Document:

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                                                                   Exhibit 10.11

                             APPLIED INNOVATION INC.

                              EMPLOYMENT AGREEMENT
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         This Agreement is made as of this 19th day of October, 2000, by and
between MICHAEL P. KEEGAN and APPLIED INNOVATION INC., a Delaware corporation
with its principal office at 5800 Innovation Drive, Dublin, Ohio 43016, its
subsidiaries, successors and assigns (the "Company").

                                    RECITALS
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         A. The Company is engaged in the business of developing, manufacturing,
and marketing data communications and data transmission equipment, software, and
services to telephone companies, interexchange telephone carriers, cable
television companies, and electric utilities, for alarm data communications,
network mediation and management, interoperability of networks, and network
switching and routing, and develops and uses valuable technical and nontechnical
trade secrets and other confidential information which it desires to protect.

         B. You are currently employed as an executive officer of the Company.

         C. The Company considers your continued services to be in the best
interest of the Company and desires, through this Agreement, to assure your
continued services on behalf of the Company on an objective and impartial basis
and without distraction or conflict of interest in the event of an attempt to
obtain control of the Company.

         D. You are willing to become employed by and to remain in the employ of
the Company on the terms set forth in this agreement.

                                    AGREEMENT
                                    ---------

         NOW, THEREFORE, the parties agree as follows:

         1. CONSIDERATION. As consideration for your entering into this
Agreement and your willingness to remain bound by its terms, the Company shall
employ you and provide you with access to certain Confidential Information as
defined in this Agreement and other valuable consideration as provided for
throughout this Agreement, including in Sections 3 and 4 of this Agreement.

         2. EMPLOYMENT.

                  (a) POSITION. You will be employed as Vice President and Chief
Financial Officer of the Company, reporting to the President and Chief Executive
Officer of the Company. You shall perform the duties, undertake the
responsibilities and exercise the authority customarily performed, undertaken
and exercised by persons employed in similar executive capacities.

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         (b) RESTRICTED EMPLOYMENT. While employed by the Company, you shall
devote your best efforts to the business of the Company and shall not engage in
any outside employment or consulting work without first securing the approval of
the Company's Board of Directors. Furthermore, so long as you are employed under
this Agreement, you agree to devote your full time and efforts exclusively on
behalf of the Company and to competently, diligently, and effectively discharge
your duties hereunder. You shall not be prohibited from engaging in such
personal, charitable, or other nonemployment activities that do not interfere
with your full time employment hereunder and which do not violate the other
provisions of this Agreement. You further agree to comply fully with all
policies and practices of the Company as are from time to time in effect.

         3. COMPENSATION.

                  (a) Your compensation will be at an annual base rate of
$150,000 through December 31, 2000 ("Basic Salary"), payable in accordance with
the normal payroll practices of the Company. Your base salary may be increased
from time to time by action of the Board of Directors of the Company. You will
also be eligible for a cash bonus under a bonus plan which is determined
annually by the Board of Directors of the Company.

                  (b) You will be entitled to receive stock options to purchase
shares of the common stock of the Company pursuant to the terms of plans adopted
by the Board of Directors of the Company from time to time. If a "Change in
Control," as defined in Section 9(e)(v), shall occur, all outstanding stock
options issued to you shall become 100% vested and thereafter exercisable in
accordance with such governing stock option agreements and plans.

                  (c) Subject to applicable Company policies, you will be
reimbursed for necessary and reasonable business expenses incurred in connection
with the performance of your duties hereunder or for promoting, pursuing or
otherwise furthering the business or interests of the Company.

         4. FRINGE BENEFITS. You will be entitled to receive employee benefits
and participate in any employee benefit plans, in accordance with their terms as
from time to time amended, that the Company maintains during your employment and
which are made generally available to all other management employees in like
positions. This includes a 401(k) and profit sharing plan and paid medical
insurance. It is agreed that the Company will pay any necessary COBRA payments
on your behalf due to any break in medical coverage for any reason, including
pre-existing conditions.

         5. RESERVED.

         6. CONFIDENTIAL INFORMATION.

                  (a) As used throughout this Agreement, the term "Confidential
Information" means any information you acquire during employment by the Company
(including information you conceive, discover or develop) which is not readily
available to the general public and which relates to the business, including
research and development projects, of the Company, its subsidiaries or its
affiliated companies.

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                  (b) Confidential Information INCLUDES, without limitation,
information of a technical nature (such as trade secrets, inventions,
discoveries, product requirements, designs, software codes and manufacturing
methods), matters of a business nature (such as customer lists, the identities
of customer contacts, information about customer requirements and preferences,
the terms of the Company's contracts with its customers and suppliers, and the
Company's costs and prices), personnel information (such as the identities,
duties, customer contacts, and skills of the Company's employees) and other
financial information relating to the Company and its customers (including
credit terms, methods of conducting business, computer systems, computer
software, personnel data, and strategic marketing, sales or other business
plans). Confidential Information may or may not be patentable.

                  (c) Confidential Information DOES NOT INCLUDE information
which you learned prior to employment with the Company from sources other than
the Company, information you develop after employment from sources other than
the Company's Confidential Information or information which is readily available
to persons with equivalent skills, training and experience in the same fields or
fields of endeavor as you. You must presume that all information that is
disclosed or made accessible to you during employment by the Company is
Confidential Information if you have a reasonable basis to believe the
information is Confidential Information or if you have notice that the Company
treats the information as Confidential Information.

                  (d) Except in conducting the Company's business, you shall not
at any time, either during or following your employment with the Company, make
use of, or disclose to any other person or entity, any Confidential Information
unless (i) the specific information becomes public from a source other than you
or another person or entity that owes a duty of confidentiality to the Company
AND (ii) twelve months have passed since the specific information became public.
However, you may discuss Confidential Information with employees of the Company
when necessary to perform your duties to the Company. Notwithstanding the
foregoing, if you are ordered by a court of competent jurisdiction to disclose
Confidential Information, you will officially advise the Court that you are
under a duty of confidentiality to the Company hereunder, take reasonable steps
to delay disclosure until the Company may be heard by the Court, give the
Company prompt notice of such Court order, and if ordered to disclose such
Confidential Information you shall seek to do so under seal or in camera or in
such other manner as reasonably designed to restrict the public disclosure and
maintain the maximum confidentiality of such Confidential Information.

                  (e) Upon Employment Separation, you shall deliver to the
Company all originals, copies, notes, documents, computer data bases, disks, and
CDs, or records of any kind that reflect or relate to any Confidential
Information. As used herein, the term "notes" means written or printed words,
symbols, pictures, numbers or formulae. As used throughout this Agreement, the
term "Employment Separation" means the separation from and/or termination of
your employment with the Company, regardless of the time, manner or cause of
such separation or termination.

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         7. INVENTIONS.

                  (a) As used throughout this Agreement, the term "Inventions"
means any inventions, improvements, designs, plans, discoveries or innovations
of a technical or business nature, whether patentable or not, relating in any
way to the Company's business or contemplated business if the Invention is
conceived or reduced to practice by you during your employment by the Company.
Inventions includes all data, records, physical embodiments and intellectual
property pertaining thereto. Inventions reduced to practice within one year
following Employment Separation shall be presumed to have been conceived during
employment.

                  (b) Inventions are the Company's exclusive property and shall
be promptly disclosed and assigned to the Company without additional
compensation of any kind. If requested by the Company, you, your heirs, your
executors, your administrators or legal representative will provide any
information, documents, testimony or other assistance needed for the Company to
acquire, maintain, perfect or exercise any form of legal protection that the
Company desires in connection with an Invention.

                  (c) Upon Employment Separation, you shall deliver to the
Company all copies of and all notes with respect to all documents or records of
any kind that relate to any Inventions.

         8. NONCOMPETITION AND NONSOLICITATION.

                  (a) By entering into this Agreement, you acknowledge that the
Confidential Information has been and will be developed and acquired by the
Company by means of substantial expense and effort, that the Confidential
Information is a valuable asset of the Company's business, that the disclosure
of the Confidential Information to any of the Company's competitors would cause
substantial and irreparable injury to the Company's business, and that any
customers of the Company developed by you or others during your employment are
developed on behalf of the Company. You further acknowledge that you have been
provided with access to Confidential Information, including Confidential
Information concerning the Company's major customers, and its technical,
marketing and business plans, disclosure or misuse of which would irreparably
injure the Company.

                  (b) In exchange for the consideration specified in Section 1
of this Agreement -- the adequacy of which you expressly acknowledge -- you
agree that during your employment by the Company and for a period of twelve (12)
months following Employment Separation, you shall not, directly or indirectly,
as an owner, shareholder, officer, employee, manager, consultant, independent
contractor, or otherwise:

                           (i) Attempt to recruit or hire, interfere with or
         harm, or attempt to interfere with or harm, the relationship of the
         Company, its subsidiaries or affiliates, with any person who is an
         employee, customer or supplier of the Company, it subsidiaries or
         affiliates;

                           (ii) Contact any employee of the Company for the
         purpose of discussing or suggesting that such employee resign from
         employment with the Company for the purpose of becoming employed
         elsewhere or provide information about individual

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         employees of the Company or personnel policies or procedures of the
         Company to any person or entity, including any individual, agency or
         company engaged in the business of recruiting employees, executives or
         officers; or

                           (iii) Own, manage, operate, join, control, be
         employed by, consult with or participate in the ownership, management,
         operation or control of, or be connected with (as a stockholder,
         partner, or otherwise), any business, individual, partner, firm,
         corporation, or other entity that competes or plans to compete,
         directly or indirectly, with the Company, its products, or any
         division, subsidiary or affiliate of the Company; provided, however,
         that your "beneficial ownership," either individually or as a member of
         a "group" as such terms are used in Rule 13d of the General Rules and
         Regulations under the Securities Exchange Act of 1934, as amended (the
         "Exchange Act"), of not more than two percent (2%) of the voting stock
         of any publicly held corporation, shall not be a violation of this
         Agreement.

         9. TERMINATION OF EMPLOYMENT.

                  (a) Termination Upon Death or Disability. Your employment will
terminate automatically upon your death. The Company will be entitled to
terminate your employment because of your disability upon 30 days written
notice. "Disability" will mean "total disability" as defined in the Company's
long term disability plan or any successor thereto. In the event of a
termination under this Section 9(a), the Company will pay you only the earned
but unpaid portion of your Basic Salary through the termination date.

                  (b) Termination by Company for Cause. An Employment Separation
for Cause will occur upon a determination by the Company that "Cause" exists for
your termination and the Company serves you written notice of such termination.
As used in this Agreement, the term "Cause" shall refer only to any one or more
of the following grounds:

                           (i) Commission of an act of dishonesty involving the
         Company, its business or property, including, but not limited to,
         misappropriation of funds or any property of the Company;

                           (ii) Engagement in activities or conduct clearly
         injurious to the best interests or reputation of the Company;

                           (iii) Willful and continued failure substantially to
         perform your duties under this Agreement (other than as a result of
         physical or mental illness or injury), after the Board of Directors of
         the Company delivers to you a written demand for substantial
         performance that specifically identifies the manner in which the Board
         believes that you have not substantially performed your duties;

                           (iv) Illegal conduct or gross misconduct that is
         willful and results in material and demonstrable damage to the business
         or reputation of the Company;

                           (v) The clear violation of any of the material terms
         and conditions of this Agreement or any other written agreement or
         agreements you may from time to time have with the Company;

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                           (vi) The clear violation of the Company's code of
         business conduct or the clear violation of any other rules of behavior
         as may be provided in any employee handbook which would be grounds for
         dismissal of any employee of the Company; or

                           (vii) Commission of a crime which is a felony, a
         misdemeanor involving an act of moral turpitude, or a misdemeanor
         committed in connection with your employment by the Company which
         causes the Company a substantial detriment.

                  No act or failure to act shall be considered "willful" unless
  it is done, or omitted to be done, by you in bad faith or without reasonable
  belief that your action or omission was in the best interests of the Company.
  Any act or failure to act that is based upon authority given pursuant to a
  resolution duly adopted by the Board of Directors, or the advice of counsel
  for the Company, shall be conclusively presumed to be done, or omitted to be
  done, by you in good faith and in the best interests of the Company.

                  In the event of a termination under this Section 9(b), the
Company will pay you only the earned but unpaid portion of your Basic Salary
through the termination date.

                  Following a termination for Cause by the Company, if you
desire to contest such determination, your sole remedy will be to submit the
Company's determination of Cause to arbitration in Columbus, Ohio before a
single arbitrator under the commercial arbitration rules of the American
Arbitration Association. If the arbitrator determines that the termination was
other than for Cause, the Company's sole liability to you will be the amount
that would be payable to you under Section 9(d) of this Agreement for a
termination of your employment by the Company without Cause. Each party will
bear his or its own expenses of the arbitration.

                  (c) Termination by You. In the event of an Employment
Separation as a result of a termination by you for any reason, you must provide
the Company with at least 14 days advance written notice ("Notice of
Termination") and continue working for the Company during the 14-day notice
period, but only if the Company so desires to continue your employment and to
compensate you during such period.

                  In the event of such termination under this Section, the
Company will pay you the earned but unpaid portion of your Basic Salary through
the termination date.

                  (d) Termination by Company Without Cause. In the event of an
Employment Separation as a result of termination by the Company without Cause,
the Company will pay you the earned but unpaid portion of your Basic Salary
through the termination date and will continue to pay you your Basic Salary for
an additional six (6) months (the "Severance Period"); provided, however, any
such payments will immediately end if (i) you are in violation of any of your
obligations under this Agreement, including Sections 6, 7 and/or 8; or (ii) the
Company, after your termination, learns of any facts about your job performance
or conduct that would have given the Company Cause, as defined in Section 9(b),
to terminate your employment.

                  (e) Termination Following Change of Control. If a "Change in
Control", as defined in Section 9(e)(v), shall have occurred and within 13
months following such Change in

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Control the Company terminates your employment other than for Cause, as defined
in Section 9(b), or you terminate your employment for Good Reason, as that term
is defined in Section 9(e)(vii), or if you terminate your employment for any
reason during the 13th month following a Change in Control, then you shall be
entitled to the benefits described below:

                           (i) You shall be entitled to the unpaid portion of
                  your Basic Salary plus credit for any vacation accrued but not
                  taken and the amount of any earned but unpaid portion of any
                  bonus, incentive compensation, or any other Fringe Benefit to
                  which you are entitled under this Agreement through the date
                  of the termination as a result of a Change in Control (the
                  "Unpaid Earned Compensation"), plus 2.0 times your "Current
                  Annual Compensation" as defined in this Section 9(e)(i) (the
                  "Salary Termination Benefit"). "Current Annual Compensation"
                  shall mean the total of your Basic Salary in effect at the
                  Termination Date, plus the average annual performance bonus
                  actually received by you over the last three years fiscal
                  years (or if you have been employed for a shorter period of
                  time over such period during which you performed services for
                  the Company), and shall not include the value of any stock
                  options granted or exercised, restricted stock awards granted
                  or vested, contributions to 401(k) or other qualified plans,
                  medical, dental, or other insurance benefits, or other fringe
                  benefits.

                           (ii) All outstanding stock options and restricted
                  stock awards issued to you shall become 100% vested and
                  thereafter exercisable in accordance with such governing stock
                  option or restricted stock agreements and plans.

                           (iii) The Company shall maintain for your benefit (or
                  at your election make COBRA payments for your benefit), until
                  the earlier of (A) 24 months after termination of employment
                  following a Change in Control, or (B) your commencement of
                  full-time employment with a new employer, all life insurance,
                  medical, health and accident, and disability plans or
                  programs, such plans or programs to be maintained at the then
                  current standards of the Company, in which you shall have been
                  entitled to participate prior to termination of employment
                  following a Change in Control, provided your continued
                  participation is permitted under the general terms of such
                  plans and programs after the Change in Control ("Fringe
                  Termination Benefit"); (collectively the Salary Termination
                  Benefit and the Fringe Termination Benefit are referred to as
                  the "Termination Benefits").

                           (iv) The Unpaid Earned Compensation shall be paid to
                  you within 15 days after termination of employment, one-half
                  of the Termination Benefits shall be payable to you as
                  severance pay in a lump sum payment within 30 days after
                  termination of employment, and one-half of the Termination
                  Benefits shall be payable to you as severance pay in 12
                  monthly payments commencing 30 days after termination of
                  employment; provided, however, the Company may immediately
                  discontinue the payment of the Termination Benefits if (i) you
                  are in violation of any of your obligations under this
                  Agreement, including in Sections 6, 7 and/or 8; and/or (ii)
                  the Company, after your termination, learns of any facts about
                  your job performance or conduct that would have given the
                  Company Cause as defined in Section 9(b) to terminate your
                  employment. You shall have no duty to mitigate your

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                  damages by seeking other employment, and the Company shall not
                  be entitled to set off against amounts payable hereunder any
                  compensation which you may receive from future employment.

                           (v) A "Change in Control" shall be deemed to have
                  occurred if and when, after the date hereof, (i) any "person"
                  (as that term is used in Section 13(d) and 14(d) of the
                  Securities Exchange Act of 1934, as amended (the "Exchange
                  Act") on the date hereof), including any "group" as such term
                  is used in Section 13(d)(3) of the Exchange Act on the date
                  hereof, shall acquire (or disclose the previous acquisition
                  of) beneficial ownership (as that term is defined in Section
                  13(d) of the Exchange Act and the rules thereunder on the date
                  hereof) of shares of the outstanding stock of any class or
                  classes of the Company which results in such person or group
                  possessing more than 50% of the total voting power of the
                  Company's outstanding voting securities ordinarily having the
                  right to vote for the election of directors of the Company; or
                  (ii) as the result of, or in connection with, any tender or
                  exchange offer, merger or other business combination, or
                  contested election, or any combination of the foregoing
                  transactions (a "Transaction"), the owners of the voting
                  shares of the Company outstanding immediately prior to such
                  Transaction own less than a majority of the voting shares of
                  the Company after the Transaction; or (iii) during any period
                  of two consecutive years during the term of this Agreement,
                  individuals who at the beginning of such period constitute the
                  Board of Directors of the Company (or who take office
                  following the approval of a majority of the directors then in
                  office who were directors at the beginning of the period)
                  cease for any reason to constitute at least one-half thereof,
                  unless the election of each director who was not a director at
                  the beginning of such period has been approved in advance by
                  directors of the Company representing at least one-half of the
                  directors then in office who were directors at the beginning
                  of the period; or (iv) the sale, exchange, transfer, or other
                  disposition of all or substantially all of the assets of the
                  Company (a "Sale Transaction") shall have occurred.

                            (vi) If any portion of the payments and benefits
                  provided under this Agreement to you, alone or with other
                  payments and benefits, would constitute "parachute payments"
                  within the meaning of Section 280G(b)(2) of the Internal
                  Revenue Code of 1986, as amended (the "Code"), and shall be
                  determined by the Company's independent compensation
                  specialist to be nondeductible to the Company, then the
                  aggregate present value of all of the amounts payable to you
                  under Section 9(e) hereof shall be reduced to the maximum
                  amount which would cause all of the payments under Section
                  9(e) to be deductible and in such event you shall have the
                  option, but not the obligation, to designate or select those
                  kinds of payments which shall be reduced and the order of such
                  reductions, but your failure to make such selections within a
                  period of 30 days following notice of the determination that a
                  reduction is necessary will result in a reduction of all such
                  payments, pro rata. If you disagree with the determination of
                  the reduced amount by the Company's independent compensation
                  specialist, you may contest that determination by giving
                  notice of such contest within 30 days of learning of the
                  determination and may use an independent compensation
                  specialist of your choice in connection with such contest. The
                  Company shall pay all of your costs in connection

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                  with such contest if the ultimate determination by the two
                  independent compensation specialists in consultation with each
                  other, or by a third independent compensation specialist,
                  jointly chosen by the two first-named independent compensation
                  specialists in the event the first two cannot agree,
                  represents a lesser reduction in the amounts payable under
                  Section 9(e) hereof than the Company's independent
                  compensation specialist established in the first instance.
                  Otherwise, you shall pay your own and any additional costs
                  incurred by the Company in contesting such determination. If
                  there is a final determination by the Internal Revenue Service
                  or a court of competent jurisdiction that the Company overpaid
                  amounts under Section 280G of the Code, the amount of the
                  overpayment shall be treated as a loan to you and shall be
                  repaid immediately, together with interest on such amount at
                  the prime rate of interest at Huntington National Bank,
                  Columbus, Ohio, or any successor thereto, in effect from time
                  to time. If the Internal Revenue Service or a court of
                  competent jurisdiction finally determines, or if the Code or
                  regulations thereunder shall change such that the Company
                  underpaid you under Section 280G of the Code, the Company
                  shall pay the difference to you with interest as specified
                  above.

                           (vii) As used in this Agreement, the term "Good
                  Reason" means, without your written consent:

                                    (A) a material change in your status,
                           position or responsibilities which, in your
                           reasonable judgment, does not represent a promotion
                           from your existing status, position or
                           responsibilities as in effect immediately prior to
                           the Change in Control; the assignment of any duties
                           or responsibilities or the removal or termination of
                           duties or responsibilities (except in connection with
                           the termination of employment for total and permanent
                           disability, death, or Cause, or by you other than for
                           Good Reason), which, in your reasonable judgment, are
                           materially inconsistent with such status, position or
                           responsibilities;

                                    (B) a reduction by the Company in your Basic
                           Salary as in effect on the date hereof or as the same
                           may be increased from time to time during the term of
                           this Agreement or the Company's failure to increase
                           (within twelve months of your last increase in Basic
                           Salary) your Basic Salary after a Change in Control
                           in an amount which at least equals, on a percentage
                           basis, the average percentage increase in Basic
                           Salary for all executive and senior officers of the
                           Company, in like positions, which were effected in
                           the preceding twelve months;

                                    (C) the relocation of the Company's
                           principal executive offices to a location outside the
                           Columbus metropolitan area or the relocation of you
                           by the Company to any place other than the location
                           at which you performed duties prior to a Change in
                           Control, except for required travel on the Company's
                           business to an extent consistent with business travel
                           obligations at the time of a Change in Control;

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                                    (D) the failure of the Company to continue
                           in effect, or continue or materially reduce your
                           participation in, any incentive, bonus or other
                           compensation plan in which you participate, including
                           but not limited to the Company's stock option plans,
                           unless an equitable arrangement (embodied in an
                           ongoing substitute or alternative plan), has been
                           made or offered with respect to such plan in
                           connection with the Change in Control;

                                    (E) the failure by the Company to continue
                           to provide you with benefits substantially similar to
                           those enjoyed or to which you are entitled under any
                           of the Company's pension, profit sharing, life
                           insurance, medical, dental, health and accident, or
                           disability plans at the time of a Change in Control,
                           the taking of any action by the Company which would
                           directly or indirectly materially reduce any of such
                           benefits or deprive you of any material fringe
                           benefit enjoyed or to which you are entitled at the
                           time of the Change in Control, or the failure by the
                           Company to provide the number of paid vacation and
                           sick leave days to which you are entitled on the
                           basis of years of service with the Company in
                           accordance with the Company's normal vacation policy
                           in effect on the date hereof;

                                    (F) the failure of the Company to obtain a
                           satisfactory agreement from any successor or assign
                           of the Company to assume and agree to perform this
                           Agreement;

                                    (G) any request by the Company that you
                           participate in an unlawful act or take any action
                           constituting a breach of your professional standard
                           of conduct; or

                                    (H) any breach of this Agreement on the part
                           of the Company.

                           Notwithstanding anything in this Section to the
                           contrary, your right to terminate your employment
                           pursuant to this Section shall not be affected by
                           incapacity due to physical or mental illness.

                           (viii) Upon any termination or expiration of this
                  Agreement or any cessation of your employment hereunder, the
                  Company shall have no further obligations under this Agreement
                  and no further payments shall be payable by the Company to
                  you, except as provided in Section 9 above and except as
                  required under any benefit plans or arrangements maintained by
                  the Company and applicable to you at the time of such
                  termination, expiration or cessation of your employment.

                           (ix) Enforcement of Agreement. The Company is aware
                  that upon the occurrence of a Change in Control, the Board of
                  Directors or a shareholder of the Company may then cause or
                  attempt to cause the Company to refuse to comply with its
                  obligations under this Agreement, or may cause or attempt to
                  cause the Company to institute, or may institute litigation
                  seeking to have this Agreement declared unenforceable, or may
                  take or attempt to take other action to deny you the benefits
                  intended under this Agreement. In these circumstances, the
                  purpose of this

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                  Agreement could be frustrated. Accordingly, if following a
                  Change in Control it should appear to you that the Company has
                  failed to comply with any of its obligations under Section 9
                  of this Agreement or in the event that the Company or any
                  other person takes any action to declare Section 9 of this
                  Agreement void or enforceable, or institutes any litigation or
                  other legal action designed to deny, diminish or to recover
                  from you the benefits entitled to be provided to you under
                  Section 9, and that you have complied with all your
                  obligations under this Agreement, the Company authorizes you
                  to retain counsel of your choice, at the expense of the
                  Company as provided in this Section 9(e)(ix), to represent you
                  in connection with the initiation or defense of any pre-suit
                  settlement negotiations, litigation or other legal action,
                  whether such action is by or against the Company or any
                  Director, officer, shareholder, or other person affiliated
                  with the Company, in any jurisdiction. Notwithstanding any
                  existing or prior attorney-client relationship between the
                  Company and such counsel, the Company consents to you entering
                  into an attorney-client relationship with such counsel, and in
                  that connection the Company and you agree that a confidential
                  relationship shall exist between you and such counsel, except
                  with respect to any fee and expense invoices generated by such
                  counsel. The reasonable fees and expenses of counsel selected
                  by you as hereinabove provided shall be paid or reimbursed to
                  you by the Company on a regular, periodic basis upon
                  presentation by you of a statement or statements prepared by
                  such counsel in accordance with its customary practices, up to
                  a maximum aggregate amount of $50,000. Any legal expenses
                  incurred by the Company by reason of any dispute between the
                  parties as to enforceability of Section 9 or the terms
                  contained in Section 9(f), notwithstanding the outcome of any
                  such dispute, shall be the sole responsibility of the Company,
                  and the Company shall not take any action to seek
                  reimbursement from you for such expenses.

                  (f) The noncompetition periods described in Section 8 of this
Agreement shall be suspended while you engage in any activities in breach of
this Agreement. In the event that a court grants injunctive relief to the
Company for your failure to comply with Section 8, the noncompetition period
shall begin again on the date such injunctive relief is granted.

                  (g) Nothing contained in this Section 9 shall be construed as
limiting your obligations under Sections 6, 7, or 8 of this Agreement concerning
Confidential Information, Inventions, or Noncompetition and Nonsolicitation.

         10. REMEDIES; VENUE; PROCESS.

                  (a) You hereby acknowledge and agree that the Confidential
Information disclosed to you prior to and during the term of this Agreement is
of a special, unique and extraordinary character, and that any breach of this
Agreement will cause the Company irreparable injury and damage, and consequently
the Company shall be entitled, in addition to all other legal and equitable
remedies available to it, to injunctive and any other equitable relief to
prevent or cease a breach of Sections 6, 7, or 8 of this Agreement without
further proof of harm and entitlement; that the terms of this Agreement, if
enforced by the Company, will not unduly impair your ability to earn a living or
pursue your vocation; and further, that the Company may cease paying any
compensation and

                                      -11-
<PAGE>   12

benefits under Section 9 if you fail to comply with this Agreement, without
restricting the Company from other legal and equitable remedies. The parties
agree that the prevailing party in litigation concerning a breach of this
Agreement shall be entitled to all costs and expenses (including reasonable
legal fees and expenses) which it incurs in successfully enforcing this
Agreement and in prosecuting or defending any litigation (including appellate
proceedings) concerning a breach of this Agreement.

                  (b) The parties agree that jurisdiction and venue in any
action brought pursuant to this Agreement to enforce its terms or otherwise with
respect to the relationships between the parties shall properly lie in either
the United States District Court for the Southern District of Ohio, Eastern
Division, Columbus, Ohio, or the Court of Common Pleas of Franklin County, Ohio.
Such jurisdiction and venue is exclusive, except that the Company may bring suit
in any jurisdiction and venue where jurisdiction and venue would otherwise be
proper if you may have breached Sections 6, 7, or 8 of this Agreement. The
parties further agree that the mailing by certified or registered mail, return
receipt requested, of any process required by any such court shall constitute
valid and lawful service of process against them, without the necessity for
service by any other means provided by statute or rule of court.

         11. EXIT INTERVIEW. Prior to Employment Separation, you shall attend an
exit interview if desired by the Company and shall, in any event, inform the
Company at the earliest possible time of the identity of your future employer
and of the nature of your future employment.

         12. NO WAIVER. Any failure by the Company to enforce any provision of
this Agreement shall not in any way affect the Company's right to enforce such
provision or any other provision at a later time.

         13. SAVING. If any provision of this Agreement is later found to be
completely or partially unenforceable, the remaining part of that provision of
any other provision of this Agreement shall still be valid and shall not in any
way be affected by the finding. Moreover, if any provision is for any reason
held to be unreasonably broad as to time, duration, geographical scope, activity
or subject, such provision shall be interpreted and enforced by limiting and
reducing it to preserve enforceability to the maximum extent permitted by law.

         14. NO LIMITATION. You acknowledge that your employment by the Company
may be terminated at any time by the Company or by you with or without cause in
accordance with the terms of this Agreement. This Agreement is in addition to
and not in place of other obligations of trust, confidence and ethical duty
imposed on you by law.

         15. GOVERNING LAW. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Ohio without reference to its choice of
law rules.

         16. FINAL AGREEMENT. This Agreement replaces any existing agreement
between you and the Company relating to the same subject matter and may be
modified only by an agreement in writing signed by both you and a duly
authorized representative of the Company.

                                      -12-
<PAGE>   13

         17. FURTHER ACKNOWLEDGMENTS. YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED A
COPY OF THIS AGREEMENT, THAT YOU HAVE READ AND UNDERSTOOD THIS AGREEMENT, THAT
YOU UNDERSTAND THIS AGREEMENT AFFECTS YOUR RIGHTS, AND THAT YOU HAVE ENTERED
INTO THIS AGREEMENT VOLUNTARILY.

                                       APPLIED INNOVATION INC.

                                       By: /s/ Robert L. Smialek
                                           -------------------------------------
                                           Robert L. Smialek,
                                           President and Chief Executive Officer

                                       EXECUTIVE:

                                       /s/ Michael P. Keegan
                                       -----------------------------------------
                                       Michael P. Keegan

                                      -13-<PAGE>   1
                                                                    Exhibit 4.4

EXCEPT AS PROVIDED IN SECTION 10(B) HEREOF, THIS WARRANT MAY NOT BE TRANSFERRED.
THE SHARES OF COMMON STOCK ISSUED OR ISSUABLE UPON EXERCISE OF THIS WARRANT ARE
SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN SECTION 6 OF THIS WARRANT.

                           WARRANT FOR THE PURCHASE OF
                             SHARES OF COMMON STOCK
                                       OF
                          INTERACT COMMERCE CORPORATION
                            (A DELAWARE CORPORATION)

                DATED AS OF AUGUST 4, 2000 (THE "EFFECTIVE DATE")

         VOID AFTER 5:00 P.M., CENTRAL STANDARD TIME, ON AUGUST 4, 2005

         Interact Commerce Corporation, a Delaware corporation (the "Company"),
hereby certifies that Sprint Spectrum L.P. a Delaware limited partnership
(together with its Affiliates (as defined below), "Sprint"), is entitled,
subject to the vesting schedule set forth in Section 2 hereof and the other
terms and conditions set forth herein, to purchase from the Company 200,000
shares of Common Stock of the Company at the Purchase Price (as defined below)
then in effect.

1.       DEFINITIONS.

         "Affiliate" means any entity that, directly or indirectly through one
or more intermediaries, is controlled by, or is under common control with,
Sprint Spectrum, L.P.

         "Common Stock" means the Company's $.001 par value per share common
stock and stock of any other class of the equity of the Company into which such
shares may hereafter have been changed.

         "Conversion Price" means the price per share for which Common Stock is
issuable upon the conversion or exchange of Convertible Securities, determined
by dividing (i) the total amount, if any, received or receivable by the Company
as consideration for the issuance of such Convertible Securities, plus the
minimum aggregate amount of additional consideration payable to the Company upon
the conversion or exchange of such Convertible Securities, by (ii) the total
maximum number of shares of Common Stock issuable upon the conversion or
exchange of all such Convertible Securities.

         "Convertible Securities" mean any securities issued by the Company or
an affiliate of the Company which are convertible into or exchangeable for,
directly or indirectly, shares of Common Stock.

         "Exercise Term" means any time between the date hereof and August 4,
2005.

                                       1
<PAGE>   2
         "Internet Sales Agency Program" means the program described in Exhibit
E of the Services Agreement.

         "Market Price" of a share of Common Stock on any day means (i) the
average closing price of a share of Common Stock for the twenty (20) consecutive
trading days preceding such day on the principal national securities exchange on
which the shares of Common Stock are listed or admitted to trading, or (ii) if
not listed or admitted to trading on any national securities exchange, the
average of the last reported sales price for the twenty (20) consecutive trading
days preceding such day on the Nasdaq National Market, or (iii) if not traded on
the Nasdaq National Market, the average of the highest reported bid and the
lowest reported asked prices on each of the twenty (20) consecutive trading days
preceding such day in the over-the-counter market as furnished by the National
Association of Securities Dealers automated quotation system, or (iv) if such
firm is not then engaged in the business of reporting such prices, as furnished
by any similar firm then engaged in such business selected by the Company or, if
there is no such firm, as furnished by any member of the National Association of
Securities Dealers, Inc. selected by the Company or, if the shares of Common
Stock are not publicly traded, the Market Price for such day shall be determined
by the Company's Board of Directors acting in good faith.

         "New Security" shall have the meaning set forth in Section 4(b) hereof.

         "Purchase Price" shall have the meaning set forth in Section 3(b)
hereof.

         "Registered Holder" means Sprint Spectrum L.P., a Delaware limited
partnership, together with its successors and permitted assigns.

         "Services Agreement" means that certain Wireless Internet Services
Agreement, dated as of August 4, 2000, between the Company and Sprint Spectrum
L.P.

         "Warrant Stock" means the shares of Common Stock or New Securities
acquired or acquirable upon exercise of this Warrant, any shares of Common Stock
or New Securities issued as (or issuable upon the conversion or exercise of any
warrant, right or other security that is issued as) a dividend or other
distribution with respect to, or in exchange for, or in replacement of, such
shares of Common Stock, or any other interest in the Company that has been or
may be acquired upon exercise of this Warrant.

2.       VESTING SCHEDULE.

         This Warrant shall first become exercisable by the Registered Holder,
and shall remain exercisable during the Exercise Term, in accordance with the
following vesting schedule:

         (a) On such date as the Sprint Agreement becomes effective, then 50,000
shares of Common Stock or New Securities, as the case may be, shall be
exercisable by the Registered Holder on such date.

                                       2
<PAGE>   3
         (b) In the event that, at any time during the 12-month period beginning
as of the Effective Date, both of the events listed in Section 2(b)(i)and
2(b)(ii) below occur, then 20,000 shares of Common Stock or New Securities, as
the case may be, shall be exercisable by the Registered Holder on the date that
the later of the two (2) events occurs:

                  (i) Sprint issues a press release substantially in the form of
Exhibit A hereto, and

                  (ii) Sprint places the Company's link within the "Portal"
category (or other relevant category) on Sprint's wireless web service.

         (c) In the event that, at any time during the 12-month period beginning
as of the Effective Date, Sprint shall have conducted one or more of the
promotions described in Sections 2(c)(i), 2(c)(ii), 2(c)(iii) and 2(c)(iv) and
such promotion continues for at least 3 consecutive calendar months (each, a
Promotional Period"), then 10,000 shares of Common Stock or New Securities, as
the case may be, shall become exercisable on the first day immediately following
the end of each such Promotion Period; provided, however, that the maximum
number of shares of Common Stock or New Securities, as the case may be, that
shall become exercisable shall not exceed 10,000 during any consecutive 3-month
period.

                  (i) Sprint conducts a promotion on the Company's website in
accordance with the Internet Sales Agency Program which offers each qualified
customer who signs up for Sprint PCS service a $50 credit on such customer's
first month's Sprint PCS bill

                  (ii) Sprint conducts a promotion on the Company's website in
accordance with the Internet Sales Agency Program which offers each qualified
customer who signs up for Sprint PCS service a free connection kit for such
customer's Sprint PCS phone.

                  (iii) Sprint conducts a promotion on the Company's website in
accordance with the Internet Sales Agency Program which offers each qualified
customer who signs up for Sprint PCS service a free accessory kit for such
customer's Sprint PCS phone.

                  (iv) Sprint conducts a promotion on the Company's website in
accordance with the Internet Sales Agency Program which offers each qualified
customer who signs up for Sprint PCS service six months free Sprint wireless web
service.

         (d) In the event that, at any time during the 12-month period beginning
as of the Effective Date,

                  (i) Sprint conducts a direct mail (or similar) campaign to
potential customers, the number of such customers to be mutually agreed upon by
the parties in each of such party's reasonable discretion, promoting the
products and/or services of the Company and Sprint (such potential customers
being neither current Sprint customers nor current customers of the Company and
the nature of such campaign to be determined by Sprint in it sole discretion),
then 20,000 shares of Common Stock or New Securities, as the case may be, shall
be exercisable by the Registered Holder on the day after such campaign is
completed.

                                       3
<PAGE>   4
                  (ii) Sprint conducts a direct mail (or similar) campaign to
Sprint's current small office and home office customers promoting the Company's
products and/or services, the nature of such campaign to be determined by Sprint
in it sole discretion, then 20,000 shares of Common Stock or New Securities, as
the case may be, shall be exercisable by the Registered Holder on the day after
such campaign is completed.

                  (iii) Sprint conducts a direct mail (or similar) campaign to
the Company's customers which promotes Sprint's services and/or products, the
nature of such campaign to be determined by Sprint in it sole discretion, then
20,000 shares of Common Stock or New Securities, as the case may be, shall be
exercisable by the Registered Holder on the day after such campaign is
completed.

                  (iv) Sprint conducts a program promoting the Company's
services and/or products utilizing one of the Sprint PCS national distribution
channels, the choice of channel and the type of promotion to be determined by
Sprint in its sole discretion, then 10,000 shares of Common Stock or New
Securities, as the case may be, shall be exercisable by the Registered Holder on
the day after such promotional program is completed.

                  (v) Sprint conducts a program promoting the Company's services
and/or products within at least 75% of the Sprint PCS retail stores, the
location and number of stores and the type of promotion to be determined by
Sprint in its sole discretion, then 10,000 shares of Common Stock or New
Securities, as the case may be, shall be exercisable by the Registered Holder on
the day after such promotional program is completed.

                  (vi) Sprint conducts a program promoting the Company's
services and/or products within at least one-half of the Radioshack retail
stores located in ten of the 15 largest markets in which Radioshack stores are
located, the location and number of stores and the type of promotion to be
determined by Sprint in its sole discretion, then 10,000 shares of Common Stock
or New Securities, as the case may be, shall be exercisable by the Registered
Holder on the day after such promotional program is completed.

3.       EXERCISE OF WARRANT.

         (a) In addition to the Registered Holder's rights pursuant to Section
3(e) hereof, this Warrant may be exercised at any time during the Exercise Term
by the Registered Holder in whole or in part, and from time to time, by
surrendering this Warrant, with the purchase form appended hereto as Exhibit C
duly executed by such Registered Holder, at the principal office of the Company,
or at such other office or agency as the Company may designate, accompanied by
payment in full of the Purchase Price payable in respect of the number of shares
of Warrant Stock purchased upon such exercise. The Purchase Price may be paid by
a check, or by the surrender of shares of Warrant Stock or Common Stock having a
Market Price as of the date of the surrender equal to the Purchase Price.

                                       4
<PAGE>   5
         (b) As used herein, the term "Purchase Price," with respect to a share
of Warrant Stock, shall mean the Market Price of a share of Common Stock on
August 4, 2000.

         (c) Each exercise of this Warrant shall be deemed to have been effected
immediately prior to the close of business on the day on which this Warrant
shall have been surrendered to the Company as provided in subsection 3(a) above.
At such time, the person(s) or entity(ies) in whose name or names any
certificates for Warrant Stock shall be issuable upon such exercise as provided
in subsection 3(d) below shall be deemed to have become the holder or holders of
record of the Warrant Stock represented by such certificates.

         (d) As soon as practicable after each exercise of this Warrant in whole
or in part, and in any event within ten (10) days thereafter, the Company at its
expense will cause to be issued in the name of, and delivered to, the Registered
Holder, or, subject to the terms and conditions hereof, as the Registered Holder
(upon payment by the Registered Holder of any applicable transfer taxes) may
direct:

                  (i) a certificate or certificates for the number of full
         shares of Warrant Stock to which such Registered Holder shall be
         entitled upon such exercise plus, in lieu of any fractional share to
         which such Registered Holder would otherwise be entitled, cash in an
         amount determined pursuant to Section 5 hereof; and

                  (ii) in case such exercise is in part only, a new warrant or
         warrants (dated the date hereof) of like tenor, with a new Warrant
         Schedule attached thereto reflecting the number of shares of Warrant
         Stock equal (without giving effect to any adjustment therein) to the
         number of such shares reflected in the Warrant Schedule attached as
         Exhibit B to this Warrant on the date of such exercise minus the number
         of such shares purchased by the Registered Holder upon such exercise as
         provided in subsection 3(a) above.

         (e) Net Issue Election. The Registered Holder may elect to receive,
without the payment by the Registered Holder of any additional consideration,
shares equal to the value of this Warrant or any portion hereof by the surrender
of this Warrant or such portion to the Company, with the net issue election
notice (attached hereto as Exhibit D) duly executed, at the office of the
Company. Thereupon, the Company shall issue to the Registered Holder such number
of fully paid and nonassessable shares of Common Stock as is computed using the
following formula:

                                   X = Y (A-B)
                                       -------
                                        A

where

         X  =     the number of shares to be issued to the Registered Holder
                  pursuant to this Section 3(e).

         Y  =     the number of shares covered by this Warrant in respect of
                  which the net issue election is made pursuant to this Section
                  3(e).

                                       5
<PAGE>   6
         A  =     the Market Price of one share of Common Stock at the time
                  the net issue election is made pursuant to this Section 3(e).

         B  =     the Purchase Price in effect under this Warrant for one
                  share of Common Stock at the time the net issue election is
                  made pursuant to this Section 3(e).

The Company shall promptly respond in writing to an inquiry by the Registered
Holder as to the Market Price of one share of Common Stock.

4.       ADJUSTMENTS.

         (a) Adjustment of Purchase Price Amount Upon Stock Splits, Dividends,
Distributions and Combinations. In case the Company shall at any time subdivide
its outstanding shares of Common Stock into a greater number of shares or issue
a stock dividend or make a distribution with respect to outstanding shares of
Common Stock, the Purchase Price for all shares of Warrant Stock issuable
immediately prior to such subdivision or stock dividend or distribution shall be
proportionately reduced; and conversely, in case the shares of Common Stock of
the Company shall be combined into a smaller number of shares, the Purchase
Price for all shares of Warrant Stock issuable immediately prior to such
combination shall be proportionately increased.

         (b) Reorganization or Reclassification. In case of any capital
reorganization, or of any reclassification of the capital stock, of the Company
(other than a change in par value or from par value to no par value or from no
par value to par value), or any consolidation or merger of the Company with
another corporation or other entity, or the sale of all or substantially all of
the assets of the Company which shall be effected in a manner by which the
holders of Common Stock shall be entitled (either directly or upon subsequent
liquidation) to equity securities with respect to or in exchange for Common
Stock, then this Warrant shall, after such capital reorganization,
reclassification of capital stock, merger or sale of assets, entitle the
Registered Holder hereof to purchase the kind and number of shares of stock or
other securities of the Company, or of the entity resulting from such
consolidation (the "Surviving Entity") to which the Registered Holder hereof
would have been entitled if it had held the Common Stock issuable upon the
exercise hereof immediately prior to such capital reorganization,
reclassification of capital stock, consolidation, merger or sale of assets. If
the holders of Common Stock shall be entitled to cash, cash equivalents,
nonequity securities or other property of the Company or the Surviving Entity
("Property") with respect to or in exchange for Common Stock, then this Warrant
shall, after such capital reorganization, reclassification of capital stock,
merger or sale of assets, entitle the Registered Holder hereof to purchase the
kind of issued and outstanding common stock or other equity security of the
Company or the Surviving Entity ("New Security"), as the case may be, which is
most similar to the Common Stock, which shall be in an amount equal to a number
of shares of the New Security having a Market Price on the effective date of
such capital reorganization, reclassification of capital stock, merger or sale
of assets equal to the Market Price on such effective date of the Property
issued per share of the Common Stock. The Company shall not effect any such
capital reorganization, reclassification of capital stock, consolidation, merger
or sale of assets unless prior to the consummation thereof the Surviving Entity
(if other than the Company) resulting therefrom or the

                                       6
<PAGE>   7
corporation purchasing such assets shall, by written instrument executed and
mailed to the Registered Holder hereof at the last address of such Registered
Holder appearing on the books of the Company, (i) assume the obligation to
deliver to such Registered Holder such shares of stock, securities or assets as,
in accordance with the foregoing provisions, such Registered Holder may be
entitled to purchase, and (ii) agree to be bound by all the terms of this
Warrant.

         (c) Intentionally Deleted.

         (d) Consideration for Stock. Intentionally deleted.

         (e) Computation of Adjustments. Upon each computation of an adjustment
in the Purchase Price for any share of Warrant Stock issuable hereunder, the
Purchase Price for all such shares of Warrant Stock shall be computed to the
nearest cent (i.e., fractions of .5 of a cent, or greater, shall be rounded to
the highest cent) and the shares which may be purchased upon exercise of this
Warrant shall be calculated to the nearest whole share (i.e., fractions of one
half of a share, or greater, shall be treated as being a whole share). No such
adjustment shall be made, however, if the change in the Purchase Price for any
such share of Warrant Stock would be less than $.01 per share, but any such
lesser adjustment shall be made at the time and together with the next
subsequent adjustment which, together with any adjustments carried forward,
shall amount to $.01 per share or more.

         (f) Certain Prohibited Adjustments. Notwithstanding anything herein to
the contrary, the Company agrees not to enter into any transaction which would
cause an adjustment of the Purchase Price to less than the par value of the
Common Stock.

         (g) Notice of Adjustment of Purchase Price. Upon any adjustment of the
Purchase Price for any share of Warrant Stock issuable hereunder or in the
occurrence of any event which should result in an adjustment to the Purchase
Price for any share of Warrant Stock issuable hereunder, the Company shall
promptly give written notice thereof to the Registered Holder of this Warrant,
which notice shall state the Purchase Price resulting from such adjustment and
the increase or decrease, if any, in the number of shares purchasable at such
price upon the exercise of this Warrant and the increase or decrease, if any, in
the number of shares constituting the Maximum Issuance, setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based.

5.       FRACTIONAL SHARES.

         The Company shall not be required to issue fractional shares upon the
exercise of this Warrant. If the Registered Holder would be entitled upon the
exercise of any rights evidenced hereby to receive a fractional interest in a
share of Common Stock, the Company shall, upon such exercise, pay in lieu of
such fractional interest an amount in cash equal to the value of such fractional
interest, calculated based upon the Market Price as of the date this Warrant is
exercised.

6.       LIMITATION ON SALES; REGISTRATION.

                                       7
<PAGE>   8
         (a) The Registered Holder, and each subsequent holder of this Warrant,
if any, acknowledges that this Warrant and the Warrant Stock have not been
registered under the Securities Act of 1933, as now in force or hereafter
amended, or any successor legislation (the "Act"), and agrees not to sell,
pledge, distribute, offer for sale, transfer or otherwise dispose of this
Warrant or any Warrant Stock issued upon its exercise in the absence of (i) an
effective registration statement under the Act as to this Warrant or such
Warrant Stock and registration or qualification of this Warrant or such Warrant
Stock under any applicable Blue Sky or state securities law then in effect, or
(ii) an opinion of counsel, reasonably satisfactory to the Company and the
Registered Holder, that such registration and qualification are not required.
Without limiting the generality of the foregoing, unless the offering and sale
of the Warrant Stock to be issued upon the particular exercise of this Warrant
shall have been effectively registered under the Act, the Company shall be under
no obligation to issue the shares covered by such exercise unless and until the
Registered Holder shall have executed an investment letter in form and substance
satisfactory to the Company, including a warranty at the time of such exercise
that it is acquiring such shares for its own account, for investment and not
with a view to, or for sale in connection with, the distribution of any such
shares, in which event the Registered Holder shall be bound by the provisions of
a legend to such effect on the certificate(s) representing the Warrant Stock. In
addition, without limiting the generality of the foregoing, the Company may
delay issuance of the Warrant Stock until completion of any action or obtaining
of any consent, which the Company deems necessary under any applicable law
(including without limitation state securities or "blue sky" laws).

         (b) Piggyback Registrations.

                           (i) Right to Piggyback. Whenever the Company proposes
to register any of its securities under the Act in connection with the public
offering of such securities solely for cash (other than (i) a registration
relating solely to the sale of securities to participants in a Company stock
plan; (ii) a registration on any form which does not include substantially the
same information as would be required to be included in a registration statement
covering the sale of Common Stock; or (iii) a registration in which the only
Common Stock being registered is Common Stock issuable upon conversion of debt
securities which are also being registered), the Company will give prompt
written notice to the Registered Holder of its intention to effect such
registration and will, to the extent permitted under Section 6(c) below, include
in such registration all Warrant Stock with respect to which the Company has
received a written request from the Registered Holder for inclusion therein
within 15 days after the receipt of the Company's notice. The Company will pay,
or cause to be paid, the registration expenses of the Registered Holder in all
piggyback registrations to the extent provided in Section 6(d) below. The
registration rights under this Section 6(b) shall terminate and be of no further
force or effect at such time as of the Warrant Shares held by the Registered
Holder may be sold under Rule 144 during any 90 day period.

                           (ii) Underwritten Offering. If a piggyback
registration is an underwritten primary or secondary registration on behalf of
the Company and/or other holders of the Common Stock, and the managing
underwriters advise the Company in writing that in their opinion the number of
shares requested to be included in such registration (including the Warrant
Stock and any other shares of Common Stock held by holders with registration
rights, collectively, with the Registered Holder, the "Holders") exceeds the
number which can be sold in such offering without

                                       8
<PAGE>   9
materially and adversely affecting the marketability of the offering, the
Company will promptly furnish the Registered Holder with a copy of the
underwriter's written determination and may, by written notice to the Registered
Holder, include in such registration (i) first, the securities the Company
proposes to sell, and (ii) second, the Common Stock requested to be included in
such registration pro rata among the Holders on the basis of the number of
shares owned by each such Holder that such Holder has requested be registered;
provided that notwithstanding the foregoing, if any of the Prior Rights
Agreements (as defined in Section 6(c) below shall apply, then the determination
of the participation of shares in the offering shall be made in accordance with
the Prior Rights Agreements.

                           (iii) Underwriting Agreement. In any registration in
which the Warrant Stock is to be included, the Company shall not be required to
include the Registered Holder's securities in such underwriting unless the
Registered Holder accepts the terms of the underwriting as agreed upon by the
Company and the underwriters, whereupon the Registered Holder shall be a party
to the underwriting agreement entered into by the Company in connection
therewith, and the representations and warranties by, and the other agreements
on the part of, the Company and for the benefit of the underwriters shall also
be made to and for the benefit of the Registered Holder.

                           (iv) Documents, etc. The Company shall provide to the
Registered Holder any and all documents, statements, opinions and forms as the
Registered Holder reasonably deems necessary for the Registered Holder to
participate in any piggyback registrations and to facilitate the disposition of
the Warrant Stock covered by such registration pursuant to the terms and
conditions of this Agreement and the applicable securities laws.

                           (v) Indemnification. In the event of any piggyback
registration of any Warrant Stock under the Securities Act, and in connection
with any registration statement or any other disclosure document pursuant to
which securities of the Company are sold, (i) the Company will, and hereby does,
jointly and severally, indemnify and hold harmless the Registered Holder, its
directors, officers, fiduciaries, and agents (each, a "Covered Person") against
any losses, claims, damages or liabilities, joint or several, to which such
Covered Person may be or become subject under the Act, any other securities or
other laws of any jurisdiction, common law or otherwise, insofar as such losses,
claims, damages or liabilities (or actions or proceedings in respect thereof)
arise out of or are based upon (1) any untrue statement or alleged untrue
statement of any material fact contained or incorporated by reference in any
registration statement under the Act, any preliminary prospectus or final
prospectus included therein, or any amendment or supplement thereto, or any
document incorporated by reference therein, or any other such disclosure
document, or (2) any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statement therein
not misleading, and will reimburse such Covered Person for any legal or any
other expenses incurred by in connection with investigating or defending any
such loss, claim, damage, liability, action or proceeding ((1) or (2) being a
"Violation"); provided, however, the Company shall not be liable to any Covered
Person in any such case to the extent that any such loss, claim, damage,
liability, action or proceeding arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, any such preliminary prospectus, final prospectus,
amendment or supplement, any document incorporated by reference or other such
disclosure document in reliance upon and in

                                       9
<PAGE>   10
conformity with written information furnished to the Company through an
instrument duly executed by such Covered Person specifically stating this it is
for use in the preparation thereof; and (ii) the Registered Holder will
indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the Act, any underwriter, any other
Holder selling securities in such registration statement or any of such Holder's
officers and directors, and any person who controls such underwriter or other
Holder within the meaning of the Act of 1934 Act, against any losses, claims,
damages, or liabilities (joint or several) to which the Company or any such
director, officer, controlling person, underwriter or other such Holder,
director, officer or controlling person of such other Holder may become subject,
under the Act, the 1934 Act or other federal or state law, insofar as such
losses, claims, damages, or liabilities (or actions in respect thereto) arise
out of or are based upon any Violation, in each case to the extent (and only to
the extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by such Registered Holder expressly for use in
connection with such registration; and each such Registered Holder will pay, as
incurred, any legal or other expenses reasonably incurred by the Company or any
such director, officer, controlling person, underwriter or other Holder,
officer, director or controlling person of such Holder, in connection with
investigating or defending any such loss, claim, damage, liability, or action.
The foregoing indemnity agreements of the Company and the Registered Holder are
subject to the condition that, insofar as they relate to any Violation made in a
preliminary prospectus but eliminated or remedied in the amended prospectus on
file with the SEC at the time the registration statement in question becomes
effective or the amended prospectus filed with the SEC pursuant to SEC Rule
424(b) (the "Final Prospectus"), such indemnity agreement shall not inure to the
benefit of any person if a copy of the Final Prospectus was furnished to the
indemnified party and was not furnished to the person asserting the loss,
liability, claim or damage at or prior to the time such action is required by
the Act.

         (c) Prior Rights Agreements. The Registered Holder acknowledges that
the Company has previously granted certain registration rights to certain
investors in the Company as described in that Amended and Restated Investors'
Rights Agreement dated June 4, 1998, as amended, and has granted certain
additional limited rights to certain shareholders of Enact Incorporated, a
corporation which was acquired by the Company effective April 30, 1999 and to
certain shareholders of Opis Corporation, effective as of December 30, 1997, and
to Symantec Corporation effective as of December 31, 1999, and to certain
subordinated debt holders effective as of December 31, 1999 (all such agreements
collectively, the "Prior Rights Agreements"). The Registered Holder further
acknowledges and agrees that the registration rights set forth in Section 6(a)
hereof are subordinate and subject to the registration rights granted in the
Prior Rights Agreements and that if the exercise of such registration rights by
the Registered Holder under Section 6(a) would by the terms of a Prior Rights
Agreement require the prior consent of any party or parties, other than the
Company, to the Prior Rights Agreement, then the Registered Holder shall not be
entitled to exercise the registration right without obtaining such consent.

         (d) All fees and expenses incurred by the Company in connection with
the performance of its obligation to register the Warrant Stock pursuant to
subsection 6(b) shall be borne by the Company; provided that any fees and
expenses of the holder or holders thereof or of its or their

                                       10
<PAGE>   11
counsel, and transfer taxes applicable to the sale of such Warrant Stock, shall
be borne by such holder or holders.

         (e) The Registered Holder agrees, if requested by the Company or the
representative of the underwriters underwriting an offering of Common Stock (or
other securities of the Company) from time to time, not to sell or otherwise
transfer or dispose of any Warrant Stock then held by the Registered Holder
during such reasonable period of time following the effective date of any
registration statement of the Company filed under the Act for the period of time
with respect to which a majority of the executive officers of the Company agree
not to sell shares of Common Stock (or other securities of the Company). Such
agreement shall be in writing in a form satisfactory to the Company and such
representative. The Company may impose stop-transfer instructions with respect
to the Warrant Stock subject to the foregoing restriction until the end of such
period.

7.       NOTICES OF RECORD DATE, ETC.

         In the event that:

         (a)      the Company shall set a record date for the purpose of
                  entitling or enabling the holders of its Common Stock (or
                  other stock or securities at the time deliverable upon the
                  exercise of this Warrant) to receive any dividend or other
                  distribution, or to receive any right to subscribe for or
                  purchase any shares of stock of any class or any other
                  securities, or to receive any other right, or

         (b)      there shall occur any capital reorganization of the Company,
                  any reclassification of the capital stock of the Company, any
                  consolidation or merger of the Company with or into another
                  corporation, or any transfer of all or substantially all of
                  the assets of the Company, or

         (c)      there shall occur any voluntary or involuntary dissolution,
                  liquidation or winding-up of the Company,

then, and in each such case, the Company will mail or cause to be mailed to the
Registered Holder a notice specifying, as the case may be, (i) the record date
for the purpose of such dividend, distribution or right, and stating the amount
and character of such dividend, distribution or right, (ii) the effective date
of such reorganization, reclassification, consolidation, merger or transfer or
(iii) the date of such dissolution, liquidation or winding-up is to take place,
and also specifying, if applicable, the date and time as of which the holders of
record of Common Stock (or such other stock or securities at the time
deliverable upon the exercise of this Warrant) shall be entitled to exchange
their shares of Common Stock (or such other stock or securities) for securities
or other property deliverable upon such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation or winding-up. Such
notice shall be mailed at least ten (10) days prior to the record date or
effective date for the event specified in such notice.

8.       RESERVATION OF STOCK.

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<PAGE>   12
         The Company will at all times reserve and keep available, solely for
issuance and delivery upon the exercise of this Warrant, such shares of Warrant
Stock and other stock, securities and property, as from time to time shall be
issuable upon the exercise of this Warrant.

9.       REPLACEMENT OF WARRANTS.

         Upon receipt of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of this Warrant and (in the case of loss,
theft or destruction) upon delivery of an indemnity agreement (with surety if
reasonably required) in an amount reasonably satisfactory to the Company, or (in
the case of mutilation) upon surrender and cancellation of this Warrant, the
Company will issue, in lieu thereof, a new Warrant of like tenor.

10.      TRANSFERS, ETC.

         (a) The Company will maintain a register containing the names and
addresses of the Registered Holders of this Warrant. The Registered Holder may
change its, his or her address as shown on the warrant register by written
notice to the Company requesting such change.

         (b) This Warrant shall not be transferable by the Registered Holder and
shall be exercisable only by the Registered Holder; provided that this Warrant
may be transferred in whole, but not in part, to, and may be exercisable by, any
company that directly, or indirectly through one or more intermediaries, is
controlled by, or is under common control with, the Registered Holder.

         (c) Until any transfer of this Warrant is made in the warrant register,
the Company may treat the Registered Holder of this Warrant as the absolute
owner hereof for all purposes; provided, however, that if and when this Warrant
is properly assigned in blank, the Company may (but shall not be obligated to)
treat the bearer hereof as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary.

11.      MAILING OF NOTICES, ETC.

         All notices and other communications from the Company to the Registered
Holder of this Warrant shall be mailed by first-class certified or registered
mail, postage prepaid, to the address furnished to the Company in writing by the
last Registered Holder of this Warrant who shall have furnished an address to
the Company in writing. All notices and other communications from the Registered
Holder of this Warrant or in connection herewith to the Company shall be mailed
by first-class certified or registered mail, postage prepaid, to the Company at
its offices at 8800 N. Gainey Center Drive, Suite 200, Scottsdale, AZ 85258,
Attention: Chief Financial Officer, , or such other address as the Company shall
so notify the Registered Holder.

12.      NO RIGHTS AS STOCKHOLDER.

         Until the exercise of this Warrant, the Registered Holder of this
Warrant shall not have or exercise any rights by virtue hereof as a stockholder
of the Company.

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<PAGE>   13
13.      CHANGE OR WAIVER.

         Any term of this Warrant may be changed or waived only by an instrument
in writing signed by the party against which enforcement of the change or waiver
is sought.

14.      HEADINGS.

         The headings in this Warrant are for purposes of reference only and
shall not limit or otherwise affect the meaning of any provision of this
Warrant.

15.      GOVERNING LAW.

         This Warrant shall be governed by and construed in accordance with the
laws of the State of Delaware.

                                                   Interact Commerce Corporation

                                                   By:
Dated: August 4, 2000                                   Name:
                                                        Title:

                                       13

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