Document:

<PAGE>

                                                                 Exhibit 10.1

                              STOCK PURCHASE AGREEMENT

                                      BETWEEN

                    INTERWAVE COMMUNICATIONS INTERNATIONAL, LTD.

                                        AND

                                THE SHAREHOLDERS OF

                           MICROCELLULAR SYSTEMS LIMITED

                                   JUNE 30, 2000

<PAGE>

                                  TABLE OF CONTENTS
<TABLE>

<S>         <C>                                                            <C>
ARTICLE 1   CONSTRUCTION AND DEFINITIONS . . . . . . . . . . . . . . . . . 1

      1.1   CONSTRUCTION . . . . . . . . . . . . . . . . . . . . . . . . . 1

      1.2   DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . 1

ARTICLE 2   SALE AND TRANSFER OF SHARES; CLOSING . . . . . . . . . . . . . 6

      2.1   SALE OF SHARES . . . . . . . . . . . . . . . . . . . . . . . . 6

      2.2   AGGREGATE PURCHASE PRICE . . . . . . . . . . . . . . . . . . . 6

      2.3   PAYMENT OF AGGREGATE PURCHASE PRICE. . . . . . . . . . . . . . 6

      2.4   TREATMENT OF OPTIONS . . . . . . . . . . . . . . . . . . . . . 8

      2.5   CLOSING. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

      2.6   CLOSING DELIVERIES . . . . . . . . . . . . . . . . . . . . . . 9

      2.7   ADJUSTMENT PROCEDURE . . . . . . . . . . . . . . . . . . . . . 10

      2.8   EMPLOYEE Retention plan. . . . . . . . . . . . . . . . . . . . 12

ARTICLE 3   REPRESENTATIONS AND WARRANTIES OF SELLERS. . . . . . . . . . . 12

      3.1   ORGANIZATION, GOOD STANDING, OWNERSHIP OF SUBSIDIARIES, AND
            CONVEYANCE OF OWNERSHIP. . . . . . . . . . . . . . . . . . . . 12

      3.2   ENFORCEABILITY; NO CONFLICT. . . . . . . . . . . . . . . . . . 13

      3.3   CAPITALIZATION . . . . . . . . . . . . . . . . . . . . . . . . 14

      3.4   FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . 14

      3.5   BOOKS AND RECORDS. . . . . . . . . . . . . . . . . . . . . . . 15

      3.6   ACCOUNTS RECEIVABLE. . . . . . . . . . . . . . . . . . . . . . 15

      3.7   INVENTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . 15

      3.8   NO UNDISCLOSED LIABILITIES . . . . . . . . . . . . . . . . . . 15

      3.9   NO MATERIAL ADVERSE CHANGE . . . . . . . . . . . . . . . . . . 15

      3.10  ABSENCE OF CERTAIN CHANGES AND EVENTS. . . . . . . . . . . . . 16

      3.11  LEASE ARRANGEMENTS; REAL PROPERTY. . . . . . . . . . . . . . . 16

      3.12  CONDITION AND SUFFICIENCY OF TANGIBLE ASSETS . . . . . . . . . 17

      3.13  INTELLECTUAL PROPERTY. . . . . . . . . . . . . . . . . . . . . 17

      3.14  DATE-LIMITED SOFTWARE; EURO COMPLIANCE . . . . . . . . . . . . 18

      3.15  CONTRACTS; NO DEFAULTS . . . . . . . . . . . . . . . . . . . . 18

      3.16  CUSTOMERS AND SUPPLIERS. . . . . . . . . . . . . . . . . . . . 20

      3.17  INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . 20

                                    -i-
<PAGE>

      3.18  TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

      3.19  EMPLOYEE BENEFITS. . . . . . . . . . . . . . . . . . . . . . . 21

      3.20  LABOR RELATIONS; EMPLOYMENT LAW. . . . . . . . . . . . . . . . 22

      3.21  ENVIRONMENTAL, HEALTH, AND SAFETY MATTERS. . . . . . . . . . . 22

      3.22  COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL
            AUTHORIZATIONS . . . . . . . . . . . . . . . . . . . . . . . . 23

      3.23  LEGAL PROCEEDINGS; ORDERS. . . . . . . . . . . . . . . . . . . 23

      3.24  RELATIONSHIPS WITH RELATED PERSONS . . . . . . . . . . . . . . 24

      3.25  BROKERS OR FINDERS . . . . . . . . . . . . . . . . . . . . . . 24

      3.26  DISCLOSURE . . . . . . . . . . . . . . . . . . . . . . . . . . 24

      3.27  ADDITIONAL REPRESENTATIONS AND WARRANTIES. . . . . . . . . . . 24

ARTICLE 4   REPRESENTATIONS AND WARRANTIES OF BUYER. . . . . . . . . . . . 26

      4.1   ORGANIZATION . . . . . . . . . . . . . . . . . . . . . . . . . 26

      4.2   ENFORCEABILITY; NO CONFLICT. . . . . . . . . . . . . . . . . . 27

      4.3   PROCEEDINGS. . . . . . . . . . . . . . . . . . . . . . . . . . 27

      4.4   BROKERS OR FINDERS . . . . . . . . . . . . . . . . . . . . . . 27

ARTICLE 5   COVENANTS OF SELLERS BEFORE CLOSING. . . . . . . . . . . . . . 28

      5.1   ACCESS AND INVESTIGATION . . . . . . . . . . . . . . . . . . . 28

      5.2   OPERATION OF THE BUSINESSES OF THE ACQUIRED COMPANIES. . . . . 28

      5.3   NEGATIVE COVENANT. . . . . . . . . . . . . . . . . . . . . . . 28

      5.4   REQUIRED APPROVALS . . . . . . . . . . . . . . . . . . . . . . 28

      5.5   NOTIFICATION . . . . . . . . . . . . . . . . . . . . . . . . . 29

      5.6   PAYMENT OF INDEBTEDNESS BY RELATED PERSONS . . . . . . . . . . 29

      5.7   NO NEGOTIATION . . . . . . . . . . . . . . . . . . . . . . . . 29

ARTICLE 6   COVENANTS OF BUYER BEFORE CLOSING. . . . . . . . . . . . . . . 30

      6.1   REQUIRED APPROVALS . . . . . . . . . . . . . . . . . . . . . . 30

ARTICLE 7   CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO CLOSE. . . . . . 30

      7.1   ACCURACY OF REPRESENTATIONS. . . . . . . . . . . . . . . . . . 30

      7.2   SELLERS' PERFORMANCE . . . . . . . . . . . . . . . . . . . . . 30

      7.3   CONSENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

      7.4   ADDITIONAL DOCUMENTS . . . . . . . . . . . . . . . . . . . . . 30

      7.5   NO PROCEEDINGS . . . . . . . . . . . . . . . . . . . . . . . . 31

                                    -ii-
<PAGE>

      7.6   NO CLAIM REGARDING EQUITY OWNERSHIP OR SALE PROCEEDS . . . . . 31

      7.7   NO PROHIBITION . . . . . . . . . . . . . . . . . . . . . . . . 31

ARTICLE 8   CONDITIONS PRECEDENT TO SELLERS' OBLIGATION TO CLOSE . . . . . 31

      8.1   ACCURACY OF REPRESENTATIONS. . . . . . . . . . . . . . . . . . 31

      8.2   BUYER'S PERFORMANCE. . . . . . . . . . . . . . . . . . . . . . 31

      8.3   CONSENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

      8.4   ADDITIONAL DOCUMENTS . . . . . . . . . . . . . . . . . . . . . 32

      8.5   NO PROHIBITION . . . . . . . . . . . . . . . . . . . . . . . . 32

ARTICLE 9   TERMINATION. . . . . . . . . . . . . . . . . . . . . . . . . . 32

      9.1   TERMINATION EVENTS . . . . . . . . . . . . . . . . . . . . . . 32

      9.2   EFFECT OF TERMINATION. . . . . . . . . . . . . . . . . . . . . 32

ARTICLE 10  INDEMNIFICATION; REMEDIES. . . . . . . . . . . . . . . . . . . 33

      10.1  SURVIVAL, RIGHT TO INDEMNIFICATION NOT AFFECTED BY KNOWLEDGE;
            WAIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

      10.2  INDEMNIFICATION BY SELLERS . . . . . . . . . . . . . . . . . . 33

      10.3  INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYER. . . . . . . . 34

      10.4  TIME LIMITATIONS . . . . . . . . . . . . . . . . . . . . . . . 35

      10.5  LIMITATIONS ON AMOUNT. . . . . . . . . . . . . . . . . . . . . 35

      10.6  RIGHT OF SETOFF. . . . . . . . . . . . . . . . . . . . . . . . 36

      10.7  PROCEDURE FOR INDEMNIFICATION - DEFENSE OF THIRD-PARTY CLAIMS. 36

ARTICLE 11  TAX MATTERS. . . . . . . . . . . . . . . . . . . . . . . . . . 36

      11.1  INDEMNIFICATION OF SELLERS . . . . . . . . . . . . . . . . . . 36

      11.2  INDEMNIFICATION OF BUYER . . . . . . . . . . . . . . . . . . . 36

      11.3  INDEMNIFICATION PROCESS. . . . . . . . . . . . . . . . . . . . 37

      11.4  TIMING OF PAYMENT; CHARACTERIZATION. . . . . . . . . . . . . . 37

      11.5  TRANSACTIONAL TAXES. . . . . . . . . . . . . . . . . . . . . . 37

      11.6  TAX ELECTIONS. . . . . . . . . . . . . . . . . . . . . . . . . 37

      11.7  TAX RECORDS. . . . . . . . . . . . . . . . . . . . . . . . . . 38

      11.8  MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . 38

ARTICLE 12  SELLERS' REPRESENTATIVE. . . . . . . . . . . . . . . . . . . . 38

      12.1  APPOINTMENT. . . . . . . . . . . . . . . . . . . . . . . . . . 38

                                    -iii-
<PAGE>

      12.2  LIMITATION ON LIABILITY; INDEMNIFICATION . . . . . . . . . . . 39

      12.3  RELIANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

      12.4  DELEGATION; SUCCESSOR. . . . . . . . . . . . . . . . . . . . . 39

ARTICLE 13  GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . 39

      13.1  EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

      13.2  PUBLIC ANNOUNCEMENTS . . . . . . . . . . . . . . . . . . . . . 40

      13.3  CONFIDENTIALITY. . . . . . . . . . . . . . . . . . . . . . . . 40

      13.4  NOTICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

      13.5  FURTHER ASSURANCES . . . . . . . . . . . . . . . . . . . . . . 42

      13.6  SCHEDULES. . . . . . . . . . . . . . . . . . . . . . . . . . . 42

      13.7  ENTIRE AGREEMENT AND MODIFICATION. . . . . . . . . . . . . . . 42

      13.8  SEVERABILITY . . . . . . . . . . . . . . . . . . . . . . . . . 42

      13.9  ASSIGNMENTS, SUCCESSORS, AND NO THIRD PARTY RIGHTS . . . . . . 42

      13.10 WAIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

      13.11 ARBITRATION. . . . . . . . . . . . . . . . . . . . . . . . . . 43

      13.12 GOVERNING LAW. . . . . . . . . . . . . . . . . . . . . . . . . 43

      13.13 COUNTERPARTS . . . . . . . . . . . . . . . . . . . . . . . . . 43
</TABLE>

                                    -iv-
<PAGE>

<TABLE>

EXHIBITS
<S>                             <C>
Exhibit 2.4. . . . . . . . . . . . . . . Option Cancellation and Assumption Agreement

Exhibit 2.6(a)(ii) . . . . . . .Seller's Release (Delivered on Payment After Closing)

Exhibit 2.6(a)(v). . . . . . . . . . . . . . . . . . . . . Non-competition Agreements

Exhibit 2.6(a)(vi) . . . . . . . . . . . . . . . . . . . . . . .Employment Agreements

Exhibit 2.6(a)(viii) . . . . . . . . . . . . . . . . . . Seller's Closing Certificate

Exhibit 2.6(b)(i). . . . . . . . . . . . . . . . . . . . .Buyer's Closing Certificate

Exhibit 2.6(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . Escrow Agreement

Exhibit 2.9  . . . . . . . . . . . . . . . Seller's Release (Delivered After Payment)

Exhibit 7.4(a) . . . . . . . . . . . . . . . . . . . . . .Opinion of Sellers' Counsel

SELLERS' DISCLOSURE SCHEDULE

Part 2.3 . . . . . . . . . . . . . . . . . . . . . Aggregate Purchase Price Breakdown

Part 2.4 . . . . . . . . . . . . . . . . Option Cancellation and Assumption Breakdown

Part 3.1 . . . . . . . . . . Copies of Organizational Documents of Acquired Companies

Part 3.2(b). . . . . . . . . . . . . . . . . Consents and Governmental Authorizations

Part 3.2(c). . . . . . . . . . . . . . . . . . . . . . . . .Exceptions to No Conflict

Part 3.3 . . . . . . . . . . . . . . . . . . . . . . .Fully-Diluted Capital Structure

Part 3.6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accounts Receivable

Part 3.8 . . . . . . . . . . . . . . . . . . .Exceptions to Balance Sheet Liabilities

Part 3.10. . . . . . . . . . . . . . . . . .Exceptions to Ordinary Course of Business

Part 3.11. . . . . . . . . . . . . . . . List of Lease Agreements and Principal Terms

Part 3.13(b) . . . . . . . . . . . . . . .List of Intellectual Property and Royalties

Part 3.13(c) . . . . . . . . . . . . . . . . . . . Exceptions to Free and Clear Title

                                    -v-
<PAGE>

Part 3.15(a) . . . . . . . . . . . . . . . . . .List of Contracts and Principal Terms

Part 3.15(b) . . . . . . . . . . . . . . . . Exceptions to Effectiveness of Contracts

Part 3.16. . . . . . . . . . . . . . . . . . . . . . . . .Key Customers and Suppliers

Part 3.17. . . . . . . . . . .List of Insurance Policies, Principal Terms, and Claims

Part 3.18. . . . . . . . . . . . . . . . . . . . . .Exceptions to Tax Representations

Part 3.19(a) . . . . . . . . . . . . .Employee Benefits Plans and Similar Obligations

Part 3.19(b) . . . . . . . . . . . . . . . . .List of all Employees and Other Workers

Part 3.19(d) . . . . . . . . . . . . . . . . . . Exceptions to Employment Obligations

Part 3.20(b) . . . . . . . . . . . . . . . . . . . . Collective Bargaining Agreements

Part 3.21. . . . . . . . . . . . . . . . . . . Exceptions to Environmental Compliance

Part 3.22(a) . . . . . . . . . . . . . . . . . . . . . Exceptions to Legal Compliance

Part 3.22(b) . . . . . . . . . . . . . . . . . . .List of Governmental Authorizations

Part 3.23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Proceedings

Part 3.27. . . . . . . . . . . . . . . . . .Additional Representations and Warranties

BUYER'S SCHEDULES

Schedule 4.2(b). . . . . . . . . . . . . . . Consents and Governmental Authorizations

Schedule 4.2(c). . . . . . . . . . . . . . . . . . . . . . .Exceptions to No Conflict
</TABLE>
                                    -vi-
<PAGE>

                              STOCK PURCHASE AGREEMENT

       This Stock Purchase Agreement (the "AGREEMENT") is made as of JUNE 30,
2000, by and among INTERWAVE COMMUNICATIONS INTERNATIONAL, LTD., A BERMUDA
corporation ("BUYER"), and the Persons identified on the attached Schedule of
Sellers ("SELLERS").

                                PRELIMINARY STATEMENT

       Sellers desire to sell, and Buyer desires to purchase, all of the
issued shares at closing (the "SHARES") of MICROCELLULAR SYSTEMS LIMITED, a
company organized under the laws of Ireland (the "COMPANY"), on the terms set
forth in this Agreement.

                                      AGREEMENT

       The parties, intending to be legally bound, agree as follows:

                                      ARTICLE 1

                             CONSTRUCTION AND DEFINITIONS

1.1    CONSTRUCTION

       Any reference in this Agreement to an "Article," "Section" or "Part"
refers to the corresponding Article, Section or Part of this Agreement or the
Disclosure Schedules, unless the context indicates otherwise.  The headings
of Articles and Sections are provided for convenience only and should not
affect the construction or interpretation of this Agreement.  All words used
in this Agreement should be construed to be of such gender or number as the
circumstances require.  The terms "include" or "including" indicate examples
of a foregoing general statement and not a limitation on that general
statement. Any reference to a statute refers to the statute, any amendments
or successor legislation, and all regulations promulgated under or
implementing the statute, as in effect at the relevant time.  Any reference
to a Contract or other document as of a given date means the Contract or
other document as amended, supplemented and modified from time to time.

1.2    DEFINITIONS

       For the purposes of this Agreement, the following terms and variations
on them have the meanings specified in this Section:

       "ACCOUNTS RECEIVABLE" is defined in Section 3.6.

       "ACQUIRED COMPANY" means each of the following (i) the Company,
together with its trade representative office in Beijing, China, (ii)
Microcellular Systems Ireland Limited, an Irish corporation, (iii)
Microcellular Systems Limited (U.K.), a United Kingdom corporation, and (iv)
Microcellular Systems USA, Inc., a California corporation (collectively
referred to as the "Acquired Companies").

                                    -1-
<PAGE>

       "ADJUSTMENT AMOUNT" is defined in Section 2.7(d).

       "ADVERSE CONSEQUENCE" means any Liability, loss, damage (including
incidental and consequential damages), claim, cost, deficiency, diminution of
value, or expense (including costs of investigation and defense, penalties,
and reasonable legal fees and costs), whether or not involving a third-party
claim.

       "AGGREGATE PURCHASE PRICE" is defined in Section 2.2.

       "ANCILLARY AGREEMENTS" is defined in Section 2.6(c).

       "BALANCE SHEET" is defined in Section 3.4.

       "BEST EFFORTS" means the efforts that a prudent Person desirous of
achieving a result would use in similar circumstances to achieve that result
as expeditiously as possible.

       "BUYER" is defined in the first paragraph of this Agreement.

       "BUYER INDEMNITEES" is defined in Section 10.2.

       "CLOSING" means the consummation and completion of the purchase and
sale of the Shares.

       "CLOSING BALANCE SHEET" is defined in Section 2.7(b).

       "CLOSING DATE" means the date on which the Closing actually takes
place.

       "COMPANY" is defined in the Preliminary Statement.

       "COMPANY CONTRACT" means any Contract (a) under which an Acquired
Company has or may acquire rights, (b) under which an Acquired Company is or
may become subject to Liability, or (c) by which an Acquired Company or any
of its assets is or may become bound.

       "CONSENT" means any approval, consent, ratification, waiver, or other
authorization.

       "CONTEMPLATED TRANSACTIONS" means all of the transactions to be
carried out in accordance with this Agreement, including the purchase and
sale of the Shares, the performance by the parties of their other obligations
under this Agreement, and the execution, delivery, and performance of the
Ancillary Agreements.

       "CONTRACT" means any contract, agreement, commitment, understanding,
lease, license, franchise, warranty, guaranty, mortgage, note, bond, or other
instrument or consensual obligation (whether written or oral and whether
express or implied) that is legally binding.

       "CONTRAVENE" - an act or omission would "Contravene" something if, as
the context requires:

              (i)    the act or omission would conflict with it, violate it,
result in a breach or violation of or failure to comply with it, or
constitute a default under it;

                                    -2-
<PAGE>

              (ii)   the act or omission would give any Governmental Body or
other Person the right to challenge, revoke, withdraw, suspend, cancel,
terminate, or modify it, to exercise any remedy or obtain any relief under
it, or to declare a default or accelerate the maturity of any obligation
under it; or

              (iii)  the act or omission would result in the creation of an
Encumbrance on the stock or assets of an Acquired Company.

       "DEVICES" is defined in Section 3.14(a).

       "DISCLOSURE SCHEDULE" means the disclosure schedule delivered by
Sellers to Buyer concurrently with the execution and delivery of this
Agreement.

       "EMPLOYEES" is defined in Section 2.6(a)(v).

       "EMPLOYEE SELLERS" means Michael Fitzgerald, Monte Egeland, Ian
Walter, David Jones, Alastair Froggett, Guy Waugh, Glyn Turner, Dan Lambert,
Denis Herlihy, Tony Dunne, Bart Kane, Sharon Rovario, Pete Crawford, James
Kempton, Dan Hawkinson, Roger Johnson, Suresh Koppolu, Carol Zhang and all
other Sellers employed by an Acquired Company at the closing.

       "EMPLOYEE SHAREHOLDINGS" means the total number of shares of the
Company held by all Employee Sellers on the Closing Date.

       "ENCUMBRANCE" means any charge, claim, mortgage, servitude, easement,
right of way, community or other marital property interest, covenant,
equitable interest, lease or other possessory interest, lien, option, pledge,
security interest, preference, priority, right of first refusal, or similar
restriction.

       "ESCROW ACCOUNT" is defined in Section 2.3 (c).

       "ESCROW AGENT" is defined in Section 2.3(c).

       "ESCROW AGREEMENT" is defined in Section 2.6(c).

       "FACILITY" means any real property or tangible personal property
interest owned or operated by an Acquired Company, including the real
property and tangible personal property used or leased by an Acquired Company.

       "GOVERNMENTAL AUTHORIZATION" means any Consent, license, permit or
registration issued, granted, given or otherwise made available by or under
the authority of any Governmental Body or pursuant to any Legal Requirement.

       "GOVERNMENTAL BODY" means any:

              (i)    nation, region, state, county, city, town, village,
district, or other jurisdiction;

                                    -3-

<PAGE>

              (ii)   governmental or quasi-governmental authority of any
nature (including any governmental agency, branch, department, or other
entity and any court or other tribunal);

              (iii)  body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, policy, regulatory, or
taxing authority or power of any nature; and

              (iv)   official of any of the foregoing.

       "INTELLECTUAL PROPERTY" is defined in Section 3.13(a).

       "INTERIM BALANCE SHEET" is defined in Section 3.4.

       "KNOWLEDGE" -- (i) an individual will be considered to have
"Knowledge" of a fact or matter if the individual is actually aware of the
fact or matter or a prudent individual could be expected to discover or
otherwise become aware of the fact or matter in the course of conducting a
reasonably comprehensive investigation concerning the existence of the fact
or matter; (ii) an entity will be considered to have "Knowledge" of a fact or
matter if any individual who is serving, or who has at any time served, as a
director, manager or senior executive, officer, partner, executor, or trustee
of that entity (or in similar capacity) has, or at any time had, Knowledge of
the fact or matter; and (iii) Sellers will be considered to have "Knowledge"
of a fact or matter if an Acquired Company or any Seller has Knowledge of the
fact or matter.

       "LEGAL REQUIREMENT" means any constitution, law, statute, treaty,
rule, regulation, ordinance, binding case law or principle of common law,
notice, approval or Order of any Governmental Body, and any Contract with any
Governmental Body relating to compliance with any of the foregoing.

       "LIABILITIES" includes liabilities or obligations of any nature,
whether known or unknown, whether absolute, accrued, contingent, choate,
inchoate, or otherwise, whether due or to become due, and whether or not
required to be reflected on a balance sheet.

       "MATERIAL ADVERSE EFFECT" - something would be considered to have a
"Material Adverse Effect" on an Acquired Company if it (i) materially
adversely affects the financial or other condition, results of operations,
assets (considered in the aggregate), Liabilities, equity, business or
prospects of the Acquired Company, (ii) materially impedes the ongoing
operations of the Acquired Company, or (iii) significantly adversely affects
a material asset of the Acquired Company.

       "NON-EMPLOYEE SELLERS" - means Andrew O'Rorke, Declan Hogan, Rionach
Ui Ogain, Paul McKeon, Fiona McKeon, Hogan & Associates, Pearse Boyce, Robert
Dennison, Thomas Cunningham, Martin Quaid, Rory A. Stokes, Innovapp, and
Shannon Free Airport Development Company Limited.

       "ORDER" means any order, injunction, judgment, decree, ruling,
assessment or arbitration award of any Governmental Body or arbitrator.

       "ORDINARY COURSE OF BUSINESS" refers to actions taken in an Acquired
Company's normal operation, consistent with its past practice and causing no
Material Adverse Effect.

                                    -4-
<PAGE>

       "ORGANIZATIONAL DOCUMENT" means any charter, articles, bylaws,
certificate, statement, statutes, or similar document adopted, filed or
registered in connection with the creation, formation, or organization of an
entity, and any Contract among all equity holders, partners or members of an
entity.

       "PERSON" refers to an individual or an entity, including a
corporation, share company, limited liability company, partnership, trust,
association, Governmental Body or any other body with legal personality
separate from its equity holders or members.

       "PROCEEDING" means any action, arbitration, audit, examination,
investigation, hearing, litigation, or suit (whether civil, criminal,
administrative, judicial or investigative, whether formal or informal, and
whether public or private) commenced, brought, conducted, or heard by or
before, or otherwise involving, any Governmental Body or arbitrator.

       "PRO FORMA NUMBER OF SHARES OF COMMON STOCK" means the number of
shares of common stock calculated, as of the closing date, as a result of
valuing the shares of stock held by Shannon Development as five percent (5%)
of the total shares of the Company and the remaining shares of common stock
outstanding as ninety five percent (95%) of the shares of common stock of the
Company.

       "PROPYLON" means Propylon Limited, incorporated in Ireland under
Companies Registration Office No. 315946.

       "RELATED PERSON" means, with respect to a particular Person, any other
Person directly or indirectly controlling, controlled by or under common
control with, such Person and, with respect to an individual, any other
individual that is a member of the individual's family (by blood, marriage or
adoption), a member of the individual's household, an entity in which the
individual participates in management, or an employee or employer of the
individual.

       "REPRESENTATIVE" means, with respect to a particular Person, any
director, officer, employee, agent, consultant, advisor, legal counsel,
accountant, or other representative of that Person.

       "SELLERS" is defined in the first paragraph of this Agreement.

       "SELLERS' RELEASES" is defined in Section 2.6(a)(ii).

       "SELLERS' REPRESENTATIVE" is defined in Section 12.1.

       "SHARES" is defined in the Preliminary Statement.

       "SSAP" means all applicable Statements of Standard Accounting Practice
issued by the Accounting Standards Board.

        "TAX" OR "TAXES" means all taxes, charges, fees, duties (including
customs duties), levies or other assessments, including income, gross
receipts, net proceeds, alternative or add-on minimum, ad valorem, turnover,
real and personal property (tangible and intangible), sales, use, franchise,
excise, value added, stamp, leasing, lease, user, transfer, payroll,
environmental,

                                    -5-
<PAGE>

capital stock, disability, employee's income withholding, other withholding,
that are imposed by any Governmental Body, and including any interest,
penalties or additions to tax attributable thereto.

       "TAX RETURN" means any report, return or other information required to
be supplied to a Governmental Body in connection with any Taxes.

       "THREATENED" - an action or matter would be considered to have been
"Threatened" if a demand or statement has been made (whether orally or in
writing) or a notice has been given (whether orally or in writing), or any
other event has occurred or any other circumstances exist, that would lead a
prudent Person to conclude that such action or matter is likely to be
asserted, commenced, taken or otherwise pursued in the future.

                                     ARTICLE 2

                        SALE AND TRANSFER OF SHARES; CLOSING

2.1    SALE OF SHARES

       Subject to the terms and conditions of this Agreement, at the Closing,
Sellers will sell and transfer the Shares to Buyer, and Buyer will purchase
the Shares from Sellers.

2.2    AGGREGATE PURCHASE PRICE

       In exchange for the Shares and the fulfillment by Sellers of the
obligations contained herein, Buyer shall pay to Sellers an aggregate
purchase price (the "AGGREGATE PURCHASE PRICE") consisting of the following:

       (a)    an amount equal to US$10,000,000, (the "INITIAL PURCHASE
PRICE"), payable in:

              (i)    555,556 newly-issued and unregistered shares of Buyer's
common stock, representing US$5,000,000 calculated at a fixed price of
US$9.00 per share (the "STOCK CONSIDERATION");

              (ii)   US$5,000,000 in cash, reduced by the Adjustment Amount
and reduced by any indemnification pursuant to Article 10 and reduced by any
amount not paid to Employee Sellers who are not employed by an Acquired
Company on the date of payment under paragraph 2.3 (f) (the "CASH
CONSIDERATION"); and

       (b)    an amount up to US$2,500,000, contingent upon the Acquired
Companies meeting certain performance targets (the "ADDITIONAL CASH
CONSIDERATION").

2.3    PAYMENT OF AGGREGATE PURCHASE PRICE

       The Aggregate Purchase Price shall be payable as follows:

       (a)    At Closing the Sellers shall provide a Certificate to the
Buyer setting out the actual number of shares issued to each Seller (the
"Closing Certificate") and as soon as practicable after

                                    -6-
<PAGE>

the Closing, Buyer shall deliver to each Seller a stock certificate
representing such Seller's portion of the Stock Consideration, as set forth
in PART 2.3;

       (b)    within 5 days after the Closing, the sum of US$1,250,000 shall
be paid to Sellers by wire transfer of immediately available funds to Sellers
in the amounts set forth opposite their respective names in PART 2.3 and to
such bank accounts as designated in writing prior to the Closing;

       (c)    within 5 days after the Closing, the sum of US$3,750,000 shall
be deposited with Norwest Bank Minnesota, in Minneapolis, Minnesota (the
"Escrow Agent") by wire transfer to an account specified by the Escrow Agent
(the "Escrow Account");

       (d)    in accordance with the Escrow Agreement and subject to the
Adjustment Amount and any indemnification pursuant to Article 10, Buyer shall
pay by wire transfer of immediately available funds the following amounts to
the Sellers as set forth in Part 2.3:

              (i)    within 15 days after the later of (i) the delivery by
Buyer to Sellers' Representative of the Closing Balance Sheet, or (ii) the
resolution of any disputes with respect thereto pursuant to Section 2.7(c),
Buyer shall pay to Sellers the sum of US$1,250,000, less the Adjustment
Amount;

              (ii)   Buyer shall pay the remaining Cash Consideration, less
any remaining portion of the Adjustment Amount, to Sellers as follows:

                     (A)    with respect to Non-Employee Sellers: such
Seller's pro rata portion of the remaining Cash Consideration, shall be paid
within 15 days after the later of (i) the delivery by Buyer to Sellers'
Representative of the Closing Balance Sheet, or (ii) the resolution of any
disputes with respect thereto pursuant to Section 2.7(c); and

                     (B)    with respect to Employee Sellers: 50% of such
Employee Seller's pro rata portion of the remaining Cash Consideration shall
be paid 12 months after the Closing, and the other 50% of such Employee
Seller's pro rata portion of the remaining Cash Consideration shall be paid
18 months after the Closing; and

                                    -7-
<PAGE>

       (e)    Prior to August 31, 2001, Buyer shall pay to Sellers a pro rata
portion of the Additional Cash Consideration, according to each Seller's pro
rata shareholding at the Closing Date, subject to the Acquired Companies
achieving minimum sales of US$5,000,000 up to a maximum target of
US$8,000,000 for the period from July 1, 2000 through and including June 30,
2001.  For purposes of this paragraph, "sales" shall include the value of all
revenue from Buyer inventory held by the Acquired Companies prior to the
Closing, but shall exclude the post-Closing transfer price to the Acquired
Companies of products or services sold from Buyer. On achievement of the
minimum sales target of US$5,000,000, five-eighths of the Additional Cash
Consideration shall be due to the Sellers, and the remaining three-eighths of
the Additional Cash Consideration shall be paid pro rata to the Sellers in
proportion to the achievement of revenue between US$5,000,000 and
US$8,000,000 in the fiscal year ending June 30, 2001.

       (f)    Notwithstanding anything to the contrary contained herein:

              (i)    an Employee Seller shall not be entitled to receive any
portion of the remaining Cash Consideration payable under Section 2.3(d)(ii)
unless such individual remains an employee of an Acquired Company on the date
that such payment is made, except for dismissal without cause (employees
dismissed with cause do not  receive any portion of the remaining Cash
Consideration after their dismissal), as more fully set forth in the relevant
Employment Agreement; and,

              (ii)   the amount of Cash Consideration paid to each Employee
Seller shall not increase in the event that any Employee Seller leaves the
employment of an Acquired Company before such payment is made. The pro rata
portion of Cash Consideration that would have been paid to an Employee Seller
who is no longer employed by an Acquired Company shall not be paid by the
Buyer to the remaining Employee Sellers. The total Cash Consideration to be
paid to Employee Sellers shall be reduced by the pro rata portion that would
have been paid to an Employee Seller who has left the employment of an
Acquired Company on the date when such payment is made. The remaining
Employee Sellers shall be paid pro rata based upon their pro rata holdings of
total Employee Shareholdings at the Closing Date. The total amount of Cash
Consideration paid by the Buyer shall be reduced by the amount of cash
consideration not  paid to Employee Sellers who are no longer employed by an
Acquired Company on the date of payment under Paragraph 2.3(f).

2.4    TREATMENT OF OPTIONS

       Prior to the Closing, Sellers shall cause each holder of an
outstanding stock option for the purchase of shares of the Company's stock
(each a "Company Option") to execute an Option Cancellation and Assumption
Agreement in the form attached hereto as EXHIBIT 2.4.  Pursuant to the terms
of such agreements, each Company Option shall be cancelled, effective as of
the Closing, and shall be replaced with an option (each a "Buyer Option") to
purchase shares of Buyer's common stock with an in-the-money value equal to
the in-the-money value of the relevant Company Option as of the Closing, as
set forth in PART 2.4.  For purposes of this paragraph, "in-the-money value"
shall be calculated on an individual basis for each holder of a Company
Option and shall mean the aggregate US$ value of such holder's Company
Option, determined by multiplying the number of shares of the Company's stock
subject to the Company Option by the difference between (i) the US$ value of
the per share price of the Company's

                                    -8-
<PAGE>

stock, calculated as the Initial Purchase Price divided by the Pro Forma
Number of Shares of Common Stock purchased by Buyer hereunder, and (ii) the
strike price per share.  If the foregoing calculation results in a Buyer
Option being exercisable for a fraction of a share, then the number of shares
of Buyer's common stock subject to such option shall be rounded down to the
nearest whole number with no cash being payable for the fractional share.  To
the extent permitted by applicable law, each Buyer Option shall preserve the
vesting schedule and other key terms set forth in the corresponding Company
Option immediately prior to the Closing.

2.5    CLOSING

       The Closing will take place at the offices of Arthur Cox at Earlsfort
Centre, Earlsfort Terrace, Dublin 2, Ireland, at 10:00 a.m. (local time) on
or before July 28, 2000 or at such other place and time as Buyer and Sellers
agree.

2.6    CLOSING DELIVERIES

       At the Closing:

       (a)    Sellers shall deliver to Buyer:

              (i)    the share certificates representing the Shares,
accompanied by duly executed stock transfer forms in favor of Buyer or as
Buyer shall direct;

              (ii)   a release in the form of EXHIBIT 2.6(a)(ii) executed by
each Seller (collectively "Sellers' Releases"), to be delivered by each
Seller as each Seller is paid under this Agreement;

              (iii)  the statutory books of the Company, and each Acquired
Company, together with the Company seal, and the seal of each Acquired
Company;

              (iv)   resignation letters from each director of the Company,
and each director of each Acquired Company,  with such resignations to be
effective as of the Closing Date;

              (v)    non-competition and confidentiality agreements in the
form of EXHIBIT 2.6(a)(v) (collectively, the "NON-COMPETITION AGREEMENTS"),
executed by each employee of an Acquired Company (the "EMPLOYEES"), with the
Non-competition Agreements for key Employees to contain, among other
provisions, a covenant not to compete with Buyer or the Acquired Companies
for a period of 2 years following termination of employment, as well as a
covenant not to solicit employees of Buyer or the Acquired Companies for a
period of 3 years following termination of employment;

              (vi)   employment agreements in the form of EXHIBIT 2.6(a)(vi),
executed by Michael Fitzgerald, Monte Egeland, Ian Walter, David Jones,
Alastair Froggett, Guy Waugh, Glyn Turner, Dan Lambert, Dennis Herlihy, Tony
Dunne, and Bart Kane (collectively, the "EMPLOYEE SELLERS"), as well as by
all other Employees of the Acquired Companies (collectively, the "EMPLOYMENT
AGREEMENTS");

                                    -9-
<PAGE>

              (vii)  an executed Option Cancellation and Assumption Agreement
from each holder of a Company Option; and

              (viii) a certificate executed by each Seller, other than
Rionach Ui Ogain, Paul McKeon, Fiona McKeon, Pearse Boyce, Robert Dennison,
Thomas Cunningham, Martin Quaid, Rory Stokes and Andrew O'Rorke, and Shannon
Free Airport Development Company Limited, representing and warranting to
Buyer that each of Sellers' representations and warranties in this Agreement
was accurate in all respects as of the date of this Agreement and is accurate
in all respects as of the Closing Date as if then made, in the form of
EXHIBIT 2.6(a)(viii).

       (b)    Buyer shall deliver to Sellers:

              (i)    a certificate executed by Buyer representing and
warranting to Sellers that each of Buyer's representations and warranties in
this Agreement was accurate in all respects as of the date of this Agreement
and is accurate in all respects as of the Closing Date as if then made, in
the form of EXHIBIT 2.6(b)(i); and

              (ii)   the Employment Agreements executed by the relevant
Acquired Company, and the option cancellation and assumption agreement
executed by the Buyer.

       (c)    The Sellers' Releases, Non-competition Agreements, Employment
Agreements, and the escrow agreement attached hereto as EXHIBIT 2.6(c) (the
"ESCROW AGREEMENT") are collectively referred to as the "ANCILLARY
AGREEMENTS."

       (d)    In addition to the above deliveries, the parties shall arrange
for a meeting of the Company's Board of Directors to be held as of the
Closing Date in order to approve the transactions contemplated by this
Agreement and to take all such other actions as may be necessary to otherwise
implement the terms of this Agreement.

2.7    ADJUSTMENT PROCEDURE

       (a)    Upon execution of this Agreement and prior to the Closing,
Sellers will cause the Company to immediately begin an audit of the accounts,
balance sheet, and income statement of Microcellular Systems Limited (U.K.)
for the fiscal year ended July 31, 1999.

       (b)    After the Closing, Buyer will cause the Company to prepare and
will cause KPMG, certified public accountants, to audit a consolidated
balance sheet of the Acquired Companies as of the Closing Date (the "CLOSING
BALANCE SHEET"), including a computation of consolidated shareholders' equity
as of the Closing Date.  Buyer will prepare the Closing Balance Sheet in
accordance with SSAP applied on a basis consistent with audited Balance
Sheet.  Buyer will deliver the Closing Balance Sheet to Sellers'
Representative within 60 days after the Closing Date.

       (c)    If Sellers' Representative objects to the Closing Balance
Sheet, Seller's Representative shall notify Buyer of such objection within 10
days after receipt of the Closing Balance Sheet.  The parties will use
reasonable efforts to resolve themselves any objections to the Closing
Balance Sheet.  If they are unable to do so within 30 days of Buyer's receipt
of the

                                    -10-
<PAGE>

notice of objection, then the issues in dispute will be submitted to KPMG,
certified public accountants (the "ACCOUNTANTS"), for resolution, and:

              (i)    Each party will furnish to the Accountants such work
papers and other documents and information relating to the disputed issues as
the Accountants may request and will be afforded the opportunity to present
to the Accountants any material relating to the disputed issues and to
discuss the issues with the Accountants;

              (ii)   The resolution of the issues in dispute by the
Accountants, as set forth in a notice delivered to both parties by the
Accountants, will be binding and conclusive on the parties; and

              (iii)  Buyer and Sellers will each bear 50% of the fees and
expenses of the Accountants for such resolution.

Buyer will cause the Closing Balance Sheet to be revised, if necessary, to
reflect the resolution of the issues in dispute.

       (d)    Within 5 days after (i) the expiration of the 10-day objection
period set forth above, if Sellers' Representative makes no objection, (ii)
Buyer's and Sellers' mutual resolution of all objections, or (iii) the date
of the Accountant's notice pursuant to Section 2.7(c)(ii), the amounts
reflected in the Closing Balance Sheet shall be used in calculating the
Adjustment Amount as follows: the "ADJUSTMENT AMOUNT" shall be the greater of
(i) zero or (ii) the amount of the Company's liabilities stated in the
Closing Balance Sheet minus the amount of the Company's liabilities stated in
the Balance Sheet, plus (ii) the amount of the Company's assets stated in the
Balance Sheet minus the amount of the Company's assets stated in the Closing
Balance Sheet.

                                    -11-
<PAGE>

2.8    EMPLOYEE RETENTION PLAN

       As a further inducement to Sellers to enter into this Agreement,
following the Closing Buyer shall:

       (a)    establish a cash bonus plan for Employees of the Acquired
Companies on execution of the Agreement in an amount of US$2,000,000, with
US$1,000,000 payable at the end of each of the first two fiscal years
following the Closing, subject to achievement of performance criteria to be
mutually agreed upon by the management of the Acquired Companies and the
management of Buyer;

       (b)    grant options to Employees covering an aggregate of 350,000
shares of Buyer's common stock under Buyer's stock option plan; and

       (c)    allow Employees to participate in Buyer's employee stock
purchase plan and other benefits currently available to Buyer's employees.

Details of each Employee's participation in the above plans shall be set
forth in the relevant Employment Agreement.

2.9    RELEASE ON FINAL PAYMENT

       Upon final payment of the relevant portion of the Aggregate Purchase
Price to each Seller under this Agreement, each Seller shall deliver to the
Buyer the Seller's Release in the form attached as Part 2.9.

                                     ARTICLE 3

                     REPRESENTATIONS AND WARRANTIES OF SELLERS

       Sellers, other than Rionach Ui Ogan, Paul McKeon, Fiona McKeon, Pearse
Boyce, Robert Dennison, Thomas Cunningham, Martin Quaid, Rory Stokes and
Andrew O'Rorke, and Shannon Free Airport Development Company Limited, jointly
and severally represent and warrant to Buyer as follows:

3.1    ORGANIZATION, GOOD STANDING, OWNERSHIP OF SUBSIDIARIES, AND CONVEYANCE
       OF OWNERSHIP

       (a)    Each Acquired Company is a corporation duly organized and
validly existing, and Microcellular USA is in good standing, under the laws
of its jurisdiction of organization, with full corporate power and authority
to conduct its business as it is now being conducted, to own or use the
properties and assets that it purports to own or use, and to perform all its
obligations under all its Company Contracts.  Each Acquired Company is duly
qualified to do business, and Microcellular USA is in good standing, in each
jurisdiction in which either the ownership or use of the properties owned or
used by it, or the nature of the activities conducted by it, requires such
qualification.

                                    -12-
<PAGE>

       (b)    Sellers have delivered to Buyer copies of the Organizational
Documents of each Acquired Company, as currently in effect.  PART 3.1 of the
Disclosure Schedules contains a complete and accurate listing of the
documentation relating to each Acquired Company's jurisdiction of formation
and other jurisdictions in which it is authorized to do business.

       (c)    The Company is the direct or indirect owner of 100% of the
stock of each other Acquired Company, free and clear of any claim or
encumbrance of any third party.

       (d)    The Company is the owner of twenty percent (20%) of the stock
of Propylon, Ltd.,  all free and clear of any claim or encumbrance of any
third party or right of divestment in favor of any third party.

       (e)    By this Agreement, the Company conveys to Buyer complete
ownership of each other Acquired Company, free and clear of any encumbrance
or claim of any third party, including 100% of each other Acquired Company,
and including 20% of the common stock of Propylon.

3.2    ENFORCEABILITY; NO CONFLICT

       (a)    Assuming due authorization, execution and delivery of this
Agreement by Buyer, this Agreement constitutes the legal, valid, and binding
obligation of each Seller, enforceable against each Seller in accordance with
its terms.  Assuming due authorization, execution and delivery by the other
parties thereto, each Ancillary Agreement to which a Seller is a party will,
upon execution and delivery, constitute that Seller's legal, valid, and
binding obligation, enforceable against such Seller in accordance with its
terms.  Each Seller has the absolute and unrestricted right, power,
authority, and capacity to execute and deliver this Agreement and the
Ancillary Agreements to which such Seller is a party and to perform his or
her obligations under this Agreement and such Ancillary Agreements.

       (b)    Except as disclosed in PART 3.2(b), Sellers and the Acquired
Companies are not and will not be required to give any notice to any Person
or obtain any Consent or Governmental Authorization in connection with the
execution and delivery of this Agreement or the consummation or performance
of any of the Contemplated Transactions.

       (c)    Except as disclosed in PART 3.2(c), neither the execution and
delivery of this Agreement nor the consummation or performance of any of the
Contemplated Transactions will directly or indirectly:

              (i)    Contravene any provision of the Organizational Documents
of an Acquired Company or any resolution adopted by the management or
shareholders of an Acquired Company;

              (ii)   Contravene any Company Contract, Governmental
Authorization, Legal Requirement or Order to which any Acquired Company or
any Seller, or any of the assets owned or used by an Acquired Company, may be
subject; or

              (iii)  result in the imposition or creation of any Encumbrance
upon or with respect to any of the assets owned or used by an Acquired
Company.

                                    -13-

<PAGE>

3.3    CAPITALIZATION

       The authorised share capital of the Company consists of 3,000,000
ordinary shares of US$1.00 each, of which 498,720 are issued as of the
execution of the agreement, and 538,720 may be issued as of the closing; and
367,000 'A' ordinary shares of 1 IR pound each, of which 122,333 shares are
issued as of the closing. The Sellers will provide a certificate to the Buyer
at the Closing with the actual number of issued ordinary shares. The 'A'
ordinary shares represent 5% of the ownership and voting power of the
Company. The Shares represent all of the issued and outstanding shares in the
Company as of the Closing.  Sellers are and will be on the Closing Date the
record and beneficial owners and holders of the Shares, free and clear of all
Encumbrances.  The attached PART 3.3 sets forth the holders of all Shares, as
well as the holders of all options, warrants, or related instruments to
purchase shares of the Acquired Companies' capital stock.  With the exception
of the Shares, all of the outstanding equity securities and other securities
of each Acquired Company are owned of record and beneficially by one or more
of the Acquired Companies, free and clear of all Encumbrances.  No legend or
other reference to any purported Encumbrance appears upon any certificate
representing equity securities of any Acquired Company. All of the
outstanding equity securities of each Acquired Company have been duly
authorized and validly issued and are fully paid and non-assessable.  Except
as set forth in Part 3.3, there are no Contracts relating to the issuance,
sale, or transfer of any equity securities or other securities of any
Acquired Company. The Company owns 20% of the issued share capital of
Propylon, and no Acquired Company owns, or has any Contract to acquire, any
equity securities or other securities of any Person or any direct or indirect
equity or ownership interest in any other business.

3.4    FINANCIAL STATEMENTS

       Sellers have delivered to Buyer: (a) an audited balance sheet of
Microcellular Systems Limited (U.K.) as at July 31, 1998, and the related
consolidated statements of income, changes in shareholders' equity, and cash
flow for the fiscal year then ended, (b) an unaudited consolidated balance
sheet of the Acquired Companies as at April 30, 2000 (the "BALANCE SHEET"),
and (c) an unaudited consolidated balance sheet of the Acquired Companies as
at May 31, 2000 (the "INTERIM BALANCE SHEET") and the related unaudited
consolidated statements of income, changes in shareholders' equity, and cash
flow for the months then ended, including in each case the notes thereto.
Sellers shall furnish, prior to the Closing, an unaudited consolidated
balance sheet of the Acquired Companies as of June 30, 2000, and the related
unaudited consolidated statement of income, changes in shareholders' equity,
and cash flow for the months then ended, including the notes thereto. Such
financial statements and notes fairly present the financial condition and the
results of operations, changes in shareholders' equity, and cash flow of the
Acquired Companies as at the respective dates of such financial statements,
in accordance with SSAP.  The financial statements referred to in this
Section reflect the consistent application of accounting principles
throughout the periods involved.  No financial statements of any Person other
than the Acquired Companies are required by SSAP to be included in the
financial statements of the Company.

                                    -14-
<PAGE>

3.5    BOOKS AND RECORDS

       The books of account, minute books, equity record books, and other
records of the Acquired Companies, all of which have been made available to
Buyer, are complete and correct in all material respects.  Each transaction
of each Acquired Company is properly and accurately recorded on the books and
records of the Acquired Company, and each document (including any Contract,
invoice, or receipt) on which entries in the Acquired Company's books and
records are based is complete and accurate in all material respects.  The
minute books of each Acquired Company contain accurate and complete records
of all meetings held of, and corporate action taken by, the Acquired
Company's shareholders, directors and directors' committees, and no such
meeting has been held for which minutes have not been prepared and are not
contained in such minute books.  At the Closing, all of those books and
records will be in the possession of the respective Acquired Company.

3.6    ACCOUNTS RECEIVABLE

       All accounts receivable that are reflected on the Balance Sheet, the
Interim Balance Sheet and the accounting records of each Acquired Company as
of the Closing Date, as the case may be, (collectively, the "ACCOUNTS
RECEIVABLE") represent or will represent valid obligations arising from sales
actually made or services actually performed in the Ordinary Course of
Business.  Unless paid prior to the Closing Date, the Accounts Receivable are
or will be as of the Closing Date current and collectible net of the
respective reserves shown on the Balance Sheet, Interim Balance Sheet or
Closing Balance Sheet.  There is no contest, claim, defense or right of
setoff under any Contract relating to the amount or validity of any Account
Receivable.  PART 3.6 contains a complete and accurate list of all Accounts
Receivable as of the date of the Interim Balance Sheet, which list sets forth
the aging of each such Account Receivable.

3.7    INVENTORY

       All inventory of each Acquired Company consists of a quality and
quantity usable and salable in the Ordinary Course of Business.  All
inventory is maintained at the location of the relevant Acquired Company.

3.8    NO UNDISCLOSED LIABILITIES

       Except as set forth in PART 3.8, no Acquired Company has Liabilities
of any nature except for Liabilities reflected or reserved against in the
Balance Sheet or the Interim Balance Sheet, and current Liabilities incurred
in the Ordinary Course of Business since the respective dates thereof.

3.9    NO MATERIAL ADVERSE CHANGE

       Since the date of the Balance Sheet, there has been no Material
Adverse Effect on any Acquired Company, and no event has occurred or
circumstance exists that may result in such a Material Adverse Effect.

                                    -15-
<PAGE>

3.10   ABSENCE OF CERTAIN CHANGES AND EVENTS

       Except as disclosed in PART 3.10, since the date of the Balance Sheet,
each Acquired Company has conducted its business only in the Ordinary Course
of Business and there has not been any:

       (a)    change in an Acquired Company's authorized or issued shares;
grant of any equity option or right to purchase shares of an Acquired
Company; issuance of any security convertible into such equity; grant of any
registration rights; purchase, redemption, retirement, or other acquisition
by an Acquired Company of any shares; or declaration or payment of any
dividend or other distribution or payment with respect to any shares;

       (b)    amendment to the Organizational Documents of an Acquired
Company;

       (c)    payment (except in the Ordinary Course of Business) or increase
by an Acquired Company of any bonuses, salaries, or other compensation to any
Seller, director or employee, or entry into any employment, severance, or
similar Contract with any director or employee;

       (d)    adoption of, amendment to or increase in the payments to or
benefits under, any employee benefit plan or similar obligation of an
Acquired Company;

       (e)    damage to or destruction or loss of any asset or property of an
Acquired Company, whether or not covered by insurance, which may have a
Material Adverse Effect on the Acquired Company;

       (f)    entry into, termination of, or receipt of notice of termination
of any Contract or transaction involving an Acquired Company;

       (g)    sale (other than sales of inventory in the Ordinary Course of
Business), lease, or other disposition of any asset or property of an
Acquired Company, including Intellectual Property, or the creation of any
Encumbrance on any material asset of the Acquired Companies;

       (h)    cancellation or waiver of any claims or rights by an Acquired
Company;

       (i)    change in the accounting methods used by any Acquired Company;
or

       (j)    Contract by an Acquired Company to do any of the foregoing.

3.11   LEASE ARRANGEMENTS; REAL PROPERTY

       PART 3.11 contains a list of all lease agreements entered into by the
Acquired Companies, together with an indication of the term of such lease and
the periodic rental payments and related fees.  The Acquired Companies are
not in default under the relevant lease agreements and are not in violation
of any Legal Requirement with respect to the occupation and use of the
relevant premises.  No Acquired Company owns any real property.

                                    -16-
<PAGE>

3.12   CONDITION AND SUFFICIENCY OF TANGIBLE ASSETS

       Each Acquired Company owns good and transferable title to all of its
assets free and clear of any Encumbrances.  Each item of tangible personal
property of each Acquired Company is in good operating condition and repair,
ordinary wear and tear excepted, is free from latent and patent defects and
is suitable for immediate use in the Ordinary Course of Business.  The
tangible personal property of the Acquired Companies constitute all assets
necessary for the continued operation of the Acquired Companies after the
Closing in the same manner as before the Closing.

3.13   INTELLECTUAL PROPERTY

       (a)    The "INTELLECTUAL PROPERTY" means all intellectual property
owned, used or licensed by an Acquired Company, including: (i) each Acquired
Company's name and all assumed fictional business names, trade names,
registered and unregistered trademarks, service marks, and applications; (ii)
all patents, patent applications, and inventions, discoveries, and methods of
doing business that may be patentable; (iii) all registered and unregistered
copyrights in both published works and unpublished works; (iv) all know-how,
trade secrets, confidential or proprietary information, customer lists,
software, databases, source code, object code, technical information, data,
process technology, plans, drawings, surveys, designs, and blue prints; and
(v) all rights in Internet websites and domain names presently used by an
Acquired Company.

       (b)    PART 3.13(b) contains a complete and accurate list and summary
description of all Intellectual Property, together with an indication of any
royalties paid or received by any Acquired Company, and the Company has
delivered to Buyer accurate and complete copies of all Company Contracts
relating to the Intellectual Property, except for any license implied by the
sale of a product and perpetual, paid-up licenses for commonly available
software programs with a value of less than US$1,000 under which an Acquired
Company is the licensee.  There are no outstanding and, to Sellers'
Knowledge, no Threatened disputes or disagreements with respect to any such
Contract.

       (c)    The Intellectual Property constitutes all the intellectual
property necessary for the continued operation of the Acquired Companies
after the Closing in the same manner as before the Closing.  The relevant
Acquired Company is the owner or licensee of all right, title, and interest
in and to the Intellectual Property, free and clear of all Encumbrances, and
has the absolute right to use all of the Intellectual Property without
payment to any third party, except with respect to the licenses listed in
PART 3.13(c).  Except as set forth in Part 3.13(c), no Acquired Company has
granted a license or otherwise permitted any other party to use or exploit
any of the Intellectual Property, whether for or without consideration.  To
the extent permitted by law, all former and current employees of each
Acquired Company have executed written Contracts with one or more Acquired
Companies that assign to an Acquired Company all rights to any inventions,
improvements, discoveries, or information relating to the business of any
Acquired Company.

       (d)    To the extent required by applicable law or to the extent
reasonably necessary to protect the Acquired Companies' interest in such
Intellectual Property, all items of Intellectual Property have been properly
registered, are currently in compliance with formal legal

                                    -17-
<PAGE>

requirements (including payment of filing, examination, and maintenance
fees), are valid and enforceable, and are not subject to any maintenance fees
or taxes or actions falling due within 90 days after the Closing Date.

       (e)    The Acquired Companies have taken all reasonable precautions to
protect the secrecy, confidentiality, and value of all trade secrets, and, to
Sellers' Knowledge, no information relating thereto has been used, divulged,
or appropriated either for the benefit of any Person or to the detriment of
the Acquired Companies.

       (f)    To Sellers' Knowledge, no item of Intellectual Property has
been challenged or Threatened, nor is alleged to infringe any proprietary
right of any other Person.

       (g)    Where applicable, all products sold or materials distributed by
an Acquired Company contain the appropriate mark, indication, or notice.

3.14   DATE-LIMITED SOFTWARE; EURO COMPLIANCE

       (a)    All software, firmware, computers, equipment and other devices
(collectively "DEVICES") owned, used, produced, sold, leased, licensed or
distributed by an Acquired Company that store or utilize dates or
date-related data (in any form) will receive input of, recognize, store,
retrieve, process and generate output of dates and date-related data without
error, ambiguity, interruption, malfunction or the need for any change in the
manner of its use and in accordance with current calendar conventions.

       (b)    The Devices owned or used by each Acquired Company has the
programming, design and performance capabilities to ensure that it: (i) is
capable of performing its functions for more than one currency and for the
common currency adopted by one or more members of the European Union (the
"EURO").

       (c)    Other than to Buyer, no Acquired Company has provided any
guarantees, warranties or other assurances to any third party with respect to
the Devices.

3.15   CONTRACTS; NO DEFAULTS

       (a)    PART 3.15(a) contains a complete and accurate list, and Sellers
have delivered to Buyer true and complete copies, of:

              (i)    each Company Contract that involves performance of
services or delivery of goods or materials by or to an Acquired Companies of
an amount or value in excess of US$5,000;

              (ii)   each Company Contract affecting the ownership of,
leasing of, title to, use of, or any leasehold or other interest in, any real
or personal property (except personal property leases and installment and
conditional sales agreements having a value per item or aggregate payments of
less than US$5,000 and with a term of less than one year);

                                    -18-
<PAGE>

              (iii)  each Company Contract with respect to Intellectual
Property, including agreements with current or former employees, consultants,
or contractors regarding the appropriation or the non-disclosure of any of
the Intellectual Property;

              (iv)   each Company Contract with any labor union or other
employee representative of a group of employees;

              (v)    each Company Contract (however named) involving a
sharing of profits, losses, costs, or Liabilities by an Acquired Company with
any other Person;

              (vi)   each Company Contract containing covenants that in any
way purport to restrict the business activity of an Acquired Company or limit
the freedom of an Acquired Company to engage in any line of business or to
compete with any Person;

              (vii)  each Company Contract providing for payments to or by
any Person based on or determined by reference to sales, purchases, or
profits, other than direct payments for goods;

              (viii) each power of attorney that is currently effective and
outstanding;

              (ix)   each Company Contract for capital expenditures in excess
of US$5,000; and

              (x)    each written warranty, guaranty, and or other similar
undertaking with respect to contractual performance extended by an Acquired
Company other than in the Ordinary Course of Business.

PART 3.15(a) sets forth reasonably complete details concerning such
Contracts, including the parties to the Contracts, the amount of the
remaining commitment of the Acquired Companies under the Contracts, and the
Acquired Company's office where details relating to the Contracts are located.

       (b)    Except as disclosed in PART 3.15(b), each Company Contract is
in full force and effect and is valid and enforceable in accordance with its
terms, the relevant Acquired Company has not Contravened any of the
applicable terms and requirements of such Contract, and Sellers have no
Knowledge of any Contravention of any Company Contract by the other party or
parties thereto.

       (c)    There are no renegotiations of, attempts to renegotiate, or
outstanding rights to renegotiate any Company Contracts, and no one has made
written demand for such renegotiations.

                                    -19-
<PAGE>

3.16   CUSTOMERS AND SUPPLIERS

       PART 3.16 lists the names and addresses of the 5 largest customers and
the 5 largest suppliers (measured in each case by dollar volume of purchases
or sales during the years ended July 31, 1998 and July 31, 1999) of the
Acquired Companies, taken as a whole, and the dollar amount of purchases or
sales which such customer or supplier represented from August 1, 1999 through
May 31, 2000. Except as disclosed in PART 3.16, there exists no actual, and
Sellers have no Knowledge of any Threatened, termination, cancellation or
material limitation of, or any material change in, the business relationship
of any Acquired Company with any customer, supplier, group of customers or
group of suppliers listed in PART 3.16.   No customer of any Acquired Company
has any right to any credit or refund for products sold or services rendered
or to be rendered by the Acquired Company pursuant to any Contract.

3.17   INSURANCE

       Each Acquired Company maintains, and through the Closing will continue
to maintain, in full force and effect insurance policies covering its
insurable business risks and Liabilities in adequate amounts to provide
reasonable protection for the business of and the properties owned and used
by the Acquired Company and for its directors and officers.  PART 3.17
contains (a) a list and brief description of each such policy, including the
policy number, name of Acquired Company holding the policy, coverage, name
and address of the insurance carrier, principal amount or limit, annual
premium, date of expiration, and loss experience for the current and
preceding policy year.  The Acquired Companies have complied with each such
policy and program and have not failed to give any notice or present any
claim thereunder in a due and timely manner which failure would reasonably be
expected to result in a loss or forfeiture of any right thereunder.  PART
3.17 also contains a description of all insurance claims made by the Acquired
Companies since during the last 5 years.

3.18   TAXES

       Except as disclosed in PART 3.18:

       (a)    The Acquired Companies have filed on a timely basis all Tax
Returns as required by applicable Legal Requirements.  Each such Tax Return
is true, correct and complete in all respects.  All Taxes shown as due and
owing on all such Tax Returns have been paid.  The Acquired Companies have
not requested an extension of time within which to file any Tax Return in
respect of any taxable year which has not since been filed.  There are no Tax
liens upon the properties or assets of any Acquired Company.

       (b)    The Acquired Companies have and will have no additional
Liability for Taxes with respect to any Tax Return which was required by
applicable Legal Requirements to be filed on or before the Closing Date,
other than those reflected as liabilities on the Balance Sheet.  The amounts
reflected as liabilities on the Balance Sheet for all Taxes are adequate to
cover all unpaid Liabilities for all Taxes, whether or not disputed.

       (c)    No Irish, U.S. or other country audits or other Proceedings
exist with regard to any Taxes or Tax Returns of any Acquired Company, nor,
to Sellers' Knowledge, is any audit or

                                    -20-
<PAGE>

other Proceeding Threatened.  The Acquired Companies have not granted or been
requested to grant any waiver of any statutes of limitations applicable to
any claim for Taxes.

       (f)    All Taxes that each Acquired Company is required by law to
withhold or collect, including sales and use taxes, and amounts required to
be withheld for Taxes of employees and other withholding taxes, have been
duly withheld or collected and, to the extent required, have been paid over
to the proper taxing authority or are held in separate bank accounts for such
purpose.

3.19   EMPLOYEE BENEFITS

       (a)    PART 3.19(a) contains a complete and accurate list of all
employee benefits plans and similar benefit obligations.

       (b)    PART 3.19(b) contains a complete and accurate list of all
employees, agents, independent contractors, and other workers working in the
Acquired Companies, including names, date of engagement, and a summary of the
terms of engagement.

       (c)    Sellers have delivered to Buyer:

              (i)    all documents that set forth the terms of each employee
benefits plan or similar obligation, including all summaries and descriptions
furnished to participants and beneficiaries;

              (ii)   all personnel, payroll, and employment manuals and
policies of each Acquired Company;

              (iii)  a written description of any benefits obligation that is
not otherwise in writing;

              (iv)   all insurance policies purchased by or to provide
benefits under any Company Plan; and

              (v)    all reports submitted during the 2 prior years by
third-party administrators, actuaries, investment managers, trustees,
consultants, or other independent contractors with respect to any employee
benefit plan or similar obligation.

       (d)    Except as disclosed in PART 3.19(d):

              (i)    The Acquired Companies have performed all of their
respective obligations, including to any Governmental Body, under all
employee benefit plans and similar obligations.  The Acquired Companies have
made appropriate entries in their financial records and statements for all
related obligations and liabilities that have accrued but are not due.

              (ii)   No event has occurred or circumstance exists that may
result in a material increase in premium costs or benefits cost of any
employee benefits plan or similar obligation.  The consummation of the
Contemplated Transactions will not result in the payment, vesting, or
acceleration of any benefit.

                                    -21-
<PAGE>

              (iii)  Other than routine claims for benefits submitted by
participants or beneficiaries, no claim against, or Proceeding involving, any
employee benefits plan or similar obligation is pending or, to Sellers'
Knowledge, is Threatened.

              (iv)   No Acquired Company provides health or welfare benefits
for any retired or former employee nor is any Acquired Company obligated to
provide health or welfare benefits to any active employee following such
employee's retirement or other termination of service.

              (v)    There are not in existence any retirement, death,
disability, or other benefit plans for Employees or any dependant of any
Employee, other than those disclosed in writing during due diligence, nor are
there any retirement, death or disability obligations pursuant to which any
Acquired Company is or may become liable to make payments, and no pension,
retirement, or sickness payment is currently being paid or has been promised
by any Acquired Company to or with respect to any former officer, Employee,
or their dependants, other than those disclosed in writing during due
diligence.

3.20   LABOR RELATIONS; EMPLOYMENT LAW

       (a)    Each Acquired Company has complied in all respects with all
Legal Requirements relating to employment practices, terms and conditions of
employment, equal employment opportunity, nondiscrimination, immigration,
wages, hours, benefits, and collective bargaining.  No Acquired Company is
liable for the payment of any fines, penalties, or other amounts, for failure
to comply with any of the foregoing Legal Requirements.

       (b)    Except as disclosed in PART 3.20(b): (i) no Acquired Company is
involved in negotiations to vary the terms or conditions of employment of any
Employee; (ii) no Acquired Company has been, or is now, a party to any
collective bargaining agreement or other labor contract; (iii) there has not
been, there is not presently pending or existing, and to Sellers' Knowledge
there is not Threatened, any strike, slowdown, picketing, work stoppage or
employee grievance process involving an Acquired Company; and (iv) there is
not pending or, to Sellers' Knowledge, Threatened any Proceeding against or
affecting an Acquired Company relating to the alleged violation of any Legal
Requirement pertaining to labor relations, discrimination, or other
employment matters.

       (c)    No employee or director of any Acquired Company is a party to,
or is otherwise bound by, any Contract, including any confidentiality,
non-competition, or proprietary rights agreement, that in any way adversely
affects or will affect (i) the performance of such individual's duties as an
employee or director of an Acquired Company, or (ii) the ability of any
Acquired Company to conduct its business.  To Sellers' Knowledge, no employee
intends to terminate his or her employment with an Acquired Company.

3.21   ENVIRONMENTAL, HEALTH, AND SAFETY MATTERS

       Except as disclosed in PART 3.21, to the best of Seller's information,
knowledge and belief, having made due and careful consideration:

       (a)    Each Acquired Company is, and at all times has been, in full
compliance with, and has not been and is not in Contravention of or liable
under, any environmental law or

                                    -22-
<PAGE>

occupational safety and health law.  There are no pending or, to Sellers'
Knowledge, Threatened, claims, Encumbrances or other restrictions of any
nature, resulting from any environmental, health, and safety liabilities or
arising under or pursuant to any environmental law or occupational safety and
health law, with respect to or affecting any Facilities or any other
properties and assets in which any Acquired Company has or had an interest.

       (d)    Neither any Seller nor any Acquired Company has any
environmental, health, or safety liabilities with respect to any Facility.
There are no hazardous materials present on or in the environment at any
Facility or, to Sellers' Knowledge, at any adjoining property.

       (g)    Sellers have delivered to Buyer true and complete copies and
results of any reports, studies, analyses, tests, or monitoring pertaining to
hazardous materials or Hazardous Activities in, on, or under any Facilities,
or concerning compliance by any Acquired Company with environmental laws.

3.22   COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL AUTHORIZATIONS

       (a)    Except as disclosed in Part 3.22(a):

              (i)    Each Acquired Company is, and at all times has been, in
full compliance with each Legal Requirement, including each Governmental
Authorization, that is or was applicable to it or to the conduct or operation
of its business or the ownership or use of its assets.

              (ii)   No event has occurred or circumstance exists that may
cause an Acquired Company to Contravene any Legal Requirement or Governmental
Authorization or may give rise to any obligation on the part of an Acquired
Company to undertake, or to bear all or any portion of the cost of, any
remedial action of any nature.

              (iii)  No Acquired Company has received any notice or other
communication (whether oral or written) from any Governmental Body or any
other Person regarding any actual or potential Contravention of any Legal
Requirement or Governmental Authorization.

       (b)    Part 3.22(b) contains a complete and accurate list of each
Governmental Authorization that is held by an Acquired Company or that
otherwise relates to the business of, or the assets owned or used by, an
Acquired Company, all of which are valid and in full force and effect and
will remain so following the Closing.  The Governmental Authorizations listed
in Part 3.22(b) constitute all of the Governmental Authorizations necessary
to permit the Acquired Companies to conduct and operate their businesses.

3.23   LEGAL PROCEEDINGS; ORDERS

       (a)    Except as disclosed in Part 3.23, there is no pending
Proceeding (i) by or against any Acquired Company or that otherwise relates
to or may affect the business of, or any of the assets owned or used by, an
Acquired Company; or (ii) that challenges, or that may have the effect of
preventing, delaying, making illegal, or otherwise interfering with, any of
the Contemplated Transactions.  To Sellers' Knowledge, no such Proceeding has
been Threatened. Sellers have delivered to Buyer copies of all pleadings,
correspondence, and other documents

                                    -23-

<PAGE>

relating to each Proceeding listed in Part 3.23.  The Proceedings listed in
Part 3.23 will not in the aggregate have a Material Adverse Effect on any
Acquired Company.  To Sellers' Knowledge, there is no Order to which an
Acquired Company or any of its officers, directors, agents, employees are
subject.

3.24   RELATIONSHIPS WITH RELATED PERSONS

       No Seller nor any Related Person of any Seller or of any Acquired
Company has any interest in any property used in or pertaining to the
Acquired Companies businesses.  No Seller nor any Related Person of any
Seller or of any Acquired Company, owns (of record or as a beneficial owner)
an equity interest or any other financial or profit interest in a Person that
has (i) had business dealings or a material financial interest in any
transaction with an Acquired Company, or (ii) engages in competition with an
Acquired Company with respect to any line of the products or services of the
Acquired Company, except for ownership of less than 1% of the outstanding
capital stock of any publicly traded company.  With the exception of
employment agreements, no Seller nor any Related Person of any Seller or of
any Acquired Company is a party to any Contract with, or has any claim or
right against, any Acquired Company.

3.25   BROKERS OR FINDERS

       Neither Sellers nor any of their Representatives have incurred any
Liability for brokerage or finders' fees or agents' commissions or other
similar payment in connection with the Contemplated Transactions.

3.26   DISCLOSURE

       (a)    No representation or warranty of Sellers in this Agreement, no
statement in the Disclosure Schedule, and no notice given pursuant to Section
5.5 contains any material untrue statement or omits to state a material fact
necessary to make the statements herein or therein, in light of the
circumstances in which they were made, not misleading.  No Seller has
Knowledge of any fact that has specific application to any Seller or Acquired
Company (other than general economic or industry conditions) and that could
have a Material Adverse Effect on an Acquired Company that has not been set
forth in this Agreement.

       (b)    Disclosures and deliverables on the attached schedules to the
Agreement shall be specific and not general. If a written disclosure is made
under one paragraph of the Agreement on the attached schedules, it will be
deemed to be a disclosure as to all paragraphs of the Agreement.

3.27   ADDITIONAL REPRESENTATIONS AND WARRANTIES

       In addition to, and not in limitation of, the representations and
warranties contained in this Article 3, each Seller providing warranties
represents and warrants, subject to the matters set out in the Disclosure
Schedules, that each of the additional representations and warranties
contained in Part 3.27 to this Agreement is true and correct, and that the
Disclosure Schedules

                                    -24-
<PAGE>

are true and correct, with respect to the Company, and further agrees that
such representations and warranties are hereby incorporated in this Article 3.

3.28   EXCEPTIONS TO THE WARRANTIES

       The following shall be exceptions to the Seller's warranties:

       (a)    Any and all matters which would be revealed by searches on the
Closing Date of the Companies Registration Office in Dublin, a judgment
search in Ireland, a search for bankruptcy against individuals in Ireland,
the Sheriff's Office in Dublin, and the Companies House in London.

       (b)    The contents of the Memorandum and Articles of Association of
each of the Acquired Companies and the documents attached thereto, as
provided in copies to the Buyer.

       (c)    Any and all matters set forth in writing in the leases listed
in Part 3.11 attached to this Agreement.

       (d)    Any and all matters shown in the audited accounts of
Microcelluar Systems. Ltd. (U.K.) as of July 31, 1998.

       (e)    all matters contained in the Disclosure  Schedules attached
hereto, provided that the matters contained in the Disclosure Schedules are
true.

                                    -25-
<PAGE>

3.29   CLAIM REDUCTION AND CLAIM PROCEDURES

       Any claim shall be reduced to the extent that:

       (a)    it arises or is increased as a result of any change in
legislation made after Closing of this Agreement and having retrospective
effect;

       (b)    it would not have arisen but for a voluntary act or transaction
which is carried out, outside the usual course of the Company's business, by
the Buyer or the Company after Closing;

       (c)    specific provision or full and adequate reserve, including any
provision for deferred taxation, has been made in the audited accounts of
Microcellular Systems Ltd. (U.K.) of July 31, 1998, or in the Company's
balance sheet of April 30, 2000, in specific respect of the matter to which
such claims relate such that the claim has no effect on the shareholders
funds account on that balance sheet determined on the basis of generally
accepted accounting principles;

       (d)    if there is a breach of the warranties and the loss occasioned
thereby is recoverable under any insurance policy in force in the name of the
Company as at Closing, the Buyer shall be entitled forthwith to make a claim
against the Sellers hereunder but shall nevertheless use all reasonable
endeavors to pursue a claim against the insurers. If six months after the
making of such claim against the Sellers, payment in full has not been made
by the insurers, the Sellers shall pay an amount equal to any shortfall.

       (e)    it arises as a result of any change in the accounting policy or
practice introduced after Closing, but this shall not apply if the prior
accounting practice was not done consistently or was not done in accordance
with generally accepted accounting principles or was not done in compliance
with the SSAP or if as a result of audit accounting policy or practice is
changed.

       (f)    the Company or the Buyer receives in cash recovery of any
amount as a result of sthe circumstances giving rise to the claim;

       (g)    any taxation for which the Company is or may become liable to
be assessed or accountable is reduced or extinguished as a direct result of
the circumstances giving rise to such claim;

       (h)    such claim would not have arisen but for a cessation on or
after Closing of the business of the Company or any part thereof.

                                     ARTICLE 4

                      REPRESENTATIONS AND WARRANTIES OF BUYER

       Buyer represents and warrants to Sellers as follows:

4.1    ORGANIZATION

                                    -26-
<PAGE>

       Buyer is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization.

4.2    ENFORCEABILITY; NO CONFLICT

       (a)    Buyer has the right, power, and authority to execute and
deliver this Agreement and its Ancillary Agreements and to perform its
obligations under this Agreement and its Ancillary Agreements, which actions
have been duly authorized and approved by all necessary corporate action of
Buyer.  Assuming the valid execution and delivery of this Agreement by
Sellers, this Agreement constitutes the legal, valid, and binding obligation
of Buyer, enforceable against Buyer in accordance with its terms.  Assuming
their execution and delivery by the other parties thereto, the Ancillary
Agreements to which Buyer is a party will, upon execution and delivery,
constitute legal, valid, and binding obligations of Buyer, enforceable
against Buyer in accordance with their respective terms.

       (b)    Except as set forth in SCHEDULE 4.2(b), Buyer is not and will
not be required to obtain any Governmental Authorization or Consent in
connection with the execution and delivery of this Agreement or the
consummation or performance of any of the Contemplated Transactions.

       (c)    Except as set forth in SCHEDULE 4.2(c), neither the execution
and delivery of this Agreement by Buyer nor the consummation or performance
of any of the Contemplated Transactions by Buyer will give any Person the
right to prevent, delay, or otherwise interfere with any of the Contemplated
Transactions pursuant to:

              (i)    any provision of Buyer's Organizational Documents;

              (ii)   any resolution adopted by the board of directors or the
shareholders of Buyer;

              (iii)  any Legal Requirement or Order to which Buyer may be
subject; or

              (iv)   any Contract to which Buyer is a party or by which Buyer
may be bound.

4.3    PROCEEDINGS

       There is no pending Proceeding that has been commenced against Buyer
and that challenges, or may have the effect of preventing, delaying, making
illegal, or otherwise interfering with, any of the Contemplated Transactions.
 To Buyer's Knowledge, no such Proceeding has been Threatened.

4.4    BROKERS OR FINDERS

       Neither Buyer nor any of its Representatives have incurred any
Liability for brokerage or finders' fees or agents' commissions or other
similar payment in connection with the Contemplated Transactions.

                                    -27-
<PAGE>

                                  ARTICLE 5

                     COVENANTS OF SELLERS BEFORE CLOSING

5.1    ACCESS AND INVESTIGATION

       Between the date of this Agreement and the Closing Date, Sellers will,
and will cause the Acquired Companies and their Representatives to, (a)
afford Buyer and its Representatives and their Representatives (collectively,
"BUYER'S ADVISORS") full and free access to each Acquired Company's
personnel, properties (including subsurface testing), Contracts, books and
records, and other documents and data, (b) furnish Buyer and Buyer's Advisors
with copies of all such Contracts, books and records, and other documents and
data as Buyer may reasonably request, and (c) furnish Buyer and Buyer's
Advisors with such additional financial, operating, and other data and
information as Buyer may reasonably request.

5.2    OPERATION OF THE BUSINESSES OF THE ACQUIRED COMPANIES

       Between the date of this Agreement and the Closing Date, Sellers will,
and will cause each Acquired Company to:

       (a)    conduct the business of such Acquired Company only in the
Ordinary Course of Business;

       (b)    use their Best Efforts to preserve intact the current business
organization of such Acquired Company, keep available the services of the
current officers, employees, and agents of such Acquired Company, and
maintain relations and goodwill with suppliers, customers, landlords,
creditors, and others having business relationships such Acquired Company; and

       (c)    confer with Buyer concerning operational matters of a material
nature, the status of the business, operations, and finances of such Acquired
Company.

5.3    NEGATIVE COVENANT

       Except as otherwise expressly permitted by this Agreement, between the
date of this Agreement and the Closing Date, Sellers will not, and will cause
each Acquired Company not to, without the prior consent of Buyer, take any
affirmative action, or fail to take any reasonable action within their or its
control, as a result of which any of the changes or events listed in Section
3.10 is likely to occur.

5.4    REQUIRED APPROVALS

                                    -28-
<PAGE>

       (a)    As promptly as practicable after the date of this Agreement,
Sellers will, and will cause each Acquired Company to, make all filings that
Legal Requirements require them to make to consummate the Contemplated
Transactions, including those specified in Part 3.2(b).  Between the date of
this Agreement and the Closing Date, Sellers will, and will cause each
Acquired Company to, (a) cooperate with Buyer with respect to all filings
that Buyer elects to make or that Legal Requirements require Buyer to make in
connection with the Contemplated Transactions, and (b) cooperate with Buyer
in obtaining all Governmental Authorizations and Consents identified in
Schedule 4.2(b).

       (b)    The parties expressly accept that the Board of Directors of the
Company have approved the transaction, the terms of which are set out in this
Agreement, and the members of the Board will use their best efforts to
promptly procure the execution of the Agreement by all Sellers prior to
closing.

5.5    NOTIFICATION

       Between the date of this Agreement and the Closing Date, each Seller
will promptly notify Buyer in writing if such Seller or any Acquired Company
becomes aware of: (i) any fact or condition that causes or constitutes a
breach of any of Sellers' representations and warranties as of the date of
this Agreement, or (ii) the occurrence after the date of this Agreement of
any fact or condition that would cause or constitute a breach of any such
representation or warranty had that representation or warranty been made as
of the time of the occurrence or discovery of such fact or condition.  Should
any such fact or condition require any change in the Disclosure Schedule,
Sellers will promptly deliver to Buyer a supplement to the Disclosure
Schedule specifying such change.  Such delivery will not affect any rights of
Buyer under Section 9.2 and Article 10. During the same period, each Seller
will promptly notify Buyer of the occurrence of any breach of any covenant of
Sellers in this Article or of the occurrence of any event that may make the
satisfaction of the conditions in Article 7 impossible or unlikely.

5.6    PAYMENT OF INDEBTEDNESS BY RELATED PERSONS

       Except as expressly provided in this Agreement, Sellers will cause all
indebtedness owed to any Acquired Company by either Sellers or any Related
Person of Sellers to be paid in full before the Closing Date.

5.7    NO NEGOTIATION

       Until such time, if any, as this Agreement is terminated pursuant to
Article 9, Sellers will not, and will cause each Acquired Company and each of
their Representatives not to, directly or indirectly, solicit, initiate,
encourage or entertain any inquiries or proposals from, discuss or negotiate
with, provide any non-public information to, or consider the merits of any
inquiries or proposals from, any Person (other than Buyer) relating to any
business combination transaction involving any Acquired Company, including
the sale of any of the shares of an Acquired Company, any merger or
consolidation, or the sale of the business or any of the assets of an
Acquired Company (other than in the Ordinary Course of Business).

                                    -29-
<PAGE>

                                  ARTICLE 6

                      COVENANTS OF BUYER BEFORE CLOSING

6.1    REQUIRED APPROVALS

       Following execution of this Agreement, Buyer shall promptly file a
request for approval of the transaction with the Irish Ministry of Enterprise
and Employment.

                                  ARTICLE 7

             CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO CLOSE

       Buyer's obligation to purchase the Shares and to take the other
actions required to be taken by Buyer at the Closing is subject to the
satisfaction, on or before the Closing Date, of each of the following
conditions (any of which may be waived by Buyer, in whole or in part):

7.1    ACCURACY OF REPRESENTATIONS

       (a)    All of Sellers' representations and warranties in this
Agreement (considered both individually and collectively) must have been
accurate in all material respects as of the date of this Agreement, and must
be accurate in all material respects as of the Closing Date as if then made,
without giving effect to any supplement to the Disclosure Schedule.

7.2    SELLERS' PERFORMANCE

       All of the covenants and obligations that Sellers are required to
perform or to comply with pursuant to this Agreement on or before the Closing
Date (considered both collectively and individually) must have been duly
performed and complied with in all material respects.  Sellers shall have (i)
delivered each document that Section 2.6 requires them to deliver.

7.3    CONSENTS

       Each of the Governmental Authorizations and Consents identified in
Part 3.2(b) and Schedules 4.2(b) and (c) must have been obtained and must be
in full force and effect.

7.4    ADDITIONAL DOCUMENTS

       Each of the following documents shall have been delivered to Buyer:

       (a)    an opinion of Andrew O'Rorke, Hayes & Sons, dated the Closing
Date, in the form of EXHIBIT 7.4(a); and

       (b)    such other documents as Buyer may reasonably request for the
purpose of (i) evidencing the accuracy of any of Sellers' representations and
warranties, (ii) evidencing the performance by any Seller of, or the
compliance by any Seller with, any covenant or obligation required to be
performed or complied with by such Seller, (iii) evidencing the satisfaction
of any

                                    -30-
<PAGE>

condition referred to in this Article, or (iv) otherwise facilitating the
consummation or performance of any of the Contemplated Transactions.

7.5    NO PROCEEDINGS

       Since the date of this Agreement, there must not have been commenced
or Threatened against Buyer, or against any Related Person of Buyer, any
Proceeding (a) involving any challenge to, or seeking damages or other relief
in connection with, any of the Contemplated Transactions, or (b) that may
have the effect of preventing, delaying, making illegal, or otherwise
interfering with any of the Contemplated Transactions.

7.6    NO CLAIM REGARDING EQUITY OWNERSHIP OR SALE PROCEEDS

       There must not have been made or Threatened by any Person any claim
asserting that such Person (a) is the holder or the beneficial owner of, or
has the right to acquire or to obtain beneficial ownership of any stock of,
or any other voting, equity, or ownership interest in, an Acquired Company,
or (b) is entitled to all or any portion of the Purchase Price.

7.7    NO PROHIBITION

       Neither the consummation nor the performance of any of the
Contemplated Transactions will, directly or indirectly (with or without
notice or lapse of time), Contravene, or cause Buyer or any Related Person of
Buyer to suffer any adverse consequence under any applicable existing or
proposed Legal Requirement or Order.

                                     ARTICLE 8

                CONDITIONS PRECEDENT TO SELLERS' OBLIGATION TO CLOSE

       Sellers' obligation to sell the Shares and to take the other actions
required to be taken by Sellers at the Closing is subject to the
satisfaction, on or before the Closing Date, of each of the following
conditions (any of which may be waived by Sellers, in whole or in part):

8.1    ACCURACY OF REPRESENTATIONS

       All of Buyer's representations and warranties in this Agreement
(considered collectively and individually) must have been accurate in all
material respects as of the date of this Agreement and must be accurate in
all material respects as of the Closing Date as if then made.

8.2    BUYER'S PERFORMANCE

       All of the covenants and obligations that Buyer is required to perform
or to comply with pursuant to this Agreement on or before the Closing Date
(considered both collectively and individually) must have been performed and
complied with in all material respects.  Buyer shall have (i) executed and
delivered each of the documents required to be delivered by Buyer pursuant to
Section 2.6.

8.3    CONSENTS

                                    -31-
<PAGE>

       Each of the Governmental Authorizations and Consents identified in
Part 3.2(b) must have been obtained and must be in full force and effect, in
a form acceptable to Buyer.

8.4    ADDITIONAL DOCUMENTS

       Buyer must have caused to be delivered to Sellers such documents as
Sellers may reasonably request for the purpose of (i) evidencing the accuracy
of any representation or warranty of Buyer, (ii) evidencing the performance
by Buyer of, or the compliance by Buyer with, any covenant or obligation
required to be performed or complied with by Buyer, (iii) evidencing the
satisfaction of any condition referred to in this Article, or (iv) otherwise
facilitating the consummation of any of the Contemplated Transactions.

8.5    NO PROHIBITION

       There must not be in effect any Legal Requirement or Order that (a)
prohibits the consummation of the Contemplated Transactions, and (b) has been
adopted or issued, or has otherwise become effective, since the date of this
Agreement.

                                     ARTICLE 9

                                    TERMINATION

9.1    TERMINATION EVENTS

       This Agreement may, by notice given before or at the Closing and
subject to Section 9.2, be terminated:

       (a)    by either Buyer or Sellers if a material breach of any
provision of this Agreement has been committed by the other party or parties
and such breach has not been waived;

       (b)    by mutual consent of Buyer and Sellers; or

       (c)    by either Buyer or Sellers if the Closing has not occurred
(other than through the failure of any party seeking to terminate this
Agreement to comply fully with its obligations under this Agreement) on or
before August 31, 2000, or such later date as the parties may agree upon.

9.2    EFFECT OF TERMINATION

       Each party's right of termination under Section 9.1 is in addition to
any other rights it may have under this Agreement or otherwise, and the
exercise of such right of termination will not be an election of remedies.
If this Agreement is terminated pursuant to Section 9.1, all obligations of
the parties under this Agreement will terminate, except that the
representations in Sections 3.25 and 4.4 and the obligations in Sections
13.1, 13.3 and 13.12 will survive; PROVIDED, HOWEVER, that if this Agreement
is terminated by a party because of the breach of the Agreement by the other
party or because one or more of the conditions to the terminating party's
obligations under this Agreement is not satisfied as a result of the other
party's failure to comply with its

                                    -32-
<PAGE>

obligations under this Agreement, the terminating party's right to pursue all
legal remedies will survive such termination unimpaired.

                                  ARTICLE 10

                          INDEMNIFICATION; REMEDIES

10.1   SURVIVAL, RIGHT TO INDEMNIFICATION NOT AFFECTED BY KNOWLEDGE; WAIVER

       All representations, warranties, covenants, and obligations in this
Agreement, the Disclosure Schedule and other Schedules, the supplements to
the Disclosure Schedule, the certificates delivered pursuant to Section
2.6(a)(viii), and any other certificate or document delivered pursuant to
this Agreement will survive the Closing and the consummation of the
Contemplated Transactions, subject to the limitations set forth in Sections
3.26, 3.28, 10.4, 10.5 and 11.8.  The right to indemnification, payment of
damages or other remedy based on such representations, warranties, covenants,
and obligations will not be affected by any investigation conducted with
respect to, or any Knowledge acquired (or capable of having been acquired)
about, the accuracy or inaccuracy of or compliance with, any such
representation, warranty, covenant, or obligation.  The waiver of any
condition based on the accuracy of any representation or warranty, or on the
performance of or compliance with any covenant or obligation, will not affect
the right to indemnification, payment of damages, or other remedy based on
such representation, warranty, covenant, or obligation.

10.2   INDEMNIFICATION BY SELLERS

       Sellers, subject to the limitations set forth in Sections 3.26, 3.28,
10.4, 10.5 and 11.8, jointly and severally, other than Rionach Ui Ogain, Paul
McKeon, Fiona McKeon, Pearse Boyce, Robert Dennison, Thomas Cunningham,
Martin Quaid, Rory Stokes and Andrew O'Rorke, and Shannon Free Airport
Development Company Limited, and other than Declan Hogan, who will severally
but not jointly to the extent of consideration he has received, will
indemnify and hold harmless Buyer, the Acquired Companies, and their
respective Representatives, equity owners, controlling persons and affiliates
(collectively, the "BUYER INDEMNITEES") for, and will pay to the Buyer
Indemnitees the monetary value, up to an amount equal to the Aggregate
Purchase Price, of, any Adverse Consequences arising, directly or indirectly,
from or in connection with:

       (a)    any breach of any representation or warranty made by any Seller
in this Agreement, the Disclosure Schedule and supplements thereto, the
certificates delivered pursuant to Section 2.6(a)(viii), or any other
certificate or document delivered by Sellers pursuant to this Agreement;

       (b)    any breach by a Seller of any covenant or obligation of such
Seller in this Agreement;

       (c)    any Liability of an Acquired Company existing at or arising out
of a state of facts existing at or before the Closing Date, to the extent
that such Liability is not reflected or reserved

                                    -33-

<PAGE>

against in the Balance Sheet and Interim Balance Sheet, including Liabilities
arising from or relating to:

              (i)    any product shipped or manufactured by, or any services
provided by, an Acquired Company before the Closing Date;

              (ii)   any environmental, health, and safety liabilities;

              (iii)  any risk or actual incidence of illness, disability,
death or other injury to, or the contraction of any diseases by, any Person
(including any current or former employee) resulting from exposure to
hazardous materials, products, or other materials before the Closing Date,
without regard to when such injuries or diseases are first manifested; and

       (d)    any matter disclosed in Part 3.23.

       Notwithstanding the foregoing, no Seller, other than Michael
Fitzgerald, Monte Egeland, Ian Walter, David Jones, Alastair Froggett, and
Guy Waugh, shall be liable to indemnify Buyer under this Article 10 in an
amount exceeding that portion of the Aggregate Purchase Price allocated to
such Seller under this Agreement.

       Notwithstanding the foregoing, indemnification for breach of any
representation or warranty contained in Section 3.18 or for breach of any
covenant or obligation contained in Article 11 is governed by Article 11.

       Notwithstanding the foregoing, there shall be no limit to the amount
of indemnity that shall be paid to the Buyer Indemnitees by Michael
Fitzgerald, Monte Egeland, Ian Walter, David Jones, Alastair Froggett, and
Guy Waugh, for claims arising from fraud, willful concealment, dishonesty, or
breach of the duty of confidentiality or deliberate non-disclosure, nor shall
there be any limit as to time as to when an indemnity may be sought.

       (e) Notwithstanding any other provision of this Agreement, all
Sellers, including Rionach Ui Ogain, Paul McKeon, Fiona McKeon, Pearse Boyce,
Robert Dennison, Thomas Cunningham, Martin Quaid, Rory Stokes and Andrew
O'Rorke, and Shannon Free Airport Development Company Limited, shall be
liable under the provision of Paragraph 3.3 in the event of breach of the
warranty that Sellers are and will be on the Closing Date the record and
beneficial owners and holders of  the Shares, free and clear of all
encumbrances, set forth opposite their name on the Schedule of Sellers.

10.3   INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYER

       Buyer will indemnify and hold harmless Sellers, and will pay to
Sellers the monetary value of any Adverse Consequences arising, directly or
indirectly, from or in connection with:

       (a)    any breach of any representation or warranty made by Buyer in
this Agreement or in any certificate delivered by Buyer pursuant to this
Agreement;

       (b)    any breach by Buyer of any of its covenant or obligation in
this Agreement; and

                                    -34-
<PAGE>

       (c)    any and all Proceedings, demands or assessments incidental to
any of the matters set forth in Sections 10.3(a) and (b).

Notwithstanding the foregoing, indemnification for breach of a covenant or
obligation contained in Article 11 will be governed by Article 11.

10.4   TIME LIMITATIONS

       (a)    If the Closing occurs, Sellers will have no Liability for
breach of (i) a covenant or obligation to be performed or complied with
before the Closing Date or (ii) a representation or warranty, unless on or
before the second anniversary of the Closing Date, or on the seventh
anniversary of the Closing Date as to Article 11, Buyer notifies Sellers of a
claim specifying the factual basis of that claim in reasonable detail to the
extent then known by Buyer.  Notwithstanding the foregoing, a claim with
respect to Sections 3.3, or a claim for indemnification or reimbursement not
based upon any covenant or obligation to be performed or complied with before
the Closing Date, may be made at any time.

       (b)    If the Closing occurs, Buyer will have no Liability (for
indemnification or otherwise) for breach of (i) a covenant or obligation to
be performed or complied with before the Closing Date or (ii) a
representation or warranty, unless on or before the second anniversary of the
Closing Date, Sellers notify Buyer of a claim specifying the factual basis of
that claim in reasonable detail to the extent then known by Sellers.

       (c)    Proceedings based on breach of warranty must be instituted
within six (6) months after the warranty limitation period expires.

10.5   LIMITATIONS ON AMOUNT

       (a)    Sellers will have no liability with respect to the matters
governed by Section 10.2(a), or, to the extent relating to any failure to
perform or comply before the Closing Date, Section 10.2(b), until the total
monetary value of all Adverse Consequences with respect to such matters
exceeds US$25,000.

       (b)    Buyer will have no liability (for indemnification or otherwise)
with respect to the matters governed by clause (a) or (b) of Section 10.3
until the total monetary value of all Adverse Consequences with respect to
such matters exceeds US$25,000.

       (c)    This Section will not apply to any breach by a party of its
representations and warranties of which such party had Knowledge at any time
before the date on which such representation and warranty is made, or any
intentional breach by a party of any covenant or obligation, and such party
will be liable for all Adverse Consequences with respect to such breaches.

                                    -35-
<PAGE>

10.6   RIGHT OF SETOFF

       Upon notice to Sellers specifying in reasonable detail the basis for
its action, Buyer may set off any amount to which it may be entitled under
this Article and Article 11 against amounts otherwise payable under this
Agreement. The exercise of such right of setoff by Buyer in good faith,
whether or not ultimately determined to be justified, will not constitute a
breach under this Agreement.  Neither the exercise of nor the failure to
exercise such right of setoff will constitute an election of remedies or
limit Buyer in any manner in the enforcement of any other remedies that may
be available to it.

10.7   PROCEDURE FOR INDEMNIFICATION - DEFENSE OF THIRD-PARTY CLAIMS

       (a)    Promptly after receipt by a Person entitled to indemnity under
Section 10.2 or 10.3 (an "INDEMNIFIED PERSON") of notice of the assertion of
a third-party claim against it, the Indemnified Person will, if a claim is to
be made against a Person obligated to indemnify under such Section (an
"INDEMNIFYING PERSON"), give notice to the Indemnifying Person of the
assertion of such claim.  An Indemnified Person's failure to notify an
Indemnifying Person will not relieve the Indemnifying Person of any Liability
that it may have to the Indemnified Person.

       (b)    If notice is given to an Indemnifying Person of the
commencement of any Proceeding and the Indemnifying Person does not, within
ten days after the Indemnified Person's notice is given, give notice to the
Indemnified Person of its election to assume the defense of such Proceeding,
the Indemnifying Person will be bound by any determination made in such
Proceeding or any compromise or settlement effected by the Indemnified Person
in good faith.

       (c)    Sellers hereby consent to the non-exclusive jurisdiction of
any court stated in Section 13.11 in which a Proceeding is brought against
any Buyer Indemnitee for purposes of any claim that a Buyer Indemnitee may
have under this Agreement with respect to such Proceeding or the matters
alleged therein. Sellers agree that process may be served on Sellers with
respect to such a claim anywhere in the world.

                                  ARTICLE 11

                                 TAX MATTERS

11.1   INDEMNIFICATION OF SELLERS

       Buyer will indemnify and hold harmless Sellers from and against any
and all Taxes arising out of or relating to any breach of Buyer's covenants
contained in this Article.

11.2   INDEMNIFICATION OF BUYER

       Sellers, subject to the limitations set forth in Sections 3.26, 3.28,
10.4, 10.5 and 11.8, jointly and severally, except for Rinoach Ui Ogan, Paul
McKeon, Fiona McKeon, Pearse Boyce, Robert Dennison, Thomas Cunningham,
Martin Quaid, Rory Stokes and Andrew O'Rorke, and Shannon Free Airport
Development Company Limited, and other than Declan Hogan who will severally
but not jointly indemnify, will indemnify and hold harmless the Buyer
Indemnitees

                                    -36-
<PAGE>

from and against any and all Taxes, up to an amount equal to the Aggregate
Purchase Price, arising out of or relating to: (a) the pre-Closing period
that have not been paid prior to the Closing Date or reserved on the Balance
Sheet; and (b) any Adverse Consequences arising, directly or indirectly, from
or in connection with any breach of the representations and warranties
contained in Section 3.18 of this Agreement or of Sellers' covenants
contained in this Article.

       Notwithstanding the foregoing, no Seller, other than Michael
Fitzgerald, Monte Egeland, Ian Walter, David Jones, Alastair Froggett, and
Guy Waugh, shall be liable to indemnify Buyer under this Article 11 in an
amount exceeding that portion of the Aggregate Purchase Price allocated to
such Seller under this Agreement.

11.3   INDEMNIFICATION PROCESS

       In the event of a third-party claim for Taxes, Buyer will permit
Sellers, at their expense, to control any Proceeding relating to any taxable
year or period of the relevant Acquired Companies ending on or before the
Closing Date. Sellers will not settle or otherwise compromise any issue or
matter without Buyer's prior written consent.  If Sellers do not assume the
defense of any such Proceeding, Buyer may, without any effect to its right of
indemnification by Sellers under this Article, defend the same in such manner
as it may deem appropriate, including, but not limited to, settling such
Proceeding. Buyer will control any Proceeding relating to any taxable year or
period of an Acquired Company ending after the Closing Date.

11.4   TIMING OF PAYMENT; CHARACTERIZATION

       Payment of any amounts due under this Article will be made by Sellers
or Buyer, as the case may be, within 14 days of the receipt of reasonable
evidence establishing that such a payment is required.  All amounts paid by
Buyer or Sellers, as the case may be, by reason of Sections 10.2, 10.3, 11.1
and 11.2 will be treated to the extent permitted under applicable Legal
Requirements as adjustments to the Purchase Price for all Tax purposes.

11.5   TRANSACTIONAL TAXES

       All transfer, documentary, recording, notarial, sales, use,
registration, stamp and other similar Taxes or fees imposed by any authority
in connection with the Contemplated Transactions will be borne by the party
which is obligated to pay such Tax under applicable Legal Requirements.
Buyer and Sellers will cooperate in timely making and filing all Tax Returns
as may be required to comply with Legal Requirements.

11.6   TAX ELECTIONS

       From and after the date hereof, Sellers will not, without the prior
written consent of Buyer (which consent may not be unreasonably withheld),
make or revoke, or cause or permit to be made or revoked, any Tax election.

                                    -37-
<PAGE>

11.7   TAX RECORDS

       Sellers will make available to Buyer such records as Buyer may require
for the preparation of any Tax Return and such records as Buyer may require
for the defense of any Proceeding concerning such Tax Return.  Buyer will
make available to Sellers such records as Sellers may require for the
preparation of any Tax Return and such records as Sellers may require for the
defense of any Proceeding concerning any such Tax Return.

11.8   MISCELLANEOUS

       The covenants and agreements of the parties contained in this Article
and the representations and warranties contained in Section 3.18 as well as
Section VI of Part 3.27 will survive the Closing and will remain in full
force and effect until 7 years following the Closing.

                                  ARTICLE 12

                           SELLERS' REPRESENTATIVE

12.1   APPOINTMENT

       Each Employee Seller and Shannon Free Airport Development Company
Limited hereby designates and appoints Michael Fitzgerald ("EMPLOYEE SELLERS'
REPRESENTATIVE") as such Employee Seller's representative and
attorney-in-fact with full power and authority to act for and on behalf of
each Employee Seller with regard to, and each Non-employee Seller other than
Shannon Free Airport Development Company Limited hereby designates and
appoints Andrew O Rorke ("NON-EMPLOYEE SELLERS' REPRESENTATIVE") as such
Non-Employee Seller's representative and attorney-in-fact with full power and
authority to act for and on behalf of each Non-Employee Seller with regard to:

       (a)    approval and payment of fees and expenses not paid by the
Acquired Companies, if any, attributable to Sellers as a group with respect
to the sale of the Shares;

       (b)    execution, delivery and receipt on behalf of Sellers of all
notices, requests and other communications required or permitted to be given
under this Agreement;

       (c)    the adjustment procedure in Section 2.7 and matters arising in
connection with any adjustment to the Aggregate Purchase Price;

       (d)    termination of this Agreement pursuant to Section 9.1 and any
waiver pursuant to Section 2.3, Article 8, or Section 9.1;

       (e)    acceptance of service of process;

       (f)    all disputes or other matters between Sellers and Buyer in
connection with, arising out of, or relative to this Agreement after the
Closing Date;

       (g)    all matters pertaining to the Escrow Agreement, and all matters
to the Escrow Account, and to the funds in that account, including but not
limited to the establishment,

                                    -38-
<PAGE>

maintenance, deposits, withdrawals, payments and disbursements from that
account, and the signing of any and all documents on behalf of Sellers as to
the Escrow Agreement and Escrow Account; and

       (h)    all other matters specifically authorized by this Agreement.

This appointment and grant of power and authority is coupled with an
interest, is in consideration of the mutual covenants made in this Agreement,
is irrevocable, and shall not be terminated by the act of any Seller or by
operation of law.  Each Seller hereby consents to the taking of any actions
and the making of any decisions that this Agreement requires or permits
Employee Sellers' Representative or Non-employee Sellers' Representative to
take or make.

12.2   LIMITATION ON LIABILITY; INDEMNIFICATION

       Each Seller agrees that Sellers' Representative will have no Liability
to any Person for any good faith action or omission pursuant to this Article,
and each Seller will, on a proportionate basis in accordance with such
Seller's Initial Payment, indemnify and hold Sellers' Representative harmless
from and against any Adverse Consequences Sellers' Representative may suffer
as a result of any such action or omission.

12.3   RELIANCE

       Buyer will be entitled to rely upon any document delivered by a
Sellers' Representative as (a) being genuine and correct and (b) having been
duly signed or sent by such Sellers' Representative, and Buyer will not be
liable to any Seller for any action taken or omitted by Buyer in such
reliance.

12.4   DELEGATION; SUCCESSOR

       A Sellers' Representative may delegate his authority as Sellers'
Representative to any one or more representatives of Sellers for a fixed or
indeterminate period of time by notice to Buyer in accordance with Section
13.4. In the event of the death or incapacity of Sellers' Representative,
Sellers will select a successor representative or representatives, and Buyer
may rely upon any such designation if signed by such Sellers or their
successors whose interests aggregate not less than two-thirds of the relevant
Shares.

                                  ARTICLE 13

                              GENERAL PROVISIONS

13.1   EXPENSES

       Except as otherwise expressly provided in this Agreement, each party
to this Agreement will bear its respective expenses incurred in connection
with the preparation, execution, and performance of this Agreement and the
Contemplated Transactions, including all fees and expenses of its
Representatives, except that Buyer will pay the Seller's actual out of pocket
expenses not to exceed US$75,000 and not to exceed US$75,000 in actual due
diligence preparation costs. All such out of pocket expenses and costs shall
be evidenced by paid receipts

                                    -39-
<PAGE>

and shall be subject to audit. Sellers will use their best efforts to
minimize any fees, costs or other expenses incurred and will cause the
Acquired Companies not to incur any expenses in connection with this
Agreement in the aggregate in excess of $75,000 in out-of-pocket expenses and
$75,000 in due diligence preparation costs.

13.2   PUBLIC ANNOUNCEMENTS

       Sellers will not and will not permit the Acquired Companies to make
any disclosure of the Contemplated Transactions, except with the prior
written consent of Buyer or as required by Legal Requirements.  Sellers and
Buyer will consult with each other concerning the means by which the Acquired
Companies' employees, customers, suppliers and others having dealings with
the Acquired Companies will be informed of the Contemplated Transactions, and
Buyer will have the right to be present for any such communication.

13.3   CONFIDENTIALITY

       Between the date of this Agreement and the Closing Date, Buyer and
Sellers will maintain in confidence, and will cause the Representatives of
Buyer, Sellers, and the Acquired Companies to maintain in confidence, any
written, oral, or other information obtained in confidence from another party
or an Acquired Company in connection with this Agreement or the Contemplated
Transactions, unless (a) such information is already known to such party or
to others not bound by a duty of confidentiality or such information becomes
publicly available through no fault of such party, (b) the use of such
information is necessary or appropriate in making any filing or obtaining any
Consent required for the consummation of the Contemplated Transactions, or
(c) the furnishing or use of such information is required by Proceedings.  If
the Contemplated Transactions are not consummated, each party will return or
destroy as much of such written information as the other party may reasonably
request.

13.4   NOTICES

       All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed given to a party when (a)
delivered to the appropriate address by hand or by nationally recognized
overnight courier service (costs prepaid); (b) sent by facsimile or e-mail
with confirmation of transmission by the transmitting equipment; or (c)
received or rejected by the addressee, if sent by certified mail, return
receipt requested; in each case to the following (or to such other address,
facsimile number, e-mail address as a party may designate by notice to the
other parties):

       Employee Sellers:

                     Michael Fitzgerald
                     Sellers' Representative
       Address:      Kerry Innovation Centre
                     Clash, Tralee
                     Co. Kerry
                     Ireland
       Fax No.:      353-66-712-7999
       E-mail:       mike_fitzgerald@microcellular.net

                                    -40-
<PAGE>

       with a copy to:

                     Andrew O'Rorke, Esq.
       Attention:    Hayes & Sons
       Address:      Lavery House
                     Earlsfort Terrace
                     Dublin, Ireland
       Fax No.:      353-1-661-2163
       E-mail:       aororke@hayesons.ie

Non-employee Sellers:

                     Andrew O'Rorke, Esq.
       Attention:    Hayes & Sons
       Address:      Lavery House
                     Earlsfort Terrace
                     Dublin, Ireland
       Fax No.:      353-1-661-2163
       E-mail:       aororke@hayesons.ie

       Buyer:

                     interWAVE Communications International, Ltd.
       Attention:    Robin Foor, General Counsel
       Address:      312 Constitution Drive
                     Menlo Park, CA 94025
       Fax No.:      1-650-321-6381
       E-mail:       rfoor@iwv.com

       with a copy to:

                     Baker & McKenzie
       Attention:    Andre M. Saltoun
                     Eric H. Anderson
       Address:      660 Hansen Way
                     Palo Alto, CA 94304
       Fax No.:      1-650-856-9299
       E-mail:       andre.m.saltoun@bakernet.com
                     eric.anderson@bakernet.com

                                    -41-
<PAGE>

13.5   FURTHER ASSURANCES

       The parties agree to furnish upon request to each other such further
information, to execute and deliver to each other such other documents, and
to do such other acts and things as the other party may reasonably request
for the purpose of carrying out the intent of this Agreement and the
Contemplated Transactions.

13.6   SCHEDULES

       The Schedules identified in this Agreement, including the Disclosure
Schedule, are incorporated herein by reference and made a part of this
Agreement.  In the event of any inconsistency between the statements in the
body of this Agreement and those in the Disclosure Schedule (other than an
exception expressly set forth as such in the Disclosure Schedule with respect
to a specifically identified representation or warranty), the statements in
the body of this Agreement will control.

13.7   ENTIRE AGREEMENT AND MODIFICATION

       This Agreement supersedes all prior agreements among the parties with
respect to its subject matter (including any letter of intent or term sheet
previously signed by the parties) and constitutes (along with the documents
delivered pursuant to this Agreement) a complete and exclusive statement of
the terms of the agreement between the parties with respect to its subject
matter. This Agreement may not be amended, supplemented or otherwise modified
except by a written agreement executed by the party to be charged with the
amendment.

13.8   SEVERABILITY

       If any provision of this Agreement is held invalid or unenforceable by
any court of competent jurisdiction, the other provisions of this Agreement
will remain in full force and effect.  Any provision of this Agreement held
invalid or unenforceable only in part or degree will remain in full force and
effect to the extent not held invalid or unenforceable.

13.9   ASSIGNMENTS, SUCCESSORS, AND NO THIRD PARTY RIGHTS

       No party may assign any of its rights or delegate any of its
obligations under this Agreement without the prior written consent of the
other parties, except that Buyer may assign any of its rights and delegate
any of its obligations under this Agreement to any subsidiary of Buyer or to
any subsequent acquirer of the Shares or all or substantially all of the
business of the Acquired Companies.  Subject to the preceding sentence, this
Agreement will apply to, be binding in all respects upon, and inure to the
benefit of each Seller's heirs, executors, administrators and permitted
assigns and Buyer's successors and permitted assigns.

13.10  WAIVER

       The rights and remedies of the parties to this Agreement are
cumulative and not alternative.  Neither any failure nor any delay by any
party in exercising any right, power, or privilege under this Agreement or
any of the documents referred to in this Agreement will

                                    -42-
<PAGE>

operate as a waiver thereof, and no single or partial exercise of such right,
power, or privilege will preclude any other or further exercise thereof.

13.11  ARBITRATION

       All disputes arising out of or in connection with this Agreement shall
be finally settled under the Rules of Arbitration of the International
Chamber of Commerce by a single arbitrator appointed in accordance with such
Rules.  The place of arbitration will be San Francisco, California, or
London, England or Dublin, Ireland.  The language of the arbitration will be
English.  Process in any such arbitration Proceeding may be served on any
party anywhere in the world by notice given to the party in accordance with
Section 13.4.

       Notwithstanding the foregoing, in the event Buyer reasonably believes
it is necessary to protect the Intellectual Property or to enforce any
restrictive covenant or confidentiality agreement set forth in this Agreement
or in any employment contract or other contract, Buyer or any Acquired
Company shall have the right to initiate a court action, without recurring
first to arbitration, in order to protect such rights or enforce such
covenants or agreements, including any action for injunctive relief.  In
connection with any such action, Sellers hereby expressly consent to the
non-exclusive jurisdiction of the federal and state courts located in the
State of California, the courts of England, and the courts of Ireland.

13.12  GOVERNING LAW

       This Agreement will be governed by and construed under the laws of
Ireland without regard to conflict of laws principles that would require the
application of any other law.

13.13  COUNTERPARTS

       This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of
which, when taken together, will be deemed to constitute one and the same
agreement.

                                    -43-

<PAGE>

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as
of the date indicated in the first sentence of this Agreement.

INTERWAVE COMMUNICATIONS INTERNATIONAL, LTD.

By:
   ----------------------------------
PRISCILLA LU
CHAIRMAN AND CHIEF EXECUTIVE OFFICER

-------------------------------------     ------------------------------------
NAME OF SELLER:  MICHAEL FITZGERALD       NAME OF SELLER:   MONTE EGELAND
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

-------------------------------------     ------------------------------------
NAME OF SELLER:  IAN WALTER               NAME OF SELLER:  DAVID JONES
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

-------------------------------------     ------------------------------------
NAME OF SELLER:  ALASTAIR FROGGETT        NAME OF SELLER:  GUY WAUGH
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

                                    -44-
<PAGE>

-------------------------------------     ------------------------------------
NAME OF SELLER:  GLYN TURNER              NAME OF SELLER:  DAN LAMBERT
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

-------------------------------------     ------------------------------------
NAME OF SELLER:  DENNIS HERLIHY           NAME OF SELLER:  TONY DUNNE
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

-------------------------------------     ------------------------------------
NAME OF SELLER:   BART KANE               NAME OF SELLER:  DECLAN HOGAN
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

-------------------------------------     ------------------------------------
NAME OF SELLER:  RIONACH UI OGAIN         NAME OF SELLER:    P.  MCKEON
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

                                    -45-
<PAGE>

-------------------------------------     ------------------------------------
NAME OF SELLER:   FIONA MCKEON
in Seller's individual capacity

Address:
        -----------------------------

        -----------------------------

-------------------------------------     ------------------------------------
NAME OF SELLER:   PEARSE BOYCE            NAME OF SELLER:   ROBERT DENNISON
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

-------------------------------------     ------------------------------------
NAME OF SELLER:   THOMAS CUNNINGHAM       NAME OF SELLER:   MARTIN QUAID
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

-------------------------------------     ------------------------------------
NAME OF SELLER:   RORY A. STOKES          NAME OF SELLER:   ANDREW O'RORKE
in Seller's individual capacity           in Seller's individual capacity

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

                                    -46-
<PAGE>

-------------------------------------     ------------------------------------
NAME OF SIGNER: SCOTT MEADER              NAME OF SIGNER:
NAME OF SELLER:   INNOVAP                 NAME OF SELLER:  SHANNON FREE AIRPORT
                                          DEVELOPMENT COMPANY LIMITED
in Signer's capacity as:                  in Signer's capacity as:
___________ of Innovap                    ___________ of Shannon Free Airport
                                          Development Company Limited

Address:                                  Address:
        -----------------------------                -------------------------

        -----------------------------                -------------------------

ACCEPTANCE AND AGREEMENT OF EMPLOYEE SELLERS' REPRESENTATIVE

       The undersigned, being the Employee Sellers' Representative appointed
in Section 12.1 of the foregoing Stock Purchase Agreement, agrees to serve as
Employee Sellers' Representative and to be bound by the terms of the Stock
Purchase Agreement pertaining to that role.

Date:
     --------------------------------     ------------------------------------
                                          MICHAEL FITZGERALD

ACCEPTANCE AND AGREEMENT OF NON-EMPLOYEE SELLERS' REPRESENTATIVE

       The undersigned, being the Non-Employee Sellers' Representative
appointed in Section 12.1 of the foregoing Stock Purchase Agreement, agrees
to serve as Non-Employee Sellers' Representative and to be bound by the terms
of the Stock Purchase Agreement pertaining to that role.

Date:
     --------------------------------     ------------------------------------
                                          ANDREW O RORKE

                                    -47-
<PAGE>

<TABLE>
<CAPTION>

                             SCHEDULE OF SELLERS
------------------------------------------------------------------------------
                 NAME             SHARES                      ADDRESS
                                  OWNED
------------------------------------------------------------------------------
                           Holders of Ordinary Shares
------------------------------------------------------------------------------
        <S>                       <C>                <C>
        Michael Fitzgerald           60,000
------------------------------------------------------------------------------
        Monte Egeland                60,000
------------------------------------------------------------------------------
        Ian Walter                   60,000
------------------------------------------------------------------------------
        David Jones                  60,000
------------------------------------------------------------------------------
        Alastair Froggett            60,000
------------------------------------------------------------------------------
        Guy Waugh                    60,000
------------------------------------------------------------------------------
        Glyn Turner                  12,000
------------------------------------------------------------------------------
        Dan Lambert                   2,400
------------------------------------------------------------------------------
        Denis Herlihy                 6,000
------------------------------------------------------------------------------
        Tony Dunne                    4,200
------------------------------------------------------------------------------
        Bart Kane                     4,200
------------------------------------------------------------------------------
        Declan Hogan                 15,750
------------------------------------------------------------------------------
        Rionach Ui Ogain             15,750
------------------------------------------------------------------------------
        P. McKeon                    15,750
------------------------------------------------------------------------------
        Fiona McKeon                 15,750
------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------
                 NAME             SHARES                      ADDRESS
                                  OWNED
------------------------------------------------------------------------------
        Declan Hogan                 21,750
------------------------------------------------------------------------------
        Pearse Boyce                  9,000
------------------------------------------------------------------------------
        Robert Dennison               7,740
------------------------------------------------------------------------------
        Thomas Cunningham             6,000
------------------------------------------------------------------------------

------------------------------------------------------------------------------
        Rory A. Stokes                6,000
------------------------------------------------------------------------------
        Andrew O'Rorke                3,600
------------------------------------------------------------------------------
        Innovap (Scott Meader)        2,580
------------------------------------------------------------------------------
                         Holders of Ordinary 'A' Shares
------------------------------------------------------------------------------
 Shannon Development         122,333
------------------------------------------------------------------------------
 TOTAL SHARES                621,053
------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                      PART 2.3

                         AGGREGATE PURCHASE PRICE BREAKDOWN

<PAGE>

                                      PART 2.4

                    OPTION CANCELLATION AND ASSUMPTION BREAKDOWN

<PAGE>

                                      PART 3.1

              COPIES OF ORGANIZATIONAL DOCUMENTS OF ACQUIRED COMPANIES

<PAGE>

The following are disclosed.  The paragraph numbers stated below are for
convenience of reference only and refer to clauses in Article 3 of the Stock
Purchase Agreement.  Buyer expressly accepts that disclosure of any
particular matter by reference to a specific paragraph is to be regarded as a
disclosure in respect of each and every other paragraph as far as same shall
be applicable and as disclosures to the warranties contained in Part 3.27 of
the Agreement.

<TABLE>

 <S>       <C>
------------------------------------------------------------------------------
 General   Schedule  Microcellular Systems Inventory dated 31st March 2000
------------------------------------------------------------------------------
 General   Schedule Microcellular Systems Aged Debtors as at 31st March 2000
           showing a total value $2,809,892
------------------------------------------------------------------------------
 General   Schedule Microcellular Systems Pre-payment Schedules dated 31st
           March 2000
------------------------------------------------------------------------------
 General   Schedule Microcellular Systems Limited A/P Ageing Detail as of 31st
           March 2000
------------------------------------------------------------------------------
 General   Microcellular Systems Limited Accruals Schedule dated 31st March
           2000
------------------------------------------------------------------------------
 General   Microcellular Systems Limited Sales Backlog as at 31st March 2000
------------------------------------------------------------------------------
 General   Letter dated 1st May 2000 to Simms Duncan from Monte Egeland
------------------------------------------------------------------------------
 General   Schedule ID1 Text describing locations
------------------------------------------------------------------------------
 General   VIIB4 List of Competitors Nos. 1 - 7
------------------------------------------------------------------------------
 General   VIIB5 Press Kit, Current Brochures, Standard Price List and Video
------------------------------------------------------------------------------
 General   Schedule headed Microcellular Systems Limited Customer Contact List
           detailing Customer Phone, Fax and Contact Addresses and the turnover
           to March 2000 - This list top 15 customers Microcellular Systems
------------------------------------------------------------------------------
 General   Microcellular Systems Profit & Loss Account quarter ended 31st
           December 1999
------------------------------------------------------------------------------
 General   Microcellular Systems Profit & Loss Account quarter ended 31st March
           2000
------------------------------------------------------------------------------
 General   Microcellular Systems Profit & Loss Account quarter ended 30th
           September 1999
------------------------------------------------------------------------------
 General   Letter dated 6th May 2000 to Simms Duncan from Monte Egeland
           enclosing additional material requested by Robin Foor
------------------------------------------------------------------------------
 General   Schedule showing Microcellular Systems USA 401K profit sharing plan
           and trust client summary for 1st January 2000 to 31st March 2000
------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>

 <S>       <C>
------------------------------------------------------------------------------
 General   Booklet containing documentation relating to a company purchase from
           ADC on 8th July 1999.   Index of Contents attached
</TABLE>

                                  CLOSING CHECKLIST
              SALE OF SHARES OF ADC MICROCELLULAR SYSTEMS LIMITED (UK)
                          BY ADC TELECOMMUNICATIONS, INC.
                     TO MICROCELLULAR SYSTEMS LIMITED (IRELAND)

           CLOSING INFORMATION

           Closing Date:  July 8, 1999

           Parties:       ADCT (ADC Telecommunications, Inc.)
                          ADCMS (ADC Microcellular Systems Limited)
                          Microcellular Ireland (Microcellular Systems
                          Limited)

           PRE-CLOSING TRANSFERS/ACTIONS:

           1.     Assumption Agreement (by Wireless from ADCMS)
                         Transferring any excluded liabilities

           2.     Assumption Agreement (by ADCMS from ADCT and all Affiliates)
                         Transferring all GMS Business liabilities

           3.     Redesignation of San Diego employees to ADCMS

           4.     Corporate Documents (ADCMS)
                  i)     Shareholder Resolutions Approving Name Change
                  ii)    Resolutions of Board Approving Transaction

           TRANSACTION/CLOSING DOCUMENTS:

           a.     Share Purchase Agreement

           b.     Disclosure Schedules
                  Schedule 3(g) -      Record and Beneficial Owner of Shares
                  Schedule 3(h) -      Existing ADCMS Assets
                  Schedule 6(d) -      Listing of ADCMS Employees
                  Schedule 6(e) -      Terms of Beijing Sublease
                  Schedule 6(i) -1-    Bill of Sale and Receipt for Debt
                                       Payment (Wireless/ADCMS)
                         List of Excluded Assets
                         List of Transferred Assets
                  Schedule 6(i) -2-    List of Jobs to Add to Wireless Transfer
                  Schedule 6(m) -      Employee Incentives

           c.   Bill of Sale and Receipt for Debt Payment (Wireless Asset
                Transfers)
                     Listing of Excluded Assets
                     Listing of Transferred Assets

           d.   Intercompany Financing Debt Waiver Agreement

           e.   Promissory Note
------------------------------------------------------------------------------
<PAGE>

------------------------------------------------------------------------------
           f.   Security Agreement
                     Collateral Description
                     Location of Collateral Listing

           g.   UCC Financing Statements
                     California UCC - 1

           h.   Officer's Certificate (Microcellular Ireland)
                     Satisfaction of Closing Conditions

           i.   Officer's Certificate (ADCT)
                     Satisfaction of Closing Conditions

           j.   Secretary's Certificate (Microcellular Ireland)
                     Incumbency of Officers and Directors
                     Certification of Resolutions

           k.   Certified Memorandum of Incorporation
                     Confirmation of Authority to Conduct Business

           l.   Resignation of ADCMS Officers and Directors (excluding Mike
                Fitzgerald)
                     Schofield
                     Baker
                     Fisher
                     Bodart

           m.   Form 288B Change in Director Form

           n.   Stock Transfer Form (ADCMS) in favour of Microcellular Ireland

           o.   Reconciliation of Payments
------------------------------------------------------------------------------

<TABLE>
 <S>       <C>
------------------------------------------------------------------------------
 3.1       Articles of Incorporation of Microcellular Systems U.S.A.
------------------------------------------------------------------------------
 3.1       Fax dated 24th January 2000 to George Schultz from Monte Egeland
           requesting Mike Fitzgerald and David Jones to be added to the list
           of directors of the company
------------------------------------------------------------------------------
 3.1       Schedule IC1 List of Directors for Ireland Holding Company and
           Ireland, U.K. and U.S.A. operating companies
------------------------------------------------------------------------------
 3.1       Schedule IC2 Name and Address of Microcellular Systems Limited
           General Council in Ireland
------------------------------------------------------------------------------
 3.1       Schedule IC3 Corporate Structure of Microcellular Systems Limited
           and subsidiary companies
------------------------------------------------------------------------------
 3.1       Schedule ID4 China Representative Office Registration Certificate
------------------------------------------------------------------------------
 3.1       Letter dated 17th April 2000 from Monte Egeland "To Whom it May
           Concern" Subject: Official Statement of Relationship between ADC and
           Microcellular Systems and Certificate of Incorporation and Change of
           Name Company No. 3348785 re ADC Microcellular Systems Limited
------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------
 3.1.(b)      Certificate of Incorporation and Change of Name for ADC
              Microcellular Systems Limited
------------------------------------------------------------------------------
 3.1.(b)      Memorandum & Articles of Association of ADC Microcellular Systems
              Limited (U.K. Company)
------------------------------------------------------------------------------
 3.1.(b)      Certificate of Incorporation and Change of Name Marksway Limited
------------------------------------------------------------------------------
 3.1.(b)      Memorandum & Articles of Association of Microcellular Systems
              Limited Company No. 303626
------------------------------------------------------------------------------
 3.1.(b)      Certificate of Incorporation of Microcellular Systems Limited,
              Registration No. 303626
------------------------------------------------------------------------------
 3.1.(b)      Certificate of Incorporation of Microcellular Systems (Ireland)
              Limited, Registration No. 312802
------------------------------------------------------------------------------
 3.1.(b)      Memorandum & Articles of Association of Microcellular Systems
              (Ireland) Limited
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.1(d)       Copy letter dated 14th February 2000 from Microcellular Systems
              Limited to The Board of Directors Proplyon Limited signed by Mike
              Fitzgerald and Declan Hogan
------------------------------------------------------------------------------
 3.1(d)       Letter dated 17th February 2000 from Hogan Associates addressed
              to Mike Fitzgerald
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.3          Schedule of Shareholders and related percentage shareholdings
              each
------------------------------------------------------------------------------
 3.3          Schedule showing all Treasury Stock
------------------------------------------------------------------------------
 3.3          Copy of Subscription Agreement re "A" Ordinary Shares between
              Shannon Free Airport Development Company Limited and
              Microcellular Systems Limited
------------------------------------------------------------------------------
 3.3/3.10(a)  Put and Call Option Agreement between Microcellular Systems
              Limited and Shannon Free Airport Development Company Limited
              dated 29th September 1999
------------------------------------------------------------------------------
 3.3/3.10(a)  Copy of Option Agreement entered into between Microcellular
              Systems Limited and Pearse Boyce
------------------------------------------------------------------------------
 3.33.10(a)   Copy of Option Agreement between Microcellular Systems Limited
              and Robert Dennison
------------------------------------------------------------------------------
 3.3/3.10(a)  Copy of Option Agreement between Microcellular Systems Limited
              and Andrew O Rorke
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.5          Microcellular Systems U.S.A. Minutes of Board Meetings held 4th
              February 2000 at 12.00 a.m.
------------------------------------------------------------------------------
 3.5          Minutes of Microcellular Systems Board of Directors Meeting,
              Cannes, France, 3rd February 2000
------------------------------------------------------------------------------
 3.5          Microcellular Systems Limited Minutes of Board of Directors held
              at Centennial Court, Minutes signed on 21st January 2000
------------------------------------------------------------------------------
 3.5          Minutes of Board of Directors Meeting of Microcellular Systems
              Limited held on 19th January 2000 at 10.00 a.m.
------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------
 3.5          Microcellular Systems Limited's company number 3345785 Minutes of
              written Resolution of sole shareholder
------------------------------------------------------------------------------
 3.5          Microcellular systems Board of Directors Meeting Tralee, Co.
              Kerry 29th September 1999
------------------------------------------------------------------------------
 3.5          Letter dated 13th March 2000 from Companies House, accounts
              reminder notice, this states the accounts from 1st August 1998 to
              31st July 1999 must be delivered to Companies House no later than
              31st May 2000
------------------------------------------------------------------------------
 3.5          Companies House Penalty Notice Invoice amount L1,000 dated 24th
              March 00
------------------------------------------------------------------------------
 3.5          Letter dated 31st January 2000 from Companies House addressed to
              Microcellular Systems Limited
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.11/3.15(a)(ii)  Copy Lease Agreement between Kerry Innovation Centre, Tralee
                   and Mike Fitzgerald of Microcellular Systems Limited.
------------------------------------------------------------------------------
 3.11/3.15(a)(ii)  VIB USA Lease at 6640 & 6650 Lusk Boulevard, San Diego
------------------------------------------------------------------------------
 3.11/             China Lease for Representative Office at East Gate Plaza in
 3.15(a)(ii)       Beijing (in Chinese)
------------------------------------------------------------------------------
 3.11/3.15(a)(i)   Reference 8a Business Property Statement
------------------------------------------------------------------------------
 3.11/3.15(a)(ii)  Copy of Modified Triple Net Lease dated 3rd April 2000 less
                   RAOPP Acquisition Corps to Lessee Microcellular Systems USA
------------------------------------------------------------------------------
 3.11/             Letter from Shannon Development to Bart Kane confirming
 3.15 (a)(ii)      allocation of 5,000 square feet of office space at
                   Enterprise House for Microcellular Systems Limited
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.15          Letter dated 7th February 2000 from Inovapp Incorporated to
               Microcellular Systems Kerry Innovation Centre setting out
               statement of work to be carried out by Inovapp
------------------------------------------------------------------------------
 3.15          Reference 11a Copy of Contract from Best Maintenance Inc.
------------------------------------------------------------------------------
 3.15          Estimate / Contract for Maintenance Services dated 18th April
               2000
------------------------------------------------------------------------------
 3.15          Copy Contract from Edison Security Services dated 17th April
               2000
------------------------------------------------------------------------------
 3.15          401K Record Keeping Services copy of Share Purchase Agreement
               between ADC Telecommunications and Microcellular Systems
               completed on 8th July 1999 with schedule enclosed showing
               contents
------------------------------------------------------------------------------
 3.15          Copy of Maintenance Agreement for Minolta Business Systems
               signed by Sharon Rosario on 15th March 2000
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.15(a)       Copy Guarantee and Indemnity between Microcellular Systems
               Limited and Ulster Bank Markets Limited signed by Mike
               Fitzgerald, witnessed by Bart Kane
------------------------------------------------------------------------------
 3.15(a)       Guarantee of obligations and indemnification Agreement between
------------------------------------------------------------------------------

<PAGE>
------------------------------------------------------------------------------
               Microcellular Systems U.S.A. and Ulster Bank Markets Limited
               executed 26th October 1999 signed by Mike Fitzgerald
------------------------------------------------------------------------------
 3.15(a)       Copy Mortgage Debenture between Microcellular Systems Limited
               registered number 3348785 and Ulster Bank Markets Limited signed
               by Mike Fitzgerald, witness Bart Kane
------------------------------------------------------------------------------
 3.15(a)       Copy letter dated 26th October 1999 from Ulster Bank Markets to
               Declan Hogan
------------------------------------------------------------------------------
 3.15(a)       Copy Facility Letter dated 26th October 1999 for Microcellular
               Systems Limited: Address: 13, Herbert Street, Dublin 2.
------------------------------------------------------------------------------
 3.15(a)       Copy Financing Statement for Microcellular Systems U.S.A. signed
               by Mike Fitzgerald
------------------------------------------------------------------------------
 3.15(a)       Exhibit "A" to U.C.C. - 1 Financing Statement Microcellular
               Systems U.S.A.
------------------------------------------------------------------------------
 3.15(a)       Copy of signing pages of Facility Letter dated 26th October 1999
               from Ulster Bank Markets, Corporate Banking signed by Mike
               Fitzgerald, Ian Walter on behalf of Microcellular Systems
               Limited, ADC Microcellular Systems Limited and Microcellular
               Systems U.S.A.
------------------------------------------------------------------------------
 3.15(a)       Copy Document Charge and Deposit between Microcellular Systems
               Limited and Ulster Bank Markets Limited, currently being
               finalised May 2000
------------------------------------------------------------------------------
 3.15(a)       Copy Assignment between Microcellular Systems Limited and Ulster
               Bank Markets Limited comment hand-written currently being
               finalised May 2000
------------------------------------------------------------------------------
 3.15(a)       Letter dated 25th April 2000 addressed to The Directors,
               Microcellular Systems Limited, 13, Herbert Street setting out
               terms and conditions applicable to facilities (a) and (b) from
               Ulster Bank Markets
------------------------------------------------------------------------------
 3.15(a)       Letter dated 25th April 2000 to The Directors, Microcellular
               Systems Limited confirming Ulster Bank Markets opening facility
               of U.S.$1.5 million
------------------------------------------------------------------------------
 3.15(a)       Letter dated 8th April 2000 addressed to Mr. Jack Burke, Company
               Secretary, Shannon Development, Shannon, Co. Clare re research
               technology and innovation initiative - RTI.
------------------------------------------------------------------------------
 3.15(a)       Letter dated 8th March 2000 to Mr. Mike Fitzgerald detailing
               estimated cost of projects to be grant-aided and detailing
               grants applicable to each project
------------------------------------------------------------------------------
 3.15(a)       Copy letter of acceptance signed by Mike Fitzgerald of related
               grant of IRL125,000
------------------------------------------------------------------------------
 3.15(a)       Shannon Development Schedule of General Conditions applying to
               RTI funded by European Operational Programme 1994-1999
------------------------------------------------------------------------------
 3.15(a)       Copy Employment Grant Agreement maximum grant IRL270,000 between
               Shannon Free Airport Development Company Limited and
               Microcellular Systems Limited signed by Mike Fitzgerald
------------------------------------------------------------------------------
 3.15(a)       Copy letter from Jack Burke, Company Secretary, Shannon
               Development outlining proposed Management Development Grant
               Module IV dated 6th December 1999
------------------------------------------------------------------------------
 3.15(a)       Letter dated 21st December 1999 addressed to Jack Burke from
               Mike Fitzgerald confirming the acceptance of the Management
               Development Grant
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.15(a)(i)    Pico node Service Agreement Project Agreement No. 020544 dated
               17th March 2000 between (a) Nortel Networks plc. and (b)
               Microcellular Systems Limited
------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------
 3.15(a)(i)    Schedule IC7 Letter of Intent with Superway dated 17th August
               1999
------------------------------------------------------------------------------
 3.15(a)(i)    Schedule IC7 Memorandum of Understanding between Microcellular
               Systems Limited and Composite Optics Incorporated
------------------------------------------------------------------------------
 3.15(a)(i)    IIC5 TELOS Microcellular OEM Purchase re Seller Agreement
               (draft)
------------------------------------------------------------------------------
 3.15(a)(i)    IID3 Tajikistan (Telos) financing for hiPower BSS Network.
------------------------------------------------------------------------------
 3.15(a)(i)    China - Henan Van Contract, Superway/Hubei Contract USA-
               Interwave Services contract; USA-Superway LOI for JV
------------------------------------------------------------------------------
 3.15(a)(i)    VIIB2 China - Distributor agreement with Superway, MOU with
               Letter of Authorisation for Superway, Agent Agreement - Beijing
               Link; USA - Synopsys Consulting Agreement (draft), Letter of
               Authorisation for Vidar-SMS; China - Agents Agreements -
               Zheijiang Signal
------------------------------------------------------------------------------
 3.15(a)(i)    Copy of Contract between ADC Microcellular Systems and Barakash
               Telecommunications Company Somalia Limited for the supply of GSM
               Macro Equipment for the Hargeysa and Bososa Networks in Somalia.
               This is signed by Michael Fitzgerald on 5th January 1999 on
               behalf of ADC Telecommunications Inc.
------------------------------------------------------------------------------
 3.15(a)(i)    Copy of Frame Agreement between Cosmote - Mobile
               Telecommunications SA and Microcellular Systems S.A. for the
               supply of GSM Wireless Office Networks dated March 2000 signed
               by Alastair Froggett on 31st March 2000
------------------------------------------------------------------------------
 3.15(a)(i)    OEM Purchase Re-Seller Agreement between Microcellular Systems
               and Telus Engineering Inc. dated 8th June 2000 signed by Monte
               Egeland.
------------------------------------------------------------------------------
 3.15(a)(i)    Copy of Professional Services Agreement dated 30th April between
               African Wireless Inc. the Dellaware Corporation and
               Microcellular Systems Limited.
------------------------------------------------------------------------------
 3.15(a)(i)    Copy of OEM Purchase Agreement between ADC Telecommunications
               Sales Inc. and Microcellular Sales Systems Limited signed by
               Monte Egeland dated 21st April 2000
------------------------------------------------------------------------------
 3.15(a)(i)    Copy of General Terms and Conditions regarding hardware and
               software shipped by Ericsson.
------------------------------------------------------------------------------
 3.15(a)(i)    Copy of Order acknowledgement from Ericsson totalling $7,677.
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.15(a)(vi)   Reciprocal Confidentiality Agreement between Microcellular
               Systems Limited and SSBCCSCH
------------------------------------------------------------------------------
 3.15(a)(vi)   Non-Disclosure Agreement dated 14th January 2000 between
               Ericsson Consulting Limited and Microcellular Systems Limited
------------------------------------------------------------------------------
 3.15(a)(vi)   Microcellular Systems Limited reciprocal Confidentiality
               Agreement between Microcellular Systems Limited and Advent
               Communications Limited
------------------------------------------------------------------------------
 3.15(a)(vi)   Reciprocal Confidentiality Agreement between Microcellular
               Systems Limited and Mega Hertz Communications Limited
------------------------------------------------------------------------------
 3.15(a)(vi)   Reciprocal Confidentiality Agreement between Microcellular
               Systems Limited and Dytecna Limited
------------------------------------------------------------------------------
 3.15(a)(vi)   Confidentiality Non-Disclosure Agreement between Microcellular
               Systems Limited and Interwave Communications International
               Limited
------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------
 3.16          Schedule showing Top 10 Customer Accounts starting with Cosmote
------------------------------------------------------------------------------
 3.16          VIIA1 Top Five Suppliers (Matman. P...-Com. Will-burt Innovapp,
               J-Mark
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.17          VA7 Application for Directors and Officers Insurance (verbal
               approval for coverage received 5th January 2000
------------------------------------------------------------------------------
 3.17          Admiral Insurance Company Policy No. A99AG06958 Commercial
               General Liability coverage.
------------------------------------------------------------------------------
 3.17          Copy Policy Workers Compensation Employers Liability Insurance
               Policy, Policy No. NWC636028
------------------------------------------------------------------------------
 3.17          Golden Eagle Insurance Corporation Policy No. CCP552876
------------------------------------------------------------------------------
 3.17          Fax dated 13th January 2000 from Southern California Regional
               Office confirming all risk of direct physical loss from an
               external cause
------------------------------------------------------------------------------
 3.17          Schedule of Insurance Policies to be PAGE 4
------------------------------------------------------------------------------
 3.17          Sigma Policy International Advantage Commercial Insurance
               Policy, Policy No. PHF054891
------------------------------------------------------------------------------
 3.17          Printout of payments made to insurance company Microcellular
               Systems Limited with insurance detail 1st July 1999 through 1st
               May 2000
------------------------------------------------------------------------------
 3.17          Sigma Insurance Company of Europe, Liability Policy
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.18          Reference 8a Employers Quarterly Federal Tax Return to 30th
               September 1999
------------------------------------------------------------------------------
 3.18          Schedule ID3 EIN for US Corporation
------------------------------------------------------------------------------
 3.18          VIIIA USA - Employer Withholding Tax
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.19(a)             Sharon Ravario 6,000 share options
------------------------------------------------------------------------------
 3.19(a)             Dan Lambert 6,000 share options
------------------------------------------------------------------------------
 3.19(a)             Suresh Koppolu 6,000 share options
------------------------------------------------------------------------------
 3.19(a)             James Kempton 6,000 share options
------------------------------------------------------------------------------
 3.19(a)             Paul Williams 300 share options
------------------------------------------------------------------------------
 3.19(a)             Betty Zhao 300 share options
------------------------------------------------------------------------------
 3.19(a)             Jerry Hong 300 share options
------------------------------------------------------------------------------
 3.19(a)             Carol Zhang 1,500 share options
------------------------------------------------------------------------------
 3.19(a)             Frank Lieman Jnr. 600 share options
------------------------------------------------------------------------------
 3.19(a)/            Section VB1 USA 401K Plan Paycheck and Compliance Testing
 3.19(c)(ii)         documentation
------------------------------------------------------------------------------
                     Each letter sets out the conditions applicable to each
                     option
------------------------------------------------------------------------------
 3.19(a)/(c)(ii)     Pay cheques 401K Record Keeping services employees census
                     report
------------------------------------------------------------------------------
 3.19(a)/(c)(ii)     Schedule pay cheques Record Keeping Services actual
                     deferral and contribution percentage tests.
------------------------------------------------------------------------------
 3.19(a)/3.19(c)(v)  VB2 USA Medical/Dental Plans and Section 125 Flexible
                     Benefit Plan
------------------------------------------------------------------------------

<PAGE>

------------------------------------------------------------------------------
 3.19(b)         Alan Brown Inc. Consulting Agreement signed by Monte Egeland
                 dated 21st April 2000
------------------------------------------------------------------------------
 3.19(b)         Alan Brown Inc. Consulting Agreement signed by Monte Egeland
                 dated 4th May 2000
------------------------------------------------------------------------------
 3.19(b)         Company Organisation Chart setting out list of employees and
                 positions within the Company
------------------------------------------------------------------------------
 3.19(b)         Copy Service Contract signed by Alastair Froggett dated 29th
                 September 1999
------------------------------------------------------------------------------
 3.19(b)         Copy Service Contract signed by David Jones
------------------------------------------------------------------------------
 3.19(b)         Copy Service Contract signed by Ian Walter
------------------------------------------------------------------------------
 3.19(b)         Copy Service Contract signed by Mike Fitzgerald
------------------------------------------------------------------------------
 3.19(b)         Copy Service Contract signed by Monte Egeland
------------------------------------------------------------------------------
 3.19(b)         COPY ADC Microcellular Systems Employee Handbook dated 21st
                 April 1998
------------------------------------------------------------------------------
 3.19(b)         VA8 List of Employees of entire organisation with salary
                 structure and other compensation benefits relevant at April
                 2000
------------------------------------------------------------------------------

------------------------------------------------------------------------------
 3.22            Schedule ID4 California Sellers' Permit Beijing approval from
                 Municipal Foreign Economic Relations and Trade Commission
------------------------------------------------------------------------------
 3.22            IVA4 900 Mhz 2W and 8W radio transmission equipment Type
                 Approval Certificates with transfer to Microcellular Systems
                 900 and 1800 Network Access Applications
------------------------------------------------------------------------------
 3.22            IVA5 Experimental License for San Diego 900, 1800 and 1900 Mhz
------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                    PART 3.2(b)

                      CONSENTS AND GOVERNMENTAL AUTHORIZATIONS

Irish Ministry of Enterprise & Employment, under the Mergers and Acquisitions
Act of 1978, as amended.

<PAGE>

                                    PART 3.2(c)

                             EXCEPTIONS TO NO CONFLICT

<PAGE>

                                      PART 3.3

                          FULLY-DILUTED CAPITAL STRUCTURE

The Company owns 20% of Propylon Limited.

<PAGE>

                                      PART 3.6

                                ACCOUNTS RECEIVABLE

<PAGE>

                                      PART 3.8

                      EXCEPTIONS TO BALANCE SHEET LIABILITIES

<PAGE>

                                     PART 3.10

                     EXCEPTIONS TO ORDINARY COURSE OF BUSINESS

<PAGE>

                                     PART 3.11

                    LIST OF LEASE AGREEMENTS AND PRINCIPAL TERMS

<PAGE>

                                    PART 3.13(b)

                    LIST OF INTELLECTUAL PROPERTY AND ROYALTIES

<PAGE>

                                    PART 3.13(c)

                         EXCEPTIONS TO FREE AND CLEAR TITLE

<PAGE>

                                    PART 3.15(a)

                       LIST OF CONTRACTS AND PRINCIPAL TERMS

<PAGE>

                                    PART 3.15(b)

                      EXCEPTIONS TO EFFECTIVENESS OF CONTRACTS

<PAGE>

                                     PART 3.16

                            KEY CUSTOMERS AND SUPPLIERS

<PAGE>

                                     PART 3.17

              LIST OF INSURANCE POLICIES, PRINCIPAL TERMS, AND CLAIMS

<PAGE>

                                     PART 3.18

                         EXCEPTIONS TO TAX REPRESENTATIONS

<PAGE>

                                    PART 3.19(a)

              LIST OF EMPLOYEE BENEFITS PLANS AND SIMILAR OBLIGATIONS

<PAGE>

                                    PART 3.19(b)

                      LIST OF ALL EMPLOYEES AND OTHER WORKERS

<PAGE>

                                    PART 3.19(d)

                        EXCEPTIONS TO EMPLOYMENT OBLIGATIONS

<PAGE>

                                    PART 3.20(b)

                          COLLECTIVE BARGAINING AGREEMENTS

<PAGE>

                                     PART 3.21

                       EXCEPTIONS TO ENVIRONMENTAL COMPLIANCE

<PAGE>

                                    PART 3.22(a)

                           EXCEPTIONS TO LEGAL COMPLIANCE

<PAGE>

                                    PART 3.22(b)

                        LIST OF GOVERNMENTAL AUTHORIZATIONS

<PAGE>

                                     PART 3.23

                                    PROCEEDINGS

<PAGE>

                                     PART 3.27

                     ADDITIONAL REPRESENTATIONS AND WARRANTIES

PART 3.27

 SPECIFIC WARRANTIES RELATING TO MICROCELLULAR SYSTEMS LIMITED AND MICROCELLULAR
  SYSTEMS IRELAND LIMITED, HEREINAFTER COLLECTIVELY CALLED 'THE COMPANY' WHICH
       EXPRESSION SHALL REFER TO EITHER OR BOTH AS THE CONTEXT SO ADMITS.

The Warranties in this Schedule are the Specific Warranties relating to
Microcellular Systems Limited and Microcellular Systems Ireland Limited.

In this Schedule, "Encumbrance" includes any charge, debenture, mortgage,
pledge, lien, assignment, hypothecation, security interest, title retention
or other security agreement or arrangement.

1.     CAPACITY AND AUTHORITY

       1.1    INCORPORATION AND EXISTENCE

              The Company is a company duly incorporated and validly existing
              under the laws of Ireland and is duly qualified to do business in
              the jurisdictions in which the transaction of its business makes
              such qualification necessary.

       1.2    POWER AND AUTHORITY

              All corporate or personal action required by the Sellers validly
              and duly to authorise the execution and delivery of, and to
              exercise all rights and perform their obligations under the
              Documents has been duly taken and each of the Sellers has the
              legal right and full power and authority to execute and deliver,
              and to exercise his or her rights and perform his or her
              obligations under the Documents.

              The Company has the legal right and full power and authority to
              carry on its business and activities as currently being carried
              on.

       1.3    BINDING AGREEMENTS

              All Documents issued, entered into or executed, or to be issued,
              entered into or executed, by the Sellers will, when executed,
              constitute valid and binding agreements of the relevant Seller(s),
              enforceable in accordance with their respective terms.

2.     INFORMATION AND THE SELLERS

<PAGE>

       2.1    THE AGREEMENT AND THE SCHEDULES

              All information set out in this Agreement and in the Schedules is
              true, complete and accurate.

       2.2    THE SELLERS

              (a)    No liability has been incurred, directly or indirectly, by
                     the Company  to any Seller or to any officer of the Company
                     (or any person connected with it) or by any Seller (or
                     other such person) to the Company.

              (b)    There is not outstanding, and there has not at any time
                     during the last three years been outstanding, any
                     arrangement to which the Company is a party and in which
                     any officer or any person connected with any of them is or
                     has been interested, whether directly or indirectly.

              (c)    No Seller nor any person connected with any Seller has any
                     interest, directly or indirectly, in any business, firm or
                     company which has a close trading relationship with or is
                     in competition with the Company.

              (d)    The Company has not made any gift of any kind to any Seller
                     or to any person connected with any Seller or sold any
                     property to any Seller or any such person at a price which
                     is less than the market value thereof  other than in arms
                     and length.

3.     SHARES, SUBSIDIARIES, CONSTITUTION, REGISTERS, RETURNS, RECORDS

       3.1    THE SHARES

              (a)    The Sellers are the sole legal and beneficial owners of the
                     Shares.  The registers of members of the Company contains
                     complete and accurate records of its members from time to
                     time and all issues and transfers of shares in the capital
                     of the Company have been registered in accordance with the
                     articles of association of the Company from time to time in
                     force, all such transfers being duly stamped prior to
                     registration.

              (b)    The Shares comprise the whole of the allotted and issued
                     share capital of the Company.  There are no shares issued
                     or allotted in the Company which are not legally and
                     beneficially owned by the Sellers or the Company.

              (c)    There is no Encumbrance, nor is there any agreement,
                     arrangement or obligation to create or give any
                     Encumbrance, on, over or affecting any of the shares or
                     unissued shares of the Company and no claim has been

                                    -39-
<PAGE>
                     made by any person (including the Company) to be entitled
                     to any Encumbrance.

              (d)    Save as provided in this Agreement:

                     (i)    there is no agreement, arrangement or obligation in
                            force which calls for the present or future
                            allotment, issue or transfer of, or the grant to any
                            person of the right (whether conditional or
                            otherwise) to call for the allotment, issue or
                            transfer of, any share or loan capital of the
                            Company (including, without limitation, any option
                            or right of pre-emption or conversion in the
                            Company); and

                     (ii)   no share or loan capital has been created, allotted,
                            issued, acquired, repaid or redeemed, or agreed to
                            be created, allotted, issued, acquired, repaid or
                            redeemed, by the Company since the
                            April 30, 2000 balance sheet.

                     All rights and interests of every kind existing in respect
                     of the Shares and the Retained Shares are valid and
                     enforceable by action or legal proceeding or otherwise.

              (e)    SUBSIDIARIES, ASSOCIATES AND BRANCHES

                     The Company does not have any subsidiary or subsidiary
                     undertaking, other than Microcellular Systems USA and
                     Microcellular Systems, Ltd. (U.K.).

       3.2    CONSTITUTION, REGISTERS, RETURNS, RECORDS

              (a)    The copies of the memorandum and articles of association of
                     the Company already made available to the Purchaser are
                     accurate copies of those documents in force on the date of
                     the Agreement and have annexed thereto or incorporated
                     therein a copy of every resolution or agreement to which
                     section 143 of the Companies Act, 1963 applies and all the
                     terms, particulars, resolutions and other documents
                     required to be delivered by the Company to the Registrar of
                     Companies in Ireland have been duly delivered to the
                     Registrar and all appropriate fees in connection therewith
                     duly paid and discharged.

              (b)    All registers, minute books and other statutory books
                     required to be kept by the Company pursuant to the
                     Companies Acts, 1963 to 1990 have been properly kept,
                     contain a true, complete and accurate record of the matters
                     with which they should deal and no notice or allegation has
                     been received that any of them is incorrect or should be
                     rectified.

                                    -40-
<PAGE>

              (c)    All returns, particulars, resolutions and other documents
                     required to be delivered by the Company to the Register of
                     Companies or any governmental or other authorities have
                     been properly and correctly prepared and so delivered.

              (d)    There is no power of attorney given by the Company in force
                     and no outstanding authority by which any person may enter
                     into any agreement, arrangement or obligation to do
                     anything on behalf of the Company (other than any authority
                     of its employees and directors to enter into agreements in
                     the ordinary and usual course of their duties).

              (e)    The Company has maintained proper records of its activities
                     including all requisite books of account (reflecting in
                     accordance with generally accepted accounting practices all
                     the financial transactions of the company or to which it
                     has been a party) minute books registers and records all of
                     which are up to date complete and accurate in all respects
                     and these and all other deeds and documents (properly
                     stamped where necessary) belonging to the Company and its
                     seal are in the possession of the Company.

              (f)    The Company does not have any of its records, systems,
                     controls, data or information recorded, stored maintained,
                     operated or otherwise dependent upon or held by any means
                     (including any electronic mechanical or photographic
                     process whether computerised or not) which (including all
                     means of access thereto and therefrom and use thereof) are
                     not under the exclusive ownership and direct control of the
                     Company, and there has been no breach of any service or
                     maintenance contract relevant to any such electronic,
                     mechanical or photographic process or equipment whereby any
                     person or body providing services or maintenance thereunder
                     may have the right to terminate such service or maintenance
                     contract.

              (g)    The Company has not received any notices from the Data
                     Protection Commissioner.

              (h)    There has been no breach of any service or maintenance
                     contract relevant to any such electronic, mechanical or
                     photographic process or equipment of or used by the Company
                     whereby any person or body providing services or
                     maintenance thereunder may have the right to terminate such
                     service or maintenance contract.

4.     ACCOUNTS

       4.1    GENERAL

              (a)    The Accounts have been prepared in accordance with the laws
                     of Ireland, on a proper and consistent basis and in
                     accordance with the

                                    -41-
<PAGE>

                     Companies Acts, 1963 to 1990 and the European Communities
                     (Companies: Group Accounts) Regulations, 1992 and with
                     generally accepted accounting standards, principles and
                     practices in Ireland and in accordance with all
                     applicable Statements of Standard Accounting Practice,
                     and all applicable Financial Reporting Standards issued
                     by the Accounting Standards Board and have been audited
                     in accordance with all applicable Auditing Standards,
                     Auditing Guidelines and other pronouncements issued or
                     made from time to time by the Auditing Practices
                     Committee or the Auditing Practices Board.

              (b)    No change in accounting policies has been made in preparing
                     the accounts of the Company for each of the financial
                     periods of the Company ended on the July 31, 1998 and July
                     31, 1999 balance sheets, except as stated in the audited
                     balance sheets and profit and loss accounts for these
                     periods.

              (c)    The Accounts show a true and fair view of the assets,
                     liabilities (including contingent liabilities), commitments
                     and financial position and the state of affairs of the
                     Company as at the April 30, 2000 and of the results and
                     cashflows of the Company for the financial period ending on
                     the April 30, 2000.

       4.2    PROVISION FOR DEBTS AND LIABILITIES

              Full disclosure of and full provisions for bad and doubtful debts
              and all liabilities (whether actual, contingent or otherwise) and
              all material financial commitments in existence at the July 31,
              1998, July 31, 1999, April 30, 2000 balance sheets have been made
              in the Accounts.

       4.3    EXTRAORDINARY AND EXCEPTIONAL ITEMS

              The results shown by the audited profit and loss accounts of the
              Company for each of the financial periods of the Company ended on
              the July 31, 1998 and July 31, 1999 balance sheets have not (save
              as disclosed in those accounts) been affected by any extraordinary
              or exceptional item or by any other circumstances rendering the
              profits or losses for all or any of the periods covered by those
              accounts unusually high or low.

       4.4    PROVISION FOR TAXATION

              The Accounts provide in full for all taxation liable to be
              assessed on the Company, or for which it is or may become
              accountable, in respect of any period beginning on or before the
              July 31, 1998, July 31, 1999, and April 30, 2000 balance sheets
              and whether or not the Company has or may have any right of
              reimbursement against any other person and the Accounts provide or

                                    -42-
<PAGE>

              note in full for any contingent or deferred liability to taxation
              for any such period.

       4.5    VALUATION OF STOCKS, LONG TERM CONTRACT BALANCES AND
              WORK-IN-PROGRESS

              In the Accounts:

              (a)    Stocks were valued in the same manner adopted in the five
                     preceding accounting periods and on the basis of the lower
                     of cost and net realisable value [(as defined in clause
                     6.1)];

              (b)    all redundant and obsolete Stocks were wholly written off
                     and all slow moving and damaged Stocks were written down
                     appropriately and the value of the remaining Stock included
                     in the relevant balance sheets did not exceed the lower of
                     cost and net realisable value as at the April 30,  2000
                     balance sheet; and

              (c)    the value of the work-in-progress shown in the Accounts
                     properly reflects only the direct costs incurred by the
                     Company.

       4.6    DEPRECIATION

              (a)    The bases and rules of depreciation and amortisation
                     adopted in the Accounts were the same as those adopted in
                     the audited accounts of the Company for the five previous
                     accounting periods.

              (b)    The Accounts make adequate provision to depreciation and
                     amortisation of fixed assets of the Company to the period
                     ended on the April 30, 2000 balance sheet were sufficient
                     to ensure (on the basis of proper maintenance of the assets
                     during their useful life) that each of the fixed assets of
                     the Company would be written down to residual value by the
                     end of its useful life.

       4.7    GAINS AND BALANCING CHARGES

              Except as disclosed by the Accounts and save insofar as full
              provision is made therein for taxation in respect of any
              chargeable gains or balancing charges which would arise or accrue
              in respect of any such asset or machinery and plant on disposal
              thereof at the values at which they are included, no asset is
              included in the Accounts at such value that if it were obtained in
              the disposal or deemed disposal of the asset a chargeable gain or
              balancing charge would arise or accrue.

       4.8    BOOK DEBTS

              Excluding the bad and doubtful debts for which full and adequate
              provision was made in the Accounts, the book debts of the Company
              on Completion will be good for the full face value thereof and,
              subject to the exercise of due

                                    -43-
<PAGE>

              diligence by the Company, will be paid in the ordinary course of
              business within twelve calendar months after the Completion Date.

       4.9    BOOKS AND FINANCIAL RECORDS

              All the accounting books and records of the Company are in its
              possession or under its control, are fully and accurately
              completed in accordance with all applicable legal requirements and
              are up-to-date.

       4.10   MANAGEMENT ACCOUNTS

              All management accounts of the Company since the April 30, 2000
              balance sheet have been prepared with due care and attention and
              have been prepared on a basis consistent with that adopted and on
              the same assumptions as those made in preparing previous
              management accounts of the Company for the preceding five
              financial years and show a reasonably accurate view of the state
              of affairs and profit or loss of the Company as at and for the
              period in respect of which they have been prepared.

        4.11  NET ASSETS

              The net assets of the Company, as shown in the Accounts, are not
              less than its liabilities as at the Completion Date.

5.     BUSINESS SINCE APRIL 30, 2000 BALANCE SHEET

       5.1    GENERAL

              (a)    Since the Last Accounting Date:

                     (i)    the business and activities of the Company have been
                            carried on in the ordinary and usual course without
                            interruption, in the same manner (including, without
                            limitation, nature and scope) as in the year ended
                            on the audited July 31, 1998 Microcellular Systems
                            Ltd. (U.K.) balance sheet and so as to maintain the
                            business of the Company as a going concern;

                     (ii)   there has been no adverse change in the financial or
                            trading position of the Company or the Company as a
                            whole; and

                     (iii)  no individual changes in excess of 10% have occurred
                            in any of the assets and liabilities shown in the
                            Accounts and there has been no material reduction in
                            the value of the net tangible assets of the Company
                            on the basis of the valuations adopted for the
                            purposes of the Accounts; and

                                    -44-
<PAGE>

              (b)    the business, profitability or prospects of the Company
                     have not been adversely affected by any factor not
                     affecting similar businesses to a like extent and there are
                     no factors which are likely to have such an effect.

               (c)   no unusual increases or decreases in Stocks or trading
                     which might affect the After Tax Profits figure.

       5.2    SPECIFIC

              Since the Last Accounting Date:

              (a)    The Company has not disposed of any asset (including,
                     without limitation, trading stock) or supplied any service
                     or business facility of any kind (including, without
                     limitation, a loan of money or the letting, hiring or
                     licensing of any property whether tangible or intangible)
                     in circumstances where the consideration actually received
                     or receivable or the disposal or the supply, as the case
                     may be, was less than the consideration which would be
                     deemed to have been received for the purposes of taxation;

              (b)    The Company has not, other than in the ordinary and usual
                     course of its business:

                     (i)    acquired or disposed of, or agreed to acquire or
                            dispose of, any material asset; or

                     (ii)   assumed or incurred, or agreed to assume or incur,
                            any material liability, expenditure or obligation;

                     (iii)  the Company has not factored, sold or agreed to
                            sell, any of its debts;

                     (iv)   the Company has not made, or agreed to make, any
                            capital expenditure or incurred, or agreed to incur,
                            any commitments involving capital expenditure;

                     (v)    the business of the company has not been materially
                            and adversely affected by the termination, or any
                            change in the terms, of any important agreement or
                            by the loss of any customer or source of supply or
                            by any abnormal factor not affecting similar
                            businesses to a like extent;

                     (vi)   no dividend or distribution (including, without
                            limitation, any distribution within the meaning of
                            the Corporation Tax Act 1976) has been declared,
                            paid or made by the Company except as provided in
                            its Accounts;

                                    -45-
<PAGE>

                     (vii)  save in the ordinary course of business no payment
                            has been made by the Company which will not be
                            deductible for corporation tax purposes either in
                            computing the profits of the Company or in computing
                            the corporation tax chargeable on the Company;

                     (viii) the Company has not changed its accounting reference
                            period;

                     (ix)   no resolution of the Company in general meeting has
                            been passed (other than any resolution constituting
                            ordinary business conducted at an annual general
                            meeting);

                     (x)    the Company has not borrowed or lent any money or
                            increased by an amount any secured liability or
                            (except in the ordinary course of its trading and
                            for full value) disposed of any assets or incurred
                            or entered into any other liability, transaction or
                            contract of a financial nature;

                     (xi)   the Company has not issued or repaid or agreed to
                            issue or repay or to the registration of any
                            transfer of any share or loan capital or granted any
                            option in relation thereto;

                     (xii)  the Company has not created, extended, granted or
                            issued or agreed to create, extend, grant or issue
                            any lease, tenancy, licence, mortgage, charge, lien,
                            encumbrance, option, debenture or other security;

                     (xiii) the Company has not made any unusual augmentation in
                            stock nor written up any fixed assets or stock;

                     (xiv)  the Company has not written off any debts;

                     (xv)   the Company has not done or omitted to do anything
                            which would entitle any third party to terminate any
                            contract or any benefit enjoyed by the Company or
                            call in any money before the normal due date
                            thereof;

                     (xvi)  the Company has not passed any resolution by its
                            members in general meeting or made any alteration to
                            the provisions of its memorandum of association or
                            articles of association;

              (c)    the Company has not disposed of any assets of a capital
                     nature other than in the normal and ordinary course of
                     business; and

              (d)    the Company has not changed or agreed to change the terms
                     of employment or engagement of any officer or employee of
                     the

                                    -46-
<PAGE>

                     Company who was on the 30th of April 2000 entitled to
                     remuneration at a rate in excess of L5,000 per annum (or
                     where employment commenced subsequent to the 30th of April
                     2000 was so entitled on the date of appointment);

6.     ASSETS

       6.1    TITLE, CONDITION AND SUFFICIENCY OF ASSETS

              (a)    All assets included in the Accounts or acquired by the
                     Company since the 30th of April 2000 (other than trading
                     stock subsequently disposed of in the ordinary and usual
                     course of business) and all material assets used by the
                     Company or which are in the reputed ownership of the
                     Company  are:-

                     (i)    legally and beneficially owned by the Company free
                            from any Encumbrance and the Company has good title
                            thereto and all such assets are free from any hire
                            purchase, credit, sale or rental agreement, lien,
                            option, mortgage, charge, lease, tenancy, licence,
                            covenant, condition, agreement or other encumbrance
                            whether relating to the asset itself or the use
                            thereof or the business carried on at the
                            Properties;

                     (ii)   where capable of possession, are in the possession
                            or under the control of the Company free from any
                            agreement letting the same on hire (other than in
                            the normal course of the business of the Company and
                            in accordance with terms already disclosed to the
                            Purchaser) or by hire purchase or for sale on
                            deferred terms;

                     (iii)  comprise all the assets, property and rights which
                            the Company uses for the purpose of or in connection
                            with its business;

              (b)    The plant, machinery, vehicles and all other equipment,
                     Stock-in-Trade, furniture, fixtures  and fittings used in
                     connection with the business of the Company.

                     (i)    is in good repair and condition and in satisfactory
                            working order, and has been regularly and properly
                            maintained;

                     (ii)   is operating (or is capable of operating) safely and
                            without danger to any person, property or the
                            environment and in accordance with all relevant
                            licences, regulations and permits governing its use;

                     (iii)  is not surplus to requirements and is in the
                            possession and control of the Company and is not
                            expected to require

                                    -47-

<PAGE>

                            replacements or additions within a period of 24
                            months after the Completion Date;

                     (iv)   is capable and will (subject to normal wear and
                            tear) remain capable throughout the respective
                            periods of time during which it is written down to
                            nil value in the accounts of the Company of doing
                            the work for which it was designed or purchased;

                     (v)    comply and have complied in all material respects
                            with all statutes and regulations applicable
                            thereto; and

                     (vi)   is not dangerous, inefficient, unsuitable or in need
                            of removal or replacement;

              (c)    Maintenance contracts are in full force and effect in
                     respect of all assets of the Company which it is normal or
                     prudent to have maintained by independent or specialist
                     contractors.

              (d)    The assets owned or leased by the Company and the
                     facilities and services to which it has a contractual right
                     comprise all the assets, facilities and services necessary
                     or convenient for the carrying on of the business of the
                     Company in the manner in which it is presently conducted.

       6.2    HIRE PURCHASE AND LEASED ASSETS

              The Company is not a party to, nor has it any material liability
              under, any lease or hire, hire purchase, credit sale or
              conditional sale agreement.

       6.3    STOCKS

              (a)    The level of Stocks of the Company is reasonable having
                     regard to current and anticipated demand.

              (b)    The Company's Stock is in good condition and is capable of
                     being sold by the Company in the ordinary course of its
                     business in accordance with its current price list without
                     rebate or allowance to its customers and is adequate (and
                     not excessive) in relation to the current trading
                     requirements of its business.

7.     TERMS OF TRADE AND BUSINESS

       7.1    CREDITORS

              The Company has paid all its creditors (including trade creditors)
              in the normal course.  No debt owing by the Company is unpaid as
              at its due date.

                                    -48-
<PAGE>

       7.2    COMPUTER RECORDS

              None of the records, systems, data or information of the Company
              are recorded, stored, maintained, operated or otherwise wholly or
              partly dependent on or held or accessible by any means (including,
              without limitation, any electronic, mechanical or photographic
              process whether computerised or not) which are not under the
              exclusive ownership and direct control of the Company.

8.     EMPLOYEES

       8.1    GENERAL

              (a)    There is not in existence any service agreement or
                     employment contract  with any officer or employee of the
                     Company nor any contracts for services nor any consultancy
                     agreements with the Company.

              (b)    There is not in existence any service agreement with any
                     officer or employee of the Company which cannot be
                     terminated by three months' notice or less without giving
                     rise to any claim for damages or compensation (other than a
                     statutory redundancy payment or statutory compensation for
                     unfair dismissal) and the Company has not received notice
                     of resignation from any key employees and there are no
                     commitments or undertakings to any such persons other than
                     as set forth in formal written agreements or contracts
                     already disclosed in writing to the Purchaser.

              (c)    Full particulars are contained in the Schedule [        ]:

                     (i)    the total number of employees (including officers,
                            consultants, part time employees and agency
                            employees) of the Company including those who are on
                            maternity leave or absent on the grounds of
                            disability or other long term leave of absence, and
                            have or may have a statutory or contractual right to
                            return to work with the Company; and

                     (ii)   the names of all employees (including officers,
                            consultants, part time employees and agency
                            employees) of the Company, such names being set out
                            in a list for the Company, such list being split
                            between permanent employees, part-time employees and
                            agency employees and having the following headings
                            and setting out the relevant details on each such
                            employee under such headings:-

                            (1)    employee names and addresses;
                            (2)    salaries/wages and other benefits of any
                                   kind;

                                    -49-
<PAGE>

                            (3)    dates of birth/age;
                            (4)    dates of commencement of employment;
                            (5)    number of years continuous employment
                                   (including previous employment where
                                   relevant);
                            (6)    participation in benefit schemes (eg VHI,
                                   pension scheme, share scheme etc);
                            (7)    notice entitlements;
                            (8)    grades/positions;
                            (9)    holiday entitlement;
                            (10)   any other relevant terms;

                            and where any employee is continuously absent from
                            work for a period in excess of one month, the reason
                            for the absence.

              (d)    The basis of the remuneration payable to the officers or
                     employees of the company is the same as that in force at
                     the 30th of April 2000 and the Company is not obliged to
                     increase nor has it made any provision to increase the
                     aggregate annual remuneration payable to the officers and
                     employees by more than five per cent.

              (e)    There are no amounts owing to any present or former
                     officers or employees of the Company other than
                     remuneration accrued due or for disbursement of business
                     expenses details of which are contained in the  Schedules.

              (f)    There is no agreement or arrangement between the Company
                     and any officer or employee or former employee with respect
                     to his employment, his ceasing to be employed or his
                     retirement which is not included in the written terms of
                     his employment or previous employment (as the case may be).

              (g)    The Company has maintained current and adequate records
                     regarding the service of each of its officers and employees
                     (including, without limitation, details of terms of
                     employment, payments of statutory sick pay, statutory
                     maternity pay, disciplinary and health and safety matters,
                     income tax and social security contribution) and
                     termination of employment.

              (h)    No officer or employee of the Company has given or received
                     notice terminating his or her employment.

              (i)    No employee or officer of the Company is assigned or
                     employed wholly or mainly outside of Ireland.

              (j)    No past employee has a right of return to work or has or
                     may have a right to be reinstated or re-engaged.

                                    -50-
<PAGE>

              (k)    On or prior to Completion:

                     (i)    all pay related social insurance contributions (both
                            employer's and employees') due and payable by the
                            Company will have been duly paid;

                     (ii)   all amounts due to the Revenue Commissioners in
                            respect of deductions which have been made or which
                            should have been made by the Company in accordance
                            with PAYE regulations from time to time in force
                            have been deducted so that the Company will not have
                            any liability in respect thereof;

                     (iii)  all certificates relating to matters referred to in
                            this paragraph which by law are required to be given
                            by employers to employees (as defined) have been
                            given to all employees of the Company and are true
                            and accurate in all material respects.

              (l)    There are no schemes in operation by or in relation to the
                     Company whereunder any employee of the Company or any other
                     person whatsoever is entitled to a commission remuneration
                     bonus or other payment of any sort calculated by reference
                     to the whole or any part of the turnover profits or sales
                     of the Company.

              (m)    Every employee of the Company who should have been treated
                     as employed for tax purposes has been so treated.

              (n)    The Company has not incurred any liability:

                     (i)    for breach or termination or variation of any
                            service agreement with any of its officers or
                            employees including, without limitation, redundancy
                            payments, protective awards, compensation for
                            wrongful dismissal or unfair dismissal or failure to
                            comply with any order for the reinstatement or
                            re-engagement of any officer or employee; and

                     (ii)   for breach or termination of any consultancy
                            agreement.

       8.2    PAYMENTS ON TERMINATION

              Except as disclosed in the Accounts:

              (a)    no liability has been incurred by the Company for breach or
                     termination of any service agreement with any of its
                     employees including, without limitation, redundancy
                     payments, protective awards, compensation for wrongful
                     dismissal or unfair dismissal or failure to comply with any
                     order for the reinstatement or re-engagement of any
                     employee;

                                    -51-
<PAGE>

              (b)    no liability has been incurred by the Company for breach or
                     termination of any consultancy agreement or other contract
                     for services; and

              (c)    the Company has not made or agreed to make any payment or
                     provided or agreed to provide any material benefit to any
                     present or former director or employee of the Company or
                     any dependant of any present or former director or employee
                     in connection with the actual or proposed termination or
                     suspension of employment or variation of any service
                     agreement of any present of former director or employee.

       8.3    NON-ALLOWABLE PAYMENTS

              The Company has not made, nor has it agreed to make any payment to
              or provided or agreed to provide any benefit for any present or
              former director or employee which is not allowable as a deduction
              for the purposes of Taxation.

       8.4    LIABILITIES FOR EMPLOYEES

              The Company is not liable to pay any industrial training levy nor
              has it outstanding any undischarged liability to pay to any
              governmental or regulatory authority in any jurisdiction any
              contribution, Taxation or other impost arising in connection with
              the employment or engagement of employees or directors by it.

       8.5    CLAIMS BY EMPLOYEES

              There are no claims pending or threatened against any of the
              Company;

              (a)    by an employee or workman or third party, in respect of an
                     accident or injury which is not fully covered by insurance;
                     or

              (b)    by an employee or director in relation to his terms and
                     conditions of employment or appointment.

       8.6    COMPLIANCE WITH STATUTES

              The Company has in relation to each of its officers and employees
              (and, so far as relevant, to each of its former officers and
              employees) complied in all material respect with:

              (a)    all obligations imposed by it by Article 119 of the Treaty
                     of Rome and all statutes, regulations and codes of conduct
                     and practice relevant to the relations between it and its
                     employees or any trade union, and has maintained current,
                     adequate and suitable records regarding the service of each
                     of its employees;

                                    -52-
<PAGE>

              (b)    all collective agreements, customs and practices for the
                     time being dealing with such relations or the conditions of
                     service of its employees;

              (c)    all relevant orders and awards made under any relevant
                     statute, regulation or code of conduct or practice
                     affecting the conditions of service of its employees;

              (d)    all obligations imposed by the European Communities
                     (Safeguarding of Employees' Rights on the Transfer of
                     Undertakings) Regulations, 1980 in relation to any sale,
                     purchase or other transfer coming within the terms of those
                     Regulations; and

              (e)    all obligations imposed by the Safety, Health and Welfare
                     at Work Act, 1989.

       8.7    INDUSTRIAL DISPUTES AND NEGOTIATIONS

              The Company is not involved in any industrial or trade dispute or
              any dispute or negotiation regarding a claim of material
              importance with any trade union or association of trade unions or
              organisation or body of employees, and no facts or circumstances
              exist which might lead to any such dispute and during the past two
              calendar years the Company has not had a strike or lockout or any
              other labour dispute which has materially disrupted its business.

       8.8    REDUNDANCIES AND TRANSFER OF BUSINESS

              Within the period of one year ending on the date of this
              Agreement, the Company has not:

              (a)    given notice of any redundancies to its employees and/or
                     the Minister for Enterprise and Employment or started
                     consultations in respect of redundancies with any trade
                     union; and

              (b)    been a party to any relevant transfer within the scope of
                     the European Communities (Safeguarding of Employees' Rights
                     on Transfer of Undertakings) Regulations, 1980 nor has the
                     Company failed to comply with any duty to inform and
                     consult any trade union under those Regulations.

       8.9    TRADE UNIONS

              Full and complete details of all recognised trade unions and all
              collective bargaining or procedural or other agreements or
              arrangements in existence

                                    -53-
<PAGE>

              relating or relevant to any of the employees of the Company and
              of the current state of any negotiations with any trade union
              staff association or other organisation formed for a similar
              purpose which might affect the terms and conditions of
              employment of any employees are set out in the Schedules.

       8.10   INCENTIVE SCHEMES

              The Company has not in existence nor is it proposing to introduce
              any share incentive, share option, profit sharing, bonus or other
              incentive, scheme for any of its consultants, officers or
              employees.

       8.11   TRAINING

              There is no training scheme, arrangement or proposal in existence
              at the date of this Agreement in relation to the Company.

90     FINANCING/LIABILITIES

       9.1    INDEBTEDNESS

              Except as disclosed in the Schedules, the Company has not
              outstanding nor has it agreed to create or incur any loan capital,
              borrowing or indebtedness in the nature of borrowing, including,
              without limitation, any bank overdrafts, liabilities under
              acceptances or acceptance credits.

       9.2    GUARANTEES AND INDEMNITIES

              (a)    The Company is not a party to or has it any material
                     liability (including, without limitation, any contingent
                     liability) under any guarantee, indemnity, bond, facility
                     or other agreement to secure, or otherwise incur financial
                     or other obligations with respect to, an obligation of a
                     third party.

              (b)    None of the loan capital, borrowings or indebtedness in the
                     nature of borrowing of the Company is dependent on the
                     guarantee or indemnity of, or any security provided by, any
                     third party (including the Company).

       9.3    EVENTS OF DEFAULT

              No event has occurred or been alleged which:

              (a)    constitutes an event of default (howsoever described), or
                     otherwise gives rise to an obligation to repay under any
                     agreement relating to borrowing or indebtedness in the
                     nature of borrowing, or which would lead to any Encumbrance
                     constituted or created in connection with any borrowing or
                     indebtedness in the nature of borrowing, guarantee or

                                    -54-
<PAGE>

                     indemnity, or which would lead to any other obligation of
                     the Company, becoming enforceable;

              (b)    would constitute such an event of default or would lead to
                     such security or obligation becoming enforceable with the
                     giving of notice or lapse of time or both; or

              (c)    would, or would be likely to, give rise to an obligation
                     for the Company to repay any monetary compensatory amounts,
                     export refunds, intervention payments or other like
                     subsidies.

       9.4    GRANTS

              (a)    the Company is not under any liability to repay any
                     investment or other grant or subsidy made to it by any
                     body; no circumstances have arisen in which any such body
                     would or might be entitled to require repayment of, or
                     refuse an application by the company for, any such grant or
                     subsidy either in whole or in part and neither the
                     execution nor performance of this Agreement will constitute
                     such circumstances.

              (b)    Full particulars of all agreements, claims, leases and
                     other arrangements between the Company and any other grant
                     body are set out in the Schedule [  ].

       9.5    CONTINUED AVAILABILITY OF FACILITIES

              (a)    The Schedules contain full and accurate details of all
                     debentures, acceptance credits, overdrafts, loan or other
                     financial facilities outstanding or available to the
                     Company (together the "FACILITIES") and there are attached
                     to it accurate and complete copies of all documents
                     relating to the Facilities.

              (b)    There has been no contravention of or non-compliance with
                     any of the provisions of such documents.

              (c)    No steps for early repayment of any indebtedness of the
                     Company has been taken or threatened.

              (d)    No circumstances have occurred or exist whereby the
                     continuation of any of the Facilities might be prejudiced
                     or which may give rise to any alteration in the terms and
                     conditions of any of the Facilities.

              (e)    None of the Facilities is dependent on a guarantee or
                     indemnity of or any security provided by a third party
                     (including of the Company).

              (f)    None of the Facilities may be terminated or mature prior to
                     its stated date of maturity as a result of the acquisition
                     of the Shares and/or the Retained Shares by the Purchaser
                     or any other thing contemplated by the Documents.

                                    -55-
<PAGE>

100    INSOLVENCY

       10.1   NO ORDER

              No order has been made or petition presented or resolution passed
              for the winding up or dissolution of the Company or for the
              appointment of a liquidator or examiner to the Company.

       10.2   NO RECEIVER

              No receiver has been appointed by any person of the whole or any
              part of the business or assets of the Company.

       10.3   NOT INSOLVENT

              The Company is not insolvent or unable to pay its debts.

       10.4   PAYMENT OF DEBTS

              The Company has not stopped paying its debts as they fall due.

       10.5   NO DISTRESS ETC

              No distress, execution or other process has been levied in respect
              of any of the assets of the Company.

       10.6   COMPOSITION OR SCHEMES ETC:

              No composition in satisfaction of the debts of any of the Company,
              or scheme of arrangement of its affairs, or compromise or
              arrangement between it and its creditors or members or any class
              of its creditors or members, has been proposed, sanctioned or
              approved.

       10.7   CRYSTALLISATION OF CHARGES

              No event has occurred causing, or which upon intervention or
              notice by any third party may cause, any floating charge created
              by any of the Company to crystallise or any charge created by it
              to become enforceable, nor has any such crystallisation occurred
              or is such enforcement in process.

       10.8   RIGHTS OF THIRD PARTIES

              In relation to any property or assets held by each of the Company
              under any hire purchase, conditional sale, chattel leasing or
              retention of title agreement or

                                    -56-
<PAGE>

              otherwise belonging to a third party, no event has occurred
              which entitles, or which upon intervention or notice by
              the third party may entitle, the third party to repossess
              the property or assets concerning or terminate the agreement
              or any licence in respect of the same.

110    COMPETITION AND ANTI-TRUST

       11.1   GENERAL

              There is not in existence in connection with the business of the
              Company any agreement arrangement or practice which infringes or
              which has or should have been registered under the Restrictive
              Practices Act, 1972 to 1987 (as amended) or which infringes or
              which has or should have been notified to the Minister for
              Enterprise and Employment, the Competition Authority and/or
              European Commission under the Mergers, Takeovers and Monopolies
              (Control) Act, 1978 (as amended), the Competition Act, 1991 and/or
              Articles 85 or 86 of the Treaty of Rome (or any regulations or
              directive made thereunder).

       11.2   UNDERTAKINGS, ORDERS AND INVESTIGATIONS

              (a)    The Company has not given any undertaking or written
                     assurance (whether legally binding or not) to any
                     governmental authority or any authority of the European
                     Communities under the Treaty of Rome or any other statute
                     or legal instrument of Ireland or any other country and the
                     Company is not affected by any order or regulations made by
                     the Competition Authority or by any decision made by the
                     Commission of the European Communities.

              (b)    The Company  has not received any process notice or
                     communication formal or informal by or on behalf of the
                     Ombudsman, the Director of Consumer Affairs, the
                     Competition Authority or the European Commission or any
                     other authority of any country or any political or
                     administrative sub-division thereof having jurisdiction in
                     anti-trust or consumer protection matters in relation to
                     any aspect of its business or any agreement arrangement or
                     practice to which it is or is alleged to be a party, nor is
                     or has the Company been subject to any investigation,
                     report or decision by any of the above mentioned persons.

       11.3   COMPETITION ACT

              (a)    The Company is not nor has it been a party to, or engaged
                     in, any agreement, arrangement, decision, concerted
                     practice or activity which is prohibited by Section 4(1) of
                     the Competition Act, 1991 (the "Competition Act").

                                    -57-

<PAGE>

              (b)    The Company has not made any notification to the
                     Competition Authority requesting a licence pursuant to
                     Section 4(2) of the Competition Act or a certificate
                     pursuant to Section 4(4) of the Competition Act.

              (c)    The Company has not committed, contrary to Section 5 of the
                     Competition Act, any abuse, either alone or jointly with
                     any other undertaking, of a dominant position within the
                     State or a substantial part of the State.

              (d)    An authorised officer appointed pursuant to Section 20 of
                     the Competition Act has not entered and inspected any
                     premises at or vehicles in or by means of which the Company
                     carries on business nor required the Company nor any person
                     employed in connection with the Business to produce any
                     books, documents or records and has not inspected, copied
                     or taken extracts from any such books, documents and
                     records nor required the Company nor any person to provide
                     any information in regard to entries in such books,
                     documents and records or in regard to the Company or its
                     business or in regard to the persons employed in connection
                     therewith.

              (e)    No petition has been presented by a person pursuant to
                     Section 6(1) of the Competition Act for an injunction or
                     declaration or damages including exemplary damages in
                     relation to any agreement decision, concerted practice or
                     action in which the Company is or has been involved nor has
                     any such injunction or declaration or damages been granted.

              (f)    No petition has been presented by the Minister pursuant to
                     Section 6(4) of the Competition Act for an injunction or
                     declaration in relation to any agreement, decision,
                     concerted practice or action in which the Company is or has
                     been involved nor has any such injunction or declaration
                     been granted.

              (g)    No investigation has been carried out by the Competition
                     Authority pursuant to Section 14 of the Competition Act  as
                     to whether, in the opinion of the Authority, the Company is
                     in a dominant position and, if it is, whether the dominant
                     position is being abused and the Minister has not made an
                     order pursuant to Section 14(3) of the Competition Act
                     either (a) prohibiting the continuance of a dominant
                     enjoyed by the Company except on conditions specified in
                     the order or (b) requiring the adjustment of the dominant
                     position.

                                    -58-
<PAGE>

              11.4   MERGERS ACT

              (a)    Save in respect of the present transaction no order has
                     been made under the Mergers, Take-Overs and Monopolies
                     (Control) Act 1978 to 1996 (the "MERGERS ACT") which
                     directly or indirectly affects the business of the Company.

              (b)    In relation to every merger or take-over in which the
                     Company was involved prior to the date of this Agreement
                     and to which the Mergers Act applied, the Minister has
                     issued a statement in writing prior to completion of the
                     merger or take-over concerned stating that he had decided
                     not to make an order under Section 9 of the Mergers Act in
                     relation to the proposed merger or takeover.

              (c)    The Minister has not referred any proposed merger or
                     take-over in which the Company is involved and to which the
                     Mergers Act applies to the Competition Authority for
                     investigation pursuant to Section 7(b) of the Mergers Act.

              (d)    The Company has not been the object of a report of the
                     Competition Authority under Section 8(1) of the Mergers Act
                     stating whether, in the opinion of the Authority, a
                     proposed merger or takeover would be likely to prevent or
                     restrict competition or restrain trade in any goods or
                     services and would be likely to operate against the common
                     good.

              (e)    Since 3rd July, 1978 the Company has not been a party to
                     any transaction notifiable pursuant to section 5 of the
                     Mergers Act.

       11.5   CONCENTRATIONS WITH A COMMUNITY DIMENSION

              The Company is not nor has it been involved prior to or at the
              date of this Agreement in any arrangement or transaction or
              agreement which is or was a concentration with a community
              dimension within the meaning of Council Regulation (EEC) No.
              4064/89 of 21 December 1989 on the control of concentrations
              between undertakings (the "Merger Control Regulation") and the
              Company is not nor has it been involved prior to or at the date of
              this Agreement in any arrangement or transaction or agreement
              which at the request of a Member State has been the subject of
              findings or decisions of the Commission of the European
              Communities pursuant to Article 22 of the Merger Control
              Regulation.

120    PENSIONS AND OTHER BENEFITS

       12.1   DEFINITIONS

              For the purposes of the Warranties in this paragraph 16:

                                    -59-
<PAGE>

              "APPROVED" means approved by the Revenue Commissioners for the
              purposes of Chapter II of Part I of the Finance Act 1972 and
              reference to "Approval" shall be construed accordingly;

              "DEFINED CONTRIBUTION SCHEME" means a scheme under which the
              amount of the benefits other than some or all of the benefits
              payable on death before becoming a pensioner, payable to or in
              respect of a member of the scheme is calculated by reference to
              the contributions made to the scheme by and in respect of the
              member;

              "DISCLOSED SCHEME" means [insert name of Sellers' Scheme] and any
              other agreement, arrangement, custom or practice of the Company in
              operation for the payment of or contribution towards any pensions,
              allowances, lump sums or other like benefits on retirement, death,
              termination of employment (whether voluntary or not) or during
              periods of sickness or disablement, for the benefit of any
              Employee or for the benefit of the dependants of any Employee
              which has been disclosed in the Schedules;

              "EMPLOYEE" means any officer, former officer, employee, former
              employee, consultant or former consultant of the Company.

       12.2   GENERAL

              (a)    Except for the Disclosed Scheme, there are not in existence
                     (nor has any proposal been announced to establish) any
                     retirement, death, disability or other benefit schemes for
                     Employees or any dependant of any of them, nor are there
                     any obligations to, or in respect of, Employees or any
                     dependant of any of them with regard to retirement, death
                     or disability pursuant to which the Company is or may
                     become liable to make payments, and no pension, retirement
                     or sickness gratuity is currently being paid or has been
                     promised by either of the Company to or in respect of any
                     former officer of former employee or any dependent of it.

              (b)    The Disclosed Scheme is:

                     (i)    an exempt Approved scheme and there is no reason why
                            the said exempt Approved status might be withdrawn
                            or cancelled;

                     (ii)   a Defined Contribution Scheme.

       12.3   INFORMATION RE THE DISCLOSED SCHEME

              (a)    Full details of each Disclosed Scheme have been given to
                     the Purchaser in the form of:

                                    -60-
<PAGE>

                     (i)    copies of all trust deeds, agreements, deeds, rules
                            and other material documents constituting and
                            governing or relating to the Disclosed Scheme
                            including, without limitation, agreements between
                            the Company and any Employee relating to the
                            provision of any of the benefits referred to in
                            paragraph 14.2; and such documents are up-to-date
                            and satisfactory to ensure continued treatment of
                            the Schemes as exempt approved schemes as aforesaid

                     (ii)   copies of all explanatory booklets, announcements
                            and other communications to Employees relating to
                            the Disclosed Scheme, including (without limitation)
                            true and complete copies or particulars of each
                            deed, document, resolution, action, practice or
                            other matter which in relation to the Disclosed
                            Scheme confers or describes any improvements or
                            other amendments to actual, prospective or
                            contingent right to benefits thereunder, whether or
                            not yet incorporated into the documentation of the
                            Disclosed Scheme;

                     (iii)  in the case of a Disclosed Scheme in relation to
                            which the trustees or managers are required to
                            obtain audited accounts, a copy of the audited
                            accounts of the Disclosed Scheme for the last scheme
                            year;

                     (iv)   copies of all policies effected with and agreements
                            with any insurance company for the purposes of the
                            Disclosed Scheme;

                     (v)    a list of the employees who are members of the
                            Disclosed Scheme with all particulars of them
                            relevant to their membership of the Disclosed Scheme
                            and necessary to establish their entitlements to
                            benefits; and

                     (vi)   a copy of any agreement with any person providing
                            services of any nature in connection with the
                            Disclosed Scheme including, without limitation,
                            investment management or advisory services,
                            administration and data processing services.

                     (vii)  a copy of the latest actuarial valuation of the
                            Disclosed Scheme together with notification if the
                            actuary who signed those valuations is not the
                            present actuary to the relevant Disclosed Scheme.

              (b)    No discretion or power has been exercised under any
                     Disclosed Scheme in respect of any Employee to:

                     (i)    augment benefits;

                                    -61-
<PAGE>

                     (ii)   admit to membership any Employee who would not
                            otherwise have been eligible for admission to
                            membership;

                     (iii)  admit to membership any Employee on terms which
                            provided for or envisaged the payment of a transfer
                            value or a transfer of assets from another scheme to
                            the Disclosed Scheme in a case in which the payment
                            or transfer has not been made or has not been made
                            in full;

                     (iv)   provide a benefit which would not otherwise be
                            provided; or

                     (v)    pay a contribution which would not otherwise have
                            been paid.

              (c)    All benefits (other than refunds of contributions) payable
                     under each Disclosed Scheme on the death of a member of the
                     Disclosed Scheme or during periods of sickness or
                     disability of the member are at the date of this Agreement
                     fully insured under a policy effected with an insurance
                     company of good repute and each member has been covered for
                     such insurance by such insurance company at its normal
                     rates and on its normal terms for persons in good health
                     and all insurance premiums payable have been paid.

              (d)    No plan, proposal or intention to amend, discontinue in
                     whole or in part or exercise any discretion in relation to
                     any Disclosed Scheme has been communicated to any member of
                     the Disclosed Scheme.

              (e)    Each Employee who has been admitted to or promised
                     admission to membership of any Disclosed Scheme has been
                     admitted or promised admission on terms which are
                     consistent with the continuous treatment of the Disclosed
                     Scheme as Approved and the substance of the terms of the
                     admission or promised admission have been communicated to
                     the Employee.

              (f)    The trustees of each Disclosed Schemes have legal title to
                     all the assets of the Disclosed Scheme and there are no
                     Encumbrances over any of the assets of the Disclosed
                     Scheme.

              (g)    No person holds as an asset of any Disclosed Scheme any
                     securities issued by, properties leased to or occupied by,
                     and no loans have been made out of the assets of the
                     Disclosed Scheme which are, at the date of this Agreement,
                     outstanding to, the Sellers or any company connected with
                     any of the Sellers.

              (h)    There has been no breach of the trusts of any Disclosed
                     Scheme and there are no actions, suits or claims (other
                     than routine claims for benefits) outstanding, pending or
                     threatened against the trustees or administrator of any
                     Disclosed Scheme or against the Sellers or any

                                    -62-
<PAGE>

                     other employee participating in the Disclosed Scheme in
                     respect of any act, event, omission or other matter
                     arising out of or in connection with the Disclosed Scheme
                     and after making due and careful enquiries and the
                     Sellers are not aware of any circumstances which may
                     give rise to any such claim.

              (i)    No increase has been made to the remuneration which is
                     pensionable under any Disclosed Scheme of any Employee who
                     is or was a member of the Disclosed Scheme since the date
                     on which the current administrative year of the Disclosed
                     Scheme commenced.

              (j)    No discretion or power under any Disclosed Scheme has been
                     exercised by the trustees or administrators or the Company
                     or any other party and there is no obligation to do so in
                     respect of any of the Employees and all amounts due to the
                     trustees of the Scheme from the Company or otherwise in
                     respect of any of the Employees have been paid.

              (k)    Each of the Disclosed Schemes is registered with the
                     Pensions Board as required by the Pensions Act, 1990 and
                     has at all times been administered in accordance and in
                     full compliance with the provisions of the Pensions Act,
                     1990 and all other applicable laws, regulations and
                     requirements.

              (l)    All death in service benefits (other than refunds or
                     contributions) which may be payable under the Schemes are
                     fully insured at normal rates with an insurance company of
                     good repute.

              (m)    The Disclosed Schemes have at all times been operated in
                     accordance with their governing documentation and all
                     applicable laws and regulatory requirements and in
                     particular, the Disclosed Schemes do not contain any
                     provision which gives rise or could give rise to a claim
                     against the Company or the trustees of any of the Disclosed
                     Schemes under Article 119 of the Treaty of Rome or Part VII
                     of the Pensions Act, 1990.

              (n)    Every Employee who is entitled to membership of the
                     Disclosed Schemes has been invited to join the Disclosed
                     Scheme which he or she is entitled to become a member of as
                     of the date on which he or she became entitled.  The
                     Company which employs a person who has joined the Disclosed
                     Scheme has been properly admitted to participation and the
                     participation of the Company has been approved by the
                     Revenue Commissioners.

              (o)    No event has happened or circumstances exist which either
                     has led or will lead to the Disclosed Scheme being wound-up

                                    -63-
<PAGE>

              (p)    The trustees of the Disclosed Scheme have legal title to
                     all the assets of the Disclosed Scheme and there are no
                     Encumbrances over any of the assets of the Disclosed
                     Scheme.

       12.4   FUNDING

              (a)    There is not at the date of this Agreement any contribution
                     to any Disclosed Scheme which has fallen due but is unpaid
                     and there are no factors which have caused or contributed
                     to any substantial deterioration in the level of funding of
                     the Disclosed Schemes since the date of the latest
                     actuarial valuations.

              (b)    There is set out in the Schedules a statement of the basis
                     on which the Company has undertaken to contribute to the
                     Disclosed Scheme which is a Defined Contribution Scheme and
                     the rate and amount of the contributions in respect of each
                     member of the Disclosed Scheme made in the three year
                     period ending on the date of this Agreement.

              (c)    No assurance, promise or guarantee (whether oral or
                     written) has been made or given to any member of any
                     Disclosed Scheme which is a Defined Contribution Scheme of
                     any particular level or amount of benefits to be provided
                     for in respect of him under the Disclosed Scheme on
                     retirement, death or leaving service and the Company may
                     terminate any obligation it may have to contribute to any
                     Disclosed Scheme which is a Defined Contribution Scheme
                     without incurring any liability to any member of the
                     Disclosed Scheme under any agreement or arrangement with
                     the member.

              (d)    The Disclosed Scheme is and will be fully funded on the
                     basis of service completed to the date of Completion and
                     salaries projected to normal retirement date.

              (e)    All information supplied for the purpose of the most recent
                     actuarial valuation or funding review of each Disclosed
                     Scheme was true, complete and accurate in all material
                     respects.

              (f)    Since the date of the most recent actuarial valuation or
                     funding review referred to in paragraph (e), all
                     contribution and expenses due under the Disclosed Scheme up
                     to the date of Completion have been paid at the rate
                     recommended in the most recent actuarial valuation or
                     funding review in respect of the Disclosed Scheme and
                     applied in accordance with the provisions thereof and the
                     trusts upon which they are to be held.

              (g)    The Disclosed Scheme which is a Defined Benefit Scheme is
                     sufficiently and effectively funded on an on-going basis
                     using actuarial assumptions which are within the range of
                     generally accepted actuarial

                                    -64-
<PAGE>

                     practice in relation to all relevant factors (which
                     assumptions include, without limitation, those
                     specified in paragraph (t) to secure all benefits
                     currently, prospectively and contingently payable
                     under the Disclosed Scheme at least to the extent which
                     they have accrued at Completion.

              (h)    The assumptions referred to in paragraph (g) include the
                     following:

                     (i)    that the members to whom the benefits relate remain
                            in pensionable employment under the Disclosed Scheme
                            until their normal pension date under the Disclosed
                            Scheme subject to reasonable assumptions as to
                            withdrawal, early retirement or death;

                     (ii)   that each member's remuneration used for determining
                            benefits under the Disclosed Scheme shall be
                            increased in respect of the period from Completion
                            to the member's normal pension date or earlier
                            assumed date of withdrawal, early retirement or
                            death at a rate which is consistent with the
                            assumption as to the yield on investments; and

                     (iii)  that provisions shall be made to reflect the recent
                            practice of the Disclosed Schemes with regard to the
                            provision of increases to pensions in payment and in
                            deferment.

       12.5   COMPLIANCE

              (a)    Each Disclosed Scheme is Approved and the Sellers are not
                     aware of any circumstances which might give the Revenue
                     Commissioners reason to withdraw approval, or if the
                     Disclosed Scheme is not Approved, it has been designed so
                     as to be capable of receiving Approval and the Sellers are
                     not aware of any circumstances which might give the Revenue
                     Commissioners reason to withhold the grant of Approval so
                     as to have effect from the date of commencement of the
                     Disclosed Scheme.

              (b)    Each Disclosed Scheme has been designed to comply with, and
                     has been administered in accordance with, all applicable
                     laws including, without limitation, the Pensions Act 1990
                     and all relevant statutes and subordinate legislation of
                     Ireland and all relevant provisions of the laws of the
                     European Communities, and subject to all applicable laws in
                     accordance with the trusts, powers and provisions of the
                     Disclosed Scheme.

                                    -65-
<PAGE>

130    COMPLIANCE WITH LAW

       13.1   DIRECTORS AND OTHER OFFICERS

              (a)    None of the persons who at present is, or who at any time
                     within the last three years was, a director or officer of
                     the Company is, or at any material time was, ineligible to
                     be a director by reason of the Companies Acts, 1963 to
                     1990.

              (b)    None of the directors or other officers of the Company has
                     been declared by a court to be a person to whom chapter I
                     of part IV of the 1990 Act applies, nor has any person been
                     or is an auditor, director or other officer in any way,
                     whether directly or indirectly, concerned or taken part in
                     the promotion, formation or management of the Company in
                     breach of Section 160 of the 1990 Act.

              (c)    the only directors and other officers of the Company are
                     the persons whose names are listed in Schedule 2 and no
                     person is or has been a shadow director (within the meaning
                     of section 27 of the 1990 Act) of the Company.

       13.2   UNLAWFUL PAYMENTS

              The Company has not and no person for whose acts or defaults the
              Company may be vicariously liable has:

              (a)    induced any person to enter into any agreement or
                     arrangement with the Company by means of any unlawful or
                     immoral payment, contribution, gift, or other inducement;

              (b)    offered or made any unlawful or immoral payment,
                     contribution, gift or other inducement to any government
                     official or employee; or

              (c)    directly or indirectly made any unlawful contribution to
                     any political activity.

       13.3   GENERAL

              (a)    All appropriate returns and all relevant information have
                     been supplied by the Company to the Revenue Commissioners,
                     the Department of Health, the Department of Social Welfare,
                     the Department of Enterprise and Employment and all other
                     relevant governmental, regulatory, municipal and local
                     authorities (in any country in the world) in connection
                     with the business of the Company and the same were and are
                     complete true and accurate in all material respects.

                                    -66-
<PAGE>

              (b)    Full details of all present negotiations with and
                     investigations and enquiries by any of the public
                     authorities referred to in the immediately preceding
                     paragraph concerning any material liability (or alleged
                     liability) actual or contingent of or any material act or
                     omission of the Company (or any officer, employee or agent
                     of the Company in such capacity) have been disclosed to the
                     Purchaser and in respect of all such negotiations,
                     investigations and enquiries full and frank disclosure of
                     all material facts was made to such public authorities
                     concerned and all information supplied to them was true and
                     accurate in all respects and there were and are no
                     circumstances which would render any such information
                     inaccurate untrue or misleading in any respect.

140    BROKERAGE OR COMMISSIONS

       No one is entitled to receive from the Company any finder's fee brokerage
       or commission in connection with this Agreement or anything contained in
       it.

150    CONTRACTS AND COMMITMENTS

       15.1   AGREEMENTS

              The Company is not a party to nor has any liability under any long
              term, onerous or unusual agreement, arrangement or obligation
              including, without limitation:

              (a)    any agreement, arrangement or obligation which was entered
                     into otherwise than in the ordinary and usual course of its
                     business;

              (b)    any agreement, arrangement or obligation which was entered
                     into otherwise than by way of a bargain at arm's length;

              (c)    any power of attorney given by the Company;

              (d)    any sale or purchase option or similar agreement,
                     arrangement or obligation affecting any assets owned or
                     used by the Company or by which the Company is bound;

              (e)    any agreement, arrangement or obligation which cannot
                     readily be fulfilled or performed by the Company on time or
                     without undue or unusual expenditure of money or effort; or

              (f)    any contract or arrangement of any kind, including, without
                     limitation, any contract of an unusual or onerous or long
                     term nature or any contracts of purchase or sale of any
                     properties or any other property purchased or sold by the
                     Sellers in the five years preceding the Completion Date or
                     any interest in the Subsidiary Undertaking or any

                                    -67-
<PAGE>

                     subsidiary which was in the five years preceding the
                     Completion Date wholly owned by the Company or the
                     Subsidiary Undertaking;

              (g)    any guarantee, comfort letter, buy back obligations,
                     underwriting obligation no indemnity given by the Company;

              (h)    any agreement for the hire, rent, hire purchase or purchase
                     on deferred terms by the Company of any asset (other than
                     the Properties) excluding hirings and leases for periods of
                     less than one month and agreements in respect of which the
                     annual rental or payment does not exceed L1,000;

              (i)    any agreement or arrangement under which any person has
                     authority to pledge the credit of the Company;

              (j)    any agreement or arrangement relating to the business of
                     the Company which includes a provision enabling a third
                     party to terminate such agreement on or following
                     Completion as a result of the sale and/or purchase of the
                     Shares and in respect of which any such termination would
                     have an adverse effect on the Company or the Company's
                     business and no such agreements or arrangements will be
                     terminated following Completion;

              (k)    any loan capital or other indebtedness of the Company which
                     will become repayable or any security given by the Company
                     which will or may become enforceable by reason of the
                     acquisition by the Purchaser of the Shares;

              (l)    any obligation on the part of the Company to pay any
                     royalty or other similar periodic sums in the nature of
                     royalties;

              (m)    any mortgage, charge, lien, Encumbrance, debenture or other
                     security interest;

              (n)    any option granted by the Company.

       15.2   The Company is not a party to nor has it any liability under:

              (a)    any agreement or arrangement whereby it is a member of a
                     joint venture, consortium, partnership or incorporated or
                     unincorporated association (other than bona fide trade
                     associations);

              (b)    any distributorship, agency, marketing, purchasing,
                     service, licensing or management agreement or arrangement
                     any or other agreement,

              or if it is:

                                    -68-
<PAGE>

                     (i)    full details of such agreement, arrangement and
                            liability are set out in the Schedules; and

                     (ii)   such agreement and/or arrangement can be terminated
                            by the Company on less than three months' notice
                            without payment of compensation.

       15.3   The Company has not during the twelve months ending on the date of
              this Agreement incurred any stock loss under a contract above 2%
              of the value of the stock the subject of the contract for which
              the Company may be liable.

       15.4   RESTRICTIONS ON BUSINESS

              The Company is not a party to nor has it any liability under:

              (a     any agreement or arrangement which restricts its freedom to
                     carry on its business in any part of the world in such
                     manner as it thinks fit; or

              (b     any agreement or arrangement in respect of which:

                     (i0    particulars have been notified to the Commission of
                            the European Communities for an exemption under
                            Article 85(3) of the Treaty of Rome; or

                     (ii0   an application has been made to the Commission of
                            the European Communities for a negative clearance
                            under Article 85 or 86 of the Treaty of Rome.

       15.5   GUARANTEES ETC

              Save as disclosed in the Accounts, there is not outstanding in
              respect of any of the Company or any director or shadow director
              of any of the Company or any person connected with any of them any
              guarantee, indemnity or suretyship given by or for the benefit of
              any of the Company or any director or shadow director of any of
              the Company or any person connected with any of them.

       15.6   LOANS ETC

              With the exception of the loans, quasi-loans, credit transactions,
              debts and securities particulars of which are contained in the
              Schedules, all of which have been entered into in compliance with
              all legal and statutory requirements and conditions, there are:

              (a     no loans, quasi-loans or credit transactions made by any of
                     the Company to any of the Sellers or any director or shadow
                     director of any of the Company or any person connected with
                     it;

                                    -69-
<PAGE>

              (b     no debts owing by the Company by any of the Sellers or any
                     director or shadow director of the Company or any person
                     connected with any of them;

              (c     no debts owing by any of the Company other than debts which
                     have arisen in the ordinary course of business; and

              (d     no securities for any such loans or debts as aforesaid.

       15.7   CONTRACTS WITH SELLERS OR DIRECTORS ETC

              With the exception of the contracts and arrangements particulars
              of which are contained in the Schedules, there are no existing
              contracts or arrangements to which the company is a party and in
              which any of the Sellers or any director or shadow director of the
              Company or any person connected with it is interested, whether
              directly or indirectly.

       15.8   ARRANGEMENTS OR UNDERSTANDINGS

              There are not outstanding any arrangements or understandings
              (whether legally binding or not) between the Company and any
              person who is a shareholder, or the beneficial owner of any
              interest in, or any director or shadow director of the Company or
              any person who is connected with any such director in the Company
              or in any company in which the Company is interested, or any
              person connected with any such person, relating to the management
              of Company's businesses, or the appointment or removal of
              directors of the Company, or the ownership or transfer of
              ownership or the letting of any of the assets of the Company, or
              the provision, supply or purchase of finance, goods, services or
              other facilities to, by or from the Company, or otherwise
              howsoever relating to its affairs.

       15.9   COMPETING BUSINESSES

              None of the Sellers has any right or interest, direct or indirect,
              in any business other than those now carried on by the Company
              which is, or are likely to become, competitive with the businesses
              of the Company or any proposed new business.

16.    COMPLIANCE WITH THE COMPANIES ACT, 1990

       16.1   The Company has not:

              (a     had its affairs investigated pursuant to section 7, 8 or 9
                     of the Companies Act, 1990 (the "1990 ACT") , nor has there
                     been any investigation of the ownership of the shares of
                     the Company pursuant to section 14 or request pursuant to
                     section 15 of the 1990 Act, nor has

                                    -70-
<PAGE>

                     there been a direction made under section 16 of the
                     1990 Act nor an investigation pursuant to section 66
                     of the 1990 Act;

              (b     entered into any arrangement in breach of section 28 or 29
                     of the 1990 Act;

              (c     made any loans or quasi-loans (within the meaning of
                     section 25 of the 1990 Act), entered into any credit
                     transactions as creditor or entered into any guarantee or
                     indemnity or provided any security in connection with a
                     loan, quasi-loan or credit transaction in breach of section
                     31 of the 1990 Act;

              (d     the Company is not nor has it been related to any other
                     company for the purpose of section 140 of the 1990 Act and
                     is not and will not at any time be liable to be subject to
                     an order made under that section by virtue of any act
                     (whether of commission or omission) that occurred prior to
                     Completion;

              (e     had a notice served on it by its auditors pursuant to
                     section 185 or 194 of the 1990 Act;

              (f     been struck off and subsequently restored to the register
                     pursuant to section 311A of the 1963 Act;

              (g     entered into any transaction or arrangement particulars
                     whereof would, pursuant to section 41 of the 1990 Act,
                     require to be contained in the accounts prepared by
                     Holdings and Darshaan; or

              (h     purchased or redeemed its own shares or those of its
                     holding company or created treasury shares pursuant to part
                     XI of the 1990 Act.

17.    GENERAL

       17.1   No sums are owing by the Company to its auditors, solicitors or
              other professional advisers except in the ordinary course of
              business.

       17.2   There are no loans owing to the Company by any of its directors.

       17.3   Neither the Company nor any of its officers, employees or agents
              nor other person acting on its behalf has ever directly or
              indirectly given or agreed to give any gift or similar benefit to
              any customer, supplier, governmental employee or other person who
              is or may be in a position to help or hinder its business or
              assist it in connection with any actual or proposed transaction.

       17.4   Except as disclosed in the Schedules the Company it not a member
              of any trade association and in respect of any trade associations
              which have been

                                    -71-
<PAGE>

              disclosed it has complied with all its obligations as a member
              thereof and all codes of practice promulgated by such
              association.

       17.5   [Year 2000/EMU compliance and frustration of contracts, loss of
              profits etc.]

                                    -72-
<PAGE>

                                  SCHEDULE VI

                                 TAX WARRANTIES

The Warranties in this Schedule are the Tax Warranties.

1.     GENERAL

       1.1    All taxation of any nature whatsoever or other sums imposed,
              charged, assessed, levied or payable under the provisions of
              applicable legislation relating to taxation for which the Company
              is liable as a result of any act or omission by the Company prior
              to Completion will if, and in so far as such taxation or other
              sums ought to be paid prior to or on Completion, have been paid at
              or before Completion and in particular, but without prejudice to
              the generality of the foregoing, at Completion, all amounts due
              for payment to the Revenue Commissioners in respect of excise duty
              and of Value Added Tax in respect of goods or services supplied
              prior to Completion or goods imported prior to Completion, and of
              income tax deductible prior to Completion under Schedule E by
              virtue of the PAYE regulations from time to time in force will
              have been paid so that the Company will have no liability in
              respect thereof and at Completion all Social Welfare and Pay
              Related Social Insurance contributions (both employer's and
              employees') and any other levies and impositions due in respect of
              the employees of the Company will have been duly paid.

       1.2    The Company is not liable and has not at any time since the
              Balance Sheet Date been liable to pay interest on overdue
              taxation.

       1.3    The Company has not acquired or disposed of any asset or entered
              into any transaction otherwise than by way of bargain at arm's
              length.

       1.4    The Company has not entered into any financing or leasing
              agreement in which or in connection with which the Company has
              indemnified any other party against any claim, loss or other
              liability arising from any change in tax legislation or in the
              interpretation of tax legislation.

       1.5    There are set out in the Schedules full particulars of all
              differences between the accounting and taxation treatments of all
              items in the Accounts.

       1.6    There is no appeal by the Company pending against any assessment
              to tax and the Company is not in default in payment of any tax
              within the period prescribed for payment thereof.

                                    -73-
<PAGE>

       1.7    The Company has not committed any act nor made any omission which
              might constitute an offence under Section 1078 of the Taxes
              Consolidation Act, 1997.

       1.8    The Company has not been at any time, for taxation purposes,
              resident in any jurisdiction other than the Republic of Ireland
              nor has it been at any time managed or controlled in or from any
              country other than the Republic of Ireland and the Company has not
              at any time carried on any trade in any other country and does not
              have a permanent establishment in any country other than the
              Republic of Ireland.

       1.9    The Company has for each accounting period up to and including the
              accounting period ending on Completion furnished the Company's
              Inspector of Taxes with full and accurate particulars relating to
              the affairs of the Company, and also has properly and within the
              prescribed periods of time made all returns and given or delivered
              all notices, accounts and information required for the purpose of
              taxation, and all such have been correct in all material respects
              and on a proper basis and none such are disputed by the Revenue
              Commissioners or other authority concerned, there are no grounds
              or circumstances which might cause any such dispute and the
              Company has made all claims which would be of benefit to it within
              the time limits laid down in the relevant legislation.

       1.10   The Company has submitted and the Revenue Commissioners have where
              relevant agreed computations of its taxable profits in respect of
              all periods up to and including the year ended on the Balance
              Sheet Date.

       1.11   The Company has not entered into or been a party to any schemes or
              arrangements designed partly or wholly for the purpose of avoiding
              taxation.  The Company has not been involved in any "tax avoidance
              transaction" within the meaning of Section 811 of the Taxes
              Consolidation Act, 1997 and no provisions of that Section apply to
              the Company in respect of any event (whether or not involving the
              Company) which took place before Completion or in respect of any
              series of events, (whether or not such events or any of them
              involve the Company) taking place partly before Completion and
              partly after Completion.

       1.12   No act or transaction has been effected in consequence of which
              the Company is liable for any taxation primarily chargeable
              against some other person.

       1.13   The making of returns, payment of preliminary tax and all other
              requirements of Sections 950 to 959 of the Taxes Consolidation
              Act, 1997 have been complied with fully by the Company.

       1.14   No penalty under Section 1084 of the Taxes Consolidation Act,
              1997 has or will become payable.

                                    -74-
<PAGE>

       1.15   No notice of attachment has been served on the Company or in
              relation to any funds of the Company under Section 1002 of the
              Taxes Consolidation Act, 1997.

       1.16   The Company has for each accounting period:-

              (i)    furnished the Inspector of Taxes with full and accurate
                     particulars relating to the affairs of the Company;

              (ii)   properly and within the prescribed periods of time made all
                     returns and given or delivered all notices, accounts and
                     information required for the purposes of taxation; and

              (iii)  complied full with the requirements of Sections 950 to 959
                     of the Taxes Consolidation Act, 1997, regarding the payment
                     of preliminary tax, corporation tax and capital gains tax.

              All such particulars, returns, notices, accounts information and
              payments have been correct in all material respects and on a
              proper basis and none such are disputed by the Revenue
              Commissioners or other authority concerned.  In addition there are
              no grounds or circumstances which might cause any dispute and the
              Company has made all claims which would be of benefit to it within
              the time limits laid down in the relevant legislation.

       1.17   No transaction has or had been effected by the Company in respect
              of which any consent or clearance from the Revenue Commissioners
              or other taxation authority was required and which consent or
              clearance (as the case may be) was not obtained.

       1.18   The Company is not and has never been a member of a group of
              companies within the meaning of Section 590 or Section 616 of the
              Taxes Consolidation Act, 1997, or associated with any other
              company within the meaning of Section 423(1), Taxes Consolidation
              Act, 1997.

       1.19   The provisions of the Waiver of Certain Tax, Interest and
              Penalties Act, 1993 do not have any application to the Company or
              any of its officers.

       1.20   The Company has not made a relevant investment within the meaning
              of Section 481, and Schedule 32, Paragraph 22 of the Taxes
              Consolidation Act, 1997.

2.     CORPORATION TAX

       2.1    (a     The Company has not paid remuneration to its employees,
                     officers or directors (either deemed or otherwise) in
                     excess of such amount as will be deductible in computing
                     the taxable profits of the Company; and

                                    -75-
<PAGE>

              (b     the Company has not paid and will not pay remuneration or
                     compensation for loss of office or make any gratuitous
                     payment or any other payment in respect of management or
                     other services rendered or to be rendered to the Company to
                     any of its present or former directors or employees (deemed
                     or otherwise) which will not be deductible in computing the
                     taxable profits of the Company.

       2.2    In respect of Schedule 32, Paragraph 7 of the Taxes Consolidation
              Act, 1997, no circumstance exists which would lead the Revenue to
              withdraw approval of the scheme or to contend that the Company is
              not a qualifying Company carrying on a specified trade.

       2.3    In respect of profit sharing schemes under Sections 509 to 518 of
              the Taxes Consolidation Act, 1997, no circumstance exists which
              would lead the Revenue to withdraw approval of any such scheme.

       2.4    In respect of employee share ownership trusts under Section 519
              and Section 511(A) of the Taxes Consolidation Act, 1997, no
              circumstance exists which would lead the Revenue to withdraw
              approval of any such scheme.

       2.5    If the employees of the Company have benefited from Section 479 of
              the Taxes Consolidation Act, 1997, no circumstance exists in
              relation to the Company which would lead to the withdrawal of the
              relief.

       2.6    The Company has not, within the meaning of Sections 520 to 529 of
              the Taxes Consolidation Act, 1997, received payment in respect of
              professional services from an accountable person.

       2.7    No loan or advance or payment has been made or consideration given
              or transaction effected falling within Sections 438 or 439 of the
              Taxes Consolidation Act, 1997.

       2.8    The Company has duly complied with the requirements of Section 239
              of the Taxes Consolidation Act, 1997 and with the requirements of
              all other provisions relating to the deduction and withholding of
              tax at source up to the date hereof and all such tax which has
              become due to the Revenue Commissioners has been paid to the
              Revenue Commissioners.

       2.9    The Company has never incurred any expense or paid any amount in
              consequence of which the Company has been or could be treated
              under Sections 436 or 437 of the Taxes Consolidation Act, 1997 as
              having made a distribution.

       2.10   The limitation on the meaning of "distribution" provided for by
              Sections 133 and 134 of the Taxes Consolidation Act, 1997 does not
              apply to any financial arrangements of the Company.

                                    -76-
<PAGE>

       2.11   The Company is not affected by the amendments to Part IX of the
              Corporation Tax Act, 1976 contained in Section 133(3) and 134(2)
              of the Taxes Consolidation Act, 1997.

       2.12   Section 138 of the Taxes Consolidation Act, 1997 does not apply to
              any dividend paid by the Company in respect of its preference
              shares.

       2.13   The Company has not made any claim for relief in respect of stock
              appreciation under Section 665 to 669 of the Taxes Consolidation
              Act, 1997 or under Section 31 and 31A of the Finance Act, 1975 or
              Section 26 of the Finance Act, 1976 or Section 49 Finance Act,
              1984.

       2.14   The Company has not effected or entered into any act transaction
              or arrangement of any nature whereby it has incurred or may
              hereafter incur any liability under or by virtue of any of
              Sections 98, 99, 100 and 103 of the Taxes Consolidation Act, 1997.

       2.15   The Company has not surrendered any amount by way of company
              relief under the provisions of Sections 411 to 424 and Section 456
              of the Taxes Consolidation Act, 1997.

       2.16   The Company is not and will not at any time in the future become
              liable to make a subvention payment or any other payment for an
              amount surrendered by any other Company under or in connection
              with the provisions of Section 411 of the Taxes Consolidation Act,
              1997.

       2.17   The Company has not at any time:

              (a)    repaid or redeemed or agreed to repay or redeem any shares
                     of any class of its share capital or otherwise reduced or
                     agreed to reduce its issued share capital or any class
                     thereof; or

              (b)    capitalised or agreed to capitalise in the form of shares,
                     debentures or other securities or in paying up any amounts
                     unpaid on any shares debentures or other securities any
                     profits or reserves of any class or description or passed
                     or agreed to pass any resolution to do so; or

              (c)    provided capital to any company on terms whereby the
                     company so capitalised has in consideration thereof issued
                     shares loan stock or other securities where the terms of
                     any such capitalisation were otherwise than by way of a
                     bargain made at arm's length or where the shares loan stock
                     or other securities acquired are shown in the Accounts at a
                     value in excess of their market value at the time of
                     acquisition.

       2.18   No allowable loss which has arisen or which may hereafter arise on
              the disposal by the Company of shares in or securities of any
              company is liable to

                                    -77-

<PAGE>

              be disallowed in whole or in part by virtue of the
              application of Section 621 or 622 of the Taxes Consolidation
              Act, 1997.

       2.19   No change of ownership of the Company has taken place in
              circumstances such that Section 401 of the Taxes Consolidation
              Act, 1997 has or may be applied to deny relief for a loss or
              losses incurred by the Company.

       2.20   On a sale of any machinery and plant at the value thereof shown in
              the Accounts no balancing charge will be incurred.

       2.21   There has not been, in respect of any accounting period, any
              excess of distributable investment and estate income within the
              meaning of Section 434 of the Taxes Consolidation Act, 1997.

       2.22   The Company is entitled to relief up to 5th April 1990 under
              Sections 144 to 146 of the Taxes Consolidation Act, 1997.

       2.23   The Company has never claimed relief under Sections 147 to 149,
              151, 442 to 450 and 453 and Schedule 32, paragraphs 4, 5(2), 6(2),
              16(1) - (4) and 18 of the Taxes Consolidation Act, 1997.

       2.24   The Company has not entered into transactions by virtue of which
              it will be chargeable under Case IV, Schedule D in accordance with
              Section 815 of the Taxes Consolidation Act, 1997.

       2.25   The restrictions on the use of capital allowance for certain
              leased assets, as set out in Section 403 of the Taxes
              Consolidation Act, 1997 do not have application to any
              transactions entered into by the Company.

       2.26   The provisions of Sections 272 and 317(3) of the Taxes
              Consolidation Act, 1997 apply to all expenditure incurred by the
              Company, and have been properly implemented in the accounts of the
              Company.

       2.27   No circumstance exists in connection with the Company which would
              lead to the withdrawal of relief for investment in research and
              development as provided for in Chapter III of the Finance Act,
              1986.

       2.28   The Company has not received notice under Section 70 of the
              Corporation Tax Act, 1976 as amended by Section 56 of the Finance
              Act, 1986.

       2.29   The provisions of Section 1013 of the Taxes Consolidation Act,
              1997, do not apply to any transaction entered into by the Company.

       2.30   The Company is not liable to any claim in respect of tax due under
              Sections 530 or 531 of the Taxes Consolidation Act, 1997, and the
              Company has complied with the provisions of these Statutes.

                                    -78-
<PAGE>

       2.31   The Company has not entered into any transaction as a result of
              which it could be assessed to tax under Schedule D in accordance
              with Section 639 to 647 of the Taxes Consolidation Act, 1997.

       2.32   The Company has not received a notice under Section 446 of the
              Taxes Consolidation Act, 1997, requiring the Company to desist
              from an activity or revoking the certificate.

       2.33   The utilisation of losses incurred by the Company is not
              restricted by Section 456 of the Taxes Consolidation Act, 1997.

       2.34   No reduction or withdrawal of relief has occurred under Section
              222 of the Taxes Consolidation Act, 1997.

       2.35   No allowance in respect of capital expenditure is or may be
              restricted by virtue of Sections 271, 273, 274, 278, 283, 285,
              300, 304, 305, 316, 317, 320, 658 and Schedule 32, paragraphs 9
              and 23(2) of the Taxes Consolidation Act, 1997.

       2.36   Neither the Company nor any of its shareholders is affected by the
              restrictions on the Business Expansion Scheme relief which are
              contained in Sections 489 to 498 of the Taxes Consolidation Act,
              1997.

       2.37   The Company has not entered into or taken any steps the object of
              which is a transaction which comes or might come within Section
              817 of the Taxes Consolidation Act, 1997.

       2.38   The Company does not beneficially own nor has it ever beneficially
              owned shares to which Sections 155 and 489 of the Taxes
              Consolidation Act, 1997 apply or may have applied.

       2.39   The goods produced by the Company fall within the definition of
              goods regarded as manufactured contained in Section 443 of the
              Taxes Consolidation Act, 1997.

       2.40   The tax benefit envisaged at the time of borrowing in respect of
              any loan under Section 130 of the Taxes Consolidation Act, 1997
              will under present legislation remain undiminished until such loan
              has been repaid.

       2.41   The Company does not own nor has it ever owned an asset which
              constitutes a material interest in an off-shore fund which is or
              has at any time been a non qualifying off-shore fund within the
              terms of Sections 740 to 747 of the Taxes Consolidation Act, 1997.

       2.42   Any machinery or plant provided for use for the purposes of the
              trade of the Company after 1 April 1990 is used wholly and
              exclusively for the purposes of the trade of the Company.

                                    -79-
<PAGE>

       2.43   The cost of acquisition for the purposes of corporation tax on
              chargeable gains to the Company of each asset of the Company
              (except trading stock and work in progress) is not less than the
              book value of that asset as provided for in the Company's accounts
              and the Company has not acquired any asset otherwise than by way
              of bargain at arms-length.

       2.44   As at Completion, the Company has accumulated trading corporation
              tax losses of IRL[                         ] and advance
              corporation tax of IRL[                            ] available for
              carrying forward.  The Company has continued to carry on the trade
              of [                                              ] since the
              accumulation of corporation tax losses and advance corporation tax
              without any major change in the nature or conduct of the said
              trade.

       2.45   The Company has not since its incorporation acquired any assets
              other than trading stock from any company which at the time of the
              acquisition was a member of the same Company as defined in
              Sections 590(11) and 616 of the Taxes Consolidation Act, 1997.

       2.46   Where fixed assets have been stated in the Accounts in excess of
              their cost, any potential liability to Taxation on chargeable
              gains that would accrue on the sale of these assets at their
              values stated are either fully provided for or disclosed by way of
              note in the Accounts.

       2.47   The Company is not a close company as defined in Taxes
              Consolidation Act, 1997.

3.     ADVANCE CORPORATION TAX ("ACT")

       3.1    The Company has no liability to ACT under Sections 159 to 172 of
              the Taxes Consolidation Act, 1997.

       3.2    The Company has not made an election under Section 165 of the
              Taxes Consolidation Act, 1997 and no surrender has been made under
              Section 166 of the Taxes Consolidation Act, 1997.

       3.3    The Company is not affected by the provisions of Section 167 or
              Section 170 of the Taxes Consolidation Act, 1997.

                                    -80-
<PAGE>

4.     CAPITAL GAINS TAX

       4.1    The Company has not made any claim  under Section 597 of the Taxes
              Consolidation Act, 1997, as respects the consideration for the
              disposal of or of its interest in any assets which are defined in
              the said Section 597 as "the old assets".

       4.2    The Company has not made any such transfer as is referred to in
              Section 589 of the Taxes Consolidation Act, 1997, or received any
              asset by way of gift as mentioned in Section 978 of the Taxes
              Consolidation Act, 1997.

       4.3    The Company has not been a party to or involved in any share for
              share exchange nor any scheme of reconstruction or amalgamation
              such as are mentioned in Sections 583 to 588, Section 600, Section
              615 or Section 733 of the Taxes Consolidation Act, 1997, under
              which shares or debentures have been issued or any transfer of
              assets effected.

       4.4    The Company has not entered into any transaction which has, will
              or may give rise to a charge to tax under the provisions of Taxes
              Consolidation Act, 1997 or under the provisions of the Capital
              Acquisitions Tax Act, 1976.

       4.5    The Company has no liability by virtue of the provisions of
              Section 571 of the Taxes Consolidation Act, 1997.

       4.6    The Company has not made any claim under Section 1005 of the Taxes
              Consolidation Act, 1997 and no tax liability has been deferred
              under any other provision of the Taxes Consolidation Act, 1997
              including Sections 981 and 563(1) of the Taxes Consolidation Act,
              1997.

       4.7    The Company has not entered into any transactions which give rise
              to a liability under Sections 590, 616, 623, 625, 626 of the Taxes
              Consolidation Act, 1997.  Nor has the Company entered into any
              transactions to which Sections 632 to 635, 637 and 648 to 649 of
              the Taxes Consolidation Act, 1997, apply.

       4.8    There have been no claims under Section 538 of the Taxes
              Consolidation Act, 1997.

       4.9    The Company has not entered into or taken any steps the object of
              which is a transaction which comes within or might come within
              Sections 549 and 817 of the Taxes Consolidation Act, 1997 .

       4.10   The Company has not entered into or taken any steps, the object of
              which is a transaction which comes within or might come within
              Section 549 of the Taxes Consolidation Act, 1987.

                                    -81-
<PAGE>

5.     STAMP/CAPITAL DUTY

       5.1    The Company has duly complied with and has no liability under
              Section 1 of the Stamp Act, 1891 as substituted by the provisions
              of Section 94 of the Finance Act, 1991.

       5.2    All documents in the possession or under the control of or
              required in connection with the title of the Company to any matter
              or thing of the Company which attract stamp duty have been
              properly stamped.

       5.3    No relief, exemption or reduction has been obtained from company's
              capital duty or stamp duty and without prejudice to the generality
              of the foregoing no relief, exemption or reduction has been
              obtained from company's capital duty or stamp duty under Section
              72 of the Finance Act, 1973 (as amended) or from stamp duty under
              Section 19 of the Finance Act, 1952 (as amended) or Section 31 of
              the Finance Act, 1965 (as amended) which:

              (a)    has become liable to forfeiture; or

              (b)    may be forfeited in the future.

       5.4    All capital duty and/or stamp duty payable by the Company in
              respect of any of the transactions referred to in the following
              Sections of the Finance Act, 1973 has been duly and promptly paid
              by the Company so that there is no liability in respect thereof or
              any interest thereon:

              (a)    Section 63;

              (b)    Section 64;

              (c)    Section 68; and

              (d)    Sections 69 and 70.

       5.5    All other capital and/or stamp duty howsoever arising or payable
              has been paid by the Company and there is no outstanding liability
              therefore or interest thereon.

6.     VALUE ADDED TAX

       6.1    The Company is a registered and taxable person for the purposes of
              the Value Added Tax Acts and has complied in all respects with
              such legislation and all regulations made or notices issued
              thereunder and has maintained full complete correct and up to date
              records, invoices and other documents (as the case may be)
              appropriate or requisite for the purposes thereof.

                                    -82-
<PAGE>

       6.2    The Company is not in arrears with its payments or returns or
              notifications under the Value Added Tax legislation regulations or
              notices or liable to any abnormal or non routine payment or any
              forfeiture or penalty or to the operation of the penal provisions
              contained therein.

       6.3    The Company has not been required by appropriate fiscal
              authorities to give security under the Value Added Tax
              legislation.

       6.4    No arrangement exists or has existed whereby pursuant to Section
              8(8) of the Value Added Tax Act, 1972 and Regulation 5 of the
              Value Added Tax Regulation 1979 (as amended) the business
              activities of the Company are or were deemed to be carried on by
              any other person or the business activities of any other person
              are or were deemed to be carried on by the Company.

       6.5    The Company has not availed of the procedure in Section 58 of the
              Finance Act, 1989 whereby a trader may account and make returns
              for VAT purposes other than after each two monthly taxable period.

       6.6    The Company does not make any supplies which are exempt for VAT
              purposes.

7.     CAPITAL ACQUISITIONS TAX

       7.1    There is no unsatisfied liability to capital acquisitions tax
              attached or attributable to the Shares or any of the assets of the
              Company and the Shares and the said assets are not subject to a
              charge in favour of the Revenue Commissioners.

       7.2    No person is liable to capital acquisitions tax attributable to
              the value of any of the Shares and in consequence no person has
              the power to raise the amount of such tax by sale or mortgage or
              by a terminable charge on any of the Shares.

       7.3    The Company has not entered into or taken any steps the object of
              which is a transaction which comes within Section 90 of the
              Finance Act, 1989.

8.     WEALTH TAX

       The Company has not any outstanding liability for wealth tax under the
       Wealth Tax Act, 1975.

9.     PAYE/SOCIAL WELFARE

       9.1    The Company is registered for the purposes of regulations made
              under Section 986 of the Taxes Consolidation Act, 1997, and has
              complied in all respects with such regulations and has maintained
              full, complete, correct and up to date records appropriate or
              requisite for the purposes thereof.

                                    -83-
<PAGE>

       9.2    The Company is not in arrears with its payments or returns
              required under regulations made under Section 986 of the Taxes
              Consolidation Act, 1997, or liable to interest or any abnormal or
              non-routine payment or any forfeiture or penalty or to the
              operation of any penal provisions due to non-compliance with the
              said regulations.

       9.3    The Company has complied in all respects with Part II, Chapter I,
              Social Welfare Consolidation Act, 1981, Health Contributions Act,
              1979, Youth Employment Agency Act, 1981 and Section 16 Finance
              Act, 1983 and any regulations made under those Acts and has
              maintained full, complete, correct and up to date records
              appropriate or requisite for the purposes thereof and has not
              committed any offence under Section 115, Social Welfare
              Consolidation Act, 1981 and is not liable to any abnormal or
              non-routine payment or any forfeiture or penalty or to the
              operation of any penal provisions due to non-compliance with the
              said Acts and/or regulations.

       9.4    The Company has not availed of the Income Tax (Employments)
              Regulations 1989 (SI No. 58 of 1989) whereby an employer may make
              remittances of PAYE deducted from his employees at longer
              intervals than the normal monthly remittance basis.

       9.5    The Company has properly operated the PAYE system of deduction and
              of accounting to the Revenue Commissioners (and all similar
              systems to the appropriate authority in any other jurisdiction)
              for tax chargeable on the remuneration of its employees (deemed or
              otherwise) and has properly operated Social Welfare deductions (or
              their equivalent in any other jurisdiction) and had made all
              payments to the relevant authority in respect thereof.

                                    -84-
<PAGE>

           SPECIFIC DISCLOSURES TO PART 3.27 OF THE AGREEMENT

The following are disclosed.  The paragraph numbers stated below are for
convenience of reference only and refer to the clauses in Part 3.27 to the
Stock Purchase Agreement.   Buyer expressly accepts that disclosure of any
particular matter by reference to a specific paragraph is to be regarded as a
disclosure in respect of each and every other paragraph as far as same shall
be applicable and as disclosures to the warranties contained in Article 3 of
the Agreement.

1.     CAPACITY AND AUTHORITY

       1.1.   Microcellular Systems Limited ("the Company")  Certificate of
              Incorporation and Memorandum and Articles of Association.

              Microcellular Systems (Ireland) Limited Certificate of
              Incorporation and Memorandum and Articles of Association.

       1.2.   The consent of the Minister for Enterprise Trade & Employment
              under the Mergers, Take-Overs and Monopolies (Control) Act, 1978
              will be required.

2.     THE SELLERS

       2.1.   Subject to matters fully and fairly disclosed and set out in the
       Disclosure Schedules all information is true, complete and accurate.

       2.2.   (a)    Hogan & Associates are financial advisers to the Company.
                     Declan Hogan who is the principal of Hogan & Associates is
                     a Director of the company.

                     Hayes & Sons Solicitors are acting as legal advisers to the
                     Sellers.  Andrew O Rorke, a private investor in the
                     company, is a partner in Hayes & Sons.

       2.2.   (b)    See answer to 2.2. (a)

       2.2.   (c)    Declan Hogan has a 20% shareholding in Proyplon Limited.
                     Paul McKeown has a 20% interest in Proyplon Limited
                     Robert Dennyson has less than 1% interest in Proyplon
                     Limited Thomas Cunningham has less than 1% interest in
                     Proyplon Limited

<PAGE>

3.     SHARES, SUBSIDIARIES, CONSTITUTION, REGISTERS, RETURN, RECORDS

       3.1.   (a)    The share registers and minute books

       3.1.   (d)    Treasury Stock Options Schedule - already furnished. Put
                     and Call Option Agreement between the Company and Shannon
                     Free Airport Development Company Limited, 9th September
                     1999.

       3.1. (d)      Put Option Agreement between the Company and the Private
                     Investors in similar terms to the Agreement between the
                     Company and Andrew O Rorke - already furnished to the
                     Buyer.

                     Subscription Agreement between Shannon Free Airport
                     Development Company Limited and the Company and the
                     Promoters, dated 9th September 1999.

       3.1. (d)      (ii)   Vesting of Shares
                     There are employee share options some of which have vested
                     and more of which are capable of vesting details of which
                     have already been furnished and set out in Treasury Stock
                     Option Schedule referred to at 3.1. (d) above.

       3.1. (e)      Microcellular Systems (Ireland) Limited - is also a
                     subsidiary, see documentation disclosed under 1.1.

       3.2.          Are available for inspection -  Minutes, Statutory Books
                     Registers.

4.     ACCOUNTS.

       4.     The Company was incorporated on 16th March 1999 and no audited
              accounts have been prepared.  Accordingly a number of the
              accounting warranties sought at Section 4 are not applicable. No
              returns have been filed in the Companies Registration Office.

       4.3.   See answer to 4.

       4.4.   See answer to Schedule VI

       4.9.   The accounting books and records of the Company have been
              disclosed.

       4.10.  See answer to 4.

<PAGE>

5.     BUSINESS SINCE MARCH 31, 2000 BALANCE SHEET

       5.1.          See answer to 4.

       5.2.(b) (ix)  244,667 "A" Ordinary Shares of L1 were transferred by
                     Shannon Free Airport Development Limited to Guy Waugh, Bart
                     Kane, Tony Dunne and Declan Hogan and subsequently
                     converted and redesignated into 60,000 Ordinary shares of
                     $1.00 per share.

       5.2.(b) (x)   Guarantee and Indemnity between Microcellular Limited (UK)
                     Company and Ulster Bank Markets Limited 21 Jan 2000

                     Guarantee of Obligations and Indemnification Agreement
                     between Microcellular Systems USA Inc and Ulster Bank
                     Markets Limited. 26th October 1999.

                     Mortgage Debenture, Microcellular Systems Limited (UK)
                     Company and Ulster Bank Markets Limited. 21st January 2000

                     Letter from Ulster Bank to Declan Hogan re draft facility
                     letter - 26th October 1999

                     Charge on deposit between the Company and Ulster Bank
                     Markets Limited May 2000 - executed as per drafts furnished
                     to Buyer.

                     Assignment between the Company and Ulster Bank Markets
                     Limited May 2000.  Assignment was executed as per the draft
                     assignment furnished to Buyers.

                     Facility Letter, Ulster Bank to the Company - finalised May
                     2000 in the terms of the draft furnished to Buyer.

       5.2.(b) (xi)  Letter from Microcellular Systems Limited to Shannon
                     Developments  enclosing signed Letter of Acceptance of
                     Grant - 8th April 2000.

                     Grant Agreement between Shannon Free Airport Development
                     Company Limited and the Company, 21st January 2000.

                     Letter from Shannon Development to the company , 6th
                     December 1999.

                     Letter from Microcellular Systems Limited to Shannon
                     Developments, 21st December 1999.

       5.2.(b) (xvi) See answer to 5.2.(b) (ix).

<PAGE>

6.     ASSETS

       6.1.(b)(iii)  The computer equipment of the company may need to be
                     replaced within two years.

       6.2.          Memorandum of Agreement between Kerry Innovation Centre and
                     Mike Fitzgerald - Tenancy Agreement.

                     A verbal offer has been received from Shannon Development
                     for a new lease, the terms of which have been outlined to
                     the Buyer.

7.     TERMS OF TRADE AND BUSINESS

       7.1.   All Creditors have not been paid in accordance with their credit
              terms.  The amounts are due and owing and are properly
              reflected in the accounts.

8.     EMPLOYEES

       General

       8.1.(a)       Service contracts of Alastair Froggett, Director, David
                     Jones, Director, Ian Walter, Director, Mike Fitzgerald,
                     Director and Monty Egeland, Director and ADC Microcellular
                     Systems Employee  Handbook, have been disclosed.

       8.1.(c)       The Employee schedule furnished sets out the principal
                     terms and benefits of employees.

       8.10          A share option letter has been furnished to each employee
                     setting out details of the share option scheme. Details of
                     the scheme together with sample letters have been
                     furnished.

 9.    FINANCING/LIABILITIES

       9.2.(b)       Guarantee by Mike Fitzgerald re Lease of premises from
                     Kerry Innovation Centre.

       9.4.          See answer to 5.2.(b) (xi)

<PAGE>

12.    GENERAL

12.2.  Pension Scheme Documentation and Declaration of Trust re retirement
       benefits scheme have been furnished.

15.    COMPETING BUSINESS

       Any of the shareholders may have an interest in a competing business but
       warrantors are not aware of any material or significant interest.

<PAGE>

                                    SCHEDULE V1

                                   TAX WARRANTIES

1.     General

       Tax Returns have not yet been submitted and are not yet due.

       1.18.  The company is a member of a group of companies- please see
              corporate structure document.

2.     Corporation Tax

       2.36   Certain shareholders benefited from Business Expansion Scheme
              Relief when they invested in the Company.

       2.44   Not possible to quantify - no tax returns have yet been submitted.
              No advance corporation tax applicable in Ireland.

<PAGE>

                                  SCHEDULE 4.2(b)

                      CONSENTS AND GOVERNMENTAL AUTHORIZATIONS

Irish Ministry of Enterprise & Employment, under the Mergers and Acquisitions
Act of 1978, as amended.

<PAGE>

                                  SCHEDULE 4.2(c)

                             EXCEPTIONS TO NO CONFLICT<PAGE>

                                                                    Exhibit 10.8

                          SECOND SUPPLEMENTAL AGREEMENT

            SECOND SUPPLEMENTAL AGREEMENT, dated the 15th day of December, 1999
and effective with respect to the payment of rent and other charges with respect
to the Remaining 9th Floor Portion (as that term is hereinafter defined) as more
particularly set forth in Article 3 below as of the 1st day of December, 1999,
by and among 345 PARK AVENUE SOUTH PARTNERS LLC, a New York limited liability
company having an office c/o RFR Holding LLC, 400 Park Avenue, New York, New
York 10022 (hereinafter called "Landlord"), THE NEW YORK LAW PUBLISHING COMPANY,
a New York corporation having an office at 345 Park Avenue South, New York, New
York (hereinafter called "Tenant") and AMERICAN LAWYER MEDIA, INC. a Delaware
corporation having an office at 345 Park Avenue South, New York, New York
(hereinafter called "ALM").

                            W I T N E S S E T H :

            WHEREAS:

            A. Landlord's predecessor-in-interest, Park Avenue South/Armory,
Inc. ("Landlord's Predecessor-in Interest"), and Tenant have heretofore entered
into a certain lease, dated as of September 30, 1993 (the "Original Lease"),
which Original Lease was amended by that certain First Supplemental Agreement
(the "First Supplemental Agreement"), dated as of November 30, 1994. The
Original Lease, as amended by the First Supplemental Agreement as aforesaid, and
as the same may have been heretofore further amended, is hereinafter
collectively called the "Lease"). Pursuant to the Original Lease, Landlord's
Predecessor-in-Interest leased to Tenant, and Tenant leased from Landlord's
Predecessor-in-Interest, the entire seventh (7th) and eighth (8th) floors, and a
certain portion of the ninth (9th) floor as more particularly described in the
Original Lease (hereinafter sometimes referred to as the "Original 9th Floor
Portion"), and a portion of the basement floor (hereinafter collectively called
the "Original Demised Premises") in the building (hereinafter called the
"Building") known as 345 Park Avenue South, New York, New York for a term ending
on August 31, 2008 (which date is defined in the Original Lease as the
"Expiration Date"), upon which said term may expire or be terminated pursuant to
any conditions of limitation or other provisions of the Lease or pursuant to
law.

            B. Pursuant to the First Supplemental Agreement, Landlord's
Predecessor-in-Interest leased to Tenant, and Tenant leased from Landlord's
Predecessor-in-Interest, an additional portion of the ninth (9th) floor as more
particularly described in the First Supplemental Agreement (hereinafter referred
to as the "Added 9th Floor Portion"). Hereinafter the Original 9th Floor Portion
and the Added 9th Floor are collectively referred to as the "Leased 9th Floor
Portions", and that portion of the ninth (9th) floor of the Building which is
not part of the Leased 9th Floor Portions is hereinafter referred to as the
"Remaining 9th Floor Portion." Landlord and Tenant now desire to add the
Remaining 9th Floor Portion to the premises demised under the Lease and to
otherwise modify the Lease as hereinafter provided.

            C. Effective as of the date hereof, Tenant desires to assign all of
Tenant's right, title and interest in and to the Lease (as amended by this
Second Supplemental Agreement) to ALM, and Landlord is willing to permit Tenant
to assign the Lease (as amended by this
<PAGE>

Second Supplemental Agreement), subject to and in accordance with the terms and
conditions hereinafter set forth.

            NOW, THEREFORE, in consideration of the premises and mutual
covenants hereinafter contained, the parties hereto hereby modify the Lease as
follows:

            1. All capitalized terms contained in this Second Supplemental
Agreement which are not defined herein shall, for the purposes hereof, have the
meanings as are ascribed to them in the Lease.

            2. Effective as of the date hereof (the "Adjustment Date") and
continuing for the period commencing on the Adjustment Date and ending on the
Expiration Date (hereinafter called the "Adjustment Period"), there shall be
added to, and included in, the premises demised under the Lease, the Remaining
9th Floor Portion as shown approximately hatched on the plan annexed hereto and
made a part hereof as Exhibit A.

            In order to accomplish such addition and inclusion of the Remaining
9th Floor Portion to and in the premises demised under the Lease, Landlord does
hereby lease to Tenant, and Tenant does hereby hire from Landlord, the Remaining
9th Floor Portion upon and subject to all the covenants, agreements, terms, and
conditions of the Lease as supplemented by this Second Supplemental Agreement
continuing for the period commencing on the Adjustment Date through and
including the Adjustment Period.

            Landlord and Tenant acknowledge and agree that the inclusion of the
Remaining 9th Floor Portion into the premises demised under the Lease as
provided in this Second Supplemental Agreement is being granted by Landlord and
accepted by Tenant in lieu of the provisions of Article 46 of the Original Lease
and that said Article 46 is hereby deemed null and void and of no force or
effect.

            3. The following terms and conditions shall be effective during the
Adjustment Period with regard to the Remaining 9th Floor Portion only:

                  (a) The fixed annual rent payable pursuant to Article 1 of the
Lease shall be increased as follows:

                        (i) for the period beginning on December 1, 1999 through
                  and including May 31, 2004 by the sum of $394,272.00 per
                  annum; and

                        (ii) for the period beginning on June 1, 2004 through
                  the Expiration Date, by the sum of $427,128.00 per annum.

                  (b) With respect to the adjustments of rent set forth in
Article 3 of the Lease (hereinafter called the "Initial Adjustments") there
shall be computed, in addition to the Initial Adjustments, adjustments of rent
with respect to increases of Taxes and Operating Expenses attributable to the
Remaining 9th Floor Portion. Adjustments of rent with respect to Taxes and
Operating Expenses with respect to the Remaining 9th Floor Portion will be
computed in the same manner as adjustments of rent with respect to Taxes and
Operating Expenses for the purpose of the Initial Adjustments, except that, for
the purpose of such computation with respect

                                       2
<PAGE>

to the Remaining 9th Floor Portion, the following adjustments shall apply (which
adjustments shall be in addition to Tenant's continuing obligation to pay the
Initial Adjustments with respect to increases in Taxes and Operating Expenses in
respect of the premises heretofore demised under the Lease):

                        (i) The Base Tax, as defined in Section 3.01(a) of the
                  Lease shall mean fifty (50%) percent of the Taxes for the Tax
                  Years commencing July 1, 1999 and July 1, 2000 as finally
                  determined.

                        (ii) The Base Operating Expense Amount, as defined in
                  Section 3.01 (f) of the Lease, shall be the Operating Expenses
                  for the calendar year 2000.

                        (iii) Tenant's Proportionate Tax Share, as defined in
                  Section 3.01(b) of the Lease, shall be deemed to mean 4.24
                  (4.24%) percent, calculated as the fraction, expressed as a
                  percentage, the numerator of which shall be 10,952 which
                  Landlord and Tenant agree for purposes of the Lease
                  constitutes the rentable square footage of the Remaining 9th
                  Floor Portion, and the denominator of which is 258,438, which
                  Landlord and Tenant agree constitutes the rentable square
                  footage of the Building for Purposes of calculating Tenant's
                  Proportionate Tax Share.

                        (iv) Tenant's Proportionate Operating Share, as defined
                  in Section 3.01(h) of the Lease, shall be deemed to mean 4.51
                  (4.51%) percent, calculated as the fraction, expressed as a
                  percentage, the numerator of which is 10,952, which Landlord
                  and Tenant agree for purposes of the Lease constitutes the
                  rentable square footage of the Remaining 9th Floor Portion,
                  and the denominator of which is 242,638, which Landlord and
                  Tenant agree constitutes the rentable square footage of the
                  office space in the Building for purposes of calculating
                  Tenant's Proportionate Operating Share.

                        (v) The term "Operating Year", as defined in Section
                  3.01(e) of the Lease, shall mean the calendar year 2000 and
                  each succeeding year occurring during the term of the Lease.

                        (vi) The term "Base Year", as defined in Section 3.01(e)
                  of the Lease, shall mean the calendar year 2000.

                        (vii) Notwithstanding anything set forth in the Lease or
                  in this Agreement to the contrary, Tenant's obligation to pay
                  escalations in respect of increases of Taxes and Operating
                  Expenses in respect of the Remaining 9th Floor Portion only
                  shall commence on January 1, 2001.

                  (c) Tenant acknowledges that the electricity for the Remaining
9th Floor Portion shall be provided by means of a separate electric sub-meter
servicing the Remaining 9th Floor Portion in accordance with Article 4 of the
Lease, except, with respect to the

                                       3
<PAGE>

Remaining 9th Floor Portion only, all references in Article 4 of the Lease to
103% shall be deemed changed to 104.5%.

            4. Tenant shall use the Remaining 9th Floor Portion for the purposes
set forth in the Lease, and for no other purpose. Tenant acknowledges that it is
fully familiar with all aspects of the conditions within the Remaining 9th Floor
Portion and that Landlord has made no representation to Tenant with respect to
the physical condition of the Remaining 9th Floor Portion and Tenant agrees to
accept the Remaining 9th Floor Portion "AS IS" as of the Adjustment Date
(subject to latent defects and any pre-existing hazardous materials) and further
agrees that no materials are to be furnished by Landlord and no work whatever is
to be performed by Landlord in connection with the premises heretofore demised
under the Lease or the Remaining 9th Floor Portion or any part of either,
except, that on the Adjustment Date, the Remaining 9th Floor Portion shall be
delivered with the Building's heating, ventilation, air-conditioning,
electrical, plumbing and sprinkler systems servicing the Remaining 9th Floor
Portion in good working order and on the Adjustment Date the Remaining 9th Floor
Portion shall be delivered "broom clean" and free of all tenancies.
Notwithstanding anything set forth herein or in the Lease to the contrary,
Tenant shall not be required to cure any violations with respect to the
Remaining 9th Floor Portion only which were noted or issued of record prior to
the date hereof. Landlord shall deliver the Remaining 9th Floor Portion in the
condition required herein on the date Tenant executes, acknowledges and delivers
to Landlord an original of this Agreement.

            5. Effective as of the date hereof, provided ALM is and remains an
Affiliate of Tenant, Landlord hereby consents to an assignment by Tenant of all
of Tenant's right, title and interest in and to the Lease to ALM (an
"Assignment"), provided that:

                  (a) The Landlord's consent as hereinabove set forth shall not
be construed in any manner to modify, waive or affect any of the terms,
covenants, conditions or agreements contained in the Lease, or to waive any
breach or default by Tenant under the Lease.

                  (b) Tenant shall not be released from, and Tenant shall be and
remain liable for, the performance and observance of all of the terms,
covenants, conditions and agreements contained in the Lease, including, without
limitation, the payment of the fixed rent, additional rent and all other sums
then or thereafter due and to become due under the Lease.

                  (c) Assignee assumes the performance and observance of all of
the terms, covenants, conditions and agreements contained in the Lease,
including, without limitation, the payment of the fixed rent, additional rent
and all other sums due under the Lease; and

                  (d) The Landlord's consent as hereinabove set forth shall not
be construed as a consent by the Landlord to, or as permitting, any other or
further subletting or assignment by Tenant or Assignee.

            6. Upon Tenant's execution of this Agreement, Tenant shall, at its
expense, obtain and deliver to Landlord an amendment to the existing letter of
credit security deposit under the Lease (or at Tenant's option, a new letter of
credit), in either case, such amendment or new letter of credit shall, by its
terms, be transferable and shall name 345 Park Avenue South

                                       4
<PAGE>

Partners, LLC as the beneficiary thereof, and name ALM as the applicant thereof,
and shall state that the ultimate expiration date thereof is a date no earlier
than forty five (45) days after the Expiration Date.

            7. (a) Within sixty (60) days after this Second Supplemental
Agreement is fully executed and delivered to Tenant or its attorney, Tenant, at
its sole cost and expense, shall obtain all required governmental sign-offs and
approvals for all work, installations, additions and/or improvements heretofore
made by or for Tenant or any Tenant Entity in the premises demised under the
Lease (or any portion(s) thereof), including, without limitation the following:

            (1) Installation of Fire Alarm Speaker and Strobes - Installation
disapproved by Fire Department;

            (2) Installation of Fire Alarm, Speaker and Strobes, 7, 8 and 9 -
Installation disapproved by Fire Department; and

            (3) Addition to Fire Alarm - Additions disapproved by Fire
Department.

                  (b) Tenant hereby covenants and agrees that, subject to
Landlord's review and approval of final plans, drawings and specifications in
respect thereof as hereinafter more particularly set forth, Tenant shall
complete, at Tenant's own cost and expense and in a good and workmanlike manner
at least to the standard of Tenant's Work (as that term is defined in the
Lease), such permanent leasehold improvements and the permanent installations as
Tenant deems necessary for the use of the Remaining 9th Floor Portion as office
space (such work being hereinafter collectively called the "Remaining 9th Floor
Portion Work") and, subject to the provisions hereinafter set forth, Tenant may
make alterations, installations, additions and/or improvements in and to all or
any portion of the existing demised premises on the seventh (7th), eighth (8th)
and ninth (9th) floors (collectively, the "Existing 7th, 8th and 9th Floor
Work"). The Remaining 9th Floor Portion Work and the Existing 7th, 8th and 9th
Floor Work are hereinafter sometimes collectively referred to as the ("New
Work"). The New Work shall be performed in accordance with the provisions of
Article 6 and Sections 44.01, 44.02, 44.03 and 44.04 of the Lease except that
(i) the following provisions shall not apply to the New Work: (A) the last two
sentences of the second paragraph of Section 44.01; (B) the last sentence of the
third paragraph of Section 44.01; and (C) the provisions of subsections,
44.02(h), 44.02(j) and 44.02(k).

                  (c) If Tenant shall default in the performance of any of the
work set forth in subparagraph 7(a) above (after notice and upon expiration of
any applicable grace period, if any), then Landlord may perform such work on
behalf of Tenant, and if Landlord incurs any cost(s) in connection with
Landlord's performing such work, then Tenant will reimburse Landlord for such
cost(s), which cost(s) shall be deemed to be additional rent under the Lease (as
modified by this Agreement) and shall be paid to Tenant to Landlord within
twenty (20) days of rendition of any bill or statement to Tenant therefor.

                  (d) Provided Tenant shall have performed the Remaining 9th
Floor Portion Work as set forth in subparagraph 7(b) above, upon the completion
of such work and the delivery to Landlord of (A) executed and acknowledged
mechanic's lien waivers covering all

                                       5
<PAGE>

such work performed to date from all contractors, subcontractors, materialmen
and suppliers in respect of such work and (B) standard AIA Requisitions for
payment signed by a registered architect retained by Tenant at Tenant's expense
stating that all such work performed to date has been completed in accordance
with the Lease and applicable law, Landlord shall reimburse Tenant in an
aggregate amount equal to the lesser of (i) $164,280.00 or (ii) the actual cost
incurred by Tenant for the so-called "hard" construction costs for the
furnishing and installing the Remaining 9th Floor Portion Work, which
reimbursement (less ten (10%) percent for retainage) shall be paid to Tenant in
two (2) equal installments, the first (less retainage as aforesaid) when Tenant
has completed fifty (50%) percent of the Remaining 9th Floor Portion Work) and
the second (less retainage as aforesaid) when Tenant has completed the balance
of the Remaining 9th Floor Portion Work.

                  (e) Landlord shall not unreasonably withhold its consent to
the performance by Tenant of the non-structural portions of the New Work and
shall respond to all initial requests by Tenant for Landlord's approval of the
New Work within ten (10) business days following such requests by Tenant and
shall respond to all resubmissions thereof within three (3) calendar days
following such resubmission.

                  (f) Notwithstanding anything set forth herein to the contrary,
Tenant may perform cosmetic portions of the New Work prior to submission to
Landlord of plans and specifications for the New Work, provided the performance
of such cosmetic work is not then the subject of a comment or objection
previously raised by Landlord in writing with respect thereto, which comment or
objection is then unresolved, and, provided there is then no such unresolved
comment or objection, Landlord's consent for such cosmetic work shall not be
required.

                  (g) In the event of a dispute between Landlord and Tenant as
to the reasonableness of Landlord's disapproval of any portion(s) of the plans
and specifications for the New Work under circumstances where this Agreement
and/or the Lease specifically provides that Landlord's approval thereof shall
not be unreasonably withheld, such dispute shall be resolved by arbitration in
accordance with the provisions of Section 30.02(a) Article 38 of the Lease.

                  (h) Attached hereto as Exhibit B is a list of vendors approved
by Landlord for use by Tenant to perform the New Work and, provided Tenant uses
such approved vendors for the performance of the New Work, Landlord's approval
of such vendors to perform the New Work shall not be required.

            8. Provided Tenant has not theretofore been in default under any of
the terms and conditions of the Lease (as amended by this Second Supplemental
Agreement), Tenant shall receive an abatement of the fixed annual rent payable
in respect of the Remaining 9th Floor Portion in the sum of $32,856.00 per month
for the first (1st), second (2nd) and third (3rd) full calendar months of the
Adjustment Period for an aggregate abatement of $98,568.00. Notwithstanding the
foregoing, the Tenant shall be obligated to pay any and all additional rent,
electricity charges and all other sums and charges due pursuant to the Lease (as
amended by this Second Supplemental Agreement) for each of said months.

                                       6
<PAGE>

            9. Tenant shall have the option, exercisable on twenty (20) days'
written notice to Landlord, to elect to perform its own cleaning in and to all
(but not less than all) of the premises demised under the Lease, including the
removal of trash and rubbish therefrom, in which event Tenant, shall, at its
sole cost and expense, cause to be performed, by a union cleaning company
reasonably satisfactory to Landlord (or by an employee of Tenant) its own
cleaning and trash and rubbish removal in and to all(but not less than all) of
the premises demised under the Lease, and Landlord shall, upon the effective
date of such notice, thereafter have no further obligation to provide any
cleaning or trash or rubbish removal from the premises demised under the Lease
(or any portion(s) thereof) for and during the remainder of the term of the
Lease (or any renewals or exclusions thereof) and, upon such effective date, the
annual rental rate payable under the Lease shall for the then remainder of the
term of the Lease (and all renewals and/or extensions thereof), be reduced by
the sum of $66,174.00 per annum (the "Cleaning Rental Reduction").
Notwithstanding the foregoing, Landlord shall have the option, exercisable at
any time prior to the end of such twenty (20) day notice period, to cause the
Building's existing cleaning contractor to clean the premises demised under the
Lease in accordance with the then existing Building-standard cleaning
specifications, in which event Tenant's option to elect to perform its own
cleaning as aforesaid, and the Cleaning Rental Reduction, shall each be null and
void and of no force or effect and Tenant shall thereupon have no right or
option to elect to perform its own cleaning and/or trash or rubbish removal in
or to the premises demised under the Lease (or any portion(s) thereof), unless
Tenant reasonably demonstrates to Landlord that the cleaning of the premises
demised under the Lease (as amended by this Agreement) by Landlord's cleaning
contractor is substantially not in accordance with the cleaning specifications
which are applicable to this Lease (as amended by this Agreement) or that the
level of cleaning services being provided to Tenant in respect of the premises
demised under the Lease (as amended by this Agreement) are substantially less
than the level of cleaning services being provided to other tenants of similar
buildings in a similar geographic area.

            10. Subparagraph 11.02(a) of the Original Lease is hereby amended by
inserting the words "or to a subletting of up to seventy five (75%) percent of
the demised premises" after the word "Lease" on the second line of subparagraph
11.02(a) of the Original Lease.

            11. Landlord and Tenant covenant, represent and warrant to the other
that it has had no dealings or communications with any broker or agent other
than RFR Realty LLC ("RFR") [which is representing Landlord], and GVA Williams
a/k/a Williams Real Estate Co., Inc. ("Williams") [which is representing Tenant]
in connection with the consummation of this Second Supplemental Agreement and
the negotiation thereof, and each party hereto (the "Indemnifying Party")
covenants and agrees to pay, hold harmless and indemnify the other party (the
"Indemnified Party") from and against any and all costs, expense (including
attorneys' fees and disbursements) and liability for any compensation,
commissions and/or charges claimed against the Indemnified Party by any other
broker(s) or agent(s) claiming to have dealt with the Indemnifying Party.
Notwithstanding the foregoing, Landlord shall be responsible for any commission
or fee payable to RFR and Williams pursuant to a separate agreement(s) between
Landlord and RFR and Landlord and Williams and shall indemnify and hold Tenant
harmless in connection therewith. The provisions of this Paragraph shall survive
the expiration or earlier termination of the Lease.

                                       7
<PAGE>

            12.   (a) Pursuant to Section 31.02 of the Lease, all notices to
Landlord shall hereafter be sent to 345 Park Avenue South Partners LLC, c/o RFR
Holding LLC, 400 Park Avenue, 15th Floor, New York, New York 10022, attention:
Mark Granata.

                  (b) Section 31.03 of the Lease is hereby deleted in its entity
without substitution therefor.

                  (c) The reference to "James Finkelstein" in subparagraph 31.01
of the Original Lease is hereby deleted and the word "Attention: CEO" are hereby
inserted in this place and stead.

                  (d) Clause (A) of subsection (iii) of subparagraph 36.01(b)
is hereby deleted.

            13. Except as modified by this Second Supplemental Agreement, the
Lease and all covenants, agreements, terms and conditions thereof shall remain
in full force and effect and are hereby in all respects ratified and confirmed.

            14. The covenants, agreements, terms and conditions contained in
this Second Supplemental Agreement shall bind and inure to the benefit of the
parties hereto and their respective successors and, except as otherwise provided
in the Lease as hereby supplemented, their respective assigns.

            15. This Second Supplemental Agreement may not be changed or
terminated orally but only by an agreement in writing signed by the party
against which enforcement of any waiver, change, termination, modification or
discharge is sought.

            IN WITNESS WHEREOF, the parties hereto have executed this First
Supplemental Agreement as of the day and year first above written.

                                    LANDLORD:

                                    345 PARK AVENUE SOUTH PARTNERS LLC

                                    By:       /s/ Aby J. Rosen
                                        ---------------------------
                                               Aby J. Rosen, Member

                                    TENANT:

                                    THE NEW YORK LAW PUBLISHING COMPANY

                                    By:   /s/ William L. Pollak
                                        ---------------------------------
                                            William L. Pollak, President

                                       8
<PAGE>

                                  Tenant's Tax Identification Number is
                                  13-3273851.

                                  AMERICAN LAWYER MEDIA, INC.

                                  By: /s/ William L. Pollak
                                      ------------------------------------
                                      Name:
                                      Title:

                                  ALM's Tax Identification Number is 13-398-0414

                                       9
<PAGE>

STATE OF NEW YORK             )
                              )     ss.:
COUNTY OF NEW YORK            )

            On the _____ day of ____________ in the year 2000 before me, the
undersigned, a Notary Public in and for said State, personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(s) whose name(s) is (are)
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual(s) acted, executed the instrument.

                                   ---------------------------------------------

STATE OF NEW YORK             )
                              )     ss.:
COUNTY OF NEW YORK            )

            On the _____ day of ____________ in the year 2000 before me, the
undersigned, a Notary Public in and for said State, personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(s) whose name(s) is (are)
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual, s) acted, executed the instrument.

                                   ---------------------------------------------

STATE OF NEW YORK             )
                              )     ss.:
COUNTY OF NEW YORK            )

            On the _____ day of ____________ in the year 2000 before me, the
undersigned, a Notary Public in and for said State, personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(s) whose name(s) is (are)
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of
which the individual, s) acted, executed the instrument.

                                   ---------------------------------------------
<PAGE>

                          APPROVED GENERAL CONTRACTORS
                              345 PARK AVENUE SOUTH

Theodore Williams Construction Company
345 Park Avenue
New York, NY  10154
Attn: Bart Caruso
      (212) 593-9700

NTX Interiors, Inc.
251 Park Avenue South
Suite 700
New York, N.Y. 10010
Attn: Robert Rudd
      (212) 780-2400

Tri-Star Construction Corp.
488 Madison Avenue
New York, N Y. 10022
Attn: William A. Wiener
(212) 486-0808

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]