Document:

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                                                                    Exhibit 10.8

                                   SCHEDULE

                                      TO

                        FORM OF STOCK WARRANT AGREEMENT

    The following information sets forth the material details of our stock
warrant agreements, a form of which immediately follows this schedule:

<TABLE>
<CAPTION>
                                                 Maximum Number of Shares
                Party                              Underlying Warrants *
                -----                              -------------------
<S>                                              <C>
Aetna Life Insurance Company                             31,912.16

Aetna Life Insurance Company                            108,463.95

AEW Partners III, L.P.                                  216,020.30

Alaska State Pension Investment Board                     3,121.94

Boston Properties Limited Partnership                 1,042,566.03

Brookfield Properties, Inc.                           1,044,946.80

Cornerstone Properties Limited Partnership            1,036,810.31

Cousins Properties Incorporated                         397,050.93

Lend Lease Real Estate Investments, Inc.              2,514,320.82

McCord Development, Inc.                                 54,598.14

Mezzanine Investors Partners                            370,382.00

The Milwaukee Employees' Retirement System                8,025.26

Principal Office Investors, LLC                          78,066.14

Shorenstein Company, L.P.                               815,108.90

SJ Plaza, LLC                                            18,768.78

Tower Realty Management Corporation                     764,490.69

Transwestern Investment Company LLC                     291,023.19

TrizecHahn Office Properties, Inc.                      363,690.00

Vornado Communications, L.L.C.                        1,560,255.44

Westbrook Fund III Acquisitions, L.L.C.                 435,675.74

101 Park, LLC                                             8,697.15
</TABLE>
*  Represents the number of shares of common stock underlying warrants after
   giving effect to a 4.5 for 1 common stock split which occurred on February 8,
   2000.

<PAGE>

No. W____                                                     _________, 1999

     The securities represented by this Warrant and issuable upon exercise
hereof have not been registered or qualified under the Securities Act of 1933,
as amended (the "1933 Act"), or under the provisions of any applicable state
securities laws, but have been acquired by the registered holder hereof for
purposes of investment and in reliance on statutory exemptions under the 1933
Act and under any applicable state securities laws.  These securities and the
securities issued upon exercise hereof may not be sold, pledged, transferred or
assigned, nor may this Warrant be exercised, except in a transaction which is
exempt under provisions of the 1933 Act and any applicable state securities laws
or pursuant to an effective registration statement; and in the case of an
exemption, only if the Company has received an opinion of counsel satisfactory
to the Company that such transaction does not require registration of any such
securities.

                                    FORM OF
                            STOCK WARRANT AGREEMENT

     1.   Grant of Warrant.
          ----------------

          (a)  Cypress Communications, Inc. (the "Company"), a Delaware
corporation, hereby agrees that ____________________ (the "Holder") is entitled,
subject to the provisions of this Warrant, to purchase from the Company, subject
to the conditions set forth below during the period commencing on the date
hereof and expiring at 5:00 P.M. Atlanta, Georgia, time, on the ______ (____)
anniversary of the date of this Warrant (the "Expiration Date"), up to that
number of fully paid and non-assessable shares of Common Stock as set forth in
Section 2(c) herein, at a price of $19.00 per share (the "Exercise Price").

          (b)  The term "Common Stock" means the voting Common Stock, $0.001 par
value per share, of the Company as constituted on the date hereof, together with
any other equity securities that may be issued by the Company in substitution
therefor. The number of shares of Common Stock to be received upon the exercise
of this Warrant and the Exercise Price may be adjusted from time to time as
hereinafter set forth. The shares of Common Stock deliverable upon such
exercise, and as adjusted from time to time, are hereinafter referred to as
"Warrant Stock." The term "Company" means and includes the Company as well as
(i) any successor corporation resulting from the merger or consolidation of such
corporation with another corporation, or (ii) any corporation to which such
corporation has transferred its property or assets as an entirety or
substantially as an entirety. All other capitalized terms not otherwise defined
herein shall have the meanings ascribed to them in that certain Master
Communications License Transaction Agreement between the Company and Holder
dated _________________, 1999, as the same may be amended from time to time (the
"Master Agreement").

     2.   Exercise of Warrant.
          -------------------

          (a)  Subject to the limitations set forth in Section 5, this Warrant
may be exercised in whole or in part commencing at any time and from time to
time after (i) the completion of the Warrant Calculation and (ii) the earlier of
(A) the date six months following the closing of the IPO (as defined below), or
(B) September 30, 2000, or (C) the occurrence of an event described in Section
2(a)(ii) or Section 2(a)(iii) below, and prior to and including the Expiration
Date (if such day is a day on which banking institutions in Georgia are
authorized by
<PAGE>

law to close, then on the next succeeding day that shall not be such a day), if
any of the following conditions have occurred (each an "Exercise Event"):

               (i)  the closing of the first sale to the public of the equity
securities of the Company pursuant to a registration statement filed with, and
declared effective by, the Securities and Exchange Commission under the 1933 Act
(the "IPO");

               (ii) the consummation of any merger, consolidation, business
combination, reorganization or recapitalization of the Company to which the
Company is a party, except for a merger, consolidation or other corporate
reorganization, in which after giving effect to such event, the holders of the
Company's outstanding capital stock (or their Permitted Transferees, as such
term is described in the Company's Certificate of Incorporation) immediately
prior to such event own directly or indirectly at least 50% of the Company's
voting power under ordinary circumstances;

               (iii)  a sale, lease or other disposition of all or substantially
all of the assets of the Company;

               (iv) the execution by the Company and Holder (or any Affiliate of
Owner) of License Agreements pertaining to 75% or more of the GLA as represented
by the final Buildings List in accordance with the Master Agreement; or

               (v)  the Company's execution and delivery of License Agreements
to Holder pertaining to Buildings with an aggregate of at least 5,000,000 square
feet of GLA.

          (b)  The Company shall give written notice to Holder at least 30 days
prior to the date of any Exercise Event described in Section 2(a)(i), (ii) or
(iii). The Company shall promptly notify the Holder in writing following the
occurrence of any other Exercise Event.

          (c)  Promptly after the end of the Diligence Period, the Company shall
provide Holder a calculation of that number of shares of Warrant Stock (rounded
to the nearest whole number) which the Holder shall be entitled to purchase upon
exercise of this Warrant (the "Calculation Notice"). The number of shares of
Warrant Stock issuable upon exercise of this Warrant shall be the sum of the
following (the "Warrant Calculation"):

               (i)   GLA of Buildings designated as Exclusive on the Buildings
List shall be divided by 1,000,000, and that result shall be multiplied by ____;
              ----------                                     -------------

               plus:
               ----

               (ii)  GLA of Buildings designated as Semi-Exclusive on the
Buildings List shall be divided by 1,000,000, and that result shall be
                        ----------
multiplied by ________;
-------------
               plus:
               ----

               (iii) GLA of Buildings designated as Non-Exclusive on the
Buildings List shall be divided by 1,000,000, and that result shall be
                        ----------
multiplied by ________;
-------------

                                       2
<PAGE>

               minus:
               -----

               (iv) The number of shares of Warrant Stock forfeited by Holder
pursuant to Section 9 prior to Holder's exercise of this Warrant.

Upon receipt of the Calculation Notice from the Company, the Holder shall have
twenty (20) days to provide to the Company written notice of any objection with
respect to such Warrant Calculation (the "Protest Notice").  If the Holder fails
to provide Company with such Protest Notice within such twenty-day period, the
Holder shall be deemed to have accepted such calculation, and thereafter shall
be entitled to exercise this Warrant only for the number of shares of Warrant
Stock so calculated (but subject to adjustment as provided in Section 4 below
and forfeiture as provided in Section 9 below).  If the Holder provides the
Company with such Protest Notice, such Warrant Calculation shall be submitted to
a nationally recognized accounting firm not affiliated with either the Company
or the Holder, and the Warrant Calculation as determined by such accounting firm
shall be binding upon the parties.  The accounting firm shall review the Warrant
Calculation and make any appropriate adjustment thereto within thirty (30) days
after submission to it.  The expenses of such accounting firm shall be split
evenly by the parties.

          (d)  The calculations described in Section 2(c) herein shall be made
irrespective of, and the number of shares of Warrant Stock issuable upon
exercise hereof shall not be affected by, (i) the Company's failure to submit a
Communications License Agreement for a Building prior to the expiration of the
Rollout Period, or (ii) the Company's loss of Exclusive or Semi-Exclusive Rights
as the result of the failure of the Company to complete installation within a
Building or Buildings prior to the expiration of the Rollout Period.

          (e)  The Holder may exercise this Warrant by presentation and
surrender of this Warrant to the Company at its principal office, or to its
stock transfer agent, if any, with the Warrant Exercise Form attached hereto
duly executed and accompanied by payment (either in cash or by certified or
official bank check, payable to the order of the Company, or by wire transfer of
immediately available funds to an account designated by the Company) of the
Exercise Price for the number of shares of Warrant Stock specified in such form.

          (f)  Following the IPO, in connection with any requested conversion of
this Warrant, and in lieu of the payment of the Exercise Price in cash, the
Company shall convert this Warrant, in whole or in part and at any time or
times, into Warrant Stock (the "Conversion Right"), as follows: Upon exercise of
the Conversion Right, the Company shall deliver to the Holder (without payment
by the Holder of any Exercise Price) that number of shares of Common Stock equal
to the quotient obtained by dividing (x) the difference of (A) the aggregate
Fair Market Value (as defined in Section 4(b)(viii) below) for all Warrant Stock
issuable upon exercise of the Warrants being converted, less (B) the aggregate
Exercise Price for all such Warrant Stock, by (y) the Fair Market Value of one
share of Warrant Stock.

          (g)  Upon receipt by the Company of this Warrant, together with the
Warrant Exercise Form and, in connection with any conversion other than under
Section 2(f), the Exercise Price (the "Exercise Time"), at its office, or by the
stock transfer agent of the Company at its office, the Holder shall be deemed to
be the holder of record of the shares of Common

                                       3
<PAGE>

Stock issuable upon such exercise, notwithstanding that the stock transfer books
of the Company shall then be closed or that certificates representing such
shares of Common Stock shall not then be actually delivered to the Holder.

          (h)  The Company will deliver to Holder certificates for Warrant Stock
purchased upon exercise of this Warrant within five (5) business days after the
Exercise Time. Unless all of the purchase rights represented by this Warrant
have been exercised, the Company will prepare a new Warrant, substantially
identical hereto, representing the rights formerly represented by this Warrant
which have not expired or been exercised and will within such five-day period,
deliver such new Warrant to the Holder.

          (i)  The issuance of certificates for Warrant Stock upon exercise of
this Warrant will be made without charge to the Holder for any issuance tax in
respect thereof or other cost incurred by the Company in connection with such
exercise and the related issuance of Warrant Stock. The Holder or its transferee
shall pay any transfer tax payable in respect of a transfer of the Warrant or
the Warrant Stock to a third party.

          (j)  Notwithstanding any other provisions hereof, if an exercise of
any portion of this Warrant is to be made in connection with a public offering
of Common Stock or a merger or other sale of all or substantially all of the
stock or assets of the Company, the exercise of any portion of this Warrant may,
at the election of the Holder, be conditioned upon the consummation of the
public offering or the sale of the Company in which case such exercise shall not
be deemed to be effective until the consummation of such transaction.

     3.  Reservation of Shares. The Company shall at all times authorize and
         ---------------------
reserve for issuance and delivery all shares of Common Stock issuable upon
exercise of this Warrant. All such shares shall be duly authorized and, when
issued upon exercise in compliance with the terms of this Agreement, shall be
validly issued, fully paid and non-assessable. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant, but the Company shall pay the Holder an amount equal to the applicable
Exercise Price multiplied by such fraction in lieu of each fraction of a share
otherwise called for upon any exercise of this Warrant. If at any time the
number of authorized but unissued shares of Common Stock shall not be sufficient
to effect the conversion of this Warrant, the Company will take such corporate
action as may, in the opinion of its counsel, be necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as shall
be sufficient for such purpose. The Company shall take all such actions as may
be necessary to assure that all such shares of Common Stock may be so issued
without violation of any applicable law or governmental regulation or any
requirements of any securities exchange or inter-dealer quotation system upon
which shares of Common Stock may be listed or traded (except for official notice
of issuance which shall be immediately transmitted by Company upon issuance).

     4.   Adjustments.
          -----------

          (a)  Capital Adjustments. If the Company at any time or from time to
               -------------------
time after the date hereof effects a subdivision of the outstanding Common Stock
(by stock split, stock dividend, recapitalization or otherwise) or a combination
the outstanding shares of Common Stock into a smaller number of shares (by
reverse stock split, recapitalization or otherwise), (i)

                                       4
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the Exercise Price in effect immediately before the subdivision or combination
shall be automatically adjusted by multiplying the Exercise Price by a fraction
(the "Capital Adjustment Factor"), (A) the numerator of which is the total
number of shares of Common Stock issued and outstanding immediately prior to the
time of such subdivision or combination, and (B) the denominator of which is the
total number of shares of Common Stock issued and outstanding immediately after
such subdivision or combination, and (ii) the number of shares of Warrant Stock
issuable upon exercise of this Warrant shall be automatically adjusted by
dividing such number of shares by the Capital Adjustment Factor.

          (b)  Below Market Issuances.
               ----------------------

               (i)  In the event that the Company issues or sells shares of
     Common Stock (other than Permitted Issuances, as described below) at a
     price per share below the "Fair Market Value" (as defined herein) of such
     shares (a "Below Market Transaction"), (A) the number of shares of Warrant
     Stock issuable upon exercise of this Warrant shall be adjusted so as to be
     equal to the product obtained by multiplying the number of shares of
     Warrant Stock issuable pursuant to this Warrant prior to the Below Market
     Transaction by a fraction (the "Market Adjustment Factor"), the numerator
     of which shall be (i) the number of shares of Common Stock outstanding
     immediately prior to consummation of the Below Market Transaction plus (ii)
                                                                       ----
     the number of shares of Common Stock issued or sold in the Below Market
     Transaction, and the denominator of which shall be (x) the number of shares
     of Common Stock outstanding immediately prior to the Below Market
     Transaction plus (y) th number of shares of Common Stock that the aggregate
                 ----
     consideration received by the Company in the Below Market Transaction would
     purchase at Fair Market Value, and (B) the Exercise Price shall be adjusted
     so as to be equal to the quotient obtained by dividing the Exercise Price
     in effect prior to the Below Market Transaction by the Market Adjustment
     Factor. For purposes of this subsection, Common Stock shall be deemed to
     include that number of shares of Common Stock that would be obtained
     assuming (A) the conversion of any securities of the Company which, by
     their terms, are convertible into or exchangeable for Common Stock, and (B)
     the exercise of all options to purchase or rights to subscribe for Common
     Stock or securities which, by their terms, are convertible into or
     exchangeable for Common Stock.

               (ii) If the Company in any manner issues or sells any stock or
     securities directly or indirectly convertible into or exchangeable for
     Common ("Convertible Securities"), other than Convertible Securities that
     are Issuances, and the price per share for which Common Stock is issuable
     upon conversion or exchange thereof is less than the Fair Market Value of
     the Common Stock immediately prior to the time of such issue or sale, then,
     for purposes of Section 4(b)(i), the total maximum number of shares of
     Common Stock issuable upon conversion or exchange of such Convertible
     Securities shall be deemed to have been issued and sold by the Company at
     the time of the issuance or sale of such Convertible Securities for such
     price per share. For the purposes of this paragraph, the "price per share
     for which Common Stock is issuable" shall be determined by dividing (A) the
     total amount received or receivable by the Company as consideration for the
     issue or sale of such Convertible Securities, plus the minimum aggregate
     amount of additional consideration, if any, payable to the Company upon the
     conversion or exchange thereof, by (B) the total

                                       5
<PAGE>

     maximum number of shares of Common Stock issuable upon the conversion or
     exchange of all such Convertible Securities. No further adjustment of the
     number of shares of Warrant Stock issuable upon exercise of this Warrant or
     the Exercise Price shall be made when Common Stock is actually issued upon
     the conversion, exercise or exchange of such Convertible Securities.

               (iii) If the Company in any manner grants or sells any rights,
     warrants or options to subscribe for or purchase Common Stock or
     Convertible Securities ("Options"), other than options that are Permitted
     Issuances, and the price per share for which Common Stock is issuable upon
     the exercise of such Options, or upon conversion or exchange of any
     Convertible Securities issuable upon exercise of such Options, is less than
     the Fair Market Value of the Common Stock immediately prior to the time of
     the granting or sale of such Options, then, for purposes of Section
     4(b)(i), the total maximum number of shares of Common Stock issuable upon
     the exercise of such Options or upon conversion or exchange of the total
     maximum amount of such Convertible Securities issuable upon the exercise of
     such Options shall be deemed to have been issued and sold by the Company at
     the time of the granting or sale of such Options for such price per share.
     For purposes of this paragraph, the "price per share for which Common Stock
     is issuable" shall be determined by dividing (A) the total amount, if any,
     received or receivable by the Company as consideration for the granting or
     sale of such Options, plus the minimum aggregate amount of additional
     consideration payable to the Company upon exercise of all such Options,
     plus in the case of such Options which relate to Convertible Securities,
     the minimum aggregate amount of additional consideration, if any, payable
     to the Company upon the issuance or sale of such Convertible Securities and
     the conversion or exchange thereof, by (B) the total maximum number of
     shares of Common Stock issuable upon the exercise of such Options or upon
     the conversion or exchange of all such Convertible Securities issuable upon
     the exercise of such Options. No further adjustment of the number of shares
     of Warrant Stock issuable upon exercise of this Warrant or the Exercise
     Price shall be made when Convertible Securities are actually issued upon
     the exercise of such Options or when Common Stock is actually issued upon
     the exercise of such Options or the conversion or exchange of such
     Convertible Securities.

               (iv) If the purchase price provided for in any Options, the
     additional consideration, if any, payable upon the conversion or exchange
     of any Convertible Securities or the rate at which any Convertible
     Securities are convertible into or exchangeable for Common Stock changes at
     any time, the number of shares of Warrant Stock issuable upon exercise of
     this Warrant and the Exercise Price in effect at the time of such change
     shall be immediately adjusted to the applicable number of shares of Warrant
     Stock issuable upon exercise of this Warrant and the Exercise Price which
     would have been in effect at such time had such Options or Convertible
     Securities still outstanding provided for such changed purchase price,
     additional consideration or conversion rate, as the case may be, at the
     time initially granted, issued or sold.

               (v) Upon the expiration of any Option or the termination of any
     right to convert or exchange any Convertible Security without the exercise
     of any such Option or right, the Exercise Price then in effect hereunder
     shall be adjusted immediately to the

                                       6
<PAGE>

     applicable number of shares of Warrant Stock issuable upon exercise of this
     Warrant and the Exercise Price which would have been in effect at the time
     of such expiration or termination had such Option or Convertible Security,
     to the extent outstanding immediately prior to such expiration or
     termination, never been issued.

               (vi) If any Common Stock or Convertible Security is issued or
     sold or deemed to have been issued or sold for cash, the consideration
     received therefor shall be deemed to be the amount received by the Company
     therefor (net of discounts, commissions and related expenses). If any
     Common Stock or Convertible Security is issued or sold for a consideration
     other than cash, the amount of the consideration other than cash received
     by the Company shall be the fair value of such consideration. If any Common
     Stock or Convertible Security is issued to the owners of the non-surviving
     entity in connection with any merger in which the Company is the surviving
     corporation, the amount of consideration therefor shall be deemed to be the
     fair value of such portion of the net assets and business of the non-
     surviving entity as is attributable to such Common Stock or Convertible
     Security, as the case may be. The fair value of any consideration other
     than cash and securities shall be determined jointly by the Company and the
     Holder. If such parties are unable to reach agreement within a reasonable
     period of time, the fair value of such consideration shall be determined by
     an independent appraiser experienced in valuing such type of consideration
     jointly selected by the Company and the Holder. The determination of such
     appraiser shall be final and binding upon the parties, and the reasonable
     fees and expenses of such appraiser shall be borne by the Company. In case
     any Convertible Security is issued in connection with the issue or sale of
     other securities of the Company, together comprising one integrated
     transaction, the board of directors of the Company shall make a good faith
     determination of the portion of the consideration received therefor
     allocable as consideration for which the Company issued the Convertible
     Security.

               (vii) The number of shares of Common Stock outstanding at any
     given time shall not include shares owned or held by or for the account of
     the Company or any subsidiary, and the disposition of any shares so owned
     or held shall be considered an issue or sale of Common Stock.

               (viii) The term "Permitted Issuances," as used herein, means
     issuances to employees pursuant to the Company's management equity plans,
     as approved from time to time by the Company's Board of Directors. For
     purposes of this Section 4(b) and Section 2(f), if the Common Stock is
     traded on the Nasdaq Stock Market or other inter-dealer quotation system or
     is listed on any national securities exchange, the "Fair Market Value" of
     the Common Stock shall be average of the last reported sales prices of the
     Common Stock as reported by Nasdaq or, if the Common Stock is listed on a
     national securities exchange, the last reported sales prices of the Common
     Stock on such exchange, for the twenty (20) trading days immediately
     preceding the date of such sale or issuance of Common Stock. If the Common
     Stock is not so listed or traded, the Fair Market Value of the Common Stock
     shall be determined jointly by the Company and the Holder. If such parties
     are unable to reach agreement within 30 days of the date of such sale or
     issuance, the Fair Market Value of the Common Stock shall be determined by
     an independent appraiser jointly selected by the Company and the Holder.
     The

                                       7
<PAGE>

     determination of such appraiser shall be final and binding upon the
     parties, and the reasonable fees and expenses of such appraiser shall be
     borne by the Company.

          (c)  Reorganizations, Mergers, Consolidations or Sales of Assets.
               -----------------------------------------------------------
If at any time or from time to time after the date hereof, there is a capital
reorganization of the Common Stock (other than a recapitalization, subdivision,
combination, reclassification, exchange or substitution of shares provided for
elsewhere in this Section 4), as a part of such capital reorganization,
provision shall be made so that the Holder shall thereafter be entitled to
receive upon exercise of this Warrant the number of shares of stock or other
securities or property of the Company to which a holder of the number of shares
of Common Stock deliverable upon exercise of this Warrant would have been
entitled in connection with such capital reorganization, subject to adjustment
in respect of such stock or securities by the terms thereof. In any such case,
appropriate adjustment shall be made in the application of the provisions of
this Section 4 with respect to the rights of the Holder after the capital
reorganization to the end that the provisions of this Section 4 (including
adjustment of the Exercise Price and the number of shares of Warrant Stock
issuable upon exercise of this Warrant then in effect) shall be applicable after
that event and be as nearly equivalent as practicable.

          (d)  Notice to Warrant Holder of Adjustment. At any time following the
               --------------------------------------
delivery to Holder of a Calculation Notice, whenever the number of shares of
Warrant Stock issuable upon exercise of this Warrant or the Exercise Price is
adjusted as herein provided, the Company shall cause to be mailed to the Holder
in accordance with the provisions of this Section 4 a notice (i) stating that an
event giving rise to an adjustment hereunder has occurred, (ii) setting forth
the adjusted number of shares of Warrant Stock and the adjusted Exercise Price
and (iii) showing in reasonable detail the computations and the facts upon which
such adjustments are based. The Holder shall be entitled to review such
calculation (as well as any "Fair Market Value" calculation made by the board of
directors pursuant to Section 4(b)) and render any objections in the manner
provided in Section 4(b)(viii).

     5.   Restrictions on Transfer.
          ------------------------

          (a)  The Holder hereby acknowledges that neither this Warrant nor any
of the securities that may be acquired upon exercise of this Warrant have been
registered or qualified under the 1933 Act or under the securities laws of any
state. The Holder acknowledges that upon exercise of this Warrant the securities
to be issued upon such exercise may be subject to applicable federal and state
securities (or other) laws requiring registration, qualification or approval of
governmental authorities before such securities may be validly issued or
delivered upon notice of such exercise. The Holder agrees that the issuance of
such securities may be deferred until the issuance or sale of such securities
shall be lawful in all respects. The restrictions imposed by this Section 5 upon
the exercise of this Warrant shall cease and terminate as to any particular
shares of Warrant Stock (i) when such securities shall have been effectively
registered and qualified under the 1933 Act and all applicable state securities
laws and disposed of in accordance with the registration statement covering such
securities, or (ii) when, in the opinion of counsel for the Company, such
restrictions are no longer required in order to ensure compliance with the 1933
Act and all applicable state securities laws.

                                       8
<PAGE>

          (b)  Notwithstanding the provisions of Section 5(a), the Holder may
not offer, sell, contract to sell or otherwise dispose of any Warrant Stock
within one hundred eighty (180) days after the date of any final prospectus
related to the IPO except with the written consent of the Company and managing
underwriter or underwriters for such offering.

          (c)  Prior to the IPO, and except for the Permitted Transfers
described in Section 15(a), at least 30 days prior to making any sale or
transfer of any of Warrant Stock, the Holder shall deliver a written notice (the
"Offer Notice") to the Company. The Offer Notice shall disclose in reasonable
detail the proposed number of shares of Warrant Stock to be transferred and the
proposed terms and conditions of the transfer. The Company may elect to purchase
all, but not less than all, of the shares of Warrant Stock specified in the
Offer Notice at the price and on the terms specified therein by delivering
written notice of such election to the Holder as soon as practical but in any
event within 30 days after the delivery of the Offer Notice. To the extent that
the Company does not elect to purchase all of the shares of Warrant Stock being
offered, the Holder may, within 90 days after the expiration of the Company's
election period, transfer such shares of Warrant Stock to one or more third
parties at a price no less than the price per share specified in the Offer
Notice and on terms no more favorable to the transferees than offered to the
Company in the Offer Notice. The purchase price specified in the Offer Notice
shall be payable solely in cash at the closing of the transaction.

     6.   Piggy-Back Registration Rights.
          ------------------------------

          (a)  If the Company has registered or has determined to register any
of its securities for its own account or for the account of other security
holders of the Company on any registration form (other than Form S-4 or S-8)
which permits the inclusion of the Warrant Stock (a "Piggyback Registration"),
the Company will give the Holder written notice thereof promptly and, subject to
Section 6(c), shall include in such registration all the Warrant Stock requested
to be included therein pursuant to the written request of the Holder received
within twenty (20) days after delivery of the Company's notice.

          (b)  If the Piggyback Registration relates to an underwritten public
offering, the Company shall so advise the Holder as a part of the written notice
given pursuant to Section 6(a). In such event, the right of the Holder to
participate in such registration shall be conditioned upon Holder's
participation in such underwriting in accordance with the terms and conditions
thereof. Should the Holder propose to distribute its Warrant Stock through such
underwriting, it shall (together with the Company) enter into an underwriting
agreement in customary form with the representative of the underwriter or
underwriters selected by the Company.

          (c)  If such proposed Piggyback Registration is an underwritten
offering and the managing underwriter for such offering advises the Company that
the securities requested to be included therein exceeds the amount of securities
that can be sold in such offering, any (i) securities to be sold by the Company
in such offering and (ii) Registrable Securities (as such term is defined in the
Company's Third Amended and Restated Stockholders Agreement dated October 8,
1999) shall have priority over the Holder's Warrant Stock, and the number of
shares to be included by the Holder in such registration shall be reduced pro
rata on the basis of the percentage of the outstanding Warrant Stock held by the
Holder (assuming the exercise of all warrants held by the Holder) and all other
holders exercising equivalent registration rights.

                                       9
<PAGE>

          (d)  If the Holder requests but is unable to register all shares of
Warrant Stock in a Piggyback Registration within eighteen (18) months following
the IPO, the Holder shall have the option to include such Warrant Stock in a
Demand Registration pursuant to Section 7.

     7.   Demand Registration Rights.
          --------------------------

          (a)  Should the Holder request but be unable to include in a Piggyback
Registration all shares of Warrant Stock within eighteen (18) months following
the IPO as contemplated in Section 6 herein, the holders of Warrants or Warrant
Stock representing at least 50% of the aggregate shares of Warrant Stock
issuable upon exercise of this Warrant (including any Holders of Warrants or
Warrant Stock issuable as a result of an assignment of all or a portion hereof,
in the aggregate, as adjusted pursuant to Section 4) (the "Initiating Holders")
may, if available to the Company, require that the Company effect as many
registrations as the Initiating Holders may request under the Securities Act
utilizing a Form S-3 or any similar form (a "Demand Registration").

          (b)  The Company shall file a registration statement with respect to
such Demand Registration requested pursuant to Section 7(a) as soon as
practicable after receipt of the demand of the Initiating Holders; provided,
however, that if in the good faith judgment of the Board of Directors of the
Company, such registration would be seriously detrimental to the Company in that
such registration would interfere with a material corporate transaction and the
Board of Directors concludes, as a result, that it is advisable to defer the
filing of such registration statement at such time (as evidenced by an
appropriate resolution of the Board), then the Company shall have the right to
defer such filing for the period during which such registration would be
seriously detrimental; provided, however, that (i) the Company may not defer the
filing for a period of more than one hundred eighty (180) days after receipt of
any demand of the Initiating Holders and (ii) the Company shall not exercise its
right to defer a Demand Registration more than once.

          (c)  Notwithstanding any provision to the contrary contained in this
Warrant, a Holder's registration rights under Sections 6 and 7 shall
automatically terminate when all of the Warrant Stock owned by such Holder may
immediately be sold under Rule 144 under the 1933 Act.

     8.   Registration Procedures.
          -----------------------

     8.1  In the case of each registration effected by the Company pursuant to
Sections 6 or 7 of this Warrant, the Company will keep the Holder advised in
writing as to the initiation of such registration and as to the completion
thereof.  At its expense, the Company will use its best efforts to:

          (a) cause such registration to be declared effective by the Securities
and Exchange Commission (the "Commission") and, in the case of a Demand
Registration, keep such registration effective for a period of one hundred
eighty (180) days or until the Holder has completed the distribution described
in the registration statement relating thereto, whichever first occurs;

                                       10
<PAGE>

          (b)  prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement (including post-effective amendments) as may be
necessary to comply with the provisions of the 1933 Act with respect to the
disposition of all securities covered by such registration statement;

          (c)  obtain appropriate qualifications of the securities covered by
such registration under state securities or "blue sky" laws in such
jurisdictions as may be requested by the Holder; provided, however, that the
Company shall not be required to file a general consent to service of process in
any jurisdiction in which it is not otherwise subject to service in order to
obtain any such qualification;

          (d)  furnish such number of prospectuses and other documents incident
thereto, including any amendment of or supplement to the prospectus, as the
Holder from time to time may reasonably request;

          (e)  notify the Holder, at any time when a prospectus relating thereto
is required to be delivered under the 1933 Act, of the happening of any event as
a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading or incomplete in the light of the
circumstances then existing, and at the request of any such holder, prepare and
furnish to such holder a reasonable number of copies of a supplement to or an
amendment of such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such shares, such prospectus shall not 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 not misleading or
incomplete in the light of the circumstances then existing;

          (f)  cause all Warrant Stock covered by such registration to be listed
on each securities exchange or inter-dealer quotation system on which similar
securities issued by the Company are then listed;

          (g)  provide a transfer agent and registrar for all Warrant Stock
covered by such registration and a CUSIP number for all such securities, in each
case not later than the effective date of such registration;

          (h)  otherwise comply with all applicable rules and regulations of the
Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering a period of at least twelve months,
but not more than eighteen months, beginning with the first month after the
effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the 1933 Act; and

          (i)  in connection with any underwritten Demand Registration, the
Company will (A) enter into an underwriting agreement reasonably satisfactory to
the Company and the Holder containing customary underwriting provisions,
including indemnification and contribution provisions, and (B) cooperate with
such underwriters and use its reasonable

                                       11
<PAGE>

commercial efforts to assist such underwriters in connection with the offering
and sale of Warrant Stock.

     8.2  Other Obligations. With a view to making available the benefits
          -----------------
of certain rules and regulations of the Securities and Exchange Commission which
may facilitate the registration of Warrant Stock or permit the sale of Warrant
Stock to the public without registration, the Company agrees to:

          (a)  after its initial registration under the 1933 Act, exercise
reasonable commercial efforts to cause the Company to be eligible to utilize
Form S-3 (or any similar form) for the registration of Warrant Stock;

          (b)  at such time as any Warrant Stock is eligible for transfer under
Rule 144(k), upon the request of the holder of such Warrant Stock, remove any
restrictive legend from the certificates evidencing such securities at no cost
to such holder;

          (c)  make and keep available public information as defined in Rule 144
under the 1933 Act at all times from and after ninety (90) days following its
initial registration under the 1933 Act;

          (d)  file with the Commission in a timely manner all reports and other
documents required of the Company under the 1933 Act and the Securities Exchange
Act of 1934 (the "1934 Act") at any time after it has become subject to such
reporting requirements; and

          (e)  furnish any holder of Warrant Stock upon request a written
statement by the Company as to its compliance with the reporting requirements of
Rule 144 (at any time from and after ninety (90) days following the IPO), and of
the 1933 Act and the 1934 Act (at any time after it has become subject to such
reporting requirements), a copy of the most recent annual or quarterly report of
the Company, and such other reports and documents as a holder of Warrant Stock
may reasonably request in availing itself of any rule or regulation of the
Securities and Exchange Commission (including Rule 144A) allowing a holder of
Warrant Stock to sell any such securities without registration.

     9.  Forfeiture of Warrants and Return of Proceeds.
         ---------------------------------------------

          (a)  If a Building covered by a License Agreement is sold and the
     purchaser of the Building fails to assume the License associated with such
     Building at the closing of such sale (a "Sale"), at the Company's written
     request, the Holder shall forfeit or return to the Company, as applicable,
     the right to acquire the Warrant Stock issuable upon exercise of this
     Warrant or, if this Warrant has been exercised, the Warrant Stock issued,
     which is attributable to the GLA from such Building, together with any
     dividends paid on such Warrant Stock, or if Holder has transferred such
     Warrant Stock, any proceeds resulting from the transfer of the Warrant
     Stock (collectively, the "Warrant Amount"), as set forth below:

               (i)  If a Sale occurs during the period commencing on the date of
          the Master Agreement and ending on the third (3rd) anniversary
          thereof, at the Company's written request, the Holder shall forfeit or
          return 100% of the Warrant Amount;

                                       12
<PAGE>

                    (ii) If a Sale occurs during the period following the third
          (3/rd/) anniversary of the date of the Master Agreement, at the
          Company's written request, the Holder shall forfeit or return to the
          Company the Warrant Amount as set forth below:

-------------------------------------------------------------------------------
After the 3/rd/ anniversary but prior to the 4/th/       80% of Warrant Amount
anniversary of the date of the Master Agreement
-------------------------------------------------------------------------------
On or after the 4/th/anniversary but prior to            60% of Warrant Amount
the 5/th/ anniversary of the date of the Master
Agreement
-------------------------------------------------------------------------------
On or after the 5/th/ anniversary but prior to the       40% of Warrant Amount
6/th/ anniversary of the date of the Master
Agreement
--------------------------------------------------------------------------------
On or after the 6/th/ anniversary but prior to the       20% of Warrant Amount
7/th/ anniversary of the date of the Master
Agreement
--------------------------------------------------------------------------------
On or after the 7/th/ anniversary of the date of          0% of Warrant Amount
the Master Agreement
--------------------------------------------------------------------------------

If Warrant Stock has not yet been issued at the time of a Sale, the Warrant
Amount applied to such Building shall be excluded from any calculation of
Warrant Stock to be issued upon any Exercise Event.  Upon surrender by Holder of
any Warrant Amount in the form of shares of Warrant Stock, the Company shall
refund to the Holder the Exercise Price paid to the Company attributable to such
surrendered Warrant Amount.  Any Warrant Amount payable by Holder hereunder in
the form of proceeds from the sale of Warrant Stock shall be net of the Exercise
Price paid to the Company for such shares of Warrant Stock.

          (b)  Notwithstanding the provisions of Section 9(a), no portion of the
Warrant Amount with respect to the GLA of a Building shall be returned or
forfeited if and to the extent that, within six (6) months after the Sale of the
Building, Holder enters or has previously entered into a License Agreement with
the Company, upon the terms set forth in the Master Agreement or upon other
terms reasonably satisfactory to the Company, for one or more other buildings
reasonably satisfactory to the Company not covered by the Master Agreement to
the extent of the GLA of such building or buildings.

          (c)  The provisions of Section 9(a) shall terminate and be of no
further effect upon (i) the expiration or non-renewal of the Master Agreement in
accordance with its terms or (ii) the termination of the Master Agreement as a
result of a breach of the Master Agreement by the Company. The provisions of
Section 9(a) shall apply only with respect to the initial sale of a Building by
Holder; any sale of such Building by a subsequent owner thereof shall have no
effect on the rights of the Holder hereunder.

          (d)  If Warrant Stock has been issued, and upon a Sale the Holder
fails to deliver to the Company the forfeited Warrant Amount (whether in the
form of a stock certificate or cash proceeds), the Company shall be entitled to
(i) cancel any such certificates registered in the Holder's name representing
the Warrant Stock on the books and records of the Company (at which time such
Warrant Stock shall be deemed canceled without any additional required action

                                       13
<PAGE>

on behalf of the Company or the Holder), and (but only to the extent necessary
after taking the action provided in clause (i) above) (ii) set off against any
amounts which the Company may owe Holder pursuant to the terms of the Master
Agreement the amount of such cash proceeds.

          (e)  In the event of the transfer or assignment of a portion of this
Warrant in accordance with Section 15 hereof, the Holder will provide written
notice to the Company specifying the particular Building or Buildings (and the
GLA thereof) to which the transferred Warrants relate. Thereafter, if any sale
of such Building or Buildings occurs such that any Warrant Amount becomes
payable to the Company pursuant to the provisions of this Section 9, the entire
amount of such Warrant Amount payable shall be forfeited by the holder (or
holders, pro rata) of the transferred Warrants in accordance with the forfeiture
provisions thereof, and any rights under this Warrant or shares of Warrant Stock
held by the transferor with respect to any other Building or Buildings shall not
be subject to forfeiture upon such sale; provided, however, that in the event
that such transferee has exercised its rights under the transferred Warrant and
sold the shares of Warrant Stock acquired thereupon (and such Warrant Amount is
payable to the Company by such transferee in cash), the transferor of the
Warrant shall remain liable for, and shall pay to the Company, such Warrant
Amount to the extent the Company is unable within 20 days after written demand
to the transferee, with a copy to the transferor, to collect such Warrant Amount
from the transferee.

     10.  Additional Offers of Warrant Rights.  Subject to the provisions of
          -----------------------------------
Section 4 of this Warrant, the Company is authorized to offer to other qualified
property owners similar warrant rights as provided in this Warrant prior to the
filing of its initial registration statement in connection with the IPO or
following the closing of the IPO.

     11.  Holder Representations and Warranties.
          -------------------------------------

          (a)  The Holder has all necessary power and authority under all
applicable provisions of law to execute and deliver this Warrant and to carry
out its provisions. All actions on Holder's part required for the lawful
execution and delivery of this Warrant have been taken.

          (b)  The Holder understands that neither the Warrant nor the Warrant
Stock has been registered under any state securities act or the 1933 Act. The
Holder also understands that the Warrants and the Warrant Stock are being
offered and sold pursuant to an exemption from registration contained in
applicable state securities acts and the 1933 Act based in part upon the
Holder's representations contained in this Warrant.

          (c)  The Holder has substantial experience in evaluating and investing
in private placement transactions of securities in companies similar to the
Company so that Holder is capable of evaluating the merits and risks of its
investment in the Company and has the capacity to protect its own interests. The
Holder must bear the economic risk of this investment indefinitely unless the
Warrants (or the Warrant Stock) are registered pursuant to the 1933 Act, or an
exemption from registration is available. The Holder understands that the
Company has no present intention of registering the Warrants, the Warrant Stock
or any shares of its Common Stock. The Holder also understands that there is no
assurance that any exemption from registration under the 1933 Act will be
available and that, even if available, such exemption may not allow the Holder
to transfer all or any portion of the Warrants or the Warrant Stock under the

                                       14
<PAGE>

circumstances, in the amounts or at the times the Holder might propose. The
Holder can bear the economic risk of losing its entire investment in the
Company.

          (d)  The Holder is acquiring the Warrants and the Warrant Stock for
Holder's own account or for the account of an Affiliate or Owner for investment
only, and not with a view towards their resale or distribution in violation of
applicable securities laws.

          (e)  The Holder represents that, by reason of Holder's or of its
management's business or financial experience, the Holder has the capacity to
protect its own interests in connection with the transactions contemplated in
this Warrant. Further, the Holder is aware of no publication of any
advertisement in connection with the transactions contemplated by the Warrant.

          (f)  The Holder represents that Holder is an accredited investor
within the meaning of Regulation D under the 1933 Act.

          (g)  The Holder has had an opportunity to discuss the Company's
business, management and financial affairs with directors, officers and
management of the Company. The Holder has also had the opportunity to ask
questions of, and receive answers from, the Company and its management regarding
the terms and conditions of this investment. The Holder has had an adequate
opportunity to inspect and copy all material documents relating to the Company
which it has requested.

     12.  Company Representations and Warranties.
          --------------------------------------

     The Company hereby represents and warrants to, and agrees with, each
Purchaser as follows:

          (a)  Organization.  The Company is a corporation duly organized,
               ------------
validly existing and in good standing under the laws of the State of Delaware.
The Company has all requisite corporate power and authority to own and operate
its properties and assets, to execute and deliver this Warrant to issue the
shares of Warrant Stock upon exercise of the Warrant, to carry out the other
provisions of this Warrant and the transactions contemplated hereby, and to
carry on its business as presently conducted and as presently proposed to be
conducted.

          (b)  Capitalization.
               --------------

               (i)  The authorized capital stock of the Company as of November
     16, 1999, consists of (i) Ten Million Eight Hundred Ninety-Four Thousand
     Seventy-One and 62/100 (10,894,071.62) shares of Common Stock, Five Hundred
     Eighty Five Thousand Nine Hundred Eighty and 46/100 (585,980.46) shares of
     which are issued and outstanding, and (ii) Seven Million Six Hundred
     Eighty-Seven Thousand Seven Hundred Four and 16/100 (7,687,704.16) shares
     of Preferred Stock, of which One Million Two Hundred Eleven Thousand One
     Hundred Forty (1,211,140) are designated as Series A Preferred Stock (the
     "Series A Preferred"), all of which are issued and outstanding, One Million
     Nine Hundred Nineteen Thousand One Hundred Eighty Eight (1,919,188) are
     designated as Series B Preferred Stock (the "Series B Preferred"), One
     Million Three Hundred Thirty Nine Thousand Five Hundred Seventy Five
     (1,339,575) of which are

                                       15
<PAGE>

     issued and outstanding, Five Hundred Seventy Nine Thousand Six Hundred
     Thirteen (579,613) are designated as Series B-1 Preferred Stock (the
     "Series B-1 Preferred"), all of which are issued and outstanding, Three
     Million Nine Hundred Seventy Seven Thousand Seven Hundred Sixty Three and
     16/100 (3,977,763.16) are designated as Series C Preferred Stock (the
     "Series C Preferred"), Two Million Eight Hundred Nineteen Thousand Eight
     Hundred Sixty-Eight and 39/100 (2,819,868.39) of which are issued and
     outstanding (the Series A Preferred, Series B Preferred, Series B-1
     Preferred and Series C Preferred are collectively referred to herein as the
     "Preferred Stock").

               (ii) Except for the shares of Preferred Stock described in
     12(b)(i) and (i) 1,200,000 shares of Common Stock reserved by the Company
     for issuance pursuant to warrants granted in connection with the Company's
     current licensing efforts, (ii) 2,000,000 shares of Common Stock reserved
     for issuance in connection with the Company's Management Option Plan, and
     (iii) 710,526.31 shares of Series C Preferred Stock the Company has
     committed to issue as part of its Series C Preferred Stock Offering, as of
     November 16, 1999, the Company does not have outstanding any capital stock
     or other securities convertible into or exchangeable for any shares of its
     capital stock.

          (c)  Authorization; Binding Obligations. All corporate action on the
               ----------------------------------
part of the Company, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Warrant and each other document or
instrument executed by it, or any of its officers, in connection herewith or
therewith or pursuant hereto or thereto, the performance of all obligations of
the Company under the Warrant and for the authorization, sale, issuance and
delivery of the shares issuable upon exercise of the Warrant has been taken.
When issued in compliance with the provisions of this Warrant, the shares will
be duly authorized, validly issued, fully paid and nonassessable, free of any
liens, preemptive or similar rights, or, except as set forth herein, any other
encumbrances and issued in compliance with all applicable state and federal
securities laws. This Warrant has been duly executed and delivered by the
Company and constitutes the legal, valid and binding obligations of the Company
enforceable in accordance with its terms.

          (d)  No Violations. The execution, delivery and performance of this
               -------------
Warrant and the performance by the Company of its obligations hereunder do not
and will not conflict with or violate any provision of the certificate of
incorporation or bylaws of the Company or any law, statute, rule or regulation
or any agreement, contract or instrument or any order, judgment or decree to
which the Company is subject or by which any of its assets are bound.

          (e)  No Other Representations or Warranties. The representations and
               --------------------------------------
warranties made by the Company in this Warrant supersede any prior statements,
representations and warranties of any person with respect to the Company or the
transactions contemplated hereby. The representations and warranties of the
Company in this Warrant are the only representations and warranties by the
Company upon which Holder may rely in connection with transactions contemplated
by this Warrant.

     13.  Legends.  Unless (i) the shares of Warrant Stock have been registered
          -------
under the 1933 Act, or (ii) in the opinion of counsel for the Company such
legend is no longer required in

                                       16
<PAGE>

order to ensure compliance with the 1933 Act and all applicable state securities
laws, upon the issuance of any of the shares of Warrant Stock, all certificates
representing such shares shall bear on the face thereof substantially the
following legend:

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE
     "SECURITIES") HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON AN
     EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933
     (THE "1933 ACT") AND APPLICABLE STATE SECURITIES LAWS. THE
     SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED
     OTHER THAN (i) PURSUANT TO AN EFFECTIVE REGISTRATION OR AN
     EXEMPTION THEREFROM UNDER THE 1933 ACT AND APPLICABLE STATE
     SECURITIES LAWS, AND (ii) UPON RECEIPT BY THE ISSUER OF
     EVIDENCE SATISFACTORY TO IT OF COMPLIANCE WITH THE 1933 ACT
     AND THE APPLICABLE SECURITIES LAWS OF ANY OTHER
     JURISDICTION. THE ISSUER SHALL BE ENTITLED TO REQUIRE AN
     OPINION OF COUNSEL SATISFACTORY TO IT WITH RESPECT TO
     COMPLIANCE WITH THE ABOVE LAWS. IN MAKING AN INVESTMENT
     DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE
     PERSON OR ENTITY CREATING THE SECURITIES AND THE TERMS OF
     THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE
     SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE
     SECURITIES COMMISSION OR REGULATORY AUTHORITY. ANY
     REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
     INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR
     THE FINANCIAL RISKS OF THEIR INVESTMENT IN THESE SECURITIES
     FOR AN INDEFINITE PERIOD OF TIME.

     Additionally, prior to the IPO all certificates representing
     shares of Warrant Stock shall bear on the face thereof
     substantially the following legend:

     THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
     CERTAIN TERMS AND PROVISIONS OF A WARRANT AGREEMENT
     DATED______________, 1999, WHICH PROVIDES, AMONG OTHER
     THINGS, FOR RESTRICTIONS ON THE TRANSFER OF SUCH SHARES. A
     COPY OF SUCH WARRANT AGREEMENT IS ON FILE AT THE PRINCIPAL
     OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON REQUEST TO
     ANY HOLDER OF THE SHARES REPRESENTED BY THIS CERTIFICATE.

     14.  Notices of Record Date, Etc.  In case:
          ---------------------------

          (a)  the Company shall establish a record date for the holders of its
Common Stock for the purpose of entitling them to receive any dividend or other
distribution, or any right to subscribe for, purchase or otherwise acquire any
shares of stock of any class or any other securities or to receive any other
right;

                                       17
<PAGE>

          (b)  of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation, any share exchange for
shares of capital stock of another corporation or any conveyance of all or
substantially all of the assets of the Company to another corporation;

          (c)  of any voluntary or involuntary dissolution, liquidation or
winding up of the Company; or

          (d)  the Company shall enter into a letter of intent or agreement with
respect to a transaction by which all of the outstanding shares of Common Stock
of the Company are to be acquired by a third party;

then the Company shall mail or cause to be mailed to the Holder at the time
outstanding a notice specifying, as the case may be, (i) the date on which a
record is to be taken for the purpose of such dividend, distribution or rights,
and stating the amount and character of such dividend, distribution or rights,
(ii) the date on which such reorganization, reclassification, consolidation,
merger, conveyance, dissolution, liquidation or winding up is to take place, and
the time, if any is to be fixed, as to which the holders of record of Common
Stock shall be entitled to exchange their shares for securities or other
property deliverable upon the completion of such transaction, or (iii) the
closing of the acquisition by a third party of all of the outstanding shares of
Common Stock.  Such notice shall be mailed as soon as practicable after the
occurrence or likelihood of such event is publicly disclosed.

     15.  Transfer and Assignment.
          -----------------------

          (a)  This Warrant and all rights hereunder may be transferred, in
whole or in part, without charge to the Holder, upon surrender of this Warrant
with a properly executed Assignment (in the form attached hereto) and written
notice specifying the particular Buildings and GLA to which the assignment
relates at the principal office of the Company. Notwithstanding the foregoing,
prior to the consummation of the IPO, without the consent of the Company (which
consent shall not be unreasonably withheld), this Warrant and any part hereof
may be transferred only (i) to an Affiliate of Holder or an Owner of any
Building, (ii) to any direct or indirect shareholder, partner, member of other
equity holder or lender of such Owner, (iii) any successor by merger of Holder,
of any Affiliate of Holder or of any Owner or any subsidiary of such successor
by merger, or (iv) any entity acquiring all or any portion of the assets of
Holder (each, a "Permitted Transfer"). Prior to any assignment or transfer
hereunder the Holder must provide to the Company evidence satisfactory to the
Company that the proposed transfer will be effected in compliance with all
applicable laws, including without limitation federal and state securities laws,
and that the transferring Holder, notwithstanding the transfer, remains
primarily and directly bound by, and that the transferee agrees to be bound by,
the terms of this Warrant. The Company reserves the right to consent to any such
transfer if in its reasonable opinion, or the opinion of its counsel, the
transfer would have an adverse effect on the Company's ability to complete on a
timely basis its IPO. In no event will the Company permit any transfer after the
Company files its registration statement and prior to the closing of the IPO
unless the transferor can demonstrate to the Company's reasonable satisfaction
that the transferor had discussions with the transferee regarding the proposed
transfer prior to the filing of the registration statement.

                                       18
<PAGE>

          (b)  Except as set forth in paragraph (a) above, neither this Warrant
nor any rights hereunder may be assigned, transferred, pledged or hypothecated
in any way (whether by operation of law or otherwise). This Warrant shall not be
subject to execution, attachment or similar process. Any attempted assignment,
transfer, pledge, hypothecation or other disposition of this Warrant contrary to
the provisions of this Warrant shall be null and void and without legal effect.

          (c)  The Company shall maintain at its principal executive offices
books for the registration and the registration of transfer of Warrants. The
Company may deem and treat the registered owner as the absolute owner hereof
(notwithstanding any notation of ownership or other writing thereon made by
anyone) for all purposes and shall not be affected by any notice (other than a
duly executed Assignment) to the contrary.

     16.  Notices.  All notices required hereunder must be in writing and shall
          -------
be deemed given when telefaxed, delivered personally or by overnight delivery
service or within three days after mailing when mailed by certified or
registered mail, return receipt requested, if to the Company, at Fifteen
Piedmont Center, Suite 710, Atlanta, Georgia 30305, Attention: R. Stanley Allen,
with a courtesy copy to Powell, Goldstein, Frazer & Murphy LLP, 191 Peachtree
Street, NE, 16th Floor, Atlanta, Georgia 30303, Attention: William M. Ragland,
Jr., and James K. Wagner, Jr., and if to the Holder, at the address for the
registered Holder as it appears on the books of the Company, or at such other
address of which the Company or Holder has been advised by notice hereunder.

     17.  Rights as a Shareholder.  Unless otherwise expressly provided herein,
          -----------------------
the Holder shall have no rights as a shareholder with respect to any shares
covered by this Warrant until the date of issuance of such shares. No provision
hereof, in the absence of affirmative action by the Holder to purchase Warrant
Stock, and no enumeration herein of the rights or privileges of the Holder shall
give rise to any liability of such holder for the Exercise Price of Warrant
Stock acquirable by exercise hereof or as a stockholder of the Company.

     18.  Lost or Destroyed Warrant.  Upon receipt by the Company of evidence
          -------------------------
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, and upon surrender and cancellation of this
Warrant, if mutilated, the Company shall execute and deliver a new Warrant of
like tenor and date. The Holder agrees with the Company that this Warrant is
issued, and all the rights hereunder shall be held subject to, all of the
conditions, limitations and provisions set forth herein.

     19.  Warrant Exchangeable for Different Denominations.  This Warrant is
          ------------------------------------------------
exchangeable, upon the surrender hereof by the Holder at the principal office of
the Company, for new Warrants of like tenor representing in the aggregate the
purchase rights hereunder, and each of such new Warrants will represent such
portion of such rights as is designated by the Holder at the time of such
surrender. The date that the Company initially issues this Warrant will be
deemed to be the date of this Warrant regardless of the number of times new
certificates representing the unexpired and unexercised rights formerly
represented by this Warrant shall be issued. All Warrants representing portions
of the rights hereunder are referred to herein as the "Warrant" or the
"Warrants."

                                       19
<PAGE>

     20.  Applicable Law.  The Warrant is issued under and shall for all
          --------------
purposes be governed by and construed in accordance with the internal laws of
the State of Delaware, without regard to conflicts of laws principles.

     21.  Entire Agreement.  This Warrant and the other agreements,
          ----------------
certificates and documents delivered in connection with this Agreement contain
the entire agreement among the Company and Holder with respect to the
transactions described herein, and supersede all prior agreements or statements,
written or oral, with respect thereto.

        [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]

                                       20
<PAGE>

     IN WITNESS WHEREOF, the Company and the Holder have caused this Warrant to
be signed as of the day and year first above written.

                                        CYPRESS COMMUNICATIONS, INC.

                                        By:_______________________________
                                        Name:_____________________________
                                        Title:____________________________

                                        [HOLDER]

                                        By:_______________________________
                                        Name:_____________________________
                                        Title:____________________________

                                       21
<PAGE>

                             WARRANT EXERCISE FORM
                             ---------------------

     The undersigned hereby irrevocably elects to exercise the within Warrant to
the extent of purchasing __________ shares of Common Stock of Cypress
Communications, Inc., a Delaware corporation, and hereby makes payment of
$____________ in payment therefor.

                                                ______________________________
                                                Signature

                                                ______________________________
                                                Signature, if jointly held

Date:___________________

********************************************************************************

                       INSTRUCTIONS FOR ISSUANCE OF STOCK
                       ----------------------------------

(if other than to the registered holder of the within Warrant)

Name_________________________________________________________________________
     (Please typewrite or print in block letters)

Address_______________________________________________________________________

Social Security or Taxpayer Identification Number_____________________________

********************************************************************************

                                ASSIGNMENT FORM
                                ---------------

     FOR VALUE RECEIVED, _____________ hereby sells, assigns and transfers unto
_______________________________________________________________________________
               Name (please typewrite or print in block letters)

the right to purchase Common Stock of Cypress Communications, Inc., a Delaware
corporation, represented by this Warrant (which may be a copy if the right to
receive less than all of the shares of Common Stock covered by such Warrant is
being transferred) with respect to the number of shares covered thereby set
forth below and does hereby irrevocably constitute and appoint ________________
______________________________, Attorney, to transfer the same on the books of
the Company with full power of substitution in the premises.

Number of Shares:___________________

Dated:______________________________

                                           Signature___________________________

                                           Signature, if jointly held___________

                                       22DISTRIBUTION AGREEMENT

     This  Agreement  is made and  entered  into as of January  18,  1999 by and
between NetWolves Corporation, a New York corporation ("NetWolves"), and Anicom,
Inc., a Delaware corporation  ("Anicom"),  both having addresses as set forth on
the signature page of this Agreement.

                                   WITNESSETH:

     WHEREAS, NetWolves is engaged in the manufacture,  sale and distribution in
the United States of various software and manufactured products;

     WHEREAS, Anicom is engaged in the business of distributing various types of
wire, cable and connectivity products;

     WHEREAS,  Anicom desires to be appointed as an Exclusive Master Distributor
of NetWolves' Products, as hereinafter defined, throughout North America; and

     WHEREAS,  NetWolves  desires  to  appoint  Anicom  as an  Exclusive  Master
Distributor of the Products throughout North America.

     NOW,  THEREFORE,  in  consideration of the mutual promises and covenants of
the parties as  hereinafter  more fully set forth,  and other good and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

                                 I. DEFINITIONS

     1.1  "Anicom Group": Anicom, its subsidiaries and all Anicom Resellers.

     1.2 "Anicom  Resellers":  Those entities  identified on Appendix A and such
other entities as Anicom may add to Appendix A from time to time upon NetWolves'
consent,  which consent shall not be unreasonably withheld or delayed,  provided
that it will not be  unreasonable  for  NetWolves to withhold its consent if the
entity is a direct competitor of NetWolves.

     1.3  "Committed  Amount":  With respect to each Year, and the first six (6)
months of each Year, the Committed  Amount for purposes of this Agreement  shall
refer to a number of Units determined in accordance with the following:

<PAGE>
<TABLE>
<CAPTION>
                                   Committed Amount

Year                     First 6 Months                 Full Year
----                     --------------                 ---------

<S>                        <C>                         <C>
1                             -                         1,500 Units
2                           1,000 Units                 3,000 Units
3                           3,333 Units                10,000 Units
4                           6,667 Units                20,000 Units
5                          10,000 Units                30,000 Units
</TABLE>

provided, however, if (a) the number of Units purchased by the Anicom Group in a
given Year exceeds the Committed Amount for such Year, then the Committed Amount
in subsequent Years shall be reduced,  in the aggregate  beginning with the next
succeeding  year,  by the amount of such  excess,  and (b) if the  Anicom  Group
orders at least the Committed  Amount for a given Year,  but NetWolves is unable
to deliver to the Anicom Group within such year the full number of Units ordered
in such Year, then such shortfall shall be credited against the Committed Amount
for the next Year.

     1.4  "Distributor":  A wholesaler  or an entity whose  primary  business is
selling products competitive with those of Anicom.

     1.5  "Effective Date":  February 1, 1999.

     1.6  "Product":  The  Foxbox,  as  described  on  Appendix  B,  and any New
Versions,   Competitive   Products,   updates,   enhancements,    modifications,
replacements or substitutions thereto.

     1.7  "Territory": North America.

     1.8 "Unit": A unit of Product, regardless of cost.

     1.9 "Year":  Each  twelve  month  period  ending on an  anniversary  of the
Effective  Date.  For  example,  the  twelve-month  period  ending  on the first
anniversary of the Effective Date is referred to as the first Year.

                                   II. PURPOSE

     The purpose of this  Agreement is to promote and achieve the effective sale
of Products within Anicom's assigned  Territory.  NetWolves and Anicom recognize
the market in which the Products are sold is extremely  competitive;  that there
are generally  competitive  products in the  marketplace;  and that in order for
NetWolves  and Anicom to achieve a  satisfactory  level of sales it is necessary
that Anicom compete effectively in the marketplace.
<PAGE>

                                III. APPOINTMENT

     3.1  Appointment.  NetWolves hereby appoints Anicom as its Exclusive Master
Distributor  of  Products  in  the  Territory  and  Anicom  hereby  accepts  the
appointment.

     3.2  Nature  of  Appointment.  The  appointment  is  exclusive  within  the
Territory,  and NetWolves  shall not appoint any other  distributors  within the
Territory as long as this Agreement is in full force and effect.  In furtherance
of this  appointment,  NetWolves will clearly  identify  Anicom as its exclusive
distributor  in  the  Territory  on  NetWolves'  website.   Notwithstanding  the
foregoing,  NetWolves shall have the right to make direct sales or leases of the
Products to customers,  Distributors and Anicom Resellers,  and NetWolves agrees
to pay Anicom a 6%  commission  on any sales or leases  made by  NetWolves  that
Anicom is not involved with in the Territory,  and to pay Anicom a 5% commission
on NETS (NetWolves  Enhanced  Technical  Support) revenues within the Territory,
provided  that any such  sales or leases to  Distributors  shall be  counted  as
orders from Anicom for purposes of Sections 5.3 and 8.2, but otherwise, sales or
leases of Products by NetWolves to other parties,  including without limitation,
the  Sullivan  Group  pursuant  to an  agreement  entered  into  prior  to  this
Agreement, will not be counted as orders from Anicom for purposes of Section 5.3
and 8.2.  Payment of any commissions to Anicom will be made by NetWolves  within
forty-five  (45)  days of the  receipt  of funds  from  such  customers.  Should
NetWolves fail to pay any  commissions  when due, Anicom will charge interest on
the  outstanding  commissions at the lower of 1-1/2%  compounded  monthly or the
maximum rate permitted by law.

     3.3  Commercially  Reasonable  Efforts.  During the term of this Agreement,
Anicom shall promote and sell Products within the Territory. However, the Anicom
Group shall not be obligated to purchase any Products at any time hereunder, and
if the Anicom Group fails to order the Committed  Amount in any given Year,  for
any  reason,  NetWolves'  sole and  exclusive  remedy  shall be as set  forth in
Section 5.3.

     3.4 Sales to Resellers.  NetWolves shall direct all Anicom Resellers to buy
Products  from Anicom.  In the event an Anicom  Reseller  elects not to buy from
Anicom,  NetWolves  will provide Anicom with a written  report  concerning  such
events.  In the event an  Anicom  Reseller  elects  not to buy from  Anicom  and
purchases or leases Products from NetWolves, NetWolves agrees to pay to Anicom a
commission  on any such sales or leases  equal to Anicom's  gross profit that it
would have  recognized  on such sale.  As used herein,  the term "gross  profit"
shall mean an amount  equal (i) the amount that Anicom  would have  charged such
Anicom  Reseller based upon its recent sales of similar  Products and historical
sales to that  Anicom  Reseller,  minus  (ii)  Anicom's  discounted  price  from
NetWolves  then in effect  pursuant  to Section  8.2.  Payment of the  foregoing
amount to Anicom will be made by  NetWolves  within  forty five (45) days of the
receipt of funds from such Anicom  Reseller.  Should  NetWolves  fail to pay any
commissions when due, Anicom will charge interest on the outstanding commissions
at the lower of 1-1/2% compounded monthly or the maximum rate permitted by law.

<PAGE>

                   IV. NOTIFICATION REGARDING PRODUCT CHANGES

     NetWolves  shall  notify  Anicom in writing  not less than ninety (90) days
prior to any changes to any of the Products,  including without limitation,  any
New Versions, updates, modifications, model changes and substitutions. NetWolves
shall also  notify  Anicom in writing  not less than  ninety  (90) days prior to
adding or deleting a Product.

                              V. COMMITTED AMOUNTS

     5.1 Annual  Accounting.  Within sixty (60) days after the end of each Year,
NetWolves  shall  prepare or caused to be  prepared  and  delivered  to Anicom a
statement  setting  forth the actual  purchases  by the Anicom Group during such
Year, the Committed  Amount for such Year, the  commissions  earned and paid for
such  Year,  and  the  bonus  discounts   earned  for  such  Year  (the  "Annual
Statement").  If Anicom disagrees with an Annual Statement,  Anicom shall notify
NetWolves in writing of such disagreement within thirty (30) days after the date
on which  Anicom  received  the Annual  Statement,  which  written  notice shall
specify  the nature of the dispute and shall  provide in  reasonable  detail the
facts or circumstances upon which such dispute is based.  Thereafter,  NetWolves
and Anicom shall attempt in good faith to resolve such disagreement with respect
to the Annual Statement.

     5.2 Dispute  Resolution.  If NetWolves and Anicom are unable to resolve any
disagreement  regarding  an Annual  Statement  within  twenty  (20)  days  after
NetWolves'  receipt of notice of disagreement  from Anicom,  either NetWolves or
Anicom may give notice (an "Arbitration Notice") to the other party of an intent
to submit such  disagreement to a certified  independent  public accounting firm
that is among the five largest such firms in the United States (the "Independent
Accounting  Firm") and mutually  agreeable to NetWolves and Anicom. If NetWolves
and  Anicom  cannot  agree  upon such  election  within  twenty  (20) days after
delivery of the Arbitration  Notice,  the  Independent  Accounting Firm shall be
selected by lot from among the five largest  independent public accounting firms
in the United States. The dispute shall be immediately  submitted by the parties
to the Independent  Accounting Firm for resolution of such dispute within twenty
(20) days after  submission to the Independent  Accounting  Firm. At the time of
the  submission  of  such  dispute  to  the  Independent   Accounting  Firm  for
resolution,  NetWolves shall file with the Independent Accounting Firm a written
statement of its position  with regard to any matters in dispute,  at which time
Anicom  shall have ten (10) days to respond in writing to  NetWolves'  position.
Upon  receipt  of  written  position  statements  by  each of the  parties,  the
Independent  Accounting  Firm  shall  resolve  the  dispute in  accordance  with
generally accepted accounting principles,  consistently applied. The decision of
the  Independent  Accounting  Firm shall be final and  binding  upon all parties
hereto.  Each  party  shall bear its own  expenses,  including  expenses  of its
accountants and attorneys in connection with the resolution of any such dispute,
and the fees and expenses of the  Independent  Accounting  Firm shall be paid by
the parties as determined by the Independent Accounting Firm.

<PAGE>

     5.3 Failure to Meet Committed Amount. Notwithstanding Sections 5.1 and 5.2,
in the event the  Anicom  Group  shall  fail to order  Products  from  NetWolves
equaling or exceeding the  corresponding  Committed  Amount for any Year, or the
first six months of any Year,  other than as a result of  NetWolves'  failure to
timely fulfil orders  placed by Anicom during such Year,  NetWolves  may, at its
option, take any or all of the following actions:

          (a) convert Anicom's  Exclusive Master Distributor rights hereunder to
that of a Master Distributor or Distributor in the Company's Reseller Program at
a level based on the number of Units  purchased by the Anicom Group in the prior
Year;

          (b) elect to terminate this Agreement,  provided that  notwithstanding
such termination,  NetWolves shall continue to sell to Anicom such quantities of
repair parts,  supplies,  accessories and replacement  inventory of any model of
the  Products  which  Anicom may  reasonably  require to  effectuate  an orderly
disposal  of  Anicom's  existing  inventory  of  Products as well as continue to
service the Products theretofore sold by Anicom; and

          (c)  immediately  upon  written  notice  to  Anicom,  stop any and all
override  commissions  referred to in Section 3.2 and Section 8.2, provided that
NetWolves  shall remain  obligated to pay any such  commissions  earned prior to
such notice.

     5.4 Committed Amount to be  Renegotiated.  In the event that this Agreement
shall be extended  beyond its original  five (5) year term,  the parties  hereto
shall jointly agree upon a new Committed Amount for each subsequent Year hereof,
and the same shall be endorsed by the parties and made a part of this Agreement,
failing which the Agreement shall not be renewed.

                           VI. NETWOLVES' OBLIGATIONS

     6.1  Instruction  Manuals.  NetWolves  shall  provide to Anicom  reasonable
quantities of  instruction  manuals as well as  catalogues,  circulars and other
printed or electronic  media material which it may have on hand and which are or
may be useful to Anicom in the conduct of sales of the Products.

     6.2  Advertising  Materials.  NetWolves  shall  furnish  to  Anicom in such
amounts  as  NetWolves  and  Anicom  reasonably  deem  necessary,  for a minimal
handling fee as NetWolves shall determine, such advertising aids which NetWolves
may  have  from  time to time  and  which  Anicom  may  use in  advertising  and
promotional campaigns for the Products.  Anicom may adapt, translate,  reproduce
and distribute such  advertising  aids as Anicom deems  appropriate or necessary
with NetWolves'  prior written  consent,  which consent will not be unreasonably
withheld or delayed.

     6.3 Access to NetWolves' Employees.  NetWolves agrees to provide reasonable
access to its Internet Sales Consultants to assist Anicom in selling Products.

<PAGE>

     6.4 Warranties and Representations of NetWolves.  NetWolves  represents and
warrants  that (a) it is a corporation  duly  organized and existing and in good
standing  under  and by  virtue  of the laws of the state set forth on the title
page hereof;  (b) it has the  corporate  power and  authority to enter into this
Agreement and to conduct its business as currently conducted and as contemplated
hereunder;  (c) the signatory to this  Agreement for NetWolves has the power and
authority  to bind  NetWolves;  (d)  NetWolves  owns or has the right to use all
patents, patent rights,  copyrights,  trade secrets and other proprietary rights
in or to the  Products;  (e) to the  Company's  knowledge,  the  Products do not
infringe any patent, copyright, trade secret or other proprietary right owned by
a third person; (f) NetWolves'  execution and performance of this Agreement will
not violate any other  agreement or obligation by which  NetWolves may be bound;
(g) NetWolves will be entitled to exercise its rights under this Agreement, free
of any  attribution,  accounting  or  consent  obligation,  except as  otherwise
specified herein;  (h) to the Company's  knowledge,  the occurrence in or use of
dates on or after  January  1,  2000,  including  leap  year  calculations  (the
"Millennial  Dates") will not adversely  affect the  performance of the Products
with respect to date dependent  data,  computations,  output or other  functions
(including, without limitation,  calculating,  computing and sequencing) and the
Products  will  create,  sort and  generate  output data related to or including
Millennial  Dates  without  errors or  omissions;  and (i) the  Products  do not
contain any "time bomb," "Trojan horse," "worm," "drop dead device," "virus" (as
these terms are commonly used in the computer software industry),  to disable or
erase  software,  hardware,  or data,  or to perform any other  similar  type of
functions.

     6.5 Copies of Products.  Upon the  execution of this  Agreement,  NetWolves
will deliver two (2) copies of the current Products to Anicom to be used for the
purposes described in Section 7.7.

     6.6 Training. NetWolves will provide personnel of the Anicom Group training
at no additional  charge, to the extent NetWolves and Anicom reasonably  believe
it will enable the Anicom  Group to  adequately  promote and sell the  Products,
including without limitation,  the initial training described on Appendix C (the
"Initial Training").

     6.7 Product  Support.  During the term of this  Agreement,  NetWolves  will
provide  support (as defined  below) to the Anicom Group and Anicom's  customers
and resolve  reported  problems in a timely and professional  manner.  "Support"
means (a) providing to the Anicom Group any corrections, releases and updates to
the Products; (b) consultation with the Anicom Group and Anicom's customers with
respect to technical questions and suspected errors reported by the Anicom Group
and/or  Anicom's  customers;  and (c)  resolution  of  errors  in the  Products.
NetWolves will provide Support seven (7) days per week,  twenty-four  (24) hours
per  day,  and  support  will  be in the  form  of  telephone,  e-mail  and  fax
communication.

     6.8 Upgrades and New Versions. During the term of the Agreement,  NetWolves
will provide to Anicom,  at prices to be determined  in accordance  with Section
8.2, the  enhancements,  upgrades  and new versions of the Products  that may be
developed by or for NetWolves for use in the Territory  (each, a "New Version"),
together with sufficient  explanatory  materials to enable Anicom to promote and
sell the Products. Such New Versions will become additional Products and will be

<PAGE>

subject to the terms and conditions of this  Agreement.  NetWolves will promptly
offer to Anicom any new computer programs that it develops or acquires the right
to  distribute  in the  Territory  which  competes with or that can be used as a
substitute  for the  Products  in  whole  or in part  or  that  perform  similar
functions to the Products on computer hardware platforms that are different from
the  computer  hardware  platforms  on  which  the  Products  currently  operate
("Competitive  Product").  In the event Anicom accepts such Competitive Product,
the Competitive Product will become additional Products subject to the terms and
conditions of this Agreement.

     6.9 Product Development. Anicom and NetWolves will meet not less often than
once each  fiscal  quarter,  at such  times and places as the  parties  mutually
agree, to discuss  NetWolves'  development plans and any maintenance and support
problems.  NetWolves  will  make  reasonable  efforts  to  accommodate  Anicom's
requests  for  Product  modification,  enhancement  or porting  to new  hardware
platforms.

     6.10  Future   Deliverables.   NetWolves  will  deliver  New  Versions  and
Competitive  Products to Anicom no later than the time  NetWolves  releases such
Products in final form to any other person or entity,  together with any related
documentation,  for testing and acceptance in accordance  with Anicom's  quality
assurance  procedures.  NetWolves  will make  reasonable  efforts to correct any
errors that Anicom may report to NetWolves, at no additional charge.

     6.11 Capacity.  NetWolves will use its commercially  reasonable  efforts to
maintain  relationships with manufacturers so that required  production capacity
can be maintained to fulfill orders in a timely manner.

             VII. RIGHTS, OBLIGATIONS AND RESPONSIBILITIES OF ANICOM

     7.1  Warranties  and  Representations  of  Anicom.  Anicom  represents  and
warrants as follows:  (a) Anicom is a company  organized,  existing  and in good
standing  under and by virtue of the laws of the State of  Delaware;  (b) it has
the power and authority to enter into this  Agreement;  and (c) the signatory to
this Agreement for Anicom has the power and authority to bind Anicom.

     7.2 Sales and Service  Responsibility.  Anicom  shall  promote,  advertise,
merchandise and sell the Products in the Territory to meet its commitments,  and
in connection therewith, shall:

          (a)  establish and maintain  adequate  facilities  and personnel  that
Anicom  reasonably  believes may be necessary  to meet the  obligations  assumed
hereunder;

          (b)  formulate and execute marketing and sales plans;

<PAGE>

          (c) supply sales and inventory data as may be reasonably  requested by
NetWolves  from time to time in such form as NetWolves may  reasonably  request,
and which Anicom can readily  generate,  to assist  NetWolves in its  production
planning and to provide a basis for evaluating Anicom performance;

          (d)  maintain at all times the number of Products  and  assortment  of
Products, which Anicom reasonably believes are necessary and appropriate for the
market involved;

          (e)  maintain  and employ in  connection  with  Anicom's  business and
operations such working capital as Anicom reasonably believes may be required to
enable  Anicom to  properly  and fully  carry out and  perform  all of  Anicom's
duties, obligations and responsibilities under this Agreement;

          (f) promote the sale of Products in the Territory, and specifically in
furtherance thereof:

                         (i) collect technical and engineering requirements from
          customers and, to the extent reasonably able, assist in the adaptation
          of the Products to customers' uses;

                         (ii)  to  the  extent  it is  reasonably  able,  assist
          customers in  gathering  data on the  adaptability  of the Products to
          customers' potential use of the Products;

                         (iii) to the  extent it is  reasonably  able,  act as a
          liaison and coordinator  between  Anicom's  customers and NetWolves in
          communicating  both customer and NetWolves  requirements for technical
          specifications, manufacturing schedules, delivery schedules, and other
          terms and conditions of sale; and

                         (iv) to the  extent it is  reasonably  able,  follow-up
          with   Anicom's   customers  to  determine   that  the  Products  have
          satisfactorily met customer requirements.

     7.3 State and Local Taxes. Where required, Anicom shall pay, or cause to be
paid, all taxes (except  NetWolves' income taxes),  assessments and charges that
are based upon the sale,  use or ownership of the  Products  hereunder,  or upon
Anicom's right to sell or lease the same.

     7.4  Trademarks.  Anicom shall not use any trademark or trade name owned by
NetWolves,  either  alone or with any  other  word or words as part of  Anicom's
trade or corporate name,  without the express  written  permission of NetWolves.
Anicom shall not remove any such  trademarks  or trade names from the  Products.
Upon request by NetWolves,  and in any event upon termination of this Agreement,
Anicom agrees to completely  discontinue any use of any of NetWolves' trademarks
or trade names, for any purpose  whatsoever,  including use in Anicom's trade or
corporate name.

<PAGE>

     7.5 Anicom Not Agent.  Anicom is an  independent  contractor in relation to
NetWolves,  solely and  exclusively  responsible  for its own acts at all times.
Anicom is not authorized to act as agent for NetWolves and has neither the right
nor authority to assume or create  obligations of any kind  whatsoever on behalf
of NetWolves,  or to accept service of legal  processes of any kind addressed to
or intended for NetWolves,  or to bind NetWolves in any respect whatsoever.  The
relationship  between NetWolves and Anicom is that of vendor and vendee, and not
of principal and agent.

     7.6 Prices.  Anicom will establish,  at its sole discretion,  the prices or
fees that Anicom may charge for the Products. Anicom may offer discounts against
such prices and fees.  NetWolves,  at its sole  discretion,  shall establish the
manufacturers'  suggested  retail  price for the  Products  which  shall be made
available  to potential  purchasers  which price shall be the basis for applying
Anicom's discount from list price pursuant to Section 8.2.

     7.7  Demonstration  and  Trial  Use  Copies.   The  Anicom  Group  has  the
non-exclusive,  non-transferable and royalty-free right to use two copies of the
Products  as set forth in  Section  6.5,  (a) to conduct  demonstrations  of the
Products at the Anicom Group's  premises,  (b) to permit  potential Anicom Group
customers to conduct  evaluations of the Products at the potential  Anicom Group
customers'  premises and (c) to conduct internal education of the Anicom Group's
employees in the use and operation of the  Products.  The Anicom Group will take
reasonable  measures  necessary to remove the Products from its potential Anicom
Group customers'  computer hardware on or before the expiration of the trial use
period.

     7.8 Repair Items.  NetWolves  shall sell to the Anicom Group and the Anicom
Group's  customers  any needed  repair parts,  supplies,  accessories  and shall
supply the Anicom Group any needed  replacement  inventory.  In the absence of a
NETS Service  Agreement,  NetWolves  shall  charge for such parts,  supplies and
accessories in accordance with its published prices from time to time.

     7.9 Point-of-Sale Reports.  Anicom shall provide NetWolves,  within fifteen
(15) days after the end of each month, a copy of Anicom's  point-of-sale  report
for such month.

               VIII. PURCHASE ORDERS, PRICES, AND TERMS OF PAYMENT

     8.1 Purchase Orders. All purchase orders of Anicom shall,  unless otherwise
agreed by  NetWolves  from time to time,  be in writing  and shall set forth the
quantity  of the  Products  desired,  the  specifications  thereof,  the desired
delivery  date, the price of each Product,  and all other  relevant  information
necessary  to  effectuate   shipment  of  the  Products  by  NetWolves.   It  is
contemplated  that from time to time  purchase  orders in forms  prepared by the
Anicom Group or other purchasers,  may be used in ordering the Products and that
there  may be  included  in  such  forms  certain  stipulations,  conditions  or
agreements not otherwise contained herein. It is expressly understood and agreed
that the  provisions of this  Agreement  shall be deemed a part of each purchase
order  accepted by NetWolves and any provision in any purchase order which shall

<PAGE>

be  inconsistent  with or contrary to the provisions of this Agreement  shall be
deemed amended or deleted,  as the case may be.  NetWolves  shall deliver to the
destinations directed by the Anicom Group.

     8.2  Prices and Terms of Sale.

     (a) For the original five year term herein, Anicom shall be invoiced at the
rate of sixty percent (60%) of NetWolves'  established list prices,  such amount
to be reduced to fifty  percent  (50%) of  NetWolves'  established  list  prices
commencing with the purchase of the first Unit after Anicom has ordered,  in the
aggregate,  3,000 Units.  NetWolves  will provide  Anicom with thirty (30) days'
written notice prior to any increase in NetWolves'  established list prices.  In
the event Anicom  produces an account that  purchases  1,000 Units before Anicom
reaches  3,000  Units of  Product,  NetWolves  agrees to provide  Anicom with an
additional 5% discount for that particular order or orders.

     (b) All invoices shall be paid net fort-five (45) days from date of invoice
except Anicom's  initial  purchase order which will be paid for as follows:  (i)
10% of the  amount  due will be paid  within  ten (10)  days of the date of this
Agreement  and (ii) the balance will be paid within  fifteen (15) days after the
delivery of the initial  purchase order to the  destination of Anicom's  choice.
Should Anicom fail to pay any invoice when due,  NetWolves will charge  interest
on the outstanding balance of invoices at the lower of 1-1/2% compounded monthly
or the maximum rate permitted by law. Anicom shall make payment to NetWolves for
all Products purchased by Anicom in a timely fashion, all in accordance with the
terms of payment set forth above.

          (c) Products shall be shipped F.O.B. destination,  such destination to
be  determined  by Anicom.  Title and risk of loss shall  remain with  NetWolves
until  delivery to such  destination  and Anicom will pay the cost of freight so
long as the Products are shipped in accordance with Anicom's instructions.

     8.3  Acceptance  of  Orders.  NetWolves  shall  accept  all  orders for the
Products submitted to NetWolves by the Anicom Group at NetWolves' Tampa, Florida
or  Melville,  New York  locations.  The Anicom Group may cancel an order or any
portion thereof, without charge or penalty, only in the event that such order is
not delivered  within  seventy-five  (75) days of the date on which the order is
submitted to NetWolves.

     8.4 Sales through Reseller Program. All orders of Anicom Resellers shall be
processed and made directly through Anicom.  All Anicom  Resellers  appointed by
NetWolves  under the  Reseller  Program  shall be required to purchase  Products

<PAGE>

through Anicom or from NetWolves at their choice,  subject to Section 3.4 above.
All sales of Products to  distributors in NetWolves'  Reseller  Program shall be
pursuant to the  pricing  schedule  set forth on Appendix D, or as amended  from
time to time at NetWolves' option.

     8.5  Inventory Adjustments.

          (a) NetWolves  agrees to provide Anicom with the opportunity to adjust
its levels of NetWolves  inventory of Products  under the following  conditions.
NetWolves  shall  repurchase or exchange,  at NetWolves'  option (an  "Inventory
Adjustment"):  (i) any newly introduced Products,  defined as Products which are
in the first six (6)  months of the  Product  introduction  period  and were not
previously  stocked by Anicom (for  purposes  herein,  the product  introduction
period begins upon first  receipt of the Products by Anicom),  and (ii) any slow
move return items, defined as new, unused products in original cartons which (1)
have been in Anicom's  inventory for at least three months and (2) have not been
reordered from NetWolves during such three month period.

          (b)  NetWolves  agrees to exchange  or credit to Anicom's  account all
Products in Anicom's  inventory  which have been replaced by updated,  modified,
enhanced,   newly  released  and/or  enhanced  Products,   New  Versions  and/or
Competitive Products ("Improved Product Adjustment").

          (c)  NetWolves  agrees  that it will  allow  Anicom  to  exchange  for
Products of equal value up to fifteen  percent (15%) of the prior purchases made
during each of NetWolves' fiscal quarters subject to the following:

                         (i) Products returned must be unused, undamaged, sealed
          in their original packages and in merchantable condition;

                         (ii) all freight charges for said returns shall be paid
          by Anicom;

                         (iii)     sales of special configurations of Products
          shall not be subject to exchange; and

                         (iv)  Products  returned  to  NetWolves  as an Improved
          Product  Adjustment  shall not be included in determining  the fifteen
          percent (15%) rotation amount.

     8.6  Inspection Rights.

          (a) Anicom agrees that NetWolves may conduct periodic  examinations of
the  NetWolves'  stock at Anicom's  location and Anicom agrees to cooperate with
NetWolves'  designated  Quality   Representative  in  conducting  such  periodic

<PAGE>

examinations of Anicom's inventory rotation. NetWolves shall provide Anicom with
at least thirty (30) days' notice prior to conducting any such examinations. All
examinations will be conducted during Anicom's normal business hours.

          (b) NetWolves agrees that Anicom may conduct periodic  examinations of
such of  NetWolves'  books and  records  as are  necessary  in  connection  with
Anicom's review of any Annual  Statement  pursuant to Section 5.1, and NetWolves
agrees  to  cooperate  with  Anicom's  designated  representatives  during  such
examination of NetWolves' books and records. Anicom shall provide NetWolves with
reasonable  notice prior to conducting any such  examinations.  All examinations
shall be conducted during NetWolves' normal business hours.

     8.7 Force  Majeure.  Neither  party hereto shall have any  liability to the
other party hereto on account of any non-performance or delay resulting from any
strike, lockout,  accident, fire, act of God, embargo or governmental action, or
any other like cause  beyond the  control  of such  party,  whether  the same or
different from the matters and things hereinabove specifically enumerated.

            IX. WARRANTY, LIMITATION OF LIABILITY AND INDEMNIFICATION

     9.1  Warranty.  All  Products  sold to the Anicom  Group  pursuant  to this
Agreement  are sold subject to the  standard  warranty of NetWolves as may be in
effect from time to time (the  "Standard  Warranty").  The Anicom Group shall be
entitled to pass on the Standard  Warranty and the warranty set forth in Section
6.4 hereof to any of the Anicom Group's  customers.  NetWolves  agrees to accept
any such warranty claims directed to the Anicom Group or NetWolves by the Anicom
Group's  customers.  The Anicom Group is not  authorized  to assume on behalf of
NetWolves any other  obligation or liability in connection  with the sale of the
Products in addition to the  Standard  Warranty  and the  warranty  set forth in
Section 6.4 except as specifically  approved by NetWolves.  THE  ABOVE-MENTIONED
WARRANTIES  SHALL BE THE SOLE AND  EXCLUSIVE  WARRANTIES OF NETWOLVES AND ARE IN
LIEU OF ALL OTHER WARRANTIES,  EXPRESS, IMPLIED OR STATUTORY,  INCLUDING BUT NOT
LIMITED TO ANY IMPLIED  WARRANTY OF  MERCHANTABILITY  OR FITNESS,  AND NETWOLVES
NEITHER ASSUMES NOR AUTHORIZES  ANICOM TO ASSUME FOR IT ANY OTHER OBLIGATIONS OR
LIABILITY IN  CONNECTION  WITH THE PRODUCTS  WITHOUT  NETWOLVES'  PRIOR  WRITTEN
CONSENT.

     9.2  Limitation of  Liability.  IN NO EVENT SHALL EITHER PARTY BE LIABLE TO
THE OTHER FOR ANY SPECIAL,  INCIDENTAL OR CONSEQUENTIAL  DAMAGES (INCLUDING LOSS
OF PROFIT) OF THE OTHER FOR ANY REASON  WHATSOEVER,  WHETHER  ANY CLAIM FOR SUCH
RECOVERY  IS BASED UPON  THEORIES OF  CONTRACT,  NEGLIGENCE  OR TORT  (INCLUDING
STRICT LIABILITY), AND EVEN IF THE PARTY HAS KNOWLEDGE OF THE POSSIBILITY OF THE
POTENTIAL LOSS OR DAMAGE.

     9.3  Indemnification.  Anicom will promptly notify  NetWolves in writing if
any claim is brought or  threatened  against  the Anicom  Group that arises from
breach of the  representations  and  warranties set forth in Section 6.4 and 9.1
above.  Provided that NetWolves  diligently defends any such claim,  Anicom will
not settle or compromise any such actual or threatened claim without  NetWolves'
prior written consent.  Subject to these  conditions,  NetWolves will indemnify,
defend and hold  harmless  the Anicom  Group  against  all  damages,  losses and
expenses (including reasonable attorneys' fees) that they may suffer or incur in
connection with any such actual or threatened claim. Anicom shall have the right
to employ separate  counsel in any such action and to participate in the defense
thereof,  but the fees and expenses of such counsel  shall not be at the expense
of NetWolves unless NetWolves fails to promptly defend or a conflict shall exist
between the positions of NetWolves  and Anicom,  in which case,  the  reasonable
fees and expenses of such separate counsel shall be borne by NetWolves.

<PAGE>

                          X. TERM; RENEWAL; TERMINATION

     10.1 Term and Renewal. This Agreement shall take effect on the commencement
date as set forth on the title page hereof and shall  continue in full force and
effect for a five year period subject to the terms of Sections 5.3(b) and 10.2.

     10.2   Termination.   The   provision  of  Section  10.1  to  the  contrary
notwithstanding,  this  Agreement  may be  terminated  pursuant  to the terms of
Section 5.3 and additionally as follows:

     (a) By NetWolves,  immediately  upon giving  written  notice,  in the event
Anicom fails to make full payment of its initial  purchase  order within fifteen
(15) days after delivery of the Products in accordance with this Agreement;

     (b) By NetWolves,  upon thirty (30) days' prior written notice to Anicom at
any time during the first two (2) Years,  provided  that,  as a condition to the
effectiveness of such  termination,  NetWolves shall pay to Anicom a termination
fee of (i) $750,000 if such termination  occurs in Year 1, or (ii) $1,500,000 if
such termination occurs in Year 2, in each case, payable within ten (10) days of
notice thereof;

     (c) By NetWolves, immediately upon giving written notice, in the event that
there are  instituted  proceedings  by or against  Anicom in bankruptcy or under
insolvency  laws which are not vacated  within  sixty (60) days from the date of
filing,  Anicom makes an assignment of all or part of its assets for the benefit
of creditors or Anicom shall admit insolvency or ceases to exist;

          (d) By either  party,  if a material  breach  shall occur which is not
cured  within a period of thirty  (30) days (ten (10) days with  respect  to any
payment default) after written notice thereof from the non-breaching party;

<PAGE>

          (e) By Anicom  immediately  upon giving written  notice,  in the event
that there are instituted  proceedings by or against  NetWolves in bankruptcy or
under insolvency laws which are not vacated within sixty (60) days from the date
of filing,  NetWolves  makes an  assignment of all or part of its assets for the
benefit of creditors or NetWolves shall admit insolvency or ceases to exist; or

          (f) By Anicom in the event that the Products cease to be  manufactured
by or on behalf of NetWolves.

     10.3  Obligations  Upon  Termination.  In the event that this  Agreement is
terminated  by  Anicom  in  accordance  with  the  terms  hereof,  or  NetWolves
terminates  this Agreement  pursuant to Section  10.2(b),  Anicom shall have the
right, but not the obligation, to direct NetWolves to repurchase from Anicom all
or any portion of any new,  undamaged,  and unused  Products  which are in their
original  containers  theretofore sold by NetWolves to Anicom,  and owned by and
remaining in Anicom's inventory (other than Products that have been in inventory
for more than one year),  at the  original  purchase  prices,  exclusive  of any
transportation  charges  originally  paid by Anicom and less any  non-reimbursed
transportation  charges  originally  paid by  NetWolves.  In the event that this
Agreement is terminated by NetWolves in accordance  with the terms hereof (other
than pursuant to Section  10.2(b)),  NetWolves shall have the right, but not the
obligation,  to repurchase Products from Anicom in accordance with the foregoing
at the lower of the  prevailing or original  purchase  prices,  exclusive of any
transportation  charges  originally  paid by Anicom and less any  non-reimbursed
transportation charges originally paid by NetWolves.

                             XI. GENERAL PROVISIONS

     11.1 Assignment.  This Agreement may not be assigned by either party to any
other  individual or business  entity without the prior written  approval of the
non-assigning  party,  provided  that  either  party may  assign  its rights and
obligations  hereunder to any  successor-in-interest  resulting  from a business
combination without the consent of the other party.

     11.2  Notice.  All  notices  permitted  or required  hereunder  shall be in
writing,  and  shall be  effective:  (a) as of the date  sent,  if by  confirmed
facsimile or personal  delivery,  (b) as of the next day  following  the date on
which sent, if sent by nationally  recognized overnight courier or (c) as of the
third day following the date sent, if sent by United States mail,  registered or
certified mail, return receipt  requested,  postage  pre-paid.  All such notices
shall be sent to the respective  parties at the address or facsimile  number set
forth on the signature page hereof or to such other address as may be designated
by either party from time to time by notice given in accordance herewith.

<PAGE>

     11.3 Entire Agreement. This Agreement, together with all attachments hereto
and all purchase  orders  issued  hereunder,  constitutes  the entire  agreement
between the parties and supersedes any and all previous agreements, memoranda or
other understandings of the parties.
This Agreement may be amended only in writing.

     11.4 Severability of Provisions.  A judicial or administrative  declaration
in any  jurisdiction  of the  invalidity  of any one or  more of the  provisions
hereof shall not  invalidate  the remaining  provisions of this Agreement in any
jurisdiction,  nor shall such  declaration  have any effect on the  validity  or
interpretation of this Agreement outside of that jurisdiction.

     11.5 Waiver of  Compliance.  Any failure by any party  hereto to enforce at
any time any term or condition  under this Agreement shall not be construed as a
waiver of that  party's  right  thereafter  to  enforce  each and every term and
condition of this Agreement.

     11.6  Binding Upon  Successors.  This  Agreement  shall be binding upon the
successors and legal representatives of the parties hereto.

     11.7 Jurisdiction and Governing Law. This Agreement shall be deemed to have
been made in the State of New York, and shall be construed according to the laws
of that  state.  Anicom  consents  to the  jurisdiction  of any court of general
jurisdiction  located  within the Borough of Manhattan,  City of New York,  with
respect to any legal proceedings arising out of this Agreement,  and agrees that
the mailing to its last known  address by  registered  mail of any process shall
constitute lawful and valid service of process in any such proceeding,  suit, or
controversy.  Anicom  shall  bring  any  legal  proceeding  arising  out of this
Agreement  only in the  federal  or  state  courts  located  in the  Borough  of
Manhattan, City of New York.

<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be
executed in duplicate  originals by their duly  authorized  representatives  the
date and year first set forth on the title page hereof.

NETWOLVES CORPORATION

Telecopy No.:
Attn:

BY:/s/____________________________

TITLE:__________________________

DATE:__________________________

ANICOM, INC.
6133 North River Road
Suite 1000
Rosemont, Illinois  60018-5171
Telecopy No.:  (847) 518-8777
Attn:  Scott C. Anixter

BY:/s/___________________________

TITLE:__________________________

DATE:__________________________

<PAGE>

                           APPENDIX A
                        ANICOM RESELLERS

Midwest Datacomm
SER Communication
Teknon
Cal Communications
Comdisco

List to be updated from time to time by Anicom.
<PAGE>

                                   APPENDIX B
                             DESCRIPTION OF PRODUCT

See Price List attached as Appendix D.

<PAGE>

                                   APPENDIX C
                           INITIAL TRAINING SCHEDULE

Training to be completed by February 28, 1999.

<PAGE>

                                   APPENDIX D
                                   PRICE LIST

                  SEE ATTACHED NETWOLVES PRICE LIST DATED 10/98

<PAGE>

                      INTERNET SOLUTION SERVER - PRICE LIST

<TABLE>
<CAPTION>

                                                            Effective: 10/98
                                   Base Units
<S>         <C>                                                                                   <C>
 Part No.   Description                                                                           List Price

 FB-DDR     FoxBox DDR                                                                             $3,400
            Connection type: Dial-on-Demand
            Includes: 200MHz processor, 16 Megabyte memory, 3.2 Gigabyte storage,
            1 10 Megabit Ethernet and 1 v.90 Modem port; web server - intranet only;
            mail server - POP/IMAP Internal and SMTP External.  Security Features
            include:  SMTP, FTP, HTTP, DNS LAN to Internet proxies; stateful filters -
            all TCP and UDP protocols; no firewall configuration required.
            Administrative Interface:  Web-based GUI only accessible from Local LAN.
            Recommended number of users - up to 8

FB-ISDN     FoxBox ISDN                                                                            $4,400
            Connection type:  Dial-on-Demand
            Includes:  200 MHz processor, 16 Megabyte memory, 3.2 Gigabyte storage, 1
            10 Megabit Ethernet and 1 128Kbps ISDN port; web server - intranet/optional
            internet; mail server - POP/IMAP Internal and SMTP External.  Security
            Features include:  SMTP, FTP, HTTP, DNS LAN to Internet proxies, optional
            Internet to LAN proxies; stateful filters - all TCP and UDP protocols; no
            firewall configuration required.  Administrative Interface:  Web-based GUI
            only accessible from Local LAN.
            Recommended number of users - up to 25

FB-56K      FoxBox56K                                                                              $5,500
            Connection type:  Dedicated
            Includes:  200MHz processor, 16 Megabyte memory, 3.2 Gigabyte storage, 1
            10 Megabit Ethernet and 1 56Kbps Sync Serial port; web server -
            intranet/internet; mail server - POP/IMAP Internal and SMTP External.
            Security Features include:  SMTP, FTP, HTTP, DNS LAN to Internet proxies,
            SMTP, FTP, HTTP, DNS Internet to LAN proxies; stateful filters - all TCP
            and UDP protocols; Administrative Interface:  Web-based GUI only
            accessible from Local LAN.
            Recommended number of users - up to 20

FB-T1       FoxBox T1                                                                               $7,100
            Connection type:  Dedicated
            Includes:  200MHz processor, 16 Megabyte memory, 3.2 Gigabyte storage, 1
            10 Megabit Ethernet and 1 T1/E1 Sync Serial port; web server -
            intranet/internet; mail server - POP/IMAP Internal and SMTP External.
            Security Features include:  SMTP, FTP, HTTP, DNS LAN to Internet proxies,
            SMTP, FTP, HTTP, DNS Internet to LAN proxies; stateful filters - all TCP
            and UDP protocols; Administrative Interface:  Web-based GUI only
            accessible from Local LAN.
            Recommended number of users - up to 400

FB-S2E      FoxBox Secure 2E                                                                        $4,100
            Connection type:  Dedicated
            Includes:  200MHz processor, 16 Megabyte memory, 3.2 Gigabyte storage, 2 10 Megabit
            Ethernet port; web server - intranet/internet; mail server - POP/IMAP Internal and SMTP
            External.  Security Features include:  SMTP, FTP, HTTP, DNS LAN to Internet proxies,
            SMTP, FTP, HTTP, DNS Internet to LAN proxies; stateful filters - all TCP and UDP
            protocols; Administrative Interface:  Web-based GUI only accessible from Local LAN.
            Recommended number of users - N/A
</TABLE>

<PAGE>

                                INTERNET SOLUTION SERVER - "OPTIONS" PRICE LIST
                                             Effective:  10/98

                                             Available Upgrade
<TABLE>
<CAPTION>

Name                       Version     Part Number               Description            Notes/Requirements       Price

<S>                        <C>       <C>                   <C>                          <C>                       <C>
FoxBox SCSI Tape           1.1       FB-UN-STAPE-1.1       Includes Adaptec 1520 SCSI    Works with all FoxBox    $2,522
Backup                                                     Controller, HP Superstore     models
                                                           8e External Tape Drive, SCSI
                                                           Cable, and Backup Software
                                                           version 1.1.  For use with all
                                                           FoxBox models.

FoxBox Fast SCSI           1.0       FB-UN-FSSYS-1.0       Includes Adaptec 2940         Works with all FoxBox    $1,864
Hard Drive System                                          Busmastered SCSI Controller,  models.
                                                           Seagate 9.1 Gig internal
                                                           SCSI II Wide hard drive
                                                           and cable.

FoxBox Extra 9.1           1.0       FB-UN-SCSID-9.1       Includes Seagate 9.1 Gig      Requires FB-UN-SSYS-     $1,286
Gig SCSI Hard Drive                                        internal SCSI II Wide         1.0 or later.
                                                           hard drive

</TABLE>

<PAGE>

                                                  Software Applications

<TABLE>
<CAPTION>

Name                       Version     Part Number                Description                 Notes/Requirements        Price
<S>                         <C>      <C>                   <C>                               <C>                         <C>
FoxBox Mail                 1.1      FB-DED-MAILA-1.1      Makes the FoxBox email system      Works only with Dedicated  $ 395
Archive Module                                             compliant with the SEC email       FoxBox models (56K, T1,
                                                           archiving requirements.            S2E)
                                                           Archives all inbound and
                                                           outbound mail.

FoxBox Advanced            1.1      FB-UN-AACL-1.1         Allows the FoxBox Administrator    Works with all FoxBox      $ 395
Access Control                                             to block certain web sites from    models.
                                                           access by computer/users on the
                                                           LAN.  Also allows FoxBox
                                                           Administrator to force users to
                                                           authenticate (i.e., login) before
                                                           they access the Internet with a
                                                           web browser.

FoxBox Advanced           1.0     FB-DED-ANAT-1.0          Allows the FoxBox Administrator    Works only with            $ 395
NAT Control                                                to create very specific and        Dedicated FoxBox models
                                                           flexible Network Address           (56K, T1, S2e).  Adds
                                                           Translation NAT) rules that work
                                                           seemlessly with the built-in
                                                           FoxBox firewall.

FoxBox VPN               1.0     FB-DED-VPN-1.0            Allows the FoxBox Administrator    Works only with            $ 595
                                                           to create an encrypted, virtually  Dedicated FoxBox models
                                                           dedicated connection between any   (56K, T1, 52e).  Adds
                                                           two Foxboxes running the           packet overhead to network
                                                           VPN 1.0 software.                  traffic between FoxBoxes
                                                                                              participating in the VPN due
                                                                                              to encryption.

FoxBox DHCP             1.0     FB-UN-DHCP-1.0             Allows the FoxBox Administrator    Works on all FoxBox          N/C
                                                           to manage and assign IP addresses  models.  Ships as standard
                                                           centrally from the FoxBox using    software with FoxBox A1
                                                           the standard DHCP protocol.        Version 1.5.
</TABLE>

<PAGE>

                              Maintenance Agreement

<TABLE>
<CAPTION>

Name                       Version     Part Number                Description                 Notes/Requirements        Price

<S>                    <C>             <C>                 <C>                               <C>                         <C>

NetWolves              1.0             FB-UN-NETS-1.0      NetWolves Enchanced Technical     Renewable annually. If      14% of the
Enchanced                                                  Support (NETS) agreement          purchased at the same       FoxBox
Technical                                                  provides 24x7 12 month            time as the system,         list price.
Support                                                    coverage by telephone, e-mail     maintenance starts
(NETS)                                                     and remote access.  Covers:       after 30 day warranty
Agreement                                                  advanced hardware replacement     expires.
                                                           due to hardware failure.  Minor
                                                           software upgrades for the contract
                                                           term for purchased systems.  Access
                                                           to special areas of the Web site.
</TABLE>

<PAGE>

                                   APPENDIX E

                                RESELLER PROGRAM

     NetWolves  Reseller  Program (the Program) is designed to give resellers of
its  products  a  discount  off of the  established  list  price  determined  by
NetWolves  in  order  to  quickly  penetrate  the  market.   Various  levels  of
distributorships  have been established to accomplish this. All distributorships
are given on a non-exclusive bases, except as provided in the Agreement to which
this is attached,  although  resellers  below the Master  Distributor  level are
required  to select a Master  Distributor  through  whom all of their  sales are
ordered and processed. All participants in the Program must enter into a written
agreement with NetWolves which  specifically  sets forth all of the requirements
and obligations.  The following is a list of the current levels of participation
in the Program:

1.      Exclusive Master Distributor

     (a)  Commit to the purchase of 1,500, 3,000, 10,000,  20,000,  30,000 units
          of product in years 1,2,3,4 and 5  respectively  and have  established
          national distribution  channels. All other resellers may order through
          the  Exclusive  Master  Distributor  in order  to  obtain  the  listed
          discount off list price.

     (b)  Platinum  Level  Reseller/Distributor:  Sell a minimum  volume of 1000
          Units of product per year and receive 40% off list.

     (c)  Gold  Level  Reseller/Distributor:  Sell a minimum  volume of  501-999
          Units of Product per year and receive 35% off list.

     (d)  Silver Level  Reseller/Distributor:  Sell a minimum  volume of 250-500
          Units of product per year and receive 30% off list.

     (e)  Bronze  Level  Reseller/Distributor:  Sell a  minimum  volume of 1-249
          Units of Product per year and receive 25% off list.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]