Document:

REGISTRATION RIGHTS AGREEMENT

         REGISTRATION  RIGHTS  AGREEMENT dated this 27th day of September,  2000
(this  "Agreement"),  between  Adatom.com,  Inc., a Delaware  corporation,  with
principal  executive offices located at 920 Hillview Court, Suite 160, Milpitas,
California 95305 (the "Company"), and the other signatories hereto (the "Initial
Investors").

                               W I T N E S S E T H

         WHEREAS, upon the terms and subject to the conditions of the Securities
Purchase  Agreement  dated  as of a date  even  herewith,  between  the  Initial
Investors and the Company (the "Securities Purchase Agreement"), the Company has
agreed to issue and sell to the Initial  Investors  (I) 1,200 shares of Series B
Convertible Preferred Stock, $0.01 par value ("Preferred Stock") which, upon the
terms and  subject to the  conditions  of the  Certificate  of  Designations  of
Rights,  Preferences  and  Privileges and  Restrictions  of Series B Convertible
Preferred Stock (the "Certificate of Designations")  are convertible into shares
of common  stock,  $0.01 par value,  of the  Company  ("Common  Stock") and (ii)
warrants ("Warrants") to purchase 545,450 shares of Common Stock; and

         WHEREAS,  to induce the  Initial  Investors  to execute and deliver the
Securities Purchase Agreement, the Company has agreed to provide with respect to
the Common Stock issued or issuable upon  conversion of the Preferred  Stock and
exercise of the Warrants certain registration rights under the Securities Act;

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants  contained herein, the parties hereto,  intending to be legally bound,
hereby agree as follows:

         1.       DEFINITIONS.

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

                  (i)      "AFFILIATE"  of  any specified Person means any other
         Person who directly,  or indirectly through one or more intermediaries,
         is in control of, is  controlled  by, or is under common  control with,
         such specified  Person.  For purposes of this definition,  control of a
         Person means the power, directly or indirectly,  to direct or cause the
         direction  of the  management  and  policies of such Person  whether by
         contract,   securities,   ownership   or   otherwise;   and  the  terms
         "controlling" and "controlled" have the respective meanings correlative
         to the foregoing.

                  (ii)     "COMMISSION"  means  the   Securities  and   Exchange
         Commission.

                  (iii)    "EXCHANGE  ACT" means the  Securities Exchange Act of
         1934,  as  amended,  and the rules and  regulations  of the  Commission
         thereunder, or any similar successor statute.

                  (iv)     "INVESTORS"   means  the  Initial  Investors and  any
         transferee or assignee of  Registrable  Securities who agrees to become
         bound  by all  of  the  terms  and  provisions  of  this  Agreement  in
         accordance with Section 8 hereof.

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                  (v)      "MARKET PRICE" on any date of determination means the
         closing bid price of a share of Common Stock on such day as reported on
         the Nasdaq  SmallCap  Market  ("NASDAQ")  or, if such  security  is not
         listed or admitted to trading on the NASDAQ, on the principal  national
         security  exchange or quotation system on which such security is quoted
         or listed or admitted to trading  (including  the OTC Bulletin  Board),
         or, if not quoted or listed or  admitted  to  trading  on any  national
         securities  exchange or quotation system, the closing bid price of such
         security  on the  over-the-counter  market  on the day in  question  as
         reported  by the Pink  Sheets  LLC,  or a  similar  generally  accepted
         reporting service, or if not so available,  in such manner as furnished
         by any NASDAQ  member firm of the National  Association  of  Securities
         Dealers,  Inc.  selected from time to time by the Board of Directors of
         the Company for that  purpose,  or a price  determined in good faith by
         the Board of Directors of the Company as being equal to the fair market
         value thereof, as the case may be.

                  (vi)     "PERSON"    means    any   individual,   partnership,
         corporation,   limited   liability   company,   joint  stock   company,
         association,  trust,  unincorporated  organization,  or a government or
         agency or political subdivision thereof.

                  (vii)    "PROSPECTUS" means the prospectus (including" without
         limitation,  any preliminary  prospectus and any final prospectus filed
         pursuant  to Rule  424(b)  under  the  Securities  Act,  including  any
         prospectus  that  discloses  information   previously  omitted  from  a
         prospectus  filed as part of an  effective  registration  statement  in
         reliance  on Rule  430A  under  the  Securities  Act)  included  in the
         Registration  Statement,  as amended or  supplemented by any prospectus
         supplement  with respect to the terms of the offering of any portion of
         the Registrable Securities covered by the Registration Statement and by
         all other amendments and supplements to such prospectus,  including all
         material incorporated by reference in such prospectus and all documents
         filed  after  the date of such  prospectus  by the  Company  under  the
         Exchange Act and incorporated by reference therein.

                  (viii)   "REGISTRABLE   SECURITIES"  means  the  Common  Stock
         issued or issuable (i) upon  conversion of the Preferred Stock or (iii)
         upon exercise of the  Warrants;  provided,  however,  a share of Common
         Stock shall cease to be a  Registrable  Security  for  purposes of this
         Agreement when it no longer is a Restricted Security.

                  (ix)     "REGISTRATION    STATEMENT"  means   a   registration
         statement  of the  Company  filed  on an  appropriate  form  under  the
         Securities  Act  providing for the  registration  of, and the sale on a
         continuous or delayed  basis by the holders of, all of the  Registrable
         Securities pursuant to Rule 415 under the Securities Act, including the
         Prospectus contained therein and forming a part thereof, any amendments
         to such registration statement and supplements to such Prospectus,  and
         all  exhibits  and other  material  incorporated  by  reference in such
         registration statement and Prospectus.

                  (x)      "RESTRICTED  SECURITY"   means  any  share  of Common
         Stock issued or issuable  upon  conversion  of the  Preferred  Stock or
         exercise  of the  Warrants,  except  any such  share  that (i) has been
         registered  pursuant to an effective  registration  statement under the
         Securities  Act and sold in a  manner  contemplated  by the  Prospectus
         included in the  Registration  Statement,  (ii) has been transferred in
         compliance with the resale  provisions of Rule 144 under the Securities
         Act (or any successor provision thereto) or is transferable pursuant to
         paragraph  (k) of Rule 144 under the  Securities  Act (or any successor
         provision thereto), or (iii) otherwise has been

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         transferred  and a new share of Common  Stock not  subject to  transfer
         restrictions  under  the  Securities  Act has been  delivered  by or on
         behalf of the Company.

                  (xi)     "SECURITIES  ACT" means the  Securities  Act of 1933,
         as  amended,   and  the  rules  and,   regulations  of  the  Commission
         thereunder, or any similar successor statute.

         (b)      All  capitalized  terms used  and not defined  herein have the
respective meaning assigned to them in the Securities Purchase Agreement.

         2.       REGISTRATION.

         (A)      FILING  AND  EFFECTIVENESS  OF  REGISTRATION  STATEMENT.   The
Company  shall  prepare and file with the  Commission  by not later than 30 days
after the Closing  Date (as defined in the  Securities  Purchase  Agreement),  a
Registration  Statement  relating  to the  offer  and  sale  of the  Registrable
Securities  and shall use its best  efforts to cause the  Commission  to declare
such  Registration  Statement  effective under the Securities Act as promptly as
practicable  but not later than 90 days after the  Closing  Date,  assuming  for
purposes   hereof  a  Conversion   Price  (as  defined  in  the  Certificate  of
Designations)  of $0.25 per  share.  The  Company  shall not  include  any other
securities in the Registration  Statement  relating to the offer and sale of the
Registrable  Securities.  The  Company  shall  notify the Initial  Investors  by
written notice that such Registration  Statement has been declared  effective by
the Commission within one business day of such declaration by the Commission.

         (B)      REGISTRATION  DEFAULT. If the Registration  Statement covering
the Registrable  Securities or the Additional Registrable Securities (as defined
in Section 2 (d) hereof) required to be filed by the Company pursuant to Section
2(a) or 2(d)  hereof,  as the case may be, is not (i) filed with the  Commission
within  30  days  after  the  Closing  Date or (ii)  declared  effective  by the
Commission within 90 days after the Closing Date, or if the Commission  notifies
the Company in writing that it will not review the  Registration  Statement  and
the  Registration  Statement  is not  declared  effective  not later  than seven
business days thereafter (any of which, without duplication, an "Initial Date"),
then the Company shall make the payments to the Initial Investors as provided in
the next sentence as liquidated  damages and not as a penalty.  The amount to be
paid by the Company to the Initial  Investors (pro rated on a daily basis) shall
be determined as of each Computation Date, and such amount shall be equal to two
percent (2%) (the  "Liquidated  Damage Rate") of the Purchase Price per share of
Preferred  Stock (as  defined in the  Securities  Purchase  Agreement)  from the
Initial  Date to the first  Computation  Date and in the  event of late  filing,
three percent (3%) of the purchase price per share of Preferred  Stock for every
thirty (30) day period  thereafter  until the  Registration  Statement  has been
filed and in the event of late  effectiveness,  two percent (2%) of the purchase
price per share of Preferred  Stock for every thirty (30) day period  thereafter
until the Registration Statement has been declared effective. The full amount of
liquidated damages shall be paid by the Company to the Initial Investors by wire
transfer of immediately available funds within three days after each Computation
Date. The Company may pay the liquidation damages in additional shares of Common
Stock  based  upon  the  Market  Price  (so  defined  in  the   Certificate   of
Designations), as determined on the date of payment.

         As used in this Section 2 (b),  "Computation Date" means the date which
is 30 days after the Initial Date and, if the Registration Statement required to
be filed by the  Company  pursuant  to  Section  2(a) has not  theretofore  been
declared  effective  by the  Commission,  each date  which is 30 days  after the
previous  Computation  Date until such  Registration  Statement  is so  declared
effective.

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         Notwithstanding  the above,  if an  additional  Registration  Statement
covering  the  Additional  Registrable  Securities  (as defined in Section  2(d)
hereof)  required to be filed by the Company  pursuant to Section 2(d) hereof is
not filed with the  Commission  within 30 days after a request  from the Initial
Investors,  the  Company  shall  be  in  default  of  this  Registration  Rights
Agreement.

         If the  Company  does not remit the  damages to the Holder as set forth
above, the Company will pay the Holder reasonable costs of collection, including
attorneys fees, in addition to the liquidated  damages.  The registration of the
Securities  pursuant to this provision  shall not affect or limit Holder's other
rights or remedies as set forth in this Agreement.

         (C)      ELIGIBILITY FOR USE OF FORM S-3.  The  Company  agrees that at
such  time as it  meets  all the  requirements  for  the use of  Securities  Act
Registration  Statement  on Form S-3 it shall file all reports  and  information
required to be filed by it with the  Commission  in a timely manner and take all
such other action so as to maintain such eligibility for the use of such form.

         (D)      ADDITIONAL REGISTRATION STATEMENT.   If  the  number of shares
included in the  Registration  Statement is not  sufficient due to a decrease in
the Market Price of the Common Stock,  as  reasonably  determined by the Initial
Investors,  the Company shall, upon request from the Initial Investors,  file an
additional Registration Statement with the Commission for such additional number
of Registrable  Securities as would be issuable upon conversion of the Preferred
Stock at the time of such request (the "Additional Registrable Securities"),  in
addition to those  previously  registered.  The Company shall,  prepare and file
with the  Commission,  not later than the 30th day after such a request from the
Initial  Investors,  a Registration  Statement relating to the offer and sale of
such Additional  Registrable  Securities and shall use its best efforts to cause
the  Commission  to declare  such  Registration  Statement  effective  under the
Securities Act as promptly as  practicable  but not later than 90 days after the
filing  thereof,  or within  seven  business  days  after  being  advised by the
Commission  that the  Registration  Statement will not be reviewed.  The Company
shall not include any other securities in the Registration Statement relating to
the offer and sale of such additional Registrable Securities.

         (E)      PIGGY-BACK  REGISTRATIONS.   (i)  If  the  Company proposes to
register any of its  warrants,  Common Stock or any other shares of common stock
of the Company under the Securities  Act (other than a registration  (A) on Form
S-8 or S-4 or any  successor or similar  forms,  (B) relating to Common Stock or
any other  shares of common  stock of the  Company  issuable  upon  exercise  of
employee  share  options or in connection  with any employee  benefit or similar
plan of the Company or (C) in connection  with a direct or indirect  acquisition
by the Company of another Person or any  transaction  with respect to which Rule
145 (or any successor  provision) under the Securities Act applies),  whether or
not for sale for its own account,  it will each such time,  give prompt  written
notice at least 20 days prior to the anticipated filing date of the registration
statement relating to such registration to the Initial  Investors,  which notice
shall set forth such Initial Investors' rights under this Section 2(e) and shall
offer the Initial  Investors  the  opportunity  to include in such  registration
statement  such number of  Registrable  Securities as the Initial  Investors may
request.  Upon the written request of an Initial  Investors made within ten (10)
days after the receipt of notice from the Company  (which  request shall specify
the number of Registrable  Securities intended to be disposed of by such Initial
Investors),  the Company  will use its best  efforts to effect the  registration
under the Securities  Laws of all  Registrable  Securities  that the Company has
been so requested to register by the Initial Investors,  to the extent requisite
to permit the  disposition  of the  Registrable  Securities so to be registered;
provided, however, that (A) if such registration involves a public offering, the
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Initial  Investors must sell their  Registrable  Securities to the  underwriters
selected as provided in Section 2(f) hereof on the same terms and  conditions as
apply to the Company and (B) if, at any time after giving  written notice of its
intention to register any Registrable Securities pursuant to this

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Section 2 and prior to the effective date of the registration statement filed in
connection  with such  registration,  the Company shall determine for any reason
not to register  such  Registrable  Securities,  the Company  shall give written
notice  to the  Initial  Investors  and,  thereupon,  shall be  relieved  of its
obligation  to register  any  Registrable  Securities  in  connection  with such
registration.  The Company's obligations under this Section 2(e) shall terminate
on the date  that the  registration  statement  to be filed in  accordance  with
Section 2(a) is declared effective by the Commission.

         (ii) If a registration  pursuant to this Section 2(e) involves a public
offering and the managing  underwriter  thereof advises the Company that, in its
view,  the number of shares of Common Stock,  Warrants or other shares of Common
Stock  that the  Company  and the  Initial  Investors  intend to include in such
registration  exceeds the largest  number of shares of Common  Stock or Warrants
(including any other shares of Common Stock or Warrants of the Company) that can
be sold without having an adverse  effect on such public  offering (the "Maximum
Offering Size"), the Company will include in such registration, only that number
of shares of Common Stock or Warrants,  as  applicable,  such that the number of
Registrable  Securities  registered  does not exceed the Maximum  Offering Size,
with the  difference  between the number of shares in the Maximum  Offering Size
and the  number of shares to be issued by the  Company  to be  allocated  (after
including all shares to be issued and sold by the Company) among the Company and
the  Initial  Investors  pro  rata  on the  basis  of  the  relative  number  of
Registrable  Securities  offered for sale under such registration by each of the
Company and the Initial Investors.

         If as a result of the  proration  provisions of this Section 2 (e)(ii),
any Initial Investors is not entitled to include all such Registrable Securities
in such  registration,  such Initial Investors may elect to withdraw its request
to include any  Registrable  Securities  in such  registration.  With respect to
registrations  pursuant to this Section 2(e), the number of securities  required
to satisfy any underwriters,  over-allotment  option shall be allocated pro rata
among the Company and the Initial  Investors on the basis of the relative number
of securities  otherwise to be included by each of them in the registration with
respect to which such over-allotment option relates.

         (F)      UNDERWRITTEN  OFFERING.   If  the  offering  pursuant   to   a
Registration   Statement   contemplated  by  Section  2(e)  hereof  involves  an
underwritten  offering,  the  Investors who hold a  majority-in-interest  of the
Registrable  Securities  subject to such  underwritten  offering  shall have the
right  to  select  one  legal  counsel  to  represent  their  interests,  and an
investment  banker (or bankers)  and manager (or  managers)  to  administer  the
offering,  subject to the consent of the  Company  (which  consent  shall not be
unreasonably withheld).  The Investors who hold the Registrable Securities to be
included  in  such  underwriting  shall  pay  all  underwriting   discounts  and
commissions of such investment  banker (or bankers) and manager (or managers) so
selected in accordance with this Section 2(f) with respect to their  Registrable
Securities.

         3.      OBLIGATIONS OF THE COMPANY. In connection with the registration
of the Registrable Securities, the Company shall:

         (a)      Promptly  (i)  prepare  and  file  with  the  Commission  such
amendments (including  post-effective  amendments) to the Registration Statement
and  supplements to the Prospectus as may be necessary to keep the  Registration
Statement  continuously  effective and in compliance  with the provisions of the
Securities  Act applicable  thereto so as to permit the Prospectus  forming part
thereof to be current and useable by  Investors  for resales of the  Registrable
Securities  for a period of three years (such  period to be extended by a period
equal  to any  change  in the  Mandatory  Conversion  Date  (as  defined  in the
Certificate of Designations)  from the date on which the Registration  Statement
is first declared  effective by the Commission  (the  "Effective  Time") or such
shorter period that will terminate when all the Registrable  Securities  covered
by the Registration Statement have been sold pursuant

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thereto in accordance with the plan of distribution  provided in the Prospectus,
transferred  pursuant  to  Rule  144  under  the  Securities  Act  or  otherwise
transferred  in a manner  that  results in the  delivery of new  securities  not
subject to transfer  restrictions  under the Securities  Act (the  "Registration
Period") and (ii) take all lawful action such that each of (A) the  Registration
Statement and any amendment thereto does not, when it becomes effective, contain
an 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, not misleading
and (B) the  Prospectus  forming  part of the  Registration  Statement,  and any
amendment or supplement  thereto,  does not at any time during the  Registration
Period  include  an  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  under  which  they  were  made,  not
misleading.  Notwithstanding the foregoing  provisions of this Section 3(a), the
Company may, during the Registration  Period,  suspend the use of the Prospectus
for a period not to exceed 20 days (whether or not  consecutive) in any 12-month
period if the Board of  Directors of the Company  determines  in good faith that
because  of pending  mergers or other  business  combination  transactions,  the
planned  acquisition  or  divestiture  of  assets,  pending  material  corporate
developments  and similar events,  it is in the best interests of the Company to
suspend such use, and prior to or  contemporaneously  with  suspending such use,
the Company provides the Investors with written notice of such suspension, which
notice need not specify the nature of the event giving rise to such  suspension.
At the  end of any  such  suspension  period,  the  Company  shall  provide  the
Investors with written notice of the termination of such suspension;

         (b)      During the Registration  Period, comply with the provisions of
the  Securities  Act with respect to the  Registrable  Securities of the Company
covered by the Registration Statement until such time as all of such Registrable
Securities  have been  disposed of in  accordance  with the intended  methods of
disposition by the Investors as set forth in the Prospectus  forming part of the
Registration Statement or are no longer Registrable Securities;

         (c)(i)   Prior to the filing  with the  Commission of any  Registration
Statement (including any amendments thereto) and the distribution or delivery of
any Prospectus (including any supplements thereto), provide draft copies thereof
to the  Investors  and  reflect  in such  documents  all  such  comments  as the
Investors  (and their  counsel)  reasonably  may  propose  with regard to Holder
ownership and the Plan of Distribution included therein and (ii) furnish to each
Investor whose Registrable Securities are included in the Registration Statement
and its legal counsel identified to the Company,  (A) promptly after the same is
prepared and publicly distributed, filed with the Commission, or received by the
Company,  one copy of the  Registration  Statement,  each  Prospectus,  and each
amendment or supplement thereto, and (B) such number of copies of the Prospectus
and all amendments and  supplements  thereto and such other  documents,  as such
Investor may reasonably  request in order to facilitate  the  disposition of the
Registrable Securities owned by such Investor;

         (d)(i)   Register or qualify the Registrable Securities  covered by the
Registration  Statement  under  such  securities  or  "blue  sky"  laws  of such
jurisdictions  as  the  Investors  who  hold  a   majority-in-interest   of  the
Registrable  Securities being offered reasonably request,  (ii) prepare and file
in such jurisdictions such amendments (including  posteffective  amendments) and
supplements  to such  registrations  and  qualifications  as may be necessary to
maintain the effectiveness  thereof at all times during the Registration Period,
(iii) take all such other lawful  actions as may be  necessary to maintain  such
registrations and  qualifications in effect at all times during the Registration
Period,  and (iv) take all such other  lawful  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 (A)  qualify  to do  business  in any
jurisdiction  where it would not  otherwise  be required to qualify but for this
Section 3(d),(B) subject itself to general taxation in any such  jurisdiction or
(C) file a general consent to service of process in any such jurisdiction;

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         (e)      As  promptly as  practicable  after  becoming  aware  of  such
event, notify each Investor of the occurrence of any event, as a result of which
the  Prospectus  included  in the  Registration  Statement,  as then in  effect,
includes  an untrue  statement  of a material  fact or omits to state a material
fact required to be stated therein or necessary to make the statements  therein,
in light of the  circumstances  under which they were made, not misleading,  and
promptly  prepare an amendment to the  Registration  Statement and supplement to
the  Prospectus  to correct such untrue  statement  or  omission,  and deliver a
number of copies of such  supplement  and  amendment  to each  Investor  as such
Investor may reasonably request;

         (f)      As  promptly  as   practicable  after  becoming  aware of such
event, notify each Investor who holds Registrable  Securities being sold (or, in
the  event  of an  underwritten  offering,  the  managing  underwriters)  of the
issuance  by the  Commission  of any  stop  order  or  other  suspension  of the
effectiveness  of the Registration  Statement at the earliest  possible time and
take all lawful  action to effect the  withdrawal,  recession or removal of such
stop order or other suspension;

         (g(i)    Cause  all   the   Registrable  Securities  covered   by   the
Registration  Statement  to be  listed  on  the  principal  national  securities
exchange,  and  included in an  inter-dealer  quotation  system of a  registered
national securities association,  on or in which securities of the same class or
series issued by the Company are then listed or included;

         (h)      Maintain a transfer agent and registrar, which may be a single
entity, for the Registrable  Securities not later than the effective date of the
Registration Statement;

         (i)      Cooperate with the Investors who  hold Registrable  Securities
being offered to facilitate the timely  preparation and delivery of certificates
for the  Registrable  Securities  to be  offered  pursuant  to the  Registration
Statement and enable such  certificates for the Registrable  Securities to be in
such denominations or amounts,  as the case may be, as the Investors  reasonably
may request and  registered  in such names as the  Investor  may  request;  and,
within  three  business  days  after a  Registration  Statement  which  includes
Registrable  Securities  is declared  effective by the  Commission,  deliver and
cause legal counsel selected by the Company to deliver to the transfer agent for
the  Registrable  Securities  (with copies to the  Investors  whose  Registrable
Securities  are  included  in  such   Registration   Statement)  an  appropriate
instruction and, to the extent necessary, an opinion of such counsel;

         (j)      Take  all  such  other lawful  actions reasonably necessary to
expedite and  facilitate the  disposition by the Investors of their  Registrable
Securities  in accordance  with the intended  methods  therefor  provided in the
Prospectus which are customary under the circumstances;

         (k)      If required, make generally available to its security  holders
as soon as practicable,  but in any event not later than 18 months after (i) the
effective  date (as  defined in Rule  158(c)  under the  Securities  Act) of the
Registration  Statement,  and (ii)  the  effective  date of each  post-effective
amendment  to the  Registration  Statement,  as the  case  may be,  an  earnings
statement of the Company and its  subsidiaries  complying  with Section 11(a) of
the  Securities Act and the rules and  regulations of the Commission  thereunder
(including, at the option of the Company, Rule 158);

         (1)      In the  event of an  underwritten  offering, promptly  include
or incorporate  in a Prospectus  supplement or  post-effective  amendment to the
Registration  Statement such information as the managers reasonably agree should
be included therein and to which the Company does not reasonably object and make
all required filings of such Prospectus  supplement or post-effective  amendment
as soon as  practicable  after it is  notified  of the matters to be included or
incorporated in such Prospectus supplement or post-effective amendment;

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         (m)      Enter   into  such   customary   agreements    (including   an
underwriting  agreement  in  customary  form  in the  event  of an  underwritten
offering)  and take such other  lawful and  reasonable  action to  expedite  and
facilitate the registration and disposition of the Registrable  Securities,  and
in connection therewith,  if an underwriting  agreement is entered into, use its
best  efforts  to  cause  the same to  contain  indemnification  provisions  and
procedures substantially identical to those set forth in this Agreement;

         (n)(i)   Make  reasonably  available for  inspection  by Investors, any
underwriter  participating  in any  disposition  pursuant  to  the  Registration
Statement,  and  any  attorney,  accountant  or  other  agent  retained  by such
Investors or any such  underwriter  all relevant  financial  and other  records,
pertinent   corporate   documents   and   properties  of  the  Company  and  its
subsidiaries,  and (ii) cause the Company's officers, directors and employees to
supply  all  information  reasonably  requested  by such  Investors  or any such
underwriter,  attorney,  accountant or agent in connection with the Registration
Statement, in each case, as is customary for similar due diligence examinations;
provided,  however,  that  all  records,  information  and  documents  that  are
designated  in  writing  by  the  Company,   in  good  faith,  as  confidential,
proprietary  or  containing  any material  nonpublic  information  shall be kept
confidential by such Investors and any such underwriter, attorney, accountant or
agent (pursuant to an appropriate  confidentiality  agreement in the case of any
such  holder or agent),  unless  such  disclosure  is made  pursuant to judicial
process in a court  proceeding  (after first  giving the Company an  opportunity
promptly  to seek a  protective  order  or  otherwise  limit  the  scope  of the
information  sought to be  disclosed)  or is required  by law, or such  records,
information or documents  become  available to the public generally or through a
third party not in violation of an accompanying  obligation of  confidentiality;
and provided further that, if the foregoing inspection and information gathering
would otherwise disrupt the Company's  conduct of its business,  such inspection
and information  gathering shall, to the maximum extent possible, be coordinated
on behalf of the Investors and the other parties entitled thereto by one firm of
counsel  designed by and on behalf of the majority in interest of Investors  and
other parties;

         (o)      In  connection   with  any   underwritten  offering, make such
representations   and  warranties  to  the  Investors   participating   in  such
underwritten  offering and to the managers,  in form, substance and scope as are
customarily  made by the  Company  to  underwriters  in  secondary  underwritten
offerings;

         (p)      In connection with any underwritten  offering, obtain opinions
of counsel to the  Company  (which  counsel  and  opinions  (in form,  scope and
substance)  shall be reasonably  satisfactory to the managers)  addressed to the
underwriters,  covering  such  matters as are  customarily  covered in  opinions
requested in secondary underwritten offerings;

         (q)      In connection  with any  underwritten  offering,  obtain "cold
comfort" letters and updates thereof from the independent  public accountants of
the Company (and, if necessary,  from the independent  public accountants of any
subsidiary  of the Company or of any business  acquired by the Company,  in each
case for which  financial  statements and financial data are, or are required to
be,  included in the  Registration  Statement),  addressed  to each  underwriter
participating  in such  underwritten  offering (if such underwriter has provided
such letter,  representations  or documentation,  if any, required for such cold
comfort  letter to be so addressed),  in customary form and covering  matters of
the type  customarily  covered  in "cold  comfort"  letters in  connection  with
secondary underwritten offerings;

         (r)      In  connection  with  any  underwritten offering, deliver such
documents and  certificates  as may be reasonably  required by the managers,  if
any; and

         (s)      In  the  event  that  any  broker-dealer  registered under the
Exchange Act shall be an "Affiliate" (as defined in Rule 2729(b)(1) of the rules
and  regulations of the National  Association of Securities  Dealers,  Inc. (the
"NASD  Rules") (or any  successor  provision  thereto))  of the Company or has a
"conflict

                                       8

<PAGE>

of interest" (as defined in Rule  2720(b)(7) of the NASD Rules (or any successor
provision  thereto)) and such broker-dealer  shall underwrite,  participate as a
member  of  an  underwriting  syndicate  or  selling  group  or  assist  in  the
distribution  of  any  Registrable   Securities   covered  by  the  Registration
Statement,  whether  as a  holder  of  such  Registrable  Securities  or  as  an
underwriter,  a  placement  or sales  agent or a broker  or  dealer  in  respect
thereof, or otherwise,  the Company shall assist such broker-dealer in complying
with the requirements of the NASD Rules, including,  without limitation,  by (A)
engaging a "qualified  independent  underwriter" (as defined in Rule 2720(b)(15)
of the NASD Rules (or any successor  provision  thereto)) to  participate in the
preparation  of  the  Registration   Statement   relating  to  such  Registrable
Securities,  to exercise usual standards of due diligence in respect thereof and
to recommend  the public  offering  price of such  Registrable  Securities,  (B)
indemnifying  such  qualified  independent  underwriter  to  the  extent  of the
indemnification of underwriters  provided in Section 5 hereof, and (C) providing
such  information  to such  broker-dealer  as may be  required in order for such
broker-dealer to comply with the requirements of the NASD Rules.

         4.       OBLIGATIONS   OF   THE   INVESTORS.   In  connection  with the
registration  of the  Registrable  Securities,  the  Investors  shall  have  the
following obligations:

         (a)      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
promptly  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.  As
least seven days prior to the first anticipated  filing date of the Registration
Statement,  the Company shall promptly  notify each Investor of the  information
the Company  requires from each such Investor (the "Requested  Information")  if
such Investor elects to have any of its Registrable  Securities  included in the
Registration  Statement.  If at least two business days prior to the anticipated
filing date the Company  has not  received  the  Requested  Information  from an
Investor  (a  "Non-Responsive   Investor"),   then  the  Company  may  file  the
Registration   Statement  without  including  Registrable   Securities  of  such
Non-Responsive  Investor and have no further  obligations to the  Non-Responsive
Investor;

         (b)      Each Investor by its acceptance of the Registrable  Securities
agrees to cooperate  with the Company in  connection  with the  preparation  and
filing  of the  Registration  Statement  hereunder,  unless  such  Investor  has
notified  the  Company  in  writing  of  its  election  to  exclude  all  of its
Registrable Securities from the Registration Statement; and

         (c)      Each  Investor agrees  that,  upon  receipt of any notice from
the Company of the occurrence of any event of the kind described in Section 3(e)
or  3(f),  it shall  immediately  discontinue  its  disposition  of  Registrable
Securities  pursuant to the  Registration  Statement  covering such  Registrable
Securities  until such Investor's  receipt of the copies of the  supplemented or
amended  Prospectus  contemplated  by Section  3(e) and,  if so  directed by the
Company,  such  Investor  shall  deliver to the  Company  (at the expense of the
Company) or destroy (and deliver to the Company a  certificate  of  destruction)
all  copies in such  Investor's  possession,  of the  Prospectus  covering  such
Registrable Securities current at the time of receipt of such notice.

         5.       EXPENSES   OF   REGISTRATION.    All  expenses,   other   than
underwriting   discounts   and   commissions,   incurred  in   connection   with
registrations,  filings or qualifications  pursuant to Section 3, but including,
without  limitation,  all  registration,  listing,  and  qualifications.   fees,
printing and engraving fees,  accounting fees, and the fees and

                                       9

<PAGE>

disbursements   of  counsel  for  the  Company  and  the  reasonable   fees  and
disbursements of one firm of counsel to the holders of a majority in interest of
the  Registrable  Securities  (which  fees and  disbursements  shall not  exceed
$7,500) shall be borne by the Company.

         6.       INDEMNIFICATION AND CONTRIBUTION.

         (a)      Indemnification  by the Company.  The Company shall  indemnify
                  -------------------------------
and hold harmless each Investor and each underwriter,  if any, which facilitates
the disposition of Registrable Securities, and each of their respective officers
and directors and each person who controls such Investor or  underwriter  within
the meaning of Section 15 of the  Securities  Act or Section 20 of the  Exchange
Act (each such person being sometimes hereinafter referred to as an "Indemnified
Person") from and against any losses, claims,  damages or liabilities,  joint or
several,  to  which  such  Indemnified  Person  may  become  subject  under  the
Securities  Act or  otherwise,  insofar  as  such  losses,  claims,  damages  or
liabilities  (or actions in respect  thereof)  arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in any
Registration  Statement  or an omission or alleged  omission to state  therein 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,  or arise out of or are based  upon an untrue  statement  or alleged
untrue  statement of a material fact  contained in any Prospectus or an omission
or alleged  omission  to state  therein a material  fact  required  to be stated
therein  or  necessary  to make  the  statements  therein,  in the  light of the
circumstances under which they were made, not misleading; and the Company hereby
agrees to reimburse such  Indemnified  Person for all reasonable legal and other
expenses incurred by them in connection with investigating or defending any such
action or claim as and when such expenses are incurred;  provided, however, that
the Company shall not be liable to any such Indemnified  Person in any such case
to the extent that any such loss, claim, damage or liability arises out of or is
based upon (i) an untrue  statement or alleged  untrue  statement made in, or an
omission or alleged omission from, such Registration  Statement or Prospectus in
reliance  upon and in  conformity  with  written  information  furnished  to the
Company by such Indemnified Person expressly for use therein or (ii) in the case
of the  occurrence of an event of the type specified in Section 3(e), the use by
the Indemnified Person of an outdated or defective  Prospectus after the Company
has provided to such  Indemnified  Person an updated  Prospectus  correcting the
untrue  statement or alleged  untrue  statement or omission or alleged  omission
giving rise to such loss, claim, damage or liability.

         (b)      Indemnification  by  the  Investors  and  Underwriters.   Each
                  ------------------------------------------------------
Investor  agrees,  as a consequence  of the inclusion of any of its  Registrable
Securities in a  Registration  Statement,  and each  underwriter,  if any, which
facilitates  the  disposition  of  Registrable  Securities  shall  agree,  as  a
consequence  of  facilitating   such  disposition  of  Registrable   Securities,
severally and not jointly,  to (i) indemnify and hold harmless the Company,  its
directors  (including  any person who, with his or her consent,  is named in the
Registration  Statement as a director nominee of the Company),  its officers who
sign any  Registration  Statement  and each  person,  if any,  who  controls the
Company within the meaning of either Section 15 of the Securities Act or Section
20 of the Exchange Act,  against any losses,  claims,  damages or liabilities to
which the Company or such other persons may become subject, under the Securities
Act or otherwise,  insofar as such losses,  claims,  damages or liabilities  (or
actions in respect  thereof) arise out of or are based upon an untrue  statement
or alleged untrue  statement of a material fact  contained in such  Registration
Statement  or  Prospectus  or arise out of or are  based  upon the  omission  or
alleged  omission to state therein 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, in the case of the  Prospectus),  not misleading,  in each
case to the  extent,  but only to the  extent,  that such  untrue  statement  or
alleged  untrue  statement or omission or alleged  omission was made in reliance
upon and in conformity with written information furnished to the Company by such
holder or underwriter  expressly for use therein, and (ii) reimburse the Company
for any legal or other  expenses  incurred  by the  Company in  connection  with
investigating  or  defending  any such  action  or claim  as such  expenses  are
incurred.

                                       10

<PAGE>

         (c)      Notice of Claims,  etc.   Promptly   after receipt by  a party
                  ----------------------
seeking  indemnification  pursuant to this Section 6 (an "Indemnified Party") of
written  notice  of any  investigation,  claim,  proceeding  or other  action in
respect  of which  indemnification  is  being  sought  (each,  a  "Claim"),  the
Indemnified  Party promptly shall notify the party against whom  indemnification
pursuant to this  Section 6 is being  sought (the  "Indemnifying  Party") of the
commencement thereof; but the omission to so notify the Indemnifying Party shall
not relieve it from any liability that it otherwise may have to the  Indemnified
Party, except to the extent that the Indemnifying Party is materially prejudiced
and  forfeits  substantive  rights and  defenses by reason of such  failure.  In
connection with any Claim,  the  Indemnifying  Party shall be entitled to assume
the defense thereof.  Notwithstanding the assumption of the defense of any Claim
by the Indemnifying  Party, the Indemnified Party shall have the right to employ
separate legal counsel and to participate in the defense of such Claim,  and the
Indemnifying  Party  shall bear the  reasonable  fees,  out-of-pocket  costs and
expenses of such separate  legal counsel to the  Indemnified  Party if (and only
if): (x) the  Indemnifying  Party shall have agreed to pay such fees,  costs and
expenses,  (y) the Indemnified Party and the Indemnifying Party shall reasonably
have concluded that  representation of the Indemnified Party by the Indemnifying
Party by the same legal  counsel would not be  appropriate  due to actual or, as
reasonably determined by legal counsel to the Indemnified Party, (i) potentially
differing  interests  between such parties in the conduct of the defense of such
Claim, or (ii) if there may be legal defenses available to the Indemnified Party
that are in addition to or disparate  from those  available to the  Indemnifying
Party and which can not be presented by counsel to the  Indemnifying  Party,  or
(z) the Indemnifying  Party shall have failed to employ legal counsel reasonably
satisfactory to the Indemnified  Party within a reasonable  period of time after
notice of the  commencement  of such Claim.  If the  Indemnified  Party  employs
separate legal counsel in circumstances  other than as described in clauses (x),
(y) or (z) above,  the fees,  costs and expenses of such legal  counsel shall be
borne  exclusively  by the  Indemnified  Party.  Except as provided  above,  the
Indemnifying  Party  shall  not,  in  connection  with  any  Claim  in the  same
jurisdiction,  be  liable  for the fees and  expenses  of more  than one firm of
counsel for the Indemnified Party (together with appropriate local counsel). The
Indemnifying  Party  shall  not,  without  the  prior  written  consent  of  the
Indemnifying Party (which consent shall not unreasonably be withheld), settle or
compromise  any  Claim or  consent  to the entry of any  judgment  that does not
include an unconditional  release of the Indemnifying Party from all liabilities
with respect to such Claim or judgment.

         (d)      Contribution.   If  the  indemnification  provided for in this
                  ------------
Section 6 is  unavailable  to or  insufficient  to hold harmless an  Indemnified
Person  under  subsection  (a) or (b) above in  respect of any  losses,  claims,
damages or liabilities (or actions in respect thereof) referred to therein, then
each  Indemnifying  Party shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, claims, damages or liabilities (or
actions in respect  thereof) in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and the Indemnified Party in connection
with the statements or omissions which resulted in such losses,  claims, damages
or liabilities  (or actions in respect  thereof),  as well as any other relevant
equitable  considerations.  The relative  fault of such  Indemnifying  Party and
Indemnified  Party shall be  determined  by reference  to,  among other  things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged  omission to state a material  fact relates to  information  supplied by
such Indemnified  Party or by such Indemnified  Party, and the parties' relative
intent,  knowledge,  access to information and opportunity to correct or prevent
such  statement or omission.  The parties hereto agree that it would not be just
and equitable if contribution  pursuant to this Section 6 (d) were determined by
pro rata allocation (even if the Investors or any  underwriters  were treated as
one entity for such purpose) or by any other method of allocation which does not
take account of the equitable  considerations  referred to in this Section 6(d).
The amount  paid or payable by an  Indemnified  Party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
shall be  deemed  to  include  any legal or other  fees or  expenses

                                       11

reasonably  incurred by such indemnified party in connection with  investigating
or  defending  any  such  action  or  claim.  No  person  guilty  of  fraudulent
misrepresentation  (within the meaning of Section 11(f) of the  Securities  Act)
shall be  entitled  to  contribution  from any person who was not guilty of such
fraudulent   misrepresentation.   The  obligations  of  the  Investors  and  any
underwriters  in this Section 6(d) to contribute  shall be several in proportion
to the percentage of Registrable  Securities registered or underwritten,  as the
case may be, by them and not joint.

         (e)      Notwithstanding  any other  provision  of  Section 6(d), in no
event shall any (i)  Investor be required to  undertake  liability to any person
under  Section  6(d) for any  amounts  in  excess  of the  dollar  amount of the
proceeds  to be  received  by such  Investor  from the  sale of such  Investor's
Registrable  Securities  (after  deducting any fees,  discounts and  commissions
applicable  thereto)  pursuant to any  Registration  Statement  under which such
Registrable  Securities  are to be registered  under the Securities Act and (ii)
underwriter be required to undertake  liability to any Person  hereunder for any
amounts in excess of the aggregate  discount,  commission or other  compensation
payable  to  such  underwriter  with  respect  to  the  Registrable   Securities
underwritten  by it and  distributed  pursuant  to the  Registration  Statement;
provided,  however,  in the event of fraud by the  Investor  (in the case of (i)
above) or underwriter (in the case of (ii) above), there shall be no such dollar
amount limitation.

         (f)      The  obligations  of  the Company  under this  Section 6 shall
be in addition to any  liability  which the  Company may  otherwise  have to any
Indemnified  Person and the  obligations  of any  Indemnified  Person under this
Section 6 shall be in addition to any liability  which such  Indemnified  Person
may otherwise have to the Company.  The remedies  provided in this Section 6 are
not exclusive and shall not limit any rights or remedies  which may otherwise be
available to an indemnified party at law or in equity.

         7.       RULE 144.  With a view to making  available  to the  Investors
the benefits of Rule 144 under the  Securities  Act or any other similar rule or
regulation of the  Commission  that may at any time permit the Investors to sell
securities of the Company to the public without  registration  ("Rule 144"), the
Company agrees to use its best efforts to:

         (a)      comply with  the provisions of paragraph (c) (1) of  Rule 144;
and

         (b)      file with the  Commission  in a timely manner all  reports and
other  documents  required to be filed by the Company  pursuant to Section 13 or
15(d) under the  Exchange  Act;  and, if at any time it is not  required to file
such reports but in the past had been required to or did file such  reports,  it
will,  upon the request of any  Holder,  make  available  other  information  as
required  by,  and so long as  necessary  to permit  sales of,  its  Registrable
Securities pursuant to Rule 144.

         8.       ASSIGNMENT.     The   rights  to  have  the  Company  register
Registrable  Securities  pursuant  to  this  Agreement  shall  be  automatically
assigned by the Investors to any  permitted  transferee of all or any portion of
such  securities (or all or any portion of any Preferred Stock or Warrant of the
Company which is convertible  into such  securities)  of Registrable  Securities
only if: (a) 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,  (b) the Company is,  within a
reasonable time after such transfer or assignment, furnished with written notice
of (i) the  name  and  address  of such  transferee  or  assignee  and  (ii) the
securities with respect to which such registration  rights are being transferred
or  assigned,  (c)  immediately  following  such  transfer  or  assignment,  the
securities so transferred  or assigned to the transferee or assignee  constitute
Restricted  Securities,  and (d) at or before the time the Company  received the
written  notice  contemplated  by clause (b) of this sentence the

                                       12

<PAGE>

transferee or assignee  agrees in writing with the Company to be bound by all of
the provisions contained herein.

         9.       AMENDMENT AND WAIVER.  Any  provision 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 hold a majority-interest of the
Registrable Securities. Any amendment or waiver effected in accordance with this
Section 9 shall be binding upon each Investor and the Company.

         10.      MISCELLANEOUS.

         (a)      A  person  or entity  shall  be  deemed  to  be  a  holder  of
Registrable  Securities  whenever  such  person  or entity  owns of record  such
Registrable  Securities.  If  the  Company  receives  conflicting  instructions,
notices or elections  from two or more  persons or entities  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)      Except as may be  otherwise  provided  herein,  any  notice or
other  communication  or delivery  required or permitted  hereunder  shall be in
writing and shall be delivered  personally  or sent by certified  mail,  postage
prepaid, or by a nationally  recognized  overnight courier service, and shall be
deemed given when so delivered  personally or by overnight courier service,  or,
if mailed,  three (3) days after the date of deposit in the United States mails,
as follows:

         (1)      if to the Company, to:

                  Adatom.com, Inc.
                  920 Hillview Court, Suite 160
                  Milpitas, California 95305
                  Attention: Richard Barton

         (2)      if to the Initial Investors, as set forth in the signature
                  pages of the Securities Purchase Agreement.

         (3)      if to any other Investor, at such address as such Investor
                  shall have provided in writing to the Company.

The Company,  the Initial  Investors  or any  Investor may change the  foregoing
address by notice given pursuant to this Section 10(c).

         (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)      This  Agreement  shall  be  governed  by  and  interpreted  in
accordance  with  the  laws of the  State  of  California.  Each of the  parties
consents to the jurisdiction of the federal courts whose districts encompass any
part of the City of San Francisco or the state courts of the State of California
sitting in the City of San  Francisco  in  connection  with any dispute  arising
under this Agreement and hereby waives,  to the maximum extent permitted by law,
any  objection  including any objection  based on forum non  conveniens,  to the
bringing of any such proceeding in such jurisdictions.

                                       13

<PAGE>

         (e)      The remedies  provided in this  Agreement  are  cumulative and
not exclusive of any remedies provided by law. If any term, provision,  covenant
or restriction of this Agreement is held by a court of competent jurisdiction to
be  invalid,  illegal,  void  or  unenforceable,  the  remainder  of the  terms,
provision,  covenants  and  restrictions  set forth  herein shall remain in full
force and effect and shall in no way be affected,  impaired or invalidated,  and
the  parties  hereto  shall  use  their  best  efforts  to find  and  employ  an
alternative  means to achieve the same or substantially  the same result as that
contemplated  by such term,  provision,  covenant or  restriction.  It is hereby
stipulated  and declared to be the intention of the parties that they would have
executed the remaining terms,  provisions,  covenants and  restrictions  without
including any of such that may be hereafter declared invalid,  illegal,  void or
unenforceable.

         (f)      The Company shall not enter  into any agreement  with  respect
to its securities  that  constitutes a breach of any of the  provisions  hereof.
Except as previously disclosed to the Investors,  the Company is not currently a
party to any agreement  granting any registration  rights with respect to any of
its  securities to any person which  conflicts  with the  Company's  obligations
hereunder  or gives any other party the right to include any  securities  in any
Registration  Statement  filed pursuant  hereto.  The Company shall not file any
registration  statement  after  the date  hereof  for the  resale  of any of its
securities  at any time prior to the 30th day of the filing of the  Registration
Statement, nor shall the Company cause any registration statement for the resale
of its securities to become  effective  prior to the 30th day after the date the
Registration Statement is declared effective.

         (g)      This  Agreement,  the  Securities  Purchase   Agreement,   the
Certificate of  Designations  and the Warrants  constitute the entire  agreement
among the parties hereto with respect to the subject matter hereof. There are no
restrictions,  promises, warranties or undertakings,  other than those set forth
or referred to herein. This Agreement,  the Securities  Purchase Agreement,  the
Certificate of Designations

                                       14

<PAGE>

and the Warrants  supersede  all prior  agreements  and  undertakings  among the
parties hereto with respect to the subject matter hereof.

         (h)      Subject   to   the  requirements  of   Section 8 hereof,  this
Agreement  shall inure to the benefit of and be binding upon the  successors and
assigns of each of the parties hereto.

         (i)      All   pronouns  and  any  variations  thereof  refer  to   the
masculine, feminine or neuter, singular or plural, as the context may require.
         (j)      The   headings in   this  Agreement  are  for  convenience  of
reference only and shall not limit or otherwise affect the meaning thereof.

         (k)      The   Company acknowledges  that any failure by the Company to
perform its obligations  under Section 3, or any delay in such performance could
result in direct  damages to the  Investors  and the  Company  agrees  that,  in
addition  to any  other  liability  the  Company  may have by reason of any such
failure or delay,  the Company shall be liable for all direct  damages caused by
such failure or delay.

         (l)      This Agreement may be executed in  two or   more counterparts,
each of which shall be deemed an original but all of which shall  constitute one
and the same agreement.  A facsimile transmission of this signed Agreement shall
be legal and binding on all parties hereto.

                                       15

<PAGE>

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

                                   ADATOM.COM, INC.

                                   By:/s/RICHARD S. BARTON
                                      ------------------------------------
                                      Name:  Richard S. Barton
                                      Title: President and CEO

                    BUYER

                                   Name:Alborz Select Opportunities Fund

                                   By:/s/Ali Moussavi
                                      ------------------------------------
                                      Name:  Ali Moussavi
                                      Title: Investment Manager

                    BUYER

                                   Name:Yasser Moustaffa
                                        ----------------------------------

                                   By:/s/Yasser Moustaffa
                                      ------------------------------------
                                      Name:
                                      Title:

                    BUYER

                                   Name:Target Growth Fund Ltd.
                                        ----------------------------------

                                   By:/s/George Stedman
                                      ------------------------------------
                                      Name:  George Stedman
                                      Title: President

                    BUYER

                                   Name:IIG Equity Opportunities Fund Ltd.
                                        ----------------------------------

                                       16

<PAGE>

                                   By:/s/Thomas LaVecchia
                                      ------------------------------------
                                      Name:  Thomas LaVecchia
                                      Title: Senior Director

                    BUYER

                                   Name:/s/Alain Salem
                                        ----------------------------------

                                   By:Alain Salem
                                      ------------------------------------
                                      Name:  Alain Salem
                                      Title:

                    BUYER

                                   Name:/s/Pietro Gattini
                                        ----------------------------------

                                   By:
                                      ------------------------------------
                                      Name:  Pietro Gattini
                                      Title:

                    BUYER

                                   Name/s/Magnolia Drive Investment Corp.
                                       -----------------------------------

                                   By:/s/Jacques Tizabi
                                      ------------------------------------
                                      Name:  Jacques Tizabi
                                      Title: President

                                       17THIS WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE NOT
              BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
            AMENDED, AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH
           ACT, THE RULES AND REGULATIONS THEREUNDER OR THE PROVISIONS
                                OF THIS WARRANT.

                   No. of Shares of Common Stock: ____________
Warrant No. AA-

                                     WARRANT

                           To Purchase Common Stock of

                                Adatom.com, Inc.

         THIS  IS TO  CERTIFY  THAT  ____________  ____________,  or  registered
assigns,  is entitled,  at any time prior to September 27, 2005 (the "Expiration
Date"),  to  purchase  from  Adatom.com,   Inc.,  a  Delaware  corporation  (the
"Company"),  ____________  shares of Common  Stock (as  hereinafter  defined and
subject to  adjustment as provided  herein),  in whole or in part, at a purchase
price per share of $.89375,  all on the terms and conditions and pursuant to the
provisions hereinafter set forth.

1.       DEFINITIONS
         -----------

         As used in this  Warrant,  the  following  terms  have  the  respective
meanings set forth below:

         "Additional  Shares of Common  Stock"  shall  mean all shares of Common
Stock issued by the Company after the Closing Date, other than Warrant Stock.

         "Business Day" shall mean any day that is not a Saturday or Sunday or a
day on which  banks  are  required  or  permitted  to be  closed in the State of
California.

         "Closing  Date"  shall  have the  meaning  set forth in the  Securities
Purchase Agreement.

         "Commission"  shall mean the Securities and Exchange  Commission or any
other federal  agency then  administering  the  Securities Act and other federal
securities laws.

         "Common   Stock"  shall  mean  (except  where  the  context   otherwise
indicates) the Common Stock,  $0.01 par value,  of the Company as constituted on
the  Closing  Date,  and any  capital  stock into which  such  Common  Stock may
thereafter  be changed,  and shall also include (i) capital stock of the Company
of any other  class  (regardless  of how  denominated)  issued to the holders of
shares of  Common  Stock  upon any  reclassification  thereof  which is also not
preferred as to dividends or assets over any other class of stock of the Company
and which is not subject to  redemption  and (ii) shares of common  stock of any
successor or acquiring  corporation received

<PAGE>

by or  distributed  to  the  holders  of  Common  Stock  of the  Company  in the
circumstances contemplated by Section 4.4.

         "Convertible  Securities" shall mean evidences of indebtedness,  shares
of stock or other securities which are convertible into or exchangeable, with or
without payment of additional  consideration in cash or property,  for shares of
Common Stock, either immediately or upon the occurrence of a specified date or a
specified event.

         "Current  Warrant  Price"  shall mean,  in respect of a share of Common
Stock at any date herein  specified,  the price at which a share of Common Stock
may be purchased pursuant to this Warrant on such date.

         "Exchange  Act"  shall mean the  Securities  Exchange  Act of 1934,  as
amended, or any successor federal statute,  and the rules and regulations of the
Commission thereunder, all as the same shall be in effect from time to time.

         "Exercise  Period"  shall mean the period  during which this Warrant is
exercisable pursuant to Section 2.1.

         "Expiration  Date"  shall  mean a date  five  (5)  years  from the date
hereof.

         "Fully  Diluted  Outstanding"  shall mean,  when used with reference to
Common  Stock,  at any date as of which the  number of shares  thereof  is to be
determined,  all shares of Common Stock  Outstanding at such date and all shares
of Common Stock  issuable in respect of this Warrant,  outstanding on such date,
and other  options or warrants to  purchase,  or  securities  convertible  into,
shares  of  Common  Stock  outstanding  on  such  date  which  would  be  deemed
outstanding in accordance  with GAAP for purposes of  determining  book value or
net income per share.

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

         "Holder"  shall mean the  Person in whose  name the  Warrant or Warrant
Stock set forth herein is registered on the books of the Company  maintained for
such purpose.

         "Market  Price" per Common  Share  means the  average of the two lowest
closing bid prices of the Common Shares on the NASDAQ SmallCap Market ("NASDAQ")
as reported by Bloomberg L.P. for the ten Trading Days immediately preceding the
Closing  Date,  or, if such security is not listed or admitted to trading on the
NASDAQ, on the principal national security exchange or quotation system on which
such  security is quoted or listed or admitted to trading,  or, if not quoted or
listed (including the OTC Bulletin Board) or admitted to trading on any national
securities exchange or quotation system, on the  over-the-counter  market on the
day in question  as  reported  by the Pink  Sheets  LLC, or a similar  generally
accepted reporting service, or if not so available,  in such manner as furnished
by any NASDAQ member firm of the National  Association  of  Securities  Dealers,
Inc.  selected  from time to time by the Board of  Directors  of the

                                       2

<PAGE>

Company for that  purpose,  or a price  determined in good faith by the Board of
Directors of the Company as being equal to the fair market value thereof, as the
case may be.

         "Other Property" shall have the meaning set forth in Section 4.4.

         "Outstanding"  shall mean, when used with reference to Common Stock, at
any date as of which the  number  of shares  thereof  is to be  determined,  all
issued  shares of Common  Stock,  except shares then owned or held by or for the
account of the Company or any subsidiary  thereof,  and shall include all shares
issuable  in  respect  of  outstanding  scrip or any  certificates  representing
fractional interests in shares of Common Stock.

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

         "Registration  Rights  Agreement"  shall mean the  Registration  Rights
Agreement  dated a date even  herewith  by and between the Company and the other
persons  signatory to the Securities  Purchase  Agreement,  as it may be amended
from time to time.

         "Restricted  Common Stock" shall mean shares of Common Stock which are,
or which upon their issuance on the exercise of this Warrant would be, evidenced
by a certificate bearing the restrictive legend set forth in Section 9.1(a).

         "Securities Act" shall mean the Securities Act of 1933, as amended,  or
any successor  federal statute,  and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

         "Securities  Purchase  Agreement"  shall mean the  Securities  Purchase
Agreement  by and between the Company  and the other  signatories  thereto  with
respect  to the  Company's  Series B  Convertible  Preferred  Stock as it may be
amended from time to time.

         "Transfer"  shall mean any  disposition of any Warrant or Warrant Stock
or of any  interest in either  thereof,  which would  constitute  a sale thereof
within the meaning of the Securities Act.

         "Transfer Notice" shall have the meaning set forth in Section 9.2.

         "Warrants"  shall  mean  this  Warrant  and all  warrants  issued  upon
transfer,  division or combination of, or in substitution for, any thereof.  All
Warrants  shall at all times be identical as to terms and  conditions  and date,
except  as to the  number of  shares  of  Common  Stock  for  which  they may be
exercised.

         "Warrant  Price" shall mean an amount equal to (i) the number of shares
of Common  Stock  being  purchased  upon  exercise of this  Warrant  pursuant to
Section 2.1, multiplied by (ii) the Current Warrant Price as of the date of such
exercise.

                                       3

<PAGE>

         "Warrant  Stock" shall mean the shares of Common Stock purchased by the
holders of the Warrants upon the exercise thereof.

2.       EXERCISE OF WARRANT
         -------------------

         2.1.     Manner of Exercise. At any time prior to 5:00 P.M., California
                  ------------------
time, on the Expiration Date, Holder may exercise this Warrant,  on any Business
Day, for all or any part of the number of shares of Common
Stock purchasable hereunder.

         In order to exercise  this Warrant,  in whole or in part,  Holder shall
deliver to the Company at its principal office at 920 Hillview Court, Suite 160,
Milpitas, California 95035, or at the office or agency designated by the Company
pursuant  to Section 12, (i) a written  notice of Holder's  election to exercise
this Warrant, which notice shall specify the number of shares of Common Stock to
be  purchased,  (ii) payment of the Warrant  Price in cash,  by wire transfer or
cashier's  check drawn on a United  States bank or by the Holder's  surrender of
Warrant  Stock  (or the  right to  receive  such  number  of  shares)  having an
aggregate Market Price equal to the Warrant Price for all shares being purchased
and (iii) this Warrant.  Such notice shall be  substantially  in the form of the
subscription  form  appearing  at the end of this  Warrant  as  Exhibit  A, duly
executed by Holder or its agent or attorney.  Upon receipt of the items referred
to in clauses  (i),  (ii) and (iii)  above,  the Company  shall,  as promptly as
practicable, and in any event within three (3) Business Days thereafter, execute
or cause to be  executed  and  deliver  or cause  to be  delivered  to  Holder a
certificate or certificates  representing the aggregate number of full shares of
Common Stock  issuable  upon such  exercise,  together  with cash in lieu of any
fraction  of  a  share,  as  hereinafter  provided.  The  stock  certificate  or
certificates so delivered shall be, to the extent possible, in such denomination
or  denominations  as Holder shall request in the notice and shall be registered
in the name of Holder  or,  subject  to  Section  9, such other name as shall be
designated in the notice.  This Warrant  shall be deemed to have been  exercised
and such  certificate or certificates  shall be deemed to have been issued,  and
Holder or any other Person so  designated to be named therein shall be deemed to
have become a holder of record of such shares for all  purposes,  as of the date
the  notice,  together  with the cash or check or checks  and this  Warrant,  is
received by the Company as described  above and all taxes required to be paid by
Holder,  if any,  pursuant to Section  2.2 prior to the  issuance of such shares
have been paid. If this Warrant shall have been  exercised in part,  the Company
shall, at the time of delivery of the  certificate or certificates  representing
Warrant Stock,  deliver to Holder a new Warrant  evidencing the rights of Holder
to purchase the  unpurchased  shares of Common Stock called for by this Warrant,
which new Warrant  shall in all other  respects be identical  with this Warrant,
or, at the request of Holder,  appropriate  notation may be made on this Warrant
and the same returned to Holder.  Notwithstanding  any  provision  herein to the
contrary,  the Company  shall not be required to register  shares in the name of
any Person who  acquired  this  Warrant (or part  hereof) or any  Warrant  Stock
otherwise than in accordance with this warrant.

         The Holder  shall be entitled to exercise  the Warrant  notwithstanding
the  commencement of any case under 11 U.S.C.  ss. 101 et seq. (the  "Bankruptcy
                                                       ------
Code").  In the event the Company is a debtor  under the  Bankruptcy  Code,  the
Company  hereby waives to the fullest  extent  permitted

                                       4

<PAGE>

any  rights to relief it may have  under 11 U.S.C.  ss.  362 in  respect  of the
Holder's  exercise  right.  The  Company  hereby  waives to the  fullest  extent
permitted any rights to relief it may have under 11 U.S.C. ss. 362 in respect of
the exercise of the Warrant. The Company agrees,  without cost or expense to the
Buyer, to take or consent to any and all action  necessary to effectuate  relief
under 11 U.S.C. ss. 362.

         2.2.     Payment  of  Taxes  and Charges.   All  shares of Common Stock
                  -------------------------------
issuable upon the exercise of this Warrant pursuant to the terms hereof shall be
validly issued, fully paid and nonassessable, and without any preemptive rights.
The Company shall pay all expenses in connection  with,  and all taxes and other
governmental  charges that may be imposed with respect to, the issue or delivery
thereof,  unless such tax or charge is imposed by law upon Holder, in which case
such  taxes or  charges  shall  be paid by  Holder.  The  Company  shall  not be
required, however, to pay any tax or other charge imposed in connection with any
transfer  involved in the issue of any  certificate  for shares of Common  Stock
issuable  upon  exercise of this  Warrant in any name other than that of Holder,
and in such case the Company shall not be required to issue or deliver any stock
certificate  until  such  tax or  other  charge  has  been  paid or it has  been
established to the  satisfaction of the Company that no such tax or other charge
is due.

         2.3.     Fractional  Shares. The Company shall not be required to issue
                  ------------------
a  fractional  share of Common  Stock upon  exercise of any  Warrant.  As to any
fraction of a share which  Holder would  otherwise be entitled to purchase  upon
such exercise,  the Company shall pay a cash adjustment in respect of such final
fraction in an amount  equal to the same  fraction of the Market Price per share
of Common Stock as of the Closing Date.

         2.4.     Continued Validity.  A holder of shares of Common Stock issued
                  ------------------
upon the exercise of this Warrant,  in whole or in part (other than a holder who
acquires  such  shares  after the same have been  publicly  sold  pursuant  to a
Registration  Statement  under the  Securities  Act or sold pursuant to Rule 144
thereunder),  shall  continue to be entitled  with respect to such shares to all
rights to which it would have been  entitled as Holder under  Sections 9, 10 and
14 of this  Warrant.  The Company will, at the time of exercise of this Warrant,
in whole or in part, upon the request of Holder, acknowledge in writing, in form
reasonably  satisfactory to Holder,  its continuing  obligation to afford Holder
all such rights;  provided,  however, that if Holder shall fail to make any such
request,  such failure shall not affect the continuing obligation of the Company
to afford to Holder all such rights.

3.       TRANSFER, DIVISION AND COMBINATION
         ----------------------------------

         3.1.     Transfer.   Subject to compliance with Sections 9, transfer of
                  --------
this Warrant and all rights hereunder,  in whole or in part, shall be registered
on the books of the Company to be maintained for such purpose, upon surrender of
this Warrant at the principal  office of the Company  referred to in Section 2.1
or the office or agency  designated  by the  Company  pursuant  to  Section  12,
together with a written assignment of this Warrant  substantially in the form of
Exhibit B hereto  duly  executed  by Holder or its agent or  attorney  and funds
sufficient to pay any transfer  taxes payable upon the making of such  transfer.
Upon such surrender and, if required,  such payment,  the Company shall, subject
to Section 9,  execute  and deliver a new Warrant or

                                       5

<PAGE>

Warrants  in the  name of the  assignee  or  assignees  and in the  denomination
specified in such  instrument of  assignment,  and shall issue to the assignor a
new Warrant  evidencing  the portion of this Warrant not so  assigned,  and this
warrant  shall  promptly  be  canceled.  A  Warrant,  if  properly  assigned  in
compliance  with Section 9, may be exercised by a new Holder for the purchase of
shares of Common Stock without having a new Warrant issued.

         3.2.     Division and Combination.  Subject to Section 9, this  Warrant
                  ------------------------
may be divided or combined with other Warrants upon  presentation  hereof at the
aforesaid  office or  agency  of the  Company,  together  with a written  notice
specifying the names and  denominations  in which new Warrants are to be issued,
signed by Holder or its agent or attorney.  Subject to  compliance  with Section
3.1 and  with  Section  9, as to any  transfer  which  may be  involved  in such
division or combination,  the Company shall execute and deliver a new Warrant or
Warrants  in  exchange  for the Warrant or Warrants to be divided or combined in
accordance with such notice.

         3.3.     Expenses.  The Company shall prepare, issue and deliver at its
                  --------
own expense  (other than transfer  taxes) the new Warrant or Warrants under this
Section 3.

         3.4.     Maintenance of Books.  The Company agrees to maintain, at  its
                  --------------------
aforesaid  office or agency,  books for the registration and the registration of
transfer of the Warrants.

4.       ADJUSTMENTS
         -----------

         The  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable, or the price at which such shares may be purchased upon exercise of
this Warrant,  shall be subject to adjustment  from time to time as set forth in
this  Section 4. The  Company  shall give Holder  notice of any event  described
below which  requires an  adjustment  pursuant to this  Section 4 at the time of
such event.

         4.1.     Stock Dividends, Subdivisions and Combinations. If at any time
                  ----------------------------------------------
the Company shall:

                  (a)      take a record of the holders of its Common Stock  for
         the  purpose of  entitling  them to receive a dividend  payable  in, or
         other distribution of, Additional Shares of Common Stock,

                  (b)      subdivide its outstanding shares of Common Stock into
         a larger number of shares of Common Stock, or

                  (c)      combine its outstanding shares of Common Stock into a
         smaller number of shares of Common Stock,

then (i) the  number  of  shares of Common  Stock  for  which  this  Warrant  is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record  holder of the same
number of  shares  of  Common  Stock  for  which  this  Warrant  is  exercisable
immediately  prior to the  occurrence  of such event would own or be entitled to
receive  after the happening of such event,  and (ii) the Current  Warrant Price

                                       6

<PAGE>

shall be adjusted  to equal (A) the  Current  Warrant  Price  multiplied  by the
number of  shares  of  Common  Stock  for  which  this  warrant  is  exercisable
immediately  prior to the  adjustment  divided  by (B) the  number of shares for
which this Warrant is exercisable immediately after such adjustment.

         4.2.     Other Provisions Applicable to Adjustments under this Section.
                  -------------------------------------------------------------
The following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is  exercisable  and the
Current Warrant Price provided for in this Section 4:

                  (a)      When  Adjustments to Be Made.The adjustments required
                           ----------------------------
         by this Section 4 shall be made  whenever and as often as any specified
         event  requiring  an  adjustment  shall  occur.  For the purpose of any
         adjustment, any specified event shall be deemed to have occurred at the
         close of business on the date of its occurrence.

                  (b)      Fractional Interests.  In computing adjustments under
                           --------------------
         this  Section 4,  fractional  interests  in Common Stock shall be taken
         into account to the nearest 1/10th of a share.

                  (c)      When Adjustment Not Required.  If  the  Company shall
                           ----------------------------
         take a record of the  holders  of its Common  Stock for the  purpose of
         entitling them to receive a dividend or distribution or subscription or
         purchase  rights and shall,  thereafter and before the  distribution to
         stockholders  thereof,  legally abandon its plan to pay or deliver such
         dividend,   distribution,   subscription  or  purchase   rights,   then
         thereafter no  adjustment  shall be required by reason of the taking of
         such record and any such adjustment  previously made in respect thereof
         shall be rescinded and annulled.

                  (d)      Challenge to Good Faith Determination.   Whenever the
                           -------------------------------------
         Board  of  Directors  of  the  Company  shall  be  required  to  make a
         determination  in good  faith of the fair  value of any item under this
         Section 4, such  determination  may be  challenged in good faith by the
         Holder, and any dispute shall be resolved by an investment banking firm
         of recognized  national standing selected by the Company and acceptable
         to the Holder.

         4.3.     Reorganization,   Reclassification,   Merger, Consolidation or
                  --------------------------------------------------------------
Disposition  of  Assets.  In case the  Company  shall  reorganize  its  capital,
-----------------------
reclassify  its  capital  stock,  consolidate  or  merge  with or  into  another
corporation  (where the Company is not the surviving  corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business  to another  corporation  and,  pursuant to the terms of such
reorganization,   reclassification,  merger,  consolidation  or  disposition  of
assets, shares of common stock of the successor or acquiring corporation, or any
cash,  shares of stock or other securities or property of any nature  whatsoever
(including  warrants or other subscription or purchase rights) in addition to or
in lieu of  common  stock of the  successor  or  acquiring  corporation  ("Other
Property"),  are to be received by or distributed to the holders of Common Stock
of the Company,  then Holder shall have the right  thereafter  to receive,  upon
exercise of the Warrant,  the number of shares of common stock of the

                                       7

<PAGE>

successor or acquiring  corporation  or of the Company,  if it is the  surviving
corporation,  and  Other  Property  receivable  upon  or  as a  result  of  such
reorganization, reclassification, merger, consolidation or disposition of assets
by a holder of the number of shares of Common  Stock for which  this  Warrant is
exercisable immediately prior to such event. In case of any such reorganization,
reclassification,  merger, consolidation or disposition of assets, the successor
or acquiring  corporation (if other than the Company) shall expressly assume the
due and  punctual  observance  and  performance  of each and every  covenant and
condition of this  Warrant to be  performed  and observed by the Company and all
the obligations and liabilities hereunder,  subject to such modifications as may
be deemed  appropriate (as determined by resolution of the Board of Directors of
the Company) in order to provide for  adjustments  of shares of Common Stock for
which  this  Warrant  is  exercisable  which  shall be as nearly  equivalent  as
practicable to the  adjustments  provided for in this Section 4. For purposes of
this Section 4.3, "common stock of the successor or acquiring corporation" shall
include  stock of such  corporation  of any class which is not  preferred  as to
dividends or assets over any other class of stock of such  corporation and which
is  not  subject  to  redemption   and  shall  also  include  any  evidences  of
indebtedness,  shares of stock or other securities which are convertible into or
exchangeable  for any such stock,  either  immediately  or upon the arrival of a
specified  date or the happening of a specified  event and any warrants or other
rights to subscribe for or purchase any such stock. The foregoing  provisions of
this  Section  4.3  shall   similarly   apply  to  successive   reorganizations,
reclassifications, mergers, consolidations or dispositions of assets.

         4.4.     Other Action  Affecting  Common Stock.  In case at any time or
                  -------------------------------------
from time to time the  Company  shall  take any  action in respect of its Common
Stock,  other than any action  described  in this  Section 4, which would have a
materially adverse effect upon the rights of the Holder, the number of shares of
Common Stock and/or the purchase  price thereof shall be adjusted in such manner
as may be equitable in the  circumstances,  as  determined  in good faith by the
Board of Directors of the Company.

         4.5.     Certain Limitations.   Notwithstanding  anything herein to the
                  -------------------
contrary,  the Company agrees not to enter into any transaction which, by reason
of any adjustment  hereunder,  would cause the Current  Warrant Price to be less
than the par value per share of Common Stock.

         4.6.     No Voting Rights.   This Warrant shall not entitle its  Holder
                  ----------------
to any voting rights or other rights as a shareholder of the Company.

5.       NOTICES TO HOLDER
         -----------------

         5.1.     Notice of  Adjustments.   Whenever  the  number  of  shares of
                  ----------------------
Common  Stock for which this  Warrant is  exercisable,  or whenever the price at
which a share  of such  Common  Stock  may be  purchased  upon  exercise  of the
Warrants,  shall be adjusted  pursuant to Section 4, the Company shall forthwith
prepare a  certificate  to be  executed  by the chief  financial  officer of the
Company setting forth, in reasonable  detail, the event requiring the adjustment
and the method by which such adjustment was calculated, specifying the number of
shares  of Common  Stock for which  this  Warrant  is  exercisable  and (if such
adjustment  was made pursuant to Section 4.3 or 4.4)  describing  the number and
kind of any other  shares of stock or Other  Property  for which this

                                       8

<PAGE>

Warrant is exercisable,  and any change in the purchase price or prices thereof,
after giving  effect to such  adjustment or change.  The Company shall  promptly
cause a  signed  copy of such  certificate  to be  delivered  to the  Holder  in
accordance  with Section  14.2.  The Company  shall keep at its office or agency
designated  pursuant to Section 12 copies of all such certificates and cause the
same to be available for inspection at said office during normal  business hours
by the  Holder  or any  prospective  purchaser  of a Warrant  designated  by the
Holder.

         5.2.     Notice of Corporate Action.  If at any time
                  --------------------------

                  (a)      the  Company  shall  take a record of the  holders of
         its  Common  Stock  for the  purpose  of  entitling  them to  receive a
         dividend  or  other  distribution,  or any  right to  subscribe  for or
         purchase any evidences of its indebtedness,  any shares of stock of any
         class or any other  securities  or  property,  or to receive  any other
         right, or

                  (b)      there  shall  be  any  capital  reorganization of the
         Company,  any reclassification or recapitalization of the capital stock
         of the Company or any  consolidation  or merger of the Company with, or
         any sale, transfer or other disposition of all or substantially all the
         property, assets or business of the Company to, another corporation, or

                  (c)      there   shall   be   a   voluntary   or   involuntary
         dissolution, liquidation or winding up of the Company;

then, in any one or more of such cases,  the Company shall give to Holder (i) at
least 30 days' prior written  notice of the date on which a record date shall be
selected for such dividend,  distribution or right or for determining  rights to
vote  in  respect  of  any  such   reorganization,   reclassification,   merger,
consolidation, sale, transfer, disposition,  dissolution, liquidation or winding
up, and (ii) in the case of any such reorganization,  reclassification,  merger,
consolidation, sale, transfer, disposition,  dissolution, liquidation or winding
up, at least 30 days' prior written  notice of the date when the same shall take
place.  Such notice in accordance  with the foregoing  clause also shall specify
(i) the date on which any such  record is to be taken  for the  purpose  of such
dividend,  distribution or right,  the date on which the holders of Common Stock
shall be entitled to any such dividend,  distribution  or right,  and the amount
and  character  thereof,  and (ii) the  date on which  any such  reorganization,
reclassification,    merger,   consolidation,   sale,   transfer,   disposition,
dissolution,  liquidation  or winding  up is to take place and the time,  if any
such  time is to be fixed,  as of which the  holders  of Common  Stock  shall be
entitled  to  exchange  their  shares of Common  Stock for  securities  or other
property  deliverable  upon  such  reorganization,   reclassification,   merger,
consolidation, sale, transfer, disposition,  dissolution, liquidation or winding
up. Each such written notice shall be sufficiently  given if addressed to Holder
at the  last  address  of  Holder  appearing  on the  books of the  Company  and
delivered in accordance with Section 14.2.

                                       9

<PAGE>

6.       NO IMPAIRMENT
         -------------

         The Company  shall not by any action,  including,  without  limitation,
amending  its  certificate  of  incorporation  or  through  any  reorganization,
transfer  of  assets,  consolidation,  merger,  dissolution,  issue  or  sale of
securities or any other voluntary action,  avoid or seek to avoid the observance
or  performance  of any of the terms of this  Warrant,  but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or  appropriate to protect the rights of Holder
against  impairment.  Without  limiting the  generality  of the  foregoing,  the
Company  will (a) not  increase  the par value of any  shares  of  Common  Stock
receivable  upon the exercise of this Warrant above the amount payable  therefor
upon such exercise immediately prior to such increase in par value, (b) take all
such action as may be  necessary  or  appropriate  in order that the Company may
validly and legally  issue fully paid and  nonassessable  shares of Common Stock
upon the  exercise of this  Warrant,  and (c) use its best efforts to obtain all
such  authorizations,  exemptions  or consents from any public  regulatory  body
having jurisdiction thereof as may be necessary to enable the Company to perform
its obligations under this Warrant.

         Upon the  request of Holder,  the  Company  will at any time during the
period this warrant is outstanding  acknowledge in writing, in form satisfactory
to Holder,  the continuing  validity of this warrant and the  obligations of the
Company hereunder.

7.       RESERVATION AND AUTHORIZATION OF COMMON STOCK
         ---------------------------------------------

         From and after the Closing Date, the Company shall at all times reserve
and keep  available  for issue upon the exercise of Warrants  such number of its
authorized  but unissued  shares of Common Stock as will be sufficient to permit
the  exercise in full of all  outstanding  Warrants.  All shares of Common Stock
which shall be so issuable, when issued upon exercise of any Warrant and payment
therefor in accordance with the terms of such Warrant, shall be duly and validly
issued and fully paid and  nonassessable,  and not subject to preemptive rights.
The Company will take all such  reasonable  action as may be necessary to assure
that such Warrant Shares may be issued as provided  herein without  violation of
any  applicable  law or  regulation,  or of any  requirements  of  NASDAQ or any
domestic securities exchange upon which the Common Stock may be listed.

         Before taking any action which would cause an  adjustment  reducing the
Current  Warrant Price below the then par value, if any, of the shares of Common
Stock  issuable  upon  exercise  of the  Warrants,  the  Company  shall take any
corporate  action  which may be  necessary in order that the Company may validly
and legally  issue fully paid and  nonassessable  shares of such Common Stock at
such adjusted Current Warrant Price.

         Before  taking any action  which would result in an  adjustment  in the
number of shares of Common Stock for which this Warrant is exercisable or in the
Current  Warrant  Price,  the Company  shall obtain all such  authorizations  or
exemptions  thereof,  or consents  thereto,  as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

                                       10

<PAGE>

8.       TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS
         --------------------------------------------------

         In the case of all dividends or other  distributions  by the Company to
the holders of its Common Stock with respect to which any provision of Section 4
refers to the taking of a record of such holders,  the Company will in each such
case take such a record and will take such record as of the close of business on
a Business  Day.  The Company  will not at any time,  except  upon  dissolution,
liquidation  or winding up of the  Company,  close its stock  transfer  books or
Warrant transfer books so as to result in preventing or delaying the exercise or
transfer of any Warrant.

9.       RESTRICTIONS ON TRANSFERABILITY
         -------------------------------

         The  Warrants  and  the  Warrant   Stock  shall  not  be   transferred,
hypothecated or assigned before satisfaction of the conditions specified in this
Section  9,  which  conditions  are  intended  to  ensure  compliance  with  the
provisions of the  Securities Act with respect to the Transfer of any Warrant or
any Warrant Stock. Holder, by acceptance of this Warrant,  agrees to be bound by
the provisions of this Section 9.

         9.1.     Restrictive  Legend. (a) The Holder by accepting  this Warrant
                  -------------------
and any Warrant  Stock agrees that this Warrant and the Warrant  Stock  issuable
upon  exercise  hereof may not be assigned or otherwise  transferred  unless and
until (i) the  Company  has  received  an opinion of counsel for the Holder that
such securities may be sold pursuant to an exemption from registration under the
Securities Act of 1933, as amended (the "Securities Act") or (ii) a registration
statement relating to such securities has been filed by the Company and declared
effective by the Commission.

         Each  certificate  for Warrant Stock  issuable  hereunder  shall bear a
legend as follows unless such securities have been sold pursuant to an effective
registration statement under the Securities Act:

                           "The securities  represented by this certificate have
                  not been  registered  under  the  Securities  Act of 1933,  as
                  amended (the  "Act").  The  securities  may not be offered for
                  sale, sold or otherwise  transferred except (i) pursuant to an
                  effective   registration  statement  under  the  Act  or  (ii)
                  pursuant to an exemption  from  registration  under the Act in
                  respect  of which the  Company  has  received  an  opinion  of
                  counsel satisfactory to the Company to such effect.  Copies of
                  the agreement covering both the purchase of the securities and
                  restricting  their  transfer  may be  obtained  at no  cost by
                  written   request  made  by  the  holder  of  record  of  this
                  certificate  to the  Secretary of the Company at the principal
                  executive offices of the Company."

                  (b)      Except  as  otherwise  provided  in this  Section  9,
                  the Warrant  shall be  stamped  or  otherwise  imprinted  with
                  a legend  in substantially the following form:

                                       11

<PAGE>

                           "This Warrant and the securities  represented  hereby
                  have not been registered  under the Securities Act of 1933, as
                  amended,  and may not be transferred in violation of such Act,
                  the rules and regulations thereunder or the provisions of this
                  Warrant."

         9.2.     Notice  of  Proposed  Transfers.  Prior  to  any  Transfer  or
                  -------------------------------
attempted Transfer of any Warrants or any shares of Restricted Common Stock, the
Holder shall give ten days,  prior written  notice (a "Transfer  Notice") to the
Company of Holder's intention to effect such Transfer, describing the manner and
circumstances  of the proposed  Transfer,  and obtain from counsel to Holder who
shall be reasonably  satisfactory  to the Company,  an opinion that the proposed
Transfer  of such  Warrants  or such  Restricted  Common  Stock may be  effected
without  registration  under the  Securities  Act. After receipt of the Transfer
Notice and opinion,  the Company  shall,  within five days  thereof,  notify the
Holder as to whether such opinion is  reasonably  satisfactory  and, if so, such
holder shall  thereupon be entitled to Transfer such Warrants or such Restricted
Common  Stock,  in  accordance  with the  terms  of the  Transfer  Notice.  Each
certificate,  if any,  evidencing such shares of Restricted  Common Stock issued
upon such  Transfer  shall  bear the  restrictive  legend  set forth in  Section
9.1(a),  and the Warrant  issued upon such Transfer  shall bear the  restrictive
legend set forth in Section  9.1(b),  unless in the opinion of such counsel such
legend is not required in order to ensure  compliance  with the Securities  Act.
The Holder shall not be entitled to Transfer  such  Warrants or such  Restricted
Common Stock until receipt of notice from the Company under this Section  9.2(a)
that such opinion is reasonably satisfactory.

         9.3.     Required  Registration.  Pursuant  to the terms and conditions
                  ----------------------
set forth in the Registration  Rights  Agreement,  the Company shall prepare and
file with the  Commission  not later than the 30th day after the Closing Date, a
Registration  Statement  relating  to the  offer  and sale of the  Common  Stock
issuable  upon  exercise of the Warrants and shall use its best efforts to cause
the  Commission  to declare  such  Registration  Statement  effective  under the
Securities  Act as promptly as  practicable  but no later than 90 days after the
Closing Date.

         9.4.     Termination of  Restrictions.  Notwithstanding  the  foregoing
                  ----------------------------
provisions  of Section 9, the  restrictions  imposed  by this  Section  upon the
transferability  of the Warrants,  the Warrant Stock and the  Restricted  Common
Stock (or Common  Stock  issuable  upon the  exercise of the  Warrants)  and the
legend  requirements of Section 9.1 shall terminate as to any particular Warrant
or share of Warrant Stock or Restricted  Common Stock (or Common Stock  issuable
upon the exercise of the Warrants)  (i) when and so long as such security  shall
have been  effectively  registered  under the  Securities  Act and  disposed  of
pursuant  thereto or (ii) when the  Company  shall have  received  an opinion of
counsel  reasonably  satisfactory  to it that  such  shares  may be  transferred
without registration thereof under the Securities Act. Whenever the restrictions
imposed  by  Section  9 shall  terminate  as to  this  Warrant,  as  hereinabove
provided,  the Holder  hereof shall be entitled to receive from the Company upon
written  request of the  Holder,  at the expense of the  Company,  a new Warrant
bearing  the  following  legend  in place of the  restrictive  legend  set forth
hereon:

                                       12

<PAGE>

                     "THE RESTRICTIONS ON TRANSFERABILITY OF
                    THE WITHIN WARRANT CONTAINED IN SECTION 9
                HEREOF TERMINATED ON ____________, ____, AND ARE
                        OF NO FURTHER FORCE AND EFFECT."

All Warrants issued upon  registration of transfer,  division or combination of,
or in  substitution  for,  any Warrant or warrants  entitled to bear such legend
shall have a similar legend endorsed thereon.  Whenever the restrictions imposed
by this Section shall  terminate as to any share of Restricted  Common Stock, as
hereinabove  provided,  the holder thereof shall be entitled to receive from the
Company,  at the Company's expense,  a new certificate  representing such Common
Stock not bearing the restrictive legend set forth in Section 9.1(a).

         9.5.     Listing on  Securities  Exchange.   If the Company  shall list
                  --------------------------------
any shares of Common Stock on any securities exchange,  it will, at its expense,
list thereon, maintain and, when necessary, increase such listing of, all shares
of Common  Stock  issued  or, to the  extent  permissible  under the  applicable
securities exchange rules, issuable upon the exercise of this Warrant so long as
any shares of Common Stock shall be so listed during any such Exercise Period.

         10.      SUPPLYING INFORMATION
                  ---------------------

         The Company shall  cooperate with Holder in supplying such  information
as may be reasonably  necessary for Holder to complete and file any  information
reporting forms presently or hereafter required by the Commission as a condition
to the  availability of an exemption from the Securities Act for the sale of any
Warrant or Restricted Common Stock.

         11.      LOSS OR MUTILATION
                  ------------------

         Upon  receipt  by  the  Company  from  Holder  of  evidence  reasonably
satisfactory  to it of the  ownership  of and the loss,  theft,  destruction  or
mutilation of this warrant and indemnity reasonably satisfactory to it (it being
understood  that  the  written  agreement  of the  Holder  shall  be  sufficient
indemnity),  and in case of mutilation upon surrender and  cancellation  hereof,
the Company  will execute and deliver in lieu hereof a new Warrant of like tenor
to Holder;  provided, in the case of mutilation,  no indemnity shall be required
if  this  Warrant  in  identifiable  form  is  surrendered  to the  Company  for
cancellation.

         12.      OFFICE OF THE COMPANY
                  ---------------------

         As long as any of the Warrants  remain  outstanding,  the Company shall
maintain an office or agency  (which may be the principal  executive  offices of
the Company) where the Warrants may be presented for exercise,  registration  of
transfer, division or combination as provided in this Warrant.

         13.      LIMITATION OF LIABILITY
                  -----------------------

                                       13

<PAGE>

         No provision hereof, in the absence of affirmative  action by Holder to
purchase  shares of Common  Stock,  and no  enumeration  herein of the rights or
privileges of Holder hereof,  shall give rise to any liability of Holder for the
purchase price of any Common Stock or as a stockholder  of the Company,  whether
such liability is asserted by the Company or by creditors of the Company.

         14.      MISCELLANEOUS
                  -------------

         14.1.    Nonwaiver  and Expenses.  No course of dealing or any delay or
                  -----------------------
failure to exercise any right hereunder on the part of Holder shall operate as a
waiver of such right or otherwise prejudice Holder's rights, powers or remedies.
If the Company fails to make, when due, any payments provided for hereunder,  or
fails to comply with any other provision of this Warrant,  the Company shall pay
to Holder such  amounts as shall be  sufficient  to cover any costs and expenses
including,  but not limited to, reasonable  attorneys' fees,  including those of
appellate proceedings, incurred by Holder in collecting any amounts due pursuant
hereto  or in  otherwise  enforcing  any  of  its  rights,  powers  or  remedies
hereunder.

         14.2.    Notices. Except as may be otherwise provided herein,any notice
                  -------
or other  communication or delivery required or permitted  hereunder shall be in
writing and shall be delivered  personally  or sent by certified  mail,  postage
prepaid, or by a nationally  recognized  overnight courier service, and shall be
deemed given when so delivered  personally or by overnight courier service,  or,
if mailed,  three (3) days after the date of deposit in the United States mails,
as follows:

                  (1)      if to the Company, to:

                           Adatom.com, Inc.
                           920 Hillview Court
                           Suite 160
                           Milpitas, California 95035
                           Attention: Richard Barton

                  (2)      if to the Holder, to the address set forth on the
                           signature page of the Securities Purchase Agreement.

The  Company or the Holder may  change  the  foregoing  address by notice  given
pursuant to this Section 14.2.

         14.3.    Indemnification.  The  Company  agrees  to  indemnify and hold
                  ---------------
harmless Holder from and against any liabilities,  obligations, losses, damages,
penalties,  actions,  judgments, suits, claims, costs, attorneys' fees, expenses
and disbursements of any kind which may be imposed upon, incurred by or asserted
against  Holder in any manner  relating  to or arising out of any failure by the
Company to perform or observe  in any  material  respect  any of its  covenants,
agreements,  undertakings  or obligations  set forth in this Warrant;  provided,
however,  that the Company  will not be liable  hereunder to the extent that any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims,  costs,  attorneys' fees, expenses or disburse-

                                       14

<PAGE>

ments are found in a final  non-appealable  judgment by a court to have resulted
from Holder's gross negligence, bad faith or willful misconduct.

         14.4.    Remedies. Holder in addition to being entitled to exercise all
                  --------
rights  granted by law,  including  recovery  of  damages,  will be  entitled to
specific  performance of its rights under Section 9 of this Warrant. The Company
agrees that  monetary  damages would not be adequate  compensation  for any loss
incurred  by  reason of a breach by it of the  provisions  of  Section 9 of this
Warrant  and hereby  agrees to waive the  defense  in any  action  for  specific
performance that a remedy at law would be adequate.

         14.5.    Successors and Assigns.  Subject to the provisions of Sections
                  ----------------------
3.1 and 9, this  Warrant  and the rights  evidenced  hereby  shall  inure to the
benefit of and be binding upon the  successors of the Company and the successors
and assigns of Holder. The provisions of this Warrant are intended to be for the
benefit of all Holders from time to time of this  Warrant  and,  with respect to
Section 9 hereof, holders of Warrant Stock, and shall be enforceable by any such
Holder or holder of Warrant Stock.

         14.6.    Amendment. This Warrant and all other Warrants may be modified
                  ---------
or amended or the  provisions  hereof  waived  with the  written  consent of the
Company and the Holder.

         14.7.    Severability.   Wherever  possible,  each  provision  of  this
                  ------------
Warrant shall be  interpreted  in such manner as to be effective and valid under
applicable  law, but if any  provision of this Warrant shall be prohibited by or
invalid under  applicable law, such provision shall be ineffective to the extent
of such  prohibition or invalidity,  without  invalidating the remainder of such
provision or the remaining provisions of this Warrant.

         14.8.    Headings.   The  headings  used  in  this  Warrant are for the
                  --------
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

         14.9.    Governing Law.  This Warrant shall be governed by  the laws of
                  -------------
the State of California,  without regard to the provisions  thereof  relating to
conflict of laws.

                                       15

<PAGE>

         IN WITNESS  WHEREOF,  the Company  has caused  this  Warrant to be duly
executed  and its  corporate  seal to be  impressed  hereon and  attested by its
Secretary or an Assistant Secretary.

Dated: September 27, 2000
                               ADATOM.COM, INC.

                               By:____________________________
                               Name:    Richard S. Barton
                               Title:   Chairman and Chief Executive Officer

Attest:

By:__________________________
Name:    Sridhar Jagannathan
Title:   Secretary

WarrantAA.DOC

                                       16
<PAGE>

                                    EXHIBIT A

                                SUBSCRIPTION FORM

                 [To be executed only upon exercise of Warrant]

         The undersigned  registered owner of this Warrant irrevocably exercises
this Warrant for the purchase of Shares of Common Stock of Adatom.com,  Inc. and
herewith  makes  payment  therefor,  all at the  price  and  on  the  terms  and
conditions  specified  in this Warrant and requests  that  certificates  for the
shares of Common Stock hereby  purchased  (and any  securities or other property
issuable  upon  such  exercise)  be  issued  in the  name  of and  delivered  to
__________,  whose address is _____________  and, if such shares of Common Stock
shall not include all of the shares of Common Stock issuable as provided in this
Warrant, that a new Warrant of like tenor and date for the balance of the shares
of Common Stock issuable hereunder be delivered to the undersigned.

                                          ---------------------------------
                                          (Name of Registered Owner)

                                          ----------------------------------
                                          (Signature of Registered Owner)

                                          ----------------------------------
                                          (Street Address)

                                          ----------------------------------
                                          (city)        (State)   (Zip Code)

NOTICE:           The signature on this  subscription  must  correspond with the
                  name as written  upon the face of the within  Warrant in every
                  particular,  without  alteration or  enlargement or any change
                  whatsoever.

                                       17

<PAGE>

                                    EXHIBIT B

                                 ASSIGNMENT FORM

         FOR VALUE  RECEIVED the  undersigned  registered  owner of this Warrant
hereby  sells,  assigns and transfers  unto the Assignee  named below all of the
rights of the  undersigned  under this  Warrant,  with  respect to the number of
shares of Common Stock set forth below:

Name and Address of Assignee                    No. of Shares of Common Stock
----------------------------                    -----------------------------

and does hereby  irrevocably  constitute and appoint  ____________  ____________
attorney-in-fact  to  register  such  transfer  on  the  books  of  ____________
____________  maintained for the purpose, with full power of substitution in the
premises.*

Dated:   ____________              Print Name:____________________________

                                   Signature:_____________________________

                                   Witness:_______________________________

NOTICE:           The signature on this assignment must correspond with the name
                  as  written  upon  the  face of the  within  Warrant  in every
                  particular,  without  alteration or  enlargement or any change
                  whatsoever.

                                       18

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