Document:

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                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                          REGISTRATION RIGHTS AGREEMENT

        REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of February
27, 2001 by and among FASTCOMM COMMUNICATIONS CORPORATION, a corporation
organized under the laws of the Commonwealth of Virginia (the "COMPANY"), and
the undersigned (together with affiliates, the "INVESTORS").

        WHEREAS:

        .      In connection with the Securities Purchase Agreement of even date
herewith by and between the Company and the Investors (the "SECURITIES PURCHASE
AGREEMENT"), the Company has agreed, upon the terms and subject to the
conditions contained therein, to issue and sell to the Investors (i) prepaid
common stock purchase warrants (the "PREPAID WARRANTS") which entitle the holder
thereof to acquire shares of the Company's common stock, par value $.01 per
share (the "COMMON STOCK"), upon the terms and subject to the limitations and
conditions set forth in the Prepaid Warrants and (ii) additional warrants
(collectively, the "INCENTIVE WARRANTS") to acquire shares of Common Stock.

        .      In connection with the purchase and sale of the Prepaid Warrant
and Incentive Warrants, to induce the Investors to execute and deliver the
Securities Purchase Agreement, the Company has agreed to provide certain
registration rights under the Securities Act of 1933, as amended, and the rules
and regulations thereunder, or any similar successor statute (collectively, the
"SECURITIES ACT"), and applicable state securities laws; and

        .      The Company has agreed to issue to The Zanett Securities
Corporation (the "PLACEMENT AGENT") warrants (the "PLACEMENT AGENT WARRANTS"
and, collectively with the Prepaid Warrants and the Incentive Warrants, the
"WARRANTS") to purchase shares of Common Stock pursuant to that certain
Placement Agency Agreement, dated as of even date herewith (the "PLACEMENT
AGREEMENT"), by and between the Company and the Placement Agent and has agreed
to provide the Placement Agent the rights set forth herein. For purposes of this
Agreement, the Placement Agent shall be deemed an "INVESTOR" and the shares of
Common Stock issuable upon the exercise of, or otherwise pursuant to, the
Warrants shall be deemed "WARRANT SHARES."

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

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 1.     DEFINITIONS.

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

                      (i)    "INVESTORS" means the  Investors and any
permissible transferees or assignees under the Securities Purchase Agreement or
the Placement Agreement, as the case may be, and who agree to become bound by
the provisions of this Agreement in accordance with Section 9 hereof.

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

                      (iii)  "REGISTRABLE SECURITIES" means the Warrant Shares
(including any Warrant Shares issuable with respect to Exercise Default Payments
under the Warrants and any Warrant Shares issuable with respect to the Default
Amount under the Prepaid Warrants) issued or issuable upon exercise of, or
otherwise with respect to, the Warrants and any shares of capital stock issued
or issuable, from time to time (with any adjustments), as a distribution on or
in exchange for or otherwise with respect to any of the foregoing.

                      (iv)   "REGISTRATION STATEMENT" means a registration
statement of the Company under the Securities Act.

               b.     Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Securities Purchase
Agreement, the Placement Agreement, and the Warrants.

        2.     REGISTRATION.

               a.     Mandatory Registration. The Company shall prepare, on a
one time basis, and, as soon as practicable, but not later than the sixtieth
(60th) day following the date of the Closing under the Securities Purchase
Agreement (the "FILING DATE"), file with the SEC a Registration Statement on
Form S-3 (or, if Form S-3 is not then available, on such form of Registration
Statement as is then available to effect a registration of all of the
Registrable Securities required to be included in such Registration Statement
(as determined pursuant to Section 11(j) hereof) on or before the ninetieth
(90th) day following the date of the Closing) covering the resale of at least
4,116,288 Registrable Securities (200% of the maximum number of shares of Common
Stock issuable upon the full exercise of or otherwise with respect to the
Prepaid Warrants issued at the Closing, plus 100% of the maximum number of
shares of Common Stock issuable upon the full exercise of the Incentive Warrants
and Placement Agent Warrants issued at the Closing). The Registration Statement
filed hereunder, to the extent allowable under the Securities Act and the Rules
promulgated thereunder (including Rule 416),
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shall state that such Registration Statement also covers such indeterminate
number of additional shares of Common Stock as may become issuable upon exercise
of the Warrants (i) to prevent dilution resulting from stock splits, stock
dividends or similar transactions or (ii) by reason of reductions in the
Exercise Price of the Warrants in accordance with the terms thereof (including,
but not limited to, in the case of the Prepaid Warrants, the terms which cause
the Variable Exercise Price to decrease to the extent the Closing Bid Price of
the Common Stock decreases). The Registrable Securities included in any
Registration Statement filed hereunder shall be allocated to the Investors as
set forth in Section 11(k) hereof. The Registration Statement filed hereunder
(and each amendment or supplement thereto, and each request for acceleration of
effectiveness thereof) shall be provided to (and subject to review by) the
Placement Agent and its counsel acting on behalf of the Investors prior to its
filing or other submission. The Investors understand that such Registration
Statement may include other shares of stock as registered by the Company.

               b.     Underwritten Offering. If any offering pursuant to the
Registration Statement pursuant to Section 2(a) hereof involves an underwritten
offering, the Investors who hold a majority in interest of the Registrable
Securities subject to such underwritten offering, with the consent of the
Investors, shall have the right to select one legal counsel to represent the
Investors (at the Investors' expense) and an investment banker or bankers and
manager or managers to administer the offering, which investment banker or
bankers or manager or managers shall be reasonably satisfactory to the Company.
In the event that any Investors elect not to participate in such underwritten
offering, such Investors shall provide the Company with appropriate plans of
distribution for inclusion in such Registration Statement.

               c.     Payments by the Company. The Company shall use its best
efforts to cause the Registration Statement required to be filed pursuant to
Section 2(a) hereof to become effective as soon as practicable, but in no event
later than the one hundred twentieth (120th) day following the date it was
required to be filed hereunder or no later than the one hundred eightieth
(180th) day following the date it was required to be filed if Form S-3 was not
available (each a "REGISTRATION DEADLINE"). If (i) (A) the Registration
Statement required to be filed by the Company pursuant to Section 2(a) hereof is
not declared effective by the SEC on or before the Registration Deadline
applicable to such Registration Statement or (B) the Registration Statement
required to be filed by the Company pursuant to Section 3(b) hereof is not
declared effective by the SEC within sixty (60) days after the applicable
Registration Trigger Date (as defined in Section 3(b) hereof), or (ii) if, after
any such Registration Statement has been declared effective by the SEC, sales of
all of the Registrable Securities required to be covered by such Registration
Statement (including any Registrable Securities required to be registered
pursuant to Section 3(b) hereof) cannot be made pursuant to such Registration
Statement (by reason of a stop order or the Company's failure to update the
Registration Statement or any other reason outside the control of the Investors
but within the control of the Company), or (iii) the Common Stock (including any
Registrable Securities) is not listed or included for quotation on the Nasdaq
Over-the-Counter Bulletin Board (the "BULLETIN BOARD"), National Market ("NNM"),
the Nasdaq SmallCap Market ("SMALLCAP"), the New York Stock Exchange (the
"NYSE") or the American Stock Exchange (the "AMEX") at any time after the
initial Registration Deadline hereunder, then the Company will make payments to
the Investors in such amounts and at such times as shall be determined pursuant
to this Section 2(c) as partial relief for the damages to the Investors
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by reason of any such delay in or reduction of their ability to sell the
Registrable Securities (which remedy shall not be exclusive of any other
remedies available at law or in equity). Notwithstanding the foregoing, in the
event the Registration Statement is not declared effective within sixty (60)
days after the applicable Registration Trigger Date, the Company will not have
to pay the Investors such amounts if (i) the Company filed the Registration
Statement by the Filing Date and (ii) the Company, in each instance, fully
responds to all SEC comments received by it within the longer of (A) five (5)
business days after receipt thereof or (B) the time period provided by the SEC.
The Company shall pay to each Investor an amount equal to the product of (i) the
aggregate Purchase Price of the Warrants held by such Investor (including,
without limitation, Warrants that have been exercised for Warrant Shares then
held by such Investor) (the "AGGREGATE SHARE PRICE"), multiplied by (ii)
thirty-five thousandths (.035), for the first thirty (30) day period (or portion
thereof) (A) after a Registration Deadline and prior to the date the applicable
Registration Statement filed pursuant to Section 2(a) is declared effective by
the SEC, (B) after the sixtieth (60th) day following a Registration Trigger Date
(as defined in Section 3(b)) and prior to the date the Registration Statement
filed pursuant to Section 3(b) hereof is declared effective by the SEC, and (C)
during which sales of any Registrable Securities cannot be made pursuant to any
such Registration Statement after the Registration Statement has been declared
effective or the Common Stock (including any Registrable Securities) is not
listed or included for quotation on the Bulletin Board, NNM, SmallCap, NYSE or
AMEX. In addition, the Company shall pay to each Investor an amount equal to the
product of (i) the Aggregate Share Price, multiplied by (ii) fifty-five
thousandths (.055), for each additional thirty (30) day period (or portion
thereof) following the initial thirty (30) day period referred to in the
preceding sentence (A) after a Registration Deadline and prior to the date the
applicable Registration Statement filed pursuant to Section 2(a) is declared
effective by the SEC, (B) after the sixtieth (60th) day following a Registration
Trigger Date and prior to the date the Registration Statement filed pursuant to
Section 3(b) hereof is declared effective by the SEC, and (C) during which sales
of any Registrable Securities cannot be made pursuant to any such Registration
Statement after the Registration Statement has been declared effective or the
Common Stock (including any Registrable Securities) is not listed or included
for quotation on the Bulletin Board, NNM, SmallCap, NYSE or AMEX; provided,
however, that there shall be excluded from each such period any delays which are
solely attributable to changes (other than corrections of Company mistakes with
respect to information previously provided by the Investors) required by the
Investors in the Registration Statement with respect to information relating to
the Investors, including, without limitation, changes to the plan of
distribution. (For example, if a Registration Statement is not effective by the
Registration Deadline applicable thereto, the Company would pay $35,000 for the
first thirty (30) days and $55,000 for each thirty (30) day period thereafter
with respect to each $1,000,000 of Aggregate Share Price until the Registration
Statement becomes effective.) Such amounts shall be paid in cash or, at each
Investor's option, may be convertible into Common Stock at the "EXERCISE PRICE"
then in effect with respect to the Prepaid Warrants. Any shares of Common Stock
issued upon conversion of such amounts shall be Registrable Securities. If the
Investor desires to convert the amounts due hereunder into Registrable
Securities it shall so notify the Company in writing within two (2) business
days after the date on which such amounts are first payable in cash and such
amounts shall be so convertible beginning on the last day upon which the cash
amount would otherwise be due in accordance with the following sentence.
Payments of cash pursuant hereto shall be made within five (5) days after the
end of each period that gives rise to such obligation, provided that, if any
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such period extends for more than thirty (30) days, interim payments shall be
made for each such thirty (30) day period.

               d.     Piggy-Back Registrations. If at any time prior to the
expiration of the Registration Period (as hereinafter defined) the Company shall
file with the SEC a Registration Statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity
securities (other than on Form S-4 or Form S-8 or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans), the Company shall
send to each Investor who is entitled to registration rights under this Section
2(d) written notice of such determination and, if within five (5) business days
after the date of such notice, such Investor shall so request in writing, the
Company shall include in such Registration Statement all or any part of the
Registrable Securities such Investor requests to be registered, except that if,
in connection with any underwritten public offering, the managing underwriter(s)
thereof shall impose a limitation on the number of shares of Common Stock which
may be included in the Registration Statement because, in such underwriter(s)'
judgment, marketing or other factors dictate such limitation is necessary to
facilitate public distribution, then the Company shall be obligated to include
in such Registration Statement only such limited portion of the Registrable
Securities with respect to which such Investor has requested inclusion hereunder
as the underwriter shall permit. Any exclusion of Registrable Securities shall
be made pro rata among the Investors seeking to include Registrable Securities,
in proportion to the number of Registrable Securities sought to be included by
such Investors; provided, however, that the Company shall not exclude any
Registrable Securities unless the Company has first excluded all outstanding
securities, the holders of which are not entitled to inclusion of such
securities in such Registration Statement or are not entitled to pro rata
inclusion with the Registrable Securities in accordance with agreements
predating the date hereof, and provided, further, however, that, after giving
effect to the immediately preceding proviso, any exclusion of Registrable
Securities shall be made pro rata with holders of other securities having the
right to include such securities in the Registration Statement other than
holders of securities entitled to inclusion of their securities in such
Registration Statement by reason of demand registration rights. No right to
registration of Registrable Securities under this Section 2(d) shall be
construed to limit any registration required under Section 2(a) hereof. If an
offering in connection with which an Investor is entitled to registration under
this Section 2(d) is an underwritten offering, then each Investor whose
Registrable Securities are included in such Registration Statement shall, unless
otherwise agreed by the Company, offer and sell such Registrable Securities in
an underwritten offering using the same underwriter or underwriters and, subject
to the provisions of this Agreement, on the same terms and conditions as other
shares of Common Stock included in such underwritten offering.

               e.     Eligibility for Form S-3. The Company represents and
warrants that it meets the current requirements for the use of Form S-3 for
registration of the sale by the Investors of the Registrable Securities and the
Company shall file all reports required to be filed by the Company with the SEC
in a timely manner as is required so as to maintain such eligibility for the use
of Form S-3.
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               f.     Rule 416. The Company and the Investors each acknowledge
that an indeterminate number of Registrable Securities shall be registered
pursuant to Rule 416 under the Securities Act so as to include in such
Registration Statement any and all Registrable Securities which may become
issuable (i) to prevent dilution resulting from stock splits, stock dividends or
similar transactions and (ii) by reason of reductions in the Exercise Price of
the Warrants in accordance with the terms thereof, including, but not limited
to, in the case of the Prepaid Warrants, the terms which cause the applicable
Exercise Percentages to decrease and the terms which cause the Variable Exercise
Price to decrease to the extent the Closing Bid Price of the Common Stock
decreases (collectively, the "RULE 416 SECURITIES"). If the Company determines
that the Registration Statements filed hereunder do not cover all of the Rule
416 Securities, the Company shall immediately provide to each Investor written
notice (a "RULE 416 NOTICE") setting forth the basis for the Company's position
and the authority therefor. The Company acknowledges that the number of shares
of Common Stock initially included in any Registration Statement relating to the
Registrable Securities represents a good faith estimate of the maximum number of
shares issuable upon exercise of the Warrants.

        3.     OBLIGATIONS OF THE COMPANY.

        In connection with the registration of the Registrable Securities, the
Company shall have the following obligations:

               .      The Company shall prepare and file with the SEC the
Registration Statements required by Section 2(a) (but in no event later than the
applicable Filing Date with respect thereto), and use reasonable best efforts to
cause such Registration Statements relating to Registrable Securities to become
effective as soon as practicable after such filing (but in no event later than
the Registration Deadline applicable thereto), and keep such Registration
Statements effective pursuant to Rule 415 at all times until such date as is the
earlier of (i) the date on which all of the Registrable Securities have been
sold and (ii) the date on which all of the Registrable Securities (in the
reasonable opinion of counsel to the Investors) may be immediately sold to the
public without registration or restriction pursuant to Rule 144(k) under the
Securities Act or any successor provision (the "REGISTRATION PERIOD"), which
Registration Statements (including any amendments or supplements thereto and
prospectuses contained therein and all documents incorporated by reference
therein) shall not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the
statements therein not misleading.

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               .      The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the
Registration Statements and the prospectus used in connection with the
Registration Statements as may be necessary to keep the Registration Statements
effective at all times during the Registration Period, and, during such period,
comply with the provisions of the Securities Act with respect to the disposition
of all Registrable Securities of the Company covered by the Registration
Statements until such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in the Registration Statements. In the event (i)
the Company delivers a Rule 416 Notice to the Investors or the Investors who
hold a majority in interest of the Registrable Securities shall reasonably
determine, or the SEC shall state formally or informally, that Rule 416 under
the Securities Act does not permit a registration statement to cover securities
which may become issuable upon conversion or exercise of convertible or
exercisable securities by reason of reductions in the conversion or exercise
price of such securities and (ii) the number of shares available under all
Registration Statements filed pursuant to this Agreement is, for any three (3)
consecutive trading days (the last of such three (3) trading days being the
"REGISTRATION TRIGGER DATE"), insufficient to cover one hundred thirty-five
percent (135%) of the Registrable Securities issued or issuable upon exercise of
the Warrants (without giving effect to any limitations on exercise contained in
the Warrants), the Company shall amend the Registration Statements, or file a
new Registration Statement (on the short form available therefor, if
applicable), or both, so as to cover two hundred percent (200%) of the
Registrable Securities issued or issuable (without giving effect to any
limitations on exercise contained in the Warrants) as of the Registration
Trigger Date, in each case, as soon as practicable, but in any event within
fifteen (15) days after the Registration Trigger Date (based on the market price
then in effect of the Common Stock and other relevant factors on which the
Company reasonably elects to rely). The Company shall cause such amendment(s)
and/or new Registration Statement to become effective as soon as practicable
following the filing thereof, but in any event within sixty (60) days after the
applicable Registration Trigger Date.

               .      The Company shall furnish to each Investor whose
Registrable Securities are included in any Registration Statement (i) promptly
after the same is prepared and publicly distributed, filed with the SEC, or
received by the Company, one copy of each such Registration Statement and any
amendment thereto, each preliminary prospectus and prospectus and each amendment
or supplement thereto, and, in the case of any Registration Statement referred
to in Section 2(a), each letter written by or on behalf of the Company to the
SEC or the staff of the SEC (including, without limitation, any request to
accelerate the effectiveness of any Registration Statement or amendment
thereto), and each item of correspondence from the SEC or the staff of the SEC,
in each case relating to any such Registration Statement (other than any
portion, if any, thereof which contains information for which the Company has
sought confidential treatment), (ii) on the date of effectiveness of any
Registration Statement or any amendment thereto, a notice stating that such
Registration Statement or amendment has been declared effective, and (iii) such
number of copies of a prospectus, including a preliminary prospectus, and all
amendments and supplements thereto and such other documents as such Investor may
reasonably request in order to facilitate the disposition of the Registrable
Securities owned by such Investor.
               .      The Company shall use its best efforts to (i) register and
qualify the Registrable Securities covered by each Registration Statement under
such other securities or
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"blue sky" laws of such jurisdictions in the United States as each Investor who
holds Registrable Securities being offered reasonably requests (but in no event
shall the Company be required to make such registration and qualification in
more than 10 states), (ii) prepare and file in those jurisdictions such
amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (a) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this Section 3(d), (b) subject itself to general taxation in any such
jurisdiction, (c) file a general consent to service of process in any such
jurisdiction, (d) provide any undertakings that cause the Company undue expense
or burden, or (e) make any change in its charter or bylaws, which in each case
the Board of Directors of the Company determines to be contrary to the best
interests of the Company and its stockholders.

               .      In the event the Investors who hold a majority in interest
of the Registrable Securities which are initially requested to be offered in an
offering select underwriters for the offering, the Company shall enter into and
perform its obligations under an underwriting agreement, in usual and customary
form, including, without limitation, customary indemnification and contribution
obligations, with the underwriters of such offering.

               .      As promptly as practicable after becoming aware of such
event, the Company shall notify each Investor of the happening of any event, of
which the Company has knowledge, as a result of which the prospectus included in
a Registration Statement, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, and use its best
efforts promptly to prepare a supplement or amendment to the Registration
Statement to correct such untrue statement or omission, and deliver such number
of copies of such supplement or amendment to each Investor as such Investor may
reasonably request.

               .      The Company shall use its best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of a
Registration Statement, and, if such an order is issued, to use its best efforts
to obtain the withdrawal of such order at the earliest practicable moment
(including in each case by amending or supplementing such Registration
Statement) and to notify each Investor who holds Registrable Securities being
sold (or, in the event of an underwritten offering, the managing underwriters)
of the issuance of such order and the resolution thereof (and if such
Registration Statement is supplemented or amended, deliver such number of copies
of such supplement or amendment to each Investor as such Investor may reasonably
request).

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               .      The Company shall permit a single firm of counsel
designated by the Investors to review each Registration Statement (at the
Investors' expense) and all amendments and supplements thereto a reasonable
period of time prior to their filing with the SEC, and not file any document
which contains information relating to such Investors in a form as to such
counsel reasonably objects.

               .      The Company shall make generally available to its security
holders as soon as practical, but not later than ninety (90) days after the
close of the period covered thereby, an earnings statement (in form complying
with the provisions of Rule 158 under the Securities Act) covering a
twelve-month period beginning not later than the first day of the Company's
fiscal quarter next following the effective date of a Registration Statement.

               .      [Intentionally omitted].

               .      The Company shall make available for inspection by any
underwriter participating in any disposition pursuant to a Registration
Statement, one firm of attorneys retained by all such underwriters
(collectively, the "INSPECTORS") at such Inspectors' expense all pertinent
financial and other records, and pertinent corporate documents and properties of
the Company (collectively, the "RECORDS"), as shall be reasonably deemed
necessary and customary in similar transactions by each Inspector to enable each
Inspector to exercise its due diligence responsibility, and cause the Company's
officers, directors and employees to supply all information which any Inspector
may reasonably request for purposes of such due diligence; provided, however,
that each Inspector shall agree to hold in confidence and shall not make any
disclosure (except to an Investor) of any Record or other information which the
Company determines in good faith to be confidential, and of which determination
the Inspectors are so notified, unless (a) the disclosure of such Records is
necessary to avoid or correct a misstatement or omission in any Registration
Statement, (b) the release of such Records is ordered pursuant to a subpoena or
other order from a court or government body of competent jurisdiction, or (c)
the information in such Records has been made generally available to the public
other than by disclosure in violation of this or any other agreement. The
Company shall not be required to disclose any confidential information in such
Records to any Inspector until and unless such Inspector shall have entered into
confidentiality agreements (in form and substance satisfactory to the Company)
with the Company with respect thereto. Each Investor agrees that it shall, upon
learning that disclosure of such Records is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt
notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order
for, the Records deemed confidential. Nothing herein shall be deemed to limit
the Investors' ability to sell Registrable Securities in a manner which is
otherwise consistent with applicable laws and regulations.

               .      The Company shall hold in confidence and not make any
disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state
securities laws (as determined in good faith by the Company upon advice of
outside legal counsel), (ii) the disclosure of such information is necessary to
avoid or correct a misstatement or omission in any Registration Statement, (iii)
the release of such information is ordered pursuant to a subpoena or other order
<PAGE>   10

from a court or governmental body of competent jurisdiction, (iv) such
information has been made generally available to the public other than by
disclosure in violation of this or any other agreement, (v) such Investor
consents to the form and content of any such disclosure or (vi) such information
is required by the SEC; provided that such Investor shall have an opportunity to
request confidential treatment thereof. The Company agrees that it shall, upon
learning that disclosure of such information concerning an Investor is sought in
or by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to such Investor prior to making such disclosure, and
allow the Investor, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

               .      The Company shall use its best efforts to promptly either
(i) cause all of the Registrable Securities covered by any Registration
Statement to be reported on or listed on the Bulletin Board (if required by
applicable rules and regulations), NYSE or the AMEX or another national
securities exchange and on each additional national securities exchange on which
securities of the same class or series issued by the Company are then listed, if
any, if the listing of such Registrable Securities is then permitted under the
rules of such exchange, or (ii) secure the designation and quotation of all of
the Registrable Securities covered by any Registration Statement on the Bulletin
Board, NNM or SmallCap and, without limiting the generality of the foregoing, to
arrange for or maintain at least two market makers to register with the National
Association of Securities Dealers, Inc. ("NASD") as such with respect to such
Registrable Securities.

               .      The Company shall provide a transfer agent and registrar,
which may be a single entity, for the Registrable Securities not later than the
effective date of any Registration Statement.

               .      The Company shall cooperate with the Investors who hold
Registrable Securities being offered and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legends) representing Registrable
Securities to be offered pursuant to any Registration Statement and enable such
certificates to be in such denominations or amounts, as the case may be, as the
managing underwriter or underwriters, if any, or the Investors may reasonably
request (at the underwriters or Investors cost and expense) and registered in
such names as the managing underwriter or underwriters, if any, or the Investors
may request, and, within three (3) business days after a Registration Statement
which includes Registrable Securities is ordered effective by the SEC, the
Company shall deliver, and shall cause legal counsel selected by the Company to
deliver, to the transfer agent for the Registrable Securities (with copies to
the Investors whose Registrable Securities are included in such Registration
Statement) an opinion of such counsel in the form attached hereto as EXHIBIT 1.

               .      At the request of any Investor, the Company shall prepare
and file with the SEC such amendments (including post-effective amendments) and
supplements to a Registration Statement and the prospectus used in connection
with such Registration Statement as may be necessary in order to change the plan
of distribution set forth in such Registration Statement at the Investor's
expense.
<PAGE>   11

               .      The Company and any managing underwriter or underwriters,
and any Investor shall comply with all applicable laws related to a Registration
Statement and offering and sale of securities and all applicable rules and
regulations of governmental authorities in connection therewith (including,
without limitation, the Securities Act and the Securities Exchange Act of 1934,
as amended, and the rules and regulations promulgated by the SEC.)

               .      The Company shall take all such other actions as any
Investor or the underwriters, if any, reasonably request in order to expedite or
facilitate the disposition of the Registrable Securities pursuant to the terms
of the Registration Statement; provided that any such additional actions shall
be at the sole cost and expense of the person requesting same.

        4.     OBLIGATIONS OF THE INVESTORS.

        In connection with the registration of the Registrable Securities, the
Investors shall have the following obligations:

               a.     It shall be a condition precedent to the obligations of
the Company to complete the registration pursuant to this Agreement with respect
to the Registrable Securities of a particular Investor that such Investor shall
furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the registration
of such Registrable Securities and shall execute such documents in connection
with such registration as the Company may reasonably request. At least five (5)
business days prior to the first anticipated filing date of the Registration
Statement, the Company shall notify the Placement Agent on behalf of the
Investors of the information the Company requires from each such Investor.

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

               c.     In the event Investors holding a majority in interest of
the Registrable Securities being offered determine to engage the services of an
underwriter, each Investor agrees to enter into and perform such Investor's
obligations under an underwriting agreement, in usual and customary form,
including, without limitation, customary indemnification and contribution
obligations, with the managing underwriter of such offering and take such other
actions as are reasonably required in order to expedite or facilitate the
disposition of the Registrable Securities, unless such Investor has notified the
Company in writing of such Investor's election not to participate in such
underwritten distribution.

               d.     Each Investor agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Sections 3(f)
or 3(g), such Investor will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until such Investor's receipt of the copies of the
<PAGE>   12

supplemented or amended prospectus contemplated by Sections 3(f) or 3(g) and, if
so directed by the Company, such Investor shall deliver to the Company (at the
expense of the Company) or destroy (and deliver to the Company a certificate of
destruction) all copies in such Investor's possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such
notice.

               e.     No Investor may participate in any underwritten
distribution hereunder unless such Investor (i) agrees to sell such Investor's
Registrable Securities on the basis provided in any underwriting arrangements in
usual and customary form entered into by the Company, (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements, and (iii) agrees to pay its pro rata share of all
underwriting discounts and commissions and any expenses in excess of those
payable by the Company pursuant to Section 5 below.

        5.     EXPENSES OF REGISTRATION.

        All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printers and accounting fees, the
fees and disbursements of counsel for the Company shall be borne by the Company.

        6.     INDEMNIFICATION.

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

               a.     To the extent permitted by law, the Company will
indemnify, hold harmless and defend (i) each Investor who holds such Registrable
Securities, and (ii) the directors, officers, partners, members, employees,
agents and each person who controls any Investor within the meaning of Section
15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934,
as amended (the "EXCHANGE ACT"), if any, (each, an "INDEMNIFIED PERSON"),
against any joint or several losses, claims, damages, liabilities or expenses
(collectively, together with actions, proceedings or inquiries by any regulatory
or self-regulatory organization, whether commenced or threatened, in respect
thereof, "CLAIMS") to which any of them may become subject insofar as such
Claims arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement or the omission
or alleged omission to state therein a material fact required to be stated or
necessary to make the statements therein not misleading, (ii) any untrue
statement or alleged untrue statement of a material fact contained in any
preliminary prospectus if used prior to the effective date of such Registration
Statement, or contained in the final prospectus (as amended or supplemented, if
the Company files any amendment thereof or supplement thereto with the SEC) or
the omission or alleged omission to state therein any material fact necessary to
make the statements made therein, in light of the circumstances under which the
statements therein were made, not misleading, or (iii) any violation by the
Company of the Securities Act, the Exchange Act, any other applicable securities
law, including, without limitation, any state securities law, or any rule

<PAGE>   13

or regulation thereunder relating to the offer or sale of the Registrable
Securities (the matters in the foregoing clauses (i) through (iii) being,
collectively, "VIOLATIONS"). Subject to the restrictions set forth in Section
6(c) with respect to the number of legal counsel, the Company shall reimburse
the Investors and each other Indemnified Person, promptly as such expenses are
incurred and are due and payable, for any reasonable legal fees or other
reasonable expenses incurred by them in connection with defending any such
Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim arising out of or based upon a Violation which occurs in reliance upon
information furnished in writing to the Company by such Indemnified Person
expressly for use in the Registration Statement or any such amendment thereof or
supplement thereto or in any filings required by any state's securities laws;
(ii) shall not apply to amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of the Company which
the Company has, or would have had a good faith basis not to have consented to;
and (iii) with respect to any preliminary prospectus, shall not inure to the
benefit of any Indemnified Person if the untrue statement or omission of
material fact contained in the preliminary prospectus was corrected on a timely
basis in the prospectus, as then amended or supplemented, if such corrected
prospectus was timely made available by the Company pursuant to Section 3(c)
hereof, and the Indemnified Person was promptly advised in writing not to use
the incorrect prospectus prior to the use giving rise to a Violation and such
Indemnified Person, notwithstanding such advice, used it. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of the Indemnified Person and shall survive any permissible transfer of
the Registrable Securities by the Investors pursuant to Section 9 hereof.

               b.     In connection with any Registration Statement in which an
Investor is participating, each such Investor agrees severally and not jointly
to indemnify, hold harmless and defend, to the same extent and in the same
manner set forth in Section 6(a), the Company, each of its directors, each of
its officers who signs the Registration Statement, its employees, agents and
each person, if any, who controls the Company within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act, and any other
stockholder selling securities pursuant to the Registration Statement or any of
its directors or officers or any person who controls such stockholder within the
meaning of the Securities Act or the Exchange Act (collectively and together
with an Indemnified Person, an "INDEMNIFIED PARTY"), against any Claim to which
any of them may become subject, under the Securities Act, the Exchange Act or
otherwise, insofar as such Claim arises out of or is based upon any Violation,
in each case to the extent (and only to the extent) that such Violation occurs
in reliance upon and in conformity with written information furnished to the
Company by such Investor expressly for use in connection with such Registration
Statement; and subject to Section 6(c) such Investor will reimburse any legal or
other expenses (promptly as such expenses are incurred and are due and payable)
reasonably incurred by them in connection with defending any such Claim;
provided, however, that the indemnity agreement contained in this Section 6(b)
shall not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of such Investor where such Investor
has a good faith basis not to consent to provided, further, however, that the
Investor shall be liable under this Agreement (including this Section 6(b) and
Section 7) for only that amount as does not exceed the net proceeds actually
received by such Investor as a result of the sale of Registrable Securities
pursuant to such Registration Statement. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on
<PAGE>   14

behalf of such Indemnified Party and shall survive the transfer of the
Registrable Securities by the Investors pursuant to Section 9 hereof.
Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(b) with respect to any preliminary
prospectus shall not inure to the benefit of any Indemnified Party if the untrue
statement or omission of material fact contained in the preliminary prospectus
was corrected on a timely basis in the prospectus, as then amended or
supplemented, and the Indemnified Party failed to utilize such corrected
prospectus.

               c.     Promptly after receipt by an Indemnified Person or
Indemnified Party under this Section 6 of notice of the commencement of any
action (including any governmental action), such Indemnified Person or
Indemnified Party shall, if a Claim in respect thereof is to made against any
indemnifying party under this Section 6, deliver to the indemnifying party a
written notice of the commencement thereof, and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that such indemnifying party shall not be
entitled to assume such defense and an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses to be
paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the
Indemnified Person or Indemnified Party and the indemnifying party would be
inappropriate due to actual or potential conflicts of interest between such
Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding or the actual or potential defendants in, or targets
of, any such action include both the Indemnified Person or the Indemnified Party
and the indemnifying party and any such Indemnified Person or Indemnified Party
reasonably determines that there may be legal defenses available to such
Indemnified Person or Indemnified Party which are different from or in addition
to those available to such indemnifying party. The indemnifying party shall pay
for only one separate legal counsel for the Indemnified Persons or the
Indemnified Parties, as applicable, and such legal counsel shall be selected by
Investors holding a majority-in-interest of the Registrable Securities included
in the Registration Statement to which the Claim relates (with the approval of
the Investors if they hold Registrable Securities included in such Registration
Statement), if the Investors are entitled to indemnification hereunder, or by
the Company, if the Company is entitled to indemnification hereunder, as
applicable. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not
relieve such indemnifying party of any liability to the Indemnified Person or
Indemnified Party under this Section 6, except to the extent that the
indemnifying party is actually prejudiced in its ability to defend such action.
The indemnification required by this Section 6 shall be made by periodic
payments of the amount thereof during the course of the investigation or
defense, as such expense, loss, damage or liability is incurred and is due and
payable.

        7.     CONTRIBUTION.

        To the extent any indemnification by an indemnifying party is prohibited
or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by
<PAGE>   15

law; provided, however, that (i) no contribution shall be made under
circumstances where the maker would not have been liable for indemnification
under the fault standards set forth in Section 6, (ii) no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of such fraudulent misrepresentation, and (iii)
contribution (together with any indemnification or other obligations under this
Agreement) by any seller of Registrable Securities shall be limited in amount to
the net amount of proceeds received by such seller from the sale of such
Registrable Securities.

        8.     REPORTS UNDER THE EXCHANGE ACT.

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

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

               b.     furnish to each Investor so long as such Investor owns
Warrants or Registrable Securities, promptly upon request, (i) a written
statement by the Company that it has complied with the reporting requirements of
Rule 144, the Securities Act and the Exchange Act, and (ii) such other
information as may be reasonably requested to permit the Investors to sell such
securities under Rule 144 without registration.

        9.     ASSIGNMENT OF REGISTRATION RIGHTS.

        The rights of the Investors hereunder, including the right to have the
Company register Registrable Securities pursuant to this Agreement, shall be
automatically assignable by each Investor to any permitted transferee (as
defined in the Securities Purchase Agreement) of all or any portion of the
Warrants or the Registrable Securities if: (i) the Investor agrees in writing
with the transferee as defined in Securities Purchase Agreement or assignee to
assign such rights, and a copy of such agreement is furnished to the Company
after such assignment, (ii) the Company is furnished with written notice of (a)
the name and address of such transferee or assignee, and (b) the securities with
respect to which such registration rights are being transferred or assigned,
(iii) following such transfer or assignment, the further disposition of such
securities by the transferee or assignee is restricted under the Securities Act
and applicable state securities laws, (iv) the transferee or assignee agrees in
writing for the benefit of the Company to be bound by all of the provisions
contained herein, and (v) such transfer shall have been made in accordance with
the applicable requirements of the Securities Purchase Agreement.

        10.    AMENDMENT OF REGISTRATION RIGHTS.
<PAGE>   16

        Provisions of this Agreement may be amended and the observance thereof
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with written consent of the Company and
Investors who hold a majority in interest of the Registrable Securities;
provided, however, that no amendment hereto which restricts the ability of an
Investor to elect not to participate in an underwritten offering shall be
effective against any Investor which does not consent in writing to such
amendment; provided, further, however, that no consideration shall be paid to an
Investor by the Company in connection with an amendment hereto unless each
Investor similarly affected by such amendment receives a pro-rata amount of
consideration from the Company. Unless an Investor otherwise agrees, each
amendment hereto must similarly affect each Investor. Any amendment or waiver
effected in accordance with this Section 10 shall be binding upon each Investor
and the Company.

        11.    MISCELLANEOUS.

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

               b.     Any notices required or permitted to be given under the
terms of this Agreement shall be sent by certified or registered mail (return
receipt requested) or delivered personally or by courier or by confirmed
telecopy, and shall be effective five (5) days after being placed in the mail,
if mailed, or upon receipt or refusal of receipt, if delivered personally or by
courier or confirmed telecopy, in each case addressed to a party. The addresses
for such communications shall be:

                      If to the Company:

                      FastComm Communications Corporation
                      45472 Holiday Drive
                      Dulles, Virginia 20166
                      Telephone: (703) 318-7750
                      Telecopy: (703) 787-4625
                      Attn: Peter C. Madsen, President

                      with a copy simultaneously transmitted by like means to:

                      Sokolow, Dunaud, Mercadier and Carreras, LLP
                      770 Lexington Avenue - 6th Floor
                      New York, New York 10021-8165
                      Telephone: (212) 935-6000
                      Telecopy: (212) 935-4865
                      Attn: Thomas G. Amon, Esq.
<PAGE>   17

and if to any Investor, at such address as such Investor shall have provided in
writing to the Company, or at such other address as each such party furnishes by
notice given in accordance with this Section 11(b).

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

               d.     This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed in the State of New York. The Company and each of the
Investor irrevocably consent to the jurisdiction of the United States federal
courts located in the City of New York in the State of New York in any suit or
proceeding based on or arising under this Agreement and irrevocably agree that
all claims in respect of such suit or proceeding may be determined in such
courts. The Company and each Investor irrevocably waive the defense of an
inconvenient forum to the maintenance of such suit or proceeding. The Company
and each Investor further agree that service of process upon the Company and
each Investor mailed by first class mail shall be deemed in every respect
effective service of process upon the Company and each Investor, as the case may
be, in any such suit or proceeding. Nothing herein shall affect the parties'
right to serve process in any other manner permitted by law. The Company and
each Investor agree that a final non-appealable judgment in any such suit or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on such judgment or in any other lawful manner.

               e.     This Agreement, the Securities Purchase Agreement
(including all schedules and exhibits thereto) and the Warrants constitute the
entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. This Agreement, the Securities Purchase Agreement and the
Warrants supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

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

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

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

               i.     Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement.
<PAGE>   18

               j.     All consents, approvals and other determinations to be
made by the Investors or the Investors pursuant to this Agreement shall be made
by the Investors or the Investors holding a majority in interest of the
Registrable Securities (determined as if all Warrants then outstanding had been
exercised for Registrable Securities) held by all Investors or Investors, as the
case may be.

               k.     The initial number of Registrable Securities included on
any Registration Statement and each increase (if any) to the number of
Registrable Securities included thereon shall be allocated pro rata among the
Investors based on the number of Registrable Securities held by each Investor at
the time of such establishment or increase, as the case may be. In the event an
Investor shall sell or otherwise transfer any of such holder's Registrable
Securities, each transferee shall be allocated a pro rata portion of the number
of Registrable Securities included on a Registration Statement for such
transferor. Any shares of Common Stock included on a Registration Statement and
which remain allocated to any person or entity which does not hold any
Registrable Securities shall be allocated to the remaining Investors, pro rata
based on the number of shares of Registrable Securities then held by such
Investors. For the avoidance of doubt, the number of Registrable Securities held
by any Investor shall be determined as if all Warrants then outstanding were
exercised for Registrable Securities.

               l.     Each party to this Agreement has participated in the
negotiation and drafting of this Agreement. As such, the language used herein
shall be deemed to be the language chosen by the parties hereto to express their
mutual intent, and no rule of strict construction will be applied

<PAGE>   19

against any party to this Agreement.

               m.     For purposes of this Agreement, the term "business day"
means any day other than a Saturday or Sunday or a day on which banking
institutions in the State of New York are authorized or obligated by law,
regulation or executive order to close.

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

FASTCOMM COMMUNICATIONS CORPORATION

By:
        Name: Peter C. Madsen
        Its: President

THE ZANETT LOMBARDIER MASTER FUND, L.P.

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

--------------------------------------------
RANO MUKHAMADIEVA

--------------------------------------------
AUGUSTO LATORRE

--------------------------------------------
SAMUEL L. MILBANK

--------------------------------------------
DAVID MCCARTHY

--------------------------------------------
<PAGE>   20

CLAUDIO GUAZZONI

THE ZANETT SECURITIES CORPORATION

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

<PAGE>   21

        TO
        REGISTRATION
        RIGHTS
        AGREEMENT
                                     [Date]
[Name and address
of transfer agent]

                      RE:    FASTCOMM COMMUNICATIONS CORPORATION

Ladies and Gentlemen:

        We are counsel to FastComm Communications Corporation, a corporation
organized under the laws of the Commonwealth of Virginia (the "COMPANY"), and we
understand that [Name of Investor] (the "HOLDER") has purchased from the Company
(i) prepaid common stock purchase warrants (the "PREPAID WARRANTS") which
entitle the holder thereof to acquire shares of the Company's common stock, par
value $.01 per share (the "COMMON STOCK"), and (ii) additional warrants (the
"INCENTIVE WARRANTS") to acquire shares of Common Stock. Pursuant to a
Registration Rights Agreement, dated as of ___________, 2001, by and among the
Company and the signatories thereto (the "REGISTRATION RIGHTS AGREEMENT"), the
Company agreed with the Holder, among other things, to register the Registrable
Securities (as that term is defined in the Registration Rights Agreement) under
the Securities Act of 1933, as amended (the "SECURITIES ACT"), upon the terms
provided in the Registration Rights Agreement. In connection with the Company's
obligations under the Registration Rights Agreement, on ___________, 2000, the
Company filed a Registration Statement on Form S-___ (File No. 333-
_____________) (the "REGISTRATION STATEMENT") with the Securities and Exchange
Commission (the "SEC") relating to the Registrable Securities, which names the
Holder as a selling stockholder thereunder. The Registration Statement was
declared effective by the SEC on _____________, 2001.

        [Other customary introductory and scope of examination language to be
inserted]

        Based on the foregoing, we are of the opinion that the Registrable
Securities have been registered under the Securities Act.

                   [Other customary language to be included.]

                                                   Very truly yours,

cc:   [Name of Investor]<PAGE>   1

                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

VOID AFTER 5:00 P.M., NEW YORK CITY TIME
ON FEBRUARY 27, 2006
(UNLESS EXTENDED PURSUANT TO ARTICLE II HEREOF)

THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES
REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES
LAWS UNLESS OFFERED, SOLD OR TRANSFERRED UNDER AN AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THOSE LAWS.

                      PREPAID COMMON STOCK PURCHASE WARRANT

February 27, 2001       Right to Purchase $850,000 of
        Common Stock, par value $.01 per share

        FOR VALUE RECEIVED, FASTCOMM COMMUNICATIONS CORPORATION, a corporation
organized under the laws of the Commonwealth of Virginia (hereinafter called the
"CORPORATION") hereby promises to issue to The Zanett Lombardier Master Fund,
L.P. or its registered assigns (the "HOLDER"), at any time or from time to time
upon its receipt of a Notice of Exercise (as defined in Article I.B below), up
to Eight Hundred Fifty Thousand Dollars ($850,000) (the "PREPAID AMOUNT") of the
Corporation's common stock, par value $.01 per share (the "COMMON STOCK"), in
the manner provided in Article II hereof. This Warrant is being issued by the
Corporation along with similar prepaid common stock purchase warrants (the
"OTHER PREPAID WARRANTS" and, together with this Warrant, the "PREPAID
WARRANTS") pursuant to that certain Securities Purchase Agreement, dated as of
February 26, 2001 by and among the Corporation, the Holder and the other parties
named therein (the "SECURITIES PURCHASE AGREEMENT").

<PAGE>   2

                                    ARTICLE I

                               CERTAIN DEFINITIONS

        For purposes hereof, the following terms shall have the following
meanings:

        A.      "CLOSING BID PRICE" means, for any security as of any date, the
closing bid price of such security on the principal securities exchange or
trading market where such security is listed or traded as reported by Bloomberg
Financial Markets or a comparable reporting service of national reputation
selected by the Corporation and reasonably acceptable to holders of a majority
of the aggregate Prepaid Amount represented by the then outstanding Prepaid
Warrants ("MAJORITY HOLDERS") if Bloomberg Financial Markets is not then
reporting closing bid prices of such security (collectively, "BLOOMBERG"), or if
the foregoing does not apply, the last reported sale price of such security in
the over-the-counter market on the electronic bulletin board for such security
as reported by Bloomberg, or, if no sale price is reported for such security by
Bloomberg, the average of the bid prices of any market makers for such security
as reported in the "pink sheets" by the National Quotation Bureau, Inc., in each
case for such date or, if such date was not a trading date for such security, on
the next preceding date which was a trading date. If the Closing Bid Price
cannot be calculated for such security as of either of such dates on any of the
foregoing bases, the Closing Bid Price of such security on such date shall be
the fair market value as reasonably determined by an investment banking firm
selected by the Corporation and reasonably acceptable to the Majority Holders,
with the costs of such appraisal to be borne by the Corporation.

        B.      "EXERCISE AMOUNT" means the portion of the Prepaid Amount of
this Warrant being exercised and any Exercise Default Payments payable with
respect thereto, each as specified in the notice of exercise in the form
attached hereto (the "NOTICE OF EXERCISE").

        C.      "EXERCISE DATE" means, for any Exercise (as defined below), the
date specified in the Notice of Exercise so long as the copy of the Notice of
Exercise is faxed (or delivered by other means resulting in actual notice) to
the Corporation at or before 11:59 p.m., New York City time, on the Exercise
Date indicated in the Notice of Exercise- provided, however, that if the Notice
of Exercise is not so faxed or otherwise delivered before such time, then the
Exercise Date shall be the date the holder faxes or otherwise delivers the
Notice of Exercise to the Corporation.

        D.      "EXERCISE PRICE" means, with respect to any Exercise Date, the
lower of the Fixed Exercise Price and the Variable Exercise Price, each in
effect as of such date and subject to adjustment as provided herein.

        E.      "CLOSING DATE" means the date of the Closing under the
Securities Purchase Agreement.

        F.      "FIXED EXERCISE PRICE" means $.61949 and shall be subject to
adjustment as provided herein.

<PAGE>   3

        G.      "VARIABLE EXERCISE PRICE" means, as of any date of
determination, the average of the lowest five (5) Closing Bid Prices for the ten
(10) consecutive trading day period ending on the trading day immediately
preceding the date of determination, provided, however, in no event shall the
Variable Exercise Price exceed the Closing Bid Price on the date of
determination (subject to equitable adjustment for any stock splits, stock
dividends, reclassifications or similar events during such ten (10) trading day
period), and shall be subject to adjustment as provided herein. Notwithstanding
the foregoing, in the event that the Corporations does not realize $4,500,000 or
more of gross revenues for the fourth quarter of fiscal year 2001 as reflected
in its filing with the Securities and Exchange Commission, "VARIABLE EXERCISE
PRICE" shall mean, as of any date of determination after the publication of such
results, the average of the lowest three (3) Closing Bid Prices for the twenty
(20) consecutive trading day period ending on the trading day immediately
preceding the date of determination, provided, however, in no event shall the
Variable Exercise Price exceed the Closing Bid Price on the date of
determination (subject to equitable adjustment for any stock splits, stock
dividends, reclassifications or similar events during such twenty (20) day
trading period), and shall be subject to adjustment as provided herein.

        H.      "PREMIUM" means an amount equal to (.06) x (N/365) x the Prepaid
Amount, where N equals the number of days from (i) the Issuance Date until the
date the Premium is redeemed in accordance with Article II.A (the "PREMIUM
DATE") or (ii) the immediately preceding Premium Date until the current Premium
Date.

        I.      "ISSUANCE DATE" means the date of issuance of this Warrant.

                                   ARTICLE II

                                    EXERCISE

        A.      Exercise by the Holder. (i) Subject to the limitations on
exercise contained in Paragraph C of this Article II, the Holder may, at any
time and from time to time, exercise all or any part of the outstanding Prepaid
Amount of this Warrant in accordance with the procedures set forth in Paragraph
B of this Article II for a number of fully paid and nonassessable shares of
Common Stock determined in accordance with the following formula if the
Corporation timely redeems the Premium thereon in cash in accordance with
subparagraph (ii) below:

                                 EXERCISE AMOUNT
                                 ---------------
                                 EXERCISE PRICE

or in accordance with the following formula if the Corporation does not timely
redeem the Premium thereon in accordance with subparagraph (ii) below:

                          EXERCISE AMOUNT + THE PREMIUM
                          -----------------------------
                                 EXERCISE PRICE

                (ii)    (a)     Subject to subparagraph (b) of this Article
II.A(ii), the Corporation shall have the right, in its sole

<PAGE>   4

discretion, upon receipt of a Notice of Exercise, to redeem the Premium subject
to such conversion for a sum of cash equal to the amount of the Premium being so
redeemed. All cash redemption payments hereunder shall be paid in lawful money
of the United States of America at such address for the Holder as appears on the
record books of the Corporation (or at such other address as such Holder shall
hereafter give to the Corporation by written notice). In the event the
Corporation so elects to redeem the Premium in cash and fails to pay such holder
the applicable redemption amount to which such holder is entitled within four
(4) business days of receipt by the Corporation of a Notice of Exercise, the
Corporation shall thereafter forfeit its right to redeem such Premium in cash
and such Premium shall thereafter be converted into shares of Common Stock in
accordance with Article II.A(i).

                        (b)     The Corporation shall provide not less than two
(2) business days advance notice, in writing, to the holders stating that it
will elect to redeem the Premium, relating to any Exercise Amount covered by a
Notice of Exercise received by the Corporation after such second business day,
in cash pursuant to the Corporation's redemption rights discussed in
subparagraph (a) of this Article II.A(ii) in connection with an exercise
pursuant to a Notice of Exercise delivered over the ten (10) business day period
beginning on the third (3rd) business day after the Holder's receipt of such
notice, which election shall be binding and irrevocable for such period. If the
Corporation does not provide such notice, the Corporation shall forfeit its
right to redeem such Premium in accordance with subparagraph (a) of this Article
II.A(ii) for any such period and shall be required to issue shares of Common
Stock as payment of Premium.

        B.      Mechanics of Exercise. (i) In order to exercise this Warrant,
Holder shall: (x) fax (or otherwise deliver) a copy of the fully executed Notice
of Exercise to the Corporation and (y) surrender or cause to be surrendered this
Warrant along with a copy of the Notice of Exercise as soon as practicable
thereafter to the Corporation. Upon receipt by the Corporation of a facsimile
copy of a Notice of Exercise from Holder, the Corporation shall immediately
send, via facsimile, a confirmation to Holder stating that the Notice of
Exercise has been received, the date upon which the Corporation expects to
deliver the Common Stock issuable upon such exercise and the name and telephone
number of a contact person at the Corporation regarding the exercise. The
Corporation shall not be obligated to issue shares of Common Stock upon an
exercise hereof unless either this Warrant is delivered to the Corporation as
provided above, or Holder notifies the Corporation that this Warrant has been
lost, stolen or destroyed (subject to the requirements of Article IX.G).

                (ii)    Delivery of Common Stock Upon Exercise. The Corporation
shall, on or before the later of (a) the third (3rd) business day following the
Exercise Date and (b) the business day following the date of the Corporation's
receipt of this Warrant (or, if this Warrant is lost, stolen or destroyed, the
date on which indemnity pursuant to Article IX.G is provided) (the "DELIVERY
PERIOD"), issue and deliver to the Holder or its nominee (x) that number of
shares of Common Stock issuable upon exercise of the portion of this Warrant
being exercised and (y) a new Warrant in the form hereof representing the
balance of the Prepaid Amount hereof

<PAGE>   5

not being exercised, if any. If the Corporation's transfer agent is
participating in the Depository Trust Company ("DTC") Fast Automated Securities
Transfer program, and so long as the certificates therefor are not required to
bear a legend, the Corporation shall cause its transfer agent to electronically
transmit the Common Stock issuable upon exercise to the Holder by crediting the
account of Holder or its nominee with DTC through its Deposit Withdrawal Agent
Commission system ("DTC TRANSFER"). If the aforementioned conditions to a DTC
Transfer are not satisfied, the Corporation shall deliver to Holder physical
certificates representing the Common Stock issuable upon such exercise. Further,
Holder may instruct the Corporation to deliver to Holder physical certificates
representing the Common Stock issuable upon such exercise in lieu of delivering
such shares by way of DTC Transfer.

                (iii)   Taxes. The Corporation shall pay any and all taxes which
may be imposed upon it with respect to the issuance and delivery of the shares
of Common Stock upon the exercise of this Warrant.

                (iv)    No Fractional Shares. If any exercise of this Warrant
would result in the issuance of a fractional share of Common Stock, such
fractional share shall be disregarded and the number of shares of Common Stock
issuable upon exercise of this Warrant shall be the nearest whole number of
shares.

                (v)     Exercise Disputes. In the case of any dispute with
respect to an exercise of this Warrant, the Corporation shall promptly issue
such number of shares of Common Stock as are not disputed in accordance with
subparagraph (ii) above. The Corporation and the Holder shall seek to resolve
any such dispute in good faith. If such dispute involves the calculation of the
Exercise Price, the Corporation shall immediately submit the disputed
calculations to B.D.O. Seidman, its independent outside accountants or to
another firm of independent outside accountants of national reputation selected
by the Corporation and reasonably acceptable to the Holder via facsimile within
two (2) business days of receipt of the Notice of Exercise. The accountant, at
the Corporation's sole expense (except that if the Corporation's calculation is
correct, the Holder shall bear such expense), shall audit the calculations and
notify the Corporation and Holder of the results no later than two (2) business
days from the date it receives the disputed calculations. The accountant's
calculation shall be deemed conclusive, absent manifest error. The Corporation
shall then issue the appropriate number of shares of Common Stock in accordance
with subparagraph (i) above.

        .       Limitations on Exercise. The exercise of this Warrant shall be
subject to the following limitations (each of which limitations shall be applied
independently):

                ()      Cap Amount. Unless permitted by the applicable rules and
regulations of the principal securities market on which the Common Stock is
listed or traded, in no event shall the total number of shares of Common Stock
issued upon exercise of the Prepaid Warrants exceed the maximum number of shares
of Common Stock that the Corporation can so issue pursuant to Rules
4310(c)(25)(H) or 4460(i) of the National Association of Securities Dealers
("NASD") (or any successor rules) (the "CAP AMOUNT"). The Cap Amount shall be
allocated pro-rata to the holders of the Prepaid Warrants as provided in Article
IX.H. In the event the

<PAGE>   6

Corporation is prohibited from issuing shares of Common Stock as a result of the
operation of this subparagraph (i), the Corporation shall comply with Article V.

                ()      No Five Percent Holders. Unless Holder delivers a waiver
in accordance with the last sentence of this subparagraph (ii), in no event
shall Holder be entitled to receive shares of Common Stock upon an exercise of
this Warrant to the extent that the sum of (x) the number of shares of Common
Stock beneficially owned by Holder and its affiliates (exclusive of shares
issuable upon exercise of the unexercised portion of any Prepaid Warrants or the
unexercised or unconverted portion of any other securities of the Corporation
(including, without limitation, the Incentive Warrants (as defined in the
Securities Purchase Agreement) issued by the Corporation pursuant to the
Securities Purchase Agreement) subject to a limitation on conversion or exercise
analogous to the limitations contained herein) and (y) the number of shares of
Common Stock issuable upon the exercise of the portion of this Warrant with
respect to which the determination of this subparagraph is being made, would
result in beneficial ownership by Holder and its affiliates of more than 4.99%
of the then outstanding shares of Common Stock. For purposes of this
subparagraph, beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13 D-G thereunder, except as otherwise provided in clause (x) above.
Notwithstanding the foregoing, Holder may, by providing written notice to the
Company, (xx) adjust the restrictions set forth in this paragraph so that the
limitations on beneficial ownership of 4.99% of the outstanding shares of Common
Stock referred to above shall not be applicable to Holder, which adjustment
shall not take effect until the 61st day after the date of such notice and (yy)
irrevocably waive the right to deliver a waiver in accordance with clause (xx)
of this sentence; provided, however, that if such adjustment would result in
beneficial ownership greater than 9.99% of the outstanding shares of Common
Stock, by Holder and its affiliates then such adjustment shall not take effect
until the 75th day after the date of such notice.

        D.      Required Exercise at Maturity. Subject to the limitations set
forth in Article II.C(i) and provided all shares of Common Stock issuable upon
exercise of all outstanding Prepaid Warrants are then (i) authorized and
reserved for issuance, and (ii) registered under the Securities Act of 1933, as
amended, for resale by the holders of Prepaid Warrants, each Prepaid Warrant
issued and outstanding on the fifth (5th) anniversary of the Issuance Date
thereof (the "MATURITY DATE"), automatically shall be exercised into shares of
Common Stock on such date in accordance with the exercise formulas set forth in
Article II.A (the "REQUIRED EXERCISE AT MATURITY"); provided, however, the
Maturity Date shall be extended for a period equal to the number of days any
Event of Default (as herein defined) or Trading Market Trigger Event (as herein
defined) is in existence. If the Required Exercise at Maturity occurs, the
Corporation and the holders of Prepaid Warrants shall follow the applicable
exercise procedures set forth in Article II.B; provided, however, that the
holders of Prepaid Warrants are not required to deliver a Notice of Exercise to
the Corporation or its transfer agent.

                                   ARTICLE III

<PAGE>   7

                      RESERVATION OF SHARES OF COMMON STOCK

        .       Reserved Amount. On the Closing Date, the Corporation shall have
reserved 3,190,000 shares (200% of number of shares which would be issuable if
all Prepaid Warrants issued or issuable pursuant to the Securities Purchase
Agreement are exercised in their entirety on the Closing Date) of the authorized
but unissued shares of Common Stock for issuance upon the full exercise of all
Prepaid Warrants issued or issuable pursuant to the Securities Purchase
Agreement (the "RESERVED AMOUNT") and thereafter the number of authorized but
unissued shares of Common Stock so reserved shall not be decreased and shall at
all times be sufficient to provide for the full exercise of all Prepaid Warrants
issued or issuable pursuant to the Securities Purchase Agreement at the then
current Exercise Price. The Reserved Amount shall be allocated to the holders of
Prepaid Warrants as provided in Article IX.H.

        .       Increases to Reserved Amount. If, at any time after the date
hereof, the Reserved Amount for any three (3) consecutive trading days (the last
of such three (3) trading days being the "AUTHORIZATION TRIGGER DATE") shall be
less than 135% of the number of shares of Common Stock issuable upon the full
exercise of all Prepaid Warrants issued or issuable pursuant to the Securities
Purchase Agreement, the Corporation shall immediately notify the holders of
Prepaid Warrants of such occurrence and shall take immediate action (including,
if necessary, seeking stockholder approval to authorize the issuance of
additional shares of Common Stock) to increase the Reserved Amount to 200% of
the number of shares of Common Stock then issuable upon the full exercise of all
Prepaid Warrants issued or issuable pursuant to the Securities Purchase
Agreement. In the event the Corporation fails to so increase the Reserved Amount
within ninety (90) days after an Authorization Trigger Date, and thereafter
Holder is unable to exercise all or any portion of the outstanding Prepaid
Amount of this Warrant because the Corporation does not have a sufficient number
of shares of Common Stock authorized and reserved for issuance upon exercise
hereof, Holder shall thereafter have the option, exercisable at any time by
delivery of a Default Notice (as defined in Article VI.C) to the Corporation, to
require the Corporation to pay to Holder an amount in cash equal to the Default
Amount (as defined in Article VI.B). Upon payment by the Corporation of the
Default Amount, this Warrant shall be null and void. If the Corporation fails to
deliver the Default Amount to Holder within five (5) business days after its
receipt of such Default Notice, then Holder shall be entitled to the remedies
provided in Article VI.C.

                                   ARTICLE IV

                          FAILURE TO SATISFY EXERCISES

        .       Exercise Default Payments. If, at any time, (x) Holder submits a
Notice of Exercise and the Corporation fails for any reason (other than because
such issuance would exceed Holder's allocated portion of the Reserved Amount or
Cap Amount, for which failures Holder shall have the remedies set forth in
Articles III and V, respectively) to deliver, on or prior to the fifth (5th)
business day following the expiration of the Delivery Period for such exercise,
such number of freely tradeable shares of Common Stock to which Holder is
entitled upon such exercise, or (y) the Corporation provides notice to any
holder of Prepaid Warrants

<PAGE>   8

(together with all other holders of Prepaid Warrants and the Holder referred to
herein, the "HOLDERS") at any time of its intention not to issue freely
tradeable shares of Common Stock upon the exercise by any Holder of a Prepaid
Warrant in accordance with the terms of the Prepaid Warrants (other than because
such issuance would exceed such Holder's allocated portion of the Reserved
Amount or Cap Amount) (each of (x) and (y) being an "EXERCISE DEFAULT"), then
the Corporation shall pay to Holder, in the case of an Exercise Default
described in clause (x) above, and to all Holders, in the case of a Exercise
Default described in clause (y) above, an amount equal to:

                   (.24) x (D/365) x (Exercise Default Amount)

where:

        "D" means the number of days after the expiration of the Delivery Period
through and including the Default Cure Date;

        "EXERCISE DEFAULT AMOUNT" means the Prepaid Amount of the Warrants
subject to the Exercise Notice delivered to the Corporation; and

        "DEFAULT CURE DATE" means (i) with respect to an Exercise Default
described in clause (x) of its definition, the date the Corporation effects the
exercise of the portion of this Warrant submitted for exercise, and (ii) with
respect to an Exercise Default described in clause (y) of its definition, the
date the Corporation begins to issue freely tradeable shares of Common Stock in
satisfaction of all exercises of Prepaid Warrants in accordance with their terms
and (iii) with respect to either type of Exercise Default, the date on which the
Corporation pays to Holder the Default Amount (as defined in Article VI.B)
pursuant to Paragraph D of this Article IV.

        The payments to which Holder shall be entitled pursuant to this
Paragraph A are referred to herein as "EXERCISE DEFAULT PAYMENTS." Holder may
elect to receive accrued Exercise Default Payments in cash or to convert all or
any portion of such accrued Exercise Default Payments, at any time, into Common
Stock at the lowest Exercise Price in effect during the period beginning on the
date of the Exercise Default through the Exercise Date for such exercise. In the
event Holder elects to receive any Exercise Default Payments in cash, it shall
so notify the Corporation in writing. Such payment shall be made in accordance
with and be subject to the provisions of Article IX.J. In the event Holder
elects to convert all or any portion of the Exercise Default Payments into
Common Stock, Holder shall indicate on a Notice of Exercise such portion of the
Exercise Default Payments which Holder elects to so convert and such exercise
shall otherwise be effected in accordance with the provisions of Article II.

        .       Adjustment to Exercise Price. If Holder has not received
certificates for all shares of Common Stock prior to the tenth (10th) business
day after the expiration of the Delivery Period with respect to an exercise of
any portion of any of Holder's Prepaid Warrants for any reason (other than
because such issuance would exceed Holder's allocated portion of the Reserved
Amount or Cap Amount, for which failures Holder shall have the remedies set
forth in Articles III and V, respectively), then the

<PAGE>   9

Fixed Exercise Price in respect of all Prepaid Warrants held by Holder
(including any Prepaid Warrants or portions thereof submitted to the Corporation
for exercise, but for which shares of Common Stock have not been issued to
Holder) shall thereafter be the lesser of (i) the Fixed Exercise Price on the
Exercise Date specified in the Notice of Exercise which resulted in the Exercise
Default and (ii) the lowest Exercise Price in effect during the period beginning
on, and including, such Exercise Date through and including the day such shares
of Common Stock are delivered to the Holder. If there shall occur an Exercise
Default of the type described in clause (y) of Article IV.A, then the Fixed
Exercise Price with respect to any exercise thereafter shall be the lowest
Exercise Price in effect at any time during the period beginning on, and
including, the date of the occurrence of such Exercise Default through and
including the Default Cure Date. The Fixed Exercise Price shall thereafter be
subject to further adjustment for any events described in Article VII.

        .       Buy-In Cure. Unless the Corporation has notified Holder in
writing prior to the delivery by Holder of a Notice of Exercise that the
Corporation is unable to honor exercises, if (i) (a) the Corporation fails for
any reason to deliver during the Delivery Period shares of Common Stock to
Holder upon an exercise of this Warrant or (b) there shall occur a Legend
Removal Failure (as defined in Article VI.A(ii) below) and (ii) thereafter,
Holder purchases (in an open market transaction or otherwise) shares of Common
Stock to make delivery in satisfaction of a sale by Holder of the unlegended
shares of Common Stock (the "SOLD SHARES") which Holder anticipated receiving
upon such exercise (a "BUY-IN"), the Corporation shall pay Holder (in addition
to any other remedies available to Holder up until that date in which the
Corporation makes payment pursuant to this provision) the amount by which (x)
Holder's total purchase price (including brokerage commissions, if any) for the
unlegended shares of Common Stock so purchased exceeds (y) the net proceeds
received by Holder from the sale of the Sold Shares. For example, if Holder
purchases unlegended shares of Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to shares of Common Stock it sold for
$10,000, the Corporation will be required to pay Holder $1,000. Holder shall
provide the Corporation written notification indicating any amounts payable to
Holder pursuant to this Paragraph C, together with evidence supporting such
calculation. The Corporation shall make any payments required pursuant to this
Paragraph C in accordance with and subject to the provisions of Article IX.J.

        .       Right to Require Payment of Default Amount. If the Corporation
fails, and such failure continues uncured for five (5) business days after the
Corporation has been notified thereof in writing by Holder, for any reason
(other than because such issuance would exceed Holder's allocable portion of the
Reserved Amount or Cap Amount, for which failures Holder shall have the remedies
set forth in Articles III and V, respectively) to issue shares of Common Stock
within ten (10) business days after the expiration of the Delivery Period with
respect to any exercise of this Warrant, then Holder may elect at any time prior
to the Default Cure Date for such Exercise Default by delivery of a Default
Notice (as defined in Article VI.C) to the Corporation, to require the
Corporation to pay to Holder an amount in cash equal to the Default Amount (as
defined in Article VI.B). Upon payment by the Corporation of the Default Amount,
this Warrant shall be null and void. If the Corporation fails to pay such
Default Amount within

<PAGE>   10

five (5) business days after its receipt of a Default Notice, then Holder shall
be entitled to the remedies provided in Article VI.C.

                                    ARTICLE V

                     INABILITY TO EXERCISE DUE TO CAP AMOUNT

        .       Obligation to Cure. If at any time the then unissued portion of
any Holder's Cap Amount is less than 135% of the number of shares of Common
Stock then issuable upon the full exercise of all Prepaid Warrants owned by such
Holder (a "TRADING MARKET TRIGGER EVENT"), the Corporation shall immediately
notify the Holders of Prepaid Warrants of such occurrence and shall take
immediate action (including, if necessary, seeking the approval of its
stockholders to authorize the issuance of the full number of shares of Common
Stock which would be issuable upon the full exercise of all Prepaid Warrants
issued or issuable pursuant to the Securities Purchase Agreement but for the Cap
Amount) to eliminate any prohibitions under applicable law or the rules or
regulations of any stock exchange, interdealer quotation system or other
self-regulatory organization with jurisdiction over the Corporation or any of
its securities on the Corporation's ability to issue shares of Common Stock in
excess of the Cap Amount. In the event the Corporation fails to eliminate all
such prohibitions within ninety (90) days after the Trading Market Trigger Event
and thereafter Holder is unable to exercise all or any portion of the
outstanding Prepaid Amount of this Warrant as a result of the operation of
Article II.C(i), then Holder shall thereafter have the option, exercisable at
any time until such date that all such prohibitions are eliminated, by delivery
of a Default Notice (as defined in Article VI.C) to the Corporation, to require
the Corporation to pay to Holder an amount in cash equal to the Default Amount
(as defined in Article VI.B). Upon payment by the Corporation of the Default
Amount, this Warrant shall be null and void. If the Corporation fails to deliver
the Default Amount within five (5) business days after its receipt of such
Default Notice, then such holder shall be entitled to the remedies provided in
Articles V.B and VI.C.

        .       Remedies. If the Corporation fails to pay the Default Amount
pursuant to Article V.A within five (5) business days after its receipt of such
Default Notice, Holder may, as an additional remedy, elect to require the
Corporation to issue shares of Common Stock in accordance with Holder's Notice
of Exercise at an Exercise Price equal to the average of the Closing Bid Prices
for the Common Stock during the five (5) consecutive trading days ending on the
trading day immediately preceding the date of Holder's written notice to the
Corporation of its election to receive shares of Common Stock pursuant to this
subparagraph (subject to equitable adjustment for any stock splits, stock
dividends, reclassifications or similar events during such five (5) trading day
period).

                                   ARTICLE VI

                                EVENTS OF DEFAULT

        .       Events of Default. If any of the following events of default
(each, an "EVENT OF DEFAULT") shall occur:

<PAGE>   11

                ()      the Common Stock (including any of the shares of Common
Stock issuable upon exercise of this Warrant) is suspended from trading on any
of, or is not listed (and authorized) for trading on at least one of, the NASDAQ
Over-the-Counter Bulletin Board, the New York Stock Exchange, the American Stock
Exchange or the Nasdaq SmallCap Market for an aggregate of ten (10) trading days
in any one hundred eighty (180) day period;

                ()      any Registration Statement required to be filed by the
Corporation pursuant to Sections 2(a) or 3(b) of that certain Registration
Rights Agreement by and among the Corporation and the other signatories thereto
entered into in connection with the Securities Purchase Agreement (the
"REGISTRATION RIGHTS AGREEMENT") has not been declared effective by the one
hundred eightieth (180th) day following the date on which such Registration
Statement is required to be declared effective pursuant to the Registration
Rights Agreement, or any such Registration Statement, after being declared
effective, cannot be utilized by Holders for the resale of all of its
Registrable Securities (as defined in the Registration Rights Agreement) for an
aggregate of more than thirty (30) days;

                ()      the Corporation fails to remove any restrictive legend
on any certificate or any shares of Common Stock issued to Holder upon exercise
of any Prepaid Warrant owned by Holder and when required by the Prepaid
Warrants, the Securities Purchase Agreement or the Registration Rights Agreement
(a "LEGEND REMOVAL FAILURE"), and any such failure continues uncured for ten
(10) business days after the Corporation has been notified thereof in writing by
the holder;

                ()      the Corporation provides notice to any of the Holders of
Prepaid Warrants, including by way of public announcement, at any time, of its
intention not to issue shares of Common Stock to any of the Holders of Prepaid
Warrants upon exercise in accordance with the terms of the Prepaid Warrants
(other than due to the circumstances contemplated by Articles III or V for which
the Holders shall have the remedies set forth in such Articles);

                ()      the Corporation shall:

                        ()      sell, convey or dispose of all or substantially
all of its assets;

                        ()      merge, consolidate or engage in any other
business combination with any other entity (other than pursuant to a migratory
merger effected solely for the purpose of changing the jurisdiction of
incorporation of the Corporation, other than pursuant to a merger in which the
Corporation is the surviving or continuing entity and its authorized capital
stock is unchanged and other than pursuant to a merger in which the surviving or
continuing entity (if other than the Corporation) assumes the Corporation's
obligations under the Securities Purchase Agreement, the Prepaid Warrants, the
Incentive Warrants and the Registration Rights Agreement and (x) is a
publicly-traded corporation whose common stock is listed for trading on the New
York Stock Exchange, the American Stock Exchange, the Nasdaq National Market or
the Nasdaq SmallCap Market) or (y) the consideration paid to the Corporation in
such merger is entirely in cash and the Holder of this Warrant shall be entitled
to receive, in connection with such transaction, cash consideration at a per
share price equal to the other stockholders' per share price; or

<PAGE>   12

                        ()      have fifty percent (50%) or more of the voting
power of its capital stock owned beneficially by one person, entity or "group"
(as such term is used under Section 13(d) of the Securities Exchange Act of
1934, as amended);

                ()      the Corporation otherwise shall breach any material term
hereunder (other than as specifically provided in subparagraphs (i)-(iv) of this
Paragraph A) or under the Securities Purchase Agreement or the Registration
Rights Agreement and such breach continues uncured for ten (10) business days
after the Corporation has been notified thereof in writing by the Holder, or the
applicable cure period provided therein;

                ()      any representation or warranty of the Corporation made
herein or in any agreement, statement or certificate given in writing pursuant
hereto or in connection herewith (including, without limitation, the Securities
Purchase Agreement and the Registration Rights Agreement), shall be false or
misleading in any material respect when made and the breach of which would have
a Material Adverse Effect (as defined in the Securities Purchase Agreement);

                ()      the Corporation shall make an assignment for the benefit
of creditors, or apply for or consent to the appointment of a receiver or
trustee for it or for a substantial part of its property or business; or such a
receiver or trustee shall otherwise be appointed; or

                ()      bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings for relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against the Corporation or
any subsidiary of the Corporation;

then, upon the occurrence and during the continuation of any Event of Default
specified in subparagraphs (i)-(vi) of this Paragraph A, at the option of Holder
exercisable through the delivery of a Default Notice (as defined in Paragraph C
below), and upon the occurrence of an Event of Default specified in
subparagraphs (vii) or (viii) of this Paragraph A, the Corporation shall pay
Holder, in satisfaction of its obligation to issue shares of Common Stock upon
exercise of this Warrant, an amount equal to the Default Amount and such Default
Amount, together with all other ancillary amounts payable hereunder, shall
immediately become due and payable, all without demand, presentment or notice,
all of which hereby are expressly waived, together with all costs, including,
without limitation, legal fees and expenses of collection, and Holder shall be
entitled to exercise all other rights and remedies available at law or in
equity; provided, however, that if the Corporation pays the Default Amount to
Holder within thirty (30) business days after the Corporation's receipt of a
Default Notice from Holder delivered as a result of the occurrence of an Event
of Default specified in subparagraph (iv)(a) of this Paragraph A, Holder

<PAGE>   13

shall have no other rights or remedies, at law or in equity, with respect to
such Event of Default. For the avoidance of doubt, the occurrence of any event
described in clauses (i), (ii), (iii), (iv), (vi) (vii) or (viii) above shall
immediately constitute an Event of Default and there shall be no cure period.

        .       Definition of Default Amount. The "DEFAULT AMOUNT" with respect
to this Warrant means an amount equal to:

                (i)                      A                  X        M
                        ----------------------------------
                                        EP

where:

        "A" means the outstanding Prepaid Amount of this Warrant on the date on
which the Corporation receives the Default Notice plus all outstanding and
unpaid Premium and any unpaid Exercise Default Payments owing (if any) with
respect thereto through the date of payment of the Default Amount;

        "EP" means the Exercise Price in effect on the date on which the
Corporation receives the Default Notice; and

        "M" means (i) with respect to all Events of Default other than an Event
of Default specified in Article VI.A(iv) hereof, the highest Closing Bid Price
of the Corporation's Common Stock during the period beginning on the date on
which the Corporation receives the Default Notice and ending on the date
immediately preceding the date of payment of the Default Amount and (ii) with
respect to an Event of Default specified in Article VI.A(iv) hereof, the greater
of (a) the amount determined pursuant to clause (i) of this definition or (b)
the fair market value, as of the date on which the Corporation receives the
Default Notice, of the consideration payable to the holder of a share of Common
Stock pursuant to the transaction which triggers the Event of Default. For
purposes of this definition, "fair market value" shall be determined by an
investment banking firm selected by the Corporation and reasonably acceptable to
the Majority Holders, with the costs of such appraisal to be borne by the
Corporation.

        .       Failure to Pay Default Amount. If the Corporation fails to pay
the Default Amount within thirty (30) business days of its receipt of a notice
requiring such payment (a "DEFAULT NOTICE"), then the Holder (i) shall be
entitled to interest on the Default Amount at a per annum rate equal to the
lower of twelve percent (12%) and the highest interest rate permitted by
applicable law from the date on which the Corporation receives the Default
Notice until the date of payment of the Default Amount hereunder, and (ii) shall
have the right, at any time and from time to time, to require the Corporation,
upon written notice, to immediately convert (in accordance with the terms of
Paragraph A of Article II) all or any portion of the Default Amount, plus
interest as aforesaid, into shares of Common Stock at the lowest Exercise Price
in effect

<PAGE>   14

during the period beginning on the date on which the Corporation receives the
Default Notice and ending on the Exercise Date with respect to the conversion of
such Default Amount. In the event the Corporation is not able to pay all amounts
due and payable with respect to all Prepaid Warrants subject to Default Notices,
the Corporation shall pay the Holders of such Prepaid Warrants which are the
subject of Default Notices such amounts pro rata, based on the total amounts
payable to each such Holder relative to the total amounts payable to all such
Holders.

                                   ARTICLE VII

                        ADJUSTMENTS TO THE EXERCISE PRICE

        The Exercise Price shall be subject to adjustment from time to time as
follows:

        .       Stock Splits, Stock Dividends, Etc. If, at any time on or after
the Closing Date, the number of outstanding shares of Common Stock is increased
by a stock split, stock dividend, combination, reclassification or other similar
event, the Fixed Exercise Price shall be proportionately reduced, or if the
number of outstanding shares of Common Stock is decreased by a reverse stock
split, combination or reclassification of shares, or other similar event, the
Fixed Exercise Price shall be proportionately increased. In such event, the
Corporation shall notify the Corporation's transfer agent of such change on or
before the effective date thereof.

        .       Adjustment Due to Merger, Consolidation, Etc. If, at any time
after the Closing Date, there shall be (i) any reclassification or change of the
outstanding shares of Common Stock (other than a change in par value, or from
par value to no par value, or from no par value to par value, or as a result of
a subdivision or combination), (ii) any consolidation or merger of the
Corporation with any other entity (other than a migratory merger effected solely
for the purpose of changing the jurisdiction of incorporation of the Corporation
and other than a merger in which the Corporation is the surviving or continuing
entity and its authorized capital stock is unchanged), (iii) any sale or
transfer of all or substantially all of the assets of the Corporation or (iv)
any share exchange pursuant to which all of the outstanding shares of Common
Stock are converted into other securities or property (each of (i) - (iv) above
being a "CORPORATE CHANGE"), then the Holders shall thereafter have the right to
receive upon exercise hereof, in lieu of the shares of Common Stock otherwise
issuable, such shares of stock, securities and/or other property as would have
been issued or payable in such Corporate Change with respect to or in exchange
for the number of shares of Common Stock which would have been issuable upon
exercise hereof (without giving effect to the limitations contained in Article
II.C) had such Corporate Change not taken place, and in any such case,
appropriate provisions shall be made with respect to the rights and interests of
Holder to the end that the provisions hereof (including, without limitation,
provisions for adjustment of the Exercise Price and of the number of shares of
Common Stock issuable upon exercise of this Warrant) shall thereafter be
applicable, as nearly as may be practicable in relation to any shares of stock
or securities thereafter deliverable upon the exercise thereof. The Corporation
shall not effect any Corporate Change unless (i) Holder has received written
notice of such transaction at least seventy-five (75) days prior thereto, but in
no event later than twenty (20) days prior to the record date for the
determination of stockholders entitled to vote with respect thereto, and (ii)
the resulting successor or acquiring entity (if not the Corporation) assumes by
written instrument the obligations of the Corporation under this

<PAGE>   15

Warrant. The above provisions shall apply regardless of whether or not there
would have been a sufficient number of shares of Common Stock authorized and
available for issuance upon exercise of the Prepaid Warrants outstanding as of
the date of such transaction, and shall similarly apply to successive
reclassifications, consolidations, mergers, sales, transfers or share exchanges.

        .       Adjustment Due to Major Announcement. In the event the
Corporation at any time after the Closing Date (i) makes a public announcement
that it intends to consolidate or merge with any other entity (other than a
migratory merger effected solely for the purpose of changing the jurisdiction of
incorporation of the Corporation and other than a merger in which the
Corporation is the surviving or continuing entity and its capital stock is
unchanged) or to sell or transfer all or substantially all of the assets of the
Corporation or (ii) any person, group or entity (including the Corporation)
publicly announces a tender offer, exchange offer or another transaction to
purchase 50% or more of the Corporation's Common Stock or otherwise publicly
announces an intention to replace a majority of the Corporation's Board of
Directors by waging a proxy battle or otherwise (the date of the announcement
referred to in clause (i) or (ii) of this Paragraph C is hereinafter referred to
as the "ANNOUNCEMENT DATE"), then the Exercise Price shall, effective upon the
Announcement Date and continuing through the sixth (6th) trading day following
the earlier of the consummation of the proposed transaction or tender offer,
exchange offer or another transaction or the Abandonment Date (as defined
below), be equal to the lower of (x) the Exercise Price which would have been
applicable for an exercise occurring on the Announcement Date and (y) the
Exercise Price determined in accordance with Article I.D on the Exercise Date
set forth in the applicable Notice of Exercise. From and after the sixth (6th)
trading day following the Abandonment Date, the Exercise Price shall be
determined as set forth in Article I.D "ABANDONMENT DATE" means with respect to
any proposed transaction or tender offer, exchange offer or another transaction
for which a public announcement as contemplated by this Paragraph C has been
made, the date upon which the Corporation (in the case of clause (i) above) or
the person, group or entity (in the case of clause (ii) above) publicly
announces the termination or abandonment of the proposed transaction or tender
offer, exchange offer or another transaction which caused this Paragraph C to
become operative.

        .       Adjustment Due to Distribution. If, at any time after the
Closing Date, the Corporation shall declare or make any distribution of its
assets (or rights to acquire its assets) to holders of Common Stock as a partial
liquidating dividend, by way of return of capital or otherwise (including any
dividend or distribution to the Corporation's shareholders in cash or shares (or
rights to acquire shares) of capital stock of a subsidiary (i.e. a spin-off)) (a
"DISTRIBUTION"), then Holder shall be entitled, upon any exercise of this
Warrant after the date of record for determining stockholders entitled to such
Distribution, to receive the amount of such assets which would have been payable
to Holder with respect to the shares of Common Stock issuable upon such exercise
(without giving effect to the limitations contained in Article II.C) had Holder
been the holder of such shares of Common Stock on the record date for the
determination of stockholders entitled to such Distribution.

        .       Purchase Rights. If, at any time after the Closing Date, the
Corporation issues any Convertible Securities or rights to purchase stock,
warrants, securities or other property (the "PURCHASE RIGHTS") pro rata to the
record holders of any class of Common Stock, then Holder

<PAGE>   16

will be entitled to acquire, upon the terms applicable to such Purchase Rights,
the aggregate Purchase Rights which Holder could have acquired if Holder had
held the number of shares of Common Stock acquirable upon complete exercise of
this Warrant (without giving effect to the limitations contained in Article
II.C) immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of Common Stock are to be determined for the
grant, issue or sale of such Purchase Rights.

        .       Notice of Adjustments. Upon the occurrence of each adjustment or
readjustment of the Exercise Price pursuant to this Article VII, the
Corporation, at its expense, shall promptly compute such adjustment or
readjustment and prepare and furnish to Holder a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Corporation shall, upon the written
request at any time of Holder, furnish to Holder a like certificate setting
forth (i) such adjustment or readjustment, (ii) the Exercise Price at the time
in effect and (iii) the number of shares of Common Stock and the amount, if any,
of other securities or property which at the time would be received upon
exercise of this Warrant.

                                  ARTICLE VIII

                            REDEMPTION AND PUT RIGHT

        A.      Redemption by Corporation.

                (a)     At any time or times on or after the date hereof,
provided the Corporation is not in material violation of any of its obligations
under this Prepaid Warrant, the Securities Purchase Agreement or the
Registration Rights Agreement and so long as no Event of Default shall have
occurred and be continuing other than any Event of Default provided in Article
VI.A.(v)(a) or (c) (and the Holder does not waive such violation or Event of
Default), the Corporation shall have the right (a "CALL"), in its sole
discretion, to redeem any or all of the Exercise Amounts of outstanding Prepaid
Warrants which Exercise Amounts at such time are exercisable on the date the
Corporation delivers a Notice of Call to the Holders ("ELIGIBLE EXERCISE
AMOUNTS"); provided that the Conditions to a Call (as set forth below) are
satisfied, provided, however, that in the event of a Call in connection with an
Event of Default provided for in Article VI.A.(v)(a) or (c) the only Condition
to Call shall be clause (vi) in the definition thereof. The Corporation shall
exercise its right to Call by providing each holder of Prepaid Warrants written
notice ("NOTICE OF CALL") at least thirty (30) days prior to the date selected
by the Corporation for a Call (the "CALL DATE"). On the Call Date the
Corporation shall pay the Call Amount (as defined below) to each Holder. If the
Corporation elects to so Call some, but not all, of the Eligible Exercise
Amounts, the Corporation shall Call a pro rata amount of the Eligible Exercise
Amounts from each Holder of Prepaid Warrants (based on the dollar amount of the
Eligible Exercise Amounts of Prepaid Warrants held by such holder relative to
the total dollar amount of Prepaid Warrants outstanding on the date of the
Corporation's delivery of the Notice of Call). The Notice of Call shall indicate
(x) the dollar amount of the Eligible Exercise Amounts of Prepaid Warrants the
Corporation has selected for Call, (y) the Call Date, which date shall not be
less than 30 or more than 40 days after each holder's receipt of such notice,
and (z)

<PAGE>   17

each Holder's pro rata share of the Eligible Exercise Amounts of outstanding
Prepaid Warrants which the Corporation elects to Call. All Holders of Prepaid
Warrants shall thereupon and within two (2) business days after the Call Date
surrender all of the Eligible Exercise Amounts of Prepaid Warrants selected for
call to the Corporation provided the Corporation has paid the Call Amount.
"CONDITIONS TO CALL" means the following conditions: (i) on each day during the
period beginning 20 trading days prior to the Notice of Call and ending on and
including the date of the Call Date, the Registration Statement shall be
effective and available for the sale of no less than 150% of the sum of (A) the
number of shares of Common Stock then issuable upon the exercise of all
outstanding Prepaid Warrants (without regard to any limitations on exercise
herein or elsewhere) and (B) the number of shares of Common Stock issued upon
exercise of Prepaid Warrants that are then held by the holders of the Prepaid
Warrants, (ii) on each day during the period beginning 20 trading days prior to
the date of the Notice of Call and ending on and including the Call Date, the
Common Stock is designated for quotation on the Nasdaq Over-the-Counter Bulletin
Board or a national securities exchange or market and is not suspended from
trading; (iii) during the period beginning on the Issuance Date and ending on
and including the Call Date, the Corporation shall have delivered shares upon
exercise of the Prepaid Warrants to the Investors (as that term is defined in
the Securities Purchase Agreement) on a timely basis as set forth in Article II
of the Prepaid Warrants; (iv) none of an Event of Default, an Exercise Default,
a Trading Market Triggering Event or any event that with the passage of time
would constitute an Event of Default or a Trading Market Triggering Event
(assuming it was not cured) shall have occurred; (v) the Corporation otherwise
has satisfied its obligations and is not in default under this Warrant, the
Securities Purchase Agreement and the Registration Rights Agreement; and (vi)
the Corporation has sufficient funds immediately available to satisfy its
obligations to pay the Call Amount as set forth herein. Notwithstanding the
above, any holder of Prepaid Warrants may exercise such Prepaid Warrants for
Common Stock pursuant to Article II on or prior to the Corporation's Election
Call Date.

                (b)     In the event of a Call, the Call Amount (as defined
below) in immediately available funds shall be paid to the holders of Prepaid
Warrants being called on the applicable Call Date; provided, however, that the
Corporation shall not be obligated to deliver any portion of the Call Amount
until either the certificates evidencing the Prepaid Warrants being redeemed are
delivered to the office of the Corporation or the Holder notifies the
Corporation that such certificates have been lost, stolen or destroyed and
delivers the documentation in accordance with Article IX.G hereof.
Notwithstanding anything herein to the contrary, in the event that the
certificates evidencing the Prepaid Warrants being redeemed are not delivered to
the Corporation prior to the third business day following the Call Date, the
call of the Prepaid Warrants pursuant to this Article VIII shall still be deemed
effective as of the Call Date and the Call Amount shall be paid to the Holder of
Prepaid Warrants being called within five (5) business days of the date the
certificates evidencing the Prepaid Warrants being called actually delivered to
the Corporation or the escrow agent. "CALL AMOUNT" shall mean and amount equal
to the greater of (i) the product of 1.15 and the Eligible Exercise Amount of
all Prepaid Warrants being called plus all outstanding and unpaid Premium and
any Exercise Default Payments payable with respect thereto and (ii) the product
of 1.10 and the Default Amount.

                (c)     If the Corporation fails to pay, when due and owing, any
Call Amount, then the holder of Prepaid Warrants entitled to receive such Call
Amount shall have the right, at

<PAGE>   18

any time and from time to time during the twenty (20) trading day period
following the Call Date to require the Corporation, upon written notice, to
immediately exercise (in accordance with the terms of paragraph A of Article II)
any or all of the Prepaid Amount which is the subject of such call, into shares
of Common Stock at the lowest Exercise Price in effect during the period
beginning on the date the Corporation elected to call such Prepaid Warrants and
ending on expiration of such twenty trading day period. From and after the
expiration of such twenty (20) trading day period, the holders may exercise
Prepaid Warrants at the Exercise Price then in effect and in accordance with
Article II.

        B.      Holder's Right to Put.

                (a)     In the event of a Chanlcomm Change of Control (as
defined herein), the Holder hereof, together with the Other Prepaid Warrants and
the Prepaid Warrants issued by the Corporation on September 7, 2000 (the
"SEPTEMBER 7, 2000 PREPAID WARRANTS"), shall have the right to put to the
Corporation any or all of the Prepaid Amount which has not otherwise been
exercised or redeemed plus Premium thereon (the "PUT AMOUNT") pursuant to the
terms hereof (the "PUT RIGHT"). Not later than one (1) business day after a
Chanlcomm Change of Control, the Corporation shall deliver written notice to the
Holders (the "CHANLCOMM CHANGE OF CONTROL NOTICE") setting forth the aggregate
consideration received or to be received by the Corporation in connection with
such Chanlcomm Change of Control (the "CONSIDERATION") and all other relevant
details regarding such Chanlcomm Change of Control. Within ten (10) days after
receipt of the Chanlcomm Change of Control Notice (the "PUT PERIOD"), the Holder
may exercise its Put Right by delivering to the Corporation written notice of
its election to require the Corporation to pay all or a portion of the Put
Amount (a "PUT") setting forth the total Put Amount the Holder desires to Put to
the Corporation. The Corporation shall pay all Puts (or portions thereof as
provided for in Article VIII.B(c)) within five (5) days after the expiration of
the Put Period by certified check or wire transfer of immediately available
funds pursuant to instruction delivered to the Corporation.

                (b)     Notwithstanding anything herein to the contrary, the
aggregate Put Amount the Corporation shall be obligated to pay to all Holders
shall be limited as follows: (i) if the Consideration is less than $4,000,000,
$0; (ii) if the Consideration is between $4,000,000 and $10,000,000, up to an
amount equal to the product of (w) the Consideration minus $4,000,000 and (x)
 .3; and (iii) if the Consideration is greater than $10,000,000, up to an amount
equal to the product of the (y) the Consideration and (z) .2.

                (c)     In the event the amount determined pursuant to Article
VIII.B(b) is insufficient to pay all Puts, the Corporation shall pay the Puts on
a pro rata basis based on the amount of each Holder's Put. Notwithstanding the
foregoing, in such event, holders of the September 7, 2000 Prepaid Warrants
exercising Puts shall be paid in full prior to any Put payments to the holders
of Prepaid Warrants. The Corporation agrees that the holders of the September 7,
2000 Prepaid Warrants are third party beneficiaries of this Article VIII and may
enforce any rights received hereunder against the Corporation.

                (d)     For purposes hereof, "CHANLCOMM CHANGE OF CONTROL" means
the sale or other disposition in one or a series of transactions of any of the
Corporation's assets relating to its

<PAGE>   19

Chanlcomm product other than sales or licenses of such product in the ordinary
course of business.

                                   ARTICLE IX

                                  MISCELLANEOUS

        .       Failure or Indulgency Not Waiver. No failure or delay on the
part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other right, power or privilege.

        .       Notices. Any notice herein required or permitted to be given
shall be in writing and may be personally served or delivered by courier and
shall be deemed to have been given upon receipt (which shall include telephone
line facsimile transmission). The addresses for such communications shall be:

                If to the Company:

                        FastComm Communications Corporation
                        45472 Holiday Drive
                        Dulles, Virginia 20166
                        Telephone: (703) 318-7750
                        Telecopy:   (703) 787-4865
                        Attn: Peter C. Madsen, President

                with a copy simultaneously transmitted by like means to:

                        Sokolow, Dunaud, Mercadier & Carreras, LLP
                        770 Lexington Avenue - 6th Floor
                        New York, New York 10021-8165
                        Telephone: (212) 935-6000
                        Telecopy: (212) 935-4625
                        Attn.: Thomas G. Amon, Esq.

        If to the Holder, at such address as such Holder shall have provided in
writing to the Corporation.

        C.      Amendment Provision. Except as otherwise provided herein, this
Warrant and any provision hereof may only be amended by an instrument in writing
signed by the Corporation and the Majority Holders. The term "WARRANT" and all
references thereto, as used throughout this instrument, shall mean this
instrument as originally executed, or if later amended or supplemented, then as
so amended or supplemented.

        D.      Assignability. This Warrant shall be binding upon the
Corporation and its successors and assigns and shall inure to the benefit of the
Holder and its successors and assigns.

<PAGE>   20

        E.      Governing Law. This Warrant shall be governed by and construed
in accordance with the laws of the State of New York applicable to contracts
made and to be performed in the State of New York. The Corporation irrevocably
consents to the jurisdiction of the United States federal courts located in the
City of New York in the State of New York in any suit or proceeding based on or
arising under this Warrant and irrevocably agrees that all claims in respect of
such suit or proceeding may be determined in such courts. The Corporation
irrevocably waives the defense of an inconvenient forum to the maintenance of
such suit or proceeding. The Corporation further agrees that service of process
upon the Corporation mailed by first class mail shall be deemed in every respect
effective service of process upon the Corporation in any such suit or
proceeding. Nothing herein shall affect Holder's right to serve process in any
other manner permitted by law. The Corporation agrees that a final
non-appealable judgment in any such suit or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on such judgment or in any other
lawful manner.

        F.      Denominations. At the request of Holder, upon surrender of this
Warrant, the Corporation shall promptly issue new Warrants in the aggregate
outstanding Prepaid Amount hereof, in the form hereof, in such denominations as
Holder shall request.

        G.      Lost or Stolen Warrants. Upon receipt by the Corporation of (i)
evidence of the loss, theft, destruction or mutilation of this Warrant and (ii)
(y) in the case of loss, theft or destruction, of indemnity and affidavit
reasonably satisfactory to the Corporation, or (z) in the case of mutilation,
upon surrender and cancellation of this Warrant, the Corporation shall execute
and deliver new Warrants, in the form hereof, in such denominations as Holder
may request. However, the Corporation shall not be obligated to reissue such
lost or stolen Warrants if Holder contemporaneously requests the Corporation to
exercise this Warrant.

        H.      Allocation of Cap Amount and Reserved Amount. The initial Cap
Amount and Reserved Amount shall be allocated pro rata among the Holders of
Prepaid Warrants based on the aggregate Prepaid Amount of the Prepaid Warrants
issued to each Holder. Each increase to the Cap Amount and the Reserved Amount
shall be allocated pro rata among the Holders of Prepaid Warrants based on the
aggregate Prepaid Amount of the Prepaid Warrants held by each Holder at the time
of the increase in the Cap Amount or Reserved Amount. In the event a Holder
shall sell or otherwise transfer any of such Holder's Prepaid Warrants, each
transferee shall be allocated a pro rata portion of such transferor's Cap Amount
and Reserved Amount. Any portion of the Cap Amount or Reserved Amount which
remains allocated to any person or entity which does not hold any Prepaid
Warrants shall be allocated to the remaining Holders of Prepaid Warrants pro
rata based on the aggregate Prepaid Amount of the Prepaid Warrants then held by
such Holders.

        I.      Quarterly Statements of Available Shares. The Corporation shall
deliver (or cause its transfer agent to

<PAGE>   21

deliver) to Holder a written report notifying Holder of any occurrence which
prohibits the Corporation from issuing Common Stock upon any exercise of Prepaid
Warrants. The Corporation (or its transfer agent) shall also provide, within
fifteen (15) days after delivery to the Corporation of a written request by any
Holder, any of the following information as of the date of such request: (i) the
total outstanding Prepaid Amount of all Prepaid Warrants, (ii) the total number
of shares of Common Stock issued upon all exercises of all Prepaid Warrants
prior to such date, (iii) the total number of shares of Common Stock which are
reserved for issuance upon exercise of the Prepaid Warrants which are then
outstanding, and (iv) the total number of shares of Common Stock which may
thereafter be issued by the Corporation upon exercise of the Prepaid Warrants
before the Corporation would exceed the Reserved Amount and the Cap Amount.

        J.      Payment of Cash; Defaults. Whenever the Corporation is required
to make any cash payment to Holder under this Warrant (as an Exercise Default
Payment or otherwise), such cash payment shall be made to Holder within fifteen
(15) business days after delivery by Holder of a notice specifying that Holder
elects to receive such payment in cash and the method (e.g., by check, wire
transfer) in which such payment should be made. If such payment is not delivered
within such fifteen (15) business day period, Holder shall thereafter be
entitled to interest on the unpaid amount at a per annum rate equal to the lower
of twelve percent (12%) and the highest interest rate permitted by applicable
law until such amount is paid in full to Holder.

        K.      Restrictions on Shares. The shares of Common Stock issuable upon
exercise of this Warrant may not be sold or transferred unless (i) they first
shall have been registered under the Securities Act and applicable state
securities laws, (ii) the Corporation shall have been furnished with an opinion
of legal counsel (in form, substance and scope customary for opinions in such
circumstances) to the effect that such sale or transfer is exempt from the
registration requirements of the Securities Act or (iii) they are sold under
Rule 144 under the Act. Except as otherwise provided in the Securities Purchase
Agreement, each certificate for shares of Common Stock issuable upon exercise of
this Warrant that have not been so registered and that have not been sold under
an exemption that permits removal of the legend, shall bear a legend
substantially in the following form, as appropriate:
        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF
        ANY STATE OF THE UNITED STATES. THE SECURITIES REPRESENTED HEREBY MAY
        NOT BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
        REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES
        LAWS UNLESS OFFERED, SOLD OR TRANSFERRED UNDER AN AVAILABLE EXEMPTION
        FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS.

<PAGE>   22

Upon the request of a holder of a certificate representing any shares of Common
Stock issuable upon exercise of this Warrant, the Corporation shall remove the
foregoing legend from the certificate and issue to such holder a new certificate
therefor free of any transfer legend, if (i) with such request, the Corporation
shall have received either (A) an opinion of counsel, in form, substance and
scope customary for opinions in such circumstances, to the effect that any such
legend may be removed from such certificate, or (B) satisfactory representations
from Holder that Holder is eligible to sell such security under Rule 144 or (ii)
a registration statement under the Securities Act covering the resale of such
securities is in effect. Nothing in this Warrant shall (i) limit the
Corporation's obligation under the Registration Rights Agreement, or (ii) affect
in any way Holder's obligations to comply with applicable securities laws upon
the resale of the securities referred to herein.

        L.      Status as Warrantholder. Upon submission of a Notice of Exercise
by Holder, the Prepaid Amount of this Warrant (other than any portion of this
Warrant, if any, which cannot be exercised because the exercise thereof would
exceed Holder's allocated portion of the Reserved Amount or Cap Amount) shall be
deemed exercised for shares of Common Stock as of the Exercise Date and Holder's
rights as a holder of this Warrant shall cease and terminate, excepting only the
right to receive certificates for such shares of Common Stock and to any
remedies provided herein or otherwise available at law or in equity to Holder
because of a failure by the Corporation to comply with the terms of this
Warrant. Notwithstanding the foregoing, if Holder has not received certificates
for all shares of Common Stock prior to the tenth (10th) business day after the
expiration of the Delivery Period with respect to an exercise for any reason,
then (unless Holder otherwise elects to retain its status as a holder of Common
Stock by so notifying the Corporation) the portion of the Prepaid Amount subject
to such exercise shall be deemed outstanding under this Warrant and the
Corporation shall, as soon as practicable, return this Warrant to Holder. In all
cases, Holder shall retain all of its rights and remedies (including, without
limitation, (i) the right to receive Exercise Default Payments pursuant to
Article IV.A to the extent required thereby for such Exercise Default and any
subsequent Exercise Default and (ii) the right to have the Exercise Price with
respect to subsequent exercises determined in accordance with Article IV.B) for
the Corporation's failure to honor the exercise of this Warrant.

        M.      Remedies Cumulative. The remedies provided in this Warrant shall
be cumulative and in addition to all other remedies available under this
Warrant, at law or in equity (including a decree of specific performance and/or
other injunctive relief), no remedy contained herein shall be deemed a waiver of
compliance giving rise to such remedy and nothing herein shall limit Holder's
right to pursue actual damages for any failure by the Corporation to comply with
the terms of this Warrant. The Corporation acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Holder and that the
remedy at law for any such breach may be inadequate. The Corporation therefore
agrees, in the event of any such breach or threatened breach, the Holder shall
be entitled, in addition to all other available remedies, to an injunction
restraining any

<PAGE>   23

breach, without the necessity of showing economic loss and without any bond or
other security being required.

        N.      Liquidation Treatment. In the event of a liquidation of the
Corporation, this Warrant shall be considered equity of the Corporation without
a defined claim amount on the proceeds of such liquidation, provided, however,
that nothing contained in this provision shall limit in any way any of the
Holders' rights or remedies under applicable law or the terms set forth in this
Prepaid Warrant which are not inconsistent with the intention of this provision
to treat the holder as an equity holder in the event of a liquidation .

        IN WITNESS WHEREOF, the Corporation has caused this Warrant to be signed
by its duly authorized officer.

                                            FASTCOMM            COMMUNICATIONS
CORPORATION

                                            By:
                                                     Name: Peter C. Madsen
                                                     Title: President

<PAGE>   24

EXHIBIT 1

                               NOTICE OF EXERCISE

To:     FastComm Communications Corporation
        45472 Holiday Drive
        Dulles, Virginia 20166
        Telecopy: (703) 787-4625
        Attn: Peter C. Madsen, President

The undersigned hereby irrevocably elects to exercise $____________ of the
Prepaid Amount of this Warrant (the "EXERCISE") into shares of common stock
("COMMON STOCK") of FastComm Communications Corporation (the "CORPORATION")
according to the conditions of the Prepaid Common Stock Purchase Warrant dated
____, 2001 (the "WARRANT"), as of the date written below. If securities are to
be issued in the name of a person other than the undersigned, the undersigned
will pay all transfer taxes payable with respect thereto. No fee will be charged
to the holder for any Exercise, except for transfer taxes, if any. A copy of the
Warrant is attached hereto (or evidence of loss, theft or destruction thereof).

If the Corporation's transfer agent is participating in the Depository Trust
Company ("DTC") Fast Automated Securities Transfer program, the Corporation
shall electronically transmit the Common Stock issuable pursuant to this Notice
of Exercise to the account of the undersigned or its nominee (which is
________________) with DTC through its Deposit Withdrawal Agent Commission
System ("DTC TRANSFER"). If the Corporation's transfer agent does not
participate in the DTC program as aforementioned, or if Holder checks the box
set forth below, the Corporation shall deliver to Holder physical certificates
representing the Common Stock issuable upon exercise of the Warrant.

The undersigned represents and warrants that all offers and sales by the
undersigned of the securities issuable to the undersigned upon exercise of this
Warrant shall be made pursuant to registration of the Common Stock under the
Securities Act or pursuant to an exemption from registration under the Act.

In the event of partial exercise, please reissue an appropriate Warrant(s) for
the portion of the Prepaid Amount which shall not have been exercised.

Check Box if Applicable:

        _ In lieu of receiving the shares of Common Stock issuable pursuant to
        this Notice of Exercise by way of DTC Transfer, the undersigned hereby
        requests that the Corporation issue and deliver to the undersigned
        physical certificates representing such shares of Common Stock.

                                Date of Exercise:
                                                  ------------------------------

                                Applicable Exercise Price:
                                                           ---------------------

<PAGE>   25

                                Portion of Prepaid Amount to be exercised:
---------------------

                                Amount of Exercise Default
                                Payments to be exercised, if any:
                                                                  --------------

                                Number of Shares of
                                Common Stock to be Issued:
                                                           ---------------------

                                Signature:
                                           -------------------------------------

                                Name:
                                      ------------------------------------------

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

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