Document:

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                            ASSET PURCHASE AGREEMENT
                            ------------------------

                                  by and among

                              Westcon Group, Inc.,
                                  Vodaone Corp.
                                  Inacom Corp.,
                                       and
                          Inacom Communications, Inc..

                            dated as of June 12, 2000

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                                TABLE OF CONTENTS

                                                                            PAGE

ARTICLE I    Definitions.......................................................1

ARTICLE II   Purchase and Sale of Assets; Assignment and Assumption of
             Liabilities.......................................................4
             2.1      Purchase and Sale of Assets..............................4
             2.2      Excluded Assets..........................................5
             2.3      Assignment and Assumption of Liabilities.................6

ARTICLE III  Purchase Price....................................................6
             3.1      Payment of Purchase Price................................6

ARTICLE IV   Closing...........................................................7
             4.1      The Closing..............................................7
             4.2      Further Assurances.......................................7

ARTICLE V    Representations and Warranties of Parent and Seller...............7
             5.1      Organization; Good Standing..............................7
             5.2      Corporate Authorization and Necessary Permits, etc.......7
             5.3      All Business Assets, Lists of Properties,
                      Contracts, etc...........................................8
             5.4      Status of Documents......................................9
             5.5      Title; Properties........................................9
             5.6      Intellectual Property....................................9
             5.7      Legal Compliance........................................10
             5.8      Litigation..............................................10
             5.9      No Conflict.............................................10
             5.10     Financial Statements; No Material Adverse Change........11
             5.11     Taxes...................................................12
             5.12     No Brokers..............................................12
             5.13     Environmental Compliance................................12
             5.14     Employee Benefit Information............................12
             5.15     Labor Disagreements.....................................13
             5.16     Employees...............................................13
             5.17     No Other Agreements to Sell Assets or Business..........13
             5.18     Product Warranties......................................13
             5.19     Improper Payments.......................................13
             5.20     Adverse Contracts.......................................13
             5.21     Inventory...............................................14
             5.22     Customers, Suppliers and Distributors...................14
             5.23     Accounts Receivable.....................................14

ARTICLE VI   Representations and Warranties of Buyer and Westcon..............14
             6.1      Organization; Good Standing.............................14
             6.2      Corporate Authorization, etc............................14
             6.3      Litigation..............................................15
             6.4      No Conflict.............................................15

                                       1
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             6.5      No Brokers..............................................15
             6.6      Investigation by Buyer..................................15

ARTICLE VII  Conditions Precedent to Obligations of Buyer and Seller..........15
             7.1      Conditions Precedent to Obligations of Buyer............15
             7.2      Bankruptcy Approvals....................................16
             7.3      Conditions Precedent to Obligations of Seller...........16
             7.4      Conditions Precedent to Obligations of Both Buyer
                      and Seller..............................................17

ARTICLE VIII Documents to Be Delivered at the Closing.........................17
             8.1      Items to Be Delivered by Seller at the Closing..........17
             8.2      Items to Be Delivered by Buyer at the Closing...........18

ARTICLE IX   Further Covenants and Agreements of Seller and Buyer.............18
             9.1      Conduct of the Business; Access.........................18
             9.2      Confidentiality/Announcements...........................19
             9.3      Survival of Representations and Warranties;
                      Indemnities.............................................19
             9.4      Conditions..............................................21
             9.5      Cooperation.............................................21
             9.6      Employee and Employee Benefit Matters...................22
             9.7      Corporate Records.......................................22
             9.8      Collection of Receivables...............................22
             9.9      Taxes...................................................22
             9.10     Required Filings........................................23
             9.11     Business Name...........................................23
             9.12     No Solicitation.........................................23

ARTICLE X    Dispute Resolution...............................................24
             10.1     Dispute Resolution......................................24

ARTICLE XI   Termination and Cost-Reimbursement Fee...........................25
             11.1     Termination.............................................25
             11.2     Effect of Termination...................................25
             11.3     Cost-Reimbursement Fee..................................26

ARTICLE XII  Miscellaneous....................................................26
             12.1     Expenses................................................26
             12.2     Benefit; Assignment.....................................26
             12.3     Governing Law...........................................26
             12.4     Breach; Failure of Condition............................26
             12.5     Notices.................................................26
             12.6     Headings................................................27
             12.7     Facsimile/Counterparts..................................27
             12.8     Entire Agreement; Third Party Beneficiaries.............27
             12.9     Waiver; Modification....................................27
             12.10    Updating of Schedules...................................27
             12.11    Severability............................................28

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                             Exhibits and Schedules
                             ----------------------

SCHEDULES
---------

Schedule 2 1               Assets
Schedule 2 1(e)    Lockbox Account
Schedule 2 2(a)            Excluded Assets
Schedule 2 3(c)            Excluded Liabilities
Schedule 5 1(a)(ii)        Capital Stock
Schedule 5 2(a)            Corporate Authorization
Schedule 5 3(a)            Real Property and Leases
Schedule 5 3(b)            Personal Property
Schedule 5 3(c)            Contracts
Schedule 5 5               Title; Properties
Schedule 5 6(a)            Owned Intellectual Property
Schedule 5 6(b)            Infringements
Schedule 5 6(c)            License Agreements
Schedule 5 6(f)            Web Sites
Schedule 5 8               Litigation
Schedule 5 9               No Conflict
Schedule 5 10(b)           Material Adverse Change
Schedule 5 13              Environmental Compliance
Schedule 5 14              Employee Benefits
Schedule 5 16              Employee List
Schedule 5 20              Adverse Contracts
Schedule 5 21              Inventory
Schedule 5 22              Customers, Suppliers and Distributors
Schedule 8 1(f)            Lucent-VAR Contracts
Schedule 9 1               Access to Customers
Schedule 9 6(a)            Key Employees
Schedule 11 1              Funding of Business

EXHIBIT
-------

Exhibit 2 1                Bill of Sale
Exhibit 2 3(b)             Assignment and Assumption Agreement
Exhibit 8 1(g)             Custom Edge Agreement
Exhibit 8 1(i)             Transition Services Agreement
Exhibit 9 6(a)             Employment Agreement

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                            ASSET PURCHASE AGREEMENT

     This Asset Purchase Agreement (this "Agreement"), dated as of June 12, 2000
(the "Effective Date"), is made and entered into by and among Westcon Group,
Inc., a New York corporation ("Westcon"), Vodaone Corp., a New York Corporation
("Buyer"), Inacom Corp. ("Parent"), a Delaware corporation and Inacom
Communications, Inc., a Nebraska corporation, ("Seller").

                              W I T N E S S E T H:
                              - - - - - - - - - -

     WHEREAS, Seller wishes to sell to Buyer, and Buyer wishes to purchase from
Seller, the assets identified herein, all on the terms and subject to the
conditions provided herein;

     WHEREAS, Buyer wishes to assume certain of the liabilities and obligations
of Seller relating to the Business as defined below, all on the terms and
subject to the conditions provided herein; and

     WHEREAS, Buyer is a subsidiary of Westcon, and Seller is a subsidiary of
Parent;

     WHEREAS, Parent and Subsidiary are considering filing voluntary petitions
for relief under Chapter 11 of Title 11 of the United States Code (the
"Bankruptcy Code").

     NOW, THEREFORE, in consideration of the premises and of the mutual
representations, warranties and agreements herein contained, the parties hereto
agree as follows:

                                    ARTICLE I
                                    ---------

                                   Definitions
                                   -----------

                                   DEFINITIONS

     The following terms shall have the following meanings for all purposes of
this Agreement and such meanings are equally applicable both to the singular and
plural forms of the terms defined.

     1.1 "Acquisition Transaction" shall mean (x) with respect to Parent, (a)
less than a majority of the members of the Parents's board of directors shall be
persons who either (i) were serving as directors on the Effective Date or (ii)
were nominated as directors and approved by the vote of the majority of the
directors who are directors referred to in clause (i) above or this clause (ii);
or (b) the stockholders of the Parent shall approve any plan or proposal for the
liquidation or dissolution of the Parent; or (c) a person or group of persons
acting in concert (other than the direct or indirect beneficial owners of the
capital stock of the Seller as of the Effective Date) shall, as a result of a
tender or exchange offer, open market purchases, privately negotiated purchases
or otherwise, have become the direct or indirect beneficial owner (within the
meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended from
time to time) of securities of the Parent representing 50% or more of the
combined voting power of the outstanding voting securities for the election of
directors or shall have the right to elect a majority of the board of directors
of Parent; or (d) if all or substantially all of the assets of the Parent are
sold in a transaction or series of transactions other than sales of inventory in
the Ordinary Course of Business, or (y) with respect to the Seller, if the
Parent shall cease to own at least 50% of the capital

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stock of the Seller or if all or substantially all of the assets of the Seller
are sold in a transaction or series of transactions other than sales of
inventory in the Ordinary Course of Business.

     1.2 "Affiliate" has the meaning set forth in Rule l2b-2 of the regulations
promulgated under the Securities Exchange Act of 1934, as amended.

     1.3 "Assignment and Assumption Agreement" shall have the meaning specified
in Section 2.3(b).

     1.4 "Bankruptcy Court" shall mean the United States Bankruptcy Court for
the District of Delaware, or any other United States Bankruptcy Court or
District Court having jurisdiction over any case or cases under the Bankruptcy
Code commenced by or against the Parent or the Seller.

     1.5 "Bill of Sale" shall have the meaning specified in Section 2.1 hereof.

     1.6 "Business" shall mean the business of the Seller of distributing
telecommunications systems and related products and services to computer
resellers and end-users as conducted by Seller immediately prior to the Closing
Date; provided that the Business shall not include the Seller's (i) structured
cable business, (ii) long distance reseller business (iii) the repair and
warranty business located in New Jersey; and (iv) Kure Associates, Inc. cabling
business.

     1.7 "Closing" shall have the meaning specified in Section 4.1 hereof.

     1.8 "Closing Balance Sheet" shall have the meaning specified in Section
3.1(c) hereof.

     1.9 "Closing Date" shall have the meaning specified in Section 4.1 hereof.

     1.10 "Code" shall mean the Internal Revenue Code of 1986, as amended. ----

     1.11 "Contract" shall mean any contract, agreement, distribution agreement,
franchise agreement, mortgage, indenture, license, lease, equipment lease,
commitment or other similar instrument or arrangement.

     1.12 "Confidential Information" means all confidential information and
trade secrets that are unique to Buyer, Westcon, Seller or Parent (as
applicable) including, without limitation, the identity, lists or descriptions
of any customers, referral sources or organizations; contract proposals, or
bidding information; business plans; and fee structure.

     1.13 [Intentionally Omitted]

     1.14 [Intentionally Omitted]

     1.15 "Custom Edge Agreement" shall have the meaning set forth in Section
8.1(g) hereof.

     1.16 "Custom Edge Facility" shall mean the facility operated by Custom
Edge, Inc., under the Custom Edge Agreement.

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     1.17 "Definitive Net Assets Value" shall have the meaning specified in
Section 3.1(c) hereof.

     1.18 "DIP Facility" shall have the meaning specified in Section 11.1(e).

     1.19 "Employee Benefit Plan" shall mean each (i) employee benefit plan
within the meaning of Section 3(3) of ERISA (notwithstanding that such plan may
be exempt from some or all of ERISA by virtue of its status as a "top hat" plan
or other exempt plan); and (ii) personnel policy; stock option plan or
agreement; collective bargaining agreement; bonus plan or arrangement; incentive
award plan or arrangement; vacation policy; severance pay plan, policy, or
agreement; deferred compensation agreement or arrangement; executive
compensation., or supplemental income arrangement; consulting agreement;
employment agreement; and other employee benefit plan, agreement, arrangement,
program, practice, or understanding, which is sponsored, maintained, or
contributed to by Seller or its Affiliate for the benefit of the Company
Personnel.

     1.20 "Employees" shall have the meaning set forth in Section 5.16.

     1.21 "ERISA" means the Employee Retirement Security Act of 1974, as
amended.

     1.22 "Excluded Assets" shall have the meaning specified in Section 2.2
hereof.

     1.23 "Excluded Liabilities" shall have the meaning specified in Section
2.3(c) hereof.

     1.24 "Furnishings" shall mean the vehicles, fixtures, equipment, leasehold
improvements, security systems, telephone systems, display stands, furniture and
similar furnishings used in the Business.

     1.25 "GAAP" shall mean generally accepted accounting principles in effect
in the United States.

     1.26 [Intentionally Omitted]

     1.27 "Governmental Authority" shall mean any governmental,
quasi-governmental, state, county, city, or other political subdivision of the
United States or any other country, or any agency, court or instrumentality,
foreign or domestic, or statutory or regulatory body thereof.

     1.28 [Intentionally Omitted]

     1.29 "HSR Act" shall have the meaning set forth in Section 9.10.

     1.30 "Intellectual Property" shall have the meaning set forth in Section
5.6 hereof.

     1.31 "Inventory" shall mean all products physically held or in transit for
sale or lease and service parts components (in each case without regard to
physical location) in the Ordinary Course of Business of the Seller.

     1.32 "Knowledge" means that which is actually known and that which would be
known or understood after due and diligent inquiry by Paul Reitmeier, George
Chadwick, Reggie McGaugh, Dirk Bennetch, Michelle Gilbert, Jennifer Jensen and
Bruce Tomas.

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     1.33 "Liability" means any liability (whether known or unknown, whether
absolute or contingent, whether liquidated or unliquidated, and whether due or
to become due), including any liability for Taxes.

     1.34 "Material Adverse Effect" and "Material Adverse Change " shall mean
any effect or change that is or, as far as can reasonably be determined, is
reasonably likely to be materially adverse to the results of operations or
Assets of the Business.

     1.35 "Ordinary Course of Business" shall mean the ordinary course of
business consistent with past custom and practice with due regard however, to
the possibility that the Parent will seek protection under the federal
bankruptcy law and as a result thereof, that the Seller's employees and
customers may terminate their relationships with the Seller, provided that such
employees and customers are not, in Buyer's judgment, material to the continued
conduct of the Business.

     1.36 "Person" shall mean a natural person, a corporation, a limited
liability company, a partnership, or other entity or association, as the context
requires.

     1.37 "Personnel" shall mean each current employee, former employee,
officer, director or independent contractor of Seller whose employment
responsibilities relate to the Business.

     1.38 "Petition Date" shall mean the date on which the cases with respect to
the Parent or the Seller are commenced pursuant to the filing of petitions for
relief under the Bankruptcy Code by or against the Parent or the Seller.

     1.39 "Plans" shall have the meaning specified in Section 5.14(a) hereof.

     1.40 "Purchase Price" shall have the meaning specified in Section 3.1(a)
hereof.

     1.41 "Tax" or "Taxes" shall mean all taxes, charges, fees, levies or other
assessments, including, without limitation, all net income, gross income, gross
receipts, sales, use, ad valorem, transfer, franchise, profits, license,
withholding, payroll, employment, excise, severance, stamp, occupation, property
or other taxes, customs, duties, fees, assessments or charges of any kind
whatsoever, together with any interest and any penalties, additions to tax or
additional amounts imposed by any taxing authority (domestic or foreign).

     1.42 "Threshold" shall have the meaning specified in Section 5.23 hereof.

     1.43 "Transaction Documents" shall mean this Agreement, the Transition
Services Agreement and all agreements referred to therein, the Bill of Sale and
any and all other transfer documents referred to in this Agreement.

     1.44 "Transferred Employee" shall have the meaning specified in Section
9.6(b) hereof.

     1.45 "Transition Services Agreement" shall have the meaning specified in
Section 8.1(i) hereof.

     References in this Agreement to articles, sections, appendices, paragraphs,
clauses, attachments, exhibits and schedules are to articles, sections,
appendices, paragraphs, clauses, attachment, exhibits and schedules in or to
this Agreement, unless otherwise indicated.

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                                   ARTICLE II
                                   ----------

      Purchase and Sale of Assets; Assignment and Assumption of Liabilities
      ---------------------------------------------------------------------

     2.1 Purchase and Sale of Assets. Subject to the terms and conditions of
this Agreement and in reliance upon the representations, warranties and
agreements of Parent and Seller and Buyer and Westcon contained herein, Buyer
agrees to purchase from Seller and Seller agrees to sell, transfer, assign,
convey and deliver to Buyer at the Closing all of Seller's right, title and
interest in and to all assets, properties and the business of Seller, tangible
and intangible, and wherever located as of the Closing Date used in connection
with the operation of the Business, all of which assets shall be listed on
Schedule 2.1, together with all other assets principally used in connection with
the operation of the Business (the "Assets"), including without limitation the
following assets:

          (a) All personal property owned by Seller as of the Closing Date
(including, without limitation, Inventories, machinery, Furnishings, and
supplies) used in connection with the operation of the Business and all
intangible property owned by Seller as of the Closing Date used in connection
with the operation of the Business;

          (b) All Intellectual Property Assets and any and all other
intellectual property owned by or licensed to Seller in connection with the
operation of the Business;

          (c) All Contracts of Seller which are listed in Schedule 5.3(c) and
all other written Contracts of Seller related to the Business and entered into
or incurred prior to the Closing in the Ordinary Course of Business;

          (d) All of the accounts receivable of Seller generated by the
operation of the Business as of the Closing Date;

          (e) All of Seller's rights in and to the lockbox account owned by the
Seller at the bank and account number(s) set forth on Schedule 2.1(e), into
which all proceeds of accounts receivable generated by the operation of the
Business are deposited; (f) Seller's customer list, supplier list and related
information used in connection with the operation of the Business;

          (g) All databases, software, data files and any and all other
materials and assets used in connection with the operation of the Business;

          (h) All subscriber rights in and to the telephone and telecopier
numbers of Seller which are set forth in Schedule 2.1 hereto;

          (i) All post office boxes and post office box numbers of Seller used
in connection with the operation of the Business;

          (j) Each permit, license, approval or other authorization from or with
any Governmental Authority for the operation of the Business which can be
transferred unilaterally by Seller pursuant to the Bill of Sale without any
consent or any other action by the issuing Governmental Authority (each, a
"Permit");

                                       5

<PAGE>

          (k) All domain names listed on Schedule 2.1 and any and all other
domain names and assets and properties, tangible or intangible, used or intended
for use with such domain names; and

          (l) All other assets and properties of Seller used in connection with
the operation of the Business, tangible and intangible, wherever located and
whether or not carried on Seller's books and records, including, without
limitation, all goodwill, know-how and trade secrets of Seller, and Seller's
books and records which are not Excluded Assets.

Seller's sale,  transfer,  assignment,  conveyance and delivery of the Assets to
Buyer shall be further evidenced by delivery from Seller to Buyer at the Closing
of a duly executed  bill of sale  substantially  in the form attached  hereto as
Exhibit 2.1 (the "Bill of Sale").

     2.2 Excluded Assets. The Assets shall not include any of the following
items or properties of Seller (the "Excluded Assets"), all of which shall be
retained by Seller at the Closing:

          (a) All of Seller's tangible and intangible assets and properties as
of the Closing Date used principally in connection with Seller's (i) structured
cable business, (ii) long distance reseller business (iii) the repair and
warranty business located in New Jersey; and (iv) Kure Associates, Inc. cabling
business.

          (b) Cash and cash equivalents, and interests in bank accounts and
securities excluding cash received after the date of the Closing Balance Sheet
in respect of accounts receivable included in the Definitive Net Assets Value,
which shall be paid to Buyer;

          (c) Such of Seller's tangible and intangible assets and properties as
of the Closing which are set forth on Schedule 2.2(a); ---------------

          (d) The Omaha, Nebraska facility leased by Parent and partially used
by Seller, located at 10802 Farnam Drive, Omaha, Nebraska 68154 and the Sioux
City, Iowa facility currently leased by Seller, located at Lot 7, Northbrook,
North Highway 75, Sioux City, Iowa;

          (e) Subject to Section 9.7 hereof all books and records of Seller
other than books and records relating to the conduct of the Business (it being
understood that, without limitation, Seller's federal and state tax
documentation and work papers, corporate minute books, stock ledger, general
books of account and books of original entry that comprise Seller's permanent
accounting or tax records constitute Excluded Assets); and, for avoidance of
doubt, it is hereby agreed that those books and records possession of which is
transferred to Buyer at the Closing are Assets, and those books and records
possession of which is not transferred to Buyer at the Closing are Excluded
Assets;

          (f) The intercompany accounts receivable of Seller;

          (g) Any interest of the Seller in Boston Computer Exchange
Corporation; and

          (h) Any rights to information contained in the Web sites registered
with the domain names listed on Schedule 2.1, other than information related to
the Business.

     2.3 Assignment and Assumption of Liabilities.

                                       6
<PAGE>

          (a) Subject to the terms and conditions of this Agreement and in
reliance upon the representations, warranties and agreements of Parent and
Seller and Buyer and Westcon contained herein, Seller shall assign to Buyer (at
the Closing), and Buyer shall assume (at the Closing) and agrees to perform and
discharge, the following "Assumed Liabilities": (i) all liabilities, obligations
and commitments incurred or arising on or after the Closing Date under the
Contracts listed in Schedule 5.3(c) and under all other Contracts of Seller
relating to the Business entered into or incurred prior to the Closing in the
Ordinary Course of Business and (ii) all Liabilities, debts, obligations,
indebtedness and commitments of the Seller incurred in connection with the
Business and provided for in the Closing Balance Sheet, provided however that,
all Excluded Liabilities shall be excluded therefrom.

          (b) Seller's assignment and Buyer's assumption of the Assumed
Liabilities shall be further evidenced by Buyer and Seller delivering to one
another, at the Closing, a duly executed Assignment and Assumption Agreement
substantially in the form attached hereto as Exhibit 2.3(b) ("Assignment and
Assumption Agreement"), and by any other appropriate documentation (including,
as to certain leases to be transferred to Buyer, separate assignment documents
for each such lease) reasonably satisfactory to the parties at the Closing.

          (c) Buyer expressly does not assume, and shall not be deemed to have
assumed, under this Agreement or otherwise by reason of the transactions
contemplated hereby, any Liabilities, debts, obligations, indebtedness and
commitments of Seller which do not constitute Assumed Liabilities ("Excluded
Liabilities"). Without limiting the foregoing, "Excluded Liabilities" shall
include: (i) all Taxes of Seller, including without limitation any Taxes arising
from the transfer of the Assets, (ii) all Liabilities, debts, obligations,
indebtedness and commitments of Seller incurred or arising under any Contract
which was entered into by Seller prior to the Closing which (A) arises out of or
results from acts of Seller prior to the Closing, other than the obligation to
pay accounts payable; (B) is performed in total or is required to be performed
in total prior to the Closing, (iii) all liabilities and obligations
(contractual or otherwise) arising out of or relating to the Excluded Assets,
(iv) liabilities set forth on Schedule 2.3(c) and (v) to the extent not excluded
above, all obligations of Seller arising on or after the Petition Date under the
DIP Facility.

                                  ARTICLE III

                                 Purchase Price
                                 --------------

     3.1 Payment of Purchase Price.

          (a) In consideration of the sale and transfer of the Assets to Buyer,
subject to the terms and conditions of this Agreement and on the basis of the
representations and warranties of Parent and Seller contained herein on the
Closing Date, Buyer shall pay to Seller a purchase price (the "Purchase Price")
equal to the Definitive Net Assets Value plus $ 14,000,000, and Buyer shall
assume the Assumed Liabilities.

          (b) The Purchase Price shall be paid on the Closing Date in cash (in
United States Dollars) by wire transfer in immediately available funds to such
bank account in the United States as Seller shall have designated in writing to
Buyer two (2) days prior to Closing.

                                       7
<PAGE>

          (c) For purposes of this Agreement, the term "Definitive Net Assets
Value" shall mean the difference between the total book value of the Assets and
the total Assumed Liabilities, each determined as of the Closing Date in
accordance with past practices, consistently applied, provided that all
intercompany accounts payable, intercompany debts and other obligations and
intercompany accounts receivable shall be excluded therefrom. The Definitive Net
Assets Value shall be reflected on the balance sheet dated as of the date as of
which the Definitive Net Assets Value is determined (the "Closing Balance
Sheet").

          (d) Seller may, by written notice given to Buyer not less than two (2)
days prior to Closing, direct that any payments due to Seller hereunder at the
Closing be reduced and paid (i) to any investment banker to whom Seller owes a
fee in connection with the transaction contemplated hereby as such fees and
corresponding wire instructions shall be set forth on Schedule 3.1(d), and (ii)
to Seller's employees in payment of bonuses due from Seller to any employees of
Seller as such bonuses shall be set forth on Schedule 3.1(d).

                                   ARTICLE IV
                                   ----------

                                     Closing

     4.1 The Closing. The purchase and sale and other related transactions
provided for in this Agreement (the "Closing") shall take place at the offices
of Morrison Cohen Singer & Weinstein, LLP at 10:00 a.m. eastern standard time,
unless the parties make other closing arrangements, on the date hereof that is
two (2) business days after satisfaction of the conditions set forth in Article
VII (the"Closing Date"). The parties shall use their best efforts to cause the
Closing to occur on or before July 7, 2000. Failure of the Seller to fulfill all
its conditions to Closing on or before July 7, 2000 shall relieve the Buyer and
Westcon of any further obligations under this Agreement.

     4.2 Further Assurances. Each of the parties agrees that, at any time and
from time to time after the Closing Date, it will, upon the reasonable request
of the other party, execute, acknowledge and deliver, or cause to be executed,
acknowledged or delivered, all such further assignments, transfers, conveyances,
powers of attorney, instruments, documents and assurances as may be reasonably
required for the better carrying out of the transactions contemplated by this
Agreement.

                                   ARTICLE V
                                   ---------

               Representations and Warranties of Parent and Seller

     Parent and Seller jointly and severally represent and warrant to Buyer and
Westcon that the statements contained in this Article V are correct and complete
as of the date of this Agreement, and will be correct and complete in all
material respects as of the Closing Date as though made then and as though the
Closing Date were substituted for the date of this Agreement throughout this
Article V (except for representations and warranties made as of a specific
date), and except as such may be updated as provided in this Agreement.

     5.1 Organization; Good Standing.

          (a) (i) Seller is a corporation duly organized, validly existing

                                       8
<PAGE>

     and in good standing under the laws of the State of Nebraska and Parent is
     a corporation duly organized, validly existing and in good standing under
     the laws of the State of Delaware and each of Parent and Seller has the
     full corporate power and authority to own or lease properties and to
     conduct business as currently conducted, and Parent and Seller is qualified
     and in good standing as foreign corporations authorized to do business in
     each jurisdiction in which the nature of business or the ownership or
     leasing of properties requires such qualification, except in such
     jurisdictions where failure to be so qualified or in good standing
     collectively could not be reasonably expected to have a Material Adverse
     Effect.

               (ii) Except as set forth on Schedule 5.1(a)(ii), Seller does not
     own any shares of capital stock, partnership interest or any other direct
     or indirect equity interest in any corporation, partnership or other
     entity.

     5.2 Corporate Authorization and Necessary Permits, etc.

          (a) The execution, delivery and performance by Parent and Seller of
this Agreement, the other Transaction Documents and the other documents and
instruments referred to in this Agreement and the other Transaction Documents to
which Parent and Seller is a party have been authorized and approved by all
requisite corporate and other action on the part of Parent and Seller (including
approval of Parent's board of directors and shareholders, if necessary and
required, and Seller's board of directors and Parent, as shareholder of Seller),
and except as set forth on Schedule 5.2(a), no other corporate or other approval
or authorization is required on the part of Parent and Seller or any other
Person by law or otherwise in order to make this Agreement, the other
Transaction Documents and the other documents and instruments referred to in
this Agreement and the other Transaction Documents to which Parent and Seller
are a party the valid, binding and enforceable obligations of Parent and Seller
subject to bankruptcy, fraudulent conveyance, insolvency, moratorium or similar
laws affecting the rights of creditors generally or general equitable
principles. Each of this Agreement, and such other documents and instruments
delivered at the Closing to which Parent and Seller are a party is or shall be a
valid and legally binding obligation of Seller, enforceable against Parent and
Seller in accordance with its respective terms, subject to bankruptcy,
fraudulent conveyance, insolvency, moratorium or similar laws affecting the
rights of creditors generally or general equitable principles. Parent and Seller
have full power and authority to comply with their respective covenants under
this Agreement, the other Transaction Documents, and such other documents and
instruments referred to in this Agreement and the other Transaction Documents to
which Parent and Seller are a party, including without limitation to authorize
the sale, transfer, assignment and delivery of the Assets as provided in this
Agreement, and such delivery will convey to Buyer good and marketable title to
the Assets, free and clear of any and all liens, pledges, encumbrances, charges,
agreements or claims of any kind whatsoever.

          (b) No action of any Affiliate of Parent is required in order for
Parent and Seller to consummate the transactions and take the actions
contemplated by this Agreement.

          (c) Seller has operated the Business with all necessary permits,
licenses, approvals and other authorizations from or with federal, state or
foreign regulatory authorities, except where the failure to do so would not have
had a Material Adverse Effect.

     5.3 All Business Assets, Lists of Properties, Contracts, etc. Except for
(i) the Assets, (ii) the services and facilities described in the Transition
Services Agreement, and (iii) the services described in the Custom Edge
Agreement, no other assets, properties or rights of any kind are required in
order for Buyer to conduct the Business as presently conducted. Schedules 5.3(a)
through 5.3(c) hereto contain complete and accurate lists of the following
assets, excluding, in each case Excluded Assets:

                                       9
<PAGE>

          (a) Schedule 5.3(a) Real Property and Leases. All real property owned
of record or beneficially by Seller and a brief description of all structures
and buildings located thereon; all material leases of real property or office
space to which Seller is a party as lessor or lessee; all premises occupied by
Seller under rental arrangements without leases; and all contracts to which
Seller is a party for the sale or purchase of real property;

          (b) Schedule 5.3(b) Personal Property. All machinery, equipment,
computer hardware, motor vehicles, office furniture, fixtures and similar
personal property and Furnishings owned or leased by Seller having a book value
in excess of $5,000;

          (c) Schedule 5.3(c) Contracts. The following Contracts to which Seller
is a party:

               (i) any arrangement (or group of related written arrangements)
          for the lease of personal property from or to third parties providing
          for lease payments in excess of $5,000 per annum;

               (ii) any arrangement (or group of related written arrangements)
          which either calls for performance over a period of more than one year
          (other than continuing maintenance arrangements) or involves more than
          the sum of $10,000;

               (iii) any partnership or joint venture agreement;

               (iv) any arrangement with any of Seller's directors, officers or
          employees in the nature of a collective bargaining agreement,
          employment agreement, or severance agreement;

               (v) any arrangement involving a Governmental Authority (other
          than sales contracts entered into in the Ordinary Course of Business);
          and

               (vi) all distribution agreements, vendor agreements, VAR
          agreements, and other agreements in each case providing for payments
          from or to Seller in excess of $100,000 per annum.

     5.4 Status of Documents. Except as set forth on a Schedule called for by
Section 5.3 hereof, with respect to each lease, agreement, contract,
undertaking, commitment and arrangement described in Section 5.3: (A) the
arrangement is legal, valid, binding, enforceable, and in full force and effect
subject to bankruptcy, fraudulent conveyance, insolvency, moratorium or similar
laws affecting the rights of creditors generally or general equitable
principles; and (B) neither Seller nor, to the Knowledge of Seller, any other
party is in breach or default and no event has occurred with respect to Seller
or, to the Knowledge of Seller, any other party which, with notice or lapse of
time, would constitute a breach or default or permit termination, modification,
or acceleration, under the arrangement.

     5.5 Title; Properties. Except as otherwise disclosed in Schedule 5.5
hereto, (i) Seller has good and marketable title to all of the Assets, free and
clear of all liens and encumbrances of any character whatsoever, except for the
lien of Taxes not yet due and payable; (ii) Seller has legal, valid, binding and
enforceable leases with respect to the leased premises described in Schedule
5.3(a) hereto with respect to which Seller is the lessee, has performed in all
respects all the material obligations required to be performed by it under said
leases, and

                                       10
<PAGE>

possesses and quietly enjoys said premises under said leases, and such premises
are not subject to any liens, encumbrances, easements, rights of way, building
or use restrictions, exceptions, reservations or limitations that interfere with
or impair the present and continued use thereof in the usual and normal conduct
of the Business; (iii) Seller has not received notice of violation of any
applicable material zoning regulation, ordinance or other law, order, regulation
or requirement relating to the operations of such owned or leased properties,
and Seller knows of no such violation; and (iv) Seller has not received notice
of and there is not any pending or, to Seller's Knowledge, threatened
condemnation proceedings relating to any of such owned or leased properties. The
plants, structures, tangible properties and equipment owned, operated or leased
by Seller are free from material defects and in good operating condition,
ordinary wear and tear excepted, and are in conformity in all material respects
with all applicable laws, ordinances, orders, regulations and other requirements
(including applicable zoning, environmental, occupational safety and health laws
and regulations) presently in effect.

     5.6 Intellectual Property. "Intellectual Property" shall mean all of
Seller's patents, patent applications, inventions, invention reports, trademarks
(registered and unregistered), service marks (registered and unregistered),
trade names (registered and unregistered), copyrights (registered and
unregistered) and "Trade Secrets" (which term shall mean all of Seller's
processes, designs, technical reports, technical documentation, technical
know-how, trade secrets, formulae, customer lists, marketing and customer
information, confidential and proprietary information, methods of doing
business, databases, data files and compilations of information). Based on such
definition:

          (a) Title. Schedule 5.6(a) contains a complete and correct list of all
Intellectual Property (other than Trade Secrets) that is owned by Seller (the
"Owned Intellectual Property"). Except as set forth on Schedule 5.6(a), Seller
owns all Owned Intellectual Property and all of the Trade Secrets, free from any
liens and free from any requirement of any past, present or future royalty
payments, license fees, charges or other payments, or conditions or
restrictions. The Owned Intellectual Property, the Trade Secrets and the
Licensed Intellectual Property (defined below in Section 5.6(c)) comprise all of
the Intellectual Property used by Seller in the conduct of the Business as now
being conducted. The Owned Intellectual Property, the Trade Secrets and the
Licensed Intellectual Property are collectively referred to as the "Intellectual
Property Assets."

          (b) No Infringement. Except as set forth in Schedule 5.6(b), (A) the
conduct of the Business does not infringe, misappropriate or otherwise conflict
with the intellectual property rights of any third party and (B) no part of the
Intellectual Property Assets, nor the use thereof for their intended purposes,
infringes or misappropriates any patent, trade secret, copyright, trademark,
service mark, or right of publicity or other intellectual property right of any
third party.

          (c) Licensing Arrangements. Schedule 5.6(a) sets forth (A) all
agreements, licenses or other arrangements pursuant to which Seller has Licensed
Intellectual Property to, or otherwise permits use by, any third party (other
than third party software licensed in the Ordinary Course of Business), and (B)
all agreements, licenses or other arrangements pursuant to which Seller has
intellectual property licensed to it or has otherwise been permitted to use
intellectual property (other than commercially available off-the-shelf software
products). Schedule 5.6(a) also contains a complete list of software libraries,
compilers and other third-party software used in the development of any software
for which Seller has obtained the right to use by way of license (other than
commercially available off-the-shelf software products). Except as set forth on
Schedule 5.6(c), all of the agreements or arrangements set forth in the portion
of Schedule 5.6(a) which relates to this Section 5.6(c): (1) are in full force
and effect in accordance with their terms and no default exists thereunder by
Seller or, to the Knowledge of Seller, by any other party thereto, and (2) are
free and clear of

                                       11
<PAGE>

all liens. Seller has delivered to Buyer true and complete copies of all
agreements, licenses and arrangements (including amendments) set forth in the
portion of Schedule 5.6(a) which relates to this Section 5.6(c). All
Intellectual Property rights listed in the portion of Schedule 5.6(a) which
relates to this Section 5.6(c) that Seller has obtained from third parties are
referred to herein as "Licensed Intellectual Property."

          (d) No Intellectual Property Litigation. Except as set forth in
Schedule 5.6(a), no claim or demand of any third party has been made nor is
there any proceeding that is pending or, to the Knowledge of Seller, threatened,
which (A) challenges the rights of Seller with respect to the sole ownership or
use of any Intellectual Property Assets, (B) asserts that Seller has infringed
or is infringing, misappropriated or is misappropriating, or otherwise in
conflict with, or is required to pay any royalty, license fee, charge or other
amount with regard to, any intellectual property of a third party, or (C) claims
that any default exists under any agreement or arrangement listed on Schedule
5.6(a). None of the Intellectual Property Assets is subject to any outstanding
order, ruling, decree, judgment or stipulation by or with any Governmental
Authority.

          (e) Registrations, etc. Schedule 5.6(a) sets forth, with respect to
the Intellectual Property and Trade Secrets owned by Seller, all registrations,
filings or issuances with the United States Patent and Trademark Office, United
States Copyright Office or other federal filing offices.

          (f) Web Site. Schedule 5.6(f) sets forth all relevant information
necessary for Buyer to own and use the domain name and Web site
"inacomcommunications.com" and any other domain names and Web sites used in
connection with the operation of the Business.

     5.7 Legal Compliance. In operating the Business, Seller has complied in all
material respects with all laws (including rules and regulations thereunder) of
all Governmental Authorities, and no charge, complaint, action, suit,
proceeding, hearing, investigation, claim, demand, or notice has been filed or
commenced against Seller alleging any failure to comply with any such law or
regulation, and to Seller's Knowledge none of the foregoing is threatened.

     5.8 Litigation. Except for the proposed cases under the Bankruptcy Code or
as set forth on Schedule 5.8, there is no litigation, action, suit, proceeding
or investigation pending or, to the Knowledge of Seller, threatened, to which
Seller is a party with respect to the Business or any of the transactions
contemplated hereby. Seller is not in default with respect to any order, writ,
injunction or decree of any Governmental Authority.

     5.9 No Conflict. Except as set forth in Schedule 5.9, the execution by
Parent and Seller of this Agreement and the other documents and instruments
referred to in this Agreement to which it is a party, compliance by Parent and
Seller with the provisions of this Agreement and the consummation of the
transactions contemplated hereby and thereby (i) will not, in any material
respect, violate any provision of applicable law, (ii) will not conflict with
any provision of the Articles of Incorporation or By-laws of Parent and Seller
or conflict with, result in a breach of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under,
or result in the termination of, accelerate the performance required by, or
create in any party the right to accelerate, terminate, modify, or cancel or
require any notice under any of the terms, conditions or provisions of, any
Contract described in Section 5.3(c) or 5.6(c) hereof (except for the failure to
obtain a third-party consent under such instrument before Closing), (iii) will
not result in the creation of any lien, charge or encumbrance upon any of the
Assets pursuant to any Contract, described in Section 5.3(c) or 5.6(c) hereof,
to which Parent or Seller are a party or by which Parent or Seller are bound or
to which the Assets are subject, (iv) except for clearance under the HSR Act,
and approval of the

                                       12
<PAGE>

Bankruptcy Court if the Petition Date occurs prior to the Closing, do not
require the consent or approval of, or registration, declaration or filing with,
any Governmental Authority and (v) do not violate any order, writ, injunction,
decree, arbitration award, statute, rule or regulation applicable to Parent and
Seller, to any of the Assets or to the Business.

     5.10 Financial Statements; No Material Adverse Change.

          (a) Parent and Seller have delivered to Buyer and Westcon copies of
Seller's unaudited balance sheet, and Seller's unaudited income statement, as of
the end of, and for, the fiscal years ended December 31, 1998 and 1999 and as of
the end of and for the 4-month period ended April 30, 2000 (the "Financial
Statements"). The Financial Statements are, and the Closing Balance Sheet will
be when issued, complete and correct in all material respects. The Closing
Balance Sheet will be prepared in accordance with past practices, consistently
applied, provided that all intercompany accounts payable, intercompany debts and
other intercompany obligations and intercompany accounts receivable shall be
excluded therefrom and the other Financial Statements have been prepared in
accordance with past practices, consistently applied. The Financial Statements,
present fairly, and the Closing Balance Sheet will when issued present fairly,
the financial condition and results of operations of Seller as at the dates of
such statements and for the periods then ended.

          (b) Except as disclosed on Schedule 5.10(b) or elsewhere in this
Agreement or in the Financial Statements delivered pursuant to Section 5.10(a),
there has not been any:

               (i) Material Adverse Change, and Seller has Knowledge of no fact,
          circumstance, event, occurrence, contingency or condition which could
          reasonably be expected to result in any Material Adverse Change;

               (ii) except in the Ordinary Course of Business, (A) entering into
          by Seller of any employment contract or collective bargaining
          agreement; (B) increase in the compensation or benefits payable or to
          become payable by Seller to any Company Personnel; or (C) any bonus,
          incentive compensation, service award or other like benefit, granted,
          made or accrued, contingent or otherwise, to the credit of any Company
          Personnel;

               (iii) repurchase or redemption of any shares of Seller's stock;

               (iv) mortgage, pledge or subjection to any lien or encumbrance of
          any character whatsoever of any of the Assets, except the lien of
          current real and personal property Taxes incurred but not yet due and
          payable;

               (v) sale, assignment or transfer of any assets used in the
          Business that are material, either singly or in the aggregate;

               (vi) settling, canceling, compromising, waiving or releasing any
          right, claim, action or proceeding of substantial value to Seller, not
          in the Ordinary Course of Business, involving (either singly or in the
          aggregate) more than $10,000;

               (vii) modification, cancellation or termination by Seller of any
          material contract, agreement or other instrument to which Seller is or
          was a party;

                                       13
<PAGE>

               (viii) Liability or obligation (whether accrued, absolute,
          contingent, asserted, unasserted or otherwise) incurred by Seller of a
          nature required to be reflected in a balance sheet of Seller prepared
          in accordance with past practices, consistently applied, or disclosed
          in the notes thereto; except Liabilities or obligations incurred in
          Seller's Ordinary Course of Business;

               (ix) except in the Ordinary Course of Business, capital
          expenditure or execution of any lease with respect to any aspect of
          the Business;

               (x) change in the method of accounting or accounting practice of
          Seller;

               (xi) cancellation by any supplier, customer or contractor which
          is material individually or in the aggregate to the Business;

               (xii) delay or postponement in the payment of accounts payable
          and other Liabilities by Seller except in the Ordinary Course of
          Business;

               (xiii) material damage, destruction or loss (whether or not
          covered by insurance) to Seller's property;

               (xiv) declaration or payment of any dividends or any distribution
          in cash or property on and with respect to Seller's capital stock or
          other corporate securities; or

               (xv) agreement by Seller to do any of the foregoing.

          (c) Except as included in the Closing Balance Sheet or in the notes
thereto, Seller does not have outstanding on the date hereof any obligation,
indebtedness or liability, and Seller has no Knowledge of any basis for the
assertion of any such obligation, indebtedness or liability, whether accrued,
absolute, contingent or otherwise, none of which in the aggregate, would have a
Material Adverse Effect.

     5.11 Taxes. There are no liens on any of the assets of the Seller that
arose in connection with any failure (or alleged failure) to pay any Tax and
Buyer will not have any liability or obligation of any kind or nature with
respect to any Taxes of Seller or Parent or in connection with Taxes arising as
a result of the consummation of the transaction contemplated hereby.

     5.12 No Brokers. Seller has made no contact and had no dealings with and
has not entered into, and will not enter into, any agreement, arrangement or
understanding with any investment banker, broker, leasing agent, finder or
similar Person or entity with respect to this Agreement and the transactions
contemplated hereby which (except as provided in Section 3.1(d)(i), will result
in the obligation of Buyer to pay any finder's fee, brokerage commission or
similar payment in connection with the transactions contemplated hereby.

     5.13 Environmental Compliance. Except as disclosed in Schedule 5.13, (i)
there is not and has not been any Environmental Condition at any premises or
property currently owned, leased, operated, controlled or used by Seller which
would have a Material Adverse Effect, and (ii) Seller has not received any
notice alleging that it is liable for any Environmental Condition at any
location which would have a Material Adverse Effect. For the purposes of this
paragraph, (A) "Environmental Condition" means any action, omission,

                                       14
<PAGE>

event, condition or circumstance, including, without limitation, the presence of
any Hazardous Substances, which does or reasonably could (1) require assessment,
investigation, abatement, correction, removal or remediation, (2) give rise to
any obligation or liability of any nature (whether civil or criminal, arising
under a theory of negligence or strict liability, or otherwise) under any
Environmental Law, (3) create or constitute a public or private nuisance or
trespass, or (4) constitute a violation of or non-compliance with any
Environmental Law, (B) "Environmental Law" means all national, provincial,
regional, federal, state, local or municipal statutes, laws (including, without
limitation, principles of common law and decisional law), regulations, rules,
orders, decrees, judgments, ordinances, permits, licenses, registrations,
approvals, or requirements or authorizations of any Governmental Authority
relating to the environment, natural resources, safety, or health of humans or
other organisms, including the manufacture, distribution in commerce, and use
of, or release to the natural environment of Hazardous Substances, and (C)
"Hazardous Substances" means any pollutant, contaminant, hazardous substance,
hazardous waste, toxic substance, petroleum or petroleum-derived substance,
waste, or additive, asbestos, PCBs, radioactive material, or other compound,
element, material or substance in any form whatsoever (including, without
limitation, products), in each case which is regulated, restricted or addressed
by or under any Environmental Law.

     5.14 Employee Benefit Information. Except as set forth on Schedule 5.14,
Seller has, in the conduct of the affairs of the Business, complied in all
material respects with all applicable laws, rules, and regulations relating to
the employment of labor, including those relating to wages, hours, collective
bargaining, immigration and the payment of social security and similar Taxes.
There are no pending claims by any Employee against Seller under any of the
applicable laws, rules, and regulations relating to the employment of labor,
including those relating to wages, hours, collective bargaining, immigration,
and the payment of social security and similar Taxes, and Seller has no
Knowledge of any plan of any Employee, organization or Governmental Authority to
do so.

          (a) Complete List. - Schedule 5.14 lists each Employee Benefit Plan or
welfare plan that provides benefits for employees or former employees of the
Seller, or for which the Seller could have any direct or indirect, actual or
contingent liability (collectively, the "Plans")

          (b) No Liability - The Seller has no direct or indirect, actual or
contingent liability with respect to any Plan other than to make payments to the
Plans in accordance with the terms of such Plans.

          (c) Required Contributions Made - The Seller has made or shall make
all contributions required to be made by it under each Plan for all periods
through and including the Closing Date, or adequate accruals therefor have been
or shall be provided therefor in the Closing Balance Sheet.

          (d) Claims - There are no pending or threatened claims, suits, or
other proceedings involving any Employees, plan fiduciaries or the U.S.
Department of Labor with respect to any Plan other than the ordinary usual
claims by participants or beneficiaries which have been made for benefits called
for under the terms of such Plans and which will be paid under such Plans in the
ordinary course.

     5.15 Labor Disagreements. In connection with the operation of the Business,
(i) there is no material labor strike, controversy, unsettled grievance,
dispute, request for representation, slowdown or stoppage actually pending
against or affecting Seller, and, to the Knowledge of Seller, none is or has
been threatened; and (ii) Seller has no collective bargaining agreements with
respect to any Company Personnel and none of the Company Personnel are
represented by any bargaining agent.

                                       15
<PAGE>

     5.16 Employees. A list which sets forth the name, location, title, date of
employment, and salaries of each regular employee, including last raise date and
amount of such raise, of Seller (collectively, the "Employees") as of the date
set forth therein is attached as Schedule 5.16. Seller shall update such list as
of the Closing Date, and deliver same to Buyer on or prior to the Closing.

     5.17 No Other Agreements to Sell Assets or Business. Seller has no
obligation, absolute or contingent, to any other Person to sell the Assets
(other than sales in the Ordinary Course of Business), to effect any merger,
consolidation or other reorganization of Seller, or to enter into any agreement
with respect thereto.

     5.18 Product Warranties. Seller has not provided any warranty with respect
to any equipment, goods, materials or systems sold or leased by Seller, other
than passing along to the purchaser or lessee the warranty on such equipment,
goods, materials or systems provided by the applicable manufacturer.

     5.19 Improper Payments. No officer, agent or employee of Seller has made or
agreed to make any contributions, payment or gifts to any governmental official,
employee or agent in violation of the Foreign Corrupt Practices Act.

     5.20 Adverse Contracts. Except as set forth in Schedule 5.20, Seller is not
a party or subject to any agreement, transaction, obligation, commitment,
understanding, arrangement or liability which (i) is incapable of complete
performance in accordance with the terms thereof within six months after the
date on which it was entered into or undertaken save for maintenance contracts
entered into in the Ordinary Course of Business; (ii) to the Knowledge of the
Seller is likely to result in a loss to Seller on completion of performance,
which losses together with all other such losses, exceed in the aggregate Twenty
Five Thousand Dollars ($25,000); (iii) to the Knowledge of the Seller cannot
readily be fulfilled or performed by Seller on time and without undue or unusual
expenditure of money and effort; (iv) involves or is likely to involve
obligations, restrictions, expenditures or receipts of an unusual, onerous or
exceptional nature and not in the Ordinary Course of Business; (v) is a lease or
contract for purchase, or an agreement for purchase by way of credit sale or
periodic payment; (vi) involves or is likely to involve the supply of goods by
or to Seller (other than in the Ordinary Course of Business) the aggregate sales
value of which will represent in excess of ten percent (10%) of the net sales of
Seller based on sales for its prior fiscal year; (vii) to the Knowledge of the
Seller, in any way restricts Seller's freedom to carry on, the whole or any part
of the Business as heretofore conducted by the Seller; (viii) involves
liabilities which may fluctuate in accordance with an index or rate of currency
exchange; or (ix) is in any way otherwise than in the Ordinary Course of
Business.

     5.21 Inventory. The inventory of the Seller (the "Inventory") classified as
such on the Closing Balance Sheet consists of (i) raw materials and supplies,
manufactured and purchased parts, goods in process and finished goods, all of
which is merchantable and fit for the purpose for which it was procured or
manufactured, and none of which is obsolete, discontinued, damaged, or defective
(except to the extent of reserves disclosed in the Closing Balance Sheet), and
(ii) except as set forth in Schedule 5.21, items of a quantity and quality
usable or salable in the Ordinary Course of Business which Seller has continued
to replenish in a normal and customary manner consistent with Seller's past
practices. Seller has not received written or oral notice that it will
experience in the foreseeable future any difficulty, other than in the Ordinary
Course of Business, in obtaining in the desired quantity and quality and at a
reasonable price and upon reasonable terms and conditions, the raw materials,
supplies or component products required for the manufacture, assembly or
production of its products. The values at which inventories are carried is
consistent with Seller's past practices, consistently applied.

                                       16
<PAGE>

     5.22 Customers, Suppliers and Distributors. Schedule 5.22 sets forth (i)
the ten customers with the highest dollar volume of purchases from Seller during
the one year period ending December 31, 1999, indicating opposite each customers
name, the approximate total sales for that customer; and (ii) the five largest
suppliers and the ten largest distributors of Seller during the one year period
ending December 31, 1999. Except as set forth in this Schedule 5.22, there has
not been any known adverse change in the business relationship of Seller and
such customer, supplier or distributor, and Seller is not aware of any
threatened loss of any such customer, supplier or distributor since May 15,
1999.

     5.23 Accounts Receivable. All accounts and notes receivable of the Seller
reflected on the Financial Statements and as will be reflected on the Closing
Balance Sheet represent and will represent sales actually made in the Ordinary
Course of Business and do not result from any fraudulent actions by Seller or
Parent and, except to the extent of $500 per invoice (the "Threshold") (which
Threshold shall not apply to claims or defenses arising as a result of
fraudulent actions by Seller or Parent) are and will be valid obligations of the
respective debtors without any claims or defenses, provided however that if, as
to any invoice, the respective debtor asserts claims or defenses arising as a
result of actions or inactions of Seller prior to the Closing Date in excess of
the Threshold, which claims or defenses are granted or accepted by the Buyer, in
its reasonable judgment consistent with Westcon's collection practices, then for
purposes of this Agreement the exception created by the Threshold limitation
shall be deemed deleted and of no force or effect as to any such invoice.

                                   ARTICLE VI
                                   ----------

               Representations and Warranties of Buyer and Westcon

          Representations and Warranties of Buyer. Buyer and Westcon jointly and
severally represent and warrant to Seller and Parent that the statements
contained in this Article VI are correct and complete as of the date of this
Agreement, and will be correct and complete as of the Closing Date as though
made then and as though the Closing Date were substituted for the date of this
Agreement throughout this Article VI (except for representations and warranties
made as of a specific date), and except as such may be updated as provided in
this Agreement.

     6.1 Organization; Good Standing. Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the State of New York
and has full corporate power and authority to own or lease its properties and to
conduct its business as currently conducted, and is qualified and in good
standing as a foreign corporation authorized to do business in each jurisdiction
in which the nature of its business or the ownership or leasing of its
properties requires such qualification, except in such jurisdictions where
failure to be so qualified or in good standing collectively could not be
reasonably expected to have a material adverse effect on its business, results
of operations, financial condition or prospects.

     6.2 Corporate Authorization, etc. The execution, delivery and performance
by Westcon and Buyer of this Agreement and the other Transaction Documents
referred to in this Agreement to which Westcon and Buyer are a party have been
authorized and approved by all requisite corporate and other action on the part
of Westcon and Buyer, and no other corporate or other approval or authorization
is required on the part of Westcon and Buyer or any other Person by law or
otherwise in order to make this Agreement and the other Transaction Documents
and instruments of transfer referred to in this Agreement to which Westcon and
Buyer are a party the valid, binding and enforceable obligations of Westcon and
Buyer subject to bankruptcy, fraudulent conveyance, insolvency, moratorium or
similar laws affecting the rights of creditors generally or

                                       17
<PAGE>

general equitable principles. Each of this Agreement and the other Transaction
Documents and instruments delivered at the Closing to which Westcon and Buyer
are a party is or shall be a valid and legally binding obligation of Westcon and
Buyer, enforceable against Westcon and Buyer in accordance with their respective
terms, subject to bankruptcy, fraudulent conveyance, insolvency, moratorium or
similar laws affecting the rights of creditors generally or general equitable
principles. Westcon and Buyer have full power and authority to comply with its
covenants under this Agreement and the other Transaction Documents and
instruments to which Westcon and Buyer are a party.

     6.3 Litigation. There is no litigation, action, suit, proceeding or
investigation pending or, to the knowledge of Buyer, threatened, to which Buyer
is a party with respect to any of the transactions contemplated hereby, before
or by any Governmental Authority. Buyer is not in default with respect to any
order, writ, injunction or decree of any Governmental Authority.

     6.4 No Conflict. The execution by Buyer and Westcon of this Agreement and
the other documents and instruments referred to in this Agreement to which it is
a party, compliance by Buyer and Westcon with the provisions of this Agreement
and the consummation by Buyer of the transactions contemplated hereby and
thereby (i) will not, in any material respect, violate any provision of
applicable law, (ii) will not conflict with any provision of the Certificate of
Incorporation or By-laws of Buyer or Westcon or conflict with, result in a
breach of, or constitute a default (or an event which, with notice or lapse of
time or both, would constitute a default) under, or result in the termination
of, accelerate the performance required by, or create in any party the right to
accelerate, terminate, modify, or cancel or require any notice under any of the
terms, conditions or provisions of, any material contract, agreement, permit or
other instrument to which Buyer or Westcon is a party or by which Buyer or
Westcon is bound or to which any of its assets are subject, (iii) except for
clearance under the HSR Act, do not require the consent or approval of, or
registration, declaration or filing with, any Governmental Authority, and (iv)
do not violate any order, writ, injunction, decree, arbitration award, statute,
rule or regulation applicable to Buyer or Westcon, or to any of the assets of
Buyer or Westcon.

     6.5 No Brokers. Buyer has made no contact and had no dealings with and has
not entered into, and will not enter into, any agreement, arrangement or
understanding with any investment banker, broker, leasing agent, finder or
similar Person or entity with respect to this Agreement and the transactions
contemplated hereby which will result in the obligation of Seller or Parent to
pay any finder's fee, brokerage commission or similar payment in connection with
the transactions contemplated hereby.

     6.6 Investigation by Buyer. Westcon and the Buyer (a) acknowledge that
neither the Seller nor the Parent nor any of their respective directors,
officers, employees, Affiliates, controlling persons, agents or representatives
makes or has made any representation or warranty, either express or implied, to
the Buyer or its directors, officers, employees, Affiliates, controlling
persons, agents or representatives, except as and only to the extent expressly
set forth herein and subject to the limitations and restrictions contained in
this Agreement; and (b) agree that, other than as a result of fraudulent action
of the Seller, none of the Parent or the Seller, nor any of their directors,
officers, employees, Affiliates, controlling persons, agents or representatives
shall have any liability or responsibility whatsoever on any basis, other than
for such liability and responsibility as is provided for in this Agreement, to
Westcon or the Buyer or their respective directors, officers, employees,
Affiliates, controlling persons, agents or representatives, subject to the
limitations and restrictions contained in this Agreement.

                                       18
<PAGE>

                                  ARTICLE VII
                                  -----------

             Conditions Precedent to Obligations of Buyer and Seller
             -------------------------------------------------------

     7.1 Conditions Precedent to Obligations of Buyer. The obligations of Buyer
under this Agreement are subject to the conditions (unless waived by Buyer at or
before the Closing, in Buyer's sole discretion) that at the Closing:

          (a) Compliance with Covenants. All the terms, covenants, agreements
and conditions of this Agreement to be complied with and performed by Parent and
Seller, on or prior to the Closing Date shall have been duly complied with and
performed in all material respects.

          (b) Representations and Warranties. The representations and warranties
made by Parent and Seller herein shall be true and correct in all material
respects as of the Closing with the same force and effect as though made as of
the Closing (except for representations and warranties which expressly speak as
of a particular date, which representations and warranties shall be true and
correct in all material respects as of such date), it being understood that any
materiality qualifications contained in such representations and warranties
shall be disregarded for this purpose.

          (c) Delivery of Closing Documents. Seller shall have delivered to
Buyer on or prior to the Closing Date all of the documents required to be
delivered pursuant to Section 8.1.

          (d) The conditions set forth in section 7.2 hereof shall have been
satisfied.

     7.2 Bankruptcy Approvals. The obligations of Buyer under this Agreement are
subject to the further condition (unless waived by Buyer at or before the
Closing, in Buyers' sole discretion) that:

          (a) Cost Reimbursement Fee Approval. On or before July 6, 2000 but
prior to the hearing referred to in Section 7.2(b), the Bankruptcy Court shall
have entered an order or orders approving the Cost Reimbursement Fee (the "Cost
Reimbursement Fee Order").

          (b) Approval of Agreement. On or before July 6, 2000, the Bankruptcy
Court shall have entered an order or orders: (i) approving the Agreement and
authorizing Seller and Parent to take the actions necessary at the Closing,
which Closing shall occur by July 7, 2000; (ii) authorizing the Assumption and
Assignment of any leases or executory contracts to be assigned to Buyer under
the Agreement, effective as of the Closing; and (iii) granting the Buyer the
protections afforded under section 363(m) of the Bankruptcy Code (the "Sale
Order").

          (c) No Stay. The Cost Reimbursement Fee Order and the Sale Order shall
not have been stayed pursuant to an order or orders of a court of competent
jurisdiction prior to the Closing.

     7.3 Conditions Precedent to Obligations of Seller. The obligations of
Seller under this Agreement are subject to the conditions (unless waived by
Seller at or before the Closing, in Seller's sole discretion) that at the
Closing:

                                       19
<PAGE>

          (a) Compliance with Covenants. All the terms, covenants, agreements
and conditions of this Agreement to be complied with and performed by Buyer on
or prior to the Closing Date shall have been duly complied with and performed in
all material respects.

          (b) Representations and Warranties. The representations and warranties
made by Buyer and Westcon herein shall be true and correct in all material
respects as of the Closing with the same force and effect as though such
representations and warranties had been made as of the Closing (except for
representations and warranties which expressly speak as of a particular date,
which representations and warranties shall be true and correct in all material
respects as of such date), it being understood that any materiality
qualifications contained in such representations and warranties shall be
disregarded for this purpose.

          (c) Delivery of Closing Documents. Buyer and Westcon shall have
delivered to Seller on or prior to the Closing Date all the documents required
to be delivered pursuant to Section 8.2.

          (d) Deutsche Bank Approval. Seller's lenders under their revolving
credit line with Deutsche Bank, AG, New York Branch, as collateral agent, and
the bank group shall have consented to the consummation of transactions
contemplated hereby.

     7.4 Conditions Precedent to Obligations of Both Buyer and Seller.

          The obligations of Buyer and Seller under this Agreement are subject
to the condition (unless waived by both Buyer and Seller at or before the
Closing, in each party's sole discretion) that at the time of the Closing:

          (a) Absence of Litigation. No action or proceeding before a
Governmental Authority shall have been instituted or threatened by a
Governmental Authority, or instituted by any other party if in the opinion of
counsel for Buyer or Seller there shall be a substantial likelihood that such
other party will prevail on the merits, in either case to restrain or prohibit
the consummation of the transactions contemplated hereby.

          (b) HSR Act. All applicable waiting periods (and any exceptions
thereof) under the HSR Act shall have expired or otherwise been terminated as
provided in Section 9.10.

          (c) Third Party Consents. To the extent that any third-party consent,
approval or other action would be required under the terms of any Permit or
Contract in connection with the assignment of such Permit or Contract to Buyer,
it is expressly understood and agreed that, Seller shall take any and all action
necessary to obtain any and all such third-party consents prior to the Closing.
The first $5,000 of the cost of obtaining such consent shall be borne by Seller
and all costs in excess thereof shall be divided equally between Buyer and
Seller, unless Buyer waives the requirement of obtaining such third-party
consent. If such third-party consents are not obtained and Buyer waives the
obtaining of such third-party consents as a condition precedent hereunder, then
Seller shall cooperate with Buyer in any arrangement (such as subcontracting,
sublicensing or subleasing) requested by Buyer intended to provide for Buyer all
of the benefits of Seller or its Affiliates under any such documents and the
Buyer shall cooperate in such efforts as required under Section 9.5 hereof.

          (d) Court Approval. If, prior to the Closing Date, Parent and/or
Seller shall have filed a petition for relief under the federal bankruptcy laws,
or if a petition shall have been filed against Parent and/or

                                       20
<PAGE>

Seller, then the bankruptcy court in which such petition shall have been filed
shall enter an order approving this agreement and the transactions contemplated
hereunder in form and manner acceptable to Buyer.

                                  ARTICLE VIII
                                  ------------

                    Documents to Be Delivered at the Closing
                    ----------------------------------------

     8.1 Items to Be Delivered by Seller at the Closing. At the Closing, Seller
shall deliver to Buyer, in form and substance reasonably satisfactory to Buyer
and its counsel the following duly executed instruments and items:

          (a) Opinions of Counsel. An opinion of McGrath, North, Mullin & Kratz,
P.C. counsel to Seller, reasonably satisfactory to the Buyer with respect to
matters set forth in Sections 5.1, 5.2(a), 5.2(b) and 5.9 and from Tom Molchan,
Esq., Seller's in-house counsel, with respect to matters set forth in Section
5.8.

          (b) Officer's Certificate. A certificate signed by Parent and Seller
to the effect set forth in Section 7.1(b) and stating that the conditions set
forth in Section 7.1 have been satisfied and that Seller, as applicable, has
complied with each of the covenants and agreements of Seller, as applicable,
contained in this Agreement.

          (c) Bill of Sale and Assignment and Assumption Agreement. The Bill of
Sale and the Assignment and Assumption Agreement.

          (d) Secretary's Certificate. A certificate of the Secretary of Seller
certifying as to the taking of all required corporate and shareholder action and
a certificate of good standing in the jurisdiction in which Seller is
incorporated.

          (e) Assignment of Lucent Contract. An assignment of the Agreement
between Seller and Lucent Technologies, Inc. ("Lucent") together with the
consent of Lucent thereto.

          (f) Assignment of Lucent-VAR Contracts. An assignment of the Lucent -
VAR contracts set forth on Schedule 8.1(f), together with the consent of Lucent
Technologies, Inc. thereto.

          (g) Custom Edge, Inc. Agreement. An agreement (the "Custom Edge
Agreement") in form and substance reasonably acceptable to Buyer, containing the
terms and conditions set forth on the term sheet attached hereto as Exhibit
8.1(g), which agreement shall be executed by Custom Edge, Inc. and Buyer.

          (h) Employment Contracts. Executed employment contracts pursuant to
Section 9.6.

          (i) Transition Services Agreement. An agreement in the form attached
hereto as Exhibit 8.1(i), together with use and occupancy for the corporate
office facility located in Omaha, Nebraska and for the use and occupancy of the
warehouse facility located in Sioux City, Iowa and consents of the respective
landlords, all as referred to therein (the "Transition Services Agreement").

                                       21
<PAGE>

     8.2 Items to Be Delivered by Buyer at the Closing. At the Closing, Buyer
shall deliver to Seller in form and substance reasonably satisfactory to Seller
the following duly executed instruments and items:

          (a) Opinion of Counsel. An Opinion of Morrison Cohen Singer &
Weinstein, LLP, counsel to Buyer, reasonably satisfactory to the Buyer with
respect to matters set forth in Section 6.1, 6.2 and 6.4.

          (b) Officer's Certificate. A certificate signed by each of Westcon and
Buyer to the effect set forth in Section 7.3(b) and stating that the conditions
set forth in Section 7.3 have been satisfied and that Buyer or Westcon, as
applicable, has complied with each of the covenants and agreements of Buyer or
Westcon, as applicable, contained in this Agreement.

          (c) Secretary's Certificate. A certificate of the Secretary of Buyer
and certificate of good standing in the jurisdiction in which Buyer is
incorporated.

          (d) Purchase Price. The Purchase Price payable on the Closing Date, in
accordance with Section 3.1.

          (e) Resale Certificate. A resale exemption certificate (related to
state sales taxes) in form satisfactory to Seller.

                                   ARTICLE IX
                                   ----------

              Further Covenants and Agreements of Seller and Buyer
              ----------------------------------------------------

     9.1 Conduct of the Business; Access. Seller agrees with Buyer as follows:

          (a) Conduct of Business Pending Closing. From the date of this
Agreement to the Closing Date, Seller (i) will maintain the Assets and not
remove any such Asset from its present location (except for transfers in the
Ordinary Course of Business and except for replacement of Assets with reasonably
similar assets); (ii) will perform in all material respects its obligations
under the contracts and agreements to which Seller is a party which relate to
the Business; (iii) will maintain in full force and effect through the Closing
Date all of its presently existing insurance coverage, or insurance comparable
to such existing coverage; and (iv) except as contemplated in this Agreement,
will conduct the Business only in the Ordinary Course of Business. Without
limiting the generality of the foregoing, Seller shall not engage in any
practice, take any action, embark on any course of inaction or enter into any
transaction of the sort described in Section 5.10(b).

          (b) Full Access. From the date of the announcement of this Agreement
to the Closing Date, Seller shall permit representatives of Buyer to have access
at all reasonable times, and in a manner so as not to interfere with the normal
operation of the Business by Seller, to the headquarters office of Seller and to
all books, records, contracts and documents of or pertaining to the Business,
and, subject to scheduling with Seller so that a representative of Seller may be
present, to contact or speak or correspond with any customer, employee or other
Person associated in business with Seller, who or which is (i) set forth on
Schedule 9.1 or (ii) reasonably requested by Buyer.

                                       22
<PAGE>

     9.2 Confidentiality/Announcements.

          (a) Seller and Buyer each agree that, except as otherwise required by
law neither Seller nor Buyer nor any of their Affiliates shall make any
announcement of the transactions contemplated hereby, other than jointly or as
otherwise agreed by them in writing, it being the intention of the parties that
an announcement shall be made contemporaneously with the execution hereof. On
and prior to the Closing Date, each party will keep confidential any information
not otherwise publicly available which is derived from access, investigation or
information furnished by the other party in connection with this Agreement,
including but not limited to the negotiations conducted in connection herewith
and information learned during due diligence reviews, and if the transactions
contemplated hereby are not fully consummated by July 7, 2000, or this Agreement
is terminated prior to such time, each party shall promptly return to the other
party all information provided by the other party, and copies and extracts
therefrom, and will not thereafter use such information for any purpose. Buyer
and Seller shall keep confidential all drafts and executed copies of this
Agreement and the contents hereof, except to the extent necessary to comply with
any applicable law or regulation or any request or order of any Governmental
Authority or court of competent jurisdiction and except as otherwise agreed
pursuant to the first sentence of this paragraph. Notwithstanding the foregoing
provisions of this Section 9.2(a), Buyer and Seller may disclose any such
information to their respective attorneys, accountants and investment advisers.

          (b) In the event that either party (the "Disclosing Party") is
requested or required (by oral question or request for information or documents
in any legal proceeding interrogatory. subpoena, civil investigative demand, or
similar process, or otherwise) to disclose any Confidential Information, the
Disclosing Party shall notify the other party promptly of the request or
requirement so that the other party may seek an appropriate protective order or
waive compliance with the provisions of this Section 9.2. If, in the absence of
a protective order or the receipt of a waiver hereunder, the Disclosing Party
is, on the advice of counsel, compelled to disclose any Confidential Information
to any tribunal, the Disclosing Party may disclose the Confidential Information
to the tribunal; provided, however, that the Disclosing Party shall use its
reasonable efforts to obtain, at the reasonable request of the other party, an
order or other assurance that confidential treatment will be accorded to such
portion of the Confidential Information required to be disclosed as such other
party shall designate.

          (c) The foregoing provisions of this Section 9.2 shall not apply to
any Confidential Information which a party wishing to make disclosure can
demonstrate: (i) was, at the time of disclosure to such party, in the public
domain; (ii) after disclosure to such party, is published or otherwise becomes
part of the public domain through no fault of such party; (iii) was received
after disclosure to such party from a third party who had a lawful right to
disclose such information to such party; or (iv) was independently developed by
such party without reference to the Confidential Information of the other party.

     9.3 Survival of Representations and Warranties; Indemnities.

          (a) The several covenants, representations and warranties of the
parties herein contained shall survive the Closing Date; provided that any
claims for indemnification with respect to any representation or warranty in
accordance with Section 9.3(b)(i) and 9.3(c)(i) below shall be null and void
unless made on or before the second anniversary of the Closing Date provided,
however, that such 2 year period shall be extended to the expiration date of the
applicable statute of limitations with respect to claims for indemnification in
connection with the representations and warranties contained in Sections 5.1,
5.2, 5.5, 5.11, 5.13, 5.14, 6.1 and 6.2.

                                       23
<PAGE>

          (b) Each of Seller and Parent, jointly and severally, hereby agrees to
indemnify and hold Buyer and Westcon (and their Affiliates and each of their
shareholders, directors, officers, employees, consultants, agents, successors
and assigns) harmless from and against any and all claims, liabilities, losses,
damages or injuries, together with costs and expenses, including reasonable
legal fees (collectively, "Buyer's Losses") arising out of or resulting from (i)
any inaccuracy in any representation or warranty made by Seller or Parent in
this Agreement, (ii) any breach by Seller or Parent, unless waived by Buyer, of
any covenant or agreement of Seller or Parent contained in this Agreement, (iii)
the Business or operation of the Business prior to the Closing or any act, or
failure to act, relating to the Business prior to the Closing, (iv) any of the
Excluded Liabilities or Excluded Assets, and (v) any Taxes of Seller (or Taxes
of any other Person for which Seller may have liability) with respect to (A) any
Tax described in Section 9.9(c) hereof, or (B) any Tax period ending on or
before the Closing Date (or for any Tax period ending after the Closing Date to
the extent allocable (determined in a manner consistent with Section 9.9 hereof)
to the portion of such period beginning before and ending on the Closing Date).

          (c) Each of Buyer and Westcon, jointly and severally, hereby agrees to
indemnify and hold Seller and Parent (and their Affiliates and each of their
shareholders, directors, officers, employees, consultants, agents, successors
and assigns) harmless from and against any and all claims, liabilities, losses,
damages or injuries, together with costs and expenses, including reasonable
legal fees, (collectively, "Seller's Losses") arising out of or resulting from
(i) any inaccuracy in any representation or warranty made by Buyer or Westcon in
this Agreement, (ii) any breach by Buyer or Westcon, unless waived by Seller, of
any covenant or agreement of Buyer or Westcon contained in this Agreement, (iii)
the Business or operation of the Business after the Closing or any act, or
failure to act, relating to the Business after the Closing, (or) (iv) any of the
Assumed Liabilities.

          (d) If any third party shall notify any party hereto (the "Indemnified
Party", which term shall be deemed to include such party's Affiliates and each
of their shareholders, directors, officers, employees, consultants, agents,
successors and assigns, to the extent applicable) with respect to any matter
which may give rise to a claim for indemnification against any other party
hereto (the "Indemnifying Party") under this Agreement, then the Indemnified
Party shall notify each Indemnifying Party thereof promptly, provided, however,
that no delay on the part of the Indemnified Party in notifying any Indemnifying
Party shall relieve the Indemnifying Party from any liability or obligation
hereunder unless (and then solely to the extent) the Indemnifying Party thereby
is materially prejudiced as a result of such delay. In the event any
Indemnifying Party notifies the Indemnified Party within thirty (30) days after
the Indemnified Party has given notice of the matter that the Indemnifying Party
is assuming the defense thereof, (A) the Indemnifying Party will defend the
Indemnified Party against the matter with counsel of its choice reasonably
satisfactory to the Indemnified Party, (B) the Indemnified Party may retain
separate co-counsel at its sole cost and expense (except that the Indemnifying
Party will be responsible for the fees and expenses of the separate co-counsel
to the extent the Indemnified Party reasonably concludes that the counsel the
Indemnifying Party has selected has a conflict of interest), (C) the Indemnified
Party will not consent to the entry of any judgment or enter into any settlement
with respect to the matter without of the written consent of the Indemnifying
Party (not to be unreasonably withheld or delayed), and (D) the Indemnifying
Party will not consent to the entry of any judgment with respect to the matter,
or enter into any settlement which does not include a provision whereby the
plaintiff or claimant in the matter releases the Indemnified Party from all
Liability with respect thereto, without the written consent of the Indemnified
Party (not to be unreasonably withheld or delayed). In the event that the
Indemnifying Party does not notify the Indemnified Party within thirty (30) days
after the Indemnified Party has given notice of the matter that the Indemnifying
Party is assuming the defense thereof, however, the Indemnified Party may defend
against, or enter into any settlement with respect to, the matter in any manner
it reasonably may deem

                                       24
<PAGE>

appropriate. At any time after commencement of any such action, any Indemnifying
Party may request an Indemnified Party to accept a bona fide offer from the
other parties to the action for a monetary settlement payable solely by such
Indemnifying Party (which does not burden or restrict the Indemnified Party nor
otherwise prejudice it) whereupon such action shall be taken unless the
Indemnified Party determines that the dispute should be continued, in which case
the Indemnifying Party shall be liable for indemnity hereunder only to the
extent of the lesser of (i) the amount of the settlement offer or (ii) the
amount for which the Indemnified Party may be liable with respect to such
action. In addition, the party controlling the defense of any third party claim
shall deliver, or cause to be delivered, to the other party, appeals or other
written statements copies of all correspondence, pleadings, motions, brief
relating to or submitted in connection with the defense of the third party
claim, and timely notices of, and the right to participate in (as an observer)
any hearing or other court proceeding relating to the third party claim.

          (e) The amount to which an Indemnified Party may become entitled
hereunder shall be net of any recovery (whether by way of payment, discount,
credit, set off, tax benefit, counterclaim or otherwise received from a third
party (including any insurer or taxation authority) in respect of such claim.
Any such recovery shall be promptly repaid by the Indemnified Party to the
Indemnifying Party, less all reasonable costs, charges and expenses incurred by
the Indemnified Party in obtaining such recovery from the third party.

          (f) Notwithstanding any other provision of this Agreement,

               (i) Seller and Parent shall have indemnification obligations with
          respect to indemnification under this Section 9.3 arising out of
          Buyer's Losses incurred pursuant to Section 9.3(b) (except as provided
          in Section 9.3(f)(v)) only if the aggregate of all Buyer's Losses
          exceeds $100,000 (the "Basket") whereupon, Seller and Parent shall pay
          Buyer's Losses only in excess of the Basket (it being agreed however,
          that such Basket shall not apply to Buyer's Losses incurred pursuant
          to any provision of Section 9.3(b)(iv) and 9.3(b)(v) or any Buyer's
          Losses incurred as a result of fraudulent actions by Seller or the
          Parent);

               (ii) Buyer and Westcon shall have indemnification obligations
          with respect to indemnification under this Section 9.3 arising out of
          Seller's Losses incurred pursuant to Section 9.3(c)(i) only if the
          aggregate of all Seller's Losses shall exceed the Basket, whereupon,
          Buyer and Westcon shall pay Buyer's Losses only in excess of the
          Basket;

               (iii) The indemnification obligation of Buyer and Westcon for
          Seller's Losses hereunder shall not exceed the Purchase Price (the "
          Buyer Limit"); provided that, the Buyer Limit shall not apply to
          Seller's Losses resulting from a breach of the representations and
          warranties set forth in Section 6.2; and

               (iv) The indemnification obligation of Seller and Parent for
          Buyer's Losses hereunder shall not exceed the Purchase Price (the
          "Seller Limit"); provided that, the Seller Limit shall not apply to
          Buyer's Losses resulting from a breach of the representations and
          warranties set forth in Sections 5.2, 5.5, 5.11 and 5.13.

          (g) Buyer and Westcon agree that their sole remedy (other than as a
result of fraudulent actions by Seller or Parent) in respect to any breach of
warranty, representation or covenant by the Parent or the Seller hereunder shall
be limited to indemnification pursuant to this Section 9.3.

                                       25
<PAGE>

     9.4 Conditions. Each of the parties shall use commercially reasonable
efforts to cause all conditions to the Closing over which it has control to be
satisfied as soon as reasonably practicable.

     9.5 Cooperation. Buyer and Seller shall cooperate with each other, and
shall cause their officers, employees, agents, Affiliates, auditors and
representatives to cooperate with each other, after the Closing to ensure the
orderly transition of the Business from Seller to Buyer and to minimize any
disruption to the Business that might result from the transactions contemplated
hereby, including without limitation (i) in connection with obtaining
third-party consents following the Closing, and (ii) taking all reasonable
efforts to, and causing each of their Affiliates to, hold in trust for, and
delivering as soon as practicable to, the other party all mail, communications,
payments, checks and other materials received for the benefit of the other party
or its Affiliates (except in the case of payments as to which an appropriate
adjustment has then already been made). After the Closing, upon reasonable
written notice, (a) Buyer and Seller shall furnish or cause to be furnished to
each other and their employees, counsel, auditors and representatives access,
during normal business hours, such information and assistance relating to the
Business as is reasonably necessary for financial reporting and accounting
matters, the preparation and filing of any tax returns, reports or forms or the
defense of any tax claim or assessment, and (b) without limiting the generality
of the foregoing, Buyer shall co-operate and render assistance to Seller and its
Affiliates (and shall cause Buyer's officers, employees, agents, Affiliates,
auditors and representatives to cooperate and render assistance to Seller and
its Affiliates) in connection with any third-party litigation relating to the
Business including without limitation, the litigation described in Schedule 9.5.
Each party shall reimburse the other for reasonable out-of-pocket costs and
expenses incurred in assisting of the other pursuant to this Section 9.5,
provided however that all out-of-pocket costs for travel, lodging, etc., shall
be directly paid by the parties requesting such cooperation. Neither party shall
be required by this Section 9.5 to take any action that would unreasonably
interfere with the conduct of its business or unseasonably disrupt its normal
operations. or that would require such party to pay any amounts to any Person.

     9.6 Employee and Employee Benefit Matters.

          (a) Employees. Buyer shall prepare a list of employees of Seller to be
attached to this Agreement as Schedule 9.6(a) ("Key Employees") to whom Buyer or
its Affiliates shall offer employment effective as of the Closing. Seller shall
not solicit, prevent, discourage or in any other way interfere with Buyer's
efforts to cause each of the Key Employees to execute and deliver the employment
agreement substantially in the form attached hereto as Exhibit 9.6(a). Seller
shall remain responsible and liable for (A) payment of any and all wages,
bereavement pay, jury duty pay, disability income, supplemental unemployment
benefits, fringe benefits or other perquisites of employment, or similar
benefits (whether arising under any plan, program, policy or arrangement of
Seller or under applicable local law), payroll taxes and other payroll related
expenses, (B) payments to or under employee benefit plans (within the meaning of
Section 3(3) of ERISA) maintained or contributed to by Seller, in either case
arising out of or relating to the employment of any of the Person by Seller
prior to the Closing, and (C) all workers' compensation claims of the any Person
to the extent relating to events, conditions or circumstances that occur or
exist prior to the Closing.

          (b) Severance Plans. With respect to any termination costs or
severance pay arising from employment of any Person, if such Employee becomes an
employee of Buyer or its Affiliate on or about the Closing Date (a "Transferred
Employee"), Buyer or Westcon (or their respective Affiliate) shall provide
severance benefits, if any, (including both cash compensation and other
benefits, such as insurance continuation and retraining) to such Transferred
Employees in accordance with their severance policies and neither Parent not
Seller shall have any obligation in respect thereof. All termination costs or
severance pay arising from

                                       26
<PAGE>

termination of employees of the Seller who do not become employees of the Buyer
or its Affiliates on or about the Closing Date, shall be provided by Seller and
Parent in accordance with their severance policies (including both cash
compensation and other benefits, such as insurance continuation and retraining)
and neither Buyer nor Westcon shall have any obligation in respect thereof.

     9.7 Corporate Records. Each of Seller and Buyer shall have the right to
inspect and make copies of the books and records, as they existed on the Closing
Date during normal business hours at any time upon reasonable notice to the
other party, within 6 years after the Closing Date. Any exercise of any such
right of inspection shall (a) be at the inspecting party's expense, (b) not
unreasonably interfere with the other party's business or operations, (c) be
conducted at a location or locations reasonably specified by the other party,
and (d) be subject to the confidentiality obligations of the inspecting party
contained in Section 9.2 hereof (which shall survive the Closing for purposes of
this paragraph).

     9.8 Collection of Receivables. Parent and Seller covenant and agree that
if, following the Closing Date, they shall receive any payments in respect of
any accounts receivables included in the Definitive Net Assets Value, they shall
deliver same to Buyer and if such payment is made by check payable to the order
of Seller or Parent, same shall be endorsed without recourse and delivered to
Buyer. Buyer covenants and agrees that if, following the Closing Date, it
receives any payments in respect of accounts receivable of Seller, Parent or
Custom Edge, Inc. which are not included in the Definitive Net Assets Value then
they shall deliver same to Parent. All payments and deliveries described in this
Section 9.8 shall be made within three (3) days following receipt thereof.

     9.9 Taxes.

          (a) Seller agrees to retain responsibility for, and agrees to pay (or
cause the appropriate Affiliate to pay) when due (except while and to the extent
being contested in good faith), any and all Taxes of every nature and
description of Seller or otherwise relating to the Business or the Assets for
any taxable period or portion of a taxable period which period or portion ends
on or prior to the Closing Date. Buyer agrees to retain responsibility for, and
agrees to pay (or cause the appropriate Affiliate to pay) when due (except while
and to the extent being contested in good faith), any and all Taxes of every
nature and description of Buyer or otherwise relating to the Business or the
Assets for any taxable period or portion of a taxable period which period or
portion begins after the Closing Date. Any Taxes which are imposed on the Assets
(including personal property taxes) or which are otherwise imposed on a periodic
basis relating to any tax period which begins before and ends after the Closing
Date shall be allocated between the parties on a pro rata basis over the period
for which such Taxes are levied, or if it cannot be determined over what period
such Taxes are being levied, over the fiscal period of the relevant taxing
authority, in each case irrespective of the lien or assessment date of such
Taxes. As promptly as practicable after the Closing, each party shall present to
the other a calculation as to the amount of any such Taxes paid by such party
(or its Affiliates) and the pro-rata portion owed by the other, which shall be
paid within 10 days.

          (b) The Purchase Price (as determined in accordance with Article III)
shall be allocated by the Buyer among the Assets in accordance with the
requirements of applicable law for tax reporting purposes, which allocation
shall be conclusive unless Seller establishes that Buyer has acted unreasonably
in doing so. The parties shall file all Tax returns (including amended returns
and claims for refund) and information reports in a manner consistent with such
allocation, and shall use their reasonable best efforts to sustain such
allocations in any subsequent tax audit or tax dispute.

                                       27
<PAGE>

          (c) All transfer, real property transfer, documentary, sales, use,
stamp, registration and other such Taxes and fees (including any penalties and
interest) incurred in connection with this Agreement and the consummation of the
transactions contemplated hereby shall be paid by Seller when due, and Seller
will, at its own expense, file all necessary Tax returns and other documentation
with respect to all such transfer, real property transfer, documentary, sales,
use, stamp, registration and other Taxes and fees. If required by applicable
law, Buyer will join in the execution of any such Tax return and other
documentation.

     9.10 Required Filings. Buyer and Seller acknowledge that the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, 15 U.S.C. ss. 18(a) et.
Seq. ("HSR Act") is applicable to the transaction sought to be consummated by
this Agreement. Buyer and Seller shall use their best efforts to, as soon as
practicable after the Effective Date, but no later than three (3) business days
from the Effective Date, make or cause to be made their respective filings under
the HSR Act. Buyer shall pay the filing fee in connection with the filings under
the HSR Act. Buyer and Seller also agree that this transaction is subject to,
conditioned upon and cannot be consummated until the Buyer has received
notification (the "Notification") from the Federal Trade Commission approving
the acquisition contemplated by the terms of this Agreement. The Seller shall
not tender and the Buyer shall not accept the consideration to be eventually
exchanged to consummate this transaction until the Buyer shall have received
such Notification. Both the Seller and the Buyer acknowledge that there has not
been a tender or an acceptance of consideration nor will there be until the
Buyer shall have received the Notification.

     9.11 Business Name

          (a) Effective as of the Closing, and for a period of thirty (30) days
thereafter, Parent and Seller hereby grant to Buyer a United States,
royalty-free, non-exclusive license to use, display, copy, reproduce, transmit,
communicate and distribute, on any media now known or hereafter created, the
name and any identifying logos of the name "Inacom Communications" and any name
and identifying logos employing the words "Inacom Communications"or variation
thereof.

          (b) Seller, Parent and their Affiliates (or any successor thereto)
shall not for a period of seven (7) years from the Effective Date use the name
"Inacom" in connection with the word "Communications" or any variation thereof
as a business name, trade name, trademark, service mark, domain name or for any
other similar purpose. In addition, promptly following the Closing Date, Seller
shall amend its Certificate of Incorporation with the office of the Nebraska
Secretary of State, to change its corporate name to a name not similar thereto.

     9.12 No Solicitation. Parent, Seller and their respective Affiliates
(including any successor thereto as a result of an Acquisition Transaction)
shall not, for a period of three (3) years from the Closing Date, directly or
indirectly, employ, engage, hire, solicit or retain any Transferred Employee
provided that: (i) any Transferred Employee may be hired by Parent or Seller
after six (6) months following the Closing Date if such Transferred Employee was
not specifically solicited by Parent or Seller, and (ii) prior to expiration of
the such six (6) months, a Transferred Employee may be hired by Parent or Seller
provided that Buyer consents thereto, which consent shall not be unreasonably
withheld .

     9.13 Bankruptcy Court Approvals. Prior to the Petition Date, Seller and
Parent shall provide Buyer with a proposed motion seeking (i) approval of the
Cost Reimbursement Fee, (ii) scheduling a hearing to approve this Agreement and
obtain the other orders set forth in Section 7.2 hereof and (iii) establishing
notice and other procedures with respect to such hearing (the "Motion"). The
Motion and any proposed order filed

                                       28
<PAGE>

in connection with the Motion shall be in a form that is satisfactory to Buyer.
On the Petition Date or the next Business Day after the Petition Date, the
Seller and the Parent shall file the Motion.

                                   ARTICLE X
                                   ---------

                               Dispute Resolution

     10.1 Dispute Resolution.

          (a) Any dispute, controversy or claim arising out of or relating to
the Agreement. or the validity, interpretation, breach or termination thereof,
including claims seeking redress or asserting rights under applicable law (a
"Dispute"), shall be resolved in accordance with the procedures set forth in
this Section 10.1. After completion of any prior procedures required hereby,
either party may submit the Dispute for resolution by arbitration pursuant to
the Rules of the Center for Public Resources ("CPR") for Non-Administered
Arbitration of Business Disputes as in effect at the time of the arbitration.
The parties consent to a single, consolidated arbitration for all Disputes for
which arbitration is permitted.

          (b) The neutral organization for purposes of the CPR rules will be the
CPR. The arbitral tribunal shall be composed of three arbitrators selected by
agreement of the parties or, in the absence of such agreement within 60 days
after either party first proposes such arbitrators, by the CPR. If the
arbitration involves any issue relating to the determination of the Purchase
Price, the panel of arbitrators shall include at least one certified public
accountant. The arbitration shall be conducted in New York City if commenced by
Seller or Parent or in Omaha, NE if commenced by Buyer or Westcon. Each party
shall be permitted to present its case, witnesses and evidence, if any, in the
presence of the other party. A written transcript of the proceedings shall be
made and furnished to the parties. The arbitrators shall determine the Dispute
in accordance with the law of New York, without giving effect to any conflict of
law rules or other rules that might render such law inapplicable or unavailable,
and shall apply this Agreement according to its terms.

          (c) The parties agree to be bound, by any award or order resulting
from any arbitration conducted hereunder and further agree that:

               (i) any monetary award, shall include pre-award interest, to the
          extent appropriate, shall not include incidental or consequential
          damages and shall be made and payable in U.S. dollars through a bank
          selected by the recipient of such award, free of any, withholding tax
          or other deduction, together with interest thereon at the rate of 7%
          from the date the award is granted to the date it is paid in full;

               (ii) in the context of an attempt by either party to enforce an
          arbitral award or order, any defenses relating to the parties'
          capacity or the validity of this Agreement or any related agreement
          under any law are hereby waived; and

               (iii) judgment on any award or order resulting from an
          arbitration conducted under this Section 10.1 may be entered and
          enforced in any court, in any country having jurisdiction thereof or
          having jurisdiction over any of the parties or any of their assets.

                                       29
<PAGE>

          (d) Except as expressly permitted by this Agreement, no party will
commence or voluntarily participate in any court action or proceeding concerning
a Dispute, except (i) for enforcement as contemplated by Section 10.1(c)(iii)
above, (ii) to restrict or vacate an arbitral decision based on the grounds
specified under applicable law and not waived in Section 10.1(c)(ii) above, or
(iii) for interim relief as provided in Section10.1(e) below. For purposes of
the foregoing or enforcement of any undisputed obligation, the parties hereto
submit to the non-exclusive jurisdiction of the courts of New York.

          (e) The parties mutually acknowledge that an award of damages may be
inadequate to remedy any breach of this Agreement and that injunctive relief may
be required. Therefore, (i) a party may request a court of competent
jurisdiction to provide interim injunctive relief in aid of arbitration or to
prevent a violation of this Agreement pending arbitration, and any such request
shall not be deemed a waiver or breach of the obligations to arbitrate set forth
herein, and (ii) the arbitrators may order equitable relief where they deem it
appropriate and the parties agree that any interim relief ordered by the
arbitrators may be immediately and specifically enforced by a court otherwise
having jurisdiction over the parties.

                                   ARTICLE XI
                                   ----------

                     Termination and Cost-Reimbursement Fee
                     --------------------------------------

     11.1 Termination. This Agreement may be terminated at any time by:

          (a) the mutual consent of Buyer and Seller.

          (b) Buyer, if:

               (i) the conditions set forth in Article VII hereof shall not have
          been met by July 7, 2000, except if such conditions have not been met
          solely as a result of the action or inaction of the Buyer; or

               (ii) Seller has materially breached a representation and
          warranty, covenant or agreement set forth herein and such breach is
          not cured (if curable) within 15 days following written notice thereof
          from the non-breaching party;

          (c) Buyer, if Buyer shall have determined in its sole discretion,
exercised in good faith, that the transaction contemplated by this Agreement has
become impracticable by reason of the institution of any litigation, proceeding
or investigation to restrain or prohibit the consummation of the transaction so
long as such litigation, proceeding or investigation has been instituted,
initiated, commenced or undertaken without the approval of the Buyer.

          (d) Buyer, if there is a Material Adverse Change, provided that, the
filing by Parent and/or Seller of a petition for relief under the federal
bankruptcy laws, or if a petition shall have been filed against Parent and/or
Seller does not constitute a Material Adverse Change.

          (e) Buyer, (i) unless within three (3) days of the occurrence of the
Petition Date, Parent or Seller obtains interim approval for funding or
debtor-in-possession financing (the "DIP Facility"), allocated to the Seller and
for the Business, on terms and in the amounts set forth on Schedule 11.1 or (ii)
if the Petition

                                       30

<PAGE>

Date does not occur, within seven (7) days of the Effective Date and Buyer
determines that the Business has been materially damaged while operated by
Seller, due to inadequate funding, loss of employees, customers, suppliers or
otherwise;

          (f) Buyer, if any provisions for notice or bidding with respect to the
hearing on the Motion are altered in any material way from those that are
proposed in the Motion either pursuant to an order of the Bankruptcy Court or
otherwise.

          (g) Buyer, on or after ten (10) business days from the Effective Date,
if Seller has not confirmed that the condition set forth in Section 7.3(d) have
been satisfied and that all lenders which have a security interest in or lien on
any of the Assets, or whose consent is otherwise needed to transfer the Assets,
have agreed to terminate such security interest or lien and to grant such
consent upon the Closing.

Any termination pursuant to this Article XI shall be effected by written notice
from the party or parties so terminating to the other parties hereto.

     11.2 Effect of Termination. In the event of the termination of this
Agreement as provided in Section 11.1, this Agreement shall be of no further
force or effect and no party hereto, nor its shareholders, directors, officers
or affiliates, shall have any liability in connection herewith; provided,
however, that Section 9.2, 9.3, 11.3, and Article XII shall survive the
termination of this Agreement. Notwithstanding the foregoing, this Section 11.2
shall not relieve any party from liability in connection with an intentional or
willful material breach of this Agreement prior to its termination.

     11.3 Cost-Reimbursement Fee. If (i) this Agreement is terminated for any
reason other than by a material breach by the Buyer or Westcon or (ii) if by
order of the Bankruptcy Court the assets of the Seller are sold or transferred
to any parties other than Buyer or Westcon, then the Seller and Parent, jointly
and severally agree to immediately pay the Buyer and/or Westcon an amount equal
to its fees, cost and expenses including, without limitation, attorneys' fees,
accountants fees, investment banking fees, governmental filing and other
governmental fees) incurred by the Buyer or Westcon or its Affiliates in
connection with the transactions contemplated by this Agreement, such amount not
to exceed $350,000 (the "Cost Reimbursement Fee") and as reimbursement for the
lost profit opportunity of Buyer and the time and expense of Buyer's executives.

                                  ARTICLE XII
                                  -----------

                                  Miscellaneous
                                  -------------

     12.1 Expenses. Subject to section 11.3 hereof, regardless of whether the
transactions contemplated hereby are consummated, each of the parties hereto
shall bear the fees and expenses relating to its compliance with the various
provisions of this Agreement and its covenants to be performed hereunder, and
each of the parties hereto shall pay all expenses (including legal fees and
expenses) incurred by it in connection with this Agreement and the transactions
contemplated hereby; provided, however, that, to the extent that Seller's
payment of any such fees and expenses would affect the calculation of Definitive
Net Assets, then such fees and expenses which Seller would otherwise be
obligated to pay as provided for above shall instead be paid by Parent on
Seller's behalf.

                                       31

<PAGE>

     12.2 Benefit; Assignment. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns,
and not to the benefit of any other Person. Neither this Agreement nor any
rights or obligations hereunder shall be assigned by either party hereto without
the written consent of the other.

     12.3 Governing Law. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of New York without regard
to its conflicts of law principles.

     12.4 Breach; Failure of Condition. If either party shall believe at any
time prior to the Closing that the other party has breached any representation,
warranty, covenant or agreement contained in this Agreement, or that any
condition to the Closing is not reasonably likely to be satisfied, such party
shall promptly so inform such other party, specifying the breach or condition
concerned, and such other party shall have a reasonable opportunity to correct
such breach or cause such condition to be satisfied, but failure to so notify
shall not release the other party from its obligations hereunder.

     12.5 Notices. All notices, requests, consents, payments, demands and other
communications required or contemplated under this Agreement ("Notices") shall
be in writing and (a) personally delivered, (b) sent by telefacsimile, or (c)
sent by Federal Express or Airborne Courier (for next business day delivery),
shipping prepaid, as follows:

                  If to Parent or Seller, addressed to:

                           10802 Farnam Drive
                           Omaha, NE 68154
                           Attn: Tom Molchan
                           Facsimile No.: 402-758-3667

                  With a copy to:

                           McGrath, North, Mullin & Kratz, P.C.
                           One Central Park Plaza, Suite 1400
                           Omaha, NE 68102
                           Attn: Daniel C. Pape
                           Facsimile No.: 402-341-0216

                  If to Buyer or Westcon, addressed to:

                           c/o Westcon Group, Inc.
                           520 White Plains Rd.
                           Tarrytown, New York 10591
                           Attn: Alan Marc Smith
                           Facsimile No: (914) 8 29-7899

or to such other persons or address as any person may request by notice given as
aforesaid. Notices shall be deemed given and received at the time of personal
delivery, receipt of telecopy, or, if sent by Federal Express or Airborne
Courier, one business day after such sending.

                                       32
<PAGE>

     12.6 Headings. The headings of the articles, sections and paragraphs
contained in this Agreement are for convenience of reference only and do not
form a part hereof, and in no way modify the meanings of such articles, sections
and paragraphs.

     12.7 Facsimile/Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument. A facsimile, telecopy or
other reproduction of this Agreement may be executed by one or more parties
hereto, and an executed copy of this Agreement may be delivered by one or more
parties hereto by facsimile or similar instantaneous electronic transmission
device pursuant to which the signature of or on behalf of such party can be
seen, and such execution and delivery shall be considered valid, binding and
effective for all purposes. At the request of any party hereto, all parties
hereto agree to execute an original of this Agreement and provide such
requesting party with a full set of original signature pages for each of the
parties hereto other than the requesting party within two (2) business days of
the original execution date hereof.

     12.8 Entire Agreement; Third Party Beneficiaries. This Agreement contains
all the terms agreed upon by the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements, arrangements or
understandings between such parties as to the subject matter hereof and neither
this document nor any document delivered in connection with this Agreement
confers upon any Person not a party hereto any rights or remedies hereunder.

     12.9 Waiver; Modification. Each of the parties may, by written instrument,
(a) extend the time for the performance of any of the obligations or other acts
of other parties hereto, (b) waive any inaccuracies or breaches in the
representations and warranties of other parties contained in this Agreement or
in any document delivered pursuant to this Agreement, and (c) waive compliance
by other parties with or modify any of the other parties' covenants contained in
this Agreement. Any waiver of any provision hereof (or in any related document
or instrument) shall not be effective unless made expressly and in a writing
executed in the name of the party sought to be charged. The failure of any party
to insist, in any one or more instances, on performance of any of the terms or
conditions of this Agreement shall not be construed as a waiver or
relinquishment of any rights granted hereunder or of the future performance of
any such term, covenant or condition, but the obligations of the parties with
respect thereto shall continue in full force and effect.

     12.10 Updating of Schedules.

          (a) Seller's Schedules may be updated one or more times prior to the
Closing Date. Any updated Schedule shall be delivered as soon as practicable,
and in any event at or before the Closing. An updated Schedule shall be deemed
to modify a representation and/or warranty made prior to such updating only in
the event that Seller acted in good faith and used commercially reasonable
efforts when preparing the original Schedule delivered to Buyer as of the date
of this Agreement and such updated Schedule. In the event any such updated
Schedule indicates a change from the information previously provided, to Buyer,
and such change represents a Material Adverse Change, Buyer may choose, by
giving notice to Seller (by the earlier of (i) five days after receipt of the
applicable updated Schedule and (ii) the Closing Date), to terminate this
Agreement and in such event not to effect the Closing. If Buyer does not choose
to so terminate this Agreement, then any objection which Buyer would otherwise
have to the updated information shall be deemed to have been waived.

          (b) So long as information constituting any exception to a
representation and warranty of a party is set forth in the Schedules applicable
to that representation and warranty, such information need not

                                       33
<PAGE>

be repeated in other Schedules, even if such information could apply to more
than one representation or warranty of that party hereunder.

     12.11 Severability. The provisions of this Agreement shall be deemed
severable, and if any part of any provision is held to be illegal, void,
voidable, invalid, nonbinding or unenforceable in its entirety or partially or
as to any party, for any reason, such provision may be changed, consistent with
the intent of the parties hereto, to the extent reasonably necessary to make the
provision, as so changed, legal, valid, binding and enforceable. If any
provision of this Agreement is held to be illegal, void, voidable, invalid,
nonbinding or unenforceable in its entirety or partially or as to any party, for
any reason, and if such provision cannot be changed consistent with the intent
of the parties hereto to make it fully legal, valid, binding and enforceable,
then such provision shall be stricken from this Agreement and the remaining
provisions of this Agreement shall not in any way be affected or impaired, but
shall remain in full force and effect.

              [The remainder of this page intentionally left blank

                                       34
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, as of the day and year first above written.

                                 WESTCON GROUP, INC.

                                 By: /s/ Alan Marc Smith
                                    --------------------------------------
                                      Alan Marc Smith
                                      Vice President

                                 VODAONE CORP.

                                 By: /s/ Alan Marc Smith
                                    --------------------------------------
                                      Alan Marc Smith
                                      Vice President

                                 INACOM CORP.

                                 By: /s/ Paul Reitmeier
                                    --------------------------------------
                                      Name: Paul Reitmeier
                                      Title: Vice President

                                 INACOM COMMUNICATIONS, INC.

                                 By: /s/ Paul Reitmeier
                                    --------------------------------------
                                      Name: Paul Reitmeier
                                      Title: President

                                       35<PAGE>
                                                                    Exhibit 10.1

                        COMMON STOCK PURCHASE AGREEMENT

    COMMON STOCK PURCHASE AGREEMENT (the "AGREEMENT"), dated as of September 6,
2000, by and between ADAM.COM, INC., a Georgia corporation (the "COMPANY"), and
FUSION CAPITAL FUND II, LLC (together with its permitted assigns, the "BUYER").

                                    WHEREAS:

    Subject to the terms and conditions set forth in this Agreement including
the terms and conditions set forth in ANNEX A attached hereto (the "COMMON STOCK
PURCHASE TERMS AND CONDITIONS"), the Company wishes to sell to the Buyer, and
the Buyer wishes to buy from the Company, up to Twelve Million Dollars
($12,000,000) of the Company's common stock, par value $0.01 per share (the
"COMMON STOCK"). The Buyer and Company expressly agree that the Common Stock
Purchase Terms and Conditions set forth in ANNEX A hereto are fully incorporated
into and are part of this Agreement. The shares of Common Stock to be purchased
hereunder are referred to herein as, the "PURCHASE SHARES."

    NOW THEREFORE, the Company and the Buyer hereby agree as follows:

    1.  PURCHASE OF COMMON STOCK.

        a. COMMENCEMENT OF PURCHASES OF SHARES COMMON STOCK. Subject to the
    satisfaction (or waiver) of the conditions set forth in Sections 6 and 7
    below and in accordance with the Common Stock Purchase Terms and Conditions
    set forth in Annex A hereto, the Company hereby agrees to sell to the Buyer,
    and the Buyer hereby agrees to purchase from the Company, shares of Common
    Stock as follows: (i) the purchase and sale of the first Six Million Dollars
    ($6,000,000) of Common Stock hereunder (the "FIRST TRANCHE") shall commence
    within five (5) Trading Days (as defined in the last sentence of this
    Section 1(a)) of the date that the Registration Statement referred to in the
    first sentence of Section 4(a) hereof is declared effective under the
    Securities Act of 1933, as amended (the "1933 ACT") by the United States
    Securities and Exchange Commission (the "SEC") (the "FIRST COMMENCEMENT");
    and (ii) the purchase and sale of the second Six Million Dollars
    ($6,000,000) of Common Stock hereunder (the "SECOND TRANCHE") shall commence
    within five (5) Trading Days of the date that the Registration Statement
    referred to in the second sentence of Section 4(a) hereof is declared
    effective under the 1933 Act by the SEC (the "SECOND COMMENCEMENT"), (each
    such commencement, a "COMMENCEMENT"). It is agreed and acknowledged by the
    parties hereto that the commencement of the Second Tranche shall be at the
    option of the Company in its sole discretion until such time as the Company
    shall have delivered an irrevocable written notice (the "SECOND TRANCHE
    NOTICE") to the Buyer stating that the Company elects to commence the Second
    Tranche under the terms and conditions provided herein. The Second Tranche
    may not commence until the aggregate amount of the First Tranche has been
    completed as provided herein. The Buyer is not obligated to commence the
    Second Tranche unless the Company has delivered the Second Tranche Notice
    prior to the date that is ten (10) Trading Days following the date on which
    the aggregate amount of the First Tranche has been completed as provided
    herein. Upon delivery of the Second Tranche Notice to the Buyer, subject to
    the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7
    below, the Company and the Buyer shall be obligated to commence the Second
    Tranche. For purposes of this Agreement, "TRADING DAY" shall mean any day on
    which the Principal Market (as defined in Section 4(d) hereof) is open for
    customary trading.

        b. COMMENCEMENT DATES. The date of each Commencement (each a
    "COMMENCEMENT DATE") shall be within five (5) Trading Days following the
    date of satisfaction (or waiver) of the conditions to the Commencement set
    forth in Sections 6 and 7 below (or such later date as is mutually agreed to
    by the Company and the Buyer) applicable to such Commencement.
<PAGE>
    2.  BUYER'S REPRESENTATIONS AND WARRANTIES.

    The Buyer represents and warrants to the Company that:

        a. INVESTMENT PURPOSE. The Buyer is entering into this Agreement and
    acquiring the Commitment Shares (as defined in Section 7(b) hereof) (this
    Agreement and the Commitment Shares are collectively referred to herein as
    the "Securities"), for its own account for investment only and not with a
    view towards, or for resale in connection with, the public sale or
    distribution thereof; provided however, by making the representations
    herein, the Buyer does not agree to hold any of the Securities for any
    minimum or other specific term.

        b. ACCREDITED INVESTOR STATUS. The Buyer is an "accredited investor" as
    that term is defined in Rule 501(a)(3) of Regulation D.

        c. RELIANCE ON EXEMPTIONS. The Buyer understands that the Securities are
    being offered and sold to it in reliance on specific exemptions from the
    registration requirements of United States federal and state securities laws
    and that the Company is relying in part upon the truth and accuracy of, and
    the Buyer's compliance with, the representations, warranties, agreements,
    acknowledgments and understandings of the Buyer set forth herein in order to
    determine the availability of such exemptions and the eligibility of the
    Buyer to acquire the Securities.

        d. INFORMATION. The Buyer has been furnished with all materials relating
    to the business, finances and operations of the Company and materials
    relating to the offer and sale of the Securities that have been reasonably
    requested by the Buyer, including, without limitation, the SEC Documents (as
    defined in Section 3(f) hereof). The Buyer understands that its investment
    in the Securities involves a high degree of risk. The Buyer (i) is able to
    bear the economic risk of an investment in the Securities including a total
    loss, (ii) has such knowledge and experience in financial and business
    matters that it is capable of evaluating the merits and risks of the
    proposed investment in the Securities and (iii) has had an opportunity to
    ask questions of and receive answers from the officers of the Company
    concerning the financial condition and business of the Company and others
    matters related to an investment in the Securities. Neither such inquiries
    nor any other due diligence investigations conducted by the Buyer or its
    representatives shall modify, amend or affect the Buyer's right to rely on
    the Company's representations and warranties contained in Section 3 below.
    The Buyer has sought such accounting, legal and tax advice as it has
    considered necessary to make an informed investment decision with respect to
    its acquisition of the Securities.

        e. NO GOVERNMENTAL REVIEW. The Buyer understands that no United States
    federal or state agency or any other government or governmental agency has
    passed on or made any recommendation or endorsement of the Securities or the
    fairness or suitability of the investment in the Securities nor have such
    authorities passed upon or endorsed the merits of the offering of the
    Securities.

        f. TRANSFER OR RESALE. The Buyer understands that except as provided in
    the Registration Rights Agreement (as defined in Section 6(a) hereof):
    (i) the Securities have not been and are not being registered under the 1933
    Act or any state securities laws, and may not be offered for sale, sold,
    assigned or transferred unless (A) subsequently registered thereunder or
    (B) an exemption exists permitting such Securities to be sold, assigned or
    transferred without such registration; (ii) any sale of the Securities made
    in reliance on Rule 144 may be made only in accordance with the terms of
    Rule 144 and further, if Rule 144 is not applicable, any resale of the
    Securities under circumstances in which the seller (or the person through
    whom the sale is made) may be deemed to be an underwriter (as that term is
    defined in the 1933 Act) may require compliance with some other exemption
    under the 1933 Act or the rules and regulations of the SEC thereunder; and
    (iii) neither the Company nor any other person is under any obligation to
    register such securities

                                       3
<PAGE>
    under the 1933 Act or any state securities laws or to comply with the terms
    and conditions of any exemption thereunder.

        g. VALIDITY; ENFORCEMENT. This Agreement has been duly and validly
    authorized, executed and delivered on behalf of the Buyer and is a valid and
    binding agreement of the Buyer enforceable against the Buyer in accordance
    with its terms, subject as to enforceability to general principles of equity
    and to applicable bankruptcy, insolvency, reorganization, moratorium,
    liquidation and other similar laws relating to, or affecting generally, the
    enforcement of applicable creditors' rights and remedies.

        h. RESIDENCY. The Buyer is a resident of the State of Illinois.

    3.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

    The Company represents and warrants to the Buyer that:

        a. ORGANIZATION AND QUALIFICATION. The Company and its "SUBSIDIARIES"
    (which for purposes of this Agreement means any entity in which the Company,
    directly or indirectly, owns 50% or more of the voting stock or capital
    stock or other similar equity interests other than ThePort.com, Inc.) are
    corporations duly organized and validly existing in good standing under the
    laws of the jurisdiction in which they are incorporated, and have the
    requisite corporate power and authority to own their properties and to carry
    on their business as now being conducted. Each of the Company and its
    Subsidiaries is duly qualified as a foreign corporation to do business and
    is in good standing in every jurisdiction in which its ownership of property
    or the nature of the business conducted by it makes such qualification
    necessary, except to the extent that the failure to be so qualified or be in
    good standing could not reasonably be expected to have a Material Adverse
    Effect. As used in this Agreement, "MATERIAL ADVERSE EFFECT" means any
    material adverse effect on any of: (i) the business, properties, assets,
    operations, results of operations or financial condition of the Company and
    its Subsidiaries, if any, taken as a whole, (ii) the value of the Common
    Stock or the value of this Agreement, (iii) the transactions contemplated
    hereby or by the agreements and instruments to be entered into in connection
    herewith or (iv) the authority or ability of the Company to perform its
    obligations under the Transaction Documents (as defined in Section 2(b)
    hereof). The Company has no Subsidiaries except as set forth on
    SCHEDULE 3(a).

        b. AUTHORIZATION; ENFORCEMENT; VALIDITY. (i) The Company has the
    requisite corporate power and authority to enter into and perform its
    obligations under this Agreement, the Registration Rights Agreement (as
    defined in Section 6(a) hereof) and each of the other agreements entered
    into by the parties hereto in connection with the transactions contemplated
    by this Agreement (collectively, the "TRANSACTION DOCUMENTS"), and to issue
    the Securities in accordance with the terms hereof and thereof, (ii) the
    execution and delivery of the Transaction Documents by the Company and the
    consummation by it of the transactions contemplated hereby and thereby,
    including without limitation, the issuance of the Commitment Shares and the
    reservation for issuance and the issuance of the Purchase Shares issuable
    under this Agreement, have been duly authorized by the Company's Board of
    Directors and no further consent or authorization is required by the
    Company, its Board of Directors or its shareholders, (iii) this Agreement
    has been, and each other Transaction Document shall be at its respective
    Commencement, duly executed and delivered by the Company and (iv) this
    Agreement constitutes, and each other Transaction Document shall constitute
    as of its respective Commencement, the valid and binding obligations of the
    Company enforceable against the Company in accordance with their terms,
    except as such enforceability may be limited by general principles of equity
    or applicable bankruptcy, insolvency, reorganization, moratorium,
    liquidation or similar laws relating to, or affecting generally, the
    enforcement of creditors' rights and remedies.

                                       4
<PAGE>
        c. CAPITALIZATION. As of the date hereof, the authorized capital stock
    of the Company consists of (i) 20,000,000 shares of Common Stock, of which
    as of the date hereof, 5,598,627 shares are issued and outstanding, none are
    held as treasury shares, 3,000,000 shares are reserved for issuance pursuant
    to the Company's stock option plan pursuant to which approximately 585,000
    shares remain available for grant and 52,500 warrants shares are issuable
    and reserved for issuance pursuant to securities (other than this Agreement
    or stock options issued pursuant to the Company's stock option plan)
    exercisable or exchangeable for, or convertible into, shares of Common Stock
    and (ii) 10,000,000 shares of preferred stock, no par value, of which as of
    the date hereof no shares are issued and outstanding. All of such
    outstanding shares have been, or upon issuance will be, validly issued and
    are fully paid and nonassessable. Except in connection with the transaction
    with Fusion Capital Fund I, LLC pursuant to that certain securities purchase
    agreement dated as of November 15, 1999 and as disclosed in SCHEDULE 3(c),
    (i) no shares of the Company's capital stock are subject to preemptive
    rights or any other similar rights or any liens or encumbrances suffered or
    permitted by the Company, (ii) there are no outstanding debt securities,
    (iii) there are no outstanding options, warrants, scrip, rights to subscribe
    to, calls or commitments of any character whatsoever relating to, or
    securities or rights convertible into, any shares of capital stock of the
    Company or any of its Subsidiaries, or contracts, commitments,
    understandings or arrangements by which the Company or any of its
    Subsidiaries is or may become bound to issue additional shares of capital
    stock of the Company or any of its Subsidiaries or options, warrants, scrip,
    rights to subscribe to, calls or commitments of any character whatsoever
    relating to, or securities or rights convertible into, any shares of capital
    stock of the Company or any of its Subsidiaries, (iv) there are no
    agreements or arrangements under which the Company or any of its
    Subsidiaries is obligated to register the sale of any of their securities
    under the 1933 Act (except the Registration Rights Agreement), (v) there are
    no outstanding securities or instruments of the Company or any of its
    Subsidiaries which contain any redemption or similar provisions, and there
    are no contracts, commitments, understandings or arrangements by which the
    Company or any of its Subsidiaries is or may become bound to redeem a
    security of the Company or any of its Subsidiaries, (vi) there are no
    securities or instruments containing anti-dilution or similar provisions
    that will be triggered by the issuance of the Securities as described in
    this Agreement and (vii) the Company does not have any stock appreciation
    rights or "phantom stock" plans or agreements or any similar plan or
    agreement. The Company has furnished to the Buyer true and correct copies of
    the Company's Articles of Incorporation, as amended and as in effect on the
    date hereof (the "ARTICLES OF INCORPORATION"), and the Company's By-laws, as
    amended and as in effect on the date hereof (the "BY-LAWS"), and summaries
    of the terms of all securities convertible into or exercisable for Common
    Stock, if any, and copies of any documents containing the material rights of
    the holders thereof in respect thereto.

        d. ISSUANCE OF SECURITIES. The Commitment Shares have been duly
    authorized and, upon issuance in accordance with the terms hereof, shall be
    (i) validly issued, fully paid and non-assessable and (ii) free from all
    taxes, liens and charges with respect to the issue thereof. An aggregate of
    1,500,000 shares of Common Stock have been duly authorized and reserved for
    issuance upon purchase under the First Tranche. Upon issuance and payment
    therefore in accordance with the terms and conditions of this Agreement
    including the Common Stock Purchase Terms and Conditions set forth in ANNEX
    A hereto, the Purchase Shares shall be validly issued, fully paid and
    nonassessable and free from all taxes, liens and charges with respect to the
    issue thereof, with the holders being entitled to all rights accorded to a
    holder of Common Stock.

        e. NO CONFLICTS. Except as disclosed in SCHEDULE 3(E), the execution,
    delivery and performance of the Transaction Documents by the Company and the
    consummation by the Company of the transactions contemplated hereby and
    thereby (including, without limitation, the reservation for issuance and
    issuance of the Purchase Shares) will not (i) result in a violation of the
    Articles of Incorporation, any Certificate of Designations, Preferences and
    Rights of any outstanding series of

                                       5
<PAGE>
    preferred stock of the Company or the By-laws or (ii) conflict with, or
    constitute a default (or an event which with notice or lapse of time or both
    would become a default) under, or give to others any rights of termination,
    amendment, acceleration or cancellation of, any agreement, indenture or
    instrument to which the Company or any of its Subsidiaries is a party, or
    result in a violation of any law, rule, regulation, order, judgment or
    decree (including federal and state securities laws and regulations and the
    rules and regulations of the Principal Market applicable to the Company or
    any of its Subsidiaries) or by which any property or asset of the Company or
    any of its Subsidiaries is bound or affected which, in the case of (ii),
    could not reasonably be expected to result in a Material Adverse Effect.
    Except as disclosed in SCHEDULE 3(e), neither the Company nor its
    Subsidiaries is in violation of any term of or in default under its Articles
    of Incorporation, any Certificate of Designation, Preferences and Rights of
    any outstanding series of preferred stock of the Company or By-laws or their
    organizational charter or by-laws, respectively. Except as disclosed in
    SCHEDULE 3(e), neither the Company nor any of its Subsidiaries is in
    violation of any term of or in default under any material contract,
    agreement, mortgage, indebtedness, indenture, instrument, judgment, decree
    or order or any statute, rule or regulation applicable to the Company or its
    Subsidiaries, except for possible conflicts, defaults, terminations or
    amendments which could not reasonably be expected to have a Material Adverse
    Effect. The business of the Company and its Subsidiaries is not being
    conducted, and shall not be conducted, in violation of any law, ordinance,
    regulation of any governmental entity, except for possible violations, the
    sanctions for which either individually or in the aggregate could not
    reasonably be expected to have a Material Adverse Effect. Except as
    specifically contemplated by this Agreement and as required under the 1933
    Act, the Company is not required to obtain any consent, authorization or
    order of, or make any filing or registration with, any court or governmental
    agency or any regulatory or self-regulatory agency in order for it to
    execute, deliver or perform any of its obligations under or contemplated by
    the Transaction Documents in accordance with the terms hereof or thereof.
    Except as disclosed in SCHEDULE 3(e), all consents, authorizations, orders,
    filings and registrations which the Company is required to obtain pursuant
    to the preceding sentence have been obtained or effected on or prior to the
    date hereof. Except as disclosed in SCHEDULE 3(e), the Company is not and
    has not been since January 1, 1998, in violation of the listing requirements
    of the Principal Market.

        f. SEC DOCUMENTS; FINANCIAL STATEMENTS. Except as disclosed in
    SCHEDULE 3(F), since January 1, 1999, the Company has timely filed all
    reports, schedules, forms, statements and other documents required to be
    filed by it with the SEC pursuant to the reporting requirements of the
    Securities Exchange Act of 1934, as amended (the "1934 ACT") (all of the
    foregoing filed prior to the date hereof and all exhibits included therein
    and financial statements and schedules thereto and documents incorporated by
    reference therein being hereinafter referred to as the "SEC DOCUMENTS"). As
    of their respective dates, the SEC Documents complied in all material
    respects with the requirements of the 1934 Act and the rules and regulations
    of the SEC promulgated thereunder applicable to the SEC Documents, and none
    of the SEC Documents, at the time they were filed with the SEC (except as
    they may have been correctly amended), contained any untrue statement of a
    material fact or omitted to state a material fact required to be stated
    therein or necessary in order to make the statements therein, in light of
    the circumstances under which they were made, not misleading. As of their
    respective dates, the financial statements of the Company included in the
    SEC Documents complied as to form in all material respects with applicable
    accounting requirements and the published rules and regulations of the SEC
    with respect thereto. Such financial statements have been prepared in
    accordance with generally accepted accounting principles, consistently
    applied, during the periods involved (except (i) as may be otherwise
    indicated in such financial statements or the notes thereto or (ii) in the
    case of unaudited interim statements, to the extent they may exclude
    footnotes or may be condensed or summary statements) and fairly present in
    all material respects the financial position of the Company as of the dates

                                       6
<PAGE>
    thereof and the results of its operations and cash flows for the periods
    then ended (subject, in the case of unaudited statements, to normal year-end
    audit adjustments).

        g. ABSENCE OF CERTAIN CHANGES. Except as disclosed in SCHEDULE 3(g),
    since June 30, 2000, there has been no material adverse change in the
    business, properties, operations, financial condition or results of
    operations of the Company or its Subsidiaries. The Company has not taken any
    steps, and does not currently expect to take any steps, to seek protection
    pursuant to any bankruptcy law nor does the Company or any of its
    Subsidiaries have any knowledge or reason to believe that its creditors
    intend to initiate involuntary bankruptcy proceedings.

        h. ABSENCE OF LITIGATION. There is no action, suit, proceeding, inquiry
    or investigation before or by any court, public board, government agency,
    self-regulatory organization or body pending or, to the knowledge of the
    Company or any of its Subsidiaries, threatened against or affecting the
    Company, the Common Stock or any of the Company's Subsidiaries or any of the
    Company's or the Company's Subsidiaries' officers or directors in their
    capacities as such, which could reasonably be expected to have a Material
    Adverse Effect. A description of each action, suit, proceeding, inquiry or
    investigation before or by any court, public board, government agency,
    self-regulatory organization or body which, as of the date of this
    Agreement, is pending or threatened in writing against or affecting the
    Company, the Common Stock or any of the Company's Subsidiaries or any of the
    Company's or the Company's Subsidiaries' officers or directors in their
    capacities as such, is set forth in SCHEDULE 3(h).

        i. ACKNOWLEDGMENT REGARDING BUYER'S PURCHASE OF THE SECURITIES. The
    Company acknowledges and agrees that the Buyer is acting solely in the
    capacity of arm's length purchaser with respect to the Transaction Documents
    and the transactions contemplated hereby and thereby. The Company further
    acknowledges that the Buyer is not acting as a financial advisor or
    fiduciary of the Company (or in any similar capacity) with respect to the
    Transaction Documents and the transactions contemplated hereby and thereby
    and any advice given by the Buyer or any of its representatives or agents in
    connection with the Transaction Documents and the transactions contemplated
    hereby and thereby is merely incidental to the Buyer's purchase of the
    Securities. The Company further represents to the Buyer that the Company's
    decision to enter into the Transaction Documents has been based solely on
    the independent evaluation by the Company and its representatives and
    advisors.

        j. NO GENERAL SOLICITATION. Neither the Company, nor any of its
    affiliates, nor any person acting on its or their behalf, has engaged in any
    form of general solicitation or general advertising (within the meaning of
    Regulation D under the 1933 Act) in connection with the offer or sale of the
    Securities.

        k. NO INTEGRATED OFFERING. Neither the Company, nor any of its
    affiliates, nor any person acting on its or their behalf has, directly or
    indirectly, made any offers or sales of any security or solicited any offers
    to buy any security, under circumstances that would require registration of
    any of the Securities under the 1933 Act or cause this offering of the
    Securities to be integrated with prior offerings by the Company for purposes
    of the 1933 Act or any applicable shareholder approval provisions,
    including, without limitation, under the rules and regulations of any
    exchange or automated quotation system on which any of the securities of the
    Company are listed or designated, nor will the Company or any of its
    Subsidiaries take any action or steps that would require registration of any
    of the Securities under the 1933 Act or cause the offering of the Securities
    to be integrated with other offerings.

        l. DILUTIVE EFFECT. The Company understands and acknowledges that the
    number of Purchase Shares issuable hereunder will increase in certain
    circumstances. The Company further acknowledges that its obligation to issue
    Purchase Shares under this Agreement in accordance with the term and
    conditions herein including the Common Stock Purchase Terms and Conditions
    as set

                                       7
<PAGE>
    forth in ANNEX A hereto is absolute and unconditional regardless of the
    dilutive effect that such issuance may have on the ownership interests of
    other shareholders of the Company.

        m. INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or
    possess adequate rights or licenses to use all material trademarks, trade
    names, service marks, service mark registrations, service names, patents,
    patent rights, copyrights, inventions, licenses, approvals, governmental
    authorizations, trade secrets and rights necessary to conduct their
    respective businesses as now conducted. Except as set forth on
    SCHEDULE 3(m), none of the Company's material trademarks, trade names,
    service marks, service mark registrations, service names, patents, patent
    rights, copyrights, inventions, licenses, approvals, government
    authorizations, trade secrets or other intellectual property rights have
    expired or terminated, or, by the terms and conditions thereof, could expire
    or terminate within two years from the date of this Agreement. The Company
    and its Subsidiaries do not have any knowledge of any infringement by the
    Company or its Subsidiaries of any material trademark, trade name rights,
    patents, patent rights, copyrights, inventions, licenses, service names,
    service marks, service mark registrations, trade secret or other similar
    rights of others, or of any such development of similar or identical trade
    secrets or technical information by others and, except as set forth on
    SCHEDULE 3(M), there is no claim, action or proceeding being made or brought
    against, or to the Company's knowledge, being threatened against, the
    Company or its Subsidiaries regarding trademark, trade name, patents, patent
    rights, invention, copyright, license, service names, service marks, service
    mark registrations, trade secret or other infringement, which could
    reasonably be expected to have a Material Adverse Effect.

        n. ENVIRONMENTAL LAWS. The Company and its Subsidiaries (i) are in
    compliance with any and all applicable foreign, federal, state and local
    laws and regulations relating to the protection of human health and safety,
    the environment or hazardous or toxic substances or wastes, pollutants or
    contaminants ("ENVIRONMENTAL LAWS"), (ii) have received all permits,
    licenses or other approvals required of them under applicable Environmental
    Laws to conduct their respective businesses and (iii) are in compliance with
    all terms and conditions of any such permit, license or approval, except
    where, in each of the three foregoing clauses, the failure to so comply
    could not reasonably be expected to have, individually or in the aggregate,
    a Material Adverse Effect.

        o. TITLE. The Company and its Subsidiaries have good and marketable
    title in fee simple to all real property and good and marketable title to
    all personal property owned by them which is material to the business of the
    Company and its Subsidiaries, in each case free and clear of all liens,
    encumbrances and defects except such as are described in SCHEDULE 3(o) or
    such as do not materially affect the value of such property and do not
    interfere with the use made and proposed to be made of such property by the
    Company and any of its Subsidiaries. Any real property and facilities held
    under lease by the Company and any of its Subsidiaries are held by them
    under valid, subsisting and enforceable leases with such exceptions as are
    not material and do not interfere with the use made and proposed to be made
    of such property and buildings by the Company and its Subsidiaries.

        p. INSURANCE. The Company and each of its Subsidiaries are insured by
    insurers of recognized financial responsibility against such losses and
    risks and in such amounts as management of the Company believes to be
    prudent and customary in the businesses in which the Company and its
    Subsidiaries are engaged. Neither the Company nor any such Subsidiary has
    been refused any insurance coverage sought or applied for and neither the
    Company nor any such Subsidiary has any reason to believe that it will not
    be able to renew its existing insurance coverage as and when such coverage
    expires or to obtain similar coverage from similar insurers as may be
    necessary to continue its business at a cost that would not materially and
    adversely affect the condition, financial or otherwise, or the earnings,
    business or operations of the Company and its Subsidiaries, taken as a
    whole.

                                       8
<PAGE>
        q. REGULATORY PERMITS. The Company and its Subsidiaries possess all
    material certificates, authorizations and permits issued by the appropriate
    federal, state or foreign regulatory authorities necessary to conduct their
    respective businesses, and neither the Company nor any such Subsidiary has
    received any notice of proceedings relating to the revocation or
    modification of any such certificate, authorization or permit.

        r. TAX STATUS. The Company and each of its Subsidiaries has made or
    filed all federal and state income and all other material tax returns,
    reports and declarations required by any jurisdiction to which it is subject
    (unless and only to the extent that the Company and each of its Subsidiaries
    has set aside on its books provisions reasonably adequate for the payment of
    all unpaid and unreported taxes) and has paid all taxes and other
    governmental assessments and charges that are material in amount, shown or
    determined to be due on such returns, reports and declarations, except those
    being contested in good faith and has set aside on its books provision
    reasonably adequate for the payment of all taxes for periods subsequent to
    the periods to which such returns, reports or declarations apply. There are
    no unpaid taxes in any material amount claimed to be due by the taxing
    authority of any jurisdiction, and the officers of the Company know of no
    basis for any such claim.

        s. TRANSACTIONS WITH AFFILIATES. Except as set forth on SCHEDULE 3(s)
    and other than the grant or exercise of stock options disclosed on
    SCHEDULE 3(c), none of the officers, directors, or employees of the Company
    is presently a party to any transaction with the Company or any of its
    Subsidiaries (other than for services as employees, officers and directors),
    including any contract, agreement or other arrangement providing for the
    furnishing of services to or by, providing for rental of real or personal
    property to or from, or otherwise requiring payments to or from any officer,
    director or such employee or, to the knowledge of the Company, any
    corporation, partnership, trust or other entity in which any officer,
    director, or any such employee has an interest or is an officer, director,
    trustee or partner.

        t. APPLICATION OF TAKEOVER PROTECTIONS. The Company and its board of
    directors have taken all necessary action, if any, in order to render
    inapplicable any control share acquisition, business combination, poison
    pill (including any distribution under a rights agreement) or other similar
    anti-takeover provision under the Articles of Incorporation or the laws of
    the state of its incorporation which is or could become applicable to the
    Buyer as a result of the transactions contemplated by this Agreement,
    including, without limitation, the Company's issuance of the Securities and
    the Buyer's ownership of the Securities.

        u. RIGHTS AGREEMENT. The Company has not adopted a shareholder rights
    plan or similar arrangement relating to accumulations of beneficial
    ownership of Common Stock or a change in control of the Company.

        v. FOREIGN CORRUPT PRACTICES. Neither the Company, nor any of its
    Subsidiaries, nor any director, officer, agent, employee or other person
    acting on behalf of the Company or any of its Subsidiaries has, in the
    course of its actions for, or on behalf of, the Company, used any corporate
    funds for any unlawful contribution, gift, entertainment or other unlawful
    expenses relating to political activity; made any direct or indirect
    unlawful payment to any foreign or domestic government official or employee
    from corporate funds; violated or is in violation of any provision of the
    U.S. Foreign Corrupt Practices Act of 1977, as amended; or made any unlawful
    bribe, rebate, payoff, influence payment, kickback or other unlawful payment
    to any foreign or domestic government official or employee.

    4.  COVENANTS.

        a. FILING REGISTRATION STATEMENT. The Company shall within five
    (5) Trading Days from the date hereof file a new Registration Statement
    covering the resale of at least 1,200,000 Purchase Shares

                                       9
<PAGE>
    issuable in the First Tranche and the sale of 154,286 First Tranche
    Commitment Shares (as defined in Section 7(b)). The Company shall also
    within ten (10) Trading Days from the date of the delivery to the Buyer of
    the Second Tranche Notice file a new Registration Statement covering the
    resale of a reasonable estimate of the number of Purchase Shares issuable in
    the Second Tranche and a reasonable estimate of the number of Second Tranche
    Commitment Shares (as defined in Section 7(b)). The Buyer and its counsel
    shall have a reasonable opportunity to review and comment upon each such
    registration statement or amendment to such registration statement and any
    related prospectus prior to its filing with the SEC. The Company shall use
    its reasonable best efforts to have such registration statements or
    amendments declared effective by the SEC at the earliest possible date.

        b. BLUE SKY. The Company shall, on or before the Commencement Date, take
    such action, if any, as the Company shall reasonably determine is necessary
    in order to obtain an exemption for or to qualify the Commitment Shares and
    the Purchase Shares for sale to the Buyer pursuant to this Agreement under
    applicable securities or "Blue Sky" laws of the states of the United States,
    and shall provide evidence of any such action so taken to the Buyer on or
    prior to the Commencement Date. The Company shall make all filings and
    reports relating to the offer and sale of the Commitment Shares and the
    Purchase Shares required under applicable securities or "Blue Sky" laws of
    the states of the United States following the Commencement Date.

        c. NO VARIABLE PRICED FINANCING. Other than in connection with the
    transaction with Fusion Capital Fund I, LLC and pursuant to this Agreement,
    the Company agrees that beginning on the date of this Agreement and ending
    on the date of termination of this Agreement (as provided in Section 9(k)
    hereof), neither the Company nor any of its Subsidiaries shall, without the
    prior written consent of the Buyer, contract for any equity financing
    (including any debt financing with an equity component) or issue any equity
    securities of the Company or any Subsidiary or securities convertible or
    exchangeable into or for equity securities of the Company or any Subsidiary
    (including debt securities with an equity component) which, in any case
    (i) are convertible into or exchangeable for an indeterminate number of
    shares of common stock, (ii) are convertible into or exchangeable for Common
    Stock at a price which varies with the market price of the Common Stock,
    (iii) directly or indirectly provide for any "re-set" or adjustment of the
    purchase price, conversion rate or exercise price or (iv) contain any
    "make-whole" provision based upon, directly or indirectly, the market price
    of the Common Stock, in each case, other than reasonable and customary
    anti-dilution adjustments for issuance of shares of Common Stock at a price
    which is below the market price of the Common Stock.

        d. LISTING. Promptly after filing each registration statement, the
    Company shall secure the listing of the applicable Purchase Shares and
    Commitment Shares upon each national securities exchange and automated
    quotation system, if any, upon which shares of Common Stock are then listed
    (subject to official notice of issuance) and shall maintain, so long as any
    other shares of Common Stock shall be so listed, such listing of all such
    securities from time to time issuable under the terms of the Transaction
    Documents. The Company shall maintain the Common Stock's authorization for
    quotation on The Nasdaq National Market (the "PRINCIPAL MARKET"). Neither
    the Company nor any of its Subsidiaries shall take any action that would be
    reasonably expected to result in the delisting or suspension of the Common
    Stock on the Principal Market. The Company shall promptly, and in no event
    later than the following Trading Day, provide to the Buyer copies of any
    notices it receives from the Principal Market regarding the continued
    eligibility of the Common Stock for listing on such automated quotation
    system or securities exchange. The Company shall pay all fees and expenses
    in connection with satisfying its obligations under this Section.

        e. LIMITATION ON SHORT SALES AND HEDGING TRANSACTIONS. The Buyer agrees
    that beginning on the date of this Agreement and ending on the date of
    termination of this Agreement as provided in

                                       10
<PAGE>
    Section 9(k), the Buyer and its agents, representatives and affiliates shall
    not in any manner whatsoever enter into or effect, directly or indirectly,
    any (i) "short sale" (as such term is defined in Rule 3b-3 of the 1934 Act)
    of the Common Stock or (ii) hedging transaction, which establishes a net
    short position with respect to the Common Stock; provided, however, that
    such restrictions shall not apply (i) if the Buyer promptly submits after a
    sale of shares of Common Stock a Purchase Notice (as defined in the Common
    Stock Purchase Terms and Conditions) entitling the Buyer to receive a number
    of shares of Common Stock at least equal to the number of shares so sold or
    (ii) if an Event of Default (as defined the Common Stock Purchase Terms and
    Conditions) has occurred under the Common Stock Purchase Terms and
    Conditions including any failure by the Company to timely issue any Purchase
    Shares pursuant to the Common Stock Purchase Terms and Conditions.

        f. LIMITATION ON SALES OF COMMITMENT SHARES. The Buyer agrees that
    beginning on the date of this Agreement and ending on the date of
    termination of this Agreement as provided in Section 9(k), the Buyer shall
    not transfer or sell (i) the First Tranche Commitment Shares (as defined in
    Section 7(b) hereof) until six months after the First Commencement Date or
    such date as the First Tranche has been completed hereunder or this
    Agreement has been terminated and (ii) the Second Tranche Commitment Shares
    (as defined in Section 7(b) hereof) until six months after the Second
    Commencement Date or such date as the Second Tranche has been completed
    hereunder or this Agreement has been terminated; provided, however, that
    such restrictions shall not apply: (i) in connection with any transfers to
    or among affiliates (as defined in the Securities Exchange Act of 1934, as
    amended), (ii) in connection with any pledge in connection with a bona fide
    loan or margin account, or (iii) if an Event of Default has occurred, or any
    event which, after notice and/or lapse of time, would become an Event of
    Default, under the Common Stock Purchase Terms and Conditions including any
    failure by the Company to timely issue Purchase Shares under the Common
    Stock Purchase Terms and Conditions. Notwithstanding the forgoing, the Buyer
    may transfer Commitment Shares to a third party in order to settle a sale
    made by the Buyer where the Buyer reasonably expects the Company to deliver
    Purchase Shares to Buyer under the Common Stock Purchase Terms and
    Conditions so long as the Buyer maintains ownership of the same overall
    number of shares of Common Stock by "replacing" the Commitment Shares so
    transferred with Purchase Shares when the Purchase Shares are actually
    issued by the Company to the Buyer.

        h. DUE DILIGENCE. The Buyer shall have the right, from time to time as
    the Buyer may reasonably deem appropriate, to perform reasonable due
    diligence on the Company during normal business hours. The Company and its
    officers and employees shall reasonably cooperate with the Buyer in
    connection with any reasonable request by the Buyer related to the Buyer's
    due diligence of the Company.

    5.  TRANSFER AGENT INSTRUCTIONS.

    The Company shall issue irrevocable instructions to its transfer agent, and
any subsequent transfer agent, to issue certificates, registered in the name of
the Buyer or its respective nominee(s), for the Purchase Shares (the
"IRREVOCABLE TRANSFER AGENT INSTRUCTIONS"). The Company warrants to the Buyer
that no instruction other than the Irrevocable Transfer Agent Instructions
referred to in this Section 5, will be given by the Company to its transfer
agent with respect to the Purchase Shares and that the Commitment Shares and the
Purchase Shares shall otherwise be freely transferable on the books and records
of the Company as and to the extent provided in this Agreement and the
Registration Rights Agreement subject to the provisions of Section 4(f) in the
case of the Commitment Shares. So long as a Registration Statement is available
for the sale of Commitment Shares and the Purchase Shares or if the Buyer
provides the Company with an opinion of counsel, in a generally acceptable form,
to the effect that a public sale, assignment or transfer of the Commitment
Shares or the Purchase Shares may be made without registration under the 1933
Act, the Company shall promptly instruct its transfer

                                       11
<PAGE>
agent to issue one or more certificates representing such shares in such name
and in such denominations as specified by the Buyer and without any restrictive
legend. The Buyer hereby confirms it shall comply with all securities laws and
regulations applicable to it including applicable prospectus delivery
requirements upon sale of the Commitment Shares or the Purchase Shares.

    6.  CONDITIONS TO THE COMPANY'S OBLIGATION TO COMMENCE SALES OF SHARES OF
        COMMON STOCK.

    The obligation of the Company hereunder to commence each of the First
Tranche and the Second Tranche at the respective Commencement Dates is subject
to the satisfaction, at or before the respective Commencement Date, of each of
the following conditions, provided that these conditions are for the Company's
sole benefit and may be waived by the Company at any time in its sole discretion
by providing the Buyer with prior written notice thereof:

        a. The Buyer shall have executed each of the Transaction Documents to
    which it is a party and delivered the same to the Company applicable to the
    respective Commencement Date including the Registration Rights Agreement
    substantially in the form of EXHIBIT A hereto (the "REGISTRATION RIGHTS
    AGREEMENT").

        b. Subject to the Company's compliance with Section 4(a), a Registration
    Statement covering the sale of the respective Commitment Shares and the
    Purchase Shares issuable in the First Tranche or Second Tranche, as
    applicable, shall have been declared effective under the 1933 Act by the SEC
    and no stop order with respect to the Registration Statement shall be
    pending or threatened by the SEC.

        c. The representations and warranties of the Buyer shall be true and
    correct in all material respects as of the date when made and as of each
    Commencement Date as though made at that time (except for representations
    and warranties that speak as of a specific date), and the Buyer shall have
    performed, satisfied and complied in all material respects with the
    covenants, agreements and conditions required by this Agreement to be
    performed, satisfied or complied with by the Buyer at or prior to the
    Commencement Date.

    7.  CONDITIONS TO THE BUYER'S OBLIGATION TO COMMENCE PURCHASES OF SHARES OF
        COMMON STOCK.

    The obligation of the Buyer hereunder to commence each of the First Tranche
and the Second Tranche at the respective Commencement Dates is subject to the
satisfaction, at or before the respective Commencement Date, of each of the
following conditions, provided that these conditions are for the Buyer's sole
benefit and may be waived by the Buyer at any time in its sole discretion by
providing the Company with prior written notice thereof:

        a. The Company shall have executed each of the Transaction Documents and
    delivered the same to the Buyer applicable to the respective Commencement
    Date including the Registration Rights Agreement substantially in the form
    of EXHIBIT B hereto.

        b. On the Commencement Date for the First Commencement the Company shall
    have delivered to the Buyer 154,286 shares of Common Stock (the "FIRST
    TRANCHE COMMITMENT SHARES"). On the Commencement Date for the Second
    Commencement the Company shall have delivered to the Buyer a number of
    shares of Common Stock (the "SECOND TRANCHE COMMITMENT SHARES" and together
    with the First Commencement Commitment Shares, the "COMMITMENT SHARES")
    equal to 8% of $6,000,000 divided by the lower of (A) the arithmetic average
    of the Closing Bid Prices (as defined in the Common Stock Purchase Terms and
    Conditions) of the Common Stock for the five (5) consecutive Trading Days
    immediately preceding the Trading Day which is two (2) Trading Days prior to
    the Second Commencement and (B) the arithmetic average of the Closing Bid
    Prices of the Common Stock for the five (5) consecutive Trading Days

                                       12
<PAGE>
    immediately preceding the date of the Second Tranche Notice. The number of
    Commitment Shares shall be appropriately adjusted for any reorganization,
    recapitalization, non-cash dividend, stock split or other similar
    transaction.

        c. The Common Stock shall be authorized for quotation on the Principal
    Market, trading in the Common Stock shall not have been within the last
    365 days suspended by the SEC or the Principal Market and the Purchase
    Shares and the Commitment Shares shall be approved for listing upon the
    Principal Market.

        d. The Buyer shall have received the opinions of the Company's legal
    counsel dated as of the Commencement Date in the form of EXHIBIT A attached
    hereto.

        e. The representations and warranties of the Company shall be true and
    correct in all material respects (except to the extent that any of such
    representations and warranties is already qualified as to materiality in
    Section 3 above, in which case, such representations and warranties shall be
    true and correct without further qualification) as of the date when made and
    as of the respective Commencement Date as though made at that time (except
    for representations and warranties that speak as of a specific date) and the
    Company shall have performed, satisfied and complied with the covenants,
    agreements and conditions required by the Transaction Documents to be
    performed, satisfied or complied with by the Company at or prior to the
    Commencement Date. The Buyer shall have received a certificate, executed by
    the CEO, President or CFO of the Company, dated as of the Commencement Date,
    to the foregoing effect in the form attached hereto as EXHIBIT C.

        f. The Board of Directors of the Company shall have adopted resolutions
    in the form attached hereto as EXHIBIT D which shall be in full force and
    effect without any amendment or supplement thereto as of the Commencement
    Date.

        g. As of the Commencement Date, the Company shall have reserved out of
    its authorized and unissued Common Stock, solely for the purpose of
    effecting issuances hereunder at least 1,500,000 shares of Common Stock.

        h. The Irrevocable Transfer Agent Instructions, in the form of
    EXHIBIT E attached hereto, shall have been delivered to and acknowledged in
    writing by the Company and the Company's transfer agent.

        i. The Company shall have delivered to the Buyer a certificate
    evidencing the incorporation and good standing of the Company in the State
    of Georgia issued by the Secretary of State of the State of Georgia as of a
    date within ten (10) Trading Days of the Commencement Date.

        j. The Company shall have delivered to the Buyer a certified copy of the
    Articles of Incorporation as certified by the Secretary of State of the
    State of Georgia within ten (10) Trading Days of the Commencement Date.

        k. The Company shall have delivered to the Buyer a secretary's
    certificate executed by the Secretary of the Company, dated as of the
    respective Commencement Date, in the form attached hereto as EXHIBIT F.

        l. A Registration Statement covering the sale of all of the respective
    Commitment Shares and Purchase Shares issuable in the First Tranche or
    Second Tranche, as the case may be, shall have been declared effective under
    the 1933 Act by the SEC and no stop order with respect to the Registration
    Statement shall be pending or threatened by the SEC. The Company shall have
    prepared and delivered to the Buyer a final form of Prospectus to be used by
    the Buyer in connection with any sales of any Commitment Shares or any
    applicable Purchase Shares. The Company shall have made all filings under
    all applicable federal and state securities laws necessary

                                       13
<PAGE>
    to consummate the issuance of the Commitment Shares and the Purchase Shares
    pursuant to this Agreement in compliance with such laws.

        m. No Event of Default (as defined in the Common Stock Purchase Terms
    and Conditions) has occurred, or any event which, after notice and/or lapse
    of time, would become an Event of Default has occurred.

    8.  INDEMNIFICATION.  In consideration of the Buyer's execution and delivery
of the Transaction Documents and acquiring the Securities thereunder and in
addition to all of the Company's other obligations under the Transaction
Documents, the Company shall defend, protect, indemnify and hold harmless the
Buyer and each other holder of the Securities and all of their shareholders,
officers, directors, employees and direct or indirect investors and any of the
foregoing person's agents or other representatives (including, without
limitation, those retained in connection with the transactions contemplated by
this Agreement) (collectively, the "INDEMNITEES") from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and expenses in connection therewith (irrespective of
whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements
(the "INDEMNIFIED LIABILITIES"), incurred by any Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any
representation or warranty made by the Company in the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby,
(b) any breach of any covenant, agreement or obligation of the Company contained
in the Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby, or (c) any cause of action, suit or claim
brought or made against such Indemnitee and arising out of or resulting from the
execution, delivery, performance or enforcement of the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby. To
the extent that the foregoing undertaking by the Company may be unenforceable
for any reason, the Company shall make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law.

    9.  GOVERNING LAW; MISCELLANEOUS.

        a. GOVERNING LAW; JURISDICTION; JURY TRIAL. The corporate laws of the
    State of Georgia shall govern all issues concerning the relative rights of
    the Company and its shareholders. All other questions concerning the
    construction, validity, enforcement and interpretation of this Agreement and
    the other Transaction Documents shall be governed by the internal laws of
    the State of Illinois, without giving effect to any choice of law or
    conflict of law provision or rule (whether of the State of Illinois or any
    other jurisdictions) that would cause the application of the laws of any
    jurisdictions other than the State of Illinois. Each party hereby
    irrevocably submits to the exclusive jurisdiction of the state and federal
    courts sitting in the City of Chicago, for the adjudication of any dispute
    hereunder or under the other Transaction Documents or in connection herewith
    or therewith, or with any transaction contemplated hereby or discussed
    herein, and hereby irrevocably waives, and agrees not to assert in any suit,
    action or proceeding, any claim that it is not personally subject to the
    jurisdiction of any such court, that such suit, action or proceeding is
    brought in an inconvenient forum or that the venue of such suit, action or
    proceeding is improper. Each party hereby irrevocably waives personal
    service of process and consents to process being served in any such suit,
    action or proceeding by mailing a copy thereof to such party at the address
    for such notices to it under this Agreement and agrees that such service
    shall constitute good and sufficient service of process and notice thereof.
    Nothing contained herein shall be deemed to limit in any way any right to
    serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
    WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR
    THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
    ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

                                       14
<PAGE>
        b. COUNTERPARTS. This Agreement may be executed in two or more identical
    counterparts, all of which shall be considered one and the same agreement
    and shall become effective when counterparts have been signed by each party
    and delivered to the other party; provided that a facsimile signature shall
    be considered due execution and shall be binding upon the signatory thereto
    with the same force and effect as if the signature were an original, not a
    facsimile signature.

        c. HEADINGS. The headings of this Agreement are for convenience of
    reference and shall not form part of, or affect the interpretation of, this
    Agreement.

        d. SEVERABILITY. If any provision of this Agreement shall be invalid or
    unenforceable in any jurisdiction, such invalidity or unenforceability shall
    not affect the validity or enforceability of the remainder of this Agreement
    in that jurisdiction or the validity or enforceability of any provision of
    this Agreement in any other jurisdiction.

        e. ENTIRE AGREEMENT; AMENDMENTS. This Agreement supersedes all other
    prior oral or written agreements between the Buyer, the Company, their
    affiliates and persons acting on their behalf with respect to the matters
    discussed herein, and this Agreement, the Other Transaction Documents and
    the instruments referenced herein contain the entire understanding of the
    parties with respect to the matters covered herein and therein and, except
    as specifically set forth herein or therein, neither the Company nor the
    Buyer makes any representation, warranty, covenant or undertaking with
    respect to such matters. No provision of this Agreement may be amended other
    than by an instrument in writing signed by the Company and the Buyer, and no
    provision hereof may be waived other than by an instrument in writing signed
    by the party against whom enforcement is sought.

        f. NOTICES. Any notices, consents, waivers or other communications
    required or permitted to be given under the terms of this Agreement must be
    in writing and will be deemed to have been delivered: (i) upon receipt, when
    delivered personally; (ii) upon receipt, when sent by facsimile (provided
    confirmation of transmission is mechanically or electronically generated and
    kept on file by the sending party); or (iii) one Trading Day after deposit
    with a nationally recognized overnight delivery service, in each case
    properly addressed to the party to receive the same. The addresses and
    facsimile numbers for such communications shall be:

        If to the Company:

               adam.com, Inc
               1600 RiverEdge Parkway, Suite 800
               Atlanta, Georgia 30328
               Telephone: 770-980-0888
               Facsimile: 770-989-4970
               Attention: Robert S. Cramer Jr.

               With a copy to:

               King & Spalding
               191 Peachtree Street
               Atlanta, Georgia 30303
               Telephone: 404-572-4600
               Facsimile: 404-572-5100
               Attention: Stacey K. Geer

                                       15
<PAGE>
        If to the Buyer:

               Fusion Capital Fund II, LLC
               222 Merchandise Mart Plaza, Suite 9-112
               Chicago, Illinois 60654
               Telephone: 312-644-6644
               Facsimile: 312-644-6244
               Attention: Steven G. Martin

        with a copy to:

               Ungaretti & Harris
               3500 Three First National Plaza
               Chicago, Illinois 60602
               Telephone: 312-977-4400
               Facsimile: 312-977-4405
               Attention: James T. Easterling

        If to the Transfer Agent:

               American Stock Transfer
               6201 15th Avenue, Third Floor
               Brooklyn, NY 11219
               Telephone: 718-921-8261
               Facsimile: 718-765-8701
               Attention: Donna Ansbro

    or at such other address and/or facsimile number and/or to the attention of
    such other person as the recipient party has specified by written notice
    given to each other party three (3) Trading Days prior to the effectiveness
    of such change. Written confirmation of receipt (A) given by the recipient
    of such notice, consent, waiver or other communication, (B) mechanically or
    electronically generated by the sender's facsimile machine containing the
    time, date, recipient facsimile number and an image of the first page of
    such transmission or (C) provided by a nationally recognized overnight
    delivery service, shall be rebuttable evidence of personal service, receipt
    by facsimile or receipt from a nationally recognized overnight delivery
    service in accordance with clause (i), (ii) or (iii) above, respectively.

        g. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
    inure to the benefit of the parties and their respective successors and
    assigns. The Company shall not assign this Agreement or any rights or
    obligations hereunder without the prior written consent of the Buyer,
    including by merger or consolidation. The Buyer may not assign its rights
    under this Agreement without the consent of the Company, other than to an
    affiliate of the Buyer controlled by Steven G. Martin or Joshua B.
    Scheinfeld. Notwithstanding anything to the contrary contained in the
    Transaction Documents, the Buyer shall be entitled to pledge the Commitment
    Shares and the Purchase Shares in connection with a bona fide loan or margin
    account.

        h. NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the
    benefit of the parties hereto and their respective permitted successors and
    assigns, and is not for the benefit of, nor may any provision hereof be
    enforced by, any other person.

        i. PUBLICITY. The Company and the Buyer shall have the right to approve
    before issuance any press releases or any other public disclosure (including
    any filings with the SEC) with respect to the transactions contemplated
    hereby; provided, however, that the Company shall be entitled, without the
    prior approval of any Buyer, to make any press release or other public
    disclosure (including any filings with the SEC) with respect to such
    transactions as is required by applicable

                                       16
<PAGE>
    law and regulations (although the Buyer shall be consulted by the Company in
    connection with any such press release or other public disclosure prior to
    its release and shall be provided with a copy thereof).

        j. FURTHER ASSURANCES. Each party shall do and perform, or cause to be
    done and performed, all such further acts and things, and shall execute and
    deliver all such other agreements, certificates, instruments and documents,
    as the other party may reasonably request in order to carry out the intent
    and accomplish the purposes of this Agreement and the consummation of the
    transactions contemplated hereby.

        k. TERMINATION; SURVIVAL. This Agreement may be terminated only as
    follows:

           (i) By the Buyer any time after an Event of Default (as defined in
       the Common Stock Purchase Terms and Conditions) has occurred.

           (ii) In the event that the First Commencement shall not have
       occurred, the Company shall have the option to terminate this Agreement
       for any reason or for no reason without liability of any party to any
       other party. If this Agreement is terminated pursuant to this
       Section 9(k)(ii), the Company shall issue to the Buyer the First
       Commencement Commitment Shares immediately prior to the termination
       hereof. The number of First Commencement Commitment Shares shall be
       appropriately adjusted for any reorganization, recapitalization, non-cash
       dividend, stock split or other similar transaction.

           (iii) In the event that the First Commencement shall not have
       occurred on or before October 31, 2000, due to the failure to satisfy the
       conditions set forth in Sections 6 and 7 above with respect to the
       Commencement (and the nonbreaching party's failure to waive such
       unsatisfied condition(s)), the nonbreaching party shall have the option
       to terminate this Agreement at the close of business on such date without
       liability of any party to any other party. If this Agreement is
       terminated pursuant to this Section 9(k)(iii) prior to the Commencement
       other than solely as a result of any material breach of the Buyer's
       obligation hereunder, the Company shall issue to the Buyer the First
       Commencement Commitment Shares immediately upon the termination hereof.
       The number of First Commencement Commitment Shares shall be appropriately
       adjusted for any reorganization, recapitalization, non-cash dividend,
       stock split or other similar transaction.

           (iv) If the First Commencement Date has occurred as provided herein,
       by the Company any time after the date the First Tranche has been fully
       completed but prior to the delivery to the Buyer of the Second Tranche
       Notice.

           (v) If the First Commencement Date has occurred as provided herein,
       by either the Company or the Buyer if the First Tranche has been fully
       completed and the Company has not delivered a Second Tranche Notice to
       the Buyer on or prior to the tenth (10th) Trading Day after the First
       Tranche has been fully completed.

           (vi) If the First Commencement Date has occurred as provided herein,
       the First Tranche has been fully completed and the Company has delivered
       a Second Tranche Notice to the Buyer, in the event that the Second
       Commencement Date shall not have occurred on or before twenty
       (20) Trading Days from the date of the Second Tranche Notice due to the
       failure to satisfy the conditions set forth in Sections 6 and 7 above
       with respect to the Second Commencement (and the nonbreaching party's
       failure to waive such unsatisfied condition(s)), the nonbreaching party
       shall have the option to terminate this Agreement at the close of
       business on such date without liability of any party to any other party.
       If this Agreement is terminated pursuant to this Section 9(k)(vi) prior
       to the Second Commencement Date other than solely as a result of a
       material breach of the Buyer's obligation hereunder, the Company shall
       issue to the Buyer the Second Commencement Commitment Shares immediately
       upon

                                       17
<PAGE>
       the termination hereof. In the such case, the number of Second
       Commencement Commitment Shares shall be equal to 8% of $6,000,000 divided
       by the lower of (A) the arithmetic average of the Closing Bid Prices of
       the Common Stock for the five (5) consecutive Trading Days immediately
       preceding the Trading Day which is two (2) Trading Days prior to the date
       of termination of this Agreement and (B) the arithmetic average of the
       Closing Bid Prices of the Common Stock for the five (5) consecutive
       Trading Days immediately preceding the date of the Second Tranche Notice.
       The number of Commitment Shares shall be appropriately adjusted for any
       reorganization, recapitalization, non-cash dividend, stock split or other
       similar transaction.

           (vii) This Agreement shall automatically terminate on the date that
       the Company has sold and the Buyer has purchased an aggregate of Twelve
       Million Dollars ($12,000,000) of Common Stock as provided herein.

    Except for termination of this Agreement under Section 9(k)(vii), any
    termination of this Agreement pursuant to this Section 9(k) shall be
    effected by written notice from the Company to the Buyer, or the Buyer to
    the Company, as the case may be, setting forth the basis for the termination
    hereof. A termination of this Agreement under Section 9(k)(vii) shall
    automatically occur on such date as the Company has sold and the Buyer has
    purchased an aggregate of Twelve Million Dollars ($12,000,000) of Common
    Stock pursuant to the terms of this Agreement, without any action or notice
    on the part of any party. Except as expressly set forth in this Agreement,
    the representations and warranties of the Company and the Buyer contained in
    Sections 2 and 3 hereof, the indemnification provisions set forth in
    Section 8 hereof and the agreements and covenants set forth in Section 9,
    shall survive the Commencement and any termination hereof.

        l. FINANCIAL ADVISOR. The Company acknowledges that it has not engaged
    any financial advisor, placement agent, broker or finder in connection with
    the transactions contemplated hereby. The Company shall be responsible for
    the payment of any fees or commissions, if any, of any financial advisor,
    placement agent, broker or finder relating to or arising out of the
    transactions contemplated hereby. The Company shall pay, and hold the Buyer
    harmless against, any liability, loss or expense (including, without
    limitation, attorneys' fees and out of pocket expenses) arising in
    connection with any such claim.

        m. NO STRICT CONSTRUCTION. The language used in this Agreement will be
    deemed to be the language chosen by the parties to express their mutual
    intent, and no rules of strict construction will be applied against any
    party.

        n. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The
    remedies provided in this Agreement shall be cumulative and in addition to
    all other remedies available under this Agreement, at law or in equity
    (including a decree of specific performance and/or other injunctive relief),
    no remedy contained herein shall be deemed a waiver of compliance with the
    provisions giving rise to such remedy and nothing herein shall limit the
    Buyer's right to pursue actual damages for any failure by the Company to
    comply with the terms of this Agreement. The Company acknowledges that a
    breach by it of its obligations hereunder will cause irreparable harm to the
    Buyer and that the remedy at law for any such breach may be inadequate. The
    Company therefore agrees that, in the event of any such breach or threatened
    breach, the Buyer shall be entitled, in addition to all other available
    remedies, to an injunction restraining any breach, without the necessity of
    showing economic loss and without any bond or other security being required.

        o. CHANGES TO THE TERMS OF THIS AGREEMENT. This Agreement and any
    provision hereof may only be amended by an instrument in writing signed by
    the Company and the Buyer. The term "Agreement" and all reference thereto,
    as used throughout this instrument, shall mean this

                                       18
<PAGE>
    instrument as originally executed, or if later amended or supplemented, then
    as so amended or supplemented.

        p. ENFORCEMENT AND OTHER COSTS. If: (i) this Agreement is placed in the
    hands of an attorney for enforcement or is enforced through any legal
    proceeding; or (ii) an attorney is retained to represent the Buyer in any
    bankruptcy, reorganization, receivership or other proceedings affecting
    creditors' rights and involving a claim under this Agreement; or (iii) an
    attorney is retained to represent the Buyer in any other proceedings
    whatsoever in connection with this Agreement, then the Company shall pay to
    the Buyer all reasonable cost and expenses including attorneys' fees
    incurred in connection therewith, in addition to all other amounts due
    hereunder.

        q. FAILURE OR INDULGENCE NOT WAIVER. No failure or delay in the exercise
    of any power, right or privilege hereunder shall operate as a waiver
    thereof, nor shall any single or partial exercise of any such power, right
    or privilege preclude other or further exercise thereof or of any other
    right, power or privilege.

                                  * * * * * *

    IN WITNESS WHEREOF, the Buyer and the Company have caused this Common Stock
Purchase Agreement to be duly executed as of the date first written above.

                                          THE COMPANY:

                                          ADAM.COM, INC.

                                          By:___________________
                                          Name:
                                          Title:

                                          BUYER:

                                          FUSION CAPITAL FUND II, LLC
                                          BY: FUSION CAPITAL PARTNERS II, LLC
                                          BY: SGM HOLDINGS CORP.

                                          By:___________________
                                          Name: Steven G. Martin
                                          Title: President

                                       19
<PAGE>
                                    ANNEX A
                   COMMON STOCK PURCHASE TERMS AND CONDITIONS

    1.  PAYMENTS.  The Buyer agrees to make payments to the Company for the
purchase of shares of Common Stock as described in Section 2(b) hereof. All
payments made hereunder shall be made in lawful money of the United States of
America by check or wire transfer of immediately available funds to such account
as the Company may from time to time designate by written notice in accordance
with the provisions hereof. Whenever any amount expressed to be due by the terms
hereof is due on any day which is not a Trading Day, the same shall instead be
due on the next succeeding day which is a Trading Day.

    2.  PURCHASE OF AVAILABLE AMOUNT.  The Buyer shall purchase shares of Common
Stock on the terms and conditions set forth in this Section up to the Available
Amount.

        (a)  CERTAIN DEFINED TERMS.  For purposes of these Common Stock Purchase
    Terms and Conditions, the following terms shall have the following meanings:

           (i) "AVAILABLE AMOUNT" means initially Six Million Dollars
       ($6,000,000) in the aggregate in respect of the First Tranche and on and
       after the Second Commencement Date, an additional Six Million Dollars
       ($6,000,000) in the aggregate in respect of the Second Tranche, provided
       that in each case, such amount shall be reduced by the Purchase Amount as
       the Buyer purchases shares of Common Stock pursuant to Section 2 hereof.

           (ii) "CLOSING BID PRICE" means, for any security as of any date, the
       last closing bid price for such security on the Principal Market as
       reported by Bloomberg Financial Markets ("BLOOMBERG"), or, if the
       Principal Market is not the principal securities exchange or trading
       market for such security, the last closing bid price of such security on
       the principal securities exchange or trading market where such security
       is listed or traded as reported by Bloomberg.

          (iii) "CLOSING SALE PRICE" means, for any security as of any date, the
       last closing trade price for such security on the Principal Market as
       reported by Bloomberg, or, if the Principal Market is not the principal
       securities exchange or trading market for such security, the last closing
       trade price of such security on the principal securities exchange or
       trading market where such security is listed or traded as reported by
       Bloomberg.

           (iv) "FIXED PURCHASE PRICE" means $16.50 appropriately adjusted for
       any reorganization, recapitalization, non-cash dividend, stock split or
       other similar transaction.

           (v) "MANDATORY PURCHASE RIGHTS" means the mandatory purchase rights
       of the Company pursuant to Section 2(d)(iii).

           (vi) "MATURITY DATE" means the date that is six months from the First
       Commencement Date, or if the Second Commencement Date occurs, the date
       that is six months from the Second Commencement Date, which such date may
       be extended in each case by up to an additional six months by the
       Company, in its sole discretion, by written notice to the Buyer.

          (vii) "MONTHLY BASE AMOUNT" means One Million Dollars ($1,000,000) per
       Monthly Period.

         (viii) "MONTHLY PURCHASE AMOUNT" means a portion of the Available
       Amount equal to the Monthly Base Amount for such Monthly Period plus the
       Monthly Base Amount for any prior Monthly Periods which has not been
       previously used to purchase Common Stock pursuant to Section 2 hereof;
       PROVIDED, HOWEVER, that to the extent that the Company exercises its
       Mandatory Purchase Rights, the Monthly Purchase Amount for any remaining
       Monthly Periods shall be reduced by any amount subject to the Mandatory
       Purchase Rights in reverse

                                       20
<PAGE>
       chronological order (I.E., the Monthly Purchase Amount for the last
       remaining Monthly Period shall be reduced first); provided further, on or
       after the Maturity Date, the Monthly Purchase Amount shall thereafter be
       the entire remaining Available Amount.

           (ix) "MONTHLY PERIOD" means each successive 30 calendar day period
       commencing with the First Commencement Date.

           (x) "PERSON" means an individual or entity including any a limited
       liability company, a partnership, a joint venture, a corporation, a
       trust, an unincorporated organization and a government or any department
       or agency thereof.

           (xi) "PRINCIPAL MARKET" means The Nasdaq National Market.

          (xii) "PURCHASE AMOUNT" means the portion of the Available Amount
       submitted in a Purchase Notice to be used to purchase Common Stock
       pursuant to Section 2 hereof.

         (xiii) "PURCHASE DATE" means the actual date that the Buyer submits a
       Purchase Notice to the Company to purchase Common Stock hereunder so long
       as the Buyer shall transmit by facsimile (or otherwise deliver) to the
       Company on or prior to 11:59 p.m., Central Time on such date.

          (xiv) "PURCHASE PRICE" means, as of any Purchase Date or other date of
       determination, the lower of the (A) Fixed Purchase Price and the
       (B) Variable Purchase Price, each in effect as of such date.

          (xv) "SALE PRICE" means, for any security as of any date, the trade
       price for such security on the Principal Market as reported by Bloomberg,
       or, if the Principal Market is not the principal securities exchange or
       trading market for such security, the trade price of such security on the
       principal securities exchange or trading market where such security is
       listed or traded as reported by Bloomberg.

          (xvi) "VARIABLE PURCHASE PRICE" means, as of any Purchase Date or
       other date of determination, the lower of: (A) the lowest Sale Price of
       the Common Stock on the Purchase Date or such other date of determination
       and (B) the arithmetic average of any two (2) Closing Bid Prices for the
       Common Stock, selected by the Buyer, during the ten (10) consecutive
       Trading Days ending on the Trading Day immediately preceding such
       Purchase Date or other date of determination (to be appropriately
       adjusted for any reorganization, recapitalization, non-cash dividend,
       stock split or other similar transaction occurring during such ten
       (10) Trading Days).

        (b)  BUYER'S PURCHASE RIGHTS AND OBLIGATIONS.  Subject to the provisions
    of Sections 2(d) and 7 below, during each Monthly Period, the Buyer shall
    purchase shares of Common Stock equal to the Monthly Purchase Amount for
    such Monthly Period in accordance with Section 2(e), at the Purchase Rate
    (as defined below). Subject to the provisions of Sections 2(d) and 7 below,
    at any time on or after the Maturity Date, the Buyer shall have the right to
    purchase shares of Common Stock up to the entire remaining Available Amount
    in accordance with Section 2(e), at the Purchase Rate. Within three
    (3) Trading Days of receipt of Purchase Shares, the Buyer shall pay to the
    Company an amount equal to the Purchase Amount with respect to such Purchase
    Shares as full payment for the Purchase Shares so received. The Company
    shall not issue any fraction of a share of Common Stock upon any purchase.
    All shares of Common Stock (including fractions thereof) issuable upon a
    purchase under this Agreement shall be aggregated for purposes of
    determining whether the purchase would result in the issuance of a fraction
    of a share of Common Stock. If, after the aforementioned aggregation, the
    issuance would result in the issuance of a fraction of a share of Common
    Stock, the Company shall round such fraction of a share of Common Stock up
    or down to the nearest whole share.

                                       21
<PAGE>
        (c)  PURCHASE RATE.  The number of shares of Common Stock issuable upon
    purchase of a Purchase Amount of this Common Stock Purchase Agreement
    pursuant to Section 2(b) shall be determined according to the following
    formula (the "PURCHASE RATE"):

                                Purchase Amount
                                ---------------

                                 Purchase Price

        (d)  LIMITATIONS ON PURCHASE.

           (i)  LIMITATION ON BENEFICIAL OWNERSHIP.  The Company shall not
       effect any purchase under this Agreement and the Buyer shall not purchase
       shares of Common Stock under this Agreement pursuant to Section 2(b) to
       the extent that after giving effect to such purchase such Person
       (together with such Person's affiliates) would beneficially own in excess
       of 4.99% of the outstanding shares of the Common Stock following such
       purchase. For purposes of the foregoing sentence, the number of shares of
       Common Stock beneficially owned by a Person and its affiliates or
       acquired by a Person and its affiliates, as the case may be, shall
       include the number of shares of Common Stock issuable upon a purchase
       under this Agreement with respect to which the determination is being
       made, but shall exclude the number of shares of Common Stock which would
       be issuable upon (i) a purchase of the remaining Available Amount which
       has not been submitted for purchase, and (ii) exercise or conversion of
       the unexercised or unconverted portion of any other securities of the
       Company (including, without limitation, any warrants) subject to a
       limitation on conversion or exercise analogous to the limitation
       contained herein beneficially owned by such Person and its affiliates.
       For purposes of this Section, in determining the number of outstanding
       shares of Common Stock the Buyer may rely on the number of outstanding
       shares of Common Stock as reflected in (1) the Company's most recent
       Form 10-Q or Form 10-K, as the case may be, (2) a more recent public
       announcement by the Company or (3) any other written communication by the
       Company or its transfer agent setting forth the number of shares of
       Common Stock outstanding. Upon the reasonable written or oral request of
       the Buyer, the Company shall promptly confirm orally and in writing to
       the Buyer the number of shares Common Stock then outstanding. In any
       case, the number of outstanding shares of Common Stock shall be
       determined after giving effect to any purchases under this Agreement by
       the Buyer since the date as of which such number of outstanding shares of
       Common Stock was reported. Except as otherwise set forth herein, for
       purposes of this Section 2(d)(i), beneficial ownership shall be
       determined in accordance with Section 13(d) of the Securities Exchange
       Act of 1934, as amended.

           (ii)  COMPANY'S RIGHT TO SUSPEND PURCHASES.  The right of the Buyer
       to purchase shares of Common Stock under this Agreement pursuant to this
       Section 2 shall be limited as set forth below. If on any Trading Day the
       Closing Sale Price of the Common Stock is below the Fixed Purchase Price,
       the Company shall have three (3) Trading Days to give written notice (a
       "PURCHASE SUSPENSION NOTICE") to the Buyer suspending any and all
       purchases. The Purchase Suspension Notice shall be effective only for
       purchases which have a Purchase Date later than three (3) Trading Days
       after receipt of the Purchase Suspension Notice by the Buyer. Any
       purchases submitted by the Buyer which have a Purchase Date not later
       than three (3) Trading Days after receipt by the Buyer of the Company's
       Purchase Suspension Notice must be honored by the Company as otherwise
       provided herein. Such purchase suspension shall continue in effect until
       the earlier of: (A) revocation in writing by the Company, at its sole
       discretion; or (B) such time as the Sale Price of the Common Stock is
       above the Fixed Purchase Price.

           (iii)  COMPANY'S MANDATORY PURCHASE RIGHTS.  If (A) the Closing Sale
       Price of the Common Stock on each of the five (5) Trading Days
       immediately prior to the first Trading

                                       22
<PAGE>
       Day of any Monthly Period is at least twenty-five percent (25%) of the
       Fixed Purchase Price and (B) no Event of Default has occurred, then the
       Company shall have the right, so long as no Event of Default has occurred
       and so long as the Sale Price of the Common Stock remains at least
       twenty-five percent (25%) of the Fixed Purchase Price, on or prior to the
       first Trading Day of such Monthly Period, by delivering written notice (a
       "MANDATORY PURCHASE NOTICE") to the Buyer to require that the Buyer
       purchase at the Purchase Rate such Available Amount as specified by the
       Company in the Mandatory Purchase Notice during the next two Monthly
       Periods on such Trading Days during such Monthly Periods as the Buyer
       shall determine. The Company acknowledges and agrees that the Company's
       mandatory purchase rights represent an agreement by the Buyer to extend
       financial accommodations to the Company. Accordingly, it shall be a
       condition to the exercise of the Company's mandatory purchase rights that
       no Event of Default shall have occurred, and the Company's delivery of a
       Mandatory Purchase Notice shall be deemed a representation to the Buyer
       that no Event of Default has occurred. The Company may revoke a Mandatory
       Purchase Notice, in whole or in part, by delivering written notice
       thereof to the Buyer (a "REVOCATION OF MANDATORY PURCHASE NOTICE"). A
       Revocation of Mandatory Purchase Notice shall be effective only as to
       purchases which are in excess of the Monthly Purchase Amount and which
       have a Purchase Date later than three (3) Trading Days after receipt by
       the Buyer of the Revocation of Mandatory Purchase Notice. Any purchases
       submitted by the Buyer which have a Purchase Date not later than three
       (3) Trading Days after receipt by the Buyer of the Revocation of
       Mandatory Purchase Notice must be honored by the Company as otherwise
       provided herein.

        (e)  MECHANICS OF PURCHASING.  The purchase of shares of Common Stock
    under this Agreement shall be conducted in the following manner:

           (i)  BUYER'S DELIVERY REQUIREMENTS.  To purchase shares of Common
       Stock under this Agreement on any date, the Buyer hereof shall transmit
       by facsimile (or otherwise deliver) on or prior to 11:59 p.m., Central
       Time on such date, a copy of a fully executed notice of purchase in the
       form attached hereto as Exhibit I (the "PURCHASE NOTICE") to the Company.

           (ii)  COMPANY'S RESPONSE.  Upon receipt by the Company of a copy of a
       Purchase Notice, the Company shall as soon as practicable, but in no
       event later than one (1) Trading Day after receipt of such Purchase
       Notice, send via facsimile (or otherwise deliver), a confirmation of
       receipt of such Purchase Notice in the form attached hereto as
       Exhibit II (a "COMPANY CONFIRMATION OF PURCHASE NOTICE") to (1) the Buyer
       and (2) along with a copy of the Purchase Notice, the Company's
       designated transfer agent (the "TRANSFER AGENT"), which confirmation
       shall constitute an irrevocable instruction to the Transfer Agent to
       process such Purchase Notice in accordance with the terms herein. Upon
       receipt by the Transfer Agent of a copy of the executed Purchase Notice
       and a copy of the applicable Company Confirmation of Purchase Notice, the
       Transfer Agent shall, on the first (1st) Trading Day following the date
       of receipt of the Company Confirmation of Purchase Notice, (A) use its
       best efforts to issue and surrender to a common carrier for overnight
       delivery to the address as specified in the Purchase Notice, a
       certificate, registered in the name of the Buyer or its designee, for the
       number of shares of Common Stock to which the Buyer shall be entitled or
       (B) provided the Transfer Agent is participating in The Depository Trust
       Company ("DTC") Fast Automated Securities Transfer Program, upon the
       request of the Buyer, credit such aggregate number of shares of Common
       Stock to which the Buyer shall be entitled to the Buyer's or its
       designee's balance account with DTC through its Deposit Withdrawal Agent
       Commission system.

           (iii)  DISPUTE RESOLUTION.  In the case of a dispute as to the
       determination of the Purchase Price or the arithmetic calculation of the
       Purchase Rate, the Company shall instruct the Transfer Agent to issue to
       the Buyer the number of shares of Common Stock that is not disputed and
       shall submit the disputed determinations or arithmetic calculations to
       the Buyer

                                       23
<PAGE>
       via facsimile within one (1) Trading Day of receipt of the Buyer's
       Purchase Notice. If the Buyer and the Company are unable to agree upon
       the determination of the Purchase Price or arithmetic calculation of the
       Purchase Rate within one (1) Trading Day of such disputed determination
       or arithmetic calculation being submitted to the Buyer, then the Company
       shall within one (1) Trading Day submit via facsimile (A) the disputed
       determination of the Purchase Price to an independent, reputable
       investment bank selected by the Company and approved by the Buyer or
       (B) the disputed arithmetic calculation of the Purchase Rate to the
       Company's independent, outside accountant. The Company shall cause the
       investment bank or the accountant, as the case may be, to perform the
       determinations or calculations and notify the Company and the Buyer of
       the results no later than the fifth (5th) day after the date it receives
       the disputed determinations or calculations. Such investment bank's or
       accountant's determination or calculation, as the case may be, shall be
       binding upon all parties absent manifest error.

           (iv)  RECORD HOLDER.  The person or persons entitled to receive the
       shares of Common Stock issuable upon a purchase under this Agreement
       shall be treated for all purposes as the record holder or holders of such
       shares of Common Stock on the Purchase Date.

           (v)  COMPANY'S FAILURE TO TIMELY DELIVER SHARES.  If within five
       (5) Trading Days after the Company's receipt of a copy of the Purchase
       Notice (subject to extension in accordance with Section 2(e)(iii) for a
       good faith dispute made in accordance with the terms of
       Section 2(e)(iii)) (the "SHARE DELIVERY PERIOD") the Transfer Agent shall
       fail to issue a certificate to the Buyer or credit the Buyer's balance
       account with DTC for the number of shares of Common Stock to which such
       Buyer is entitled upon such Buyer's purchase of the Available Amount (a
       "PURCHASE FAILURE"), in addition to all other available remedies which
       such Buyer may pursue under this Common Stock Purchase Agreement
       (including indemnification obligations of the Company herein), the
       Company shall pay additional damages to the Buyer on each day after such
       fifth (5th) Trading Day such purchase is not timely effected in an amount
       equal to 1.0% of the product of (I) the number of shares of Common Stock
       not issued to the Buyer on a timely basis pursuant to
       Section 2(e)(ii) and to which such Buyer is entitled and (II) the Closing
       Sale Price of the Common Stock on the last possible date which the
       Company could have issued such Common Stock to the Buyer without
       violating Section 2(e)(ii).

           (vi)  BOOK-ENTRY.  Notwithstanding anything to the contrary set forth
       herein, upon purchase of any portion of the Available Amount in
       accordance with the terms hereof, the Buyer shall not be required to
       physically surrender this Agreement to the Company. The Buyer and the
       Company shall each maintain records showing the remaining Available
       Amount and the dates and Purchase Amounts for each purchase or shall use
       such other method, reasonably satisfactory to the Buyer and the Company,
       so as not to require physical surrender of this Agreement upon each
       purchase. The Buyer and any assignee, by acceptance of this Agreement,
       acknowledge and agree that, by reason of the provisions of this
       paragraph, following purchase of any portion of the Available Amount, the
       remaining Available Amount under this Agreement shall be less than the
       aggregate Available Amount set forth on the face hereof.

        (f)  TAXES.  The Company shall pay any and all taxes that may be payable
    with respect to the issuance and delivery of Common Stock upon any purchases
    under this Agreement.

    3.  COMPANY'S TERMINATION RIGHTS.  Subject to the terms and conditions of
this Section, at any time after the First Commencement Date, and so long as the
Company has provided appropriate notice as described below, if during any ten
(10) consecutive Trading Days the Closing Sale Price of the Common Stock is
below the Fixed Purchase Price for each of such ten (10) Trading Days, the
Company shall

                                       24
<PAGE>
have three (3) Trading Days to give written notice (a "COMPANY TERMINATION
NOTICE") to the Buyer electing to terminate this Agreement without any liability
or payment to the Buyer (a "COMPANY TERMINATION"). Any purchases submitted by
the Buyer which have a Purchase Date which is not later than three (3) Trading
Days after receipt by the Buyer of the Company Termination Notice, must be
honored by the Company as otherwise provided herein. No such termination of this
Agreement shall effect the Company's or the Buyer's obligations under this
Agreement with respect to pending purchases and the Company and the Buyer shall
complete their respective obligations with respect to any pending purchases
under this Agreement.

    4.  DEFAULTS AND REMEDIES.

        (a)  EVENTS OF DEFAULT.  An "EVENT OF DEFAULT" shall be deemed to have
    occurred at such time as any of the following events:

           (i) while any Registration Statement is required to be maintained
       effective pursuant to the terms of the Registration Rights Agreement
       entered into by the Company and the Buyer (the "REGISTRATION RIGHTS
       AGREEMENT"), the effectiveness of such Registration Statement lapses for
       any reason (including, without limitation, the issuance of a stop order)
       or is unavailable to the Buyer for resale of all of the Registrable
       Securities (as defined in the Registration Rights Agreement) in
       accordance with the terms of the Registration Rights Agreement, and such
       lapse or unavailability continues for a period of ten (10) consecutive
       Trading Days or for more than an aggregate of thirty (30) Trading Days in
       any 365-day period;

           (ii) the suspension from trading or failure of the Common Stock to be
       listed on the Principal Market for a period of ten (10) consecutive
       Trading Days or for more than an aggregate of thirty (30) Trading Days in
       any 365-day period;

          (iii) the failure of the Company or the Common Stock to fully meet the
       requirements for continued listing on the Principal Market for a period
       of ten (10) consecutive Trading Days or for more than an aggregate of
       thirty (30) Trading Days in any 365-day period;

           (iv) the Company's or the Transfer Agent's notice to the Buyer,
       including by way of public announcement, at any time, of its intention
       not to comply with a proper request for purchase of the Available Amount
       under this Agreement into shares of Common Stock that is tendered in
       accordance with the provisions of this Agreement, the failure of the
       Company to deliver a Company Confirmation of Purchase Notice to the Buyer
       and to the Transfer Agent in accordance with the provisions of this
       Agreement within two (2) Trading Days after the receipt by the Company of
       a Purchase Notice (subject to extension in accordance with
       Section 2(e)(iii) for a good faith dispute made in accordance with the
       terms of Section 2(e)(iii)); or the failure of the Transfer Agent to
       comply with a Company Confirmation of Purchase Notice tendered in
       accordance with the provisions of this Agreement within five (5) Trading
       Days after the receipt by the Company of the Purchase Notice;

           (v) if at any time the Exchange Cap (as defined in Section 7) is
       reached;

           (vi) the Company breaches any representation, warranty, covenant or
       other term or condition of this Common Stock Purchase Agreement, the
       Registration Rights Agreement, or any other agreement, document,
       certificate or other instrument delivered in connection with the
       transactions contemplated thereby and hereby if such breach could have a
       Material Adverse Effect and except, in the case of a breach of a covenant
       which is reasonably curable, only if such breach continues for a period
       of at least ten (10) Trading Days;

          (vii) any payment default under or acceleration prior to maturity of
       any mortgage, indenture or instrument under which there may be issued or
       by which there may be secured

                                       25
<PAGE>
       or evidenced any indebtedness for money borrowed by the Company or for
       money borrowed the repayment of which is guaranteed by the Company,
       whether such indebtedness or guarantee now exists or shall be created
       hereafter which is in excess of $1,000,000;

         (viii) if any Person commences a proceeding against the Company
       pursuant to or within the meaning of any Bankruptcy Law (as defined
       below);

           (ix) if the Company pursuant to or within the meaning of any
       Bankruptcy Law; (A) commences a voluntary case, (B) consents to the entry
       of an order for relief against it in an involuntary case, (C) consents to
       the appointment of a Custodian of it or for all or substantially all of
       its property, (D) makes a general assignment for the benefit of its
       creditors, (E) becomes insolvent, or (F) is generally unable to pay its
       debts as the same become due; or

           (x) a court of competent jurisdiction enters an order or decree under
       any Bankruptcy Law that; (A) is for relief against the Company in an
       involuntary case, (B) appoints a Custodian of the Company or for all or
       substantially all of its property, or (C) orders the liquidation of the
       Company or any subsidiary.

       The term "BANKRUPTCY LAW" means Title 11, U.S. Code, or any similar
       federal or state law for the relief of debtors. The term "CUSTODIAN"
       means any receiver, trustee, assignee, liquidator or similar official
       under any Bankruptcy Law.

        (b)  REMEDIES.  If an Event of Default occurs from events described in
    clauses (i) through and (ix) of Section 4(a), the Buyer may terminate this
    Agreement without any liability or payment to the Company. In the case of an
    Event of Default arising from events described in clause (x) of
    Section 4(a), this Agreement shall automatically terminate with out any
    liability or payment to any party without further action or notice. However,
    notwithstanding the forgoing, in case of any such termination, no such
    termination of this Agreement shall effect the Company's or the Buyer's
    obligations under this Agreement with respect to pending purchases and the
    Company and the Buyer shall complete their respective obligations with
    respect to any pending purchases under this Agreement.

    5.  BUYER'S RIGHT TO TERMINATE AGREEMENT.  If by the Maturity Date, for any
reason or for no reason the full Available Amount under this Agreement has not
been used to purchase shares of Common Stock as provided for in Section 2 of
this Agreement, the Buyer shall have the right to terminate this Agreement
without any liability or payment to the Company. No such termination of this
Agreement shall effect the Company's or the Buyer's obligations under this
Agreement with respect to pending purchases and the Company and the Buyer shall
complete their respective obligations with respect to any pending purchases
under this Agreement.

    6.  RESERVATION OF SHARES.  The Company shall, so long as any Available
Amount is outstanding, reserve and keep available out of its authorized and
unissued Common Stock, solely for the purpose of effecting purchases of under
this Agreement, such number of shares of Common Stock as shall from time to time
be sufficient to effect the purchase of the entire remaining Available Amount
under this Agreement without regard to any restrictions or limitations on
purchases.

    7.  EXCHANGE CAP; LIMITATION ON NUMBER OF PURCHASE SHARES.  The "Exchange
Cap" shall be deemed to be reached at such time if, upon any Purchase Notice
submitted under this Agreement, the issuance of such shares of Common Stock
would exceed that number of shares of Common Stock which the Company may issue
under this Agreement without breaching the Company's obligations under the rules
or regulations of the Principal Market, in which case, the Company shall not be
obligated to issue any such shares of Common Stock.

                                       26
<PAGE>
                                   EXHIBIT I
                                   TO ANNEX A
                   COMMON STOCK PURCHASE TERMS AND CONDITIONS
                                 ADAM.COM, INC.
                            FORM OF PURCHASE NOTICE

    Reference is made to the Common Stock Purchase Agreement (the "COMMON STOCK
PURCHASE AGREEMENT") between ADAM.COM, INC. (the "COMPANY") and FUSION CAPITAL
FUND II, LLC dated             . In accordance with and pursuant to the Common
Stock Purchase Agreement, the undersigned hereby elects to purchase shares of
Common Stock, par value $               per share (the "COMMON STOCK"), of the
Company for the Available Amount indicated below of as of the date specified
below.

    Purchase Date:

    Remaining Available Amount

    PRIOR TO this purchase:

    Available Amount to be purchased:

    Remaining Available Amount

    AFTER this purchase:

    Please confirm the following information:

    Purchase Price per share:

    Fixed Purchase Price of $

    Low Sale Price on Date Hereof

    Average of 2/10 Commencement Bid Prices for ($) and ($)

    Number of shares of Common Stock to be issued:

    Please issue the shares of Common Stock in the following name and to the
following address:

    Issue to:

    Authorized Signature:

    Name:

    Title:

    Phone #:

    Broker DTC Participant Code:

    Account Number *:

    *NOTE THAT RECEIVING BROKER MUST INITIATE TRANSACTION ON DWAC SYSTEM.

                                       27
<PAGE>
                                   EXHIBIT I
                                   TO ANNEX A
                   COMMON STOCK PURCHASE TERMS AND CONDITIONS
                                 ADAM.COM, INC.
                            FORM OF PURCHASE NOTICE

    Reference is made to the Common Stock Purchase Agreement (the "COMMON STOCK
PURCHASE AGREEMENT") between ADAM.COM, INC. (the "COMPANY") and FUSION CAPITAL
FUND II, LLC dated             . In accordance with and pursuant to the Common
Stock Purchase Agreement, the undersigned hereby elects to purchase shares of
Common Stock, par value $               per share (the "COMMON STOCK"), of the
Company for the Available Amount indicated below of as of the date specified
below.

<TABLE>
<S>                               <C>
Purchase Date:
                                  ----------------------------------------------------

Remaining Available Amount
PRIOR TO this purchase:
                                  ----------------------------------------------------

Available Amount to be
purchased:
                                  ----------------------------------------------------

Remaining Available Amount
AFTER this purchase:
                                  ----------------------------------------------------
</TABLE>

Please confirm the following information:

<TABLE>
<S>        <C>
Purchase Price per share:
-----------------------------------------------------------------------

/ /        Fixed Purchase Price of $
/ /        Low Sale Price on Date Hereof
/ /        Average of 2/10 Commencement Bid Prices for ($) and ($)

Number of shares of Common Stock to be issued:
-----------------------------------------------------------------------
</TABLE>

Please issue the shares of Common Stock in the following name and to the
following address:

<TABLE>
<S>                               <C>
Issue to:                         ----------------------------------------------------
                                  ----------------------------------------------------
                                  ----------------------------------------------------

Authorized Signature:             ----------------------------------------------------
                                  Name: ----------------------------------------------
                                  Title:
                                  -----------------------------------------------
                                  Phone #: -------------------------------------------

Broker DTC Participant
Code:
                                  ----------------------------------------------------

Account Number *:
                                  ----------------------------------------------------
</TABLE>

    *NOTE THAT RECEIVING BROKER MUST INITIATE TRANSACTION ON DWAC SYSTEM.

                                       28
<PAGE>
                                   EXHIBIT II
                                   TO ANNEX A
                   COMMON STOCK PURCHASE TERMS AND CONDITIONS
                                 ADAM.COM, INC.
                FORM OF COMPANY CONFIRMATION OF PURCHASE NOTICE

    Reference is made to the Common Stock Purchase Agreement (the "COMMON STOCK
PURCHASE AGREEMENT") between ADAM.COM, INC. (the "COMPANY") and FUSION CAPITAL
FUND II, LLC dated             . In accordance with and pursuant to the Common
Stock Purchase Agreement, the undersigned hereby confirms and authorizes the
issuance of shares of Common Stock, par value $           per share (the "COMMON
STOCK") of the Company, in connection with the Purchase Notice (as defined in
the Common Stock Purchase Agreement) attached hereto. Specifically, the Company
hereby confirms the following information:

<TABLE>
<S>                               <C>
Purchase Date:
                                  ----------------------------------------------------

Remaining Available Amount
PRIOR TO this purchase:
                                  ----------------------------------------------------

Available Amount to be
purchased:
                                  ----------------------------------------------------

Remaining Available Amount
AFTER this purchase:
                                  ----------------------------------------------------

Purchase Price per share:
                                  ----------------------------------------------------

Number of shares of Common
Stock to be issued:
                                  ----------------------------------------------------
</TABLE>

The shares of Common Stock shall be issued in the name and to the address as set
forth in the applicable Purchase Notice.

<TABLE>
<S>                               <C>
Authorized Signature              ----------------------------------------------------
                                  Name: ----------------------------------------------
                                  Title:
                                  -----------------------------------------------
                                  Phone #: -------------------------------------------
                                  Fax #: ----------------------------------------------
</TABLE>

                                       29

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]