Rent is paid,

      (d)   that there are not, to such party's knowledge, any uncured defaults
            on the part of the other party hereunder, or specifying such
            defaults if any are claimed,

      (e)   as to such other matters pertaining to this Lease as the other party
            may reasonably request.

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<PAGE>

      Any such statement may be relied upon by any prospective transferee or
      encumbrancer of all or any portion of the Building, or any assignee of any
      such persons. If Tenant fails to timely deliver such statement, Tenant
      shall be deemed to have acknowledged that this Lease is in full force and
      effect, without modification except as may be represented by Landlord, and
      that there are no uncured defaults in Landlord's performance.

18.03 Authorities for Action  Landlord may act in any matter provided for herein
      through its property manager and any other person who shall from time to
      time be designated by Landlord by notice to Tenant. Tenant shall designate
      in writing one or more persons to act on its behalf in any matter provided
      for herein and may from time to time change, by notice to Landlord, such
      designation. In the absence of any such designation, the person or persons
      executing this Lease for Tenant shall be deemed to be authorized to act on
      behalf of Tenant in any matter provided for herein.

ARTICLE 19.00 DEFAULT

19.01 Interest and Costs  Tenant shall pay to Landlord interest at a rate equal
      to the lesser of 1 1/2% per month, or the maximum rate permitted by
      applicable law, upon all Rent required to be paid hereunder from the due
      date for payment thereof until the same is fully paid and satisfied.
      Tenant shall indemnify Landlord against all costs and charges (including
      legal fees) reasonably incurred in enforcing Tenant's payment of Rent, and
      in obtaining possession of the Premises after default of Tenant or upon
      expiration or earlier termination of the Term of this Lease, and in
      enforcing any covenant, proviso or agreement of Tenant herein contained.

19.02 Right of Landlord to Perform Covenants  All covenants and agreements to be
      performed by Tenant under any of the terms of this Lease shall be
      performed by Tenant, at Tenant's sole cost and expense, and without any
      abatement of Rent. If Tenant shall fail to perform any act on its part to
      be performed hereunder, and such failure shall continue for ten (10) days
      after notice thereof from Landlord (or without notice in an emergency),
      Landlord may (but shall not be obligated to) perform such act without
      waiving or releasing Tenant from any of its obligations or liabilities
      relative thereto. All sums paid or costs incurred by Landlord in so
      performing such acts under this Article 19.02, together with interest
      thereon at the rate set out in Article 19.01 from the date each such
      payment was made or each such cost incurred by Landlord, shall be payable
      by Tenant to Landlord on demand.

                                       15
<PAGE>

19.03 Events of Default  The rights of Tenant under this Lease are subject to
      the limitations that if

      (a)   Tenant files a voluntary petition in bankruptcy or insolvency, or is
            adjudicated a bankrupt or insolvent, or files a petition or answer
            seeking any relief under any bankruptcy act or other similar
            applicable law, or makes an assignment for the benefit of creditors
            or seeks or consents in the appointment of any trustee, receiver, or
            liquidator of Tenant's business or property, or

      (b)   within sixty (60) days after the commencement of any proceeding
            against Tenant seeking any relief under any bankruptcy act or
            similar applicable law, such proceeding has not been dismissed, or
            if, within sixty (60) days after the appointment of any trustee,
            receiver or liquidator of Tenant's business or property without the
            consent of Tenant, such appointment has not been vacated or
            otherwise discharged, or if any execution or attachment shall be
            issued against Tenant's business or property pursuant to which the
            Premises may be taken or occupied, or

      (c)   part or all of the Rent is not paid when due and such default
            continues for five (5) days after the due date thereof, or

      (d)   Tenant's interest in this Lease devolves or passes to any party
            other than Tenant, by operation of law or otherwise, except with the
            prior written consent of Landlord, or

      (e)   the Premises are vacated or abandoned or if Tenant fails to take
            occupancy of the Premises within thirty (30) days after the
            Commencement Date, except with the prior written consent of
            Landlord, or

      (f)   Tenant fails to observe or perform any other term, covenant or
            condition of this Lease on Tenant's part to be observed or
            performed, other than the payment of Rent, and fails to remedy such
            default within ten (10) days after notice by Landlord to Tenant of
            such default or, if such default within ten (10) days after notice
            by Landlord to Tenant of such default or, if such default is of such
            a nature that it cannot be completely remedied within said period,
            Tenant fails to promptly, upon the giving of such notice, advise
            Landlord of Tenant's intent to institute all steps necessary to
            remedy the default and promptly institute and thereafter diligently
            prosecute to completion all steps necessary to remedy the default,
            and complete such remedy within a reasonable time after the giving
            of such notice by Landlord and in any event prior to such time as
            would cause a default under any mortgage or underlying lease on the
            Building or Land,

      then in any of said events Landlord may terminate this Lease by giving at
      least three (3) days' prior written notice to Tenant and this Lease shall
      terminate upon the expiration of that notice period as though that date
      were the Expiration Date, but Tenant shall remain liable for damages as
      provided in this Article 19.00.

19.04 Re-Entry and Remedies  If part or all of the Rent is not paid when due and
      such default continues for five (5) days after notice from Landlord to
      Tenant or of this Lease is terminated as provided in Article 19.03,

      (a)   Landlord may immediately or at any time thereafter re-enter the
            Premises or any part thereof in accordance with applicable law by
            summary proceedings or otherwise, and may repossess the Premises and
            dispossess Tenant and any other persons from the Premises and remove
            Tenant's trade fixtures and personal property from the Premises,
            without liability for damage thereto, and in no event shall re-entry
            be deemed an acceptance of surrender of this Lease, and

      (b)   Landlord may from time to time (but shall not be obligated to) relet
            the whole or any part of the Premises on such terms and at such
            rentals as Landlord deems advisable. Landlord may make such changes,
            additions, improvements and repairs to the Premises as Landlord
            deems advisable without affecting Tenant's liability under this
            Lease.

19.05 Waiver  Tenant hereby expressly waives any and all rights of redemption or
      reinstatement granted by or under any present or future laws in the event
      of Tenant being evicted or dispossessed for any cause, or in the event of
      Landlord obtaining possession of the Premises, by reason of the violation
      by Tenant of any of the terms, covenants or conditions of this Lease or
      otherwise.

19.06 Payments  If this Lease is terminated or if Landlord re-enters the
      Premises under this Article 19.00:

      (a)   Tenant shall pay to Landlord all Rent up to the time of re-entry or
            termination, whichever is later,

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<PAGE>

      (b)   Landlord may retain all monies, if any, paid by Tenant to Landlord,
            whether as advance rent, security or otherwise, but such monies
            shall be credited by Landlord against any Rent due at the time of
            such termination or re-entry or, at Landlord's option, against any
            damages payable by Tenant,

      (c)   Tenant shall pay to Landlord all expenses incurred by Landlord in
            terminating, re-entering and re-letting, including all repossession
            costs, brokerage and legal fees and costs of preparing the Premises
            for reletting, and

      (d)   (i)   Tenant shall pay to Landlord, as damages, any deficiency
                  between the Rent for the period which otherwise would have
                  constituted the unexpired portion of the Term and the
                  payments, if any, received by Landlord from other tenants in
                  the Premises, such deficiency to be paid at the times and in
                  the manner as Rent is payable under Article 4.00, and Landlord
                  shall be entitled to bring a suit to recover each deficiency
                  as the same shall arise, or at Landlord's election, bring
                  suits from time to time.

            (ii)  If elected by Landlord, at or after re-entry or termination,
                  Tenant shall pay Landlord on demand as liquidated and final
                  damages for lost Rent and not as a penalty, a sum equal to the
                  amount by which the Rent payable hereunder for the period to
                  the Expiration Date from the latest of the date of termination
                  of this Lease, the date of re-entry or the date through which
                  monthly deficiencies shall have been paid (conclusively
                  presuming the Occupancy Costs to be the same as payable for
                  the Fiscal Year immediately preceding such termination or
                  re-entry) exceeds the then fair rental value of the Premises
                  for the same period, discounted at the rate of 7% per annum to
                  present worth. If, before presentation of proof of such
                  liquidated damages to any court, commission or tribunal, all
                  or part of the Premises are relet by Landlord for all or part
                  of the period which otherwise would have constituted the
                  unexpired portion of the Term, the amount of rent upon such
                  reletting shall be deemed to be the fair rental value for the
                  part or whole of the Premises during the term of the
                  reletting.

            (iii) In no event shall Tenant be entitled to receive any excess of
                  any payments received by Landlord from a reletting of the
                  Premises over the sums payable by Tenant to Landlord
                  hereunder; and

            (iv)  If the Premises or any part thereof should be relet in
                  combination with other space, then proper apportionment on a
                  square foot area basis shall be made of the rent received from
                  such reletting and the expenses of reletting.

      Nothing herein shall be construed as limiting or precluding the recovery
      by Landlord against Tenant of any sums or damages to which, in addition to
      the damages set out in this Article 19.06, Landlord may lawfully be
      entitled by reason of any default hereunder by Tenant.

19.07 Remedies  Cumulative Each right of Landlord provided for in this Lease
      shall be cumulative and shall be in addition to every other right provided
      for in this Lease or existing at law or in equity, and the exercise by
      Landlord of any one or more of such rights shall not preclude the
      simultaneous or later exercise by Landlord of any other rights provided
      for in this Lease or existing at law or in equity.

ARTICLE 20.00 MISCELLANEOUS

20.01 Relationship of Parties  Nothing contained in this Lease shall create any
      relationships between the parties hereto other than that of Landlord and
      tenant, and it is acknowledged and agreed that Landlord does not in any
      way or for any purpose become a partner of Tenant in the conduct of its
      business, or a joint venturer or a member of a joint or common enterprise
      with Tenant.

20.02 Name of Building  Landlord shall have the right, after thirty (30) days'
      notice to Tenant, to change the name, number and designation of the
      Building, during the Term without liability to Tenant.

20.03 Applicable Law and Construction  This Lease shall be governed by and
      construed under the laws of Minnesota and its provisions shall be
      construed as a whole according to their common meaning and not strictly
      for or against Landlord or Tenant. The words Landlord and Tenant shall
      include the plural as well as the singular. If this Lease is executed by
      more than one tenant, Tenant's obligations hereunder shall be joint and
      several obligations of such executing tenants. Time is of the essence of
      this Lease and each of its provisions. The captions of the Articles are
      included for convenience only, and shall have not effect upon the
      construction or interpretation of this Lease.

                                       17
<PAGE>

20.04 Entire Agreement  If there are any terms and conditions which at the date
      of execution of this Lease are additional or supplemental to those set out
      on the first 18 pages and in Exhibits A, B and C, such terms and
      conditions are contained in Exhibit D (if any) attached hereto as part of
      this Lease. This Lease contains the entire agreement between the parties
      hereto with respect to the subject matter of this Lease. Tenant
      acknowledges and agrees that it has not relied upon any statement,
      representation, agreement or warranty except such as are set out in this
      Lease.

20.05 Amendment or Modification  Unless otherwise specifically provided in this
      Lease, no amendment, modification, or supplement to this Lease shall be
      valid or binding unless set out in writing and executed by the parties
      hereto in the same manner as the execution of this Lease.

20.06 Construed Covenants and Severability  All of the provisions of this Lease
      are to be construed as covenants and agreements as though the words
      importing such covenants and agreements were used in each separate Article
      hereof. Should any provision of this Lease be or become invalid, void,
      illegal or not enforceable, it shall be considered separate and severable
      from the Lease and the remaining provisions shall remain in force and be
      binding upon the parties hereto as though such provision had not been
      included.

20.07 No Implied Surrender or Waiver  No provisions of this Lease shall be
      deemed to have been waived by Landlord unless such waiver is in writing
      signed by Landlord. Landlord's waiver of a breach of any term, covenant or
      condition of this Lease shall not prevent a subsequent act, which would
      have originally constituted a breach, from having all the force and effect
      of any original breach. Landlord's receipt of Rent with knowledge of a
      breach by Tenant of any term, covenant or condition of this Lease shall
      not be deemed a waiver of such breach. Landlord's failure to enforce
      against Tenant or any other tenant in the Building any of the Rules and
      Regulations made under Article 14.00 shall not be deemed a waiver of such
      Rules and Regulations. No act or thing done by Landlord, its agents or
      employees during the Term shall be deemed an acceptance of a surrender of
      the Premises, and no agreement to accept a surrender of the Premises shall
      be valid, unless in writing signed by Landlord. The delivery of keys to
      any of Landlord's agents or employees shall not operate as a termination
      of this Lease or a surrender of the Premises. No payment by Tenant, or
      receipt by Landlord, of a lesser amount than the Rent due hereunder shall
      be deemed to be other than on account of the full Rent due, nor shall any
      endorsement or statement on any check or any letter accompanying any
      check, or payment of Rent, be deemed an accord and satisfaction, and
      Landlord may accept such check or payment without prejudice to Landlord's
      right to recover the balance of such Rent or pursue any other remedy
      available to Landlord.

20.08 Successors Bound  Except as otherwise specifically provided, the
      covenants, terms, and conditions contained in this Lease shall apply to
      and bind the heirs, successors, executors, administrators and assigns of
      the parties hereto.

ARTICLE 21.00 RELOCATION BY TENANT

21.01 Landlord, at its sole expense, on at least one hundred eighty (180) days
      prior written notice, may require Tenant to move from the Premises to
      other space of comparable size and decor in order to permit Landlord to
      consolidate the space leased to Tenant with other adjoining space leased
      or to be leased to another tenant. Provided, however, that in the event of
      receipt of any such notice, Tenant by written notice to Landlord may elect
      not to move to other space and in lieu thereof terminate this Lease,
      effective ninety (90) days after the date of the original notice of
      relocation by Landlord. In the event of any such relocation, within the
      Project, Landlord will pay all expenses of preparing and decorating the
      new premises so that they will be substantially similar to the Premises
      from which Tenant is moving and Landlord will also pay the expense of
      moving Tenant's furniture and equipment to the relocated premises. In such
      event this Lease and each and all of the terms and covenants and
      conditions hereof shall remain in full force and effect and thereupon be
      deemed applicable to such new space.

                                       18
<PAGE>

IN WITNESS OF THIS LEASE Landlord and Tenant have properly executed it as of the
date set out on page one.

LANDLORD:                                    TENANT:

ST. PAUL PROPERTIES, INC.                    Advanced Telecommunications, Inc.

By: /s/ R. William Inserra                         By: /s/ Cliff Williams
    ------------------------------                     -------------------------
R. William Inserra                           Its: CEO
Vice President Asset Management                   Cliff Williams
                                                  ------------------------------
                                                  (Type name)

9-3-96
----------------------------------
Date Executed
                                             By:
                                                --------------------------------
                                             Its:
                                                 -------------------------------

                                                 -------------------------------
                                                     (Type name)

                                                 -------------------------------
                                                 Witness to the signature of
                                                 Tenant if not incorporated.

                                                 -------------------------------
                                                 Date Executed

                                       19
<PAGE>

                                                                       Exhibit A

                              [FLOOR PLAN OMITTED]

                           PEAVEY BUILDING - FLOOR 4

<PAGE>

BAKER CENTER                                                           EXHIBIT B
Office Space

                                PEAVEY BUILDING
                            730 SECOND AVENUE SOUTH
                          MINNEAPOLIS, MINNESOTA 55402

SECTION 1.00 WORDS AND PHRASES

1.01  Definitions  In the Lease, including this Exhibit:

      (a)   "Architect" means that firm of professional architects or engineers
            as Landlord may from time to time engage for preparation of
            construction drawings for the Building or for general supervision of
            architectural and engineering aspects and operations of the Building
            and includes any consultant(s) from time to time appointed by
            Landlord or the Architect whenever such consultants(s) is acting
            within the scope of his or her appointment and specialty.
      (b)   "Land" means those lands located in Hennepin County, Minnesota,
            described as:
                  Lots 9,10 and 11, and the Southeasterly, 10 feet of the
                  Southwesterly 90 feet of Lot 8, Auditors Subdivision No. 178
                  Hennepin County, Minnesota.
      (c)   "Project" means those portions of those lands, in Hennepin County,
            Minnesota, described as:
                  Lots 1, 2, 3, 4, 5, 6, 7, 8, 9,10 and 11, Auditor's
                  Subdivision No. 178 Hennepin County, Minnesota,
            from time to time owned or leased by Landlord, and the developments
            and improvements from time to time constructed on those portions.
      (d)   "Building" means the building in which the Premises are located,
            being those portions of the Project on the Land.
      (e)   "Investors Building" means those portions of the Project on those
            lands in Hennepin County, Minnesota, described as:
                  Lots 6, 7 and 8, Auditor's Subdivision 178 Hennepin County,
                  Minnesota, except the Southeasterly 10 feet of the
                  Southwesterly 90 feet of said Lot 8.
      (f)   "Roanoke Building" means those portions of the Project on those
            lands located in Hennepin County, Minnesota, described as:
                  Lots 3, 4 and 5, Auditor's Subdivision No. 178 Hennepin
                  County, Minnesota.
      (g)   "Baker Building" means those portions of the Project on those lands
            located in Hennepin County, Minnesota, described as:
                  Lots 1 and 2, Auditor's Subdivision No. 178 Hennepin County,
                  Minnesota.
      (h)   "Rentable Components" means the Building, Investors Building,
            Roanoke Building and Baker Building, in each case excluding Common
            Areas and Parking Facilities.
      (i)   "Parking Facilities" means those portions of the Project from time
            to time designated by Landlord for vehicular parking.
      (j)   "Common Areas" means those portions of the Project (excluding
            Parking Facilities) not leased or designated for lease to tenants
            that Landlord provides for use in common by Landlord, Tenant, and
            other tenants of the Project (or by their respective sublessees,
            agents, employees, customers or licensees), whether or not those
            areas are open to the general public, and includes any fixtures,
            chattels, systems, decor, signs, facilities, or

                                       1
<PAGE>

            landscaping contained, maintained, or used in connection with those
            areas, and is deemed to include the city sidewalks adjacent to the
            Land and adjoining lands and any pedestrian walkway system (either
            above or below ground) or other facility open to the general public
            in respect of which Landlord is from time to time subject to
            obligations arising from the Project, but does not include any space
            on office floors designated by Landlord for use in common by tenants
            and other persons.
      (k)   "Delivery Facilities" means those portions of the Common Areas from
            time to time designated by Landlord as facilities to be used in
            common by Landlord, tenants in the Project, and others for purposes
            of loading, unloading, delivery, dispatch, and holding of
            merchandise, goods and materials entering or leaving the Project and
            giving vehicular access to those portions of the Project.
      (l)   "Section" means a section of this Exhibit B.

1.02  Normal Business Hours  Except as otherwise specifically provided in this
      Lease, normal business hours for the Building shall be from 8:00 a.m. to
      6:00 p.m. Monday through Friday, and 8:00 a.m. to 1:00 p.m. Saturday,
      excluding days which are legal or statutory holidays in the jurisdiction
      in which the Building is located.

SECTION 2.00 DETERMINATION OF OCCUPANCY COSTS

2.01  Definitions  In this Section 2.00:

      (a)   "Tax Cost" means the Taxes accruing in respect of the calendar year
            in which the Fiscal Year begins, less that part of those Taxes
            attributable to the Parking Facilities.
      (b)   "Taxes" means the aggregate of all taxes, rates, charges, levies and
            assessments payable by Landlord and imposed by any competent
            authority upon or in respect of the Land and all improvements on the
            Land, including any tax imposed on the capital invested in the Land
            or improvements on the Land. In determining Taxes, any corporate
            income, profits, excess profits and business tax imposed upon the
            income of Landlord and any other impost of a personal nature charged
            or levied against the Landlord shall be excluded, except to the
            extent that it is levied in lieu of or as a substitute for increases
            in taxes, rates, charges or assessments in respect of the Land or
            any improvements on the Land.
      (c)   "HVAC Cost" means a percentage of the costs in the Fiscal Year for
            the operation, repair and maintenance of the system for heating,
            ventilating and cooling the Project as established by Landlord from
            time to time on a fair and equitable basis which reflects load and
            hours of operation.
      (d)   "Common Areas Costs" means all net costs, charges and expenses in
            respect of a Fiscal Year which are directly attributable to the
            operation, repair and maintenance of the Common Areas, including
            without limitation HVAC Cost.
      (e)   "Project Costs" means all net costs, charges and expenses in respect
            of a Fiscal Year which are directly attributable to the operation,
            repair and maintenance of the Project, but which are not
            attributable solely to the operation, repair or maintenance of the
            Common Areas, Parking Facilities, or any Rentable Component.
      (f)   "Square Feet in the Premises" means the number of square feet set
            out in Article 1.01(l) or 1.01(n) of the Lease, which for office
            tenants includes the number of square feet of unallocated space in
            the Building set out in Article 1.01(l) of the Lease.
      (g)   "Square Feet in the Building" means 307,245 square feet, being the
            aggregate of the rentable areas of office space (on a single-tenancy
            floor basis) and retail and service store space in the Building. If
            from time to time there is a material change in the rentable areas
            of the Building, Square Feet in the Building shall (until any
            further change) mean the number of square feet in the Building
            determined on completion of such change on the basis set out in
            Sections 3.01 and 3.03.

                                       2
<PAGE>

2.02  Occupancy Costs  Occupancy Costs for any Fiscal Year shall be an amount
      equal to the Operating Cost in respect of that Fiscal Year multiplied by
      the Square Feet in the Premises.

2.03  Determination Of Operating Cost  "Operating Cost" means an amount per
      square foot (calculated to the nearest tenth of a cent) established in
      accordance with generally accepted accounting principles and confirmed in
      a certificate of Landlord, and equal to the sum of the following costs in
      respect of a Fiscal Year, divided by the Square Feet in the Building:
      (a)   all net costs, charges and expenses directly attributable to the
            operation, repair and maintenance of the Building (excluding Common
            Areas and Parking Facilities), including, without limitation, Tax
            Cost and HVAC Cost, and
      (b)   a portion of the Common Areas Costs as established by Landlord from
            time to time on a fair and equitable basis, and
      (c)   that proportion of Project Costs which the gross area of the
            Building (excluding Common Areas and Parking Facilities) is of the
            aggregate gross area of the Rentable Components.
      Operating Cost under this Section 2.03 includes all net expenses properly
      allocable to the Fiscal Year for any capital improvement or structural
      repair incurred to reduce or limit increases in Operating Cost, or
      required by Landlord's insurance carrier or by the laws, rules,
      regulations or orders of any governmental or quasi-governmental authority
      having jurisdiction, which expenses shall be amortized at applicable
      interest rates over the useful capital life of the capital improvement or
      structural repair. If Landlord manages the Building or other applicable
      portion of the Project, Operating Cost under this Section 2.03 also
      includes an imputed management fee commensurate with the then-current
      Minneapolis-Saint Paul metropolitan market for management services.

2.04  Limitation on Operating Cost  In determining Operating Cost, the cost (if
      any) of the following shall be excluded except as specifically provided in
      Section 2.03:
      (a)   major structural repairs to the Project,
      (b)   improvements, additions or alterations to the Project,
      (c)   repair and replacement resulting from inferior or deficient
            workmanship, materials or equipment in the initial construction of
            the Project or for which Landlord is reimbursed by insurers,
      (d)   ground rent (if any), depreciation, amortization and interest on and
            capital retirement of debt,
      (e)   operation, repair and maintenance which is attributable solely to.
            the Parking Facilities or to any Rentable Component other than the
            Building, and
      (f)   leasing commissions.

2.05    When Services Are Not Provided  Notwithstanding Section 2.03, when and
        if any service which is normally provided by Landlord to some tenants of
        the building in their premises
        (a)  is not provided by Landlord in the Premises under the specific
             terms of the Lease, in determining Occupancy Costs for Tenant, the
             cost of that service (except as it relates to Common Areas, those
             spaces on office floors designated by Landlord for use in common by
             tenants and other persons in the Building, and janitorial services)
             shall be excluded, and
        (b)  is not provided by Landlord in a significant portion of the
             Building, in determining Occupancy Costs for Tenant, the cost of
             that service shall be divided by the number of square feet in the
             Building in which Landlord provides that service, determined on the
             basis set out in Sections 3.01 and 3.03.

2.06    Shared Facilities, Services and Utilities  If any facilities, services
        or utilities:
        (a)  for the operation, repair and maintenance of the Project are
             provided from another building or other buildings, owned or
             operated by Landlord or an affiliate of Landlord, or

                                       3
<PAGE>

        (b)  for the operation, repair and maintenance of another building or
             other buildings owned or operated by Landlord or an affiliate of
             Landlord are provided from the Project,
        the net costs, charges and expenses for those facilities, services and
        utilities shall, for the purpose of Section 2.03, be allocated by
        Landlord between the Project and the other building or among the Project
        and the other buildings on a fair and equitable basis.

2.07    Credit to Common Areas  Landlord shall use reasonable efforts to recover
        where circumstances so permit an equitable share of the cost of
        operating and maintaining Common Areas from owners or occupants of
        neighboring properties and others who benefit from the use of the Common
        Areas, and shall credit any recovery to the gross cost before
        determination of Common Areas Costs.

2.08    Occupancy Adjustment  If the Project is not fully leased and occupied in
        any Fiscal Year, appropriate adjustments shall be made in determining
        Occupancy Costs under this Section 2.00 so that Occupancy Costs shall be
        as though the Project had been fully leased and occupied during that
        Fiscal Year.

2.09    Partial Fiscal Year  If the Term commences after the beginning of or
        terminates before the end of a Fiscal Year, any amount payable by Tenant
        under Section 2.02 shall be adjusted accordingly.

SECTION 3.00 DETERMINATION OF SQUARE FEET IN THE PREMISES

3.01    Office Space -- Single Tenancy Floors  For the purposes of this Lease,
        the number of square feet of office space in the Premises on a
        single-tenancy floor in the Building (if any) shall be calculated from
        dimensioned Architects drawings to the inside face of the glass in the
        permanent exterior building walls (whether or not the glass extends to
        the floor) or to the inside finish of those walls if they contain no
        glass. It shall include all space within exterior building walls except
        for stairs (other than stairs exclusively serving a tenant occupying
        offices on more than one floor), elevator shafts, flues, pipe shafts,
        vertical ducts, and other vertical risers which penetrate the floor and
        their enclosing walls. No deduction shall be made for washrooms, janitor
        closets, air conditioning rooms, fan closets, or for electrical or
        telephone cupboards within and servicing only that floor or servicing a
        single tenant on more than one floor, or for any other rooms, corridors,
        or areas available to the tenant on that floor for its use, furnishings,
        or personnel, or for any columns located wholly or partially within the
        space, or for any enclosures around the periphery of the Building used
        for the purpose of heating, ventilating or cooling.

3.02    Office Space -- Multiple-Tenancy Floors  For the purposes of this Lease,
        the number of square feet of office space in the Premises on a
        multiple-tenancy floor in the Building (if any) shall be calculated from
        dimensioned architect's drawings to the inside finish of permanent
        exterior building walls or the inside face of the glass as described in
        Section 3.01, to the face of permanent interior walls and to the center
        line of demising partitions. No deductions shall be made for any columns
        located wholly or partially within the space, or for any enclosures
        around the periphery of the Building used for the purpose of heating,
        ventilating or cooling.

3.03    Retail Space  For the purposes of this Lease, the number of square feet
        of retail and service store space in the Building, whether above or
        below grade, is calculated from dimensioned Architect's drawings to the
        inside face of permanent exterior building walls, to the face of
        permanent interior walls, to the center line of demising partitions, and
        to the center line of a predetermined lease line (usually referred to as
        the storefront line) in the case of retail and service store space
        facing onto either an interior public mall or corridor or onto a public
        street or lane. No deduction is made for vestibules inside the permanent
        exterior building walls or inside the predetermined lease line, or for
        any columns located wholly or partially within the space.

                                       4
<PAGE>

SECTION 4.00 LOADING AND DELIVERY

4.01    The delivery and shipping of merchandise, supplies, fixtures, and other
        materials or goods of any kind to or from the Premises and all loading,
        unloading, and handling of them shall be done only at such times, in
        such areas, by such means, and through such elevators, entrances, malls,
        and corridors as are designated from time to time by Landlord.

4.02    Landlord accepts no liability and is hereby relieved and released by
        Tenant in respect of the operation and adequacy of the Delivery
        Facilities, the acts or omissions of any person or persons engaged in
        the operation of the Delivery Facilities, or in the acceptance, holding,
        handling, delivery or dispatch of any goods for or on behalf of Tenant,
        and any claim of Tenant by reason of damage, loss, theft or any
        acceptance, holding, handling, delivery or dispatch, or failure of any
        acceptance, holding, handling or dispatch, or any error, negligence or
        delay in acceptance, holding, handling, or dispatch.

4.03    Landlord may from time to time make and amend regulations for the
        orderly and efficient operation of the Delivery Facilities, and may
        require the payment of reasonable and equitable charges for delivery
        services and demurrage provided by Landlord.

SECTION 5.00 NON-DISCRIMINATION

5.01    Non-Discrimination  If Tenant operates or has the right to operate under
        this Lease any store, shop, restaurant, cafeteria, restroom, or any
        other facility of a public nature in the Building, Tenant shall not
        discriminate by segregation or otherwise against any person or persons
        because of race, creed, color, or national origin in furnishing, or by
        refusing to furnish, to such person or persons the use of any such
        facility including any and all services, privileges, accommodations, and
        activities provided thereby.

5.02    Enforcement  Tenant's noncompliance with the provisions of this Section
        5.00 shall constitute a material breach of this Lease. In the event of
        such noncompliance, Landlord may take appropriate action to enforce
        compliance, may terminate this lease, or may pursue such other remedies
        as may be provided by law.

                                       5
<PAGE>

BAKER CENTER                                                           EXHIBIT C

                                  BAKER CENTER
                             RULES AND REGULATIONS

1.    Security  Landlord may from time to time adopt appropriate systems and
      procedures for the security or safety of the Building, any persons
      occupying, using or entering the same, or any equipment, finishings or
      contents thereof, and Tenant shall comply with Landlord's reasonable
      requirements relative thereto.

2.    Locks  Landlord may from time to time install and change locking
      mechanisms on entrances to the Building, common areas thereof, and the
      Premises, and (unless 24 hour security is provided by the Building) shall
      provide to Tenant a reasonable number of keys and replacements therefor to
      meet the bona tide requirements of Tenant. In these rules "keys" include
      any device serving the same purpose. Tenant shall not add to or change
      existing locking mechanisms on any door in or to the Premises without
      Landlord's prior written consent. If with Landlord's consent, Tenant
      installs lock(s) incompatible with the Building master locking system:

      (a)   Landlord, without abatement of Rent, shall be relieved of any
            obligation under the Lease to provide any service to the affected
            areas which require access thereto.

      (b)   Tenant shall indemnify Landlord against any expense as a result of
            forced entry thereto which may be required in an emergency, and

      (c)   Tenant shall at the end of the Term and at Landlord's request remove
            such lock(s) at Tenant's expense.

3.    Return of Keys  At the end of the Term, Tenant shall promptly return to
      Landlord all keys for the Building and Premises which are in possession of
      Tenant.

4.    Windows  Tenant shall observe Landlord's rules with respect to maintaining
      window coverings at all windows in the Premises so that the Building
      presents a uniform exterior appearance, and shall not install any window
      shades, screens, drapes, covers, or other materials on or at any window in
      the Premises without Landlord's prior written consent. Tenant shall ensure
      that window coverings are closed on all windows in the Premises while they
      are exposed to the direct rays of the sun.

5.    Repair, Maintenance, Alterations and Improvements  Tenant shall carry out
      Tenant's repair, maintenance, alterations and improvements in the Premises
      only during times agreed to in advance by Landlord and in a manner which
      will not interfere with the rights of other tenants in the Building.

6.    Water Fixtures  Tenant shall not use water fixtures for any purpose for
      which they are not intended, nor shall water be wasted by tampering with
      such fixtures. Any cost or damage resulting from such misuse by Tenant
      shall be paid for by Tenant.

                                        I
<PAGE>

7.    Personal Use of Premises  The Premises shall not be used or permitted to
      be used for residential, lodging or sleeping purposes or for the storage
      of personal effects or property not required for business purposes.

8.    Heavy Articles  Tenant shall not place in or move about the Premises
      without Landlord's prior written consent any safe or other heavy article
      which in Landlord's reasonable opinion may damage the Building, and
      Landlord may designate the location of any heavy articles in the Premises.

9.    Smoking Policy  Smoking is not permitted throughout the Project common
      areas to include, but not limited to, elevator lobbies, corridors and
      restrooms.

10.   Bicycles, Animals  Tenant shall not bring any animals or birds into the
      Building, and shall not permit bicycles or other vehicles inside or on the
      sidewalks outside the Building except in areas designated from time to
      time by Landlord for such purposes.

11.   Deliveries  Tenant shall ensure that deliveries of materials and supplies
      to the Premises are made through such entrances, elevators and corridors
      and at such times as may from time to time be designated by Landlord, and
      shall promptly pay or cause to be paid to Landlord the cost of repairing
      any damage in the Building caused by any person making such deliveries.

12.   Furniture and Equipment  Tenant shall ensure that furniture and equipment
      being moved into or out of the Premises is moved through such entrances,
      elevators and corridors and at such times as may from time to time be
      designated by Landlord, and by movers or a moving company approved by
      Landlord, and shall promptly pay or cause to be paid to Landlord the cost
      of repairing any damage in the Building caused thereby. Tenant shall be
      required to use a temporary hard surface to protect corridor and elevator
      carpets when moving heavy furniture in, out or about the Building.

13.   Solicitations  Landlord reserves the right to restrict or prohibit
      canvassing, soliciting or peddling in the Building.

14.   Food and Beverages  Only persons approved from time to time by Landlord
      may prepare, solicit orders for, sell, serve or distribute foods or
      beverages in the Building, or use the elevators, corridors or common areas
      for any such purpose. Except with Landlord's prior written consent and in
      accordance with arrangements approved by Landlord, Tenant shall not permit
      on the Premises the use of equipment for dispensing food or beverages or
      for the preparation, solicitation of orders for, sale, serving or
      distribution of food or beverages.

15.   Refuse  Tenant shall place all refuse in proper receptacles provided by
      Tenant at its expense in the Premises or in receptacles (if any) provided
      by Landlord for the Building, and shall keep sidewalks and driveways
      outside the Building, and lobbies, corridors, stairwells, ducts and shafts
      of the Building, free of all refuse.

16.   Obstructions  Tenant shall not obstruct or place anything in or on the
      sidewalks or driveways outside the Building or in the lobbies, corridors,
      stairwells or other common areas of the Building, or use such locations
      for any purpose except access to and exit from the Premises without
      Landlord's prior written consent. Landlord may remove at Tenants expense
      any such obstruction or thing (unauthorized by Landlord) without notice or
      obligation to Tenant.

                                       II
<PAGE>

17.   Dangerous or Immoral Activities  Tenant shall not make any use of the
      Premises which involves the danger of injury to any person, nor shall the
      same be used for any immoral purpose.

18.   Proper Conduct  Tenant shall not conduct itself in any manner which is
      inconsistent with the character of the Building as a first class building
      or which will impair the comfort and convenience of other tenants in the
      Building.

19.   Employees, Agents and Invitees  In these Rules and Regulations, Tenant
      includes the employees, agents, invitees and licensees of Tenant and
      others permitted by Tenant and others permitted by Tenant to use or occupy
      the Premises.

                                      III
<PAGE>

                               SUPPLEMENTAL TERMS
                                 AND CONDITIONS

1.    The following is added as Article 22.00:

      ARTICLE 22.00 LANDLORD'S WORK

      22.01 Landlord agrees to construct the Tenant Improvements to the Premises
            in accordance with working drawings to be approved by Landlord &
            Tenant, which upon such approval will be attached hereto and
            incorporated herein by reference as Exhibit D-3. Such working
            drawings will be based on the fit plan attached hereto as Exhibit
            D-1. Improvements to the Premises will be made using Building
            Standard Materials defined on attached Exhibit D-2.

      22.02 Any additions or modifications to the Tenant Improvements described
            in Article 22.01 and Exhibit D-1 which are requested by Tenant and
            which result in an increase in the total costs of the Tenant
            Improvements are to be paid by Tenant (plus 10% of that cost for
            coordination by Landlord).

      22.03 Provided the Lease is executed by both Landlord and Tenant, Landlord
            requires forty-five (45) days from the date Landlord and Tenant
            approve working drawings (construction drawings) to substantially
            complete the Premises for occupancy.

2.    The following is added as Article 23.00:

      ARTICLE 23.00 EXPANSION SPACE

      23.01 If Tenant is not in default under the Lease, Tenant shall have the
            option to expand after September 31, 1998, provided Tenant gives
            written notice to Landlord no earlier than nine (9) months prior to
            the date when the additional space is needed for occupancy by
            Tenant. Landlord shall notify Tenant within thirty (30) days of
            Tenant's notice whether such additional space can be accommodated
            with either contiguous or noncontiguous space in the Building
            ("Expansion Space") or by relocating Tenant to new space within the
            Project which will accommodate Tenant's Premises plus the amount of
            additional space requested by Tenant in their notice ("New
            Premises").

            Should Tenant's additional space request be accommodated through
            Expansion Space, then:

            (a)   Landlord shall build out the "Expansion Space" to be of a
                  comparable level to Tenant's existing space, based on mutually
                  approved plans; and

            (b)   Occupancy Costs for the Expansion Space shall be determined in
                  accordance with this Lease; and

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            (c)   Commencement Date for the lease of Expansion Space shall be
                  the date set forth in Tenant notice to Landlord; and

            (d)   Term on the Expansion Space shall end on the later of (i) on
                  the expiration of this Lease or (ii) the last day of the
                  thirty-sixth (36th) month after the Commencement Date of the
                  Expansion Space; and

            (e)   If the expiration of the Term on the Expansion Space is later
                  than the expiration of this Lease then Tenant agrees to extend
                  the Term of this Lease to be co-terminous with the Expansion
                  Space; and

            (f)   Annual Rent on the Expansion Space and the extended term on
                  the Premises, if any, will be at Market Rent determined in
                  accordance with Article 24.00 of this Lease.

            Should Tenant's additional space be accommodated through New Space,
            then:

            (a)   Landlord shall build out the New Space to be of a comparable
                  level and layout to Tenant's existing space, based on mutually
                  approved plans; and

            (b)   Tenant agrees to amend this Lease to extend the Term to be
                  five (5) years from the date Tenant relocates to the New
                  Space; and

            (c)   Annual Rent on the New Space shall be at Market Rent
                  determined in accordance with Article 24.00 plus the recapture
                  of reduced Annual Rent under this Lease during the initial two
                  years of the Term. The calculation of such reduced rent is two
                  dollars ($2.00) per square foot during the first lease year
                  ($7,474.00) and one dollar ($1.00) per square foot during the
                  second lease year ($3,737). Such reduced rent will be
                  amortized 10% per annum and paid as additional rent over the
                  last five (5) years of the term.

            If Landlord notifies Tenant that it is unable to accommodate Tenant
            request for additional space or does not respond within thirty (30)
            days of Tenant notice and provided Tenant has greater than twelve
            (12) months remaining on its original Term, Tenant shall have the
            right to cancel this Lease with six (6) months prior written notice
            and payment to Landlord, at the time of notice, liquidated damages
            equal to unamortized transaction costs (which upon final
            determination will be set forth as Exhibit E of this Lease) plus
            seven thousand four hundred seventy-four dollars and no/100
            ($7,474.00) if canceled prior to the end of the third lease year and
            three thousand seven hundred thirty seven dollars and no/100
            ($3,737.00) if canceled after the third lease year and prior to the
            end of the fourth lease year. Transaction costs shall be equal to
            all Tenant Improvement costs and commissions paid to Madison
            Marquette Realty Services by St. Paul Properties, Inc. and will be
            amortized at 10% per annum over the term of the Lease.

      23.02 Documentation Landlord and Tenant shall execute and deliver
            appropriate documentation to evidence any additional space taken
            under this Article 23.00.

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      23.03 Non-Severability The rights of Tenant under this Article 23.00 shall
            not be severed from this Lease or separately sold, assigned, or
            otherwise transferred, and shall expire on the expiration of earlier
            termination of this Lease.

3.    The following is added as Article 24.00:

      ARTICLE 24.00 MARKET RENT

      24.01 Definition "Market Rent" means the amount of cash (exclusive of
            Occupancy Costs) which a landlord would receive annually by then
            renting the space in questions assuming the landlord to be a prudent
            person willing to lease but being under no compulsion to do so,
            assuming the tenant to be a prudent person willing to lease but
            being under no compulsion to do so, assuming a lease term equal to
            the term in question, and assuming a lease containing the same terms
            and provisions as those contained in this Lease.

      24.02 Determination of Market Rent Whenever Annual Rent under this Lease
            is based on the Market Rent, Landlord shall initially determine the
            Market Rent and shall thereupon give Tenant notice of the amount of
            Annual Rent and the basis on which Landlord made its determination
            of that amount. Upon receipt of that notice, Tenant shall pay the
            Annual Rent stated in that notice in the manner set out in Article
            4.01.

      24.03 Disagreement on Market Rent

            (a)   If Tenant does not agree with the Landlord's determination of
                  Market Rent, Tenant shall nevertheless pay to Landlord the
                  amount set out in the notice Landlord gives under Article
                  21.02 and Tenant shall give notice to Landlord of that
                  disagreement within ten (10) days of receipt of that notice
                  from Landlord.

            (b)   If Tenant gives Landlord notice of disagreement, Landlord
                  shall immediately refer the matter to an individual (the
                  "Expert") selected by Landlord, subject to approval by Tenant,
                  such approval not to be unreasonably withheld, who shall be
                  deemed to be acting as an expert and not as an arbitrator. The
                  Expert shall make a determination of Market Rent as
                  expeditiously as possible.

            (c)   If the Market Rent as determined by the Expert is greater than
                  the Tenant has paid in accordance with the notice given under
                  Article 21.02, Tenant shall immediately pay to Landlord the
                  difference and shall after that make the payments of Annual
                  Rent as determined by the Expert. If the Market Rate as
                  determined by the Expert is less than Tenant has paid in
                  accordance with the notice given under Article 21.02, Landlord
                  shall immediately pay to Tenant the difference and Tenant
                  shall after that make the payments of Annual Rent as
                  determined by the Expert.

            (d)   If the Market Rent as determine by the Expert is less than 95%
                  of the amount set out in the notice under Article 21.02,
                  Landlord shall bear the costs and reasonable expenses of the
                  Expert. If the Market Rent as determined by the Expert is 95%
                  or more of the

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<PAGE>

                  amount set out in the notice under Article 21.02, Tenant shall
                  bear the costs and reasonable expenses of the Expert.

4.    The following is added as Article 25.00:

      Article 25.00 RIGHT OF FIRST OFFER

      25.01  Provided there has been no default by Tenant, Tenant shall have the
             continual "Right of First Offer" to lease the space ("Offered
             Space") containing approximately 524 square feet, more or less, on
             the fourth floor of the Peavey Building, shown crosshatched on
             Exhibit A, upon the terms and conditions set out in this Article
             25.00, if:

            (a)   Tenant is not in default under this Lease at the time such
                  option is exercised and at the time such option is to
                  commence; and

            (b)   If Landlord intends to offer for lease the "Offer Space" to
                  another party including an existing tenant, Landlord will give
                  Tenant written notification of its intent; and

            (c)   Tenant delivers their response to Landlord not later than
                  seven (7) business days following receipt of notification by
                  Landlord of their intent to lease said "Offer Space"; and

            (d)   Tenant shall have not less than twenty-four months remaining
                  on the term of its Lease. If Tenant fails to exercise its
                  right to lease the Offer Space, Tenant shall have no further
                  right to lease the Offer Space under this Article 25.01 until
                  the Offer Space has been leased and again becomes available to
                  Landlord for releasing or until two (2) months have passed if
                  the Offer Space remains unleased, provided Landlord shall not
                  then be negotiating, in good faith, a lease of such space.

      25.02 Terms A lease of space under this Article 25.00 shall contain the
            following:

            (a)   Annual Rent shall be equal to Market Rent as set out in
                  Article 24.00 as of the commencement of the Offered Space; and

            (b)   Occupancy Costs shall be determined in accordance with this
                  Lease; and

            (c)   Commencement Date for the lease of Offered Space shall be
                  thirty (30) days after the date Tenant notifies Landlord of
                  their intent to lease the Offered Space; and

            (d)   Term shall end on the expiration of this Lease; and

            (e)   The Offer Space shall be taken in "as is" condition; and

            (f)   The other terms and conditions shall be as set out in this
                  Lease.

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<PAGE>

      25.03 Documentation  Within fifteen (15) days of receipt from Landlord,
            Tenant shall execute and deliver to Landlord those instruments
            Landlord may request to evidence any lease of space under this
            Article 25.00.

      25.04 Non-Severability  The rights of Tenant under this Article 25.00
            shall not be severed from this Lease or separately sold, assigned,
            or otherwise transferred, and shall expire on the expiration or
            earlier termination of this Lease.

5.    The following is added as Article 26.00:

      Article 26.00 PARKING

      26.01 Parking  During the Term, Landlord will make available to Tenant, at
            Tenant's expense, one parking space in the Parking Facilities. The
            parking space will be for the sole use of Tenant. The parking
            agreement shall be on Landlord's standard parking agreement and at
            the monthly market rental rate from time to time in effect. Landlord
            will use reasonable efforts to accommodate Tenant's parking on level
            11 of the Parking Facility.

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<PAGE>

                           Building Standard Materials               Exhibit D-2

                                Peavey Building

In order to simplify the design process and to maintain a consistency in the
quality of the tenant finishes, the Baker Center has assembled "building
standard materials" that are recommended for use in interior construction. These
items include:

1.    Acoustical Ceiling System

      a.    Grid system - 2 x 2 suspended white metal grid - laser leveled.
      b.    Ceiling tiles - 2 x 2 recessed revealed edge textone tile
      c.    Ceiling height - 8'0" clear

2.    Light Fixtures

      2' x 4' - 3 tube, T-8 light fixture, 18 cube parabolic fixture with 4"
      depth. Landlord shall supply sufficient fixtures so as to allow a
      maintained maximum at desktop of 70-75 footcandles.

3.    Window Blinds

      1" blind

4.    Carpet

      Type 1 - 32 oz. cut pile
      Type 2 - 22 oz. level loop
      Base - 2 1/2" vinyl

5.    Wallcover

      Complete selection of 12-15 oz. type 1 in stock vinyl wallcover

6.    Wall Construction

      2 1/2" metal studs with 5/8" sheetrock - both sides. Sheetrock taped and
      sanded to accept paint or wall covering. 1 1/2" sound intimation
      insulation in demising walls.

7.    Tenant Entrances

      a.    Doors - 3'0" x 8'0" solid core oak doors stained "Medium Oak"
            mounted on hollow metal frames.

<PAGE>

      b.    Sidelights - 18" x 8'0" sidelight with 1/4" wire glass mounted in
            hollow metal frame.

      c.    Hardware - mortise lock -Entrance Sets Satin Chrome
                                    -Latch Sets Satin Chrome

8.    Interior Doors

      3'0" x 8'0" solid core oak doors - stain "Medium Oak". Slim Line Timely
      frames, painted to match tenants decorum.

9.    Sprinklers

      Concelor sprinkler heads up to a maximum of 1 per 136 usf and all
      associated piping.

<PAGE>

                                  EXHIBIT D1-B

                          DOOR AND WALL FINISH SCHEDULE

                              [FLOOR PLAN OMITTED]

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