Document:

<PAGE>

                      DIRECTV MDU SYSTEM OPERATOR AGREEMENT

              This DIRECTV MDU System Operator Agreement ("Agreement") is
made and entered into as of this ___ day of May, 2000 ("Execution Date"),
between DIRECTV, Inc., a California corporation ("DIRECTV"), and MDU
Communications (USA) Inc. a Washington corporation ("System Operator").

                                    RECITALS

         A.     DIRECTV operates a direct broadcast satellite ("DBS") service
through which subscribers are able to receive video, audio, data and other
commercial programming distributed by DIRECTV via a direct broadcast
satellite system.

         B.     System Operator distributes television programming and
services to residential multiple dwelling units ("MDUs").

         C.     DIRECTV and System Operator desire to establish a business
relationship whereby System Operator will (i) establish and maintain in
certain MDU Properties, Signal Distribution Systems to enable MDU residents
to receive DIRECTV Programming via such Systems, and (ii) act as a
commissioned sales representative for DIRECTV to solicit and take orders for
DIRECTV Commissionable Programming Packages from residents of MDU Properties,
according to this Agreement and the Terms and Conditions attached hereto as
EXHIBIT A.

                                    ARTICLE I

                                   DEFINITIONS

         1.1    The following capitalized terms shall have the meanings
assigned them. Certain other capitalized terms shall have the meanings given
them elsewhere in this Agreement.

         "COMMISSION(S)" shall have the meaning assigned such term in Section
2.4 hereof.

         "COMMISSIONABLE PROGRAMMING PACKAGES" shall mean the DIRECTV
Programming on EXHIBIT B attached hereto, for which System Operator is
authorized to solicit orders on behalf of DIRECTV, and System Operator is
entitled to a Commission thereon.

         "COMPLIANCE FORM" shall mean that form setting forth the
requirements supplied by DIRECTV to System Operator during the Term, which
specify the minimum parameters any and all Signal Distribution Systems must
meet under this Agreement (attached hereto as EXHIBIT D).

         "COMPONENTS" shall mean such equipment, whether pre-existing or
newly installed within the MDU Property which is used to create the Signal
Distribution

<PAGE>

System, including, but not limited to, a satellite receiving dish, cables,
splitters, taps, connectors, filters, amplifiers, switches, wiring and any
other materials or equipment.

         "DIRECTV PROGRAMMING" shall mean those programming services
distributed by DIRECTV, including, but not limited to Commissionable
Programming Packages, which services and the prices therefore shall be
provided to System Operator by DIRECTV, from time to time.

         "DIRECTV SYSTEM RECEIVER" shall mean the integrated receiver and
decoder unit (IRD) necessary to receive DIRECTV Programming which is
manufactured by a DIRECTV authorized manufacturer.

         "INDEPENDENT SO SUBSCRIBER" shall mean a DIRECTV subscriber who
currently resides in an SO Property whose original DIRECTV Programming order
was submitted (i) directly by the subscriber to DIRECTV or (ii) by an entity
other than System Operator.

         "MDU PROPERTY" shall mean a condominium complex, apartment building
(including both rental and cooperative apartments), or townhouse community,
located in the contiguous United States, comprised of multiple dwelling
units, which units in each case are occupied by single family households and
are not generally accessible to the public or otherwise a common area to
which there is unrestricted access by two or more persons, and which units
may receive DIRECTV Programming from a common receiving dish and separate
DIRECTV System Receivers in each individual dwelling unit.

         "NET RECEIPTS" shall mean gross receipts actually received by
DIRECTV from the sale of Commissionable Programming Packages during the Term,
net of any discounts, refunds, fees, credits, taxes or applicable
governmental charges (other than income or franchise taxes) related to the
sale or the order or use of such Commissionable Programming Packages.

         "NRTC AREA" shall mean those areas in which DIRECTV has granted the
National Rural Telecommunications Cooperative distribution rights and which,
as of the Execution Date, are identified on the map attached hereto as
EXHIBIT C, which may be amended from time to time by DIRECTV.

         "PREVIOUS SO SUBSCRIBER" shall mean a DIRECTV subscriber who was
previously an SO Subscriber who no longer resides in an SO Property and who
purchased his or her DIRECTV System Receiver from System Operator, and whose
order for a Commissionable Programming Package at a new residence was
submitted by System Operator.

         "RIGHT OF ENTRY" shall mean that certain written agreement between
System Operator and the owner or manager of an MDU Property or, in the case
of a cooperative apartment complex, the homeowners' association, which
authorizes System Operator to install and maintain the Signal Distribution
System in such MDU Property and solicit orders for Commissionable Programming
Packages therein.

<PAGE>

         "SIGNAL DISTRIBUTION SYSTEM" shall mean the integrated signal
delivery system including the receiving dish and DIRECTV System Receiver and
any necessary Components by which DIRECTV Programming is distributed
throughout an SO Property, which may also include off-air and/or cable
distribution systems.

         "SO PROPERTY" shall mean any of the MDU Properties for which System
Operator has obtained and continues to maintain throughout the term of the
Agreement a valid Right of Entry and (i) in which System Operator has
installed a Signal Distribution System, (ii) the initial orders from
residents of such property for DIRECTV Programming are submitted by System
Operator and transmitted to DIRECTV by System Operator in accordance with the
terms of this Agreement, (iii) is not located in an NRTC Area, and (iv) all
units in such property are capable of receiving DIRECTV Programming within
five (5) business days of ordering such programming.

         "SO SUBSCRIBER" shall mean a DIRECTV subscriber residing in an SO
Property, who receives one of the Commissionable Programming Packages, the
initial order for which was submitted by System Operator and/or DIRECTV, and
who was not a DIRECTV subscriber prior to becoming an SO Subscriber.

         "TERM" shall have the meaning assigned such term in Section 3.1
hereof.

         "TERRITORY" shall mean the continental United States not including
the NRTC Area, as defined above.

                                   ARTICLE II

                         GENERAL RIGHTS AND OBLIGATIONS

              2.1   SOLICITATION OF DIRECTV PROGRAMMING SERVICES.

              (a)   Subject to the Terms and Conditions attached hereto as
EXHIBIT A, DIRECTV hereby grants to System Operator the right to (i) market
DIRECTV Programming to SO Properties and (ii) solicit and take orders for
DIRECTV Programming from residents of SO Properties.

              (b)   Nothing in this Agreement shall prevent DIRECTV (or those
DIRECTV's agents that are not system operators) from marketing, soliciting
and taking orders from residents of MDU Properties.

              (c)   System Operator understands that it shall not have any
right, unless specifically provided by DIRECTV under separate written
agreement, to: (i) solicit or take orders for DIRECTV Programming from any
person or entity that is not a resident of an MDU Property, including,
without limitation, commercial establishments, as such may be defined by
DIRECTV in its reasonable discretion; or (ii) use any person or entity other

<PAGE>

than its authorized agents, as reasonably approved by DIRECTV, in soliciting
or taking orders for DIRECTV Programming without the prior written consent of
DIRECTV.

              (d)   DIRECTV   [REDACTED - SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT FILED WITH THE SEC ON JUNE 27, 2000]

              (e)   System Operator   [REDACTED - SUBJECT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SEC ON JUNE 27, 2000]

              (f)   Only after receiving, approving and accepting an order
from System Operator shall DIRECTV be obligated to establish a customer
account for the subscriber and arrange for activation of DIRECTV Programming.
DIRECTV shall not be obligated to pay System Operator any Commission or any
other amounts for incomplete order(s), regardless of whether DIRECTV
ultimately provides any DIRECTV Programming to the customer(s) to which such
order(s) pertained and regardless of whether DIRECTV receives any payments as
consideration for such DIRECTV Programming, unless and until DIRECTV receives
the Subscriber Information and, then, only for periods of time following such
receipt by DIRECTV. DIRECTV shall promptly notify System Operator of any
deficiencies with respect to particular subscriber information. "Subscriber
Information" shall mean that customer identification, location, and billing
information which DIRECTV requires, as described in the DIRECTV System
Operator Policy Manual.

              2.2   SO PROPERTIES; RIGHT OF ENTRY. Prior to any solicitation
of orders for DIRECTV Programming by System Operators, System Operator shall
submit to DIRECTV the complete address (including county and zip code) of any
MDU Property for which System Operator has or is seeking a Right of Entry, in
order to confirm that (i) such MDU Property is not already being serviced by
another system operator authorized by DIRECTV and (ii) such MDU Property is
not located in an NRTC Area. System Operator shall obtain and continuously
maintain a valid Right of Entry for such property during the Term, granting
System Operator access to the MDU, authorizing System Operator to install and
maintain the Signal Distribution System and Components, and granting System
Operator permission to solicit orders for DIRECTV Programming from MDU
residents. System Operator shall promptly forward to DIRECTV a copy of the
fully executed Right of Entry form for all SO Properties. In no event shall
System Operator install a Signal Distribution System in any MDU for which
neither System Operator has not obtained a valid Right of Entry and no
compensation shall be paid or reimbursed by DIRECTV to System Operator for
any DIRECTV Programming sold to subscribers in a MDU property unless and
until DIRECTV has received a copy of the applicable Right of Entry form for
such property. System Operator shall provide written notice to DIRECTV within
ten (10) days of any loss, suspension, or expiration of a Right of Entry.
Notwithstanding the foregoing, System Operator may, in lieu of providing a
copy of the Right of Entry, provide to DIRECTV a completed MDU Compliance
Form, the current version of which is set forth in EXHIBIT D attached hereto,
signed by an officer of System Operator, certifying that System Operator does
hold a valid Right of Entry for the applicable MDU Property.

              2.3.  IMPLEMENTATION OF SIGNAL DISTRIBUTION SYSTEM.

<PAGE>

              (a)   INSTALLATION OF SIGNAL DISTRIBUTION SYSTEM AND COMPONENTS.

                    (i)     System Operator shall design, develop, install,
and maintain, a Signal Distribution System for each SO Property and must
verify the existence of such System on the Compliance Form for the applicable
MDU Property. DIRECTV reserves the right, in its reasonable discretion, to
amend or revise and reissue the Signal Distribution System requirements,
which amendments or revisions shall be promptly communicated by DIRECTV to
System Operator. Upon any such amendment or revision by DIRECTV, DIRECTV and
System Operator shall discuss in good faith the extent to which existing
Signal Distribution Systems in SO Properties shall comply with such amended
or revised requirements, it being understood and agreed by the parties that
any and all uncompleted Signal Distribution Systems in SO Properties must
comply with such revised or amended terms.

                    (ii)   Should DIRECTV request, System Operator shall
provide to DIRECTV a design for the installation and integration of each
Signal Distribution System ("Design") for each SO Property subject to this
Agreement, together with a time schedule for installation. In creating,
installing and maintaining any Signal Distribution System, System Operator
shall comply with all DIRECTV System equipment manufacturers' or Component
manufacturers' policies as may be in effect from time to time. DIRECTV shall
provide to System Operator written notice as soon as commercially practicable
after receipt and review of Design(s) if DIRECTV reasonably believes that any
Design will not produce a Signal Distribution System meeting the reasonable
DIRECTV requirements. System Operator shall provide installation progress
reports to DIRECTV periodically or as DIRECTV may reasonably request, and
shall promptly notify DIRECTV of any material changes to the installation
schedule or Design.

                    (iii)  Upon completion of installation, System Operator
shall promptly forward to DIRECTV, upon its request, an updated copy of the
Design and completed Technical Registration Form which shall include, among
other things, various measurements of the signal from the Signal Distribution
System. DIRECTV shall provide to System Operator written notice as soon as
commercially practicable after receipt and review of the Technical
Registration Form if DIRECTV reasonably believes that such Technical
Registration Form indicates that the Signal Distribution System does not meet
the requirements, and where possible, DIRECTV shall recommend corrective
actions. Unless and until the Signal Distribution System complies with the
DIRECTV requirements, such MDU Property shall not be considered an SO
Property.

              (b)   TECHNICAL COMPLIANCE. System Operator shall, at its own
cost and expense, (i) contract with an authorized DIRECTV System
manufacturer(s) to obtain DIRECTV System equipment and integrate such DIRECTV
System equipment with any necessary Components to create the Signal
Distribution System, (ii) evaluate and test the Signal Distribution System to
insure compliance with the DIRECTV requirements for each unit in the SO
Property, (iii) select Components that will ensure that the Signal
Distribution System meets the DIRECTV requirements for the MDU Property

<PAGE>

environment and will allow System Operator to fulfill its obligations under
this Agreement, and (iv) develop such additional hardware or other elements
as are necessary for the Signal Distribution System to meet the DIRECTV
requirements and allow System Operator to fulfill its obligations under this
Agreement. If at any time during the Term of this Agreement, DIRECTV
determines in good faith that a Signal Distribution System is not in strict
compliance with all or any portion of the DIRECTV requirements, and such
noncompliance interferes with SO Subscribers' ability to receive DIRECTV
Programming of a quality received by other DIRECTV subscribers (I.E., the
signal does not meet the measurement standards), System Operator shall cure
such noncompliance within thirty (30) days of DIRECTV's notice of
noncompliance (the "Cure Period"), and provide DIRECTV evidence of correction
of such noncompliance. In the event such evidence is not approved by DIRECTV
within the Cure Period, DIRECTV shall have the right to cease paying
Commissions due to System Operator with respect to SO Subscribers in the
noncomplying SO Property.

              (c)   PROVISION OF SIGNAL DISTRIBUTION SYSTEM. System Operator
shall, at its sole cost: (i) acquire and supply Signal Distribution Systems
to SO Properties; (ii) install at a commercially reasonable price and in a
timely manner the Signal Distribution System and any necessary Components
which System Operator supplies to any SO Property; (iii) maintain at
commercially reasonable prices the Signal Distribution System for any SO
Properties; and (iv) provide, at a commercially reasonable price and in a
manner satisfactory to DIRECTV, customer service to all SO Properties,
subscribers and potential subscribers related to the supply, installation and
maintenance of the Signal Distribution System. System Operator agrees to
allow all authorized DIRECTV System equipment to be used by the SO
Subscribers and the Independent SO Subscribers and agrees to provide the same
level of Signal Distribution System installation and maintenance, and
customer service support, for the Independent SO Subscribers as System
Operator does for the SO Subscribers.

              (d)   DISCLAIMER OF WARRANTIES. SYSTEM OPERATOR UNDERSTANDS AND
AGREES THAT DIRECTV SHALL HAVE NO RESPONSIBILITY WHATSOEVER FOR ANY SIGNAL
DISTRIBUTION SYSTEM, INCLUDING THE DIRECTV SYSTEM RECEIVER AND COMPONENTS
CONTAINED THEREIN. DIRECTV HEREBY DISCLAIMS ALL WARRANTIES, EXPRESS AND
IMPLIED, IN CONNECTION WITH ANY SIGNAL DISTRIBUTION SYSTEM, INCLUDING THE
DIRECTV SYSTEM RECEIVER AND COMPONENTS CONTAINED THEREIN, THE INSTALLATION
AND FUNCTIONING OF SUCH SYSTEM IN ANY MDU PROPERTY, INCLUDING, WITHOUT
LIMITATION, ANY WARRANTIES UNDER THE UNIFORM COMMERCIAL CODE OR OTHERWISE
IMPLIED IN LAW.

              (e)   NEW TECHNOLOGY; END-USE TESTING. System Operator
understands and acknowledges that the technology (including some or all of
the Components) for providing DIRECTV Programming to multiple-dwelling units
is currently being developed and has not been tested in the MDU environment
by DIRECTV. DIRECTV makes no representation or warranty as to how any
commercially available Components

<PAGE>

will perform with the DIRECTV System in any particular MDU Property or how
the DIRECTV System itself will perform in certain MDU environments. System
Operators shall be jointly and severally responsible for procuring and
testing any and all Components in the end-use environment prior to the
design, development and installation of the Signal Distribution System and
for maintenance of any such Components that fail to perform adequately in the
end-use environment in order that the Signal Distribution System will, at all
times during the Term of this Agreement, meet or exceed the DIRECTV
requirements. Any failure of the Signal Distribution System to meet the
DIRECTV requirements shall be the responsibility of System Operator, and
System Operator agrees to indemnify and hold DIRECTV harmless from any and
all Claims (as such term is defined in the Indemnification section of the
Terms and Conditions attached hereto as EXHIBIT A) from SO Subscribers
arising from the failure of the Signal Distribution System to deliver the
necessary signal to such subscribers and from failure of the Signal
Distribution System to meet the DIRECTV requirements.

         2.4    COMMISSION AND PAYMENT STRUCTURE. The following sets forth
all payments and commissions to be made to System Operator as full
consideration for its fulfilling its obligations hereunder.

(a)      PAYMENT OF COMMISSIONS. DIRECTV will pay System Operator a monthly
residual commission that amount set forth in the Commission Schedule,
attached hereto and incorporated herein as EXHIBIT E, based on the Net
Receipts received by DIRECTV from each active SO Subscriber per month for
Commissionable Programming Packages, solely with respect to those Net
Receipts received by DIRECTV while this Agreement is in effect. In addition,
DIRECTV will pay System Operator a commission equal to [REDACTED - SUBJECT TO
A REQUEST FOR CONFIDENTIAL TREATMENT FILED WITH THE SEC ON JUNE 27, 2000] of
all Net Receipts received by DIRECTV from each active Previous SO Subscriber
per month for Commissionable Programming Packages, solely with respect to
those Net Receipts received by DIRECTV while this Agreement is in effect.
Commissions will be paid within sixty five ( 65 ) days after the accounting
month in which DIRECTV receives the Net Receipts.

(b)      PAYMENT OF SUBSIDY. During the Term, DIRECTV will pay System
Operator a one-time payment of [REDACTED SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT FILED WITH THE SEC ON JUNE 27, 2000] per net SO Subscriber activation
(the "Subsidy"). Net SO Subscriber activations shall mean the number of new SO
Subscriber activations less the number of disconnected SO Subscribers for each
applicable month. By way of example only, if System Operator adds one hundred
fifty (150) SO Subscribers in a given month and ten (10) SO Subscribers
disconnect in that same month, then the net SO Subscriber activation's for the
month will be one hundred forty (140). The monthly Subsidy will be paid within
sixty five (65) days after the accounting month for which DIRECTV calculates
the net activations.

         (c)   COMMISSION EXCLUSION.   [REDACTED - SUBJECT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SEC ON JUNE 27, 2000]

<PAGE>

         2.5      DIRECTV PROGRAMMING.

                  (a)   [REDACTED - SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT FILED WITH THE SEC ON JUNE 27, 2000] System Operator agrees that
all DIRECTV Programming (including any commercial insertion) shall be exhibited
in its entirety, in original form, as provided by DIRECTV, without any
modifications, additions or deletions. In no event shall System Operator
repackage any other programming or services with DIRECTV Programming. [REDACTED
- SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED WITH THE SEC ON JUNE 27,
2000]

                  (b)   System Operator shall not, and shall ensure that none
of SO Subscribers or residents or agents of an SO Property, (i) resell,
retransmit or rebroadcast or otherwise redistribute in any manner or form
whatsoever any DIRECTV Programming, or (ii) make any modification, addition,
or deletion to any of the DIRECTV Programming (including any commercial
insertions).

         2.6      EXCLUSIVITY. [REDACTED - SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT FILED WITH THE SEC ON JUNE 27, 2000]

         2.7      CUSTOMER SERVICE. System Operator shall undertake certain
customer service functions as described herein and in the DIRECTV System
Operator Policies and Procedures Manual as defined herein below to all SO
Subscribers and Independent SO Subscribers with respect to the installation
and maintenance of the Signal Distribution System and acceptance and
transmission of orders for DIRECTV Programming. System Operator agrees to
provide the same level of installation and maintenance support for the
Independent SO Subscribers.

         2.8      POLICIES AND PROCEDURES. Attached hereto in EXHIBIT F is a
copy of DIRECTV's System Operator Policies and Procedures Manual, which may
be amended, from time to time upon 30 days prior written notice from DIRECTV
(such Manual, as amended from time to time, the "DIRECTV System Operator
Policy Manual"). As DIRECTV's commissioned sales representative, System
Operator hereby agrees that it will follow and abide by the policies and
procedures related to soliciting and transmitting subscription orders for and
the promotion of DIRECTV Programming as specified in the DIRECTV System
Operator Policy Manual. The DIRECTV System Operator Policy Manual includes,
among other things, customer authorization procedures, DIRECTV receivables
payment, and various requirements related to taking subscription orders.

                                   ARTICLE III

                              TERM AND TERMINATION

         3.1      TERM AND TERMINATION. Unless earlier terminated in
accordance with this Agreement and in accordance with the terms set forth in
paragraph 3.2 (b) below, the term of this Agreement ("Term") shall commence
on the Execution Date and continue for a period of five (5) years. The
Agreement shall renew for an additional five (5) year

<PAGE>

period unless either party provides written notice to other no less than
[REDACTED SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED WITH THE SEC
ON JUNE 27, 2000] days prior to the expiration of the Term of its intent not
to renew the Agreement. Notwithstanding the foregoing, with respect to each
SO Property, the Term shall extend for the initial term of the Right of Entry
for each such SO Property obtained by System Operator during the said five-year
period, with the final expiration date of this Agreement coinciding with the
latest Right of Entry expiration date of the SO Properties. Either party may
terminate this Agreement, effective immediately (i) upon [REDACTED - SUBJECT
TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED WITH THE SEC ON JUNE 27, 2000]
days written notice to the other party following a material breach of this
Agreement by the other party, and the terminating party may suspend its
performance during such period; PROVIDED, HOWEVER, DIRECTV shall not cease
providing programming or customer service to SO Subscribers; (ii) upon the
filing of a petition in bankruptcy or for reorganization by or against the
other party for the benefit of its creditors, or the appointment of a
receiver, trustee, liquidator or custodian for all or a substantial part of
the other party's property, if such order of appointment is not vacated
within thirty (30) days; and (iii) upon the assignment by the other party of
this Agreement contrary to the terms hereof.

         3.2      OBLIGATIONS OF THE PARTIES UPON TERMINATION OR EXPIRATION.

                  (a)   SYSTEM OPERATOR'S OBLIGATIONS WITH RESPECT TO
INSTALLATIONS AND ACTIVATIONS. System Operator shall cooperate with DIRECTV
to enable DIRECTV or a substitute system operator to promptly perform and
complete all DIRECTV System Receiver installations and activations ordered by
SO Subscribers and Independent SO Subscribers prior to the termination of
this Agreement according to the regular installation and activation schedule
System Operator used during the Term of this Agreement. System Operator shall
direct all customer inquiries it receives after the termination of this
Agreement to DIRECTV (or such other party as specified by DIRECTV).

                        (b)   DIRECTV'S AND SYSTEM OPERATOR 'S OBLIGATIONS
WITH RESPECT TO SO PROPERTIES. Following the termination of this Agreement,
(i) DIRECTV shall continue to deliver DIRECTV Programming and related
services to all SO Properties in accordance with DIRECTV's then-existing
customer service procedures through the term of the Right of Entry for each
such SO Property; and (ii) DIRECTV shall notify the owner, manager or
homeowners' association of the MDU, as appropriate, of termination of System
Operator as DIRECTV's agent and recommend a substitute system operator to
provide service to SO Property with respect to delivery of DIRECTV
Programming and services. Subsequent to any termination or expiration of this
Agreement, for a reasonable transition period, not to exceed
[REDACTED - SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED WITH THE SEC
ON JUNE 27, 2000] days, System Operator shall not impair the ability of any
subscribers and residents of SO Properties to continue to receive DIRECTV
Programming nor shall System Operator impede in any manner whatsoever DIRECTV's
continued access (via the Signal Distribution System) to deliver DIRECTV
Programming to the subscribers and residents in all units of the SO Property.
DIRECTV

<PAGE>

shall continue to pay Commissions to System Operator for SO Properties with a
Right of Entry term in excess of the Term herein during any such transition
period.

                                   ARTICLE IV

                                  MISCELLANEOUS

         4.1   APPLICABLE LAW; ENTIRE AGREEMENT; MODIFICATION. This Agreement
shall be construed in accordance with and be governed by the laws of the
State of California, applicable to contracts made and to be performed
entirely therein, by residents of the State of California. This Agreement,
together with all Exhibits hereto and the Terms and Conditions, constitutes
the entire agreement between the parties, and supersedes all previous
understandings, commitments or representations concerning the subject matter.
Each party acknowledges that the other party has not made any representations
other than those that are contained herein. This Agreement may not be amended
or modified, and none of its provisions may be waived, except by a writing
signed by an authorized officer of the party against whom the amendment,
modification or waiver is sought to be enforced.

         4.2   REVIEW OF AGREEMENT BY COUNSEL; INTERPRETATION. By executing
this Agreement, each of the parties hereto is warranting and representing to
the other that he/she/it has had the opportunity to review this Agreement
with independent legal, financial, and tax counsel with respect to the effect
of each of the terms and conditions contained herein and has either reviewed
this Agreement with such counsel or has independently elected not to proceed
with such a review. Each of the parties further warrants and covenants that
he/she/it is satisfied with the results of such consultation or opportunity
to review and is signing this Agreement as his/her/its free act and deed and
not under any force or coercion. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
RULE OF LAW, INCLUDING BUT NOT LIMITED TO SECTION 1654 OF THE CALIFORNIA
CIVIL CODE, OR ANY LEGAL DECISION THAT WOULD REQUIRE INTERPRETATION OF ANY
CLAIMED AMBIGUITIES IN THIS AGREEMENT AGAINST THE PARTY THAT DRAFTED IT, HAS
NO APPLICATION AND ANY SUCH RIGHT IS EXPRESSLY WAIVED. The provisions of this
Agreement shall be interpreted in a reasonable manner to effect the intent of
the parties.

         4.3   COUNTERPARTS. This Agreement may be executed by the parties in
counterparts, each of which shall be deemed an original and all such
counterparts together shall constitute but one and the same instrument.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives as of the date first
written above.

<PAGE>

SYSTEM OPERATOR                        DIRECTV, INC.

By:   /s/ Sheldon Nelson               By:   /s/ Helen Latimer
   ----------------------------           -------------------------------
Name:  Sheldon Nelson                  Name:  Helen Latimer
Title:  President & CEO                Title:  Vice President

By:   /s/ Robert Biagioni
   ----------------------------
Name:  R.A. Biagioni
Title:  CFO & Secretary

                                       System Operator
                                       ADDRESS:
                                       MDU Communications (USA) Inc.
                                       108 - 11951 Hammersmith Way
                                       Richmond, British Columbia  V7A 5H9
                                       Canada
                                       Attention:  Brad Holmstrom

                                       If by FAX: (604) 277-8301
                                       Attention:  Brad Holmstrom
                                       Telephone #: (604) 277-8150<PAGE>

                                      3COM
                        VBN APPLICATION SERVICE PROVIDER
                         MASTER PURCHASE SALES AGREEMENT

                for Destinations in the United States and Canada

                                     between

                                3COM CORPORATION

                                       and

                     MDU COMMUNICATIONS INTERNATIONAL, INC.
                                   (CUSTOMER)

                       Effective Date:  May 16, 2000

                       Contract #:  C12096

                                LIST OF EXHIBITS

                           Exhibit Al -   Volume Discount Schedule for
                                          Destinations in the United States and
                                          Canada

                           Exhibit A2 -   Visitor Based Networking Price List

                           Exhibit B -    U.S. Export/Re-Export Requirements

                           Exhibit C -    Mutual Nondisclosure Agreement

                           Exhibit 0 -    Business to Business Internet Commerce
                                          Agreement

                           Exhibit E -    Customer Qualification Questionnaire

                           Exhibit F -    Participating Affiliates

                                        i

<PAGE>

                                      3COM
                        VEN APPLICATION SERVICE PROVIDER
                         MASTER PURCHASE SALES AGREEMENT

This Agreement is made on May 15, 2000               ("Effective Date") between:

3Com Corporation ("3Com")         and     MDU Communications International, Inc.
5400 Bayfront Plaza                       108-11951 Hammersmith Way
P.O. Box 58145
Santa Clara, CA 95052-8145                Richmond, BC Canada V7A 5H9
(408) 326-5000                            (604) 277-8150
FAX (408) 326-5001                        (604) 277-8301
Attn:    Sales Contract Administrator     Attn: Brad D. Holmstrom
M/S 1404

3COM CORPORATION                          CUSTOMER: MDU COMMUNICATIONS
                                          INTERNATIONAL, INC.

Signature:  /s/ Emad Zureik               Signature:  /s/ Sheldon Nelson
Printed  Emad Zureik                      Printed:  Sheldon Nelson
Title   SALES CONTROLLER                  Title:  President & CEO

Date:  5/16/2000                          Date:  5/16/2000

<PAGE>

                      3COM VBN APPLICATION SERVICE PROVIDER
                         MASTER PURCHASE SALES AGREEMENT

                                      INDEX

Signature Page
RECITALS
TERMS AND CONDITIONS
1        SCOPE
2        TERM
3        TERMINATION
         3.1      TERMINATION FOR CONVENIENCE
         3.2      TERMINATION FOR CAUSE
         3.3      OBLIGATIONS UPON TERMINATION OR EXPIRATION
4        End-User Software License
5        Payment Terms and Review
6        Discounts
7        Discount Review
8        Security Interest and Reservation of Title
         8.1      SECURITY INTEREST (FOR PRODUCTS DELIVERED WITHIN THE UNITED
                  STATES)
         8.2      RESERVATION OF TITLE (FOR PRODUCTS DELIVERED OUTSIDE THE
                  UNITED STATES)
9        Price Changes
10       Standard Order Procedure
11       Change Orders and Cancellation
12       Booking Window and Rescheduling
13       Delivery
14       Taxes and Duties
15       Export Control Regulations
16       Warranties
         16.1     HARDWARE WARRANTY
         16.2     SOFTWARE WARRANTY
         16.3     YEAR 2000 WARRANTY
         16.4     OBTAINING WARRANTY SERVICE
         16.5     WARRANTIES EXCLUSIVE
 17               Non-Warranty Repair Service
 18               Patent and Copyright Indemnity
 19               Limitation of Liability
 20               Product Changes
 21               Confidentiality and Publicity
 22               General
                  22.1    PARTICIPATION BY AFFILIATES
                  22.2    ENTIRE AGREEMENT
                  22.3    FORCE MAJEURE
                  22.4    NOTICES
                  22.5    WAIVER
                  22.6    SEVERABILITY
                  22.7    ASSIGNMENT
                  22.8    PHOTOCOPY OF ORIGINAL
                  22.9    DISPUTE RESOLUTION
                  22.10   GOVERNING LAW
                  22.11   ATTORNEY'S FEES
                  22.12   CHOICE OF LANGUAGE
                  22.13   UNITED STATES GOVERNMENT END USERS
 23               Leasing

<PAGE>

                      3COM VBN APPLICATION SERVICE PROVIDER
                         MASTER PURCHASE SALES AGREEMENT

                                    RECITALS

         A.   3Com develops, manufactures, and sells or licenses certain
hardware and software products under the 3Com(R) trademark, as described in
its Buyer's Guide, available on the 3Com web site at
http://www.3com.com/products/index.html. Products available for sale or
licensing to Customer are designated in the current applicable Price List,
available on the 3Com Web site http://pa.3com.com (password information to be
provided by 3Com after execution of this Agreement) and incorporated herein
by reference. The Products must be purchased for Customer's Infrastructure
(purchase for providing services to Customer's subscribers and customers).

         B.   By this Agreement the parties have set forth the following
conditions under which Customer will purchase from 3Com.

         The following terms shall have a defined meaning as used in this
Agreement:

         "Customer" means the entity named on page (ii) who, for the purposes
of this Agreement, is a purchaser or licensee of computer products who
acquires such products for its own internal use rather than for distribution
or resale. "Customer" includes the Affiliates of Customer, as defined in
Subsection 22.1 - Participation by Affiliates, below.

         "Hardware" means those networking Products and similar equipment and
also including options, accessories and attachments to such Products and
equipment, as described in the 3Com Price List. Hardware includes as a
component thereof any media fixedly embedded therein such that it is not
normally replaced except for maintenance and repair. Hardware may include in
its meaning, depending upon context, a system or systems consisting of
tangible equipment and Software.

         "3Com" means 3Com Corporation, a Delaware corporation with its
principal place of business located at the address shown on page ii.

         "Products" includes both Hardware and Software, unless a particular
usage indicates otherwise.

         "Software" means those Products described in the 3Com Price List
that are computer programs in object code form.

         "Spares" means individual spare parts and spares kits used to repair
Products. Spares may be new or refurbished.

                              TERMS AND CONDITIONS

         The parties agree as follows:
1        SCOPE

         3Com will accept electronic purchase orders from Customer for
Products listed in 3Com's current applicable Price List under the terms of
this Agreement, for shipment by 3Com from the United States, or as otherwise
agreed, to destinations in the United States or Canada. If Customer also
requires that orders be shipped to countries in Latin America; from 3Com's
European Customer Account Management (ECAM) department in the United Kingdom
to locations in Europe, the Middle East, and Africa; or from 3Com's Asian
Customer Account

                                        1

<PAGE>

Management (ACAM) department in Singapore to locations in Asia and the
Pacific Rim, then the multi-region version of this Agreement must be executed.

         Customer's purchases of 3Com Products either directly from 3Com, its
authorized resellers, or its authorized distributor's value-added resellers
(collectively referred to as "resellers") will be counted toward Customer's
volume commitment, provided Customer substantiates all purchases through
resellers, as described in Section 7 - Discount Review, below. This Agreement
does not set the prices or discounts at which Customer may purchase Products
from a reseller.

         This Agreement does not cover, and 3Com will not accept purchase
orders under this Agreement for, products of Palm, Inc., a subsidiary of 3Com.

2        TERM

         This Agreement shall become effective on Effective Date and shall
continue for a period of one (1) year, and will automatically be extended for
additional one-year terms thereafter unless one party gives at least thirty
(30) days notice to the other party prior to the expiration of the current
term of its intention that the Agreement expire at the end of its current
term. The discount matrix shown on Exhibit A1, attached hereto and
incorporated herein by reference, is subject to change at each annual
anniversary of this Agreement. If 3Com chooses to change the discount matrix,
3Com will provide written notice to Customer at least forty-five (45) days
prior to an annual anniversary. If Customer objects in writing to the new
discount matrix prior to the anniversary, this Agreement will terminate on
the upcoming anniversary. Otherwise, the new discount matrix will become
effective on the anniversary and remain in effect until changed at a
subsequent anniversary using the same procedure.

         The volume discounts set forth in Exhibit A1 - Volume Discount
Schedule for Destinations in the United States and Canada - apply to all
Products included in 3Com's Price List for the United States and Canada,
except for those listed in Exhibit A2 - Visitor Based Networking Price list -
which supersede the Volume Discounts for the designated time period. If the
Products in Exhibit A2 expire, the Volume Discounts in Exhibit A1 then apply.

         After the initial term, if 3Com wishes to change any provisions of
this Agreement to conform to its then-current practices, 3Com shall give
Customer notice at least forty-five (45) days prior to an annual anniversary.
If Customer objects in writing to the changed provisions, this Agreement will
terminate on the upcoming anniversary, unless the parties are still engaging
in good faith negotiations regarding any changed provisions, in which case
the Agreement will be automatically extended for up to ninety (90) days or
until the parties reach agreement or determine that agreement is
unattainable. If Customer does not object, the new provisions will become
effective on the anniversary and remain in effect until changed at a
subsequent anniversary using the same procedure.

3        TERMINATION

         3.1   TERMINATION FOR CONVENIENCE. Either party may terminate this
Agreement, at will, at any time, with or without cause, by written notice to
the other given not less than sixty (60) days prior to the effective date of
such notice. In no event shall either party be liable for termination of this
Agreement pursuant to this Subsection.

         3.2   TERMINATION FOR CAUSE. Either party shall have the right to
terminate this Agreement for cause if the other party:

         (a) fails to perform any material term or condition of this
Agreement, and does not remedy the failure within thirty (30) days after
receipt of written notice of such default given by the non-defaulting party;
or

         (b) becomes insolvent, files or has filed against it a petition
under applicable bankruptcy or insolvency laws which is not dismissed within
ninety (90) days, proposes any dissolution, composition or financial
reorganization with creditors, makes an assignment for the benefit of
creditors, or if a receiver, trustee, custodian or similar agent is appointed
or takes possession with respect to any property or business of the
defaulting party.

                                        2

<PAGE>

3.3      OBLIGATIONS UPON TERMINATION OR EXPIRATION. The termination or
expiration of this Agreement shall in no way relieve either party from its
obligations to pay the other party any sums accrued hereunder prior to such
termination or expiration or affect the limitation of liability. The
obligations identified in the United States Government End Users and Export
Control Regulations clauses shall survive indefinitely. Other obligations
which shall survive for a period of five (5) years from the termination or
expiration of this Agreement include: security interest and reservation of
title; taxes and duties; and patent and copyright indemnity provisions set
forth herein. All warranties and confidentiality provisions shall remain in
effect for their stated duration.

4        END-USER SOFTWARE LICENSE AGREEMENT

         Software is subject to an End-User License Agreement. If there is
any inconsistency between this Agreement and the End User License Agreement,
this Agreement will prevail. By its terms, such End-User License Agreement
prohibits unauthorized copying. Customer agrees to abide by the terms of the
License Agreement.

5        PAYMENT TERMS AND REVIEW

         Standard payment terms are net thirty (30) days after issuance of
the invoice. The invoice is issued upon shipment. Customer must give 3Com
written notice of any discrepancies among the purchase order, the invoice,
and the Products received, within thirty (30) days after receipt of the
Products or the invoice, whichever occurs later. If there is any dispute as
to a part of a shipment, Customer will pay for the undisputed part of that
shipment. 3Com reserves the right to charge Customer interest on any
delinquent balance. This interest is computed on a daily basis for each day
that the payment is delinquent, at the lesser of eighteen percent (18%) per
year or the maximum rate permitted by law. 3Com reserves the right to refuse
shipment to Customer if Customer is delinquent in making payments to 3Com.
All payments to 3Com shall be in U.S. dollars, free of any restrictions and
less any Withholding Tax (defined in Section 14, Taxes and Duties, below).

         Credit limits and payment terms decisions are made, at 3Com's sole
discretion, by an analysis of Customer's current and historical financial
information, bank references, trade references, payment practices, etc.
Customer must provide current financial information to 3Com on an annual
basis, or more frequently if so requested. In the event an adequate credit
limit cannot be granted or until initial credit approval is given, deliveries
will be made only on a cash-in-advance or irrevocable letter of credit basis.

         In the event Customer's average days to pay is in excess of
contracted payment terms, Customer will be provided with a written warning of
3Com's intent to adjust Customer's discount thirty (30) days from Customer's
receipt of the warning letter if payment practices do not immediately conform
to the contracted payment terms. In the event Customer continues to pay late
in spite of the warning, Customer's discount structure will be reduced by
one-half (1/2) point for each fifteen (15) days by which the average days to
pay is later than the current contracted payment terms. In no event will
authorized payment terms exceed net sixty (60) days. Conversely, consistent
with 3Com's discount structure being related to payment practices Customer's
discount structure will be increased by one-half (1/2) point for each fifteen
(is) day period reduction from current contracted payment terms that Customer
agrees to. Such discount changes will apply to all orders received following
notice of such change. Payment terms are not changed for individual purchase
orders.

6         DISCOUNTS

         The list prices for the Products, as set forth from time to time in
3Com's applicable Price List, are used in computation of prices charged to
Customer by 3Com. The volume discounts set forth in Exhibit A1 - Volume
Discount Schedule for Destinations in the United States and Canada - apply to
all Products included in 3Com's Price List for the United States and Canada,
except for those listed in Exhibit A2 - Visitor Based Networking Price list -
which supersede the Volume Discounts for the designated time period. If the
Products in Exhibit A2 expire, the Volume Discounts in Exhibit Al then apply.
3Com shall have the right, in its sole discretion, to add or delete
Non-Discountable Products from, and to change discount categories in, the
then-current applicable Price List, upon giving at least thirty (30) days
written notice.

                                        3

<PAGE>

7        DISCOUNT REVIEW

         Every six (6) months 3Com will monitor and adjust Customer's
discount level in accordance with the volume purchase commitment associated
with the discount levels as shown in the applicable Volume Discount Schedule.
Customer must request that one hundred percent (100%) of the volume purchase
commitment be shipped by the end of the first year of this Agreement. During
each subsequent year of this Agreement, Customer must request that forty-five
percent (45%) of the annual volume purchase commitment be shipped during the
first six months, and one hundred percent (100%) by the end of the year. 3Com
will not require Customer to purchase Products it does not want, and will not
charge Customer for Products that were not purchased. In order to aggregate
reseller sales toward Customer's volume commitment, Customer must provide
proof of all such purchases by submitting a photocopy of the resellers'
invoices, not later than five (5) business days before the six (6) and twelve
(12) month anniversary dates of this Agreement. Upon request, 3Com will
provide Customer with information pertaining to orders issued to date and
Customer's discount status. In the event Customer fails to meet or exceeds
the volume purchase commitment specified in the applicable Volume Discount
Schedule, 3Com will adjust the discounts to conform to the actual volume
purchase level.

         Discount levels (based upon volume purchased) will be adjusted only
at the end of the sixth, twelfth, eighteenth months, and every six months
thereafter, to become effective for purchase orders received after the
discount change.

8        SECURITY INTEREST AND RESERVATION OF TITLE

         8.1    SECURITY INTEREST (FOR PRODUCTS DELIVERED WITHIN THE UNITED
STATES). Customer hereby grants to 3Com a purchase money security interest
covering each shipment of Products made hereunder (and any proceeds thereof)
in the amount of 3Com's invoice for such shipment until payment in full is
received by 3Com. (A purchase money security interest only applies to the
3Com Products purchased by Customer and the proceeds from the sale of such
Products by Customer.) Customer agrees to sign and execute any and all
documents as required by 3Com to perfect such security interest.

         8.2    RESERVATION OF TITLE (FOR PRODUCTS DELIVERED OUTSIDE THE
UNITED STATES). Subject to Section 23, "Leasing," if applicable, in order to
ensure that 3Com is paid for all Products sold or licensed to Customer, 3Com
reserves title in the Products until Customer pays 3Com in full for the
Products, at which time title in the Products shall pass to Customer (except
that in the case of Software, only title to the media shall pass).

9        PRICE CHANGES
         3Com may increase the prices of Products set forth in its Price List
by written notice to Customer not less than thirty (30) days prior to the
effective date of such increase. The "effective date" is the date of
announcement of the new price to the general public. Orders issued by
Customer prior to the effective date will be invoiced at the prior lower
price provided the shipments are scheduled to ship within sixty (60) days of
the effective date. All orders issued after the effective date, or those in
the backlog which are scheduled to ship sixty (60) days or more after the
effective date shall be subject to the price increase.

         3Com may decrease the prices of Products set forth in its Price List
by written notice to Customer at any time. A price decrease will apply to all
Customer orders in the 3Com backlog on the notification date of such
decrease, and to all orders issued after the notification date.

10       STANDARD ORDER PROCEDURE
         Customer must place orders for Products by submitting Purchase
Orders electronically to 3Com, according to and only after executing the
Business Internet Commerce Agreement, attached as Exhibit D. The Purchase
Order must reference this Agreement and state the 3Com Product number,
quantity, applicable price, requested delivery date, bill to and ship to
addresses, special shipping instructions (if any), partial/no partials
allowed and any special order handling instructions. There is a two hundred
fifty dollar ($250) minimum order amount, except in the case of Spares.
Delivery date requested must be no less than five (5) business days after
3Com's receipt of the purchase order. Orders shall be subject to written
acceptance by 3Com and

                                        4

<PAGE>

delivery schedules established in accordance with Product availability and
Customer's credit status. 3Com will make reasonable efforts to expedite
delivery of an "ASAP order" subject to Product availability, but is not
obligated to make such delivery on an expedited basis. Any additional charges
incurred due to expediting will be borne by Customer.

         Although Customer may use its standard purchase order and other
forms, and 3Com may use its standard order acknowledgement and invoice and
other forms, the terms and conditions of this Agreement will prevail over
Customer's and 3Com's forms and any inconsistent, conflicting or different
terms in such form will be of no effect.

         Purchase Orders for Products should be submitted to one of the
following locations. Ordering locations may be changed from time to time.
Customer should check with its 3Com Sales Representative to ensure orders are
sent to the correct location.

         (for customers located in the North Central Region)
                           3Com Corporation.
                           Attn:  Order Management
                           3800 Golf Road
                           Rolling Meadows, Illinois 60008
                           U.S.A.
                           FAX:   (847)262-0159
                           TOLL-FREE PHONE: (888) 3STATUS {(888) 378-2887)

         (for customers located in the Texas and the Western regions)
                           3Com Corporation
                           Attn:  Order Management
                           P.O. Box 58145
                           Santa Clara, California 95052-8145
                           U.S.A.
                           FAX:   (408) 326-7070
                           TOLL-FREE PHONE: (888) 3STATUS {(888) 378-2887)

         (for customers located in the Northeastern, South Central, Federal and
          Canada regions)
                           3Com Corporation
                           Attn:  Order Management
                           3Com Drive
                           Marlborough, Massachusetts 01752
                           U.S.A.
                           FAX: (508) 323-6058
                           TOLL-FREE PHONE: (888) 3STATUS {(888) 378-2887}

11       CHANGE ORDERS AND CANCELLATION

         Any and all changes to Customer's purchase orders must be provided
by either facsimile or e-mail notice (not by EDI), whichever method was used
for submitting the original purchase order. If the original purchase order
was submitted by EDI, the change order must be submitted by facsimile or
e-mail. Any change order increasing the purchase will be accepted by 3Com if
it can satisfy the additional requirement from available capacity and the
dollars added are within the authorized credit limit.

         If Customer cancels any portion or all of an order, it shall be
assessed a charge equal to a percentage of the net price of the cancelled
Products, according to the following schedule:

          Cancellation notice received prior to earlier of scheduled or actual
shipment date

<TABLE>
<CAPTION>
                                               Cancellation Charge
                                Standard Products            Configured Products
<S>                             <C>                          <C>
60 days or more                              No charge                 No charge
59-30 days                                   No charge                 5%
29-6 days                                    No charge                 10%
5 days or less                               5%                        15%
</TABLE>

                                        5

<PAGE>

         "Standard Product" shall mean Product which is listed in the Scorn
Price List and sold off-the-shelf with no additional work done to the Product
prior to shipment.

         "Configured Product" shall mean Product which is either (i) Standard
Product into which other Standard Products have been loaded/inserted or (ii)
Standard Product that is set up for operation prior to being shipped to
Customer.

         If 3Com is unable to meet the delivery schedule, it shall provide
notice as soon as it is reasonably aware of the situation. If 3Com fails to
ship on scheduled ship date, Customer may reschedule or cancel at no charge.

         No Product may be returned except under warranty or for repair or
due to shipment error by 3Com.

12               BOOKING WINDOW AND RESCHEDULING

         The standard booking window is sixty (60) days from the date of
order acknowledgement. This may be extended to one hundred twenty (120) days
with the prior approval in writing from 3Com's Regional Sales Manager, and
beyond one hundred twenty (120) days with the prior written approval of the
Distribution Services Group Director or if required due to product
unavailability. The number of reschedules permitted within the booking window
is unlimited. A shipment requested to be delayed beyond the booking window
will be cancelled and the cancellation charge will be assessed.

13               DELIVERY

         Subject to Section 23, "Leasing," if applicable, Products will be
shipped Free Carrier (FCA) (Incoterms 2000), 3Com's shipping dock, freight
collect (i.e., prepaid by Customer or charged to Customer's account with the
carrier). Title and risk of loss shall pass to Customer upon delivery to the
first common carrier, except that shipments to destinations outside of the
United States are subject to Subsection 8.2 - Reservation of Title, above.
Customer wilt pay all costs relating to transportation, delivery, duties and
insurance. Customer will be responsible for filing claims relating to any
lost or damaged goods.

14               TAXES AND DUTIES

         Customer is responsible for all taxes imposed in connection with the
sale to Customer of 3Com Products or services or which 3Com may incur in
respect of this Agreement (except taxes imposed on 3Com's income) including,
without limitation, all sales, value-added, gross receipts, excise, or other
taxes of any nature, and any penalties, interest, and collection or
withholding costs associated with any of the foregoing items. Alt such
amounts are in addition to other amounts payable hereunder and this
obligation shall survive termination or expiration of this Agreement

         If applicable law requires Customer to withhold any income taxes
levied by the authorities of Canada on payments to be made pursuant to this
Agreement ("Withholding Tax"), Customer shall take advantage of the reduced
Withholding Tax provided for by the Canada-United States tax treaty then in
force and shall be entitled to deduct such Withholding Tax from the payments
due to 3Com hereunder. Customer shall promptly effect payment of the
Withholding Tax to the appropriate tax authorities and shall transmit to 3Com
within thirty (30) business days of such payment official tax receipts or
other evidence issued by the appropriate tax authorities sufficient to enable
3Com to support a claim for income tax credits in the United States Customer
further agrees to assist 3Com, upon request, if 3Com contests, by appropriate
legal or administrative proceedings, the validity or amount of the
Withholding Tax. In the event 3Com does not receive official tax receipts or
other evidence within thirty (30) days, 3Com shall have the right to invoice
Customer for such Withholding Tax and Customer agrees to pay such amounts
upon receipt of the invoice.

         For shipments within the United States, Customer may provide 3Com
with a tax exemption certificate acceptable to the taxing authorities in lieu
of paying such taxes: however,

                                        6

<PAGE>

Customer shall reimburse 3Com for any fines, penalties, taxes, and other
charges assessed by the taxing authorities, as well as 3Com's reasonable
expenses due to Customer's submission of invalid information.

         On orders shipped outside the United States, Customer shall be the
importer of record and is responsible for obtaining import licenses, paying
import license or permit fees, duties and customs fees and any other
governmental or import taxes or fees, and preparing and submitting all
required documentation in connection with importing the 3Com Products.

15                   EXPORT CONTROL REGULATIONS

         Customer will not export or re-export the Products (including their
accompanying documentation or any copies thereof) purchased under this
Agreement in violation of any applicable laws or regulations of the United
States or in the country in which Customer obtained them. Customer agrees to
comply with the U.S. Export/Re-Export Requirements set forth in Exhibit B,
attached hereto and incorporated herein by reference. The list of countries
in Exhibit B is accurate as of May, 1999. Such list is subject to change by
the U.S. Government, and it shalt be considered updated to be consistent with
then-current U.S. law. Additional information about Customer may be required
before encrypted Products may be purchased. The purchase will be allowed only
if it is in full compliance with U.S. law. 3Com may require Customer to fill
out and execute additional export control documents.

         3Com agrees to use commercially reasonable steps to obtain, at
3Com's expense, all documentation required by the United States Export
Administration Regulations and/or other authorities to permit the exportation
of Products (including their accompanying documentation or any copies
thereof) to Customer. Customer agrees to obtain and provide International
Import Certificates and/or other support documentation required by 3Com in
order to apply for U.S. export licenses. Customer agrees to furnish 3Com with
all necessary information needed for the export licensing process in a timely
manner. 3Com shall have no liability or obligation to Customer if the
responsible government authorities decline to issue any such export licenses
or if such licenses are not issued in a timely manner. ALL ORDERS ISSUED
PURSUANT TO THIS AGREEMENT ARE SUBJECT TO THE OBTAINING OF SAID LICENSES.

         If Customer chooses to use a freight forwarder or agent, other than
a 3Com preferred freight forwarder, to export Products (including their
accompanying documentation or any copies thereof) from the United States,
Customer or its properly authorized agent or forwarder must hold a properly
executed power of attorney to prepare and sign Shipper's Export Declarations
as exporter of record from the United States.

         Customer must fill out, sign and return to the 3Com Trade and
Compliance department, the Customer Qualification Questionnaire in Exhibit E,
attached and incorporated by reference, prior to any product being exported.

16                 WARRANTIES

         16.1. HARDWARE WARRANTY. 3Com warrants to Customer that all Hardware
sold by 3Com to Customer under the terms of this Agreement will be free from
defects in workmanship and materials under normal use and service for the
following lengths of time from the date of purchase:

Network Interface Cards             Lifetime of Network Interface Card
Most Hardware                               One Year*
* unless a longer warranty is indicated in the limited warranty accompanying the
Hardware Product. Accessories may have a shorter warranty.

Spare parts and spares kits                                         90 days

                                        7

<PAGE>

3Com's sole obligation under this express warranty shall be, at 3Com's option
and expense, to repair the defective Product or part, deliver to Customer an
equivalent Product or part to replace the defective item, or if neither of
the two foregoing options is reasonably available, 3Com may, in its sole
discretion, refund to Customer the purchase price paid for the defective
Product. All Products that are replaced will become the property of 3Com.
Replacement Products or parts may be new or reconditioned. 3Com warrants any
replaced or repaired Product or part for ninety (90) days from shipment or
the remainder of the initial warranty period, whichever is longer.

         16.2. SOFTWARE WARRANTY 3Com warrants to Customer that each Software
program licensed from it, except as noted below, will perform in substantial
conformance to its program specifications for a period of ninety (90) days.
3Corn warrants the media containing Software against failure during the
warranty period. The warranty commences on the date of purchase. No updates
are provided under this Agreement unless specifically stated as an included
service in the warranty in the user guide accompanying the Software at the
time of delivery. 3Com's sole obligation with respect to this express
warranty shall be (in 3Com's discretion) to refund the purchase price paid by
Customer for any defective Software, or to replace any defective media with
Software which substantially conforms to applicable 3Com published
specifications. Customer assumes responsibility for the selection of the
appropriate applications program and associated reference materials. 3Com
makes no warranty or representation that its Software will meet Customer's
requirements or work in combination with any hardware or applications
software products provided by third parties, that the operation of the
Software will be uninterrupted or error-free, or that all defects in the
Software will be corrected. For any third party products listed in the 3Com
Software documentation or specifications as being compatible, 3Com will make
reasonable efforts to provide compatibility, except where the
non-compatibility is caused by a "bug" or defect in the third party's product
or from use of the Software not in accordance with 3Com's published
specifications or user manual.

         THIS 3COM SOFTWARE PRODUCT MAY INCLUDE OR BE BUNDLED WITH THIRD
PARTY SOFTWARE, THE USE OF WHICH IS GOVERNED BY A SEPARATE END USER LICENSE
AGREEMENT. THIS 3COM WARRANTY DOES NOT APPLY TO SUCH THIRD PARTY SOFTWARE.
FOR THE APPLICABLE WARRANTY, PLEASE REFER TO THE END USER LICENSE AGREEMENT
GOVERNING THE USE OF SUCH SOFTWARE.

         16.3 YEAR 2000 WARRANTY In addition to the Hardware Warranty and
Software Warranty identified above, 3Com warrants that each Product sold or
licensed to Customer that is date sensitive will continue performing properly
with regard to such date data on and after January 1, 2000, provided that all
other products used by Customer in connection or combination with the 3Com
Products, including hardware, software, and firmware, accurately exchange
date data with the 3Com Product with the exception of those Products
identified at 3Com's Web site, http://www.3com.com/prnducts/v~000.html, as
not meeting that standard. If it appears that Product that is stated to meet
this standard does not perform properly with regard to such date data on and
after January 1, 2000, and Customer notifies 3Com before ninety (90) days
after shipment of the Product by 3Com, 3Com shall, at its option and expense,
provide a Software update which would effect the proper performance of such
Product, repair such Product, deliver to Customer an equivalent Product to
replace such Product, or if none of the foregoing is feasible, refund to
Customer the purchase price paid for such Pro duct Any Software update and
replaced or repaired Product will carry a Year 2000 Warranty for ninety (90)
days.

         16.4 OBTAINING WARRANTY SERVICE. Customer must contact the 3Com
Corporate Service Center or an Authorized 3Com Service Center promptly within
the applicable warranty period to obtain warranty service authorization.
Dated proof of purchase may be required. Products returned to 3Com's
Corporate Service Center must be pre-authorized by 3Com with a User Service
Order (USO) number (or a Return Material Authorization (RMA) number or a
Service Repair Order (SRO) number, whichever was issued) marked on the
outside of the package, and sent prepaid and packaged appropriately for safe
shipment, and it is recommended that they be insured or sent by a method that
provides for tracking of the package. Responsibility for loss or damage does
not transfer to 3Com until the returned item is received by 3Com. The
repaired or replaced item will be shipped to Customer, at 3Com's expense, not
later than thirty (30) days after 3Com receives the defective Product, except
that batch returns of more than thirty (30) units may be subject to a
turnaround time greater than thirty (50) days. Quicker turnaround time can be
obtained by purchasing a 3Com service agreement and 3Com will retain risk of
loss or damage until the item is delivered to Customer.

                                        8

<PAGE>

         3Com shall not be responsible for any software, firmware,
information, or memory data of Customer contained in, stored on, or
integrated with any products returned to 3Com for repair, whether under
warranty or not.

         In the event a Product completely fails to function or exhibits a
defect in materials and workmanship within the first forty-eight (48) hours
of installation but no later than thirty (30) days after the date of
purchase, and this is verified by 3Com, it will be considered dead- or
defective-on-arrival (IDOA) and a replacement shall be provided prior to 3Com
receiving the defective Product, but only if Customer provides a purchase
order number, credit card number, or other method of payment acceptable to
3Com, to be used if 3Com needs to charge Customer for the replacement, as
explained below. The replacement Product will normally be shipped not later
than three (3) business days after 3Com's verification of the DOA Product,
but may be delayed due to export or import procedures. The shipment of a
replacement product prior to 3Com receiving the defective Product is subject
to local legal requirements and may not be available in all locations. When
such a replacement is provided and Customer fails to return the defective
Product to 3Com within fifteen (15) days after shipment of the replacement,
3Com will charge Customer for the replacement Product, at list price.

         16.5 WARRANTIES EXCLUSIVE. IF A 3COM PRODUCT DOES NOT OPERATE AS
WARRANTED ABOVE, CUSTOMER'S SOLE REMEDY FOR BREACH OF THAT WARRANTY SHALL BE
REPAIR, REPLACEMENT, OR REFUND OF THE PURCHASE PRICE PAID, AT 3COM'S OPTION.
TO THE FULL EXTENT ALLOWED BY LAW, THE FOREGOING WARRANTIES AND REMEDIES ARE
EXCLUSIVE AND ARE IN LIEU OF ALL OTHER WARRANTIES, TERMS, OR CONDITIONS,
EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTORY OR
OTHERWISE, INCLUDING WARRANTIES, TERMS, OR CONDITIONS OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, AND SATISFACTORY QUALITY AND CORRESPONDENCE
WITH DESCRIPTION, ALL OF WHICH ARE EXPRESSLY DISCLAIMED. 3COM'S WARRANTIES
CONTAINED HEREIN RUN ONLY TO CUSTOMER, AND ARE NOT EXTENDED TO ANY THIRD
PARTIES. SCOM NEITHER ASSUMES NOR AUTHORIZES ANY OTHER PERSON TO ASSUME FOR
IT ANY OTHER LIABILITY IN CONNECTION WITH THE SALE, INSTALLATION, MAINTENANCE
OR USE OF ITS PRODUCTS.

         3COM SHALL NOT BE LIABLE UNDER THIS WARRANTY IF ITS TESTING AND
EXAMINATION DISCLOSE THAT THE ALLEGED DEFECT IN THE PRODUCT DOES NOT EXIST OR
WAS CAUSED BY CUSTOMER'S OR ANY THIRD PERSON'S MISUSE, NEGLECT, IMPROPER
INSTALLATION OR TESTING, UNAUTHORIZED ~EMPTS TO OPEN, REPAIR OR MODIFY THE
PRODUCT, OR ANY OTHER CAUSE BEYOND THE RANGE OF THE INTENDED USE, OR BY
ACCIDENT, FIRE, LIGHTNING, OTHER HAZARDS, POWER CUTS OR OUTAGES, OR ACTS OF
GOD.

17       NON-WARRANTY REPAIR SERVICE
         Non-warranty repair services for Hardware will be provided at a 3Com
designated facility for a fixed price. When a Product is obsoleted, 3Com will
issue an obsolescence notice that will state the period of time that repair
seNice will continue to be available. Spare parts are normally available for
two (2) years after obsolescence, and repairs are normally available for five
(5) years after obsolescence.

18       PATENT AND COPYRIGHT INDEMNITY
         3Com shall, at its own expense, defend or settle any suit or
proceeding that is instituted against Customer to the extent such suit or
proceeding alleges that any Product sold by 3Com hereunder infringes any duly
issued patent or copyright of the United States, and shall pay all damages
awarded therein against Customer or agreed upon in settlement by 3Com;
provided that Customer (i) gives 3Com immediate notice in writing of any such
suit, proceeding or threat thereof', (ii) permits 3Com sole control, through
counsel of 3Com's choice, to answer the charge of infringement and defend
and~or settle such suit; and (iii) gives 3Com all the needed information,
assistance and authority, at 3Com's expense, to enable 3Com to defend or
settle such suit.

                                        9

<PAGE>

         The above provision shall not apply to, and 3Com shall have no
liability or obligation for, any infringement arising from the following: (i)
any modification, servicing or addition made to the Product by anyone other
than 3Com; (ii) the use of such a Product as a pan of or in combination with
any devices, parts or software not provided by 3Com; (iii) compliance with
Customer's design requirements or specifications; (iv) the use of other than
a current unaltered release of the Software available from 3Com; or (v) the
use of such Product to practice any method or process which does not occur
wholly within the Product. This exclusion applies to the extent that the
infringement would have been avoided but for such modification, combination,
compliance with specifications, use of other than the current release, or
practice of such method or process.

         In the event the use of any Product purchased from 3Com be enjoined,
or in the event 3Com wishes to minimize its potential liability hereunder,
3Com may, at its sole option and expense: (i) procure for Customer the right
to use such Product; (ii) substitute a functionally equivalent,
non-infringing unit of the Product; (iii) modify such Product so that it no
longer infringes but remains functionally equivalent; or (iv) if none of the
foregoing are commercially feasible, take back such Product and refund the
purchase price paid by Customer for such Product, depreciated over a five (5)
year period using the straight line method. 3Com shall in no event be
obligated to accept new orders for Products which are subject to a claim of
infringement covered under this Section.

         THIS SECTION STATES 3COM'S TOTAL RESPONSIBILITY AND LIABILITY, AND
CUSTOMER'S SOLE REMEDY, FOR ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY
INTELLECTUAL PROPERTY RIGHT BY ANY PRODUCTS DELIVERED HEREUNDER OR ANY PART
THEREOF AND IS IN LIEU OF AND REPLACES ANY AND ALL OTHER EXPRESS, IMPLIED OR
STATUTORY WARRANTIES REGARDING INFRINGEMENT.

19               LIMITATION OF LIABILITY

         TO THE FULL EXTENT ALLOWED BY LAW THE PARTIES EXCLUDE ANY LIABILITY,
WHETHER BASED IN CONTRACT OR TORT (INCLUDING NEGLIGENCE), FOR INCIDENTAL,
CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES OF ANY KIND, OR FOR LOSS
OF REVENUE OR PROFITS, LOSS OF BUSINESS, LOSS OF INFORMATION OR DATA, OR
OTHER FINANCIAL LOSS ARISING OUT OF OR IN CONNECTION WITH THE SALE,
INSTALLATION, USE, PERFORMANCE, FAILURE OR INTERRUPTION OF THE PRODUCTS
PURCHASED OR LICENSED UNDER THIS AGREEMENT. THE EXCLUSIONS STATED IN THIS
PARAGRAPH ALSO APPLY TO SCOM'S SUPPLIERS.

         NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, THE MAXIMUM
LIABILITY OF EITHER PARTY HEREUNDER SHALL NOT EXCEED THE PURCHASE PRICE OF
THE PRODUCTS PURCHASED DURING THE TERM OF THIS AGREEMENT. IN THE CASE OF
CUSTOMER'S LIABILITY TO 3COM, THE FOREGOING AMOUNT SHALL BE IN ADDITION TO
THE PAYMENTS DUE BY CUSTOMER TO 3COM FOR PRODUCTS PURCHASED HEREUNDER.

         THE DISCLAIMER OF LIABILITY WILL NOT BE AFFECTED IF ANY REMEDY
PROVIDED HEREIN SHALL FAIL OF ITS ESSENTIAL PURPOSE. CUSTOMER HAS ACCEPTED
THE DISCLAIMER OF LIABILITY AS PART OF A BARGAIN TO LOWER THE PRICE OF THE
GOODS AND UNDERSTANDS THAT THE PRICE OF THE GOODS WOULD BE HIGHER IF 3COM
WERE REQUIRED TO BEAR ADDITIONAL LIABILITY.

20               PRODUCT CHANGES
         3Com reserves the right to change, improve or add any new Product at
any time. 3Com shall provide written notice of any major changes to Products
purchased under this Agreement that affect form, fit or function prior to
their implementation.

21               CONFIDENTIALITY AND PUBLICITY
         During the course of this Agreement, each party may disclose to the
other certain proprietary or confidential information which shall be received
in confidence and not revealed to third parties or applied to uses other than
recipient's performance of its obligations hereunder, as specified in greater
detail in Exhibit C - Mutual Nondisclosure Agreement, anached hereto unless

                                       10

<PAGE>

previously executed. The term of any previously executed nondisclosure
agreement is hereby extended to be coterminous with this Agreement. Neither
party shall disclose, advertise or publish the terms or conditions of this
Agreement without the prior written consent of the other party.

22           GENERAL
         22.1 PARTICIPATION BY AFFILIATES. Affiliates of Customer as
hereinafter defined may elect to purchase Products from 3Com under this
Agreement by such Affiliate issuing its own purchase order to 3Com. As used
herein, "Affiliate" shall mean any company more than fifty percent (50%) of
the voting stock of which is owned or controlled directly or indirectly by
Customer or Customers parent or subsidiary. The dollar value of purchases by
Affiliates shall be included in the aggregate volume of Product purchases.
The Affiliate will have primary responsibility for charges incurred in
connection with such purchase order. The list of participating Affiliates in
Exhibit F will be provided by Customer to 3Com upon the signing of this
Agreement, and will be updated whenever a change is made. Any Affiliate
included on the list shall be deemed to have agreed to be bound by all the
terms and conditions of this Agreement, and Customer shall guarantee such
Affiliate's fulfillment of its obligations under this Agreement. Customer
hereby agrees to pay to 3Com within ten (10) days of 3Com's first written
demand therefor any sum which any of Customer's Affiliates is delinquent in
paying to 3Com, subject only to such defenses as would be available to
Customer had Customer purchased the Products directly from 3Com. The
provisions of this paragraph shall survive the termination, cancellation or
expiration of this Agreement.

         22.2 ENTIRE AGREEMENT This Agreement is intended as the complete,
final and exclusive statement of the terms of the agreement between the
parties relating to the subject matter hereof and supersedes all prior
understandings, writings, proposals, representations or communications, oral
or written, relating to the subject matter hereof. This Agreement may not be
modified except in a writing executed by both parties.

         22.3 FORCE MAJEURE. Neither party shall be liable to the other party
for any alleged loss or damages resulting from delays in performance
(including for 3Com loss or damages resulting from delivery of the Products
being delayed) caused by acts of the other party, acts of civil or military
authority, governmental priorities, earthquake, fire, flood, epidemic,
quarantine, energy crisis, strike, labor trouble, war, riot, accident,
shortage, delay in transportation, or any other causes beyond the reasonable
control of the party whose performance is so delayed.

         22.4 NOTICES. Any notice regarding non-performance, breach,
termination, or renewal shall be given in writing and shall be hand delivered
or deposited, postage prepaid, registered or certified mail, return receipt
requested, in the United States or other country's mail, or sent by a
recognized overnight courier, addressed to Customer or 3Com, as the case may
be, at the address first stated in this Agreement or at such other address as
shall be given by either one to the other in writing. All other notices may
be sent by regular mail or by facsimile or e-mail confirmed by first class
mail. All notices shall be deemed to have been given and received on the
earlier of actual delivery or three (3) days from the date of postmark.

         22.5 WAIVER. A waiver of any default hereunder or of any of the
terms and conditions of this Agreement shall not be deemed to be a continuing
waiver or a waiver of any other default or of any other term or condition,
but shall apply solely to the instance to which such waiver is directed. The
exercise of any right or remedy provided in this Agreement shall be without
prejudice to the right to exercise any other right or remedy provided by law
or equity.

         22.6 SEVERABLLFTY. In the event any provision of this Agreement is
found to be invalid, illegal or unenforceable, a modified provision shall be
substituted which carries out as nearly as possible the original intent of
the parties and the validity, legality and enforceability of any of the
remaining provisions shall not in any way be affected or impaired thereby.

         22.7 ASSIGNMENT Assignment of this Agreement shall be prohibited
without the express written consent of the other y; except that 3Com shall be
entitled to assign its interest in this Agreement to any subsidiary or
affiliate or in connection with a merger or other business combination in
which 3Com is not the surviving entity. Any attempted assignment in violation
of this provision shall be null and void.

                                       11

<PAGE>

         22.8 PHOTOCOPY OF ORIGINAL. Both parties agree that an unaltered and
accurate photocopy of the executed original of this Agreement may be used for
the purpose of making any required or allowed public filings or other
purposes.

         22.9 DISPUTE RESOLUTION. The parties will attempt in good faith to
promptly resolve any dispute, controversy, or claim ("Dispute") arising out
of or relating to this Agreement through negotiations between the parties
before resorting to other remedies available to them. Any such Dispute shall
be referred to appropriate senior executives (e.g., director or V.P. level)
of each party who shall have the authority to resolve the matter. Discussion
and correspondence relating to trying to resolve such Dispute shall be
treated as confidential information developed for the purpose of settlement
and shall be exempt from discovery or production and shall not be admissible
in subsequent mediation, other alternate dispute resolution ("ADA") or
litigation. If the senior executives are unable to resolve the Dispute within
thirty (30) days from the date of the written communication requesting
referral to the executives and either party wishes to pursue its rights
relating to such Dispute, then the Dispute will be mediated by a mutually
acceptable mediator appointed pursuant to the mediation rules of
JAMS/Endispute within thirty (30) days after written notice by one party to
the other demanding non-binding mediation. Neither party may unreasonably
withhold consent to the selection of a mediator or the location of the
mediation. Both parties will share the costs of the mediation equally, except
that each party shall bear its own costs and expenses, including attorney's
fees, witness fees, travel expenses, and preparation costs. The parties may
also agree to replace mediation with some other form of non-binding or
binding ADR. If the parties agree upon binding arbitration, the power of the
arbitrator(s) shall be limited to that possessed by a Superior Court Judge in
California and the arbitrator(s) shall be prohibited from awarding damages or
remedies in excess of those allowed by the provisions of this Agreement.

         Any Dispute which the parties cannot resolve through mediation
within two (2) months of the date of the initial demand for it by one of the
parties may then be submitted to a court for resolution. The use of any ADR
procedures will not be construed under the doctrine of laches, waiver or
estoppel to adversely affect the rights of either party.

         Any Dispute regarding the following is not required to be negotiated
or mediated: non-payment or Fate payment: breach of any obligation of
confidentiality; infringement, misappropriation, or misuse of any
intellectual property right; any other claim where interim relief from the
court is sought to prevent serious and irreparable injury to one of the
parties or to others.

         22.10 GOVERNING LAW. This Agreement shall be construed in accordance
with and all disputes hereunder shall be governed by the laws of the State of
California, excluding its conflicts of law rules and excluding the United
Nations Convention on Contracts for the International Sale of Goods. With the
exception of the Dispute Resolution provision, above, the Superior Count of
Santa Clara County, California, and/or the United States District Count for
the Northern District of California shall have non-exclusive jurisdiction and
venue over all controversies in connection herewith.

         22.11 ATTORNEY'S FEES. In any legal action to enforce, or arising
out of a sale subject to, this Agreement, the prevailing party shall be
awarded all arbitration costs or court costs and reasonable attorney's fees
incurred.

         Additionally, attorney's fees incurred in enforcing any judgment are
recoverable as a separate item, and this paragraph regarding post~udgment
attorney's fees shall be severable from the other provisions of this
Agreement, shall survive any judgment, and shall not be deemed merged into
any judgment.

         22.12 CHOICE OF LANGUAGE. The original of this Agreement has been
written in English. In the event of any conflict or inconsistency between the
English language version and the local language version of this Agreement (if
a local language version is prepared), the English language version will be
the controlling document for all purposes.

         22.13 UNITED STATES GOVERNMENT END USERS. All technical data and
computer software is commercial in nature and developed solely at private
expense. Software is delivered as "Commercial Computer Software" as defined
in DEARS 252.227-7014 (June 1995) or as a "Commercial Item" as defined in FAR
2.101(a) and as such is provided with only such rights as

                                       12

<PAGE>

are provided in 3Com's standard commercial license for such software.
Technical data is provided with limited rights only as provided in DFARS
252.227-7015 (Nov 1995) or FAR 52.227-14 (June 1987), whichever is
applicable. Customer agrees not to remove, deface or modify any portion of
any legend provided on any licensed program or documentation delivered to it
under this Agreement.

23.      LEASING

         Subject to the provisions of this section, Customer may arrange to
have Products delivered to it under a leasing arrangement between Customer
and a third party lessor ("Lessor"). 3Com's obligations to accept any
purchase order from Lessor and to deliver Product pursuant to such purchase
order from Lessor are subject to the following conditions:

                  a. The purchase order indicates on its face that Lessor is
                  ordering the Product identified in the purchase order on
                  behalf of Customer;

                  b. The purchase order indicates on its face that it is in
                  accordance with, and subject to, the terms and conditions of
                  this Agreement; and

                  c. The Lessor has been approved by 3Com's credit department.

Subject to any specific provisions found in a bilaterally-executed agreement
between 3Com and Lessor, Lessor wilt be considered Customer's agent for the
purpose of ordering Product and making payment and the rights and obligations
of Customer and 3Com identified in this Agreement shall remain except for the
following:

         (1). Title to Product delivered pursuant to such order shall be
presumed vested in Lessor;

         (2). The license accompanying the Product shall apply to Lessor; and

         (3). Notwithstanding anything to the contrary in the license
accompanying the Product, Lessor may transfer such title and license rights
to Customer under a leasing arrangement.

Should a bilaterally-executed agreement between 3Com and Lessor indicate that
any or all rights and obligations under such leasing agreement are between
SCorn and Lessor, notwithstanding the provisions of this Agreement, 3Com
shall have no obligations to Customer pursuant to Lessor's purchase order
except for those identified in any end user license and 3Com limited warranty
accompanying the Product.

                                       13
<PAGE>

                                 EXHIBIT A-1
                   VOLUME DISCOUNT SCHEDULE FOR DESTINATIONS
                       IN THE UNITED STATES AND CANADA

[Redacted - Subject to a request for confidential treatment filed with the SEC
on June 27, 2000].

<PAGE>

                                 EXHIBIT A-2
                      VISITOR BASED NETWORKING PRICE LIST

[Redacted - Subject to a request for confidential treatment filed with the SEC
on June 27, 2000].

                                       2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]