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                                                                    EXHIBIT 10.1

                          REGISTRATION RIGHTS AGREEMENT

        REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of January
18, 2000, by and among Auspex Systems, Inc., a Delaware corporation, with
headquarters located at 2300 Central Expressway, Santa Clara, California
95050-2515 (the "COMPANY"), and the undersigned Buyers (individually a "BUYER"
and collectively the "BUYERS").

        WHEREAS:

        A. In connection with the Securities Purchase Agreement of even date
herewith by and among the parties hereto (the "SECURITIES PURCHASE AGREEMENT"),
the Company has agreed, upon the terms and subject to the conditions of the
Securities Purchase Agreement, to issue and sell to the Buyers (i) 25,000 shares
of the Company's Series B Convertible Preferred Stock, par value $0.001 per
share (the "PREFERRED SHARES"), which will be convertible into shares (as
converted, the "CONVERSION SHARES") of the Company's common stock, par value
$0.001 per share (the "COMMON STOCK"), in accordance with the terms of the
Company's Certificate of Designations, Preferences and Rights of its Series B
Convertible Preferred Stock (the "CERTIFICATE OF DESIGNATIONS"), and (ii)
warrants to purchase shares of Common Stock (the "WARRANTS" and, as exercised,
the "WARRANT SHARES").

        B. To induce the Buyers to execute and deliver the Securities Purchase
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute (collectively, the "1933 ACT"), and
applicable state securities laws.

        NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and each
of the Buyers hereby agree as follows:

        1. DEFINITIONS.

               As used in this Agreement, the following terms shall have the
following meanings:

               a. "INVESTOR" means a Buyer and any transferee or assignee
thereof to whom a Buyer assigns its rights under this Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section
9.

               b. "PERSON" means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization, a government or any department or agency thereof.

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               c. "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
registration effected by preparing and filing one or more Registration
Statements (as defined below) in compliance with the 1933 Act and pursuant to
Rule 415 under the 1933 Act or any successor rule providing for the offering for
resale of securities on a continuous or delayed basis ("RULE 415"), and the
declaration or ordering of effectiveness of such Registration Statement(s) by
the United States Securities and Exchange Commission (the "SEC").

               d. "REGISTRABLE SECURITIES" means (i) the Conversion Shares
issued or issuable upon conversion of the Preferred Shares, (ii) the Dividend
Shares (as defined in the Certificate of Designations) relating to the Preferred
Shares, (iii) Warrant Shares issued or issuable upon exercise of the Warrants,
and (iv) any shares of capital stock issued or issuable with respect to the
Conversion Shares, the Preferred Shares, the Dividend Shares relating to the
Preferred Shares, the Warrant Shares or the Warrants as a result of any stock
split, stock dividend, recapitalization, exchange or similar event or otherwise,
without regard to any limitations on conversions of the Preferred Shares or
exercises of Warrants; provided, however, that "Registrable Securities" shall
not include any securities that have been sold pursuant to a Registration
Statement or pursuant to Rule 144 promulgated under the 1933 Act, or any similar
rule or regulation of the SEC that may at any time permit the Investors to sell
securities of the Company to the public without registration ("RULE 144") .

               e. "REGISTRATION STATEMENT" means a registration statement or
registration statements of the Company filed under the 1933 Act covering the
Registrable Securities.

        2. REGISTRATION.

               a. Mandatory Registration. The Company shall prepare, and, as
soon as practicable, but in no event later than the date which is 30 days after
the Closing Date (as defined in the Securities Purchase Agreement) (the "FILING
DEADLINE"), file with the SEC a Registration Statement or Registration
Statements (as necessary) on Form S-3 covering the resale of all of the
Registrable Securities. In the event that Form S-3 is unavailable for such a
registration, the Company shall use such other form as is available for such a
registration, subject to the provisions of Section 2(d). Any first Registration
Statement prepared pursuant hereto shall register for resale at least that
number of shares of Common Stock equal to the sum of (y) the product of (i) 2
and (ii) the number of Conversion Shares issuable upon conversion of the
Preferred Shares (without regard to any limitations on conversions) as of the
date immediately preceding the date the Registration Statement is initially
filed with the SEC, subject to adjustment as provided in Section 2(f), plus (z)
100% of the number of Warrant Shares issuable upon exercise of the Warrants
(without regard to any limitations on exercise) as of the date immediately
preceding the date the Registration Statement is initially filed with the SEC,
subject to adjustment as provided in Section 2(f). The Company shall cause such
Registration Statement to be declared effective by the SEC as soon as possible,
but in no event later than the date which is 120 days after the Closing Date
(the "EFFECTIVENESS DEADLINE").

               b. Allocation of Registrable Securities. The initial number of
Registrable Securities included in any Registration Statement and each increase
in the number of Registrable

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Securities included therein shall be allocated pro rata among the Investors
based on the number of Registrable Securities held by each Investor at the time
the Registration Statement covering such initial number of Registrable
Securities or increase thereof is declared effective by the SEC. In the event
that an Investor sells or otherwise transfers any of such Investor's Registrable
Securities, each transferee shall be allocated a pro rata portion of the then
remaining number of Registrable Securities included in such Registration
Statement for such transferor. Any shares of Common Stock included in a
Registration Statement and which remain allocated to any Person which ceases to
hold any Registrable Securities covered by such Registration Statement shall be
allocated to the remaining Investors, pro rata based on the number of
Registrable Securities then held by such Investors which are covered by such
Registration Statement.

               c. Legal Counsel. Subject to Section 5 hereof, the Buyers holding
a majority of the Registrable Securities shall have the right to select one
legal counsel to review and oversee any offering pursuant to this Section 2
("LEGAL COUNSEL"), which shall be Katten Muchin & Zavis or such other counsel as
thereafter designated by the holders of a majority of Registrable Securities.
The Company shall reasonably cooperate with Legal Counsel in performing the
Company's obligations under this Agreement.

               d. Ineligibility for Form S-3. In the event that Form S-3 is not
available for the registration of the resale of Registrable Securities
hereunder, the Company shall (i) register the resale of the Registrable
Securities on another appropriate form and (ii) undertake to register the resale
of the Registrable Securities on Form S-3 as soon as such form is available,
provided that the Company shall maintain the effectiveness of the Registration
Statement then in effect until such time as a Registration Statement on Form S-3
covering the Registrable Securities has been declared effective by the SEC.

               e. Effect of Failure to File and Obtain and Maintain
Effectiveness of Registration Statement. If (i) a Registration Statement
covering all the Registrable Securities and required to be filed by the Company
pursuant to this Agreement is not (A) filed with the SEC on or before the
applicable Filing Deadline or (B) declared effective by the SEC on or before the
applicable Effectiveness Deadline or (ii) on any day after the Registration
Statement has been declared effective by the SEC, sales of all the Registrable
Securities required to be included on such Registration Statement cannot be made
pursuant to the Registration Statement (including, without limitation, because
of a failure to keep the Registration Statement effective, to disclose such
information as is necessary for sales to be made pursuant to the Registration
Statement, to register sufficient shares of Common Stock), then, as partial
relief for the damages to any holder by reason of any such delay in or reduction
of its ability to sell the underlying shares of Common Stock (which remedy shall
not be exclusive of any other remedies available at law or in equity), the
Company shall pay to each holder of Preferred Shares an amount in cash per
Preferred Share held equal to the product of (i) $1,000 multiplied by (ii) the
sum of (A) 0.015, if the Registration Statement is not filed by the Filing
Deadline, plus (B) 0.015, if the Registration Statement is not declared
effective by the Effectiveness Deadline, plus, (C) the product of (I) .0005
multiplied by (II) the sum of (x) the number of days after the Filing Deadline
that such Registration Statement is not filed with the SEC, plus (y) the number
of days after the Effectiveness Deadline that the Registration Statement is not
declared effective by the SEC, plus (z) the number of days after the
Registration Statement has been declared effective by the SEC that such
Registration Statement is

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not available for the sale of at least all the Registrable Securities required
to be included on such Registration Statement. The payments to which a holder
shall be entitled pursuant to this Section 2(e) are referred to herein as
"REGISTRATION DELAY PAYMENTS." Registration Delay Payments shall be paid on the
earlier of (I) the last day of the calendar month during which such Registration
Delay Payments are incurred and (II) the third business day after the event or
failure giving rise to the Registration Delayed Payments is cured. In the event
the Company fails to make Registration Delay Payments in a timely manner, such
Registration Delay Payments shall bear interest at the rate of 2.0% per month
(prorated for partial months) until paid in full.

               f. Sufficient Number of Shares Registered. In the event the
number of shares available under a Registration Statement filed pursuant to
Section 2(a) is insufficient to cover all of the Registrable Securities which
such Registration Statement is required to cover or an Investor's allocated
portion of the Registrable Securities pursuant to Section 2(b), the Company
shall amend the Registration Statement, or file a new Registration Statement (on
the short form available therefor, if applicable), or both, so as to cover at
least that number of shares of Common Stock equal to the sum of (x) the product
of (i) 2 and (ii) the number of Conversion Shares issuable upon conversion of
the Preferred Shares (without regard to any limitations on conversions) as of
the date immediately preceding the date such amendment or new Registration
Statement is filed with the SEC, plus (y) the number of Warrant Shares issuable
upon exercise of the Warrants (without regard to any limitations on exercise )
as of the date immediately preceding the date such amendment or new Registration
Statement is filed with the SEC, plus (z) the number of Conversion Shares and
Warrant Shares held by the Investors as of the date immediately preceding the
date such amendment or new Registration Statement is filed with the SEC , in
each case, as soon as practicable, but in any event not later than fifteen (15)
business days after the necessity therefor arises. The Company shall cause such
amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof. For purposes of the foregoing
provision, the number of shares available under a Registration Statement shall
be deemed "insufficient to cover all of the Registrable Securities" if the
number of Registrable Securities issued or issuable upon conversion of the
Preferred Shares and exercise of the Warrants covered by such Registration
Statement is greater than the sum of (a) the quotient determined by dividing (i)
the number of shares of Common Stock available for resale under the Registration
Statement to cover shares issued or issuable upon conversion of the Preferred
Shares by (ii) 1.5 and (b) the number of shares of Common Stock available for
resale under the Registration Statement to cover shares issued or issuable upon
exercise of the Warrants. For purposes of the calculation set forth in the
foregoing sentence, any restrictions on the convertibility of the Preferred
Shares or exercise of the Warrants shall be disregarded and such calculation
shall assume that the Preferred Shares are then convertible into, and the
Warrants are then exercisable for, shares of Common Stock at the then prevailing
Conversion Rate (as defined in the Certificate of Designations) or Exercise
Price (as defined in the Warrants), respectively.

        3. RELATED OBLIGATIONS.

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        At such time as the Company is obligated to file a Registration
Statement with the SEC pursuant to Section 2(a) or 2(f), the Company will effect
the registration of the Registrable Securities in accordance with the intended
method of disposition thereof and, pursuant thereto, the Company shall have the
following obligations:

               a. The Company shall promptly prepare and file with the SEC a
Registration Statement with respect to the applicable Registrable Securities
(but in no event later than the Filing Deadline) and cause such Registration
Statement relating to the Registrable Securities to become effective as soon as
practicable after such filing (but in no event later than the applicable
Effectiveness Deadline). The Company shall keep each Registration Statement
effective pursuant to Rule 415 at all times until the earlier of (i) the date as
of which the Investors may sell all of the Registrable Securities covered by
such Registration Statement without restriction pursuant to Rule 144(k)
promulgated under the 1933 Act (or successor thereto) or (ii) the date on which
the Investors shall have sold all the Registrable Securities covered by such
Registration Statement (the "REGISTRATION Period"), which Registration Statement
(including any amendments or supplements thereto and prospectuses contained
therein) shall not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading. The Company shall submit to the SEC, within three business days
after the Company learns that no review of a particular Registration Statement
will be made by the staff of the SEC or that the staff has no further comments
on the Registration Statement, as the case may be, a request for acceleration of
effectiveness of such Registration Statement to a time and date not later than
48 hours after the submission of such request.

               b. The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a
Registration Statement and the prospectus used in connection with such
Registration Statement, which prospectus is to be filed pursuant to Rule 424
promulgated under the 1933 Act, as may be necessary to keep such Registration
Statement effective at all times during the Registration Period, and, during
such period, comply with the provisions of the 1933 Act with respect to the
disposition of all Registrable Securities of the Company covered by such
Registration Statement until such time as all of such Registrable Securities
shall have been disposed of in accordance with the intended methods of
disposition by the seller or sellers thereof as set forth in such Registration
Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to
this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form
10-Q or Form 8-K or any analogous report under the Securities Exchange Act of
1934, as amended (the "1934 ACT"), the Company shall have incorporated such
report by reference into the Registration Statement, if applicable, or shall
file such amendments or supplements with the SEC on the same day on which the
1934 Act report is filed which created the requirement for the Company to amend
or supplement the Registration Statement.

               c. The Company shall (a) permit Legal Counsel to review and
comment upon those sections of (i) the Registration Statement at least five (5)
business days prior to its filing with the SEC, and (ii) all other Registration
Statements and all amendments and supplements to all Registration Statements,
which are applicable to the Buyers (except for Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any similar or
successor

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report and registration statements on Form S-8) at least four (4) business days
prior to the their filing with the SEC and (b) not file any document in a form
to which Legal Counsel reasonably objects. The Company shall not submit a
request for acceleration of the effectiveness of a Registration Statement or any
amendment or supplement thereto without the prior approval of Legal Counsel,
which consent shall not be unreasonably withheld. The Company shall furnish to
Legal Counsel, without charge, (i) any correspondence from the SEC or the staff
of the SEC to the Company or its representatives relating to any Registration
Statement, (ii) promptly after the same is prepared and filed with the SEC, one
copy of any Registration Statement and any amendment(s) thereto, including
financial statements and schedules and all exhibits and (iii) upon the
effectiveness of any Registration Statement, one copy of the prospectus included
in such Registration Statement and all amendments and supplements thereto. The
Company shall reasonably cooperate with Legal Counsel in performing the
Company's obligations pursuant to this Section 3.

               d. The Company shall furnish to each Investor whose Registrable
Securities are included in any Registration Statement, without charge, (i)
promptly after the same is prepared and filed with the SEC, at least one copy of
such Registration Statement and any amendment(s) thereto, including financial
statements and schedules, and all exhibits and each preliminary prospectus, (ii)
upon the effectiveness of any Registration Statement, ten (10) copies of the
prospectus included in such Registration Statement and all amendments and
supplements thereto (or such other number of copies as such Investor may
reasonably request) and (iii) such other documents, including copies of any
preliminary or final prospectus, as such Investor may reasonably request from
time to time in order to facilitate the disposition of the Registrable
Securities owned by such Investor.

               e. The Company shall (i) register and qualify, unless an
exemption from registration and qualification applies, the Registrable
Securities covered by a Registration Statement under all jurisdiction's
securities or "blue sky" laws in the United States, (ii) prepare and file in
those jurisdictions, such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such registrations and
qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the
Registrable Securities for sale in such jurisdictions; provided, however, that
the Company shall not be required in connection therewith or as a condition
thereto to (w) make any change in the Company's Certificate of Incorporation or
by-laws that the Company's board of directors determines in good faith to be
contrary to the best interests of the Company and its shareholders, (x) qualify
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(e), (y) subject itself to general taxation in any
such jurisdiction, or (z) file a general consent to service of process in any
such jurisdiction. The Company shall promptly notify Legal Counsel and each
Investor who holds Registrable Securities of the receipt by the Company of any
notification with respect to the suspension of the registration or qualification
of any of the Registrable Securities for sale under the securities or "blue sky"
laws of any jurisdiction in the United States or its receipt of actual notice of
the initiation or threat of any proceeding for such purpose.

               f. As promptly as practicable after becoming aware of such event
or development, the Company shall notify Legal Counsel and each Investor in
writing of the happening of any event as a result of which the prospectus
included in a Registration Statement, as then in

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effect, includes an untrue statement of a material fact or omission to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading (provided that in no event shall such notice contain any material,
nonpublic information), and promptly prepare a supplement or amendment to such
Registration Statement to correct such untrue statement or omission, and deliver
ten (10) copies of such supplement or amendment to Legal Counsel and each
Investor (or such other number of copies as Legal Counsel or such Investor may
reasonably request). The Company shall also promptly notify Legal Counsel and
each Investor in writing (i) when a prospectus or any prospectus supplement or
post-effective amendment has been filed, and when a Registration Statement or
any post-effective amendment has become effective (notification of such
effectiveness shall be delivered to Legal Counsel and each Investor by facsimile
on the same day of such effectiveness), (ii) of any request by the SEC for
amendments or supplements to a Registration Statement or related prospectus or
related information, and (iii) of the Company's reasonable determination that a
post-effective amendment to a Registration Statement would be appropriate.

               g. The Company shall prevent the issuance of any stop order or
other suspension of effectiveness of a Registration Statement, or the suspension
of the qualification of any of the Registrable Securities for sale in any
jurisdiction, however, if such an order or suspension is issued, the Company
shall obtain the withdrawal of such order or suspension at the earliest possible
moment and to notify Legal Counsel and each Investor who holds Registrable
Securities being sold of the issuance of such order and the resolution thereof
or its receipt of actual notice of the initiation or threat of any proceeding
for such purpose.

               h. At the reasonable request of any Investor and at the expense
of such Investor, the Company shall furnish to such Investor, on the date of the
effectiveness of the Registration Statement and thereafter from time to time on
such dates as an Investor may reasonably request (i) a letter, dated such date,
from the Company's independent certified public accountants in form and
substance as is customarily given by independent certified public accountants to
underwriters in an underwritten public offering, and (ii) an opinion, dated as
of such date, of counsel representing the Company for purposes of such
Registration Statement, in form, scope and substance as is customarily given in
an underwritten public offering, addressed to the Investors.

               i. The Company shall make available for inspection, at the
expense of the Investor acting pursuant to this Section 3(i), by (i) any
Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents
retained by the Investors (collectively, the "INSPECTORS") all pertinent
financial and other records, and pertinent corporate documents and properties of
the Company (collectively, the "RECORDS"), as shall be reasonably deemed
necessary by each Inspector, and cause the Company's officers, directors and
employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree, and each Investor hereby
agrees, to hold in strict confidence and shall not make any disclosure (except
to an Investor) or use of any Record or other information which the Company
determines in good faith to be confidential, and of which determination the
Inspectors are so notified, unless (a) the disclosure of such Records is
necessary to avoid or correct a misstatement or omission in any Registration
Statement or is otherwise required under the 1933 Act, (b) the release of such
Records is ordered pursuant to a final, non-appealable subpoena or order from a
court or government body of competent jurisdiction, or (c) the information in
such Records has been made generally available to the public other than

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by disclosure in violation of this or any other agreement of which the Inspector
has knowledge. The Company shall not be required to disclose any confidential
information in such Records to any Inspector until and unless such Inspector
shall have entered into confidentiality agreements with the Company with respect
thereto, substantially in the form of this Section 3(i). Each Investor agrees
that it shall, upon learning that disclosure of such Records is sought in or by
a court or governmental body of competent jurisdiction or through other means,
give prompt notice to the Company and allow the Company, at its expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, the Records deemed confidential.

               j. The Company shall hold in confidence and not make any
disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state
securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other final,
non-appealable order from a court or governmental body of competent
jurisdiction, (iv) such information has been made generally available to the
public other than by disclosure in violation of this Agreement or any other
agreement, or (v) such Investor consents to the form and content of any such
disclosure. The Company agrees that it shall, upon learning that disclosure of
such information concerning an Investor is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt
written notice to such Investor and allow such Investor, at the Investor's
expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

               k. The Company shall either (i) cause all the Registrable
Securities covered by a Registration Statement to be listed on each securities
exchange on which securities of the same class or series issued by the Company
are then listed, if any, if the listing of such Registrable Securities is then
permitted under the rules of such exchange, or (ii) secure designation and
quotation of all the Registrable Securities covered by the Registration
Statement on the Nasdaq National Market or The New York Stock Exchange, Inc.,
or, if the Company is unsuccessful in satisfying the preceding clause (i) or
(ii), the Company shall secure the inclusion for quotation on The American Stock
Exchange, Inc., or The Nasdaq SmallCap Market, for such Registrable Securities
and, without limiting the generality of the foregoing, to arrange for at least
two market makers to register with the National Association of Securities
Dealers, Inc. ("NASD") as such with respect to such Registrable Securities. The
Company shall pay all fees and expenses in connection with satisfying its
obligation under this Section 3(k).

               l. The Company shall cooperate with the Investors who hold
Registrable Securities being offered, and to the extent applicable, to
facilitate the timely preparation and delivery of certificates (not bearing any
restrictive legend) representing the Registrable Securities to be offered
pursuant to a Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the Investors may reasonably
request and registered in such names as the Investors may request.

               m. The Company shall provide a transfer agent and registrar of
all such Registrable Securities not later than the effective date of such
Registration Statement.

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               n. If requested by an Investor, the Company shall (i) as soon as
practicable incorporate in a prospectus supplement or post-effective amendment
such information as an Investor requests to be included therein relating to the
sale and distribution of Registrable Securities, including, without limitation,
information with respect to the number of Registrable Securities being offered
or sold, the purchase price being paid therefor and any other terms of the
offering of the Registrable Securities to be sold in such offering; (ii) as soon
as practicable make all required filings of such prospectus supplement or
post-effective amendment after being notified of the matters to be incorporated
in such prospectus supplement or post-effective amendment; and (iii) supplement
or make amendments to any Registration Statement if reasonably requested by an
Investor of such Registrable Securities.

               o. The Company shall use its best efforts to cause the
Registrable Securities covered by the applicable Registration Statement to be
registered with or approved by such other governmental agencies or authorities
as may be necessary to consummate the disposition of such Registrable
Securities.

               p. The Company shall make generally available to its security
holders as soon as practical, but not later than 90 days after the close of the
period covered thereby, an earnings statement (in form complying with the
provisions of Rule 158 under the 1933 Act) covering a twelve-month period
beginning not later than the first day of the Company's fiscal quarter next
following the effective date of the Registration Statement, provided that the
Company shall be deemed to satisfy its obligations under this Section 3(p) if it
timely makes all required filings under the 1934 Act and does not change its
fiscal year.

               q. The Company shall otherwise comply with all applicable rules
and regulations of the SEC in connection with any registration hereunder.

               r. Within two (2) business days after a Registration Statement
which covers applicable Registrable Securities is ordered effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to
deliver, to the transfer agent for such Registrable Securities (with copies to
the Investors whose Registrable Securities are included in such Registration
Statement) confirmation that such Registration Statement has been declared
effective by the SEC in the form attached hereto as Exhibit A.

               s.     Intentionally Left Blank.

               t. Notwithstanding anything to the contrary in Section 3(f), at
any time after the applicable Registration Statement has been declared effective
by the SEC, the Company may delay the disclosure of material non-public
information concerning the Company the disclosure of which at the time is not,
in the good faith opinion of the Board of Directors of the Company and its
counsel, in the best interest of the Company and, in the opinion of counsel to
the Company, otherwise required (a "GRACE PERIOD"); provided, that the Company
shall promptly (i) notify the Investors in writing of the existence of material
non-public information giving rise to a Grace Period (provided that in each
notice the Company will not disclose the content of such material non-public
information to the Investors) and the date on which the Grace Period will begin,
and (ii) notify the Investors in writing of the date on which the Grace Period
ends; and, provided further, that no

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Grace Period shall exceed (I) 15 consecutive days for a Grace Period beginning
prior to or on the date which is one year after the Closing Date and (II) 15
consecutive business days for a Grace Period beginning after the date which is
one year after the Closing Date and provided that during any 365 day period such
Grace Periods shall not exceed an aggregate of 30 days (an "ALLOWABLE GRACE
PERIOD"). For purposes of determining the length of a Grace Period above, the
Grace Period shall begin on and include the date the holders receive the notice
referred to in clause (i) and shall end on and include the later of the date the
holders receive the notice referred to in clause (ii) and the date referred to
in such notice. The provisions of 3(g) hereof shall not be applicable during the
period of any Allowable Grace Period. Upon expiration of the Grace Period, the
Company shall again be bound by the first sentence of Section 3(f) with respect
to the information giving rise thereto unless such material non-public
information is no longer applicable.

        4. OBLIGATIONS OF THE INVESTORS.

               a. At least seven (7) business days prior to the first
anticipated filing date of a Registration Statement, the Company shall notify
each Investor in writing of the information the Company reasonably requires from
each such Investor if such Investor elects to have any of such Investor's
Registrable Securities included in such Registration Statement. It shall be a
condition precedent to the obligations of the Company to complete the
registration pursuant to this Agreement with respect to the Registrable
Securities of a particular Investor that such Investor shall furnish to the
Company such information regarding itself, the Registrable Securities held by it
and the intended method of disposition of the Registrable Securities held by it
as shall be reasonably required to effect the registration of such Registrable
Securities and shall execute such documents in connection with such registration
as the Company may reasonably request.

               b. Each Investor by such Investor's acceptance of the Registrable
Securities agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of any Registration
Statement hereunder, unless such Investor has notified the Company in writing of
such Investor's election to exclude all of such Investor's Registrable
Securities from such Registration Statement.

               c. Each Investor agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3(g),
Section 3(t) or the first sentence of Section 3(f), such Investor will
immediately discontinue disposition of Registrable Securities pursuant to any
Registration Statement(s) covering such Registrable Securities until such
Investor's receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of
notice that no supplement or amendment is required or that a Grace Period has
ended. Notwithstanding anything to the contrary, the Company shall, upon
Conversion of the Preferred Shares, exercise of the Warrants or receipt from an
Investor of relevant stock certificates for cancellation, cause its transfer
agent to deliver unlegended shares of Common Stock to a transferee of an
Investor in accordance with the terms of the Securities Purchase Agreement in
connection with any sale of Registrable Securities pursuant to the Registration
Statement or Rule 144 with respect to which an Investor has entered into a
contract for sale prior to the Investor's receipt of a notice from the Company
of the happening of any event of the kind described in Section 3(g), Section
3(t) or the first sentence of Section 3(f) and for which the Investor has not
yet settled.

                                       10
<PAGE>   11

               d. Each Investor agrees, in connection with any sale or other
disposition by such Investor of any Registrable Securities pursuant to the
Registration Statement, that such Investor will deliver the most recent version
of the prospectus received by such Investor from the Company prior to such sale
or disposition in accordance with and in the manner required by the 1933 Act and
all applicable regulations of the Securities and Exchange Commission.

        5. EXPENSES OF REGISTRATION.

               All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printers and accounting fees
shall be paid by the Company. In addition, the Company shall reimburse the
Investors for the reasonable fees and disbursements of Legal Counsel in
connection with registrations, filings or qualifications pursuant to Sections 2
and 3 of this Agreement which amount shall be limited to $10,000.

        6. INDEMNIFICATION.

               In the event any Registrable Securities are included in a
Registration Statement under this Agreement:

               a. To the fullest extent permitted by law, the Company will, and
hereby does, indemnify, hold harmless and defend each Investor, the directors,
officers, partners, employees, agents, representatives of, and each Person, if
any, who controls any Investor within the meaning of the 1933 Act or the
Securities Exchange Act of 1934, as amended (the "1934 ACT") (each, an
"INDEMNIFIED PERSON"), against any losses, claims, damages, liabilities,
judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts
paid in settlement or expenses, joint or several, (collectively, "CLAIMS")
incurred in investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the foregoing by or
before any court or governmental, administrative or other regulatory agency,
body or the SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("INDEMNIFIED DAMAGES"), to which any of them
may become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered ("BLUE SKY FILING"), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) any untrue statement or alleged untrue statement of
a material fact contained in any preliminary prospectus if used prior to the
effective date of such Registration Statement, or contained in the final
prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made
therein, in light of the circumstances under which the statements therein were
made, not misleading or (iii) any violation or alleged violation by the

                                       11
<PAGE>   12

Company of the 1933 Act, the 1934 Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to a
Registration Statement (the matters in the foregoing clauses (i) through (iii)
being, collectively, "VIOLATIONS"). Subject to Section 6(c), the Company shall
reimburse the Investors and each such controlling person, promptly as such
expenses are incurred and are due and payable, for any legal fees or
disbursements or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this
Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity
with information furnished in writing to the Company by such Indemnified Person
expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto; (ii) shall not be
available to the extent such Claim is based on a failure of the Investor to
deliver or to cause to be delivered the prospectus made available by the
Company, if such prospectus was timely made available by the Company pursuant to
Section 3(d); and (iii) shall not apply to amounts paid in settlement of any
Claim, if such settlement is effected without the prior written consent of the
Company, which consent shall not be unreasonably withheld. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of the Indemnified Person and shall survive the transfer of the
Registrable Securities by the Investors pursuant to Section 9. Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(a) with respect to any prospectus shall not inure to
the benefit of an Indemnified Person if the untrue statement or omission of
material fact contained in the prospectus was corrected in the prospectus and
such new prospectus was delivered to each Investor prior to such Investor's use
of the prospectus to which the Claim relates.

               b. In connection with any Registration Statement in which an
Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same
manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers who signs the Registration Statement and each Person, if any,
who controls the Company within the meaning of the 1933 Act or the 1934 Act
(each an "INDEMNIFIED PARTY"), against any Claim or Indemnified Damages to which
any of them may become subject, under the 1933 Act, the 1934 Act or otherwise,
insofar as such Claim or Indemnified Damages arise out of or are based upon any
Violation, in each case to the extent, and only to the extent, that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by such Investor expressly for use in connection with
such Registration Statement; and, subject to Section 6(d), such Investor will
reimburse any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such Claim; provided, however, that the
indemnity agreement contained in this Section 6(b) and the agreement with
respect to contribution contained in Section 7 shall not apply to amounts paid
in settlement of any Claim if such settlement is effected without the prior
written consent of such Investor, which consent shall not be unreasonably
withheld; provided, further, however, that the Investor shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified Damages as does
not exceed the net proceeds to such Investor as a result of the sale of
Registrable Securities pursuant to such Registration Statement. Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified Party and shall survive the transfer of the
Registrable Securities by the Investors pursuant to Section 9. Notwithstanding
anything to the

                                       12
<PAGE>   13

contrary contained herein, the indemnification agreement contained in this
Section 6(b) with respect to any prospectus shall not inure to the benefit of
any Indemnified Party if the untrue statement or omission of material fact
contained in the prospectus was corrected and such new prospectus was delivered
to each Investor prior to such Investor's use of the prospectus to which the
Claim relates.

               c. Promptly after receipt by an Indemnified Person or Indemnified
Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim,
such Indemnified Person or Indemnified Party shall, if a claim in respect
thereof is to be made against any indemnifying party under this Section 6,
deliver to the indemnifying party a written notice of the commencement thereof,
and the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person or
the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party shall have the right to retain its own
counsel with the fees and expenses of not more than one counsel for such
Indemnified Person or Indemnified Party to be paid by the indemnifying party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation by such counsel of the Indemnified Person or Indemnified Party
and the indemnifying party would be inappropriate due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party represented by such counsel in such proceeding. In the case of an
Indemnified Person, legal counsel referred to in the immediately preceding
sentence shall be selected by the Investors holding a majority in interest of
the Registrable Securities included in the Registration Statement to which the
Claim relates. The Indemnified Party or Indemnified Person shall cooperate fully
with the indemnifying party in connection with any negotiation or defense of any
such action or Claim by the indemnifying party and shall furnish to the
indemnifying party all information reasonably available to the Indemnified Party
or Indemnified Person which relates to such action or claim. The indemnifying
party shall keep the Indemnified Party or Indemnified Person fully apprised at
all times as to the status of the defense or any settlement negotiations with
respect thereto. No indemnifying party shall be liable for any settlement of any
action, claim or proceeding effected without its prior written consent,
provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the prior
written consent of the Indemnified Party or Indemnified Person, consent to entry
of any judgment or enter into any settlement or other compromise which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such claim or litigation. Following indemnification as provided
for hereunder, the indemnifying party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made.
The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the indemnifying party is
prejudiced in its ability to defend such action.

               d. The indemnification required by this Section 6 shall be made
by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages
are incurred.

                                       13
<PAGE>   14

               e. The indemnity agreements contained herein shall be in addition
to (i) any cause of action or similar right of the Indemnified Party or
Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

        7. CONTRIBUTION.

               To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable Securities guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any seller of Registrable Securities who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds received by
such seller from the sale of such Registrable Securities pursuant to such
Registration Statement.

        8. REPORTS UNDER THE 1934 ACT.

               With a view to making available to the Investors the benefits of
Rule 144, the Company agrees to:

               a. make and keep public information available, as those terms are
understood and defined in Rule 144;

               b. file with the SEC in a timely manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company remains subject to such requirements (it being understood that
nothing herein shall limit the Company's obligations under Section 4(c) of the
Securities Purchase Agreement) and the filing of such reports and other
documents is required by the applicable provisions of Rule 144; and

               c. furnish to each Investor so long as such Investor owns
Registrable Securities, promptly upon request, (i) a written statement by the
Company that it has complied with the reporting requirements of Rule 144, the
1933 Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly
report of the Company and such other reports and documents as may be necessary
to qualify under Rule 144, and (iii) such other information as may be reasonably
requested to permit the Investors to sell such securities pursuant to Rule 144
without registration.

                                       14
<PAGE>   15

        9. ASSIGNMENT OF REGISTRATION RIGHTS.

               The rights under this Agreement shall be automatically assignable
by the Investors to any transferee of all or any portion of Registrable
Securities if: (i) the Investor agrees in writing with the transferee or
assignee to assign such rights, and a copy of such agreement is furnished to the
Company within a reasonable time after such assignment; (ii) the Company is,
within a reasonable time after such transfer or assignment, furnished with
written notice of (a) the name and address of such transferee or assignee, and
(b) the securities with respect to which such registration rights are being
transferred or assigned; (iii) immediately following such transfer or assignment
the further disposition of such securities by the transferee or assignee is
restricted under the 1933 Act and applicable state securities laws; (iv) at or
before the time the Company receives the written notice contemplated by clause
(ii) of this sentence the transferee or assignee agrees in writing with the
Company to be bound by all of the provisions contained herein; and (v) such
transfer shall have been made in accordance with the applicable requirements of
the Securities Purchase Agreement.

        10. AMENDMENT OF REGISTRATION RIGHTS.

               Provisions of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and Investors who then hold at least two-thirds (2/3) of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section 10
shall be binding upon each Investor and the Company. No such amendment shall be
effective to the extent that it applies to less than all of the holders of the
Registrable Securities. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of this
Agreement unless the same consideration also is offered to all of the parties to
this Agreement.

        11. MISCELLANEOUS.

               a. A Person is deemed to be a holder of Registrable Securities
whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

               b. 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 business 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:

                                       15
<PAGE>   16

        If to the Company:

               Auspex Systems, Inc.
               2300 Central Expressway
               Santa Clara, California 95050-2515
               Telephone: (408) 566-2000
               Facsimile: (408) 566-2020
               Attention: Chief Executive Officer

        With a copy to:

               Wilson Sonsini Goodrich & Rosati
               650 Page Mill Road
               Palo Alto, California 94304-1050
               Telephone: (650) 493-9300
               Facsimile: (650) 493-6811
               Attention: Henry P. Massey, Jr., Esq.

        If to Legal Counsel:

               Katten Muchin & Zavis
               525 West Monroe Street, Suite 1600
               Chicago, Illinois 60661-3693
               Telephone: 312-902-5200
               Facsimile: 312-902-1061
               Attention: Robert J. Brantman, Esq.

If to a Buyer, to its address and facsimile number on the Schedule of Buyers
attached hereto, with copies to such Buyer's representatives as set forth on the
Schedule of Buyers or to 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 five 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 courier or overnight courier 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.

               c. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

               d. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State

                                       16
<PAGE>   17

of New York or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of New York. Each party hereby
irrevocably submits to the non-exclusive jurisdiction of the state and federal
courts sitting in the City of New York, borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith 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. 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.
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.

               e. This Agreement, the Securities Purchase Agreement, the
Warrants and the Certificate of Designations constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein. This Agreement, the
Securities Purchase Agreement, the Warrants and the Certificate of Designations
supersede all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof and thereof.

               f. Subject to the requirements of Section 9, this Agreement shall
inure to the benefit of and be binding upon the permitted successors and assigns
of each of the parties hereto.

               g. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

               h. This Agreement may be executed in identical counterparts, each
of which shall be deemed an original but all of which shall constitute one and
the same agreement. This Agreement, once executed by a party, may be delivered
to the other party hereto by facsimile transmission of a copy of this Agreement
bearing the signature of the party so delivering this Agreement.

               i. 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.

                                       17
<PAGE>   18

               j. All consents and other determinations to be made by the
Investors pursuant to this Agreement shall be made, unless otherwise specified
in this Agreement, by Investors holding a majority of the Registrable
Securities, determined as if all of the Preferred Shares and the Warrants then
outstanding have been converted into or exercised for Registrable Securities
without regard to any limitations on conversion of the Preferred Shares or
exercise of the Warrants.

               k. 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.

               l. 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.

                                    * * * * *

                                       18
<PAGE>   19

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

COMPANY:                                 BUYERS:

AUSPEX SYSTEMS, INC.                     HFTP INVESTMENT L.L.C.
                                         By: Promethean Asset Management, L.L.C.
                                         Its:Investment Manager

By:         /s/ Bruce Moore              By:
   -------------------------------          ------------------------------------
Name: Bruce N. Moore                        James F. O'Brien, Jr.
Its: President and Chief                    Managing Member
     Executive Officer

                                         FISHER CAPITAL LTD.

                                         By:
                                            ------------------------------------
                                            Kenneth A. Simpler
                                            Its: Vice President

                                         WINGATE CAPITAL LTD.

                                         By:
                                            ------------------------------------
                                            Kenneth A. Simpler
                                            Its: Vice President

                                         LEONARDO, L.P.

                                         By: ANGELO, GORDON & CO., L.P.
                                         Its: General Partner

                                         By:
                                            ------------------------------------
                                         Name:
                                              ----------------------------------
                                         Its:
                                             -----------------------------------

<PAGE>   20

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>

                                    INVESTOR ADDRESS                  INVESTOR'S REPRESENTATIVES' ADDRESS
      INVESTOR NAME               AND FACSIMILE NUMBER                      AND FACSIMILE NUMBER
      -------------               --------------------                -----------------------------------
<S>                         <C>                                       <C>
HFTP Investment L.L.C.      c/o Promethean Asset Management, L.L.C.   Promethean Investment Group, L.L.C.
                            750 Lexington Avenue, 22nd Floor          750 Lexington Avenue, 22nd Floor
                            New York, New York 10022                  New York, New York 10022
                            Attn: James F. O'Brien, Jr.               Attn: James F. O'Brien, Jr.
                                  John M. Floegel                           John M. Floegel
                            Telephone: 212-702-5200                   Telephone: 212-702-5200
                            Facsimile: 212-758-9334                   Facsimile: 212-758-9334
                            Residence: New York

                                                                      Katten Muchin & Zavis
                                                                      525 West Monroe, Suite 1600
                                                                      Chicago, Illinois 60661-3693
                                                                      Attn: Robert J. Brantman, Esq.
                                                                      Telephone: 312-902-5200
                                                                      Facsimile: 312-902-1061

Fisher Capital Ltd.         c/o Citadel Investment Group, L.L.C.      Katten Muchin Zavis
                            225 West Washington Street                525 W. Monroe Street, Suite 1600
                            Chicago, Illinois 60606                   Chicago, Illinois 60661-3693
                            Attention: Kenneth A. Simpler             Attn: Robert J. Brantman, Esq.
                            Facsimile: (312) 338-0780                 Facsimile: (312) 902-1061
                            Telephone: (312) 696-2100                 Telephone: (312) 902-5200
                            Residence: Illinois

Wingate Capital Ltd.        c/o Citadel Investment Group, L.L.C.      Katten Muchin Zavis
                            225 West Washington Street                525 W. Monroe Street, Suite 1600
                            Chicago, Illinois 60606                   Chicago, Illinois 60661-3693
                            Attention: Kenneth A. Simpler             Attn: Robert J. Brantman, Esq.
                            Facsimile: (312) 338-0780                 Facsimile: (312) 902-1061
                            Telephone: (312) 696-2100                 Telephone: (312) 902-5200
                            Residence: Illinois

Leonardo, L.P.              c/o Angelo, Gordon & Co., L.P.            c/o Angelo, Gordon & Co., L.P.
                            245 Park Avenue - 26th Floor              245 Park Avenue - 26th Floor
                            New York, New York 10167                  New York, New York 10167
                            Attention: Gary Wolf or                   Attn: Gary Wolf or Ari Storch
                                       Ari Storch                     Facsimile: (212) 867-6449
                            Facsimile: (212) 867-6449                 Telephone: (212) 692-2035
                            Telephone: (212) 692-2035
                            Residence: Cayman Islands
</TABLE>

<PAGE>   21

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]

ATTN: ______________

               Re:  AUSPEX SYSTEMS, INC.

Ladies and Gentlemen:

        We are counsel to Auspex Systems, Inc., a Delaware corporation (the
"COMPANY"), and have represented the Company in connection with that certain
Securities Purchase Agreement (the "PURCHASE AGREEMENT") entered into by and
among the Company and the Buyers named therein (collectively, the "HOLDERS")
pursuant to which the Company issued to the Holders shares of its Series ___
Convertible Preferred Stock, par value $_____ per share (the "PREFERRED SHARES")
convertible into shares of the Company's common stock, par value $0.001 per
share (the "COMMON STOCK"), and the related Warrants (the "WARRANTS") to acquire
shares of Common Stock. Pursuant to the Purchase Agreement, the Company also has
entered into a Registration Rights Agreement with the Holders (the "REGISTRATION
RIGHTS AGREEMENT") pursuant to which the Company agreed, among other things, to
register the Registrable Securities (as defined in the Registration Rights
Agreement), including the shares of Common Stock issuable upon conversion of the
Preferred Shares and upon exercise of the Warrants, under the Securities Act of
1933, as amended (the "1933 ACT"). In connection with the Company's obligations
under the Registration Rights Agreement, on ____________ ____, the Company filed
a Registration Statement on Form S-3 (File No. 333-_____________) (the
"REGISTRATION STATEMENT") with the Securities and Exchange Commission (the
"SEC") relating to the Registrable Securities which names each of the Holders as
a selling stockholder thereunder.

        In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                       Very truly yours,

                                       [ISSUER'S COUNSEL]

                                       By: ____________________________________

cc: [LIST NAMES OF HOLDERS]<PAGE>   1

                                                                    EXHIBIT 10.2

                          SECURITIES PURCHASE AGREEMENT

        SECURITIES PURCHASE AGREEMENT (the "AGREEMENT"), dated as of January 18,
2000, by and among Auspex Systems, Inc., a Delaware corporation, with
headquarters located at 2300 Central Expressway, Santa Clara, California
95050-2515 (the "COMPANY"), and the investors listed on the Schedule of Buyers
attached hereto (individually, a "BUYER" and collectively, the "BUYERS").

        WHEREAS:

        A. The Company and each Buyer is executing and delivering this Agreement
in reliance upon the exemption from securities registration afforded by Rule 506
of Regulation D ("REGULATION D") as promulgated by the United States Securities
and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended
(the "1933 ACT");

        B. The Company has authorized a new series of its Preferred Stock, par
value $0.001 per share, which shall be called the Company's Series B Convertible
Preferred Stock (the "PREFERRED STOCK"), which shall be convertible into shares
of the Company's common stock, par value $0.001 per share (the "COMMON STOCK")
(as converted, the "CONVERSION SHARES"), in accordance with the terms of the
Company's Certificate of Designations, Preferences and Rights of the Preferred
Stock in the form attached hereto as Exhibit A (the "CERTIFICATE OF
DESIGNATIONS");

        C. Each Buyer wishes to purchase, upon the terms and conditions stated
in this Agreement, (i) the number of shares of the Preferred Stock set forth
opposite such Buyer's name on the Schedule of Buyers (which number of shares to
be issued to all the Buyers in the aggregate shall equal 25,000 shares of
Preferred Stock, collectively, the "PREFERRED SHARES"), and (ii) warrants (the
"WARRANTS") to purchase up to 64.20544 shares of Common Stock (as exercised
collectively, the "WARRANT SHARES") for each Preferred Share purchased by such
Buyer on the Closing Date (as defined below) (as set forth opposite such Buyer's
name on the Schedule of Buyers), such Warrants to be substantially in the form
attached hereto as Exhibit B;

        D. Contemporaneously with the execution and delivery of this Agreement,
the Company and each Buyer is executing and delivering a Registration Rights
Agreement substantially in the form attached hereto as Exhibit C (the
"REGISTRATION RIGHTS AGREEMENT") pursuant to which the Company has agreed to
provide certain registration rights under the 1933 Act and the rules and
regulations promulgated thereunder, and applicable state securities laws.

<PAGE>   2

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

        1. PURCHASE AND SALE OF PREFERRED SHARES AND WARRANTS.

               a. Purchase of Preferred Shares. Subject to satisfaction (or
waiver) of the conditions set forth in Sections 6 and 7, the Company shall issue
and sell to each Buyer and each Buyer agrees to purchase from the Company the
number of Preferred Shares set forth opposite such Buyer's name on the Schedule
of Buyers, along with the related Warrants (the "CLOSING"). The purchase price
(the "PURCHASE PRICE") of each Preferred Share and the related Warrants at the
Closing shall be an aggregate of $1,000. "BUSINESS DAY" means any day other than
Saturday, Sunday or other day on which commercial banks in the city of New York
are authorized or required by law to remain closed.

               b. The Closing Date. The date and time of the Closing (the
"CLOSING DATE") shall be 10:00 a.m., Pacific Time, within one (1) Business Day
following the date hereof, subject to satisfaction (or waiver) of the conditions
to the Closing set forth in Sections 6 and 7 (or such later date as is mutually
agreed to by the Company and the Buyer). The Closing shall occur on the Closing
Date at the offices of Katten Muchin & Zavis, 525 West Monroe Street, Suite
1600, Chicago, Illinois 60661-3693.

               c. Form of Payment. On the Closing Date (i) each Buyer shall pay
the Purchase Price to the Company for the Preferred Shares and the related
Warrants to be issued and sold to such Buyer by wire transfer of immediately
available funds in accordance with the Company's written wire instructions, and
(ii) the Company shall deliver to each Buyer stock certificates (in the
denominations as such Buyer shall request) (the "STOCK CERTIFICATES")
representing such number of the Preferred Shares which such Buyer is then
purchasing along with the related Warrants, duly executed on behalf of the
Company and registered in the name of such Buyer.

        2. BUYER'S REPRESENTATIONS AND WARRANTIES.

               Each Buyer represents and warrants with respect to only itself
that:

               a. Investment Purpose. Such Buyer (i) is acquiring the Preferred
Shares and the Warrants, (ii) upon conversion of the Preferred Shares, will
acquire the Conversion Shares then issuable and (iii) upon exercise of the
Warrants, will acquire the Warrant Shares issuable upon exercise thereof (the
Preferred Shares, the Warrants, the Conversion Shares and the Warrant Shares,
collectively are 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, except pursuant to sales
registered or exempted under the 1933 Act; provided, however, that by making the
representations herein, such Buyer does not agree to hold any of the Securities
for any minimum or other specific term and reserves the right to dispose of the
Securities at any time in accordance with or pursuant to a registration
statement or an exemption under the 1933 Act.

                                       2
<PAGE>   3

               b. Accredited Investor Status. Such Buyer is an "accredited
investor" as that term is defined in Rule 501(a) of Regulation D.

               c. Reliance on Exemptions. Such 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
such Buyer's compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Buyer set forth herein in order to
determine the availability of such exemptions and the eligibility of such Buyer
to acquire such Securities.

               d. Information. Such Buyer and its advisors, if any, have 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
which have been requested by such Buyer. Such Buyer and its advisors, if any,
have been afforded the opportunity to ask questions of the Company. Neither such
inquiries nor any other due diligence investigations conducted by such Buyer or
its advisors, if any, or its representatives shall modify, amend or affect such
Buyer's right to rely on the Company's representations and warranties contained
in Sections 3 and 9(m) below. Such Buyer understands that its investment in the
Securities involves a high degree of risk. Such 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. Such 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. Such Buyer understands that except as
provided in the Registration Rights Agreement: (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, (B) such Buyer shall have delivered to the
Company an opinion of counsel, in a form reasonably satisfactory to the Company,
to the effect that such Securities to be sold, assigned or transferred may be
sold, assigned or transferred pursuant to an exemption from such registration,
or (C) such Buyer provides the Company with reasonable assurance that such
Securities can be sold, assigned or transferred pursuant to Rule 144 promulgated
under the 1933 Act (or a successor rule thereto) ("RULE 144"); (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 under the 1933 Act or any state securities laws or to comply
with the terms and conditions of any exemption

                                       3
<PAGE>   4

thereunder. Notwithstanding the foregoing, the Securities may be pledged in
connection with a bona fide margin account or other loan secured by the
Securities.

               g. Legends. Such Buyer understands that the certificates or other
instruments representing the Preferred Shares and the Warrants and, until such
time as the sale of the Conversion Shares and the Warrant Shares have been
registered under the 1933 Act as contemplated by the Registration Rights
Agreement, the stock certificates representing the Conversion Shares and the
Warrant Shares, except as set forth below, shall bear a restrictive legend in
substantially the following form (and a stop-transfer order may be placed
against transfer of such stock certificates):

        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
        SECURITIES LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
        MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE
        ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER
        THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
        LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY SATISFACTORY TO THE
        ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE
        STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
        ACT. NOTWITHSTANDING THE FOREGOING, SUCH SECURITIES MAY BE PLEDGED IN
        CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
        SECURITIES.

The legend set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of the Securities upon which it is
stamped, if (i) such Securities are registered for sale under the 1933 Act, (ii)
in connection with a sale, assignment or transfer of such securities, such
holder provides the Company with an opinion of counsel, in a form reasonably
satisfactory to the Company, to the effect that such sale, assignment or
transfer may be made without registration under the 1933 Act or (iii) such
holder provides the Company with reasonable assurance that such Securities can
be sold pursuant to Rule 144. Such Buyer acknowledges, covenants and agrees to
sell Securities represented by a certificate(s) from which the legend has been
removed, only pursuant to (i) a registration statement effective under the 1933
Act or (ii) advice of counsel to such holder that such sale is exempt from the
registration requirements of Section 5 of the 1933 Act, provided that the Buyer
gives written notice to the Company specifying the amount of securities sold and
the exemption relied on and, provided further, that for sales pursuant to Rule
144 such notice will be satisfied by the Buyer providing the Company with a copy
of its Form 144.

               h. Authorization; Enforcement. This Agreement and the
Registration Rights Agreement have been duly and validly authorized, executed
and delivered on behalf of such Buyer and are valid and binding agreements of
such Buyer enforceable against such Buyer in accordance with their terms,
subject as to enforceability to general principles of equity and to applicable

                                       4
<PAGE>   5

bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement of applicable
creditors' rights and remedies.

               i. Residency. Such Buyer is a resident of that jurisdiction
specified on the Schedule of Buyers.

        3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

               The Company represents and warrants to each of the Buyers 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 the capital stock or holds an equity
or similar interest) (a complete list of which is set forth in Schedule 3(a))
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 authorization to own 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 would not have
a Material Adverse Effect. As used in this Agreement, "MATERIAL ADVERSE EFFECT"
means any material adverse effect on the business, properties, assets,
operations, results of operations or financial condition of the Company and its
Subsidiaries taken as a whole, or on the transactions contemplated hereby or by
the agreements and instruments to be entered into in connection herewith, or on
the authority or ability of the Company to perform its obligations under the
Transaction Documents (as defined below) or the Certificate of Designations.

               b. Authorization; Enforcement; Compliance with Other Instruments.
The Company has the requisite corporate power and authority to enter into and
perform its obligations under this Agreement, the Registration Rights Agreement,
the Irrevocable Transfer Agent Instructions (as defined in Section 5), the
Warrants 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. The execution and delivery of the Transaction
Documents by the Company and the execution and filing of the Certificate of
Designations by the Company and the consummation by it of the transactions
contemplated hereby and thereby, including without limitation the issuance of
the Preferred Shares and the Warrants and the reservation for issuance and the
issuance of the Conversion Shares and the Warrant Shares issuable upon
conversion or exercise thereof, 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 stockholders. The Transaction Documents have been
duly executed and delivered by the Company. This Agreement and the Registration
Rights Agreement and, when executed and delivered, the other Transaction
Documents, constitute 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,

                                       5
<PAGE>   6

liquidation or similar laws relating to, or affecting generally, the enforcement
of creditors' rights and remedies.

               c. Capitalization. The authorized capital stock of the Company
consists of (i) 50,000,000 shares of Common Stock, of which as of the date
hereof 27,951,035 shares are issued and outstanding, 6,308,285 shares are
issuable and reserved for issuance pursuant to the Company's stock option and
purchase plans and 0 shares are issuable and reserved for issuance pursuant to
securities (other than the Preferred Shares and the Warrants) exercisable or
exchangeable for, or convertible into, shares of Common Stock and (ii) 5,000,000
shares of preferred stock, of which 50,000 shares are designated as Series A
Participating Preferred Stock, none of which are outstanding as of the date
hereof and 25,000 shares are designated as Series B Convertible Preferred Stock,
none of which are outstanding as of the date hereof. All of such outstanding
shares have been and are, or upon issuance will be, validly issued, fully paid
and nonassessable. Except 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 issued by the Company; (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 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 each Buyer true and
correct copies of the Company's Certificate of Incorporation, as amended and as
in effect on the date hereof (the "CERTIFICATE OF INCORPORATION"), and the
Company's By-laws, as in effect on the date hereof (the "BY-LAWS"), and the
terms of all securities convertible into or exercisable for Common Stock and the
material rights of the holders thereof in respect thereto.

               d. Issuance of Securities. The Preferred Shares are duly
authorized and, upon issuance in accordance with the terms hereof, shall be (i)
validly issued, fully paid and non-assessable, (ii) free from all taxes, liens
and charges with respect to the issuance thereof and (iii) entitled to the
rights and preferences set forth in the Certificate of Designations. At least
9,101,388 shares of Common Stock (subject to adjustment pursuant to the
Company's covenant set forth in Section 4(f) below) have been duly authorized
and reserved for issuance upon conversion of the Preferred Shares and exercise
of the Warrants. Upon conversion or exercise

                                       6
<PAGE>   7

in accordance with the Certificate of Designations or the Warrants, as the case
may be, the Conversion Shares and the Warrant Shares will be validly issued,
fully paid and nonassessable and free from all taxes, liens and charges with
respect to the issuance thereof, with the holders being entitled to all rights
accorded to a holder of Common Stock. The issuance by the Company of the
Securities is exempt from registration under the 1933 Act. The offer and sale by
the Company of the Preferred Shares and the Warrants is being made in reliance
upon the exemption from registration set forth in Rule 506 of Regulation D under
the 1933 Act and is only being made to "accredited investors" that meet the
requirements of Rule 501(a) of Regulation D and similar exemptions under state
law.

               e. No Conflicts. Except as disclosed in Schedule 3(e), the
execution, delivery and performance of the Transaction Documents by the Company,
the performance by the Company of its obligations under the Certificate of
Designations and the consummation by the Company of the transactions
contemplated hereby and thereby (including, without limitation, the reservation
for issuance and issuance of the Conversion Shares and the Warrant Shares) will
not (I) result in a violation of the Certificate of Incorporation, any
certificate of designations of any outstanding series of preferred stock of the
Company or the By-laws; (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 (III) 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 or exchange on which the Common Stock is traded or listed) 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. Except as disclosed in
Schedule 3(e): neither the Company nor its Subsidiaries is in violation of any
term of (i) its Certificate of Incorporation, any certificate of designations of
any outstanding series of preferred stock or its By-laws or their organizational
charter or by-laws, respectively, or (ii) any statute, rule or regulation
applicable to the Company or its Subsidiaries and neither the Company nor its
Subsidiaries is in default under any contract, agreement, mortgage,
indebtedness, indenture, instrument, judgment, decree or order, except for such
violations or defaults which would not, individually or in the aggregate, 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
or regulation of any governmental entity except for such violations the
sanctions for which either individually or in the aggregate would not have a
Material Adverse Effect. Except as specifically contemplated by this Agreement
and except such as have been obtained as of the date hereof, 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 or the
Certificate of Designations 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 and such consents shall have been obtained prior to the Closing. The
Company and its Subsidiaries are unaware of any facts or circumstances which
might reasonably be expected to give rise to any of the foregoing. The Company
is not in

                                       7
<PAGE>   8

violation of the listing requirements of the Nasdaq National Market as in effect
on the date hereof and on the Closing Date and has no actual knowledge of any
facts which would reasonably lead to delisting or suspension of the Common Stock
by the Nasdaq National Market in the foreseeable future.

               f. SEC Documents; Financial Statements. Since June 30, 1998, the
Company has 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 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"). A complete list of the Company's SEC Documents is set forth on
Schedule 3(f). 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.
None of the SEC Documents, at the time they were filed with the SEC, 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 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 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). Neither the Company
nor any of its Subsidiaries nor any of their officers, directors, employees or
agents have provided the Buyers with any material, nonpublic information other
than the Material Information (as defined below). The Company meets the
requirements for the use of Form S-3 for registration of the resale of the
Registrable Securities (as defined in the Registration Rights Agreement) by each
Buyer.

               g. Absence of Certain Changes. Except as disclosed in Schedule
3(g), since June 30, 1999 there has been no material adverse change and no
material adverse development in the business, properties, operations, financial
condition, liabilities or results of operations of the Company or its
Subsidiaries, taken as a whole. 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 that its creditors intend to initiate involuntary bankruptcy
proceedings or any knowledge of any fact which would reasonably lead a creditor
to do so.

               h. Absence of Litigation. Except as disclosed in Schedule 3(h),
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

                                       8
<PAGE>   9

Company's Subsidiaries or any of the Company's or the Company's Subsidiaries'
officers or directors in their capacities as such, except as expressly set forth
in Schedule 3(h). Except as set forth in Schedule 3(h), to the knowledge of the
Company none of the directors or officers of the Company have been involved in
securities related litigation during the past five years.

               i. Acknowledgment Regarding the Buyer's Purchase of Preferred
Shares. The Company acknowledges and agrees that each of the Buyers is acting
solely in the capacity of arm's length purchaser with respect to the Transaction
Documents and the Certificate of Designations and the transactions contemplated
thereby. The Company further acknowledges that none of the Buyers is acting as a
financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to the Transaction Documents and the Certificate of Designations and the
transactions contemplated thereby and any advice given by any of the Buyers or
any of their respective representatives or agents in connection with the
Transaction Documents and the Certificate of Designations and the transactions
contemplated thereby is merely incidental to such Buyer's purchase of the
Securities. The Company further represents to each 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.

               j. No Undisclosed Events, Liabilities, Developments or
Circumstances. Except for the issuance of the Preferred Shares and Warrants
contemplated by this Agreement and except for the disclosure of the Company's
quarterly financial results for the period ended December 31, 1999 (the
"Material Information"), no event, liability, development or circumstance has
occurred or exists with respect to the Company or its Subsidiaries or their
respective businesses, properties, operations or financial condition, that would
be required to be disclosed by the Company under applicable securities laws on a
registration statement (including by way of incorporation by reference) filed
with the SEC relating to an issuance and sale by the Company of its Common Stock
and which has not been publicly disclosed.

               k. 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.

               l. 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 Securities to be
integrated with prior offerings by the Company for purposes of the 1933 Act or
any applicable stockholder approval provisions, including, without limitation,
under the rules and regulations of the Nasdaq National Market, nor will the
Company or any of its Subsidiaries take any action or steps that would require
registration of the Securities under the 1933 Act or cause the offering of the
Securities to be integrated with other offerings.

               m. Employee Relations. Neither the Company nor any of its
Subsidiaries is involved in any union labor dispute nor, to the knowledge of the
Company or any of its

                                       9
<PAGE>   10

Subsidiaries, is any such dispute threatened. None of the Company's or its
Subsidiaries' employees is a member of a union, neither the Company nor any of
its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that their relations with their employees
are good. No executive officer (as defined in Rule 501(f) of the 1933 Act) has
notified the Company's Board of Directors that such officer intends to leave the
Company or otherwise terminate such officer's employment with the Company and
the Company does not have any plans, as of the date hereof, to terminate any
such officer during the six months following the date of this Agreement.

               n. Intellectual Property Rights. The Company and its Subsidiaries
own or possess adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, issued patents,
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(n), none of the Company's
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 are expected to expire or terminate within two
years from the date of this Agreement except where such expiration or
termination would not have, either individually or in the aggregate, a Material
Adverse Effect. The Company and its Subsidiaries do not have any knowledge of
any infringement by the Company or its Subsidiaries of trademarks, trade name
rights, patents, patent rights, copyrights, inventions, licenses, service names,
service marks, service mark registrations, trade secrets 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(n), no
claim, action or proceeding has been made or brought against, or to the
Company's knowledge, has been threatened against, the Company or its
Subsidiaries regarding trademarks, trade name rights, patents, patent rights,
inventions, copyrights, licenses, service names, service marks, service mark
registrations, trade secrets or other infringement; and the Company and its
Subsidiaries are unaware of any facts or circumstances which might give rise to
any of the foregoing. The Company and its Subsidiaries have taken reasonable
security measures to protect the secrecy, confidentiality and value of all of
their intellectual properties except where the failure to do so would not have
either individually or in the aggregate a Material Adverse Effect.

               o. Regulatory Permits. Except where the absence of which would
not have a Material Adverse Effect, the Company and its Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal,
state or foreign regulatory authorities necessary to conduct their respective
businesses. 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.

               p. Internal Accounting Controls. The Company and each of its
Subsidiaries maintain a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance
with management's general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset
accountability, (iii)

                                       10
<PAGE>   11

access to assets is permitted only in accordance with management's general or
specific authorization and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

               q. Tax Status. The Company and each of its Subsidiaries has made
or filed all federal and state income and all other 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 for which the Company 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.

               r. Transactions With Affiliates and Employees. Except as set
forth on Schedule 3(r) or in the SEC Documents filed at least ten days prior to
the date hereof 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 a
substantial interest or is an officer, director, trustee or partner.

               s. Dilutive Effect. The Company understands and acknowledges that
the number of Conversion Shares issuable upon conversion of the Preferred Shares
will increase in certain circumstances. The Company further acknowledges that
its obligation to issue Conversion Shares upon conversion of the Preferred
Shares in accordance with this Agreement and the Certificate of Designations and
its obligation to issue the Warrant Shares in accordance with this Agreement and
the Warrants is, in each case, absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of other
stockholders of the Company.

               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 Certificate of Incorporation or the laws of
the state of its incorporation which is or could become applicable to the Buyers
as a result of the Buyers and the Company fulfilling their obligations under the
Transaction Documents and the Certificate of Designations, including, without
limitation, the Company's issuance of the Securities and the Buyers' ownership
of the Securities.

                                       11
<PAGE>   12

               u. Rights Agreement. The Company specifically represents,
warrants and agrees that, in accordance with Section 1 of the Rights Agreement
between the Company and the First National Bank of Boston, dated April 19, 1995
(the "RIGHTS PLAN"), regardless of the number of Conversion Shares and Warrant
Shares of which each Buyer is deemed the Beneficial Owner (as defined in the
Rights Plan), none of the Buyers is intended to be or will be deemed to be an
Acquiring Person as defined by the Rights Plan because of the acquisition of the
Securities (including the Conversion Shares and the Warrant Shares) pursuant to
this Agreement, and the acquisition of the Securities (including the Conversion
Shares and the Warrant Shares) pursuant to this Agreement, shall not, under any
circumstances, trigger a Distribution Date as defined by the Rights Plan;
provided, however, that only Securities (including the Conversion Shares and the
Warrant Shares) acquired pursuant to this Agreement shall be deemed excluded
from the number of shares of Common Stock deemed beneficially owned by each
Buyer in determining whether such Buyer is an Acquiring Person within the
meaning of the Rights Plan.

               v. Year 2000 Compliance. The Company has initiated a review and
assessment of all areas within its and each Subsidiary's business and operations
that could be materially adversely affected by the "YEAR 2000 PROBLEM" (that is,
the risk that computer applications used by the Company or any of the
Subsidiaries may be unable to recognize and perform properly date-sensitive
functions involving certain dates prior to and any date after December 31,
1999). Based on the foregoing, the Company believes that the computer
applications that are material to its or any Subsidiary's business and
operations are reasonably expected to be able to perform properly date-sensitive
functions for all dates before and after January 1, 2000.

               w. 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(w) 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.

               x. 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 Subsidiaries 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.

                                       12
<PAGE>   13

               y. Environmental Laws. The Company and its Subsidiaries (i) are
in compliance in all material respects 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, except where the
failure to receive such permits, licenses or approvals would not, individually
or in the aggregate, have a Material Adverse Effect and (iii) are in compliance
in all material respects with all terms and conditions of any such permit,
license or approval, except where the failure to be in compliance or receive
such permits, licenses or approvals would not, individually or in the aggregate,
have a Material Adverse Effect.

               z. No Other Agreements. The Company has not, directly or
indirectly, made any agreements with any Buyer relating to the terms or
conditions of the transactions contemplated by the Transaction Documents except
as set forth in the Transaction Documents.

               aa. No Materially Adverse Contracts. Except as specifically
disclosed in the SEC Documents, or as set forth in Schedule 3(aa), neither the
Company nor any of its Subsidiaries is subject to any charter, corporate or
other legal restriction, or any judgment, decree, order, rule or regulation
which in the judgment of the Company's officers has or is expected in the future
to have a Material Adverse Effect. Except as specifically disclosed in the SEC
Documents, or as set forth in Schedule 3(aa), neither the Company nor any of its
Subsidiaries is a party to any contract or agreement which in the judgment of
the Company's officers has or is expected to have a Material Adverse Effect.

        4. COVENANTS.

               a. Best Efforts. Each party hereto shall use its best efforts to
satisfy timely each of the conditions to be satisfied by it as provided in
Sections 6 and 7 of this Agreement.

               b. Form D and Blue Sky. The Company agrees to file a Form D with
respect to the Securities as required under Regulation D and to provide a copy
thereof to each Buyer promptly after such filing. The Company shall, on or
before the Closing Date, take such action as the Company shall reasonably
determine is necessary to qualify the Securities for, or obtain exemption for
the Securities for, sale to each Buyer at the Closing 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 such Buyer on
or prior to the Closing Date. The Company shall make all filings and reports
relating to the offer and sale of the Securities required under applicable
securities or "Blue Sky" laws of the states of the United States following the
Closing Date.

               c. Reporting Status. Until the earlier of (i) the date which is
one year after the date on which each Investor (as that term is defined in the
Registration Rights Agreement) may sell all of the Conversion Shares and the
Warrant Shares acquired by such Investor without restriction pursuant to Rule
144(k) promulgated under the 1933 Act (or successor thereto) and

                                       13
<PAGE>   14

(ii) the date on which (A) each Investor shall have sold all the Conversion
Shares and the Warrant Shares acquired by such Investor and (B) none of the
Preferred Shares or Warrants is outstanding (the "REPORTING PERIOD"), the
Company shall file all reports required to be filed with the SEC pursuant to the
1934 Act, and the Company shall not terminate its status as an issuer required
to file reports under the 1934 Act even if the 1934 Act or the rules and
regulations thereunder would otherwise permit such termination.

               d. Use of Proceeds. The Company will use the proceeds from the
sale of the Preferred Shares for substantially the same purposes and in
substantially the same amounts as indicated in Schedule 4(d).

               e. Financial Information. The Company agrees to send the
following to each Investor during the Reporting Period: (i) unless filed and
available through the SEC's EDGAR system, within two (2) Business Days after the
filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its
Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any
registration statements (other than on Form S-8) or amendments thereto filed
pursuant to the 1933 Act; (ii) on the same day as the release thereof, facsimile
copies of all press releases issued by the Company or any of its Subsidiaries
(or the day after, if released through a recognized wire service) and (iii)
copies of any notices and other information made available or given to the
stockholders of the Company generally, contemporaneously with the making
available or giving thereof to the stockholders.

               f. Reservation of Shares. The Company shall take all action
necessary to at all times have authorized, and reserved for the purpose of
issuance, no less than the sum of (A) 200% of the number of shares of Common
Stock needed to provide for the issuance of the Conversion Shares and (B) 100%
of the number of shares of Common Stock needed to provide for the issuance of
the Warrant Shares (without regard to any limitations on conversions or exercise
thereof).

               g. Proxy Statement. The Company shall provide each stockholder
entitled to vote at the next meeting of stockholders of the Company, which
meeting shall occur on or before the earlier of (A) the date which is 75 days
after the Proxy Statement Triggering Date (as defined below) and (B) the date on
which the Company holds its next annual meeting of stockholders, which date
shall be no later than December 15, 2000 (the "STOCKHOLDER MEETING DEADLINE"), a
proxy statement, which has been previously reviewed by each Buyer and Legal
Counsel (as defined in the Registration Rights Agreement), soliciting each such
stockholder's affirmative vote at such stockholder meeting for approval of the
Company's issuance of all of the Securities as described in this Agreement (such
affirmative vote being referred to as the "STOCKHOLDER APPROVAL"), and the
Company shall use its best efforts to (i) solicit its stockholders' approval of
such issuance of the Securities and (ii) cause the Board of Directors of the
Company to recommend to the stockholders that they approve such proposal. If the
Company fails to hold a meeting of its stockholders by the Stockholder Meeting
Deadline, then, as partial relief (which remedy shall not be exclusive of any
other remedies available at law or in equity), the Company shall pay to each
holder of Preferred Shares an amount in cash per Preferred Share held by such
holder equal to the product of (i) $1,000; multiplied by (ii) 0.02; multiplied
by (iii) the quotient

                                       14
<PAGE>   15

of (x) the number of days after the Stockholder Meeting Deadline that a meeting
of the Company's stockholders is not held, divided by (y) 30. The Company shall
make the payments referred to in the immediately preceding sentence within five
days of the earlier of (I) the holding of the meeting of the Company's
stockholders, the failure of which resulted in the requirement to make such
payments, and (II) the last day of each 30-day period beginning on the
Stockholder Meeting Deadline. In the event the Company fails to make such
payments in a timely manner, such payments shall bear interest at the rate of
2.0% per month (pro rated for partial months) until paid in full. "PROXY
STATEMENT TRIGGERING DATE" shall mean the first date after the date of this
Agreement on which during the five consecutive trading days ending on and
including such date of determination there are three trading days on which the
sum of (A) the number of shares of Common Stock previously issued upon
conversion of any Preferred Shares and (B) the number of shares of Common Stock
issuable upon conversion of all the outstanding Preferred Shares based on the
Conversion Price in effect on the date of such determination (without regard to
any limitation upon the conversion of any Preferred Shares), equals or exceeds
18% of the number of shares of Common Stock issued and outstanding immediately
prior to the Closing Date.

               h. Listing. The Company shall promptly secure the listing of all
of the Registrable Securities (as defined in the Registration Rights Agreement)
upon each national securities exchange and automated quotation system (including
the Nasdaq National Market), 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
Registrable Securities from time to time issuable under the terms of the
Transaction Documents and the Certificate of Designations. The Company shall use
its best efforts to maintain the Common Stock's authorization for listing on the
Nasdaq National Market or The New York Stock Exchange, Inc.("NYSE"). Neither the
Company nor any of its Subsidiaries shall take any action which may result in
the delisting or suspension of the Common Stock on the Nasdaq National Market or
NYSE (other than to switch listings from the Nasdaq National Market to NYSE).
The Company shall promptly, and in no event later than the following Business
Day, offer to provide to each Buyer copies of any notices it receives from the
Nasdaq National Market or NYSE regarding the continued eligibility of the Common
Stock for listing on such automated quotation system or securities exchange, but
only if such notices shall not contain any material nonpublic information. The
Company shall pay all fees and expenses in connection with satisfying its
obligations under this Section 4(h).

               i. Expenses. Subject to Section 9(l) below, at the Closing, the
Company shall pay an expense allowance of $50,000 to HFTP Investment L.L.C. (a
Buyer), which amount shall be withheld by such Buyer from its Purchase Price.

               j. Transactions With Affiliates. So long as (i) at least 2,500
Preferred Shares are outstanding, (ii) or Warrants to purchase at least 151,975
shares of Common Stock are outstanding or (iii) any Buyer owns Conversion Shares
or Warrant Shares with a market value of at least $2,500,000, the Company shall
not, and shall cause each of its Subsidiaries not to, enter into, amend, modify
or supplement, or permit any Subsidiary to enter into, amend, modify or
supplement, any agreement, transaction, commitment or arrangement with any of
its or any Subsidiary's officers, directors, persons who were officers or
directors at any time during the

                                       15
<PAGE>   16

previous two years, stockholders who beneficially own 5% or more of the Common
Stock, or Affiliates or with any individual related by blood, marriage or
adoption to any such individual or with any entity in which any such entity or
individual owns a 5% or more beneficial interest (each a "RELATED Party"),
except for (a) customary employment arrangements, benefit programs and outside
director compensation arrangements on reasonable terms, (b) any agreement,
transaction, commitment or arrangement which is approved by a majority of the
disinterested directors of the Company or (c) any agreement, transaction,
commitment or arrangement on an arms-length basis on terms no less favorable
than terms which would have been obtainable from a person other than such
Related Party. For purposes hereof, any director who is also an officer of the
Company or any Subsidiary of the Company shall not be a disinterested director
with respect to any such agreement, transaction, commitment or arrangement.
"AFFILIATE" for purposes hereof means, with respect to any person or entity,
another person or entity that, directly or indirectly, (i) has a 5% or more
equity interest in that person or entity, (ii) has 5% or more common ownership
with that person or entity, (iii) controls that person or entity, or (iv) shares
common control with that person or entity. "CONTROL" or "controls" for purposes
hereof means that a person or entity has the power, direct or indirect, to
conduct or govern the policies of another person or entity.

               k. Filing of Form 8-K. On or before the first (1st) Business Day
following the Closing Date, the Company shall file a Form 8-K with the SEC
describing the terms of the transaction contemplated by the Transaction
Documents and consummated at the Closing and including as exhibits to such Form
8-K this Agreement, the Certificate of Designations, the Registration Rights
Agreement and the Form of Warrant, in the form required by the 1934 Act.

               l. Corporate Existence. So long as any Buyer beneficially owns
any Preferred Shares or Warrants, the Company shall maintain its corporate
existence and shall not sell all or substantially all of the Company's assets,
except in the event of a merger or consolidation or sale of all or substantially
all of the Company's assets, where the surviving or successor entity in such
transaction (i) assumes the Company's obligations hereunder and under the
agreements and instruments entered into in connection herewith and (ii) is a
publicly traded corporation whose common stock is listed for trading on the
Nasdaq National Market or NYSE.

               m. Mandatory Conversion or Redemption. On or before the date
which is 183 days after the Closing Date, the Company (i) shall deliver to each
Buyer one or more Company's Conversion Election Notices or Notices of Redemption
at Company's Election (as each such term is defined in the Certificate of
Designations) for the conversion or redemption, respectively, of an aggregate of
at least 25% of the Preferred Shares purchased by such Buyer at the Closing,
subject to the satisfaction of the conditions set forth in Sections 7 and 6,
respectively, of the Certificate of Designations, (ii) shall comply with its
obligations under Sections 7 and 6 of the Certificate of Designations with
respect to the Company's Conversion Election Notices and Notices of Redemption
at Company's Election, respectively, referred to in the preceding clause (i),
and (iii) shall not have delivered any Company's Mandatory Conversion Period
Termination Notice (as defined in the Certificate of Designations) with respect
to a Company's Conversion Election Notice referred to in clause (i) above. On or
before the date which is 274 days after the Closing Date, the Company (A) shall
deliver to each Buyer one or more Company's Conversion Election Notices or
Notices of Redemption at Company's Election for the conversion or

                                       16
<PAGE>   17

redemption, respectively, of an aggregate total, when cumulated with the number
of shares converted or redeemed pursuant to the first sentence of this Section
4(m) for such Buyer, of 50% of the Preferred Shares purchased by such Buyer at
the Closing, subject to the satisfaction of the conditions set forth in Sections
7 and 6, respectively, of the Certificate of Designations, (B) shall comply with
its obligations under Sections 7 and 6 of the Certificate of Designations with
respect to the Company's Conversion Election Notices and Notices of Redemption
at Company's Election, respectively, referred to in the preceding clause (A),
and (C) shall not have delivered any Company's Mandatory Conversion Period
Termination Notice with respect to a Company's Conversion Election Notice
referred to in clause (A) above. Notwithstanding the above, for every day that
the Company is unable to issue shares of Common Stock to a holder of Preferred
Shares as a result of the limitation contained in Section 5 of the Certificate
of Designations, the deadlines contained in the first two sentences of this
Section 4(m) shall be extended solely with respect to such holder by one (1)
day.

               n. Material Information Disclosure. The Company will publicly
disclose the Material Information on or before January 20, 2000.

        5. TRANSFER AGENT INSTRUCTIONS.

                                       17
<PAGE>   18

               The Company shall issue irrevocable instructions to its transfer
agent, and any subsequent transfer agent, to issue certificates, registered in
the name of each Buyer or its respective nominee(s), for the Conversion Shares
and the Warrant Shares in such amounts as specified from time to time by each
Buyer to the Company upon conversion of the Preferred Shares or exercise of the
Warrants (in the form attached hereto as Exhibit E, the "IRREVOCABLE TRANSFER
AGENT INSTRUCTIONS") unless such issuance is prohibited by Section 5 or Section
15 of the Certificate of Designations. Prior to registration of the Conversion
Shares and the Warrant Shares under the 1933 Act, all such certificates shall
bear the restrictive legend specified in Section 2(g) of this Agreement. The
Company warrants that no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section 5, and stop transfer instructions to
give effect to Section 2(f) hereof (in the case of the Conversion Shares and the
Warrant Shares, prior to registration of the Conversion Shares and the Warrant
Shares under the 1933 Act) will be given by the Company to its transfer agent
with respect to the Warrants Shares and Conversion Shares and that the
Securities 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. If a Buyer provides the Company with an opinion of counsel, in
a form reasonably satisfactory to the Company, that registration of a resale by
such Buyer of any of such Securities is not required under the 1933 Act or such
Buyer provides the Company with reasonable assurance that the Securities can be
sold pursuant to Rule 144, the Company shall permit the transfer, and, in the
case of the Conversion Shares and the Warrant Shares, promptly instruct its
transfer agent to issue one or more certificates in such name and in such
denominations as specified by such Buyer and without any restrictive legends.
The Company acknowledges that a breach by it of its obligations hereunder will
cause irreparable harm to the affected Buyer by vitiating the intent and purpose
of the transactions contemplated hereby. Accordingly, the Company acknowledges
that the remedy at law for a breach of its obligations under this Section 5
would be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Section 5, that the affected Buyer shall
be entitled, in addition to all other available remedies, to an injunction
restraining any breach and requiring immediate issuance and transfer, without
the necessity of showing economic loss and without any bond or other security
being required.

                6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

               The obligation of the Company hereunder to issue and sell the
Preferred Shares and the related Warrants to each Buyer at the Closing is
subject to the satisfaction, at or before the Closing 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 each Buyer with prior written notice thereof:

               (i) Such Buyer shall have executed each of this Agreement and the
        Registration Rights Agreement and delivered the same to the Company.

               (ii) Such Buyer shall have delivered to the Company the Purchase
        Price (less, with respect to HFTP Investment L.L.C., the amounts
        withheld pursuant to Section 4(i)) for the Preferred Shares and the
        related Warrants being purchased by such Buyer at the

                                       18
<PAGE>   19

        Closing by wire transfer of immediately available funds pursuant to the
        wire instructions provided by the Company.

               (iii) The representations and warranties of such Buyer contained
        herein shall be true and correct as of the date when made and as of the
        Closing Date as though made at that time (except for representations and
        warranties that speak as of a specific date), and such Buyer 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 such Buyer at or prior to the Closing
        Date.

        7. CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.

               The obligation of each Buyer hereunder to purchase the Preferred
Shares and the related Warrants at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided
that these conditions are for such Buyer's sole benefit and may be waived by
such Buyer at any time in its sole discretion by providing the Company and each
Buyer with prior written notice thereof:

               (i) The Company shall have executed each of the Transaction
        Documents, and delivered the same to such Buyer.

               (ii) The Certificate of Designations shall have been filed with
        the Secretary of State of the State of Delaware, and a copy thereof
        certified by the Secretary of State of the State of Delaware shall have
        been delivered to such Buyer.

               (iii) The Common Stock shall be designated for quotation on the
        Nasdaq National Market or listed on NYSE and shall not have been
        suspended from trading on or delisted from such exchanges nor shall
        delisting or suspension by such exchanges have been threatened either
        (A) in writing by such exchanges or (B) by falling below the minimum
        listing maintenance requirements of such exchanges. The Company shall
        have complied with the listing requirements of the Nasdaq National
        Market for the Conversion Shares and the Warrant Shares issuable upon
        conversion or exercise of the Preferred Shares and the related Warrants,
        as the case may be.

               (iv) The representations and warranties of the Company contained
        herein shall be true and correct as of the date when made and as of the
        Closing 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 and the Certificate of
        Designations to be performed, satisfied or complied with by the Company
        at or prior to the Closing Date. Such Buyer shall have received a
        certificate, executed by the Chief Executive Officer of the Company,
        dated as of the Closing Date, to the foregoing effect and as to such
        other matters as such Buyer may reasonably request, including, without
        limitation, an update as of the Closing Date regarding the
        representation contained in Section 3(c) above.

                                       19
<PAGE>   20

               (v) Such Buyer shall have received the opinion of Wilson Sonsini
        Goodrich & Rosati dated as of the Closing Date, in substantially the
        form of Exhibit D, attached hereto.

               (vi) The Company shall have executed and delivered to such Buyer
        the Stock Certificates for the Preferred Shares and the related Warrants
        being purchased by such Buyer at the Closing.

               (vii) The Board of Directors of the Company shall have adopted
        resolutions consistent with Section 3(b) above in a form reasonably
        acceptable to such Buyer (the "RESOLUTIONS").

               (viii) As of the Closing Date, the Company shall have reserved
        out of its authorized and unissued Common Stock, solely for the purpose
        of effecting the conversion of the Preferred Shares and exercise of the
        Warrants, at least 9,101,388 shares of Common Stock.

               (ix) 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's transfer agent.

               (x) The Company shall have delivered to such Buyer a certificate
        evidencing the incorporation and good standing of the Company and each
        Subsidiary in such corporation's state of organization issued by the
        Secretary of State of such state as of a date within ten days of the
        Closing Date.

               (xi) The Company shall have delivered to such Buyer a secretary's
        certificate, dated as of the Closing Date, certifying as to (A) the
        Resolutions, (B) the Certificate of Incorporation and (C) the By-laws,
        each as in effect at the Closing Date.

               (xii) The Company shall have delivered to such Buyer a certified
        copy of its Certificate of Incorporation as certified by the Secretary
        of State of the State of Delaware within ten days of the Closing Date.

               (xiii) The Company shall have delivered to such Buyer a letter
        from the Company's transfer agent certifying the number of shares of
        Common Stock outstanding as of a date within five days of the Closing
        Date.

               (xiv) The Company shall have delivered to such Buyer such other
        documents relating to the transactions contemplated by the Transaction
        Documents as such Buyer or its counsel may reasonably request.

        8. INDEMNIFICATION. In consideration of each Buyer's execution and
delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the

                                       20
<PAGE>   21

Company's other obligations under the Transaction Documents and the Certificate
of Designations, the Company shall defend, protect, indemnify and hold harmless
each Buyer and each other holder of the Securities and all of their
stockholders, officers, directors, employees and direct or indirect investors
and any of the foregoing persons' 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 and documented
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 Certificate of Designations 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 the Certificate of Designations 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 (other
than a cause of action, suit or claim which is (x) brought or made by the
Company and (y) is not a shareholder derivative suit) and arising out of or
resulting from (i) the execution, delivery, performance or enforcement of the
Transaction Documents or the Certificate of Designations, (ii) any transaction
financed or to be financed in whole or in part, directly or indirectly, with the
proceeds of the issuance of the Securities or (iii) solely the status of such
Buyer or holder of the Securities as an investor in the Company. 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 Delaware shall govern all issues concerning the relative rights of
the Company and its stockholders. All other questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by the internal laws of the State of New York, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State
of New York or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of New York. Each party hereby
irrevocably submits to the non-exclusive jurisdiction of the state and federal
courts sitting in the City of New York, borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith 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

                                       21
<PAGE>   22

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.

               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 parties; 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 each Buyer, the Company, their
affiliates and persons acting on their behalf with respect to the matters
discussed herein. This Agreement 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 any 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
Buyers which purchased at least two-thirds (2/3) of the Preferred Shares on the
Closing Date, or their assigns or, if prior to the Closing Date, the Buyers
listed on the Schedule of Buyers as being obligated to purchase at least
two-thirds (2/3) of the Preferred Shares. No provision hereof may be waived
other than by an instrument in writing signed by the party against whom
enforcement is sought. No such amendment shall be effective to the extent that
it applies to less than all of the holders of the Preferred Shares or Warrants
then outstanding. No consideration shall be offered or paid to any person to
amend or consent to a waiver or modification of any provision of any of the
Transaction Documents or the Certificate of Designations unless the same
consideration also is offered to all of the parties to the Transaction Documents
or holders of the Securities, as the case may be.

               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 (1) Business 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:

                                       22
<PAGE>   23

        If to the Company:

               Auspex Systems, Inc.
               2300 Central Expressway
               Santa Clara, California 95050-2515
               Telephone: (408) 566-2000
               Facsimile: (408) 566-2020
               Attention: Chief Executive Officer

        With a copy to:

               Wilson Sonsini Goodrich & Rosati
               650 Page Mill Road
               Palo Alto, California 94304-1050
               Telephone: (650) 493-9300
               Facsimile: (650) 493-6811
               Attention: Henry P. Massey, Jr., Esq.

        If to the Transfer Agent:

               Boston EquiServe L.P.
               150 Royall Street
               Canton, MA 02021
               Telephone: (781) 575-4190
               Facsimile: (781) 575-2054
               Attention: Michael Simeoni

        If to a Buyer, to it at the address and facsimile number set forth on
the Schedule of Buyers, with copies to such Buyer's representatives as set forth
on the Schedule of Buyers, or at such other address and/or facsimile number
and/or to the attention of such other person(s) as the recipient party has
specified by written notice given to each other party five days prior to the
effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communications, (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, including any purchasers of the Preferred Shares and the related
Warrants. The Company shall not assign this Agreement or any rights or
obligations hereunder, including by merger or consolidation, except pursuant to
a Change of Control (as defined in Section 4(b) of the Certificate of
Designations) with respect

                                       23
<PAGE>   24

to which the Company is in compliance with its obligations under Sections 4(a)
and 4(b) of the Certificate of Designations, Section 9(b) of the Warrant and
Section 4(l) of this Agreement without the prior written consent of the Buyers
which purchased at least two-thirds (2/3) of the Preferred Shares on the Closing
Date, or their assigns. The rights under this Agreement are assignable by a
Buyer without the consent of the Company; provided, however, that any such
assignment shall not release such Buyer from its obligations hereunder unless
such obligations are assumed by such assignee and the Company has consented to
such assignment and assumption, which consent shall not be unreasonably
withheld. Notwithstanding anything to the contrary contained in the Transaction
Documents or the Certificate of Designations, Buyers shall be entitled to pledge
the Securities in connection with a bona fide margin account or other loan
secured by the Securities.

               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. Survival. Unless this Agreement is terminated under Section
9(l), the representations and warranties of the Company and each Buyer contained
in Sections 2 and 3, the agreements and covenants set forth in Sections 4, 5 and
9, and the indemnification provisions set forth in Section 8, shall survive the
Closing. Each Buyer shall be responsible only for its own representations,
warranties, agreements and covenants hereunder.

               j. Publicity. The Company and each Buyer shall have the right to
approve before issuance any press releases or any other public statements 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 with respect to such transactions as
the Company reasonably believes, after consulting with its counsel, to be
required by applicable law and regulations (although each 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).

               k. 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.

               l. Termination. In the event that the Closing shall not have
occurred with respect to a Buyer on or before one (1) Business Day after the
date hereof due to the Company's or a Buyer's failure to satisfy the conditions
set forth in Sections 6 and 7 above (and the non-breaching party's failure to
waive such unsatisfied condition(s)), the non-breaching party shall have the
option to terminate this Agreement with respect to such breaching party at the
close of business on such date without liability of any party to any other
party; provided, however, that if this Agreement is terminated pursuant to this
Section 9(l), the Company shall remain obligated

                                       24
<PAGE>   25

to reimburse a non-breaching Buyer for expenses up to the amount described in
Section 4(i) above.

               m. Placement Agent. The Company acknowledges that it has not
engaged a placement agent in connection with the sale of the Preferred Shares
and the Warrants. The Company shall be responsible for the payment of any
placement agent's fees or brokers' commissions relating to or arising out of the
transactions contemplated hereby. The Company shall pay, and hold each 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.

               n. 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.

               o. Remedies. Each Buyer and each holder of the Securities shall
have all rights and remedies set forth in the Transaction Documents and the
Certificate of Designations and all rights and remedies which such holders have
been granted at any time under any other agreement or contract and all of the
rights which such holders have under any law. Any person having any rights under
any provision of this Agreement shall be entitled to enforce such rights
specifically (without posting a bond or other security), to recover damages by
reason of any breach of any provision of this Agreement and to exercise all
other rights granted by law.

               p. Payment Set Aside. To the extent that the Company makes a
payment or payments to any Buyer hereunder or pursuant to the Registration
Rights Agreement, the Certificate of Designations or the Warrants or such Buyer
enforces or exercises its rights hereunder or thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise
restored to the Company or to a trustee, receiver or any other person under any
law (including, without limitation, any bankruptcy law, state or federal law,
common law or equitable cause of action), then, to the extent of any such
restoration, the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had
not been made or such enforcement or setoff had not occurred.

                                   * * * * * *

                                       25
<PAGE>   26

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

COMPANY:                                 BUYERS:

AUSPEX SYSTEMS, INC.                     HFTP INVESTMENT L.L.C.
                                         By: Promethean Asset Management, L.L.C.
                                         Its: Investment Manager
By: /s/ Bruce N. Moore
   ------------------------------
Name: Bruce N. Moore
Title: President and Chief               By:
       Executive Officer                    James F. O'Brien, Jr.
                                            Managing Member

                                         FISHER CAPITAL LTD.

                                         By:
                                            ------------------------------------
                                            Kenneth A. Simpler
                                            Its: Vice President

                                         WINGATE CAPITAL LTD.

                                         By:
                                            ------------------------------------
                                            Kenneth A. Simpler
                                            Its: Vice President

                                         LEONARDO, L.P.

                                         By:  ANGELO, GORDON & CO., L.P.
                                         Its:  General Partner

                                         By:
                                            ------------------------------------
                                         Name:
                                             -----------------------------------
                                         Its:
                                             -----------------------------------

<PAGE>   27

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>
                                                                        NUMBER
                                                                          OF       NUMBER OF
                                       INVESTOR ADDRESS                PREFERRED    WARRANT     INVESTOR'S REPRESENTATIVES' ADDRESS
    INVESTOR NAME                    AND FACSIMILE NUMBER               SHARES      SHARES             AND FACSIMILE NUMBER
----------------------      ---------------------------------------    ---------   ---------    -----------------------------------
<S>                         <C>                                         <C>         <C>         <C>
HFTP Investment L.L.C.      c/o Promethean Asset Management, L.L.C.     6,000       385,233     Promethean Investment Group, L.L.C.
                            750 Lexington Avenue, 22nd Floor                                    750 Lexington Avenue, 22nd Floor
                            New York, New York 10022                                            New York, New York 10022
                            Attn: James F. O'Brien, Jr.                                         Attn: James F. O'Brien, Jr.
                                  John M. Floegel                                                     John M. Floegel
                            Telephone: 212-702-5200                                             Telephone: 212-702-5200
                            Facsimile: 212-758-9334                                             Facsimile: 212-758-9334
                            Residence: New York
                                                                                                Katten Muchin & Zavis
                                                                                                525 West Monroe, Suite 1600
                                                                                                Chicago, Illinois  60661-3693
                                                                                                Attn: Robert J. Brantman, Esq.
                                                                                                Telephone: 312-902-5200
                                                                                                Facsimile: 312-902-1061

Fisher Capital Ltd.         c/o Citadel Investment Group, L.L.C.        6,820       437,881     Katten Muchin Zavis
                            225 West Washington Street                                          525 W. Monroe Street, Suite 1600
                            Chicago, Illinois 60606                                             Chicago, Illinois 60661-3693
                            Attention: Kenneth A.Simpler                                        Attn: Robert J. Brantman, Esq.
                            Facsimile: (312) 338-0780                                           Facsimile: (312) 902-1061
                            Telephone: (312) 696-2100                                           Telephone: (312) 902-5200
                            Residence: Illinois

Wingate Capital Ltd.        c/o Citadel Investment Group, L.L.C.        4,180       268,379     Katten Muchin Zavis
                            225 West Washington Street                                          525 W. Monroe  Street, Suite 1600
                            Chicago, Illinois 60606                                             Chicago, Illinois 60661-3693
                            Attention: Kenneth A. Simpler                                       Attn: Robert J. Brantman, Esq.
                            Facsimile: (312) 338-0780                                           Facsimile: (312) 902-1061
                            Telephone: (312) 696-2100                                           Telephone: (312) 902-5200
                            Residence: Illinois

Leonardo, L.P.              c/o Angelo, Gordon & Co., L.P.              8,000       513,643     c/o Angelo, Gordon & Co., L.P.
                            245 Park Avenue - 26th Floor                                        245 Park Avenue - 26th Floor
                            New York, New York 10167                                            New York, New York 10167
                            Attention: Gary Wolf or Ari Storch                                  Attn: Gary Wolf or Ari Storch
                            Facsimile: (212) 867-6449                                           Facsimile: (212) 867-6449
                            Telephone: (212) 692-2035                                           Telephone: (212) 692-2035
                            Residence: Cayman Islands
</TABLE>

<PAGE>   28

                                    SCHEDULES

Schedule of Buyers
Schedule 3(a)    -    Subsidiaries
Schedule 3(c)    -    Capitalization
Schedule 3(e)    -    Conflicts
Schedule 3(f)    -    SEC Documents
Schedule 3(g)    -    Material Changes
Schedule 3(h)    -    Litigation
Schedule 3(n)    -    Intellectual Property
Schedule 3(r)    -    Transactions with Affiliates
Schedule 3(w)    -    Liens
Schedule 3(aa)   -    Certain Agreements
Schedule 4(d)    -    Use of Proceeds

                                    EXHIBITS

Exhibit A        -    Form of Certificate of Designations
Exhibit B        -    Form of Warrant
Exhibit C        -    Form of Registration Rights Agreement
Exhibit D        -    Form of Company Counsel Opinion
Exhibit E        -    Form of Irrevocable Transfer Agent Instructions

<PAGE>   29

                                  SCHEDULE 3(a)

                                  SUBSIDIARIES

<TABLE>
<CAPTION>
      Name                                     Date of Incorporation     Place of Incorporation
      ------------------------------------------------------------------------------------------
<S>                                            <C>                       <C>
      Auspex Systems, Inc.                     05/18/93                  Delaware, USA
      Auspex International, Inc.               07/19/93                  California, USA
      Auspex Systems, Inc.                     07/02/93                  Quebec, Canada
      Auspex Systems Limited                   08/23/93                  Reading, United Kingdom
      Auspex Systems GmbH                      09/24/93                  Munich, Germany
      Auspex Systems S.A.                      12/23/93                  Paris, France
      Auspex Foreign Sales Corporation         08/23/92                  Barbados
      Alphatronix, Inc.                        08/24/87                  North Carolina, USA
                                               07/02/98                  Tokyo, Japan
      Auspex Kabushiki Kaisha (K.K.)
</TABLE>

The Company is in the process of qualifying to do business in the States of
Arizona, Maryland, Minnesota, North Carolina and Oregon. Auspex Systems sells
and markets its products, network data file servers, along with software and
service contracts in the States of Arizona, Maryland, Minnesota, North Carolina
and Oregon. In each of these states we have established sales offices with full
time sales and support personnel. Auspex leases the offices from a third party
in each of these states.

The Company is currently not in good standing in the Commonwealth of
Massachusetts as the required annual report was not filed with the Massachusetts
Secretary of State for the fiscal years ended June 30, 1998 and 1999. The
Company is in the process of filing such annual reports.

<PAGE>   30

                                  SCHEDULE 3(c)

                                 CAPITALIZATION

(i)     Preemptive Rights:  None

(ii)    Outstanding Debt Securities: None

(iii)   Outstanding options, warrants or other rights to purchase securities or
        contracts, commitments or arrangements to issue additional shares of
        capital stock:

        Stock Options Issued and Outstanding          4,171,879

        Stock Options Available to Issue              1,450,642

        ESPP Options Available to Issue                 685,764

(iv)    Agreements or arrangements to register Company securities: None

(v)     Outstanding securities containing any redemption or similar provisions
        or contract or arrangement to redeem a security: Stockholder Rights Plan

(vi)    Securities or instruments containing anti-dilution or similar provisions
        that will be triggered by the issuance of the securities: None

(vii)   Stock appreciation rights or "phantom stock" plans or arrangements: None

<PAGE>   31

                                  SCHEDULE 3(e)

                                    CONFLICTS

Pursuant to the terms of Section 7 of the Company's Loan and Security Agreement
with Foothill Capital Corporation, dated as of December 22, 1999, as modified by
that certain consent and waiver letter by Foothill Capital Corporation to the
Company, dated January 12, 1999, the Company has agreed not to pay dividends in
cash or to redeem any of its capital stock (a) at any time during which an Event
of Default (as defined in the Loan and Security Agreement) has occurred and is
continuing, or (b) if, after any redemption of Series B Convertible Preferred
Stock or payment of cash dividends to the holders thereof, the Company shall
have less than $15,000,000 of "Excess Availability" as defined in the Loan and
Security Agreement and generally described as the aggregate of unrestricted cash
and cash equivalents, plus unused availability under the credit facility (the
lesser of the Borrowing Base or $15,000,000, less the amount of outstanding
advances and letters of credit), minus the amount of the Company's accounts
payable that are more than 60 days past due.

<PAGE>   32

                                  SCHEDULE 3(f)

                                  SEC DOCUMENTS

<TABLE>
<CAPTION>
                  TYPE OF FILING                                 DATE OF FILING
-------------------------------------------------------------------------------
<S>                                                                 <C>
Annual Report on Form 10-K                                           9/24/98
                                                                    10/16/98
Schedule 14(a) and Definitive Proxy Statement
                                                                    11/12/98
Quarterly Report on Form 10-Q
                                                                     2/12/99
Quarterly Report on Form 10-Q
                                                                     5/12/99
Quarterly Report on Form 10-Q
                                                                     9/27/99
Annual Report on Form 10-K
                                                                    10/08/99
Schedule 14(a) and Definitive Proxy Statement

Quarterly Report on Form 10-Q                                       11/12/99
</TABLE>

<PAGE>   33

                                  SCHEDULE 3(g)

                                MATERIAL CHANGES
None

<PAGE>   34

                                  SCHEDULE 3(h)

                     PENDING OR THREATENED LITIGATION, ETC.

1.      Pending or threatened litigation:

The Company is not aware of any pending or threatened material litigation. The
NASD has initiated an inquiry regarding trading activity preceding the Company's
October 15, 1999 announcement of lower than expected earnings for the quarter
ended September 30, 1999. The Company is responding to requests for information
regarding the events leading up to the announcement.

2.      Certain securities litigation:

Stephen Cheyhel, a director of the Company, is one of several defendants named
in various shareholder lawsuits against Bay Networks, Inc. Mr. Cheyhel was the
Senior VP of Operations at Bay Networks.

Frank King, a director of the Company, is one of several defendants named in
various shareholder lawsuits against SystemsSoft, Inc. Mr. King was an officer
and director of SystemSoft, Inc.

<PAGE>   35

                                  SCHEDULE 3(n)

                              INTELLECTUAL PROPERTY

1.      Expired and expiring intellectual property rights:

        Patent number 5053945, System and Method for Performing a Multi-File
        Transfer Operation, will not expire within two years of this agreement
        but the Company will allow it to lapse through nonpayment of annuity
        fees as it has no perceived ongoing technological benefit.

2.      Intellectual property claims:

None

<PAGE>   36

                                  SCHEDULE 3(r)

                   TRANSACTIONS WITH AFFILIATES AND EMPLOYEES

None

<PAGE>   37

                                  SCHEDULE 3(w)

                                      LIENS

        The Company has entered into a $15,000,000 revolving line of credit
agreement with Foothill Capital Corporation dated December 22, 1999. The line of
credit is secured by the assets of the Company and reflected on the attached
Uniform Commercial Code Search Financing Statement by Comerica Bank-California
(which has been terminated in favor of Foothill Capital Corporation). In
addition, the Company has several equipment operating leases with parties set
forth on the attached Uniform Commercial Code Search.

<PAGE>   38

                             THE STATE OF CALIFORNIA
                                   BILL JONES
                               SECRETARY OF STATE
                                   SACRAMENTO

 CERTIFICATE REQUESTED ON:                                     DECEMBER 01, 1999

           AUSPEX SYSTEMS INC
           @ANY ADDRESS

  FINANCING STATEMENT FILED ON      MAY 25, 1990 AT 0800      FILE NO. 90-136373

           DEBTOR:             AUSPEX SYSTEMS INC
                               ###-##-####
                               2952 BUNKER HILL LANE
                               SANTA CLARA, CA

           SECURED PARTY:      ELLCO LEASING CORP
                               10251 VISTA SORRENTO PKWY
                               SAN DIEGO, CA'

           CONTINUATION:       FEB 02, 1995 AT 1252

  FINANCING STATEMENT FILED ON JUL 26, 1996 AT 1610          FILE NO. 9621160396

           DEBTOR:             AUSPEX SYSTEMS INC.
                               ###-##-####
                               5200 GREAT AMERICA PKWY
                               SANTA CLARA, CA 95054

           SECURED PARTY:       AT&T CAPITAL SERVICES CORP.
                                1830 W AIRFIELD OR
                                DALLAS FORT WORTH AIRPORT, TX 75261

  FINANCING STATEMENT FILED ON SEP o4, 1996 AT 1519          FILE NO, 9624960418

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               5200 GREAT AMERICA PARKWAY SANTA
                               CLARA, CA  95054

  CERTIFICATE: 99340-R-0313                   PAGE: 1

<PAGE>   39

                             THE STATE OF CALIFORNIA
                                   BILL JONES
                               SECRETARY OF STATE
                                   SACRAMENTO

  (CONTINUED)                     SEP 04, 1996 AT 1519       FILE NO. 9624960418

           SECURED PARTY:       AT&T CAPITAL CORPORATION
                                1830 W AIRFIELD DR
                                DALLAS FORT WORTH AIRPORT, TX 75261

  FINANCING STATEMENT FILED ON OCT 04, 1996 AT 0800          FILE NO. 9628260385

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               5200 GREAT AMERICA PKWY.
                               SANTA CLARA, CA 95054

           SECURED PARTY:      HEWLETT-PACKARD COMPANY FINANCE &
                               REMARKETING DIVISION
                               333 LOGUE AVE., BLDG. 32
                               MOUNTAIN VIEW, CA 94043

 FINANCING STATEMENT FILED ON DEC 14, 1998 AT 0800           FILE NO. 9835160752

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               2300 CENTRAL EXPRESSWAY
                               SANTA CLARA, CA 95050

           SECURED PARTY:      LYON CREDIT CORPORATION
                               400 PERIMETER CENTER TERRACE, #155
                               ATLANTA, GA 30346

                               LYON CREDIT CORPORATION
                               400 PERIMETER CENTER TERRACE #155
                               ATLANTA, GA 30346

                               LYON CREDIT CORPORATION
                               400 PERIMETER CENTER TERRACE #155
                               ATLANTA, GA 30346

                               MERRIMAK CAPITAL COMPANY LLC
                               60 GALLI OR SUITE T
                               NOVATO, CA 94949

<PAGE>   40

  CERTIFICATE: 99340-R-0313                   PAGE: 2

<PAGE>   41

                             THE STATE OF CALIFORNIA
                                   BILL JONES
                               SECRETARY OF STATE
                                   SACRAMENTO

  (CONTINUED)                   DEC 14, 1998 AT o8oo         FILE NO. 9835160752

                               NEWCOURT FINANCIAL
                               USA INC. 111 ANZA BLVD #200
                               BURLINGAME, CA 94010

                               NEWCOURT FINANCIAL USA, INC.
                               III MONUMENT CR #2700
                               INDIANAPOLIS, IN 46204

                               US BANCORP LEASING & FINANCIAL
                               7659 SW MOHAWK
                               TUALATIN, OR 97o62

                               US BANCORP LEASING & FINANCIAL
                               7659 SW MOHAWK
                               TUALATIN, OR 97o62

           ASSIGNMENT:         JAN 26, 1999 AT 1606
           ASSIGNMENT:         FEB 19, 1999 AT 0800
           ASSIGNMENT:         MAR 18, 1999 AT 0800
           ASSIGNMENT:         MAR 18, 1999 AT 0800
           ASSIGNMENT:         JUN 09, 1999 AT 0800
           ASSIGNMENT:         JUN 09, 1999 AT 0800
           ASSIGNMENT:         JUL 16, 1999 AT 0800
           RELEASE:            AUG 04, 1999 AT 0800

  FINANCING STATEMENT FILED ON FEB 01, 1999 AT 0800          FILE NO. 9904060630

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               ###-##-####
                               2300 CENTRAL EXPRESSWAY
                               SANTA CLARA, CA 95050

 CERTIFICATE: 99340-R-0313                    PAGE: 3

<PAGE>   42

                             THE STATE OF CALIFORNIA
                                   BILL JONES
                               SECRETARY OF STATE
                                   SACRAMENTO

  (CONTINUED)                    FEB 01, 1999 AT 0800        FILE NO. 9904060630

           SECURED PARTY:      SUN MICROSYSTEMS FINANCE
                               1401 PEARL ST SUITE 200
                               BOULDER, CO 80302

 FINANCING STATEMENT FILED ON MAR 01, 1999 AT 1534           FILE NO. 9906360832

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               ###-##-####
                               2800 SCOTT BLVD.
                               SANTA CLARA, CA 95050

           SECURED PARTY:      SUN MICROSYSTEMS FINANCE
                               5500 WAYZATA BLVD., SUITE 725
                               GOLDEN VALLEY, MN 55416

  FINANCING STATEMENT FILED ON APR 01, 1999 AT 0800          FILE NO. 99098609l2

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               ###-##-####
                               2300 CENTRAL EXPRESSWAY
                               SANTA CLARA, CA 95050

           SECURED PARTY:      TRANSAMERICA EQUIPMENT FINANCIAL SERVICES
                               CORPORATION
                               10975 BENSON DR
                               OVERLAND, KS  66210

  FINANCING STATEMENT FILED ON APR 13, 1999 AT 0800          FILE NO. 9911160972

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               2300 CENTRAL EXPRESSWAY
                               SANTA CLARA, CA 95050

  CERTIFICATE: 99340-R-0313                   PAGE: 4

<PAGE>   43

                             THE STATE OF CALIFORNIA
                                   BILL JONES
                               SECRETARY OF STATE
                                   SACRAMENTO

  (CONTINUED)                   APR 13, 1999 AT 0800         FILE NO. 9911160972

           SECURED PARTY:      COMERICA BANK-CALIFORNIA 55
                               ALMADEN BLVD M C 4043 SAN JOSE,
                               CA 95113

  FINANCING STATEMENT FILED ON MAY 04, 1999 AT 1151          FILE NO. 9912660721

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               ###-##-####
                               2300 CENTRAL EXPRESSWAY
                               SANTA CLARA, CA 95050

           SECURED PARTY:      THIRD STREET SERVICES, INC.
                               1646 N CALIFORNIA BLVD SUITE 510
                               WALNUT CREEK, CA 94596

           ASSIGNEE:           THE CIT GROUP/EQUIPMENT FINANCING, INC.
                               900 ASHWOOD PKWY 6TH FL
                               ATLANTA, GA 30338

 FINANCING STATEMENT FILED ON MAY 17, 1999 AT 1644           FILE NO. 9913860721

           DEBTOR:             AUSPEX SYSTEMS, INC.
                               ###-##-####
                               2300 CENTRAL EXPRESSWAY
                               SANTA CLARA, CA 95050

           SECURED PARTY:      THIRD STREET SERVICES, INC.
                               1646 IN CALIFORNIA BLVD SUITE 510
                               WALNUT CREEK, CA 94596

           ASSIGNEE:           CAPITAL ASSOCIATES INTERNATIONAL, INC.
                               7175 W JEFFERSON AVE SUITE 4000
                               LAKEWOOD, CO 80235

  CERTIFICATE: 99340-R-0313                   PAGE: 5

<PAGE>   44

                             THE STATE OF CALIFORNIA
                                   BILL JONES
                               SECRETARY OF STATE
                                   SACRAMENTO

  FINANCING STATEMENT FILED ON AUG 02, 1999 AT 0800          FILE NO. 9922660856
  DEBTOR:                      AUSPEX SYSTEMS, INC.
                               ###-##-####
                               2300 CENTRAL EXPRESSWAY
                               SANTA CLARA, CA 95050

           SECURED PARTY:      TRANSAMERICA EQUIPMENT FINANCIAL SERVICES
                               CORPORATION
                               10975 BENSON OR
                               OVERLAND PARK, Ks 66210

  FINANCING STATEMENT FILED ON AUG 02, 1999 AT 0800          FILE NO. 9922660875
  DEBTOR:                      AUSPEX SYSTEMS, INC.
                               ###-##-####
                               2300 CENTRAL EXPRESSWAY
                               SANTA CLARA, CA 95050

           SECURED PARTY:      TRANSAMERICA EQUIPMENT FINANCIAL SERVICES
                               CORPORATION
                               10975 BENSON DR
                               OVERLAND PARK, Ks 66210

 THE UNDERSIGNED FILING OFFICER HEREBY CERTIFIES THAT THE ABOVE LISTING IS A
 RECORD OF ALL PRESENTLY EFFECTIVE FINANCING STATEMENTS, TAX LIENS, ATTACHMENT
 LIENS AND JUDGMENT LIENS, INCLUDING ANY CHANGE DOCUMENTS RELATING TO THEM,
 WHICH NAME THE ABOVE DEBTOR AND ARE ON FILE IN MY OFFICE AS OF NOVEMBER 19,
 1999 AT 1700 HOURS.

                                                     BILL JONES
                                                     SECRETARY OF STATE

  CERTIFICATE: 99340-R-0313                   PAGE: 6

<PAGE>   45

                                SCHEDULE 3(a)(a)

                          MATERIALLY ADVERSE CONTRACTS

None

<PAGE>   46

                                  SCHEDULE 4(d)

                                 USE OF PROCEEDS

The Company will use the net proceeds of this transaction for working capital
and general corporate purposes. Pending such uses, the net proceeds to the
Company will be invested in investment-grade, interest-bearing securities.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}]]