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                                                                    EXHIBIT 10.2

Standard Manufacturing Agreement
Fine Pitch Confidential

                        STANDARD MANUFACTURING AGREEMENT

Fine Pitch Technology ("Fine Pitch") a subsidiary of Solectron Corporation, a
Delaware corporation, whose principle place of business is located at 11331
Valley View Street, Cypress CA 90630 and Accelerated Networks, Inc., a Delaware
corporation ("Customer") whose principle place of business is located at 301
Science Drive, Moorpark, CA 93021 in their desire to formulate a strategic
business relationship and to define their expectations regarding this
relationship, hereby agree as follows:

1.0  PRECEDENCE:

1.1  This Agreement is intended by Fine Pitch and Customer to operate as a basic
     set of operating conditions regarding their respective business
     relationship. Product specific requirements along with specific business
     terms and conditions will be mutually agreed to and documented by an
     addendum to this Agreement.

1.2  It is the intent of the parties that this Agreement and its addenda shall
     prevail over the terms and conditions of any purchase order, acknowledgment
     form or other instrument.

1.3  This Agreement may be executed in one or more counterparts, each of which
     will be deemed the original, but all of which will constitute but one and
     the same document. The parties agree this Agreement and its addenda may not
     be modified except in writing signed by both parties.

2.0  TERM

2.1  This Agreement shall commence on the effective date shown on the signature
     page of his Agreement, and shall continue for an initial term of one (1)
     year. This Agreement shall automatically be renewed for successive one (1)
     year increments unless either party requests in writing, at least ninety
     (90) days prior to the anniversary date, that this Agreement not be so
     renewed.

3.0  PRODUCT FORECAST

3.1  It is agreed that Customer will provide Fine Pitch, on a monthly basis, a
     rolling twelve (12) month Product forecast. This section, as appropriate,
     may be modified in an addendum to reflect specific Product requirements.

3.2  Customer and Fine Pitch will work together on a plan to ensure that the
     first units built by Fine Pitch are built at full turnkey (Fine Pitch will
     procure all the necessary material including the Hard Drive). Fine Pitch
     will allow Customer reasonable access to their facilities for purposes of
     monitoring and working with Fine Pitch quality control, manufacturing
     processes and production.

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Standard Manufacturing Agreement
Fine Pitch Confidential

4.0  MATERIAL PROCUREMENT

4.1  Fine Pitch is authorized to purchase materials using standard purchasing
     practices including, but not limited to, acquisition of material
     recognizing Economic Order Quantities, ABC buy policy and long lead time
     component management in order to meet the forecasted requirements of
     Customer. Customer recognizes its financial responsibility for the material
     purchased by Fine Pitch on behalf of Customer. This financial
     responsibility is more clearly defined in the addendum.

4.2  In the event of a termination or a cancellation of a Purchase Order or
     Material Release, and/or discontinuance of Product or excess material
     created by an engineering change, Customer agrees to compensate Fine Pitch
     for Products and material inventory as follows: (i) the contract price of
     all finished Products in Fine Pitch's possession, (ii) the cost of material
     inventory (including handling charges and value add), whether in raw form
     or work in process, and not returnable to the vendor or usable for other
     customers, (iii) the cost of material on order (including handling charges)
     which cannot be canceled, and (iv) any vendor cancellation charges incurred
     with respect to material canceled or returned to the vendor, or otherwise
     set forth in an addendum.

4.3  Fine Pitch shall undertake reasonable efforts to cancel all applicable
     component purchase orders and reduce component inventory through return for
     credit programs or allocate components for alternate programs if
     applicable.

5.0  PURCHASE ORDERS AND PRICE REVIEWS

5.1  Customer agrees to provide Fine Pitch Purchase Orders or Material Releases
     four (4) weeks in advance of delivery (or as otherwise provided by an
     addendum) and shall become effective upon acceptance of the order by Fine
     Pitch which is more clearly defined in the Addendum.

5.2  Fine Pitch and Customer will meet every three (3) months during the term of
     this Agreement to review pricing and determine whether any price increase
     or decrease is required. Any price change shall apply only to purchase
     orders or material releases issued after the effective date of such price
     change. However, the Customer Focus Team will meet on a more frequent basis
     (monthly) to discuss operational and quality related issues.

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Standard Manufacturing Agreement
Fine Pitch Confidential

6.0  DELIVERY

6.1  Fine Pitch will target 100% on time delivery, defined as shipment of
     Product by Fine Pitch within a window of three (3) days early and zero days
     late (of acknowledged date). This section, as appropriate, may be modified
     by an addendum to reflect specific Product requirements.

6.2  All shipments are EXW: Fine Pitch Facility, Cypress, CA (Incoterms 2000).

6.3  Fine Pitch and Customer shall agree to delivery schedule flexibility
     requirements specific to the Product as documented in the addenda.

6.4  Upon learning of any potential delivery delays, Fine Pitch will notify
     Customer as to the cause and extent of such delay.

6.5  If Fine Pitch fails to make deliveries at the specified time and such
     failure is caused by Fine Pitch, Fine Pitch will, at no additional cost to
     Customer, employ accelerated measures such as material expediting fees,
     premium transportation costs, or labor overtime required to meet the
     specified delivery schedule or minimize the lateness of deliveries.

6.6  Unless otherwise agreed to and stated in an Attachment to this Agreement,
     Fine Pitch will not undertake export activities on behalf of Customer.

7.0  PAYMENT TERMS

7.1  Fine Pitch and Customer agree to payment terms of Net 30 days from the date
     of invoice.

7.2  Currency will be in U.S. Dollars unless specifically negotiated and
     reflected in the addenda.

8.0  QUALITY

8.1  Fine Pitch shall manufacture the Products in accordance with the quality
     requirements, standards and expectations as mutually agreed to and
     reflected in the addenda.

8.2  Customer will have a right to conduct source inspection based on reasonable
     notice and reasonable timelines.

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Standard Manufacturing Agreement
Fine Pitch Confidential

9.0  ENGINEERING CHANGES

9.1  Customer may, upon advance written notice to Fine Pitch, submit engineering
     changes for incorporation into the Product. It is important that this
     notification include documentation of the change to effectively support an
     investigation of the impact of the engineering change. Fine Pitch will make
     a reasonable effort to review the engineering change and report to Customer
     within one (1) week. If any such change affects the price, delivery, or
     quality performance of said Product, an equitable adjustment will be
     negotiated between Fine Pitch and Customer prior to implementation of the
     change.

9.2  Fine Pitch agrees not to undertake significant process changes, design
     changes, or process step discontinuance affecting electrical performance
     and/or mechanical form and fit without prior written notification and
     concurrence of the Customer.

10.0 INVENTORY MANAGEMENT

10.1 Fine Pitch agrees to purchase components according to the Customer approved
     vendor list (AVL) including any sourcing plans as provided by the addenda.

10.2 All customer tooling/equipment furnished to Fine Pitch or paid for by
     Customer in connection with this Agreement shall:

     (a)  Be clearly marked and remain the personal property of Customer.

     (b)  Be kept free of liens and encumbrances.

     (c)  Unless otherwise agreed, Customer is responsible for the general
          maintenance of Customer tooling/equipment.

     Fine Pitch shall hold Customer property at its own risk and shall not
     modify the property without the written permission of Customer. Upon
     Customer's request, Fine Pitch shall redeliver the property to Customer in
     the same condition as originally received by Fine Pitch with the exception
     of reasonable wear and tear. In the event the property is lost, damaged or
     destroyed, Fine Pitch's liability for the property is limited to the book
     value of the property. During possession of the property,if required, Fine
     Pitch will maintain calibration on the property on a regularly scheduled
     basis.

11.0 CONFIDENTIAL INFORMATION

11.1 Fine Pitch and Customer agree to execute, as part of this Agreement, a
     Nondisclosure Agreement for the reciprocal protection of confidential
     information that will be included in the addendum.

11.2 Subject to the terms of the Nondisclosure Agreement and the proprietary
     rights of the parties, Fine Pitch and Customer agree to exchange, at least
     semi-annually, relevant process development information and business plans
     to include market trends, process technologies, product requirements, new
     product developments, available capacity and other information to support
     technology advancements by both Fine Pitch and Customer.

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Standard Manufacturing Agreement
Fine Pitch Confidential

12.0 WARRANTY

12.1 Fine Pitch warrants for a period of one (1) year from the date of
     manufacture of the Product, that (i) the Product will conform to the
     specifications applicable to such Product at the time of its manufacture,
     which are furnished in writing by Customer and accepted by Fine Pitch; (ii)
     such Product will be of good material (supplied by Fine Pitch) and
     workmanship and free from defects for which Fine Pitch is responsible in
     the manufacture; (iii) such Product will be free and clear of all liens and
     encumbrances and that Fine Pitch will convey good and marketable title to
     such Product. In the event that any Product manufactured shall not be in
     conformity with the foregoing warranties, Fine Pitch shall, at Fine Pitch's
     option, either credit Customer for any such nonconformity (not to exceed
     the purchase price paid by Customer for such Product), or, at Fine Pitch's
     expense, replace, repair or correct such Product. The foregoing constitutes
     Customer's sole remedies against Fine Pitch for breach of warranty claims.

12.2 Fine Pitch shall have no responsibility or obligation to Customer under
     warranty claims with respect to Products that have been subjected to abuse,
     misuse, accident, alteration, neglect or unauthorized repair.

     THE WARRANTIES CONTAINED IN THIS SECTION ARE IN LIEU OF, AND FINE PITCH
     EXPRESSLY DISCLAIMS AND CUSTOMER WAIVES ALL OTHER REPRESENTATIONS AND
     WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR ARISING BY COURSE OF DEALING OR
     PERFORMANCE, CUSTOM, USAGE IN THE TRADE OR OTHERWISE, INCLUDING WITHOUT
     LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE AND FITNESS FOR
     A PARTICULAR USE.

13.0 TERMINATION

13.1 If either party fails to meet any one or more of the terms and conditions
     as stated in either this Agreement or the addenda, Fine Pitch and Customer
     agree to negotiate in good faith to resolve such default. If the defaulting
     party fails to cure such default or submit an acceptable written plan to
     resolve such default within thirty (30) days following notice of default,
     the nondefaulting party shall have the right to terminate this Agreement by
     furnishing the defaulting party with thirty (30) days written notice of
     termination.

13.2 This Agreement shall immediately terminate should either party; (i) become
     insolvent; (ii) enter into or file a petition, arraignment or proceeding
     seeking an order for relief under the bankruptcy laws of its respective
     jurisdiction; (iii) enter into a receivership of any of its assets or; (iv)
     enter into a dissolution of liquidation of its assets or an assignment for
     the benefit of its creditors.

13.3 Either Fine Pitch or Customer may terminate this Agreement without cause by
     giving One hundred twenty (120) days advance written notice to the other
     party.

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Standard Manufacturing Agreement
Fine Pitch Confidential

14.0 DISPUTE RESOLUTION

14.1 In the spirit of continued cooperation, the parties intend to and hereby
     establish the following dispute resolution procedure to be utilized in the
     unlikely event any controversy should arise out of or concerning the
     performance of this Agreement.

14.2 It is the intent of the parties that any dispute be resolved informally and
     promptly through good faith negotiation between Fine Pitch and Customer.
     Either party may initiate negotiation proceedings by written notice to the
     other party setting forth the particulars of the dispute. The parties agree
     to meet in good faith to jointly define the scope and a method to remedy
     the dispute. If these proceedings are not productive of a resolution, then
     senior management of Fine Pitch and Customer are authorized to and will
     meet personally to confer in a bona fide attempt to resolve the matter.

14.3 Should any disputes remain existent between the parties after completion of
     the two-step resolution process set forth above, then the parties shall
     promptly submit any dispute to mediation with an independent mediator. In
     the event mediation is not successful in resolving the dispute, the parties
     agree to submit the dispute to binding arbitration as provided by their
     respective jurisdiction as more clearly defined in the addendum.

15.0 LIMITATION OF LIABILITY

     IN NO EVENT, WHETHER AS A RESULT OF BREACH OF CONTRACT, WARRANTY, OR TORT
     (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCT LIABILITY, OR OTHERWISE,
     SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL,
     CONSEQUENTIAL, EXEMPLARY DAMAGES OF ANY KIND WHETHER OR NOT EITHER PARTY
     WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

16.0 PATENT, COPYRIGHT AND TRADEMARK INDEMNITY

     Each party (the "indemnifying party") shall defend, indemnify, and hold
     harmless the other party from any claims by a third party of infringement
     of intellectual properties resulting from the acts of the indemnifying
     party pursuant to this Agreement, provided that the other party (i) gives
     the indemnifying party prompt notice of any such claims, (ii) renders
     reasonable assistance to the indemnifying party thereon, and (iii) permits
     the indemnifying party to direct the defense of the settlement of such
     claims.

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Standard Manufacturing Agreement
Fine Pitch Confidential

17.0 GENERAL

17.1 Each party to this Agreement will maintain insurance to protect itself from
     claims (i) by the party's employees, agents and subcontractors under
     Worker's Compensation and Disability Acts, (ii) for damages because of
     injury to or destruction of tangible property resulting out of any
     negligent act, omission or Willful misconduct of the party or the party's
     employees or subcontractors, (iii) for damages because of bodily injury,
     sickness, disease or death of its employees or any other person arising out
     of any negligent act, omission, or willful misconduct of the party or the
     party's employees, agents or subcontractors.

17.2 Neither party shall delegate, assign or transfer its rights or obligations
     under this Agreement, whether in whole or part, without the written consent
     of the other party. Such delegation, assignment or transfer shall not be
     unreasonably withheld. Failure by either party to enforce any provision of
     this Agreement shall not be deemed to be a continuing waiver or a waiver of
     any other default or other term and condition.

17.3 Neither party shall be liable for any failure or delay in its performance
     under this Agreement due to acts of God, acts of civil or military
     authority, fires, floods, earthquakes, riots, wars or any other cause
     beyond the reasonable control of the delayed party provided that the
     delayed party: (i) gives the other party written notice of such cause
     within fifteen (15) days of the discovery of the event; and (ii) uses its
     reasonable efforts to remedy such delay in its performance.

17.4 This Agreement shall be governed by, and construed in accordance with the
     laws of the State of California, excluding its conflict of laws provisions.
     In any action to enforce this Agreement, the prevailing party shall be
     awarded all court costs and reasonable attorney fees incurred.

17.5 Fine Pitch and Customer will mutually agree on a timeline and language for
     a press release announcing their relationship. Any other publicity will
     subject to mutual agreement.

17.6 Additional General terms and conditions are set forth in the addendum.

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IN WITNESS WHEREOF, the parties have executed this Agreement and it is effective
as of the latest date of execution set forth below.

Fine Pitch Technology, a subsidiary of       Accelerated Networks, Inc.
Solectron Corporation

By: /s/ Jeff Chiang                          By: /s/ Ronald A. Hughes
    -------------------------------              -------------------------------
Name:   Jeff Chiang                          Name:   Ronald A. Hughes

Title: General Manager                       Title: Director of Contracts

Date: 4/16/01                                Date: 4/10/01

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                  ADDENDUM TO STANDARD MANUFACTURING AGREEMENT

This Addendum (hereinafter "Addendum") is effective as of the latest date of
execution identified herein and is incorporated by reference into the Standard
Manufacturing Agreement (Agreement) executed between Accelerated Networks, Inc.
(ACCELERATED) and Fine Pitch Technology, A Solectron Subsidiary, (FINE PITCH)
dated on the latest date of execution, collectively "the parties".

The parties desire to clarify Product specific requirements, manufacturing and
quality requirements and other specific business terms and conditions.

In consideration of the foregoing and the agreements contained herein,
ACCELERATED and FINE PITCH hereby agree as follows:

1.0  Definitions

     1.1  "Approved Vendor List shall mean the list of vendors to be used to
          supply inventory list of the Bills of Materials included with each
          Specification.

     1.2  "Bills of Materials (BOM)" shall mean a listing or reference for the
          Components and Materials included in or required for the
          manufacture/assembly of the Products based on the Specifications.

     1.3  "Components" shall mean the parts, materials and supplies included in
          or required for each Product, as stipulated in the Bills of Materials.
          Components may be supplied by ACCELERATED as defined herein, if so
          indicated in the Bills of Materials.

     1.4  "Days" shall mean calendar days unless other wise specified, provided
          however if a deadline falls on a Saturday, Sunday or a United States
          Government recognized holiday, it shall be extended to the following
          regular day.

     1.5  "Delivery Date" shall mean a date for which delivery of a Product is
          requested in a ACCELERATED Purchase Order or is otherwise mutually
          established by the Parties.

     1.6  "Downside" shall mean the percentage decrease in the quantity of
          Products that ACCELERATED may purchase less than the quantities in any
          Purchase Order.

     1.7  "Upside" shall mean the percentage increase in the quantity of
          Products that ACCELERATED may purchase above the quantities in any
          Purchase Order.

     1.8  "Engineering Change Order" (ECO) shall mean the document that details
          a change in the Specifications and/or design of a Product.

     1.9  "Excess Inventory" shall mean those components listed in the
          Specifications which are in FINE PITCH or its subcontractors
          possession, whose quantity exceed ACCELERATED Purchase Order
          requirements, at a referenced date and/or termination.

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     1.10 "Intellectual Property " shall mean all rights held by either Party in
          its Products and/or Confidential Information, including, but not
          limited to each Party's patent rights, copyrights, trade secret
          rights, mask work rights and other intellectual property and
          proprietary rights, restrictions on the manufacture, assembly or
          distribution of the Products or the subsequent use, sale or repair of
          the Products as purchased by ACCELERATED from FINE PITCH.

     1.11 "Inventory" shall mean raw materials, supplies and componenets that
          comprise Product pursuant to this Agreement.

     1.12 Long Lead Time Components and Materials" shall mean the Inventory used
          to manufacture the Products that require a longer time to procure than
          the time from Purchase Order acceptance to production start
          time."Minimum Order Quantity Components and Materials" shall mean the
          Inventory that is procurable only in minimum quantities that exceed
          that quantities required for ACCELERATED Purchase Orders.

     1.13 "Non-Cancelable Non-Returnable (NCNR) Components and Materials shall
          mean (i) Inventory listed on the Bills of Materials that is procured
          from suppliers that will not accept returns or cancellations once such
          Inventory is ordered and built or (ii) Inventory that may not be
          returned because the right of return has expired.

     1.14 "Product" shall mean the ACCELERATED part number or assembly
          identification specified in each Purchase Order for Components,
          Printed Circuit Boards (PCBs) assemblies and/or Box Assemblies issued
          under this Agreement and as described in the Specifications. There can
          be multiple versions of a Product, based on differences provided for
          the Bills of Materials.

     1.15 "Program Manager" shall mean the Acceptable FINE PITCH resource and
          the ACCELERATED resource that will manage the over-all effort defined
          in the Agreement.

     1.16 "Program Reviews" shall mean the scheduled review meetings (monthly
          and/or quarterly) to review the over-all Program status. ACCELERATED
          and FINE PITCH shall meet to develop the frequency, agenda and
          contents of these meetings.

     1.17 "Purchase Order" shall mean the ACCELERATED written authorization
          submitted to FINE PITCH and accepted by FINE PITCH as identified
          herein stipulating the product(s), Engineering Change and/or Revision
          level, quantity, pricing, and requested delivery date(s). The terms of
          this Agreement shall control over printed terms on any Purchase Order,
          acknowledgement, confirmation or invoice.

     1.18 "Specifications" shall mean the written specifications provided by
          ACCELERATED for the manufacture and testing of the Product including,
          without limitation, the current revision number, Approved Vendor List
          (AVL), Bills of Material (BOMs), manufacturing procedures, schematics,
          testing procedures, drawings and documentation.

     1.19 "Statement of Work" shall mean a document submitted by Accelerated and
          agreed to by FINE PITCH that defines a particular product to be
          assembled, manufactured or modified and references a product
          specification or any other requirement or change in scope of work.
          Such a document as defined herein will be submitted with each Purchase
          Order and will be subject to the terms and conditions of the Agreement
          and this Addendum.

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     1.20 "Exhibits" shall include the following;

          Exhibit A   Product Price List
          Exhibit B   Minimum Order Quantity Components and Materials
          Exhibit C   Long Lead Time Components and Materials
          Exhibit D   Non-Cancelable Non-Returnable (NCNR) Components and
                      Materials
          Exhibit E   List of Products and Revision Level; and Prices for Rework
          Exhibit F   Consigned Tooling and Equipment
          Exhibit G   Workmanship Standards

The Exhibits will be added to the Addendum subsequent to execution of the
Agreement and the Addendum. The parties agree these Exhibits will be completed,
signed and dated by both parties within sixty (60) days of the latest date of
execution of the Agreement. Each Exhibit will be effective and incorporated by
reference into the Agreement on the latest date of execution of each Exhibit.

2.0  Manufacture of Products. During the term of this Agreement, FINE PITCH
     shall manufacture and test the Products in accordance with the
     Specifications and as requested pursuant to ACCELERATED purchase orders ,
     including any Statement of Work, if applicable, and maintain manufacturing
     records in accordance with reasonable industry standards. All inventory and
     equipment required in connection with such manufacture and testing other
     than what is being supplied by Accelerated will be acquired or supplied by
     FINE PITCH pursuant to the Specifications. Test ICT fixtures and functional
     test equipment will be supplied by Accelerated.

     2.1  Program Management. Each party shall appoint a technical coordinator
          to maintain technical liaison with the other party in connection with
          the initial coordination and implementation of the manufacture of the
          Products as well as ongoing support issues thereafter. This
          coordination will be with regard to all technical aspects of the
          Program but not limited to the release of the manufacturing
          specifications, design or engineering of the Products, pending ECOs
          and release dates, and the status of the manufacturing program. The
          parties shall agree in writing as to the frequency (monthly or
          quarterly) of these business performance reviews including but not
          limited to documentation, quality, delivery, field quality
          communications, responsiveness, costs, payments and other related
          issues. The Program Managers will coordinate these meetings.

     2.2  Quality Requirements. FINE PITCH agrees that the manufacture of the
          Products under terms of this Agreement will be in accordance with
          Workmanship Standards as detailed in Exhibit G. FINE PITCH agrees to
          maintain and be responsible for ISO 9002, Revision 2000 certification
          effective June 2001. Accelerated and FINE PITCH shall mutually agree
          in writing, within ninety (90) days after the consummation of this
          Agreement, on development of the minimum quality performance
          measurements and quarterly reports such as supply yields for all
          processes, process capability data, on-time delivery, performance to
          standard lead times, RMA's processed in the standard time, audit
          failure rates and action steps necessary in the event these measures
          are not met.

     2.3  Product Training. ACCELERATED and FINE PITCH will jointly develop a
          program specifying which processes, the number of personnel and where
          the personnel of FINE PITCH are to be trained on the Products. FINE
          PITCH, during the term of this agreement including any extensions,
          will maintain a sufficient and trained staff of personnel to
          adequately support all of the requirements set forth in this
          agreement.

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3.0  Consigned Materials. ACCELERATED may supply consigned materials to FINE
     PITCH.ACCELERATED agrees that all consigned materials, including
     Components, shall be delivered to FINE PITCH in sufficient time and in
     sufficient quantities, taking into account mutually agreed to Attrition
     levels by the parties, to allow FINE PITCH to meet scheduled delivey dates
     for the applicable Products. ACCELERATED agrees that all consigned
     materials shall be in good condition, meet Products Specifications, be
     packaged in a readily usable format, and be free of any material defects or
     deficiencies. ACCELERATED shall retain all rights, title and interest in
     ACCELERATED Components delivered herein, and ACCELERATED Components shall
     be used, without modification, unless directed in writing by ACCELERATED
     and used only in filling purchase orders from ACCELERATED. FINE PITCH shall
     bear all risk of damage or loss for ACCELERATED Components until such
     ACCELERATED Components are returned to ACCELERATED, or otherwise leaves the
     care and custody of FINE PITCH at ACCELERATED'S request. FINE PITCH shall
     keep the Components segregated for tracking and inventory management
     purposes and shall use the same degree of care it uses in managing and
     protecting it's own inventory. FINE PITCH shall not be obligated to
     purchase any excess consigned materials.

4.0  License Grant. Subject to the terms and conditions of this Agreement,
     ACCELERATED grants FINE PITCH a non-transferable, non-exclusive,
     royalty-free license with the right to grant sublicenses, as set forth in
     Section 5.0, under ACCELERATED'S Intellectual Property Rights to use the
     Specifications and any ACCELERATED inventory solely to manufacture the
     Products and otherwise perform its obligations hereunder.

5.0  Subcontractor. FINE PITCH may grant sublicenses under the license granted
     in Section 4.0; provided however, (i) any sublicense shall be subject to
     the prior written approval of ACCELERATED, which approval shall not be
     unreasonably withheld, and (ii) such sublicense shall bind such
     subcontractor to the same terms and conditions of this Agreement.

6.0  Packing and Shipping. FINE PITCH shall package and pack Products to a best
     commercial practice that will provide reasonable protection against damage
     (including static) during shipment (ground, air or ship), and handling.
     From time to time Accelerated will require FINE PITCH to deliver product
     directly to Acclerated customers. FINE PITCH and Accelerated will mutually
     develop and agree on implementing such a requirement which may include
     Shipping and Receiving Transaction Bar Code Label Specifications.

7.0  Finish Goods Inventory. ACCELERATED and FINE PITCH to discuss at a later
     date a mutually agreeable process and procedure where ACCELERATED will
     submit Purchase Orders (i.e. over and above binding Purchase Orders and
     forecasts as set forth in paragraph 15.0) to FINE PITCH to manufacture
     completed Product to be held at FINE PITCH. The parties agree that they
     intend to add this process to the Agreement. The parties will enter into
     good faith negotiations to complete this process and add finish goods
     inventory to this Agreement within 180 days of the date of execution.

8.0  Acceptance. All Products supplied by FINE PITCH under this Agreement shall
     conform to the Specifications. Notwithstanding any prior inspection or
     payment by ACCELERATED, ACCELERATED may reject any portion of any shipment
     of Products which is not conforming to the Specifications as determined by
     ACCELERATED following quality control tests and inspection or as otherwise
     found to be defective including defects in workmanship. Any Products so
     returned to FINE PITCH shall be repaired or replaced, at FINE PITCH' option
     and expense, within ten (10) business days of receipt by FINE PITCH of the
     rejected Product; provided that (i) ACCELERATED obtains a Return Material
     Authorization ("RMA") from FINE PITCH prior to returning the Products and
     FINE PITCH shall provide ACCELERATED with a RMA promptly upon request, (ii)
     the Products are returned within sixty (60) calendar days of the date the
     Product was received by ACCELERATED from FINE PITCH, and (iii) the failure
     analysis conducted by ACCELERATED shall accompany the Product.

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9.0  Right of Return. In the event of a epidemic failure cause by a material
     defect in workmanship, manufacture of the Product, which is exhibited in 5%
     or more of the field or other failures that have been shipped within the
     previous six months of discovery of the defect, FINE PITCH and Accelerated
     agrees to jointly develop and support a program to identify and resolve the
     failure defect. Any cost implications will be included and resolved as part
     of the program at no cost to Accelerated, unless design induced failures.

10.0 Limitation on Liability. FINE PITCH shall have no liability or
     responsibility for any costs, losses or damages due to defective or failed
     product claims to the extent that the claims result from (FINE PITCH'S
     compliance with ACCELERATED supplied Specifications and/or manufacturing
     process, (b) inadequate operating environment, accident, disaster, neglect,
     abuse or misuse, (c) design flaws or design parameters exceeding or
     violating component specifications for components either supplied or
     directed to be purchased by ACCELERATED, (d) external or environmental
     factors after shipment from FINE PITCH, (e) follow-up handling, processing,
     or manufacturing of products after shipment from FINE PITCH, (f) repair,
     attempted repair, modification or alteration of the product by a party
     other then FINE PITCH or ACCELERATED, (g) electrostatic discharge damage
     (not caused by FINE PITCH), (h) defects related to components provided by
     third party suppliers selected by ACCELERATED, which defects FINE PITCH
     could not have reasonably detect, prevent or control, and (i) products for
     which ACCELERATED has not provided functional or other tests to adequately
     diagnose failures."

11.0 Inspection by ACCELERATED. Upon request by ACCELERATED, from time to time,
     and with at least one (1) business day notice and during normal business
     hours, FINE PITCH will grant access to its manufacturing facilities and
     records (excluding financial records not directly related to this
     Agreement) to ACCELERATED inspectors. FINE PITCH shall allow such
     inspectors to inspect the manufacturing and quality control, testing
     operations, compliance procedures and records relating to the Products
     (excluding financial records not directly related to this Agreement), as
     well as inventory levels to ensure that FINE PITCH can meet ACCELERATED'S
     future orders for Products, and is otherwise satisfying its obligations
     under this Agreement. FINE PITCH shall promptly implement corrective action
     to remedy deficiencies identified by ACCELERATED during such inspections or
     in order to comply with the Specification.

12.0 Engineering Change Order (ECO). An ECO is required when the form, fit or
     function of the design of the Product and/or Specificiations are affected.
     FINE PITCH agrees to promptly implement, at ACCELERATED'S expense, any
     change in the Specifications or the design of a Product reasonably
     requested by ACCELERATED pursuant to an Engineering Change Order ("'ECO").
     FINE PITCH shall provide a written response in the form of an "Engineering
     Change Analysis" form to ACCELERATED if such changes affect the per-unit
     price and/or delivery of a Product, within three (3) business days.
     ACCELERATED shall respond with a written acceptance or rejection of the
     FINE PITCH "Engineering Change Analysis" form within three (3) business
     days. FINE PITCH shall not implement the change to the design or
     Specifications of any Product or materials, equipment, manufacturing and
     quality assurance procedures, methods and techniques used to produce a
     Product, without ACCELERATED'S prior written approval in the form of a
     Purchase Order. In the event that the implementatoin and acceptance of an
     ECO creates obsolete inventory and/or restocking fees, ACCELERATED will
     issue FINE PITCH a Purchase Order for the obsolete inventory and agrees to
     pay restocking fees within thirty days of the implementation of the ECO.
     FINE PITCH will use its best effort to return the obsolete inventory from
     an ECO to the vendor to mitigate the cost prior to payment of any
     restocking fees which will be subject to mutual agreement by the parties.

                                       5

<PAGE>   14

13.0 Out of Warranty Repairs. The parties agree to enter into good faith
     negotiations for the purpose of FINE PITCH becoming an authorized repair
     facility for out of warranty repairs of Products and components. The
     Parties agree to negotiate in good faith with the end goal of having an
     amendment or other agreement executed within ninety (90) days of execution
     of this Agreement. Price for this repair shall be as set forth in Exhibit E
     of this Agreement, which is subject to change by mutual agreement of the
     Parties in writing.

14.0 Price. Price for the Products shall be as set forth in Exhibit A of this
     Addendum, which is subject to change by mutual agreement in writing of the
     Parties hereto.

15.0 New Products. The Parties acknowledge, and agree that ACCELERATED may from
     time to time, request in writing the manufacture and testing of prototypes,
     pre-production units, test units or other similar products ("Odd Units").
     FINE PITCH makes no representation or warranty as to Odd Units identified
     as such by ACCELERATED and assumes no liability for or obligation related
     to the yield, performance, accuracy, specifications, defects of or due to
     (i) fixtures, designs or instructions produced or supplied by ACCELERATED,
     (ii) ACCELERATED Components, (iii) components or other equipment from any
     vendor on the Approved Vendor List or (iv) printed circuit boards or any
     other ACCELERATED designated components that are manufactured pursuant to
     ACCELERATED's specifications.

16.0 Purchase Orders and Product Forecast. During the term of this Agreement,
     ACCELERATED shall provide FINE PITCH with Purchase Orders for the Products
     to cover three (3) months of ACCELERATED'S requirements based on a twelve
     (12) month rolling forecast. ACCELERATED shall issue each succeeding
     month's Purchase Order by the tenth (10th) day of each month. Each Purchase
     Order shall be as specified in Section 1.19. Notwithstanding the foregoing,
     a Purchase Order shall be deemed accepted by FINE PITCH, including any
     Specifications or other identifications (including any ECO's) unless it is
     rejected in writing within three (3) business days of submission by
     ACCELERATED. The terms and conditions of the Agreement and this Addendum
     will control over any terms contained in any ACCELERATED Purchase Order,
     written acceptance or acknowledgment by FINE PITCH, invoice or any other
     document that is not clearly an amendment to this Agreement signed by both
     Parties.

17.0 Schedule Changes. ACCELERATED may not cancel any Purchase Orders or
     re-schedule the quantity of Products and/or Delivery Date within thirty
     (30) calendar days of the scheduled Delivery Date. ACCELERATED may delay
     all or any portions of the scheduled Product delivery upon written
     notification to FINE PITCH on the following schedule:

     17.1 From thirty one (31) to sixty (60) calendar days prior to the
          scheduled Delivery Date, ACCELERATED may reschedule out not more than
          fifty percent (50%) of the of the quantity of Product (per deliverable
          part number) to be shipped up to sixty (60) calendar days of the
          scheduled Delivery Date.

     17.2 From sixty-one (61) to ninety (90) calendar days prior to the
          scheduled Delivery Date, ACCELERATED may reschedule out up to one
          hundred percent (100%) of the quantity of Product to be shipped up to
          ninety (90) calendar days of the scheduled Delivery Date.

                                       6

<PAGE>   15

     17.3 In the event that ACCELERATED desires to increase or decreases in
          quantities (Upside or Downside) of Products scheduled for delivery;
          FINE PITCH will use its commercially reasonable best efforts to
          accommodate the desired increases or decreases and will be determined
          on a case-by-case basis. Costs incurred by such increases, including,
          but not limited to Purchase Price Variances and expedited component
          deliveries will be presented by FINE PITCH to ACCELERATED on a case by
          case basis and the Parties will mutually agree on such costs.

18.0 Cancellation. ACCELERATED may cancel any order, thirty (30) calendar days
     or more from the scheduled Delivery Date upon written notification to FINE
     PITCH and on the following schedule:

     18.1 From thirty (30) to sixty (60) calendar days from the scheduled
          Delivery Date, FINE PITCH shall use its commercially reasonable best
          efforts to (i) return to the suppliers of the inventory or otherwise
          utilize any such inventory, or (ii) cancel FINE PITCH' order for such
          inventory. ACCELERATED is not obligated to pay FINE PITCH for on-order
          inventories not yet received and can be cancelled or returned at no
          cost to Fine Pitch... In the event FINE PITCH cannot return inventory
          to the suppliers, or cannot otherwise utilize or cancel future orders,
          ACCELERATED shall pay (i) FINE PITCH' cost of all inventories that are
          in FINE PITCH' or its subcontractor's possession as of the
          cancellation date that have been procured for the canceled order, (ii)
          FINE PITCH' cost of all the inventories used in the manufacture or
          assembly of the Products that are in FINE PITCH' or subcontractor's
          possession or on order, and (iii) supplier's restocking fees up to 10%
          of the cost of the inventories, and (iv) take title to those Products
          and inventories. FINE PITCH shall provide ACCELERATED with
          documentation to support all such charges. ACCELERATED authorizes FINE
          PITCH to bill any such costs within sixty (60) calendar days of
          ACCELERATED'S notification of cancellation. Inventories that become
          unusable because of a ACCELERATED ECO, shall be treated in a like
          manner as inventories that become unusable because of cancellation, as
          noted above.

     18.2 ACCELERATED may cancel delivery of Products with written notice at
          least sixty-one (61) calendar days prior to the scheduled Delivery
          Date without cost or penalty, except for inventories on the Minimum
          Order Quantity List, Non Cancelable-Non Returnable List, and Long Lead
          Time Lists, which shall be treated in a like manner as inventories
          that become unusable because of cancellation, as noted in Section
          24.0. FINE PITCH shall provide ACCELERATED with documentation to
          support all such charges.

19.0 Minimum Order Quantity Components and Materials. FINE PITCH and ACCELERATED
     shall agree upon and maintain an approved listing of Minimum Order Quantity
     Components and Materials in the form of Exhibit B, as initially established
     and may be modified in writing from time to time by the Parties in
     accordance with this Agreement. The Parties shall review this listing, at
     least, on a quarterly basis.

20.0 Long Lead Time Components and Materials. FINE PITCH and ACCELERATED shall
     agree upon and maintain an approved listing of Long Lead-Time Components
     and Materials in the form of Exhibit C, as initially established and may be
     modified in writing from time to time by the Parties in accordance with
     this Agreement. The Parties shall review this listing, at least, on a
     quarterly basis.

                                       7

<PAGE>   16

21.0 Non-Cancelable Non-Returnable Components and Materials. The parties shall
     mutually agree upon and maintain an approved listing of such materials in
     the form of Exhibit D, as intitially established and may be modified in
     writing from time to time by the parties in accordance with this Agreement.
     The parties shall review this listing on at leat a quarterly basis.

22.0 Excess Inventory (Assemblies and Components), FINE PITCH shall identify
     Excess Inventory on a monthly basis using the MRP system INFIMACS II Excess
     Inventory Dollar Report, or using a BAAN equivalent report. FINE PITCH
     shall provide each such report to ACCELERATED. FINE PITCH shall charge a
     one percent (1.0 %) monthly fee on the on-hand excess inventory which
     inventory will be mutually agreed to by the parties at the end of each
     quarter. Payment of such monthly fee will be prospective based on the
     previous quarters reconciliation. Upon termination of this Agreement,
     ACCELERATED shall pay (i) FINE PITCH' documented cost of Products (that
     should be a standard part of the cost) and (ii) supplier's restocking fee
     up to ten percent (10%) of the cost of Products and (iii) take title to the
     Excess Inventory that cannot be returned or used for other products
     manufactured by FINE PITCH. Excess Inventory covers Inventory purchased for
     ACCELERATED Purchase Orders issued to FINE PITCH and for purchases to cover
     forecasts.

23.0 ACCELERATED Property. Any tooling and/or equipment supplied by ACCELERATED
     (ACCELERATED's Property) or developed or procured by FINE PITCH at
     ACCELERATED expense, shall remain the property of ACCELERATED and shall (i)
     be clearly marked or tagged as the Property of ACCELERATED, (ii) be and
     remain personal property, and not become a fixture to real property, (iii)
     be subject to inspection by ACCELERATED at any time, (iv) be used only in
     filling purchase orders from ACCELERATED, (v) be kept free by FINE PITCH of
     liens and encumbrances, and (vi) not be modified in any manner by FINE
     PITCH without the prior written approval of ACCELERATED and be maintained
     by FINE PITCH in accordance with ACCELERATED'S Maintenance Procedures
     including but not limited to periodic calibration. ACCELERATED shall retain
     all rights, title and interest in the ACCELERATED Property, and FINE PITCH
     agrees to treat and maintain the ACCELERATED Property with the same degree
     of care as FINE PITCH uses with respect to its own valuable equipment- FINE
     PITCH shall bear all risk of loss or damage to ACCELERATED Property until
     it is returned to ACCELERATED. Upon ACCELERATED'S request, FINE PITCH shall
     deliver all ACCELERATED Property to ACCELERATED in good condition, normal
     wear and tear excepted, without cost to ACCELERATED (exclusive of freight
     costs); ACCELERATED shall determine the manner and procedure for returning
     the ACCELERATED Property, and shall pay the corresponding freight costs.
     FINE PITCH waives any legal or equitable right it may have to withhold
     ACCELERATED Property, and FINE PITCH agrees to execute all documents, or
     instruments evidencing ACCELERATED'S ownership of the ACCELERATED Property
     as ACCELERATED may from time to time request. Such ACCELERATED owned
     tooling and equipment are listed on Exhibit F, which shall be revised as
     required.

24.0 Effect of Termination. Termination of this Agreement shall not affect the
     obligations of either Party that exist pursuant to the Agreement relative
     to payment, confidentiality, licensing and warranties. Remedies for all
     breaches hereunder shall also survive termination as of date of
     termination. Upon termination of this Agreement FINE PITCH shall continue
     to fulfill, subject to the terms of the Agreement all Purchase Orders and
     ECO's accepted by it prior to the effective date of termination.

25.0 Relationship of Parties. FINE PITCH and its subcontractor(s) shall be
     deemed to be independent contractors of ACCELERATED, and this Agreement
     does not create a general agency, joint venture, partnership, employment
     relationship, or franchise between FINE PITCH and ACCELERATED. Each Party
     assumes full responsibility for the actions and negligence of its
     employees, agents or other personnel assigned by it to perform work
     pursuant to this Agreement, regardless of their place of work, and shall be
     solely responsible for payment of salary, including withholding of federal
     and state income taxes, social security, workers' compensation and the
     like.

                                       8

<PAGE>   17

26.0 Ownership. As between the Parties, ACCELERATED retains and shall
     exclusively own all title to, and except as expressly and unambiguously
     licensed herein, all rights (including without limitation, all Intellectual
     Property Rights) and interest in the Products, the ACCELERATED Components,
     ACCELERATED Property, and Specifications and all modifications,
     improvements derivative works (by whomever produced) thereof.

27.0 Dispute Resolution.

     27.1 In the spirit of continued cooperation, the parties intend to and
          hereby establish the following dispute resolution procedure to be
          utilized in the unlikely event any controversy should arise out of or
          concerning the performance of this Agreement.

     27.2 It is the intent of the parties that any dispute be resolved
          informally and promptly through good faith negotiation between
          Solectron and Customer. Either party may initiate negotiation
          proceedings by written notice to the other party setting forth the
          particulars of the dispute. The parties agree to meet in good faith to
          jointly define the scope and a method to remedy the dispute. If these
          proceedings are not productive of a resolution, then either party may
          choose to escalate the problem to senior management.

     27.3 Should any disputes remain existent between the parties after
          completion of the resolution process set forth above, or in any event
          more than twenty (20) days have passed following the initial notice of
          dispute from a party, then either party may, by written notice to the
          other party, request that the matter be submitted for non-binding
          mediation with an independent mediator agreed to by the parties. The
          mediator will be chosen by the parties within fifteen (15) days after
          written notice by either party demanding mediation. Neither party
          shall unreasonably withhold consent to the selection of a mediator.
          Each party will bear its own attorney's fees and other costs and
          expenses of the mediation and each party will equally share the cost
          of the mediation, including the mediator's fees. If the matter is not
          resolved by mediation within forty-five (45) days of the initial
          request for mediation, the matter then may be submitted to the
          appropriate court of law for final determination

     27.4 Attorney's Fees. The prevailing Party in any legal action or
          proceeding to enforce this Agreement after good faith completion of
          the process identified in paragraphs 27.1, 27.2 and 27.3 shall be
          entitled to recover from the unsuccessful Party its reasonable
          attorneys' fees and all other costs incurred in connection with such
          proceeding or the enforcement of the Agreement.

28.0 Confidentiality

     28.1 Confidential Information. Information of either Party including, but
          not limited to, trade secrets, know-how, inventions (whether
          patentable or not), ideas, improvements, materials, data,
          specifications, drawings, processes, results, and formulae and all
          other business, technical and financial information ("Confidential
          Information") shall be defined as confidential information. In
          particular, but without limitation, the Specifications and the Product
          components delivered to FINE PITCH by ACCELERATED shall be
          Confidential Information of ACCELERATED. Both Parties shall, at all
          times, both during the term of this

                                       9

<PAGE>   18

          Agreement and thereafter for a period of two (2) years, keep in
          confidence as a fiduciary any and all of the Confidential Information
          received by it from the other Party. Neither Party shall use the
          Confidential Information of the other Party other than as expressly
          permitted under the terms of this Agreement or by a separate written
          agreement. Both Parties shall take reasonable steps to prevent
          unauthorized disclosure or use of the other Party's Confidential
          Information and to prevent it from falling into the public domain or
          into the possession of unauthorized persons. Neither Party shall not
          disclose Confidential Information of the other Party to any person or
          entity other than its officers, employees, consultants and
          subsidiaries who need access to such Confidential Information in order
          to perform its obligations under this Agreement. Upon termination of
          this agreement, both Parties shall promptly return any and all
          Confidential Information to the other Party.

     28.2 Exception to Confidential Information. Information that is in or
          (through no improper action or inaction of a Party or any affiliate,
          agent or employee) enters the public domain shall not be Confidential
          Information hereunder. Without granting any right or license, the
          Parties agree that the obligations set forth in Section 34.1 above,
          shall not apply to the extent that Confidential Information includes
          information which the Parties can document (i) was rightfully in its
          possession or known by it prior to receipt from the disclosing Party,
          or (ii) was rightfully disclosed to it by another person without
          restriction, or (iii) developed independently by either Party without
          use of the other Party's Confidential Information, or (iv) is
          disclosed pursuant to the requirement of a court, or other
          governmental body, provided the receiving Party provides notice of
          such court order to the disclosing Party to enable the disclosing
          Party to see a protective order or otherwise prevent or restrict such
          disclosure.

29.0 Equitable Relief. Each party acknowledges and agrees that due to the unique
     nature of the Confidential Information, there can be no adequate remedy at
     law for any breach of the obligations hereunder and that such breach may
     allow FINE PITCH or third Parties to unfairly compete with ACCELERATED
     resulting in irreparable harm to ACCELERATED. Therefore, upon any such
     breach or threat of breach, ACCELERATED shall be entitled to appropriate
     equitable relief in addition to whatever remedies it has at law. FINE PITCH
     agrees to notify ACCELERATED in writing immediately upon learning of any
     unauthorized release or breach of its obligation of nondisclosure
     hereunder.

31.0 Amendment and Waiver. Except as otherwise expressly provided herein, any
     provision of this Agreement may be amended and the observance of any
     provision of this Agreement may be waived (either generally or in any
     particular instance and either retroactively) only with the written consent
     by an officer of both Parties. However, it is the intention of the Parties
     that this Agreement be controlling over additional or different terms of
     any purchase order, confirmation, invoice or similar document, even if
     accepted in writing by both parties.

32.0 Notice. Notices under this Agreement shall be sufficient only if personally
     delivered by a major rapid delivery courier service or mailed by certified
     or registered mail, return receipt requested to a Party at its addresses
     first set forth herein or as amended by notice pursuant to this subsection.
     If not received sooner, notice by mail shall be deemed received three (3)
     days after deposit in the U.S. mail.

33.0 Severability. If any provision of this Agreement is held to be illegal or
     unenforceable, that provision shall be limited or eliminated to the minimum
     necessary so that this Agreement shall otherwise remain in fall force and
     effect and enforceable.

35.0 Entire Agreement. THIS ADDENDUM, INCLUDING THE EXHIBITS, IS INCORPORATED BY
     REFERENCE INTO THE AGREEMENT AND SETS FORTH THE ENTIRE UNDERSTANDING OF THE
     PARTIES RELATING TO THE SUBJECT MATTER HEREIN AND SUPERSEDES ALL PRIOR
     DISCUSSIONS BETWEEN THEM.

                                       10

<PAGE>   19

IN WITNESS WHEREOF, the parties have executed this Addendum and it is effective
as of the latest day and year set forth below.

"ACCELERATED NETWORKS, INC"                 "FINE PITCH TECHNOLGY, INC."

Signature: /s/ Ronald A. Hughes             Signature: /s/ Jeff Chiang
           ----------------------------                -------------------------
Print Name:    Ronald A. Hughes             Print Name:    Jeff Chiang

Title: Director of Contracts                Title: General Manager

Date: 4/10/01                               Date: 4/16/01

                                       11<PAGE>   1

                                                                   EXHIBIT 10.16

                            ASSET PURCHASE AGREEMENT

                                     among:

                    EMERGENT INFORMATION TECHNOLOGIES, INC.,
                            a California corporation

                                       and

                             LYNCH & COMPANY, INC.,
                             a Delaware corporation

                          DATED AS OF JANUARY 11, 2001

<PAGE>   2

                            ASSET PURCHASE AGREEMENT

        THIS ASSET PURCHASE AGREEMENT is entered into as of January 11, 2001, by
and between EMERGENT INFORMATION TECHNOLOGIES, INC., a California corporation
(the "SELLER") and LYNCH & COMPANY, INC., a Delaware corporation (the
"PURCHASER"). Certain capitalized terms used in this Agreement are defined in
Exhibit A.

                                    RECITALS

        A. The Purchaser and the Seller are parties to that certain Software
License Agreement, dated as of March 30, 2000 (the "LICENSE AGREEMENT") relating
to the license of the Seller's BillTamer and NetTamer software (the "SOFTWARE")
to Purchaser, which the parties desire to supercede in its entirety with the
terms provided herein.

        B. The Purchaser and the Seller now wish to provide for the sale of the
Software and related assets of the Seller to the Purchaser on the terms set
forth in this Agreement.

                                    AGREEMENT

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

1. SALE OF ASSETS; RELATED TRANSACTIONS.

        1.1 (a) SALE OF ASSETS. The Seller shall cause to be sold, assigned,
transferred, conveyed and delivered to the Purchaser, at the Closing (as defined
in Section 1.6 below), good and valid title to the Assets (as defined below),
free of any Encumbrances, on the terms and subject to the conditions set forth
in this Agreement. For purposes of this Agreement, "ASSETS" shall mean and
include the properties, rights, interests, intellectual property and other
tangible and intangible assets of the Seller relating to the ownership, license
or operation of the Software identified on Part 1.1 of the disclosure schedule
as attached to this Agreement (the "DISCLOSURE SCHEDULE"), including the
following related assets:

                        (1) all accounts receivable, notes receivable and other
receivables of the Seller relating to the NetTamer/BillTamer Software License
Agreement dated March 31, 2000 by and between the Seller and ALLTEL Corporation,
as such contract is anticipated to be amended as provided in Sections 4.8 and
5.5 (the "ALLTEL AGREEMENT");

                        (2) all inventories and work-in-progress of the Seller
in connection with the Software, and all rights to collect pursuant to the
ALLTEL Agreement (and to retain) all fees and other amounts payable, or that may
become payable, to the Seller pursuant to the ALLTEL Agreement;

                        (3) all advertising, promotional materials,
documentation, current and prospective client lists and information and other
written materials possessed by the Seller relating to the Software;

                                       1
<PAGE>   3

                        (4) all Proprietary Assets and goodwill of the Seller
relating to the Software (including the right to use the names "BILLTAMER"
"NETTAMER" and variations thereof);

                        (5) all rights of the Seller under the ALLTEL Agreement;

                        (6) all claims (including claims for past infringement
of Proprietary Assets) and causes of action of the Seller against other Persons
(regardless of whether or not such claims and causes of action have been
asserted by the Seller), and all rights of indemnity, warranty rights, rights of
contribution, rights to refunds, rights of reimbursement and other rights of
recovery possessed by the Seller (regardless of whether such rights are
currently exercisable), in each case owned by Seller and relating to the
Software; and

                        (7) all books, records, files and data of the Seller
relating directly and exclusively to the Software, and copies of any other
books, records, files and data of Seller relating to the Software, redacted to
delete references to elements of the Seller's business not directly and
exclusively relating to the Software.

                (b) EXCLUDED ASSETS. The Assets to be transferred to the
Purchaser by the Seller shall include only those set forth on Part 1.1 of the
Disclosure Schedule or contemplated by Section 1.1(a) above and no other assets
of the Seller shall be transferred to the Purchaser. Notwithstanding anything in
this Agreement to the contrary and without limiting the generality of the
preceding sentence, it is specifically understood and agreed that the following
assets shall not be included in part of the Assets:

                        (i) cash, cash equivalents or marketable securities; and

                        (ii) accounts receivables, unbilled revenues and
unbilled amounts incurred but not invoiced relating to the Software other than
those revenues and unbilled amounts relating to the ALLTEL Agreement.

        1.2 PURCHASE PRICE.

                (a) As consideration for the sale of the Assets to the
Purchaser, at the Closing, the Purchaser shall:

                (i) pay to the Seller, in immediately available funds, a total
of $200,000 by wire transfer to Seller's account;

                (ii) deliver to the Seller a secured promissory note in the
original principal amount of $565,000, bearing interest at a rate of 9.9% per
annum, in substantially the form of Exhibit B (the "NOTE"), providing that upon
a default of the Note, the Purchaser and the Seller will execute a new software
license agreement substantially in accordance with the terms set forth on
Exhibit C, and secured by the Assets as provided in the Security Agreement in
substantially the form of Exhibit D (the "SECURITY AGREEMENT"); and

                (iii) assume the Assumed Liabilities (as defined below) by
delivering to the Seller an Assumption Agreement in substantially the form of
Exhibit E (the "ASSUMPTION AGREEMENT").

                                       2
<PAGE>   4

                (b) For purposes of this Agreement, "ASSUMED LIABILITIES" shall
mean only the obligations of the Seller under the ALLTEL Agreement, but shall
not include any liability for an Breach thereof by Seller, and the "ASSUMED
LIABILITIES" shall not include:

                        (1) any Liability of any other Person, except for the
Seller;

                        (2) any Liability of the Seller arising out of or
relating to the execution, delivery or performance of any of the Transactional
Agreements;

                        (3) any Liability of the Seller for any fees, costs or
expenses of the type referred to in Section 9.2 of Agreement;

                        (4) any Liability of the Seller arising from or relating
to any action taken by the Seller, or any failure on the part of the Seller to
take any action, at any time after the Closing Date;

                        (5) any Liability of the Seller arising from or relating
to (x) any services performed by the Seller for any customer other than ALLTEL,
or (y) any claim or Proceeding against the Seller;

                        (6) any Liability of the Seller for the payment of any
Tax;

                        (7) any Liability of the Seller to any employee or
former employee of the Seller under or with respect to any Employee Benefit
Plan, profit sharing plan or dental plan or for severance pay;

                        (8) any Liability under any Contract other than the
ALLTEL Agreement;

                        (9) any Liability that is inconsistent with or
constitutes an inaccuracy in, or that arises or exists by virtue of any Breach
of, (x) any representation or warranty made by the Seller in any of the
Transactional Agreements, or (y) any covenant or obligation of the Seller
contained in any of the Transactional Agreements; or

                        (10) any other Liability that is not referred to
specifically in this Section 1.2(b).

        1.3 ONGOING ROYALTY PAYMENTS.

                (a) For four years following the Closing the Purchaser will pay
to the Seller a royalty on sales and applications of the Software in accordance
with the following schedule: (i) for direct application of the Software in
Client Services (as such term is defined in Exhibit A attached hereto) for the
clients identified on Schedule 1, a royalty equal to 7.5% of Net Receipts for
the first, second and third years following Closing and 5% of Net Receipts for
the fourth year following Closing; and (ii) for direct sales of the Software by
the Purchaser and application of the Software in Client Services for clients not
identified on Schedule 1, 15% of Net Receipts in the first and second years
following Closing, 10% of Net Receipts in the third year following the Closing
and 5% of Net Receipts for the fourth year following the Closing. After the
fourth year

                                       3
<PAGE>   5

following the Closing, the Purchaser will not accrue any additional royalty or
payment obligations to the Seller in connection with the Software. Royalty
payments pursuant to this Section 1.3 shall be payable within forty-five (45)
days after the end of the calendar quarter during which such payment obligations
accrue. Notwithstanding the foregoing, the Purchaser shall not be obligated to
make royalty payments in any amount in connection with sales and applications of
the Software to or for the benefit of ALLTEL Corporation or Level 3, Inc.

                (b) The Purchaser shall maintain complete and accurate records
in connection with sales and applications of the Software for the five year
period following the Closing. The Seller shall have the right, at its own
expense, upon reasonable prior notice, to inspect and audit the records of the
Purchaser relating to sales and license of the Software and Client Services,
provided that the Seller shall not conduct such audit and inspection more than
twice during any calendar year. If such inspection and audit reveals that the
Purchaser has underpaid the Seller with respect to any amounts due and payable
during the period to which such inspection and audit relate exceeding 5% of the
total amounts due and payable by the Purchaser during such period, the Purchaser
shall pay the Seller all amounts which were underpaid, plus interest on such
amounts at a rate of 9.9% per annum and reimburse the Seller for the cost of
such inspection and audit. If the parties dispute such amounts, the chief
financial officer of Seller and the chief financial officer of Purchaser or
their respective designees shall meet and attempt to reconcile such differences
and make a final determination within thirty (30) days from the initial delivery
of the statement. If the officers do not reach agreement within such time, each
party may appoint an independent accountant at its own expense and such
appointed accountants shall review the records and make a joint determination as
to the amounts owed.

        1.4 SALES TAXES. The Seller shall bear and pay, and shall reimburse the
Purchaser for, any sales taxes, use taxes, transfer taxes, documentary charges,
recording fees or similar taxes, charges, fees or expenses that may become
payable in connection with the sale of the Assets to the Purchaser pursuant
hereto.

        1.5 ALLOCATION. At or prior to the Closing, the Purchaser shall deliver
to the Seller a statement setting forth the Purchaser's good faith determination
of the manner in which the consideration referred to in Section 1.2 is to be
allocated among the Assets. Notwithstanding the prior sentence, in no event
shall the allocated value attributed to the ALLTEL Agreement (as defined above)
be less than $700,000. The allocation prescribed by such statement shall be
subject to the approval by the Seller, such approval not to be unreasonably
withheld, and neither the Purchaser nor the Seller shall file any Tax Return or
other document with, or make any statement or declaration to, any Governmental
Body that is inconsistent with such allocation.

        1.6 CLOSING.

                (a) The closing of the sale of the Assets to the Purchaser (the
"CLOSING") shall take place at the offices of Cooley Godward LLP in Reston,
Virginia, at 10:00 a.m. Eastern Standard Time on January 16, 2001, or such other
date which may be mutually agreed upon by the parties (the "CLOSING DATE").

                (b) At the Closing:

                                       4
<PAGE>   6

                        (i) the Seller shall execute and deliver to the
Purchaser such bills of sale, endorsements, assignments and other documents as
may (in the reasonable judgment of the Purchaser or its counsel) be necessary or
appropriate to assign, convey, transfer and deliver to the Purchaser good and
valid title to the Assets free of any Encumbrances;

                        (ii) the Purchaser shall pay to the Seller $200,000 in
immediately available funds as contemplated by Section 1.2(a)(i);

                        (iii) the Purchaser shall deliver to the Seller the
Note;

                        (iv) the Purchaser shall deliver to the Seller the
Security Agreement;

                        (v) the Seller and the Purchaser's lender shall enter
into an Intercreditor Agreement in substantially the form attached hereto as
Exhibit F; and

                        (vi) the Seller shall execute and deliver to the
Purchaser a Noncompetition Agreement in the form of Exhibit G; and

                        (vii) the Seller shall execute and deliver to the
Purchaser a certificate (the "SELLER CLOSING CERTIFICATE") setting forth the
representations and warranties of the Seller that (A) each of the
representations and warranties made by the Seller in this Agreement was accurate
in all respects as of the date of this Agreement, (B) except as expressly set
forth in the Closing Certificate, each of the representations and warranties
made by the Seller in this Agreement is accurate in all respects as of the
Closing Date as if made on the Closing Date, (C) each of the covenants and
obligations that the Seller is required to have complied with or performed
pursuant to this Agreement at or prior to the Closing has been duly complied
with and performed in all respects, and (D) except as expressly set forth in the
Closing Certificate, each of the conditions set forth in Section 4 has been
satisfied in all respects.

                        (viii) the Purchaser shall execute and deliver to the
Seller a certificate (the "PURCHASER CLOSING CERTIFICATE") setting forth the
representations and warranties of the Purchaser that (A) each of the
representations and warranties made by the Purchaser in this Agreement was
accurate in all respects as of the date of this Agreement, (B) except as
expressly set forth in the Closing Certificate, each of the representations and
warranties made by the Purchaser in this Agreement is accurate in all respects
as of the Closing Date as if made on the Closing Date, (C) each of the covenants
and obligations that the Purchaser are required to have complied with or
performed pursuant to this Agreement at or prior to the Closing has been duly
complied with and performed in all respects, and (D) except as expressly set
forth in the Closing Certificate, each of the conditions set forth in Section 5
have been satisfied in all respects.

        1.7 PRE-CLOSING MATTERS. From the date of this Agreement through the
Closing Date, the Seller agrees to permit the Purchaser and its employees to
have access to its premises and the source code of the Software, and grants to
the Purchaser a limited license to modify the Software in accordance with the
terms of the License Agreement and to make such changes and modifications to the
Software, including the source code, as it may deem necessary or appropriate.
The Purchaser shall retain any such modifications as its property regardless of
whether the Closing occurs. The Seller agrees to indemnify and hold harmless the
Purchaser, its officers, employees and directors from and against, and shall
compensate and reimburse the

                                       5
<PAGE>   7

Purchaser for any damages or claims relating to or arising from the presence of
the Purchaser's employees at the Seller's premises or the modifications to the
source code or the Software made by the Purchaser's employees pursuant to this
Section 1.7, other than damages and claims arising from any willful misconduct
or fraud. The Seller agrees to pay to the Purchaser a fee for any services
performed by the Purchaser on behalf of the Seller or any client of the Seller
prior to the Closing at the rates the Seller identified for similar services in
the License Agreement.

2. REPRESENTATIONS AND WARRANTIES OF THE SELLER.

        The Seller represents and warrants, to and for the benefit of the
Purchaser, as follows:

        2.1 DUE ORGANIZATION. The Seller is a corporation duly organized,
validly existing and in good standing under the laws of the State of California.
The Seller is not required to be qualified, authorized, registered or licensed
to do business as a foreign corporation in any jurisdiction other than the
jurisdictions listed in Part 2.1 of the Disclosure Schedule. The Seller is in
good standing as a foreign corporation in each of the jurisdictions listed in
Part 2.1 of the Disclosure Schedule.

        2.2 ARTICLES OF INCORPORATION AND BYLAWS; RECORDS. The Seller has
delivered to (or made available for inspection by) the Purchaser accurate and
complete copies of: (i) the articles of incorporation and bylaws of the Seller,
including all amendments thereto; and (ii) the minutes and other records of the
meetings and other proceedings (including any actions taken by written consent
or otherwise without a meeting) of the shareholders of the Seller, the board of
directors of the Seller and all committees of the board of directors of the
Seller relating to the transactions contemplated herein.

        2.3 TITLE TO ASSETS. The Seller owns, and has good and valid title to,
all of the Assets. All of the Assets are owned by the Seller free and clear of
any Encumbrances. The Seller has never pledged any of the Assets to secure the
performance or payment of any obligation or other Liability of any other Person.

        2.4 TANGIBLE ASSETS. Except as set forth in the Disclosure Schedule, the
tangible assets included in the Assets constitute all equipment, hardware,
modules, documentation and other tangible assets necessary for ownership,
operation, modification, resale, sub-license, incorporation into other media and
use of the Software.

        2.5 PROPRIETARY ASSETS.

                (a) Part 2.5 of the Disclosure Schedule identifies and provides
a brief description of all Proprietary Assets owned or licensed by the Seller
(except for any Proprietary Asset that is licensed to the Seller under any third
party software license that (1) is generally available to the public, and (2)
imposes no future monetary obligation on the Seller). The Seller has good and
valid title to all of the Proprietary Assets identified in Part 2.5 of the
Disclosure Schedule, free of any Encumbrances, or has a valid right to use and
otherwise exploit, and to license others to use and otherwise exploit, all
Proprietary Assets identified in Part 2.5 of the Disclosure Schedule. The Seller
is free to use, modify, copy, distribute, sell, license or otherwise exploit
each of the Proprietary Assets on an exclusive basis without the payment of
additional fees (other than Proprietary Assets consisting of software licensed
to the Seller under third party

                                       6
<PAGE>   8

licenses generally available to the public, with respect to which the Seller's
rights are not exclusive). The Proprietary Assets included in the Assets
constitute all Proprietary Assets necessary for the ownership, operation,
modification, resale, sub-license, incorporation into other media and use of the
Software, including, without limitation, all licenses and/or source code of any
software or intellectual property components of the Software and all modules and
developmental components in existence based upon the Software. Part 2.5 of the
Disclosure Schedule identifies any Proprietary Assets which are licensed from a
third party and indicates whether such license may be freely assigned to the
Purchaser pursuant to this Agreement.

                (b) The Seller has not disclosed or delivered the source code
relating to the Software (the "SOURCE CODE"), or permitted to be disclosed or
delivered the Source Code to any Person who can be reasonably expected to use or
release the Source Code in a manner that would materially reduce the commercial
value thereof to the Purchaser, and the Seller is not a party to any agreement
which would require the Seller to disclose or release the Source Code to any
party in the event of any breach.

                (c) Except as provided in the License Agreement, the Seller has
not licensed any of the Proprietary Assets to any Person other than to customers
through the sale of the BillTamer and NetTamer products, and the Seller has not
entered into any covenant not to compete or contract limiting its ability to
exploit fully any of the Proprietary Assets or to transact business in any
market or geographical area or with any Person. The Seller has, and the
Purchaser will acquire at the Closing, the right to use the names "BILLTAMER"
and "NETTAMER" and variations thereof.

        2.6 THE ALLTEL AGREEMENT.

                (a) The Seller has delivered to the Purchaser an accurate and
complete copy of the ALLTEL Agreement, including all amendments thereto. The
ALLTEL Agreement is valid and in full force and effect.

                (b) The performance of the ALLTEL Agreement will not result in
any violation of or failure to comply with any Legal Requirement.

                (c) To the best of the Seller's knowledge, ALLTEL Corporation
will be willing to enter into negotiations consistent with the provisions of
Sections 4.8 and 5.5.

                (d) Schedule 2.5 is an accurate description of the status of the
ALLTEL Agreement.

        2.7 COMPLIANCE WITH LEGAL REQUIREMENTS. (a) The Seller is in full
compliance with each Legal Requirement that is applicable to the sale or license
of the Software; (b) the Seller has at all times been in full compliance with
each Legal Requirement that is or was applicable to the conduct of its business
relating to the Software or the ownership or use of any of the Assets; and (c)
the Seller has not received, at any time, any notice or other communication (in
writing or otherwise) from any Governmental Body or any other Person regarding
(i) any actual, alleged, possible or potential violation of, or failure to
comply with, any Legal Requirement, or (ii) any actual, alleged, possible or
potential obligation on the part of the Seller to undertake, or to bear all or
any portion of the cost of, any cleanup or any remedial, corrective

                                       7
<PAGE>   9

or response action of any nature. The Seller has delivered to the Purchaser an
accurate and complete copy of each report, study, survey or other document to
which the Seller has access that addresses or otherwise relates to the
compliance of the Seller with, or the applicability to the Seller of, any Legal
Requirement. To the best of the knowledge of the Seller, no Governmental Body
has proposed or is considering any Legal Requirement that, if adopted or
otherwise put into effect, (i) may have an adverse effect on the business,
condition, assets, liabilities, operations, financial performance, net income or
prospects of the Seller relating to the Assets or on the ability of the Seller
to comply with or perform any covenant or obligation under this Agreement, or
(ii) may have the effect of preventing, delaying, making illegal or otherwise
interfering with any of the Transactions.

        2.8 GOVERNMENTAL AUTHORIZATIONS. No Governmental Authorizations are used
in connection with the ownership, sale or license of the Software.

        2.9 AUTHORITY; BINDING NATURE OF AGREEMENTS. The Seller has the absolute
and unrestricted right, power and authority to enter into and to perform its
obligations under each of the Transactional Agreements to which it is a party;
and the execution, delivery and performance by the Seller of the Transactional
Agreements to which it is a party have been duly authorized by all necessary
action on the part of the Seller and its shareholders, board of directors and
officers. This Agreement constitutes the legal, valid and binding obligation of
the Seller, enforceable against the Seller in accordance with its terms. Upon
the execution of each of the other Transactional Agreements at the Closing, each
of such other Transactional Agreements to which the Seller is a party will
constitute the legal, valid and binding obligation of the Seller and will be
enforceable against the Seller in accordance with its terms.

        2.10 NON-CONTRAVENTION; CONSENTS. Except as set forth in Part 2.9 of the
Disclosure Schedule or as contemplated by Sections 4.8 and 5.5, neither the
execution and delivery of any of the Transactional Agreements, nor the
consummation or performance of any of the Transactions, will directly or
indirectly (with or without notice or lapse of time):

                (a) contravene, conflict with or result in a violation of, or
give any Governmental Body or other Person the right to challenge any of the
Transactions or to exercise any remedy or obtain any relief under, any Legal
Requirement or any Order to which the Seller, or any of the Assets, is subject;

                (b) result in the imposition or creation of any Encumbrance upon
or with respect to any of the Assets; or

                (c) required any filing with or any notice to, or obtain any
Consent from, any person in connection with the execution and delivery of any of
the Transactional Agreements or the consummation or performance of any of the
Transactions.

        2.11 BROKERS. Except as set forth in Part 2.10 of the Disclosure
Schedule, the Seller has not agreed or become obligated to pay, or has taken any
action that will result in any Person claiming to be entitled to receive, any
brokerage commission, finder's fee or similar commission or fee in connection
with any of the Transactions.

                                       8
<PAGE>   10

3. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

        The Purchaser represents and warrants, to and for the benefit of the
Seller, as follows:

        3.1 DUE ORGANIZATION. The Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware.
The Purchaser is not required to be qualified, authorized, registered or
licensed to do business as a foreign corporation in any jurisdiction other than
the jurisdictions listed in Part 3.1 of the Disclosure Schedule. The Purchaser
is in good standing as a foreign corporation in each of the jurisdictions listed
in Part 3.1 of the Disclosure Schedule.

        3.2 AUTHORITY; BINDING NATURE OF AGREEMENTS. The Purchaser has the
absolute and unrestricted right, power and authority to enter into and perform
its obligations under each of the Transactional Agreements to which it is a
party, and the execution and delivery by the Purchaser of each of the
Transactional Agreements to which it is a party have been duly authorized by all
necessary action on the part of the Purchaser and shareholders, its board of
directors and its officers. This Agreement constitutes the legal, valid and
binding obligation of the Purchaser, enforceable against it in accordance with
its terms. Upon the execution of each of the other Transactional Agreements at
the Closing, each of such other Transactional Agreements to which the Seller is
a party will constitute the legal, valid and binding obligation of the Seller
and will be enforceable against the Seller in accordance with its terms.

        3.3 NON-CONTRAVENTION; CONSENTS. Neither the execution and delivery of
any of the Transactional Agreements, nor the consummation or performance of any
of the Transactions, will directly or indirectly (with or without notice or
lapse of time) contravene, conflict with or result in a violation of, or give
any Governmental Body or other Person the right to challenge any of the
Transactions or to exercise any remedy or obtain any relief under, any Legal
Requirement or any Order to which the Purchaser is subject.

        3.4 BROKERS. The Purchaser has not become obligated to pay, and has not
taken any action that will result in any Person claiming to be entitled to
receive, any brokerage commission, finder's fee or similar commission or fee in
connection with any of the Transactions.

4. CONDITIONS PRECEDENT TO THE PURCHASER'S OBLIGATION TO CLOSE.

        The Purchaser's obligation to purchase the Assets and to take the other
actions required to be taken by the Purchaser at the Closing is subject to the
satisfaction, at or prior to the Closing, of each of the following conditions
(any of which may be waived by the Purchaser, in whole or in part, in writing):

        4.1 ACCURACY OF REPRESENTATIONS. All of the representations and
warranties made by the Seller in this Agreement (considered collectively), and
each of said representations and warranties (considered individually), shall
have been accurate in all material respects as of the date of this Agreement,
and shall be accurate in all material respects as of the Closing as if made at
the Closing.

                                       9
<PAGE>   11

        4.2 PERFORMANCE OF OBLIGATIONS.

                (a) Each of the documents referred to in Section 1.6(b) to be
executed by Seller and delivered to the Purchaser shall have been delivered to
the Purchaser.

                (b) All of the covenants and obligations that the Seller is
required to comply with or to perform pursuant to this Agreement at or prior to
the Closing (considered collectively), and each of said covenants and
obligations (considered individually), shall have been duly complied with and
performed in all material respects.

        4.3 CONSENTS. Each of the Consents required for transfer or assignment
of the Assets shall have been obtained and shall be in full force and effect.

        4.4 ADDITIONAL DOCUMENTS. Purchaser shall have received such other
documents as the Purchaser may request in good faith for the purpose of (i)
evidencing the accuracy of any representation or warranty made by the Seller,
(ii) evidencing the compliance by the Seller with, or the performance by the
Seller of, any covenant or obligation set forth in this Agreement, (iii)
evidencing the satisfaction of any condition set forth in this Section 4, or
(iv) otherwise facilitating the consummation or performance of any of the
Transactions.

        4.5 NO PROCEEDINGS. Since the date of this Agreement, there shall not
have been commenced or threatened against the Purchaser, or against any Person
affiliated with the Purchaser, any Proceeding (a) involving any material
challenge to, or seeking material damages or other material relief in connection
with, any of the Transactions, or (b) that may have the effect of preventing,
delaying, making illegal or otherwise interfering with any of the Transactions.

        4.6 NO PROHIBITION. Neither the consummation nor the performance of any
the Transactions will, directly or indirectly (with or without notice or lapse
of time), contravene or conflict with or result in a violation of, or cause the
Purchaser or any Person affiliated with the Purchaser to suffer any adverse
consequence under, any applicable Legal Requirement or Order.

        4.7 INVESTIGATION. The Purchaser shall have completed an investigation
and review of the Assets and the Seller's business relating to the Software and
shall be reasonably satisfied with the results of such investigation.

        4.8 AMENDMENT OF ALLTEL AGREEMENT. The Purchaser, the Seller and ALLTEL
Corporation shall have entered into an amendment of the ALLTEL Agreement in form
and substance reasonably satisfactory to the Purchaser and the Seller and
providing for (i) the assumption by the Purchaser of the obligation to continue
performance under the ALLTEL Agreement as provided therein and (ii) a release by
ALLTEL Corporation of the Purchaser from any liabilities arising from or
relating to any breach or failure by the Seller under any agreements by and
between ALLTEL Corporation and the Seller.

        4.9 BTE EQUIPMENT, LLC. The Purchaser, the Seller and BTE Equipment,
LLC, a subsidiary of Level 3 Communications, shall have entered into a mutually
agreeable amendment and/or termination of the agreement by and between BTE
Equipment and the Seller.

                                       10
<PAGE>   12

        4.10 RELEASE FROM LIENS. The Seller shall have obtained and delivered to
the Purchaser a release of the Assets from any liens or encumbrances reasonably
satisfactory to the Purchaser in form and substance.

5. CONDITIONS PRECEDENT TO THE SELLER'S OBLIGATION TO CLOSE.

        The Seller's obligation to sell the Assets and to take the other actions
required to be taken by the Seller at the Closing is subject to the
satisfaction, at or prior to the Closing, of each of the following conditions
(any of which may be waived by the Seller, in whole or in part, in writing):

        5.1 ACCURACY OF REPRESENTATIONS. All of the representations and
warranties made by the Purchaser in this Agreement (considered collectively),
and each of said representations and warranties (considered individually), shall
have been accurate in all material respects as of the date of this Agreement and
shall be accurate in all material respects as of the Closing as if made at the
Closing.

        5.2 PERFORMANCE OF OBLIGATIONS.

                (a) Each of the documents referred to in Section 1.6(b) to be
executed by the Purchaser and delivered to the Seller shall have been delivered
to the Seller and the Purchaser shall have tendered the payment contemplated by
Section 1.6(b).

                (b) All of the other covenants and obligations that the
Purchaser is required to comply with or to perform pursuant to this Agreement at
or prior to the Closing (considered collectively), and each of said covenants
and obligations (considered individually), shall have been complied with and
performed in all material respects.

        5.3 NO PROCEEDINGS. Since the date of this Agreement, there shall not
have been commenced or threatened against the Seller, or against any Person
affiliated with the Seller, any Proceeding (a) involving any material challenge
to, or seeking material damages or other material relief in connection with, any
of the Transactions, or (b) that may have the effect of preventing, delaying,
making illegal or otherwise interfering with any of the Transactions.

        5.4 NO PROHIBITION. Neither the consummation nor the performance of any
the Transactions will, directly or indirectly (with or without notice or lapse
of time), contravene or conflict with or result in a violation of, or cause the
Seller or any Person affiliated with the Seller to suffer any adverse
consequence under, any applicable Legal Requirement or Order.

        5.5 AMENDMENT OF ALLTEL AGREEMENT. The Purchaser, the Seller and ALLTEL
Corporation shall have entered into an amendment of the ALLTEL Agreement in form
and substance reasonably satisfactory to the Purchaser and the Seller and
providing for (i) the assumption by the Purchaser of the obligation to continue
performance under the ALLTEL Agreement as provided therein and (ii) a release by
ALLTEL Corporation of the Seller of any further liabilities under the ALLTEL
Agreement.

        5.6 BTE EQUIPMENT, LLC. The Purchaser, the Seller and BTE Equipment,
LLC, a subsidiary of Level 3 Communications, shall have entered into a mutually
agreeable amendment and/or termination of the agreement by and between BTE
Equipment and the Seller.

                                       11
<PAGE>   13

        5.7 INTERCREDITOR AGREEMENT. The Seller shall have received from the
Purchaser's lender evidence of such lender's agreement to subordinate any
interest in the Assets by such lender to the Note and such lender's further
agreement to delay any action against the Assets as collateral for any debt
until such time as the Seller's lien on the Assets has been released,
substantially in the form of the Intercreditor Agreement attached hereto as
Exhibit F.

6. INDEMNIFICATION, ETC.

        6.1 SURVIVAL OF REPRESENTATIONS AND COVENANTS.

                (a) The representations, warranties, covenants and obligations
of each party to this Agreement shall survive (without limitation): (i) the
Closing and the sale of the Assets to the Purchaser; (ii) any sale or other
disposition of any or all of the Assets by the Purchaser; and (iii) the
dissolution of any party to this Agreement. All of said representations,
warranties, covenants and obligations shall remain in full force and effect and
shall survive for a period of two years from the date of Closing, with the
exception of those representations and warranties of the Seller under Section
2.4, which shall remain in full force and effect and shall survive for a period
of four years from the date of Closing.

                (b) The representations, warranties, covenants and obligations
of the Seller, and the rights and remedies that may be exercised by the
Purchaser, shall not be limited or otherwise affected by or as a result of any
information furnished to, or any investigation made by or any knowledge of, the
Purchaser.

                (c) For purposes of this Agreement, a "CLAIM NOTICE" relating to
a particular representation or warranty shall be deemed to have been given if
the Purchaser, acting in good faith, delivers to the Seller a written notice
stating that the Purchaser believes that there is or has been a possible Breach
of such representation or warranty and containing (i) a brief description of the
circumstances supporting the Purchaser's belief that there is or has been such a
possible Breach, and (ii) a non-binding, preliminary estimate of the aggregate
dollar amount of the actual and potential Damages that have arisen and may arise
as a direct or indirect result of such possible Breach.

        6.2 INDEMNIFICATION BY THE SELLER.

                (a) The Seller shall hold harmless and indemnify the Purchaser
from and against, and shall compensate and reimburse the Purchaser for, any
Damages that are directly or indirectly suffered or incurred by the Purchaser or
to which the Purchaser may otherwise become subject at any time (regardless of
whether or not such Damages relate to any third-party claim) and that arise
directly or indirectly from or as a direct or indirect result of, or are
directly or indirectly connected with:

                        (i) any Breach of any of the representations or
warranties made by the Seller in this Agreement or in the Seller Closing
Certificate or any of the other Transactional Agreements;

                        (ii) any claim arising or relating to actions or failure
to act by the Seller prior to the date of this Agreement; or

                                       12
<PAGE>   14

                        (iii) any Breach of any covenant or obligation of the
Seller contained in any of the Transactional Agreements.

                (b) The Seller shall not be required to make any indemnification
payment pursuant to Section 6.2(a)(i) for any Breach of the representations and
warranties made by it in this Agreement or in the Closing Certificate until such
time as the total amount of all Damages (including the Damages arising from such
Breach and all other Damages arising from any other Breaches of any
representations or warranties) that have been directly or indirectly suffered or
incurred by the Purchaser, or to which the Purchaser has otherwise become
subject, exceeds $25,000. (If the total amount of such Damages exceeds $25,000,
the Purchaser shall be entitled to be indemnified against and compensated and
reimbursed for the entire amount of such Damages, and not merely the portion of
such Damages in excess of $25,000.) Notwithstanding the foregoing, in no event
shall the Seller be liable to the Purchaser for any obligations pursuant to this
Section 6.2 in an amount greater than the aggregate amount of the purchase price
and royalty payments payable by the Purchaser pursuant to the terms of this
Agreement.

        6.3 INDEMNIFICATION BY PURCHASER.

                (a) The Purchaser shall hold harmless and indemnify the Seller
from and against, and shall compensate and reimburse the Seller for, any Damages
that are directly or indirectly suffered or incurred by the Seller or to which
the Seller may otherwise become subject at any time (regardless of whether or
not such Damages relate to any third-party claim) and that arise directly or
indirectly from or as a direct or indirect result of, or are directly or
indirectly connected with any:

                        (i) any Breach of any representation or warranty made by
the Purchaser in this Agreement or in the Purchaser Closing Certificate or any
of the other Transactional Agreements;

                        (ii) any Breach of any covenant or obligation of the
Purchaser contained in any of the Transactional Agreements; or

                        (iii) any failure on the part of the Purchaser to
perform and discharge its obligations under Section 1.3 on a timely basis.

                (b) The Purchaser shall not be required to make any
indemnification payment pursuant to Section 6.3(a)(i) for any Breach of the
representations and warranties made by it in this Agreement or in the Closing
Certificate until such time as the total amount of all Damages (including the
Damages arising from such Breach and all other Damages arising from any other
Breaches of any representations or warranties) that have been directly or
indirectly suffered or incurred by the Seller, or to which the Seller has
otherwise become subject, exceeds $25,000. (If the total amount of such Damages
exceeds $25,000, the Seller shall be entitled to be indemnified against and
compensated and reimbursed for the entire amount of such Damages, and not merely
the portion of such Damages in excess of $25,000.) Notwithstanding the
foregoing, in no event shall the Purchaser be liable to the Seller for any
obligations pursuant to this Section 6.3 in an amount greater than the aggregate
amount of the purchase price and royalty payments payable by the Purchaser
pursuant to the terms of this Agreement.

                                       13
<PAGE>   15

        6.4 SETOFF. In addition to any rights of setoff or other rights that the
Purchaser may have at common law or otherwise, the Purchaser shall have the
right to withhold, recoup and deduct any sum that may be owed to the Purchaser
under this Section 6 only from amounts due as ongoing royalty payments under
Section 1.3 of this Agreement. The Purchaser shall not exercise any right of
setoff without providing 30 days prior written notice to the Seller of the
dispute and the intent to exercise such right. During the 30-day period
following the Purchaser's due notification of a dispute and intent to exercise a
right of setoff, the Seller and the Purchaser shall each exercise their best
efforts, including mediation if necessary, to settle and compromise the same,
including any matters concerning the validity of claims made by the Purchaser,
the potential damages, if any, such claims would result in for the Purchaser,
the amount of any such damages the Seller would pay under this Section 6, and
the form any such payment would take.

        6.5 NONEXCLUSIVITY OF INDEMNIFICATION REMEDIES. The indemnification
remedies and other remedies provided in this Section 6 shall not be deemed to be
exclusive. Accordingly, the exercise by any Person of any of its rights under
this Section 6 shall not be deemed to be an election of remedies and shall not
be deemed to prejudice, or to constitute or operate as a waiver of, any other
right or remedy that such Person may be entitled to exercise (whether under this
Agreement, under any other Contract, under any statute, rule or other Legal
Requirement, at common law, in equity or otherwise).

7. CERTAIN POST-CLOSING COVENANTS.

        7.1 FURTHER ASSURANCES. Each party hereto shall execute and/or cause to
be delivered to each other party hereto such instruments and other documents,
and shall take such other actions, as such other party may reasonably request
(prior to, at or after the Closing) for the purpose of carrying out or
evidencing any of the Transactions.

        7.2 PUBLICITY. The Seller shall ensure that, on and at all times after
the Closing Date except to the extent required by law: (a) no press release or
other publicity concerning any of the Transactions is issued or otherwise
disseminated by or on behalf of the Seller without the Purchaser's prior written
consent; (b) the Seller continues to keep the terms of this Agreement and the
other Transactional Agreements strictly confidential; and (c) the Seller keeps
strictly confidential, and does not use or disclose to any other Person, any
non-public document or other information that relates directly or indirectly to
the Purchaser or any affiliate of the Purchaser.

8. TERMINATION OF THE LICENSE AGREEMENT; MUTUAL RELEASE.

        8.1 TERMINATION. Each of the parties hereby agrees that, effective upon
the Closing, this Agreement supercedes the License Agreement in all respects,
and that, upon consummation of the Closing, the License Agreement will be hereby
terminated, and shall be of no further force or effect.

        8.2 MUTUAL RELEASE. Effective upon consummation of the Closing, each of
the parties agrees to the following mutual release:

                (a) RELEASE OF THE CLAIMS. Each party, for itself and for and on
behalf of each of its predecessors and successors in interest, principals and
assigns, does hereby remise, release and discharge, absolutely and forever, the
other party and each of its predecessors and

                                       14
<PAGE>   16

successors in interest, principals, agents, employees, subsidiaries,
stockholders, affiliates and other entities and persons whether in control of,
controlled by, under common control with or related to such party of and from
any and all claims, causes of action, damages, judgments, losses or liabilities,
whether known or unknown, suspected or unsuspected, of every kind and nature
which now exist and/or heretofore have existed and/or hereafter may exist in the
releasing Party's favor against any such person arising out of or relating or
attributable to the License Agreement.

                (b) GENERAL RELEASE. Each party acknowledges that it is aware of
and familiar with the provisions of Section 1542 of the Civil Code of
California, which provides as follows:

                "1542. (General Release - Claims Extinguished) A general release
                does not extend to claims which the creditor does not know or
                suspect to exist in his favor at the time of executing the
                release, which if known by him must have materially affected his
                settlement with the debtor."

Each party acknowledges that it may hereafter discover facts in addition to or
different from those which it knows or believes to be true with respect to the
subject matter of the release set forth in Section 8.2(a) above, but that it is
its intention to, and it does hereby, fully, finally and forever waive any and
all rights and defenses as set forth in Section 8.2(a) above. In furtherance of
such intention, each party WAIVES any and all rights it may have under Section
1542 of the Civil Code of California as well as the provisions of all
comparable, equivalent or similar statutes and principles of common law of
California or any other State or the United States, and acknowledges that this
waiver is an essential and material term of the release herein and that the
release herein given shall be and remain in effect as a full and complete
general release, notwithstanding the subsequent discovery or existence of any
such additional or different facts. Each party acknowledges and agrees that it
has been fully advised by legal counsel of its choice and that it fully
understands the nature and scope of the releases set forth in this Section 8.2.

                (c) NO ADMISSION OF LIABILITY. The releases contained herein do
not constitute an admission of liability on the part of either party as to any
matters whatsoever. The payment of any sums or the execution of this Agreement
shall not be construed as an admission on the part of either party of any
liability or wrongdoing whatsoever.

        Notwithstanding the foregoing, neither party releases the other from any
claims pursuant to this Agreement or the transactions contemplated hereby.

9. MISCELLANEOUS PROVISIONS.

        9.1 FEES AND EXPENSES. Except as provided in Section 9.2, each party
shall bear its own fees and expenses.

        9.2 ATTORNEYS' FEES. Except as otherwise provided in Section 1.3, if any
legal action or other legal proceeding relating to any of the Transactional
Agreements or the enforcement of any provision of any of the Transactional
Agreements is brought against any party to this Agreement, the prevailing party
shall be entitled to recover reasonable attorneys' fees, costs and disbursements
(in addition to any other relief to which the prevailing party may be entitled).

                                       15
<PAGE>   17

        9.3 NOTICES. Any notice or other communication required or permitted to
be delivered to any party under this Agreement shall be in writing and shall be
deemed properly delivered, given and received when delivered (by hand, by
registered mail, by courier or express delivery service or by facsimile) to the
address or facsimile telephone number set forth beneath the name of such party
below (or to such other address or facsimile telephone number as such party
shall have specified in a written notice given to the other parties hereto):

               if to the Purchaser:
               Lynch & Company, Inc.
               8500 Executive Park Avenue, Suite 110
               Fairfax, VA  22031
               Attn: Chief Financial Officer
               Facsimile: 703-560-4839

        if to the Seller:

               Emergent Information Technologies, Inc.
               4695 MacArthur Court, 8th Floor
               Newport Beach, CA  92660
               Attention:  Chief Operating Officer
               Facsimile:  (949) 756-9239

        9.4 TERMINATION. This Agreement may be terminated, and the transactions
contemplated hereby may be abandoned, at any time prior to the Closing (i) by
mutual written agreement of the Purchaser and the Seller, (ii) by the Purchaser
or the Seller upon written notice to the non-terminating party by the
terminating party at any time after February 15, 2001 if the transactions
contemplated hereby have not been consummated on or prior to such date due to a
failure to satisfy any conditions precedent to Closing and such failure is not
caused by a breach of this Agreement by the terminating party, or (iii) by the
Purchaser or the Seller upon written notice to the non-terminating party by the
terminating party at any time if the non-terminating party reasonably determines
that the conditions precedent to Closing as set forth in Sections 4.8, 4.9, 5.5
and 5.6 cannot be satisfied. Upon termination pursuant hereto, this Agreement
shall become void and of no further force or effect, and neither party shall
have any liability to the other in connection therewith, except that the
foregoing shall not relieve either party of any liability for breach of this
Agreement.

        9.5 HEADINGS. The underlined headings contained in this Agreement are
for convenience of reference only, shall not be deemed to be a part of this
Agreement and shall not be referred to in connection with the construction or
interpretation of this Agreement.

        9.6 COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall constitute an original and all of which, when
taken together, shall constitute one agreement.

                                       16
<PAGE>   18

        9.7 GOVERNING LAW; VENUE.

                (a) This Agreement shall be construed in accordance with, and
governed in all respects by, the internal laws of the State of California
(without giving effect to principles of conflicts of laws).

                (b) Any legal action or other legal proceeding relating to this
Agreement or the enforcement of any provision of this Agreement may be brought
or otherwise commenced in any state or federal court located in the County of
Fairfax, Virginia or the City of Alexandria, Virginia.

        9.8 SUCCESSORS AND ASSIGNS; PARTIES IN INTEREST. This Agreement shall be
binding upon: the Seller and its successors and assigns (if any); and the
Purchaser and its successors and assigns (if any). This Agreement shall inure to
the benefit of: the Seller, the Purchaser, and the respective successors and
assigns (if any) of the foregoing. This Agreement may not be assigned by either
party without the prior written consent of the other.

        9.9 WAIVER.

                (a) No failure on the part of any Person to exercise any power,
right, privilege or remedy under this Agreement, and no delay on the part of any
Person in exercising any power, right, privilege or remedy under this Agreement,
shall operate as a waiver of such power, right, privilege or remedy; and no
single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right,
privilege or remedy.

                (b) No Person shall be deemed to have waived any claim arising
out of this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is
expressly set forth in a written instrument duly executed and delivered on
behalf of such Person; and any such waiver shall not be applicable or have any
effect except in the specific instance in which it is given.

        9.10 AMENDMENTS. This Agreement may not be amended, modified, altered or
supplemented other than by means of a written instrument duly executed and
delivered on behalf of the Purchaser and the Seller.

        9.11 SEVERABILITY. In the event that any provision of this Agreement, or
the application of any such provision to any Person or set of circumstances,
shall be determined to be invalid, unlawful, void or unenforceable to any
extent, the remainder of this Agreement, and the application of such provision
to Persons or circumstances other than those as to which it is determined to be
invalid, unlawful, void or unenforceable, shall not be impaired or otherwise
affected and shall continue to be valid and enforceable to the fullest extent
permitted by law.

        9.12 ENTIRE AGREEMENT. The Transactional Agreements set forth the entire
understanding of the parties relating to the subject matter thereof and
supersede all prior agreements and understandings among or between any of the
parties relating to the subject matter thereof, including without limitation any
agreements, whether written or verbal, in connection with the Software.

                                       17
<PAGE>   19

        9.13 KNOWLEDGE. For purposes of this Agreement, a Person shall be deemed
to have "knowledge" of a particular fact or other matter if any Representative
of such Person has knowledge of such fact or other matter or if a similarly
situated Person would be expected to have acting reasonably in the performance
of his, her or its duties.

                                       18
<PAGE>   20

        The parties to this Agreement have caused this Agreement to be executed
and delivered as of January 11, 2001.

                                       EMERGENT INFORMATION TECHNOLOGIES, INC.,
                                       a California corporation

                                       By:
                                           -------------------------------------
                                                                 , President
                                           ---------------------

                                       LYNCH & COMPANY, INC.,
                                       a Delaware corporation

                                       By:
                                           -------------------------------------
                                                                 , President
                                           ---------------------

<PAGE>   21

                                    EXHIBIT A

                               CERTAIN DEFINITIONS

        For purposes of the Agreement (including this Exhibit A):

        AGREEMENT. "AGREEMENT" shall mean the Asset Purchase Agreement to which
this Exhibit A is attached, as it may be amended from time to time.

        BREACH. There shall be deemed to be a "BREACH" of a representation,
warranty, covenant, obligation or other provision if there is or has been (a)
any inaccuracy in or breach (including any inadvertent or innocent breach) of,
or any failure (including any inadvertent failure) to comply with or perform,
such representation, warranty, covenant, obligation or other provision, or (b)
any claim (by any Person) or other circumstance that is inconsistent with such
representation, warranty, covenant, obligation or other provision; and the term
"BREACH" shall be deemed to refer to any such inaccuracy, breach, failure, claim
or circumstance.

        CLIENT SERVICES. "CLIENT SERVICES" shall mean those services utilizing
the direct application of the Software that were contemplated by the License
Agreement and provided by the Purchaser to its customers via consulting,
outsourcing, service bureau and/or application usage arrangements.

        CONSENT. "CONSENT" shall mean any approval, consent, ratification,
permission, waiver or authorization (including any Governmental Authorization).

        DAMAGES. "DAMAGES" shall include any loss, damage, injury, decline in
value, Liability, claim, demand, settlement, judgment, award, fine, penalty,
Tax, fee (including any legal fee, expert fee, accounting fee or advisory fee),
charge, cost (including any cost of investigation) or expense of any nature.

        ENCUMBRANCE. "ENCUMBRANCE" shall mean any lien, pledge, hypothecation,
charge, mortgage, security interest, encumbrance, equity, trust, equitable
interest, claim, preference, right of possession, lease, tenancy, license,
encroachment, covenant, infringement, interference, Order, proxy, option, right
of first refusal, preemptive right, community property interest, legend, defect,
impediment, exception, reservation, limitation, impairment, imperfection of
title, condition or restriction of any nature (including any restriction on the
transfer of any asset, any restriction on the receipt of any income derived from
any asset, any restriction on the use of any asset and any restriction on the
possession, exercise or transfer of any other attribute of ownership of any
asset).

        ENTITY. "ENTITY" shall mean any corporation (including any non-profit
corporation), general partnership, limited partnership, limited liability
partnership, joint venture, estate, trust, cooperative, foundation, society,
political party, union, company (including any limited liability company or
joint stock company), firm or other enterprise, association, organization or
entity.

        GOVERNMENTAL AUTHORIZATION. "GOVERNMENTAL AUTHORIZATION" shall mean any:
(a) permit, license, certificate, franchise, concession, approval, consent,
ratification, permission, clearance, confirmation, endorsement, waiver,
certification, designation, rating, registration,

                                      A-1
<PAGE>   22

qualification or authorization issued, granted, given or otherwise made
available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement; or (b) right under any Contract with any Governmental Body,
in each case relating to the Assets and the Software.

        GOVERNMENTAL BODY. "GOVERNMENTAL BODY" shall mean any: (a) nation,
principality, state, commonwealth, province, territory, county, municipality,
district or other jurisdiction of any nature; (b) federal, state, local,
municipal, foreign or other government; (c) governmental or quasi-governmental
authority of any nature (including any governmental division, subdivision,
department, agency, bureau, branch, office, commission, council, board,
instrumentality, officer, official, representative, organization, unit, body or
Entity and any court or other tribunal); (d) multi-national organization or
body; or (e) individual, Entity or body exercising, or entitled to exercise, any
executive, legislative, judicial, administrative, regulatory, police, military
or taxing authority or power of any nature.

        LEGAL REQUIREMENT. "LEGAL REQUIREMENT" shall mean any federal, state,
local, municipal, foreign or other law, statute, legislation, constitution,
principle of common law, resolution, ordinance, code, edict, decree,
proclamation, treaty, convention, rule, regulation, ruling, directive,
pronouncement, requirement, specification, determination, decision, opinion or
interpretation issued, enacted, adopted, passed, approved, promulgated, made,
implemented or otherwise put into effect by or under the authority of any
Governmental Body, in each case relating to the Assets including without
limitation the Software.

        LIABILITY. "LIABILITY" shall mean any debt, obligation, duty or
liability of any nature (including any unknown, undisclosed, unmatured,
unaccrued, unasserted, contingent, indirect, conditional, implied, vicarious,
derivative, joint, several or secondary liability), regardless of whether such
debt, obligation, duty or liability would be required to be disclosed on a
balance sheet prepared in accordance with generally accepted accounting
principles and regardless of whether such debt, obligation, duty or liability is
immediately due and payable.

        NET RECEIPTS. "NET RECEIPTS" shall mean amounts actually received by the
Purchaser, less discounts, credits and returns, or a reasonable reserve for
returns.

        ORDER. "ORDER" shall mean any: (a) order, judgment, injunction, edict,
decree, ruling, pronouncement, determination, decision, opinion, verdict,
sentence, subpoena, writ or award issued, made, entered, rendered or otherwise
put into effect by or under the authority of any court, administrative agency or
other Governmental Body or any arbitrator or arbitration panel; or (b) Contract
with any Governmental Body entered into in connection with any Proceeding.

        PERSON. "PERSON" shall mean any individual, Entity or Governmental Body.

        PROCEEDING. "PROCEEDING" shall mean any action, suit, litigation,
arbitration, proceeding (including any civil, criminal, administrative,
investigative or appellate proceeding and any informal proceeding), prosecution,
contest, hearing, inquiry, inquest, audit, examination or investigation
commenced, brought, conducted or heard by or before, or otherwise involving, any
Governmental Body or any arbitrator or arbitration panel.

        PROPRIETARY ASSET. "PROPRIETARY ASSET" shall mean any patent, patent
application, trademark (whether registered or unregistered and whether or not
relating to a published work),

                                      A-2
<PAGE>   23

trademark application, trade name, copyright (whether registered or
unregistered), copyright application, trade secret, know how, invention, design,
drawing, technology, proprietary right or computer software, in each case owned
by Seller and relating directly to the Software and the Assets.

        REPRESENTATIVES. "REPRESENTATIVES" shall mean officers, directors,
employees, agents, attorneys, accountants, advisors and representatives.

        TAX. "TAX" shall mean any tax (including any income tax, franchise tax,
capital gains tax, estimated tax, gross receipts tax, value-added tax, surtax,
excise tax, ad valorem tax, transfer tax, stamp tax, sales tax, use tax,
property tax, business tax, occupation tax, inventory tax, occupancy tax,
withholding tax or payroll tax), levy, assessment, tariff, impost, imposition,
toll, duty (including any customs duty), deficiency or fee, and any related
charge or amount (including any fine, penalty or interest), that is, has been or
may in the future be (a) imposed, assessed or collected by or under the
authority of any Governmental Body, or (b) payable pursuant to any tax-sharing
agreement or similar Contract.

        TAX RETURN. "TAX RETURN" shall mean any return (including any
information return), report, statement, declaration, estimate, schedule, notice,
notification, form, election, certificate or other document or information that
is, has been or may in the future be filed with or submitted to, or required to
be filed with or submitted to, any Governmental Body in connection with the
determination, assessment, collection or payment of any Tax or in connection
with the administration, implementation or enforcement of or compliance with any
Legal Requirement relating to any Tax.

        TRANSACTIONAL AGREEMENTS. "TRANSACTIONAL AGREEMENTS" shall mean: (a) the
Agreement; (b) the Noncompetition Agreement referred to in Section 1.6; (c) the
Note; and (d) the Closing Certificate.

        TRANSACTIONS. "TRANSACTIONS" shall mean (a) the execution and delivery
of the respective Transactional Agreements, and (b) all of the transactions
contemplated by the respective Transactional Agreements, including: (i) the sale
of the Assets by the Seller to the Purchaser in accordance with the Agreement;
and (ii) the performance by the Seller and the Purchaser of their respective
obligations under the Transactional Agreements, and the exercise by the Seller
and the Purchaser of their respective rights under the Transactional Agreements.

                                      A-3
<PAGE>   24

                                    EXHIBIT B

                             FORM OF PROMISSORY NOTE

                                       B-1
<PAGE>   25

                                    EXHIBIT C

                              LICENSE AGREEMENT LOI

                                       C-1
<PAGE>   26

                                    EXHIBIT D

                               SECURITY AGREEMENT

                                       D-1
<PAGE>   27

                                    EXHIBIT E

                              ASSUMPTION AGREEMENT

                                      E-1
<PAGE>   28

                                    EXHIBIT F

                             INTERCREDITOR AGREEMENT

                                      F-1
<PAGE>   29

                                    EXHIBIT G

                            NONCOMPETITION AGREEMENT

                                       G-1
<PAGE>   30

                                   SCHEDULE 1

                           EXISTING PURCHASER CLIENTS

@Link Network, Inc.
BellSouth Long Distance, Inc.
CapRock Communications, Inc. (acquired by McLeodUSA Inc.)
Choice One Communications, Inc.
Excel Communications, Inc.
Focal Communications Corp.
Gabriel Communications, Inc.
Ionex Telecommunications, Inc.
LDMi Telecommunications, Inc.
Net2000 Communications Services, Inc.
PathNet Communications, Inc.
PSINET Inc.
Rhythms NetConnections, Inc.
Rivien Communications, Inc.
SITA/EQUANT

                                   Schedule 1

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