Document:

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                                                                    Exhibit 10.3

                             MASTER SUPPLY AGREEMENT

                                 BY AND BETWEEN

                                   DIVEO, INC.

                                       AND

                    LUCENT TECHNOLOGIES WORLD SERVICES, INC.

                        Effective as of November 22, 1999

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Master Supply Agreement                              Diveo / Lucent Confidential
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                                TABLE OF CONTENTS

1.   AGREEMENT OVERVIEW......................................................1
1.1.   General...............................................................1
1.2.   Territory.............................................................1
1.3.   Strategic Relationship................................................2

2.   TERM....................................................................2
2.1.   Initial Term..........................................................2
2.2.   Extension.............................................................2

3.   PURCHASING AND ORDERING.................................................3
3.1.   Purchase Orders.......................................................3
3.2.   Administrative Changes................................................4
3.3.   Timing of Delivery....................................................4
3.4.   Cancellation and Rescheduling of Purchase Orders......................6
3.5.   Termination of Purchase Orders........................................7
3.6.   Demonstration Products................................................8

4.   SHIPPING AND DELIVERY...................................................8
4.1.   Incorrect Delivery....................................................8
4.2.   Purchase Order Tracking...............................................8
4.3.   Packing...............................................................8
4.4.   Labeling..............................................................9
4.5.   Factory Testing.......................................................9
4.6.   Shipping..............................................................9
4.7.   Title and Risk of Loss...............................................10

5.   DELIVERY OF SERVICES...................................................10
5.1.   Use of Third Parties.................................................10
5.2.   Key Lucent Positions and Management Escalation Process...............11
5.3.   Implementation Plans, Milestones and Milestone Dates.................12

6.   ACCEPTANCE TESTING AND FINAL ACCEPTANCE................................12
6.1.   Acceptance Testing...................................................12
6.2.   Acceptance Testing Failures, Cure Periods and Remedies...............13
6.3.   Acceptance...........................................................13

7.   SERVICE LEVELS.........................................................14
7.1.   General..............................................................14
7.2.   Failure to Perform...................................................14
7.3.   Periodic Reviews.....................................................14
7.4.   Measurement and Monitoring Tools.....................................15

8.   SOFTWARE LICENSES AND PROPRIETARY RIGHTS...............................15
8.1.   Licenses.............................................................15
8.2.   Proprietary Rights...................................................16
8.3.   Right to Resell and Sublicense.......................................17
8.4.   Technical Materials Availability.....................................18

9.   DIVEO RESPONSIBILITIES.................................................18
9.1.   Facilities and Resources.............................................18
9.2.   Savings Clause.......................................................18

10.    CHARGES..............................................................19
10.1.  General..............................................................19

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10.2.  Taxes................................................................19
10.3.  Incidental Expenses..................................................20
10.4.  Commitment...........................................................20
10.5.  Lucent-Provided Financing............................................21
10.6.  Competitive Pricing..................................................23

11.    INVOICING AND PAYMENT................................................24
11.1.  Invoicing............................................................24
11.2.  Payment Due..........................................................25
11.3.  Accountability.......................................................26
11.4.  Proration............................................................26
11.5.  Set Off..............................................................26
11.6.  Disputed Charges.....................................................27
11.7.  Encumbrances.........................................................27

12.    CONFIDENTIALITY......................................................27
12.1.  Confidential Information.............................................27
12.2.  Obligations..........................................................27
12.3.  Exclusions...........................................................28
12.4.  No Implied Rights....................................................28

13.    REPRESENTATIONS, WARRANTIES AND COVENANTS............................29
13.1.  Pass-Through Warranties..............................................29
13.2.  Ownership or Use.....................................................29
13.3.  Authorization........................................................29
13.4.  Inducements..........................................................29
13.5.  Work Standards.......................................................30
13.6.  Product Warranties...................................................30
13.7.  Discontinued Lucent Products.........................................31
13.8.  Compliance...........................................................32
13.9.  Integration..........................................................32
13.10. Documentation........................................................33
13.11. Viruses..............................................................33
13.12. Disabling Code.......................................................33
13.13. Year 2000............................................................34
13.14. Disclaimer...........................................................34

14.    TERMINATION..........................................................34
14.1.  Termination for Cause................................................34
14.2.  Termination by Lucent................................................35
14.3.  Termination Option for Lucent's Failure to Provide Financing.........35
14.4.  Disengagement Assistance.............................................35

15.    LIABILITY............................................................35
15.1.  General Intent.......................................................35
15.2.  Liability Restrictions...............................................36
15.3.  Force Majeure........................................................36

16.    INDEMNIFICATION......................................................37
16.1.  Indemnities by Lucent................................................37
16.2.  Indemnities by Diveo.................................................38
16.3.  Infringement.........................................................38
16.4.  Indemnification Procedures...........................................39

17.    DISPUTE RESOLUTION...................................................40
17.1.  Informal Dispute Resolution..........................................40

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17.2.  Litigation...........................................................40
17.3.  Continued Performance................................................41
17.4.  Governing Law........................................................41

18.    INSURANCE REQUIREMENTS...............................................41

19.    GENERAL..............................................................42
19.1.  Binding Nature and Assignment........................................42
19.2.  Entire Agreement.....................................................42
19.3.  Notices..............................................................42
19.4.  Counterparts.........................................................43
19.5.  Relationship of Parties..............................................43
19.6.  Severability.........................................................43
19.7.  Consents and Approval................................................43
19.8.  Waiver of Default....................................................44
19.9.  Cumulative Remedies..................................................44
19.10. Survival.............................................................44
19.11. Public Disclosures...................................................44
19.12. Service Marks........................................................45
19.13. Third Party Beneficiaries............................................45
19.14. Amendment............................................................45
19.15. Interpretation.......................................................45
19.16. Incorporation by Reference and Order of Precedence...................45
19.17. Right of Access......................................................46
19.18. Export Control.......................................................46

                               LIST OF SCHEDULES
              ----------------------------------------------------
              Glossary            Glossary of Defined Terms
              Schedule A          Scope of Deliverables
              Schedule B          Service Level Agreements
              Schedule C          Pricing
              Schedule D          Territory
              Schedule E          Product Documentation and Specifications
              Schedule F          Acceptance Test Plans
              Schedule G          Training
              Schedule H          Warranty Periods
              Schedule I          Key Lucent Personnel and Escalation Procedures
              Schedule J          Purchase Order and Change Order Process
              Schedule K          City Plan Template
              Schedule L          Diveo Requirements Document

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Master Supply Agreement               iii            Diveo / Lucent Confidential
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                             MASTER SUPPLY AGREEMENT

      This Master Supply Agreement (together with the Schedules attached hereto,
the "Agreement"), effective as of November 22, 1999 (the "Effective Date"), is
entered into by and between DIVEO, INC., a Delaware corporation with offices
located at 3201 New Mexico Avenue, NW, Suite 320, Washington, D.C. 20016 (and
together with its Affiliates, "Diveo" or "Buyer"), and LUCENT TECHNOLOGIES WORLD
SERVICES, INC., a Delaware corporation with offices located at 2333 Ponce De
Leon Boulevard, Coral Gables, Florida 33134 ("Lucent" or "Seller"). The Parties
agree that the following terms and conditions shall apply to the products and
services to be provided by Lucent under this Agreement in consideration of
certain payments to be made by Diveo. Capitalized terms used in this Agreement
are defined in the "Glossary of Defined Terms" attached hereto and incorporated
herein by this reference.

1.    AGREEMENT OVERVIEW

      1.1.  General.

            (a)   This Agreement sets forth the general terms and conditions
                  under which Diveo may purchase and receive Products and
                  Services from Lucent.

            (b)   The Parties acknowledge that this Agreement does not grant to
                  Lucent an exclusive privilege to sell or otherwise provide to
                  Diveo any or all of the Products or Services of the type
                  described in this Agreement. Diveo may contract with other
                  manufacturers and suppliers for the procurement of comparable
                  equipment, software, systems, deliverables or services. Lucent
                  is not restricted from selling the types of products or
                  services that may be purchased and ordered by Diveo hereunder
                  to other parties, except as provided in Section 8.2 with
                  respect to Developed Deliverables.

            (c)   Promptly following the Effective Date, Diveo shall cause its
                  Affiliates in the Territory to execute supplemental signature
                  pages to this Agreement in order to permit such Affiliates to
                  purchase Products and Services under this Agreement. Likewise,
                  Lucent shall, promptly following the Effective Date, cause its
                  Affiliates in the Territory to execute supplemental signature
                  pages to this Agreement to obligate such Affiliates to the
                  terms and conditions of this Agreement. Diveo and Lucent each
                  agree to guarantee the performance of their respective
                  Affiliates under this Agreement.

      1.2.  Territory.

            (a)   The Parties agree that as of the Effective Date the terms of
                  this Agreement shall apply with respect to Lucent's provision
                  of Products and Services within the Territory to Diveo and
                  Diveo's Affiliates.

            (b)   The Territory shall be expanded in the event that (i) the
                  Parties mutually agree to add a country to the list of those
                  countries comprising the Territory, in which case, the Parties
                  shall amend Schedule D to list such country or (ii) Lucent or
                  its Affiliates are directly selling in the normal course of
                  business in other countries in Latin America similar type
                  products and services as those that Diveo can

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                  purchase hereunder, in which case, Schedule D shall be deemed
                  to be amended to include such additional countries.

      1.3.  Strategic Relationship.

            (a)   Lucent-provided Roof Rights and Building Access. If requested
                  by Diveo, Lucent shall grant to Diveo, at no cost to either
                  Party, roof and interior rights to buildings in the Territory
                  owned by Lucent. In addition, Lucent shall, at no out of
                  pocket cost from Lucent to a third party, reasonably assist
                  Diveo in obtaining such rights with respect to any other
                  buildings leased or occupied by Lucent in the Territory.
                  Nothing herein shall obligate Lucent to violate any of its
                  existing real property lease agreements or any other agreement
                  or legal instrument to which Lucent is subject. Within ninety
                  (90) days of the Effective Date and semi-annually thereafter
                  upon Diveo's written request, Lucent shall provide Diveo with
                  a written list of all addresses of current real estate
                  properties owned or leased by Lucent in the Territory.

            (b)   Business Development. The Parties will provide reasonable
                  marketing support to each other in connection with business
                  opportunities of each Party. Such support may also include
                  co-marketing activities where Lucent would also sell Diveo
                  services and products in conjunction with Lucent services and
                  products.

            (c)   Network Element Recommendations. From time to time during the
                  Term of this Agreement, Lucent may provide, under a Purchase
                  Order Project Engineering and Professional Services (as
                  referred to in Schedule A). In the Event Diveo engages Lucent
                  to provide such Project Engineering and Professional Services
                  pursuant to an accepted Purchase Order, Lucent agrees to
                  consider what is in the best interests of Diveo in making
                  product and services recommendations, including recommending
                  Third Party Products and services where appropriate, even
                  where Lucent has competing products and services.

2.    TERM

      2.1.  Initial Term.

            The term of this Agreement shall begin upon the Effective Date and
            shall continue for a period of five years (the "Initial Term"),
            unless terminated earlier or extended in accordance with this
            Agreement.

      2.2.  Extension.

            This Agreement shall be extended for additional one year periods on
            the terms then in effect (each, an "Extended Term" and together with
            the Initial Term, the "Term") unless (i) a Party gives the other
            Party written notice sixty (60) days prior to the expiration of the
            Initial Term or Extended Term or (ii) the Agreement is otherwise
            terminated earlier in accordance with the terms of this Agreement.

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3.   PURCHASING AND ORDERING

      3.1.  Purchase Orders.

            (a)   All purchases of Products or Services shall be made by means
                  of orders (each, a "Purchase Order", such term to include any
                  changes made to the Purchase Order pursuant to the terms of
                  this Agreement, including the Change Order process set forth
                  in Schedule J) issued and executed by Diveo or any of Diveo's
                  Affiliates to Lucent (or Lucent's applicable Affiliate, in the
                  case of Services to be performed in one of the countries
                  forming part of the Territory) from time to time pursuant to
                  this Section and Schedule J. Diveo will not be liable to
                  Lucent for any charges, additional or otherwise, for Products
                  or Services provided by Lucent unless set forth in a Purchase
                  Order, or otherwise mutually agreed upon by the Parties in
                  writing.

            (b)   Lucent agrees to provide and deliver, and Diveo agrees to
                  purchase according to the terms of this Agreement, including
                  the Purchase Order and Change Order Process and lead times set
                  forth in Schedule J:

                  (i)   Any Product or Service listed in a Schedule hereto that
                        is specified by Diveo in a Purchase Order that conforms
                        to Subsection (f) of this Section; and

                  (ii)  Any other Product or Service specified by Diveo in a
                        Purchase Order that conforms to Subsection (f) of this
                        Section and is accepted or is deemed to be accepted by
                        Lucent in accordance with Subsection (d) below.

            (c)   Schedule J contains Purchase Order processes that the Parties
                  will utilize in connection with the issuance of Purchase
                  Orders. Part of this process includes Purchase Order
                  Initiation Forms (POIFs).

                  (i)   Within five (5) Business Days after Lucent's receipt of
                        a POIF, which Diveo may present in connection with the
                        potential supply of Third Party Content to be provided
                        on a cost plus basis or other Products and Services
                        (including those to be provided by Lucent) for which no
                        price is specified in Schedule C, Lucent shall
                        acknowledge its receipt of such POIF and shall provide
                        Diveo with its preliminary feedback regarding the
                        subject matter thereof.

                  (ii)  As soon as practicable, but in any event within fifteen
                        (15) business days after Lucent's receipt of the POIF,
                        Lucent shall, to the extent applicable, identify for
                        Diveo's approval: (1) the proposed third party
                        suppliers, (2) their associated price quotations, (3)
                        any other proposed terms relating to the purchase of
                        such Products or Services from such third parties, and,
                        (4) in the case of Products or Services to be provided
                        by Lucent, the proposed Lucent price (subject to and in
                        accordance with the pricing set forth in this
                        Agreement).

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                  (iii) If Lucent fails to comply with its obligations as
                        specified in this Subsection (c), but Diveo nevertheless
                        proceeds to order the related Third Party Content
                        through Lucent, Lucent shall only be entitled to an 8%
                        markup on such Third Party Content (i.e., Lucent shall
                        not be eligible for the full 20% markup that it
                        otherwise might have been able to earn with respect to
                        such purchase as provided in Schedule C); provided that
                        nothing in this provision shall be deemed to limit
                        Lucent's otherwise applicable obligations with respect
                        to such Third Party Content.

            (d)   To the extent that any Purchase Order is either consistent
                  with (i) the requirements of a City Plan approved by Lucent or
                  (ii) Lucent's ordering lead times set forth in Schedule J for
                  the Products and Services identified therein, then Lucent may
                  not reject such Purchase Order and shall be deemed to have
                  accepted a Purchase Order on the first business day
                  immediately following receipt of such Purchase Order.
                  Otherwise, Lucent shall be deemed to have accepted a Purchase
                  Order by close of business of the tenth (10th) business day
                  following receipt of such Purchase Order if Lucent has not
                  notified Diveo in writing of its rejection of the Purchase
                  Order pursuant to Section 19.3 prior to such time. In the
                  event of a disaster declared by Diveo, Lucent will use
                  commercially reasonable efforts to expedite the acceptance of
                  any Purchase Orders that are submitted by Diveo as a means of
                  mitigating the adverse effects to Diveo of such disaster;
                  provided, however, that the terms and conditions of Section
                  3.3(c) shall not apply to such Purchase Order.

            (e)   Estimates or forecasts furnished by Diveo to Lucent shall not
                  constitute Purchase Orders or commitments for purchases.

            (f)   Purchase Orders placed under this Agreement may be made by
                  means of mail or fax pursuant to Section 19.3, Diveo's
                  extranet ordering system, or such other mutually agreed upon
                  methods (e.g., electronic data interchange). No Purchase Order
                  or other ordering document which would otherwise modify or
                  supplement this Agreement or any Schedule shall add to or vary
                  the terms of this Agreement. All such proposed variations or
                  additions (whether submitted by either Party) are hereby
                  objected to and deemed material. Each Purchase Order shall
                  contain the applicable information set forth in Schedule J.

      3.2.  Administrative Changes.

            Lucent will use commercially reasonable efforts to notify Diveo at
            least thirty (30) calendar days in advance of any administrative
            changes with respect to any Product set forth in Schedule A or
            previously provided by Lucent to Diveo, such as changes in product
            part numbers or descriptions, as well as newly compatible products
            or components.

      3.3.  Timing of Delivery.

            (a)   The Delivery and Acceptance dates for Products and Delivery
                  for Services shall be firm. Lucent will deliver Products and
                  Services strictly in accordance with

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                  the terms and conditions of accepted or deemed accepted
                  Purchase Orders or Change Control Form (as such Change Control
                  Form is further described in Schedule J).

            (b)   If Lucent discovers any potential delay that threatens the
                  timely Delivery and Acceptance of Products or the Delivery of
                  Services with respect to a Purchase Order, Lucent shall
                  immediately notify Diveo of such delay. If requested by Diveo,
                  Lucent shall provide a written plan for correction of such
                  delay.

            (c)   Subject to Sections 3.1(d), 9.2 and 15.3, if Lucent fails to
                  deliver

                  (i)   any Product or Service for which a corresponding
                        Delivery time is set forth in Schedule J of the
                        Agreement in accordance with such corresponding Delivery
                        time;

                  (ii)  any other Products or Services in accordance with the
                        scheduled Delivery date or Acceptance date set forth in
                        the corresponding accepted Purchase Order;

                  then after five (5) business days following such scheduled
                  Delivery or Acceptance date, as applicable, Diveo shall be
                  entitled to deduct from the price of the Products, Services or
                  both (if included in the Purchase Order) an amount equal to
                  one-tenth of a percent (.1%) of the price of Products and
                  Services under such Purchase Order for each calendar day of
                  delay after such five-day grace period until actual Delivery
                  or Acceptance (or Provisional Acceptance), as applicable, of
                  such Products and Services, up to a maximum deduction of one
                  hundred percent (100%) of the price for such Products and
                  Services (the "Delivery Pricing Adjustment"). Notwithstanding
                  the preceding sentence, Lucent shall not be liable for a
                  Delivery Pricing Adjustment to the extent that Lucent can
                  demonstrate that its failure to deliver a Product or Service
                  in accordance with the scheduled Delivery or Acceptance date,
                  as applicable, set forth in the corresponding Purchase Order
                  is reasonably caused by (i) the wrongful actions of Diveo, or
                  (ii) a force majeure condition as defined in this Agreement,
                  or (iii) a change, revision, modification, or special
                  requirement with respect to such Product, or Service, or the
                  Delivery date for such Product or Service, each to the extent
                  requested by Diveo and approved by Lucent after Lucent has
                  accepted the Purchase Order corresponding to such Product or
                  Service. To the extent that Diveo has not otherwise terminated
                  the Purchase Order as provided in Subsection 3.5 below and
                  Diveo has elected to take the Delivery Pricing Adjustment as
                  provided above, such adjustment shall be Diveo's sole and
                  exclusive monetary remedy with respect to the delay
                  attributable to the failure to complete the Purchase Order;
                  provided, however, that in the event Lucent has persistent
                  delays over multiple Purchase Orders, such Delivery Pricing
                  Adjustment shall be in addition to any other rights or
                  remedies Diveo may have under this Agreement or at law or in
                  equity. Lucent agrees not to make an economic determination
                  not to deliver a Product or Service under a particular
                  Purchase Order due to the Delivery Pricing Adjustment.

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            (d)   If Lucent fails to make any Delivery or Acceptance (or
                  Provisional Acceptance) of a Product or Delivery of a Service
                  within the lesser of

                  (i)   forty-five (45) calendar days after the scheduled
                        Delivery date or Acceptance date set forth in the
                        corresponding Purchase Order, and

                  (ii)  such other time period as mutually agreed by the
                        Parties,

                  Then Diveo shall be entitled to terminate the corresponding
                  Purchase Order in accordance with Section 3.5.

            (e)   Lucent agrees to use its commercially reasonable efforts to
                  have scheduled shipment dates for Purchase Orders to be as
                  close to the Delivery date as possible.

      3.4.  Cancellation and Rescheduling of Purchase Orders

            (a)   Diveo can cancel Purchase Orders with respect to Products
                  contained in such Purchase Orders, in whole or in part at no
                  cost or liability anytime up to forty-five (45) days prior to
                  the scheduled shipment date for such Product. Should Diveo
                  cancel any Purchase Order for Products, in whole or in part
                  other than pursuant to Section 3.5, during the forty-five (45)
                  day period prior to the scheduled shipment date, Diveo agrees
                  to pay to Lucent cancellation and reconfiguration charges
                  equal to:

                  (i)   five percent (5%) of the value of the canceled portion
                        of the Purchase Order if the cancellation notice is
                        given between twenty (20) and forty-five (45) days prior
                        to the scheduled shipment date; or

                  (ii)  twenty percent (20%) of the value of the canceled
                        portion of the Purchase Order if the cancellation notice
                        is given within twenty (20) days prior to the scheduled
                        shipment date.

            (b)   Diveo can cancel Purchase Orders with respect to Services
                  contained in such Purchase Orders, in whole or in part, at no
                  cost or liability anytime prior up to twenty (20) days prior
                  to the scheduled start date set forth in the Purchase Order.
                  Should Diveo cancel any Purchase Order for Services, in whole
                  or in part other than pursuant to Section 3.5, during the
                  twenty (20) day period prior to the scheduled start date,
                  Diveo agrees to pay to Lucent cancellation charges for which
                  Diveo has been given prior notice on an Out-of-Pocket Expenses
                  basis equal to Lucent's demonstrable cancellation fees payable
                  to a third party, if any, as a direct result of such Diveo
                  cancellation..

            (c)   Purchase Orders for Products only may not be canceled
                  following shipment of the Products. Purchase Orders for
                  Services only may not be canceled following start of the
                  Service. The foregoing shall not impact any rights or remedies
                  otherwise available to Diveo under this Agreement.

            (d)   Following the Change Control process as specified in Schedule
                  J, Diveo may change the "ship to" destination of any Product
                  corresponding to a Purchase

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                  Order by submitting notice to Lucent in writing at least ten
                  (10) calendar days prior to delivery of the Product(s) at the
                  designated site. If such change is requested by Diveo with
                  less than forty-eight hours of notice prior to shipment,
                  Lucent will use all reasonable efforts to implement such
                  change. Diveo will be responsible for all additional
                  Out-of-Pocket Expenses that Lucent reasonably incurs as a
                  direct result of such change. Lucent will provide Diveo with
                  an estimate of such Out-of-Pocket Expenses as soon as possible
                  following Diveo's notice.

            (e)   Diveo may, without cost to Diveo, reschedule Delivery of any
                  Product corresponding to any Purchase Order at anytime prior
                  to actual shipment such that the resulting rescheduled
                  shipping date is up to one hundred twenty (120) days from the
                  original scheduled shipment date specified in the Purchase
                  Order (or such later date as either mutually agreed upon by
                  the Parties or identified as the ship date by Lucent);
                  provided, however, that unless otherwise agreed upon by the
                  Parties, Diveo may not reschedule any Product if the Delivery
                  of such Product was previously rescheduled by Diveo pursuant
                  to this Subsection (e). Such rescheduling shall be at no
                  liability to Diveo. Provided that the rescheduling was not
                  caused by delays by Lucent, Diveo shall be responsible solely
                  for additional Out-of-Pocket Expenses actually incurred by
                  Lucent for third party storage and transportation, if any.

            (f)   Diveo may reschedule Delivery of any Service corresponding to
                  any Purchase Order at anytime prior to scheduled start date
                  such that the resulting rescheduled delivery date is up to one
                  hundred twenty (120) days from the original start date
                  specified in the Purchase Order (or such later date as either
                  mutually agreed upon by the Parties). Such rescheduling shall
                  be at no cost or liability to Diveo.

            (g)   For the limited purpose of Diveo exercising its rights to
                  cancel or reschedule Delivery of Purchase Orders pursuant to
                  this Section only, all references in this Section 3.4 to the
                  scheduled shipment date specified in the Purchase Order shall
                  be extended day-for-day by the number of days Lucent is
                  delayed or is reasonably expected to be delayed in meeting the
                  scheduled shipment date.

      3.5.  Termination of Purchase Orders.

            (a)   As provided in Sections 3.3(d) and 6.2, Diveo may, by giving
                  written notice to Lucent, terminate the applicable Purchase
                  Order, in whole or in part, for cause as of a date specified
                  in the notice of termination. Additionally, in the event that
                  a Product fails to comply with the applicable Acceptance
                  Criteria as set forth in the Agreement, then Diveo may, by
                  giving written notice to Lucent, terminate, in whole or in
                  part for cause as of a date specified in the notice of
                  termination, any Purchase Orders under which Diveo has ordered
                  a quantity of the same Product or related Services and Lucent
                  has not yet Delivered such Products or related Services.

            (b)   In either of such events as described in Subsection (a), Diveo
                  may return to Lucent, those Products forming part of the same
                  Purchase Order that were delivered by Lucent during the sixty
                  (60) days immediately preceding the

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                  termination of the Purchase Order and that were intended to be
                  integrated and/or installed by Lucent with the foregoing
                  Products subject of the events described in Subsection (a), in
                  which case Lucent shall promptly refund to Diveo all charges
                  paid by Diveo to Lucent for such Products, and Diveo shall
                  have no further payment obligations to Lucent with respect to
                  such Products. The foregoing refund will be in the form of a
                  credit and payable by Lucent to Diveo in accordance with
                  Section 11.1(c).

      3.6.  Demonstration Products.

            From time to time and at Diveo's reasonable request and at Lucent's
            discretion, Lucent may, at no charge, provide Diveo with limited
            quantities of Lucent Products not previously introduced to the
            market generally by Lucent for the purpose of Diveo's evaluation (or
            demonstration) for a trial period. Such trial shall be conducted
            upon written terms and conditions mutually acceptable to the
            Parties.

4.    SHIPPING AND DELIVERY

      4.1.  Incorrect Delivery.

            (a)   Early deliveries of Products may be refused due to space or
                  security considerations and returned or stored at Lucent's
                  expense and risk of loss.

            (b)   Diveo assumes no liability for Services rendered or Products
                  produced, processed, rendered or shipped in excess of the
                  amounts specified in any Purchase Order submitted pursuant to
                  this Agreement.

            (c)   If Lucent makes a proper shipment in a timely manner and the
                  Diveo facility is not prepared to receive the shipment, Diveo
                  will be responsible for unavoidable Out-of-Pocket Expenses
                  that Lucent reasonably incurs as a direct result of Diveo's
                  failure to prepare. Lucent will provide Diveo with an estimate
                  of such Out-of-Pocket Expenses as soon as possible following
                  Diveo's notice.

      4.2.  Purchase Order Tracking.

            In accordance with Schedule J, Lucent shall be responsible for
            tracking and reporting on the Delivery and Acceptance (if
            installation Services are being provided) of all Products from
            receipt of the corresponding Purchase Order until Delivery or
            Acceptance, as applicable, of such Products to the Diveo-designated
            place of Delivery or Acceptance. Lucent will provide Diveo with
            current status reports and information on Purchase Orders on a
            monthly basis or more often as requested by Diveo and such other
            information and reports as reasonably requested by Diveo regarding
            Purchase Orders.

      4.3.  Packing.

            All Products delivered to Diveo pursuant to this Agreement shall be
            preserved, packaged and packed by Lucent to ensure safe Delivery to
            their destinations without damages due to shipment.

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      4.4.  Labeling.

            (a)   Lucent will label each component of any Lucent Product no
                  later than at the time of Delivery of such components (or upon
                  installation if Lucent is to provide installation Services in
                  connection with such components). In addition to the
                  foregoing, Lucent will use reasonable and good faith efforts
                  to label each component of any Lucent Product, each container
                  and each set of packing documentation with any Diveo-provided
                  asset identification information prior to the Delivery or
                  installation of such components. Lucent shall follow industry
                  practices in labeling Products.

            (b)   Lucent will mark each shipping carton with (i) a brief
                  description of the contents and quantities of the Products
                  shipped within such shipping carton, and (ii) the address of
                  the Delivery destination specified on the applicable Purchase
                  Order.

      4.5.  Factory Testing.

            The Lucent Products shall be tested by Lucent in accordance with
            Lucent's relevant standard factory testing procedures. Diveo shall
            have the right, but not the obligation, to be present during the
            performance of such factory tests. If requested by Diveo, Lucent
            agrees to provide results of the tests for such Lucent Products
            purchased by Diveo hereunder, consistent with Lucent's applicable
            policies.

      4.6.  Shipping

            (a)   Lucent will notify Diveo of Lucent's intent to ship Products
                  within a reasonable time prior to the scheduled Delivery date
                  as specified in the Purchase Order at the Delivery destination
                  address specified in a Purchase Order, so as to permit Diveo
                  to make necessary arrangements for receipt of the shipment.
                  The foregoing notwithstanding, Lucent shall deliver such
                  Products consistent with the agreed upon City Plan and
                  otherwise in accordance with the Agreement.

            (b)   Lucent will ship all Products to the Delivery destination
                  specified by Diveo in the corresponding Purchase Order in
                  accordance with applicable laws and regulations. All shipments
                  to Diveo's premises shall be consistent with Diveo's
                  reasonable shipping and delivery processes and procedures
                  provided or identified to Lucent in writing. Lucent will (i)
                  ship all deliveries complete unless otherwise agreed by Diveo,
                  and (ii) not ship any substitute item in place of a Product
                  specified in a Purchase Order that differs in form, fit or
                  function, unless otherwise agreed by Diveo in writing.

            (c)   Unless otherwise instructed by Diveo, Lucent will:

                  (i)   enclose a packing memorandum with each shipment and,
                        when more than one package is shipped, identify the one
                        which contains the memorandum;

                  (ii)  verify that bills of lading match corresponding shipping
                        invoices; and

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                  (iii) forward applicable bills of lading and shipping notices
                        with items shipped.

            (d)   All deliveries will be made as provided in Schedule C.

      4.7.  Title and Risk of Loss.

            (a)   Risk of loss of any Product shipped to Diveo will pass to
                  Diveo upon delivery of the Product to the designated site. In
                  the event a Product or Products are ordered with installation,
                  implementation and/or engineering Services, Lucent shall
                  continue to be responsible for all risk of loss on such
                  Product or Products (as if risk of loss did not pass upon
                  Delivery) until Acceptance of the Product or Products. In
                  connection with all of the foregoing, Lucent shall obtain all
                  necessary insurance its own name and shall be responsible for
                  any loss to the Products prior to the time periods set forth
                  above.

            (b)   License to use Software and title to Products shall pass to
                  Diveo as follows:

                  (i)   Where a Product or Software is shipped to the designated
                        site or destination specified in the Purchase Order from
                        a country that is different from the country of such
                        designated site or destination (the country of such
                        designated site or destination the "Destination
                        Country"), such title to the Product or license to use
                        such Software, as applicable, shall pass immediately
                        prior to importation in the Destination Country; or

                  (ii)  Where a Product or Software is shipped to the designated
                        site or destination specified in the Purchase Order from
                        within the same country as the country of such
                        designated site or destination, such title to the
                        Product or license to use such Software, as applicable,
                        shall pass upon delivery of such Product or Software to
                        the designated site or destination specified in the
                        Purchase Order.

5.    DELIVERY OF SERVICES

      5.1.  Use of Third Parties.

            (a)   Lucent shall notify Diveo in writing in advance of engaging
                  any subcontractor to perform any of the obligations of Lucent
                  hereunder. Diveo shall have five (5) business days (or two (2)
                  business days in the event of an emergency) from receipt of
                  such notification to approve or disapprove the named
                  subcontractor in writing, provided that any disapproval of a
                  subcontractor is reasonably based. In the event that Diveo
                  fails to disapprove a subcontractor within the aforesaid
                  period, Diveo shall be deemed to have approved the said
                  subcontractor.

            (b)   Lucent will remain solely responsible for all obligations
                  performed by its subcontractors to the same extent as if such
                  obligations were performed by Lucent itself. Lucent shall be
                  Diveo's sole point of contact regarding Products and Services
                  provided by such subcontractors, including with respect to
                  payment. Lucent will not disclose Confidential Information of
                  Diveo to a

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                  subcontractor unless and until such subcontractor has agreed
                  in writing to protect the confidentiality of such information
                  in a manner substantially equivalent to that required of
                  Lucent under this Agreement, and in all respects, only on a
                  "need-to-know" basis.

            (c)   Upon Diveo's request, Lucent shall provide program management
                  with respect to Diveo's personnel and third party service
                  providers contracted directly by Diveo to perform services
                  related to the Products and Services. Subject to the terms of
                  this Agreement, Diveo retains the option (at its sole
                  discretion) to utilize their direct, indirect or contracted
                  personnel to perform services under this Agreement. In the
                  event Lucent intends to subcontract a particular component of
                  the Services to a third party, Lucent shall notify Diveo and
                  Diveo shall have the option (which option shall be exercised
                  within a reasonable time), in its sole discretion, to perform
                  such services itself or through its own subcontractor. Such
                  Diveo personnel and third parties shall not be considered
                  Lucent subcontractors for the purposes of this Agreement and
                  Lucent shall not be liable for the performance of such
                  services under this Agreement.

      5.2.  Key Lucent Positions and Management Escalation Process.

            (a)   Lucent shall assign individuals reasonably acceptable to Diveo
                  to fill the "Key Lucent Positions" set forth as such in
                  Schedule I, as Schedule I is amended from time to time by the
                  mutual written agreement of the Parties.

            (b)   In accordance with Section 17.1, issues arising between the
                  Parties may be escalated in accordance with management
                  escalation procedures set forth in Schedule I.

            (c)   Lucent agrees to use reasonable efforts to minimize any
                  turn-over or reassignment of the personnel filling the Key
                  Lucent Positions. Lucent agrees that personnel filling Key
                  Lucent Positions may not be transferred or re-assigned until a
                  suitable replacement has been put into place and the functions
                  and responsibilities of the individual being transferred or
                  re-assigned have been properly transitioned to the
                  replacement. Lucent agrees to consult with Diveo in connection
                  with the transfer or re-assignment of any personnel in the Key
                  Lucent Positions.

            (d)   As further provided in Schedule I, upon commencement of each
                  project (i.e., installation, implementation and/or engineering
                  Services), and until such time as the implementation for such
                  project is complete, Lucent shall appoint and maintain a
                  project manager, reasonably acceptable to Diveo, to devote the
                  necessary time and effort to the provision of the Services
                  required to fulfill the implementation of such project. Diveo
                  shall likewise appoint a project manager for each project.
                  Each Party's project manager shall be familiar with the
                  project and shall have authority to make day-to-day and
                  emergency decisions on behalf of such Party during the
                  implementation of the project.

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      5.3.  Implementation Plans, Milestones and Milestone Dates.

            For all projects (e.g., installation, implementation and/or
            engineering Services) that result in the installation,
            implementation and/or engineering of of Product(s):

            (a)   Lucent shall prepare for Diveo's review, comment and approval,
                  a detailed, task-level implementation plan delineating
                  milestones (each, a "Milestone"), Milestone completion dates
                  (each, a "Milestone Date"), together with each Party's
                  respective responsibilities associated with the installation
                  or implementation work.

            (b)   If Lucent fails to achieve a Milestone on or before the
                  corresponding Milestone Date, (i) Lucent's Country Project
                  Manager (or in the event such position no longer exists, an
                  executive with a similar level of responsibility) will meet
                  with Diveo in person at Diveo's facilities, explain to Diveo
                  the root cause for the delay, and present to Diveo a plan to
                  remedy such failure, (ii) Lucent will take appropriate
                  preventive measures so that the failure does not recur, and
                  reasonably demonstrate to Diveo that such measures have been
                  performed.

6.    ACCEPTANCE TESTING AND FINAL ACCEPTANCE

      6.1.  Acceptance Testing.

            (a)   Schedule F (Acceptance Test Plans) describes the three levels
                  of testing for the Products (i.e., unit testing, network
                  element testing and system testing) and such testing will be
                  implemented in accordance with Schedule F.

            (b)   In the event Lucent is providing Services that includes
                  Acceptance testing of Products, Lucent shall perform the
                  testing (for Diveo's review and Acceptance) in accordance with
                  Schedule F and the applicable Acceptance Test Period.
                  Alternatively, if Diveo is performing the Acceptance testing
                  without the assistance of Lucent, Acceptance testing of the
                  Products shall be conducted by Diveo within the applicable
                  Acceptance Test Period.

            (c)   In either case as set forth in (b) above, if such Product(s)
                  meets its Acceptance Criteria, Diveo will notify Lucent in
                  writing that such Product has received Acceptance pursuant to
                  Section 6.3. If such Product(s) does not meet its Acceptance
                  Criteria, Diveo may notify Lucent in writing of the failures
                  of the Product(s) to meet its Acceptance Criteria and Lucent
                  shall correct such problems in accordance with Section 6.2;
                  provided, however, if Lucent is providing Services that
                  includes Acceptance testing, Diveo shall not be obligated to
                  provide such notice of failures until such time following
                  Lucent's notice to Diveo that the Products have passed the
                  applicable Acceptance Criteria (i.e., Lucent Certification)
                  and are available for verification by Diveo in accordance with
                  Schedule F. Alternatively, Diveo may accept such Product
                  pursuant to Section 6.3 upon the condition that such failures
                  will be corrected by Lucent within a period of time reasonably
                  specified by Diveo (such acceptance a "Provisional
                  Acceptance"). In the event Diveo or its Affiliates, as
                  applicable, places a Product into commercial, revenue
                  producing service, such Product shall

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                  be considered Provisionally Accepted; provided that final
                  Acceptance of such Product shall be based upon the condition
                  that all other Products subject of the Purchase Order that are
                  required to be installed together and integrated as a complete
                  system also pass Acceptance.

      6.2.  Acceptance Testing Failures, Cure Periods and Remedies.

            (a)   If any Product(s) subject to Acceptance testing as described
                  in Section 6.1 fails to pass Acceptance testing, Diveo will
                  promptly (and in no event later than the applicable Acceptance
                  Testing Period) notify Lucent in writing, specifying the
                  nature of the failure in reasonable detail. Within ten (10)
                  days after receiving notice from Diveo, Lucent shall either
                  (i) correct all problems identified by Diveo, or, if that is
                  not reasonably possible, (ii) develop a plan for Diveo's
                  acceptance that describes in reasonable detail the steps
                  Lucent intends to take to correct such problem(s) within
                  thirty (30) days, and diligently proceed according to the plan
                  until all of the problem(s) are corrected. Upon completion of
                  such problem corrections, Diveo shall reconduct the Acceptance
                  testing as provided in Section 6.1 to the extent that Diveo
                  deems necessary to determine the compliance of the Product
                  with the Acceptance Criteria.

            (b)   Notwithstanding Subsection (a) above, if after a reasonable
                  number of repeated efforts (but not more than three (3)
                  attempts or more than a total of sixty (60) days for curing
                  all problems encountered), Lucent is unable to correct all of
                  the problems preventing Acceptance, Diveo may at its election:

                  (i)   extend the testing periods for a reasonable period of
                        time and require Lucent to immediately replace the
                        non-conforming item(s);

                  (ii)  accept the affected items at a mutually agreed reduced
                        price that reflects the diminished functionality, to be
                        replaced by full functionality items in the future at
                        Diveo's discretion, at which time full payment will be
                        made; or

                  (iii) cancel or modify the corresponding Purchase Order and
                        any other affected Purchase Order for cause and at no
                        cost to Diveo and Lucent shall promptly refund (not to
                        exceed 30 days) any amounts paid by Diveo or its
                        Affiliates for such Purchase Orders.

      6.3.  Acceptance.

            A Product shall be considered to be accepted (the "Acceptance") only
            as follows:

            (a)   With respect to a Product or Products subject of a Purchase
                  Order without installation, implementation and/or engineering
                  Services), such Products shall be Acceptance tested within
                  five (5) business days of delivery of the Product or Products
                  to the designated site or destination named in the Purchase
                  Order. Such Acceptance testing shall include an incoming
                  inspection to verify that such Product has been delivered in
                  accordance with the corresponding Purchase Order and meets the
                  Acceptance Criteria; and

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            (b)   With respect to any other Product, such Product shall be
                  considered to be accepted upon the earliest of:

                  (i)   receipt by Lucent of written notice by Diveo certifying
                        that such Product conforms to its Acceptance Criteria;

                  (ii)  satisfaction of all conditions underlying a Provisional
                        Acceptance as described in Section 6.1, or

                  (iii) the expiration of the Acceptance Testing Period for such
                        Product without notice of non-acceptance or of the terms
                        of a Provisional Acceptance by Diveo.

                  Notwithstanding anything to the contrary herein, Acceptance of
                  a Product shall only occur in accordance with the terms of
                  this Agreement.

7.    SERVICE LEVELS

      7.1.  General.

            Lucent shall at all times meet or exceed the quantitative and
            qualitative service levels identified in Schedule B (the "Service
            Levels").

      7.2.  Failure to Perform.

            (a)   Lucent recognizes that its failure to meet Service Levels as
                  specified in Schedule B, may have a material adverse impact on
                  the business and operations of Diveo. Accordingly, in the
                  event that Lucent fails to meet such Service Levels for
                  reasons other than the wrongful actions of Diveo (including
                  Diveo's failure to perform its duties and obligations on a
                  timely basis) or circumstances that constitute force majeure
                  under this Agreement, Diveo may elect, in addition to any
                  other rights or remedies available to Diveo hereunder, to
                  pursue remedies according to Schedule B.

            (b)   If Lucent fails to meet any Service Level, Lucent shall (i)
                  investigate and report on the root causes of the problem; (ii)
                  advise Diveo, as and to the extent requested by Diveo, of the
                  status of remedial efforts being undertaken with respect to
                  such problems; (iii) correct the problem and begin meeting the
                  Service Levels in the case that the root causes of the problem
                  are within Lucent's control; and (iv) take appropriate
                  preventive measures so that the problem does not recur.

      7.3.  Periodic Reviews.

            Within three (3) months after the expiration of the first year
            following the Effective Date and at least annually thereafter, Diveo
            and Lucent shall review the Service Levels and shall make
            adjustments to them as appropriate to reflect improved performance
            capabilities associated with advances in the technology and methods
            used to provide the Products and perform the Services.

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      7.4.  Measurement and Monitoring Tools.

            Lucent shall use the measurement and monitoring tools and procedures
            required to measure and report Lucent's performance of the Services
            against the applicable Service Levels. Lucent shall report on all
            Service Levels each month during the Term. Such measurement and
            monitoring will permit reporting at a level of detail sufficient to
            verify compliance with the Service Levels and will be subject to
            audit by Diveo. Lucent shall provide Diveo with information and
            access to such tools and procedures upon request, for purposes of
            verification.

8.   SOFTWARE LICENSES AND PROPRIETARY RIGHTS

      8.1.  Licenses.

            (a)   Commencing upon Delivery of Software pursuant to this
                  Agreement, Lucent grants Diveo and its Affiliates a perpetual,
                  transferable (as provided herein), nonexclusive, fully-paid,
                  royalty-free, irrevocable (except as provided by Subsection
                  (b) of this Section) and world-wide right and license (or
                  sublicense in the case of Software owned by a third party) to
                  use, copy (as provided herein), access, display, operate and
                  process the Software provided to Diveo pursuant to a Purchase
                  Order (collectively, the "Licenses"). These rights may be
                  exercised through officers, employees and agents for the sole
                  purpose of providing services to Diveo and its Affiliates.
                  Diveo may copy the Software for back-up purposes and for uses
                  that are in accordance with this Agreement. Any such
                  reproduction will include any copyright or similar proprietary
                  notice contained in the Software being reproduced. Diveo may
                  not decompile, disassemble or reverse engineer the Software.

            (b)   Lucent may revoke a particular License if and only if Diveo
                  (i) fails to pay undisputed licensing fees associated with
                  such License, and such nonpayment is not cured within thirty
                  (30) calendar days after written notice of such nonpayment
                  provided by Lucent to Diveo or (ii) fails to use commercially
                  reasonable efforts to cease from decompiling, disassembling or
                  reverse engineering the Software following receipt of notice
                  from Lucent.

            (c)   To the extent that Lucent is unable to secure the rights
                  specified in Section 8.1 with respect to Software associated
                  with Third Party Products, it shall be excused from that
                  obligation, provided that it gives Diveo prior written notice
                  of such inability sufficiently in advance so that Diveo may
                  seek alternate means of obtaining such rights.

            (d)   Diveo may, at no charge, relocate any Software to another
                  location for reuse with Equipment with which it was originally
                  delivered when such Equipment is itself to be relocated
                  consistent with this Agreement. Such relocation or reuse shall
                  not alter the Licenses.

            (e)   Diveo shall have the right to transfer any of the Licenses in
                  the event Diveo sells the Equipment with which such Software
                  is utilized or any component thereof in accordance with
                  Section 8.3, or in the event of an assignment or change in

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                  control in accordance with Section 19.1. Such transfers shall
                  be subject to (i) the transferee undertaking the restrictions
                  and covenants of the license, (ii) reasonable creditworthiness
                  of the transferee, (iii) a limitation that the transferee is
                  not a direct competitor of Lucent in the area of
                  telecommunications equipment manufacture, and (iv) with
                  respect to Software that is embedded as part of Equipment, a
                  limitation that the Software may be used only with the
                  Equipment on which it was utilized prior to the transfer.

            (f)   Lucent agrees to furnish and convey, at no additional charge
                  to Diveo, such documentation, training materials, manuals,
                  appropriate designs, appropriate drawings, and other media and
                  material pertaining to the use and operation of Products as is
                  necessary to permit Diveo to use and maintain such items in
                  accordance with this Agreement (the "Documentation"). Lucent
                  will provide the Documentation in both hard- and soft-copy
                  formats. Diveo may make a reasonable number of copies of the
                  Documentation; provided, however, that all such copies shall
                  contain the copyright legends placed on the original versions
                  by Lucent.

            (g)   In the event that a Diveo employee violates the License
                  restrictions set forth in Subsection (a) of this Section,
                  Diveo shall, at its own expense take such reasonable actions
                  as may be necessary to remedy such violation and cooperate in
                  all reasonable respects to minimize the violation and any
                  damage resulting therefrom.

            (h)   Except as otherwise provided pursuant to Section 8.4, no
                  Source Code is included in Software provided under the
                  Agreement. Diveo acknowledges that, in the event it attempts
                  to decompile, disassemble or reverse engineer Software other
                  than any Developed Deliverable, Lucent may proceed directly to
                  court. If a court of competent jurisdiction should find that
                  Diveo has attempted to decompile, disassemble or reverse
                  engineer such Software, Diveo agrees that without any
                  additional findings of irreparable injury or other conditions
                  to injunctive relief, Lucent shall be entitled to seek the
                  entry of an appropriate order against Diveo without opposition
                  to restrain Diveo from any further attempt to decompile,
                  disassemble or reverse engineer such Software.

      8.2.  Proprietary Rights.

            (a)   Title to the Software shall remain in Lucent or its suppliers.
                  Title to any software owned or licensed directly by Diveo
                  (other than Software licensed from or through Lucent under
                  this Agreement) shall not be affected by this Agreement and
                  such title shall remain with Diveo or its suppliers. With
                  respect to any documentation, engineering, designs or other
                  requested Services that result in a documentation deliverable,
                  Diveo may use such deliverable in any manner and to the extent
                  such deliverable incorporates or is based on Diveo provided
                  technical information or specifications Lucent agrees not to
                  use such information or specifications in connection with any
                  other similar work for any other customer of Lucent.

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            (b)   The Parties do not expect that Lucent will develop custom
                  Software in the course of performance under this Agreement,
                  and nothing contained in the Agreement may be interpreted to
                  require Lucent to develop such custom Software.

            (c)   Diveo and Lucent may agree that Lucent will perform certain
                  custom development work pursuant to mutually agreed-upon
                  terms, conditions and fees set forth in a separate written
                  agreement duly signed by the Parties (such Deliverables the
                  "Developed Deliverables").

      8.3.  Right to Resell and Sublicense.

            Except as may be otherwise provided by the terms and conditions of
            the Credit Agreement, Diveo shall have the right to assign,
            transfer, sell, alienate or lease Lucent Products, and, subject to
            Section 8.1, sublicense the right to use the Software that is
            embedded or otherwise provided with such Lucent Products to third
            parties in conjunction with (A) the disposal of such Products,
            provided that (i) Diveo shall not sell or otherwise transfer a
            Lucent Product to any person or entity that is a manufacturer of
            telecommunications products that compete directly with the Lucent
            Products being disposed of, and (ii) all warranties applicable to
            such Product shall automatically terminate at the time Diveo makes
            delivery of the Product to the third party, and (B) (i) Customer
            Colocations involving such Products, or (ii) Customer Virtual
            Colocations involving such Products, and pass through to such
            customers the standard warranty rights (and the applicable warranty
            exclusions) granted by Lucent generally to its customers, which
            rights shall be valid only for the remaining term, if any, of the
            Initial Warranty Period applicable to such Products; provided,
            however, if this Agreement is assigned as provided herein, the
            rights granted to Diveo under this Agreement that are applicable to
            such Lucent Products shall be assignable to the assignee of this
            Agreement. In connection therewith:

            (a)   Each third party shall agree in writing that its license for
                  any Software to which Lucent maintains title under this
                  Agreement is revocable by Lucent in the event such third party
                  materially breaches the licensing restrictions imposed upon
                  Diveo under this Agreement pursuant to Section 8.1;

            (b)   Each such third party shall agree in writing to
                  confidentiality terms and conditions substantially similar to
                  those set forth in Article 12; and

            (c)   With respect to rights granted to Diveo under Article 13 and
                  passed through to such third parties, the Parties will agree
                  upon a reasonable means of administering Lucent's fulfillment
                  of its obligations with respect to such rights.

            Where Diveo substantially complies with the obligations set forth
            above, Diveo shall have no liability to Lucent for any action or
            omission of such third parties except for providing Lucent
            reasonable assistance in bringing claims as against the third party
            for reasonable claims.

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      8.4.  Technical Materials Availability

            (a)   As used herein, a "Technical Materials Trigger Event" shall
                  mean the satisfaction of any of the following conditions: (i)
                  the insolvency of Lucent or the institution by Lucent of
                  insolvency, receivership or bankruptcy proceedings; (ii) a
                  general assignment by Lucent for the benefit of creditors;
                  (iii) the appointment of a receiver for Lucent; or (iv) the
                  filing of creditors of Lucent of a petition in bankruptcy
                  against Lucent which is not stayed or dismissed within sixty
                  (60) calendar days together with a material breach by Lucent
                  or where there is an inability for Lucent to perform within
                  such sixty (60) days.

            (b)   Upon the occurrence of a Technical Materials Trigger Event,
                  Lucent shall immediately deliver to Diveo the Source Code for
                  Lucent Products and grant to Diveo at no additional charge a
                  license to use, copy, access, display, modify, enhance,
                  operate, process and create derivative works of the Source
                  Code for the Lucent Product(s) then being used by Diveo and
                  any associated documentation for such Lucent Products to the
                  extent necessary for Diveo to modify, maintain and enhance
                  solely for its own use in accordance with the terms of this
                  Agreement, the Lucent Products that Diveo has the right to use
                  under this Agreement; provided, however, such license and
                  delivery of the Source Code will not be required where Diveo
                  can obtain, with Lucent's assistance (e.g., by providing a
                  third party with Source Code or by any other appropriate
                  method), the same support services that Lucent is required to
                  provide under this Agreement from another entity (either
                  working with or independently from Lucent) at a price that is
                  equal to or less than prices for such support as provided
                  herein. Any such released Source Code shall be subject to the
                  confidentiality provisions set forth in this Agreement.

            (c)   Lucent acknowledges that, in the event it breaches its
                  obligation to provide the Source Code and license as provided
                  in this Section, Diveo may be irreparably harmed. In such a
                  circumstance, Diveo may proceed directly to court.

9.    DIVEO RESPONSIBILITIES

      9.1.  Facilities and Resources.

            Diveo's responsibility for providing facilities, personnel and other
            resources as necessary to permit Lucent to deliver the Products and
            Services shall be as set forth in this Agreement.

      9.2.  Savings Clause.

            (a)   Diveo's failure to perform any of its responsibilities set
                  forth in this Agreement (other than Diveo obligations to pay
                  undisputed amounts under Article 10.3) shall not constitute a
                  material breach of the Agreement or otherwise be deemed to be
                  grounds for termination by Lucent.

            (b)   Each Party's nonperformance of its obligations under this
                  Agreement shall be excused (such Party the "Excused Party") if
                  and to the extent: (i) such

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                  nonperformance is a direct result of the other Party's failure
                  to perform its responsibilities, (ii) the Excused Party
                  provides such other Party with reasonable notice of such
                  nonperformance, and (iii) the Excused Party uses commercially
                  reasonable efforts to perform notwithstanding such other
                  Party's failure to perform. Such other Party shall compensate
                  the Excused Party for any documented, out of pocket additional
                  and reasonable costs and expenses incurred by the Excused
                  Party as a direct result of such other Party's failure to
                  perform, or delay in performing, its obligations under the
                  Agreement.

10.   CHARGES

      10.1. General.

            The charging mechanisms and pricing methodologies for Products,
            other Products and Services are expressly set forth in the
            Agreement. The Parties agree to supplement Schedule C in a manner
            consistent with the other pricing terms of this Agreement as
            necessary if and when Diveo purchases Products and Services for
            which pricing is not set forth in Schedule C. Diveo will not be
            liable to Lucent for any charges, additional or otherwise, for
            Products or Services provided by Lucent unless such charges are
            expressly set forth in a Purchase Order, this Agreement (including
            its Schedules) or as otherwise may be mutually agreed by the Parties
            in writing. As more definitively set forth in Schedule C, Lucent
            shall pay all Delivery Duty Paid (DDP) (as set forth in the ICC
            Incoterms 1990) related costs (i.e., transportation, insurance,
            customs duties and taxes) related to the shipment of Products (less
            the costs related to shipping FCA Miami which is included in the
            price for the Products) under this Agreement ("Incremental DDP
            Costs") and Diveo shall reimburse Lucent therefore on an
            Out-of-Pocket Expense basis (i.e., no mark-up).

      10.2. Taxes.

            The Parties' respective responsibilities for taxes arising under or
            in connection with this Agreement shall be as follows:

            (a)   Diveo shall bear all taxes, duties, levies and similar charges
                  (and any related interest and penalties), however designated,
                  imposed as a result of the existence or operation of this
                  Agreement, except (i) any tax imposed upon Lucent in a
                  jurisdiction other than the jurisdiction under the laws of
                  which Lucent was formed (hereinafter the "Resident
                  Jurisdiction") if such tax is allowable as a credit against
                  the Resident Jurisdiction income taxes of Lucent; and (ii) any
                  net income tax imposed upon Lucent by an government entity
                  within Lucent's Resident Jurisdiction. In order for the
                  exception contained in (i) to apply, Diveo must furnish Lucent
                  with such evidence as may be required by the Resident
                  Jurisdiction taxing authorities to establish that such tax has
                  been paid within thirty (30) days of issuance by the local
                  taxing authority so that Lucent may claim the credit.

            (b)   If Diveo is required to bear a tax, duty, levy or similar
                  charge pursuant to (a) above, then Diveo shall pay such tax,
                  duty, levy or similar charge and any additional amounts as are
                  necessary to ensure that the net amounts received by

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                  Lucent hereunder after all such payments or withholdings equal
                  the amounts to which Lucent is otherwise entitled under this
                  Agreement as if such tax, duty, levy or similar charge did not
                  exist.

            (c)   Each Party shall bear all wage withholding, social security
                  and other employment related taxes with respect to its
                  employees. In no event shall Diveo be liable to Lucent for any
                  ex-pat related costs or expenses beyond payment for the price
                  of Services and costs and expenses that Diveo is specifically
                  required to reimburse to Lucent pursuant to this Agreement, if
                  any.

            (d)   Lucent shall not collect an otherwise applicable tax if
                  Diveo's purchase is exempt from Lucent's collection of such
                  tax and a valid exemption certificate is furnished by Diveo to
                  Lucent.

            (e)   The Parties agree to cooperate with each other to minimize, to
                  the extent legally permissible, taxes arising under this
                  Agreement. Lucent's invoices shall separately state the
                  amounts of any taxes Lucent is collecting from Diveo. Each
                  Party shall provide and make available to the other any resale
                  certificates, information regarding out-of-state or
                  out-of-country sales or use of equipment, materials or
                  services, and other exemption certificates or information
                  reasonably requested by either Party.

      10.3. Incidental Expenses.

            Lucent acknowledges that all expenses that Lucent expects to incur
            in performing under this Agreement (including document reproduction
            and long-distance telephone) are included in Lucent's charges under
            in this Agreement. Accordingly, such Lucent expenses are not
            separately reimbursable by Diveo unless, on a case-by-case basis for
            unusual expenses, Diveo has agreed in advance and in writing to
            reimburse Lucent for the expense.

      10.4. Commitment.

            (a)   For purposes of this Agreement, "Commitment" shall mean
                  Diveo's agreement to issue and pay for Purchase Orders in
                  accordance with the terms of this Agreement for at least
                  twenty-five million dollars ($25,000,000) by the end of the
                  Initial Term subject to the provisions of this Section 10.4.

            (b)   Diveo shall be relieved from the Commitment:

                  (i)   By the total price (or portion thereof if only partially
                        terminated) of the Products and Services ordered under
                        any Purchase Order that are terminated in accordance
                        with Section 3.5 or Section 14.1;

                  (ii)  By the total price of any Product returned to Lucent for
                        failing to meet Acceptance in accordance with the terms
                        of this Agreement;

                  (iii) By the total price (or portion thereof if only partially
                        terminated) for Services ordered under a Purchase Order
                        that are terminated due to Lucent's failure to meet its
                        obligations under this Agreement; and

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                  (iv)  By the total amount of the Commitment not met if this
                        Agreement is terminated in accordance with Sections 14.1
                        or Section 14.3 prior to the expiration of the Initial
                        Term or by the total amount of the Commitment not met at
                        such time funding under the Credit Agreement is not
                        provided through no default of Diveo under the Credit
                        Agreement.

            (c)   In the event Diveo fails to issue and pay for Purchase Orders
                  to meet the Commitment (as such Commitment is reduced or
                  relieved as provided in Subsection (b) above, hereinafter the
                  "Adjusted Commitment") by the expiration of the Initial Term,
                  Diveo shall pay Lucent (from funds other than from the Lucent
                  financing) an amount equal to 50% of the difference between
                  the Adjusted Commitment and the total price for all Purchase
                  Orders issued and paid for by Diveo under this Agreement as of
                  the expiration date of Initial Term.

      10.5. Lucent-Provided Financing.

            (a)   Lucent shall provide Diveo financing in accordance with the
                  Credit Agreement and otherwise in accordance with the terms of
                  this Agreement.

            (b)   For purposes of this Agreement, "Lucent Content" shall refer
                  to (i) all Lucent Products and Services, (ii) all Harris
                  radios, radio accessories and antennae (collectively, the
                  "Harris Radios"), subject to the limitation set forth in
                  Section 10.5(d)(ii) below, and (iii) all Incremental DDP Costs
                  related to the foregoing. In the event Harris is no longer
                  selling radios that will work in the Diveo Network or Lucent
                  fails to Deliver Harris radios, radio accessories and
                  antennae, Diveo may change Harris with another radio
                  manufacturer.

            (c)   For purposes of this Agreement, "Non-Lucent Content" shall
                  refer to (i) all Third Party Content and other services
                  ordered under this Agreement (including all Services provided
                  by Diveo under subcontract with Lucent) and (ii) all
                  Incremental DDP Costs related to the foregoing.

            (d)   Lucent agrees to provide financing (subject to the terms and
                  conditions set forth in the Credit Agreement, including limits
                  on the total financing amounts) for all Lucent Content and
                  Non-Lucent Content. For purposes of this Subsection (d) (i)
                  "Total Contract Year Draw Down" shall refer to the total
                  dollar amount drawn down by Diveo under the Credit Agreement
                  during a Contract Year and (ii) "Delta" shall mean that amount
                  equal to the difference between the actual total amount drawn
                  down by Diveo for Lucent Content during a Contract Year and
                  the total amount Diveo would have been required to have drawn
                  down so that eighty percent (80%) of the Total Contract Year
                  Draw Down for such Contract Year was for Lucent Content (the
                  Delta can be a positive number if Diveo's draw down of Lucent
                  Content exceeds 80% or a negative number if Diveo's draw down
                  is below 80%).

                  (i)   Diveo may use up to eighty percent (80%) of the Total
                        Contract Year Draw Down during the each Contract Year
                        for Lucent Content and twenty percent (20%) of the Total
                        Contract Year Draw Down during each Contract Year for
                        Non-Lucent Content (up to fifty percent (50%) of

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                        which twenty percent may be used towards Services
                        provided by Diveo under subcontract with Lucent; Lucent
                        shall have no obligation to provide financing for any
                        Diveo-provided Services in excess of such fifty percent
                        maximum).

                  (ii)  As part of the Lucent Content, Diveo may use up to
                        twenty-five percent (25%) of the Total Contract Year
                        Draw Down during each Contract Year for Harris Radios.
                        In the event Diveo purchases Netro radios from Lucent,
                        the foregoing twenty-five percent will be reduced on a
                        pro rata basis based on the percentage of the Total
                        Contract Year Draw Down Diveo used for purchasing Netro
                        radios, but in no event shall the total percentage Diveo
                        may use for Harris Radios go below fifteen (15%) percent
                        of the Total Contract Year Draw Down.

                  (iii) Ninety (90) days prior to the end of each Contract Year
                        and at the end of each Contract Year, Lucent shall
                        provide for Diveo's review, and subject to Diveo's
                        confirmation, a reconciliation statement that specifies
                        the percentage of the Total Contract Year Draw Down (or
                        the then-current percentage for the statement provided
                        90 days prior to the end of the Contract Year) that was
                        used for Lucent Content and for Non-Lucent Content.

                        (1)   Where the actual percentage for Lucent Content
                              subject of the Total Contract Year Draw Down is
                              lower than eighty percent (80%) in any Contract
                              Year, Diveo shall have a sixty (60) day period
                              from receipt of the reconciliation statement to
                              place Purchase Orders in order to increase the
                              percentage for Lucent Content. If at the end of
                              such sixty day period the percentage for Lucent
                              Content is less than eighty percent (80%) (taking
                              into account the additional Purchase Orders issued
                              by Diveo during the sixty day period), Diveo shall
                              pay Lucent, as Lucent's sole and exclusive remedy,
                              a "Surcharge" calculated as follows: (A) if the
                              Delta is between $1 and $1,000,000, 25% of such
                              amount; (B) if the Delta is between $1 and
                              $5,000,0000, 25% for the first $1,000,000 plus 15%
                              for such amount over $1,000,000.01; and (C) if the
                              Delta is greater than $5,000,000.01, 25% for the
                              first $1,000,000 plus 15% for amounts between
                              $1,000,000.01 and $5,000,000 plus 5% for amounts
                              over $5,000,000.01. Diveo shall be entitled to
                              offset against any Surcharge payable by any
                              Surcharge Credits (as calculated below) Diveo has
                              at the time the Surcharge is payable.

                        (2)   Where the actual percentage for Lucent Content
                              subject of the Total Contract Year Draw Down is
                              greater than eighty percent (80%) in any Contract
                              Year, Diveo shall be entitled to a "Surcharge
                              Credit" calculated as follows: (A) if the Delta is
                              between $1 and $1,000,000, 25% of such amount; (B)
                              if the Delta is between $1 and $5,000,0000, 25%
                              for the first $1,000,000 plus 15% for such amount
                              over $1,000,000.01; and

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                              (C) if the Delta is greater than $5,000,000.01,
                              25% for the first $1,000,000 plus 15% for amounts
                              between $1,000,000.01 and $5,000,000 plus 5% for
                              amounts over $5,000,000.01. Diveo shall be
                              entitled to use all Surcharge Credits against any
                              Surcharges payable by Diveo in any Contract Year;
                              provided, however, that if at the end of the
                              Initial Term Diveo has any Surcharge Credits that
                              have not been off set against Surcharges, such
                              excess Surcharge Credits shall be automatically
                              extinguished, and Lucent shall have no liability
                              to Diveo with respect to such excess Surcharge
                              Credits.

            (e)   Subject to the terms set forth in Subsection (d) above, this
                  Agreement (including Schedule C) and the Credit Agreement,
                  Lucent shall provide financing and purchase Non-Lucent Content
                  on behalf of Diveo (e.g., Third Party Content and third party
                  and Diveo provided services). Such Non-Lucent Content needs to
                  be reasonable related to the Diveo Network. Lucent shall pay
                  all such delivered invoices in accordance with the payment
                  terms set forth on such invoice or as otherwise directed by
                  Diveo.

            (f)   Lucent shall continue to provide Diveo with financing for
                  Products and Services during the Disengagement Period as
                  described in Section 14.4(a) subject to the terms set forth in
                  Subsection (b) above and the terms of the Credit Agreement.

      10.6. Competitive Pricing.

            (a)   Lucent's prices, terms and conditions (including financing),
                  viewed collectively, to Diveo ("Diveo's Overall Terms") shall
                  be no less favorable than the prices, terms and conditions
                  (including financing, if any), viewed collectively, extended
                  by Lucent to another Lucent or Lucent Affiliate customer
                  (excluding Lucent Affiliates, distributors, resellers, sales
                  agents, and governmental entities) in an executed contract
                  during the Term of this Agreement ("Comparable Customer's
                  Overall Terms"), for comparable volumes, mix, and
                  configurations of Products and Services for similar use in a
                  country in the Territory (a "Comparable Purchase").

            (b)   If a Comparable Customer's Overall Terms for a Comparable
                  Purchase in any country in the Territory, are more favorable
                  than Diveo's Overall Terms for a Comparable Purchase in the
                  same country (the "Affected Country"), then Lucent shall
                  prospectively offer amended prices and/or amended terms and
                  conditions (the "Lucent Offer") to Diveo for Comparable
                  Purchases in the Affected Country only, such that Diveo's
                  Overall Terms shall be no less favorable than the Comparable
                  Customer's Overall Terms. Diveo shall have thirty (30) days
                  from receipt of the Lucent Offer to accept, in writing, such
                  Lucent Offer. In the event that Diveo accepts the Lucent
                  Offer, the Parties shall execute a corresponding amendment to
                  this Agreement, which amendment shall be effective as of the
                  date of Diveo's written acceptance of the Lucent Offer. In the
                  event that Diveo does not accept the Lucent Offer, the prices,
                  terms and conditions then in effect pursuant to this Agreement
                  shall remain in effect for all countries in the Territory.

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            (c)   The following transactions shall not be considered in any
                  comparison of prices, terms and conditions: initial sales for
                  first entry into a geographic or product market ("market entry
                  sales"), sales made as part of the settlement of a dispute,
                  sales involving an exchange or the granting of intellectual
                  property rights (other than the granting of licenses to use
                  software furnished by Lucent to the customer), or the
                  provision of laboratory, trial, test, demonstration or
                  promotional hardware, software or services.

            (d)   Upon Diveo's written request, Lucent shall certify in writing
                  after its fiscal close each calendar year its compliance with
                  the undertakings in this Section.

11.   INVOICING AND PAYMENT

      11.1. Invoicing.

            (a)   Subject to Schedule C, Lucent will invoice Diveo for Products
                  and Services as follows:

                  (i)   Products with Installation Services. With respect to
                        Products purchased by Diveo together with installation
                        Services pursuant to a Purchase Order, Lucent will
                        invoice Diveo for amounts due pursuant to this Agreement
                        for such Products as follows:

                        (1)   ten percent (10%) of the value of the Purchase
                              Order upon Lucent's acceptance of a Purchase
                              Order;

                        (2)   forty-five percent (45%) of the value of the
                              Purchase Order upon delivery of all Products
                              subject of the Purchase Order to the designated
                              site or destination specified in the Purchase
                              Order;

                        (3)   twenty-five percent (25%) of the value of the
                              Purchase Order upon completion of installation of
                              all Products subject of the Purchase Order;

                        (4)   five percent (5%) of the value of the Purchase
                              Order upon Provisional Acceptance (if applicable)
                              of all installed Products subject of the Purchase
                              Order;

                        (5)   fifteen percent (15%) of the value of the Purchase
                              Order upon Acceptance of all Products subject of
                              the Purchase Order (if Provisional Acceptance) or
                              otherwise twenty percent (20%) of the value of the
                              Purchase Order.

                        All such invoices shall include: invoice date, shipment
                        number, Product part numbers and descriptions,
                        quantities, unit prices and total amount due and any
                        other data necessary for Diveo or the Diveo Affiliate to
                        reconcile such invoice, on a line by line basis, to the
                        originating Purchase Order(s) and Change Control
                        Order(s). Such invoices shall also indicate the
                        corresponding Purchase Order number for each invoiced
                        Product.

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                  (ii)  Products without Installation Services. Lucent shall
                        invoice Diveo for Products ordered without installation
                        Services one hundred percent (100%) upon Delivery.

                  (iii) Services (other than Installation Services with Products
                        as provided above). Unless otherwise agreed upon by the
                        Parties (e.g., invoice based on meeting performance
                        milestones), Lucent shall invoice Diveo for Services
                        monthly in arrears. All invoices for Services to be
                        performed in any country other than the United States
                        shall be issued by the Lucent Affiliate in such country
                        to the Diveo entity on the Purchase Order. Such invoice
                        shall include invoice date, quantities, unit prices and
                        total amount due. Each invoice shall also indicate the
                        corresponding Purchase Order for each line item and the
                        corresponding milestone for each Service (if
                        applicable).

            (b)   All invoices shall be in United States dollars for Products
                  and United States based Services and in local currency for
                  locally provided Services. On each invoice, Lucent shall
                  include the calculations utilized to establish any charges,
                  and each invoice shall show details and information as to
                  charges as may be reasonably specified by Diveo, including as
                  necessary to satisfy Diveo's internal accounting; provided,
                  however, that to the extent that a firm pricing quotation
                  previously delivered to Diveo by Lucent expressly provides
                  such calculations, details and information, Lucent may
                  cross-reference such quotation in the applicable invoice in
                  lieu of including such calculations, details or information,
                  as applicable, in such invoice. Each invoice shall also (i)
                  separately state the amounts of any taxes Lucent is collecting
                  from Diveo and (ii) identify that the invoice is a
                  Lucent-issued invoice.

            (c)   To the extent a credit may be due Diveo pursuant to this
                  Agreement, Lucent shall provide Diveo with an appropriate
                  credit against amounts then due and owing. To the extent that
                  an amount due Diveo pursuant to this Agreement is not credited
                  or paid within sixty (60) days of becoming due, Lucent shall
                  pay such amounts to Diveo within thirty (30) calendar days
                  after such sixty-day period.

      11.2. Payment Due.

            (a)   Subject to the other provisions of this Article 11 and
                  Schedule C, charges shall be due and payable by Diveo in
                  accordance with the time period set forth in Schedule J after
                  receipt of a proper invoice for such amount (i.e., net
                  forty-five (45) days). Subject to the other terms of this
                  Article 11, in the event that any payments are not received by
                  Lucent within ten (10) days after written notice to Diveo by
                  Lucent indicating that such payments are due and owing and
                  unpaid, then commencing at the end of such ten (10) day
                  period, Diveo will also pay a late fee equal to the lesser of
                  (a) one (1) percent of the amount of such payment per month;
                  or (b) the maximum amount permissible by law.

            (b)   In the event that Diveo consistently and repeatedly fails to
                  pay material undisputed amounts due under Purchase Orders in
                  accordance with Subsection

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                  (a) of this Section, and Diveo failure continues within sixty
                  (60) calendar days of notice from Lucent of such consistent
                  and repeated failures, then Lucent may, in addition to all
                  other remedies Lucent may have pursuant to this Agreement and
                  applicable law, condition acceptance of future Purchase Orders
                  on reasonable payment terms satisfactory to Lucent that
                  provide Lucent with reasonable assurances that it will be paid
                  in a satisfactory manner; provided, however, that such payment
                  terms shall be no less favorable to Diveo than prepayment in
                  full for such future Purchase Orders.

            (c)   All amounts due and payable to Lucent under this Article 11
                  shall be paid, at Diveo's option, (i) by check payable to the
                  order of Lucent, (ii) through draw-down of Lucent-provided
                  financing under the Credit Agreement, or (iii) by electronic
                  funds transfer to Lucent from account(s) designated by Diveo.

      11.3. Accountability.

            (a)   Lucent shall maintain complete and accurate records of and
                  supporting documentation for the amounts billable to, and
                  payments made by, Diveo for (i) Services billed on a time and
                  materials basis, (ii) incidental expenses payable by Diveo
                  pursuant to Section 10.3, and (iii) any Out-of-Pocket Expenses
                  or costs payable by, or other expenses reimbursable by, Diveo
                  pursuant to the Agreement. Lucent shall maintain such records
                  and supporting documentation in accordance with generally
                  accepted accounting principles applied on a consistent basis.

            (b)   Lucent agrees to provide Diveo with documentation and other
                  information with respect to each invoice as may be reasonably
                  requested by Diveo to verify accuracy and compliance with the
                  provisions of this Agreement.

            (c)   Upon Diveo's reasonable request, Diveo and its authorized
                  agents and representatives shall, at Lucent's option, (i)
                  receive copies of or (ii) have access to such records and
                  supporting documentation as described in Subsection (a) of
                  this Section for purposes of audit during normal business
                  hours during the Term and during the period for which Lucent
                  is otherwise required to maintain such records. Lucent shall
                  reasonably cooperate with Diveo or its designees in connection
                  with audits or examinations by regulatory authorities.

      11.4. Proration.

            Periodic charges under this Agreement are to be computed on a
            calendar month basis, and shall be prorated for any partial month.

      11.5. Set Off.

            With respect to any amount to be paid by Diveo hereunder, Diveo may
            set off against such amount any amount that Lucent is obligated to
            pay Diveo hereunder. With respect to any amount to be paid by Lucent
            hereunder for which Diveo has provided Lucent with notification that
            such amount is to be paid by Lucent, Lucent may set off against such
            amount any amount that Diveo is obligated to pay Lucent hereunder.

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      11.6. Disputed Charges.

            Subject to Section 11.5, Diveo shall pay undisputed charges when
            such payments are due under this Article 11. Diveo may withhold
            payment of particular charges that Diveo disputes in good faith.
            Diveo shall notify Lucent of any disputed invoice amounts in
            accordance with Schedule J. In the event a dispute over an invoiced
            amount is resolved against Diveo, Diveo shall pay such amount within
            forty-five (45) days together with interest at the rate set forth in
            Section 11.2(a) from the original due date until the payment date.

      11.7. Encumbrances.

            Except to the extent granted in the Credit Agreement or otherwise
            expressly set forth in this Agreement, Lucent shall not perfect a
            security interest, lien or other encumbrance upon any Product,
            Product component or Service provided pursuant to this Agreement.

12.   CONFIDENTIALITY

      12.1. Confidential Information.

            Lucent and Diveo each acknowledge that they may be furnished with,
            receive, or otherwise have access to information of or concerning
            the other Party that such Party considers to be confidential,
            proprietary, a trade secret or otherwise restricted. As used in this
            Agreement and subject to Section 12.3, "Confidential Information"
            means all information, in any form, furnished or made available
            directly or indirectly by one Party (the "Disclosing Party") to the
            other (the "Receiving Party") that (i) concerns the operations,
            affairs and businesses of the Disclosing Party, the financial
            affairs of the Disclosing Party, the relations of the Disclosing
            Party with its customers, employees and service providers, and
            technical information of a Disclosing Party, or (ii) is marked
            confidential, restricted, proprietary, or with a similar
            designation. The terms and conditions of this Agreement shall be
            deemed Confidential Information.

      12.2. Obligations.

            The following obligations with respect to Confidential Information
            shall survive the expiration or termination of this Agreement for a
            period of seven (7) years or such longer period as required by
            regulation, law or court order.

            (a)   Each Party's Confidential Information shall remain the
                  property of that Party except as expressly provided otherwise
                  by the other provisions of this Agreement. Each Party shall
                  each use at least the same degree of care, but in any event no
                  less than a reasonable degree of care, to prevent unauthorized
                  disclosure of Confidential Information as it employs to avoid
                  unauthorized disclosure of its own information of a similar
                  nature. Except as otherwise permitted hereunder, the Parties
                  may disclose such information to entities performing services
                  required hereunder or to third party consultants, agents or
                  contractors where the entity or person agrees in writing to
                  assume the obligations substantially similar to those
                  described in this Section 12.2.

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            (b)   Each Party shall take reasonable steps to ensure that its
                  employees, consultants, agents and contractors comply with
                  this Section 12.2. In the event of any disclosure or loss of,
                  or inability to account for, any Confidential Information of
                  the Disclosing Party, the Receiving Party shall promptly, at
                  its own expense: (i) notify the Disclosing Party in writing;
                  (ii) take such actions as may be necessary and cooperate in
                  all reasonable respects with the Disclosing Party to minimize
                  the violation and any damage resulting therefrom.

      12.3. Exclusions.

            (a)   Confidential Information shall exclude any particular
                  information that the Receiving Party can demonstrate:

                  (i)   At the time of disclosure, was lawfully in the public
                        domain or in the possession of the Receiving Party;

                  (ii)  After disclosure, is lawfully published or otherwise
                        becomes part of the public domain through no fault of
                        the Receiving Party;

                  (iii) Was received after disclosure from a third party who had
                        a lawful right to disclose such information to the
                        Receiving Party without any obligation to restrict its
                        further use or disclosure;

                  (iv)  Was lawfully independently developed by the Receiving
                        Party without reference to Confidential Information of
                        the Disclosing Party; or

                  (v)   Was required to be disclosed to satisfy a legal
                        requirement of a competent government body; provided
                        that, immediately upon receiving such request and to the
                        extent that it may legally do so, the Receiving Party
                        advises the Disclosing Party promptly and prior to
                        making such disclosure in order that the Disclosing
                        Party may interpose an objection to such disclosure,
                        take action to assure confidential handling of the
                        Confidential Information, or take such other action as
                        it deems appropriate to protect the Confidential
                        Information.

            (b)   Either Party may disclose the terms and conditions of this
                  Agreement to third parties that (i) have expressed a bona fide
                  interest in consummating a significant financing, merger or
                  acquisition transaction between such third parties and such
                  Party, (ii) have a reasonable ability (financial and
                  otherwise) to consummate such transaction, and (iii) have
                  executed a nondisclosure agreement that includes within its
                  scope the terms and conditions of this Agreement and also
                  includes a procedure to limit the extent of copying and
                  distribution of this Agreement. Each Party shall endeavor to
                  delay the disclosure of the terms and conditions of this
                  Agreement until the status of discussions concerning such
                  transaction warrants such disclosure.

      12.4. No Implied Rights.

            Nothing contained in this Section shall be construed as obligating a
            Party to disclose its Confidential Information to the other Party,

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            or as granting to or conferring on a Party, expressly or impliedly,
            any rights or license to the Confidential Information of the other
            Party.

13.   REPRESENTATIONS, WARRANTIES AND COVENANTS

      13.1. Pass-Through Warranties.

            Without limiting any other representation, warranty or covenant
            contained in this Article 13, Lucent may from time to time provide
            certain Products and other items for which Lucent is entitled to
            warranties and indemnities from the manufacturers, lessors or
            licensors of such items. Lucent shall pass through to Diveo the
            benefits of such warranties and indemnities to the extent that
            Lucent is permitted pursuant to any agreements between Lucent and
            such manufacturers, lessors or licensors. To the extent that Lucent
            is able to pass through to Diveo any such benefits, Diveo may
            enforce such benefits in Lucent's name, and Lucent shall reasonably
            cooperate with Diveo as necessary to permit Diveo to enforce such
            benefits.

      13.2. Ownership or Use.

            Lucent represents and warrants that Diveo shall receive good and
            valid title to all Products (excluding Software Products) provided
            pursuant to this Agreement and shall be entitled to the rights of
            possession and quiet enjoyment thereto, free of any liens or
            encumbrances, except as provided in the Credit Agreement.

      13.3. Authorization.

            (a)   Each Party represents and warrants to the other that:

                  (i)   It has the requisite corporate power and authority to
                        enter into this Agreement and to carry out the
                        transactions contemplated by this Agreement; and

                  (ii)  the execution, delivery and performance of this
                        Agreement and the consummation of the transactions
                        contemplated by this Agreement have been duly authorized
                        by the requisite corporate action on the part of such
                        Party.

            (b)   Each Party represents and warrants to the other that it is not
                  subject to any contractual or other obligation that would
                  prevent it from entering into this relationship.

      13.4. Inducements.

            Each Party represents and warrants that it has not offered or
            provided any inducements in violation of law or the other Party's
            policies, of which it has been given notice, in connection with this
            Agreement.

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      13.5. Work Standards.

            (a)   Lucent covenants that the Services shall be rendered by Lucent
                  with promptness and diligence and shall be executed in a
                  workmanlike manner, in accordance with the practices and high
                  professional standards used in well-managed operations
                  performing services similar to the Services. Lucent covenants
                  that it shall use adequate numbers of qualified individuals
                  with suitable training, education, experience, and skill to
                  perform the Services.

            (b)   If the Services prove not to be performed as required within a
                  twelve-(12) month period commencing on the date of completion
                  of the applicable Services, Lucent shall correct the defect or
                  non-conforming Services at no additional cost or expense to
                  Diveo. In the event the Services cannot be corrected within
                  the applicable time periods specifically identified in this
                  Agreement or thirty (30) days of Diveo's notice, whichever
                  period is shorter (or such additional period of time as may be
                  mutually agreed upon), Lucent shall at Diveo's option render a
                  full refund or credit based on the original charges for the
                  Services.

      13.6. Product Warranties.

            (a)   During the Warranty Period and any Extended Warranty Periods
                  for each Lucent Product, Lucent shall perform the specific
                  warranty and extended warranty Services as may be set forth in
                  Schedule A.

            (b)   During the Warranty Period and any Extended Warranty Periods,
                  Lucent warrants that Products (other than Third Party
                  Products) provided under this Agreement shall be free from
                  defects in , material and workmanship, and shall operate in
                  accordance with applicable Acceptance Criteria, during the
                  Warranty Period and any Extended Warranty Periods.

            (c)   Lucent covenants that all Lucent Product components (except
                  for spare parts provided in the course of repair or
                  replacement, which may be refurbished or re-manufactured)
                  provided hereunder shall be new, not refurbished or
                  re-manufactured.

            (d)   During the applicable Warranty Period and Extended Warranty
                  Period, with respect to the Software associated with Lucent
                  Products, Lucent covenants that it shall provide to Diveo, at
                  no additional charge, error-fixes, corrections and revisions
                  to the Software that are necessary to maintain such Software
                  in compliance with the Acceptance Criteria or as otherwise
                  generally provided to any other customer of Lucent. The
                  foregoing warranties and covenants shall also apply with
                  respect to new versions, upgrades and enhancements provided by
                  Lucent to the Software.

            (e)   During the term of this Agreement, Lucent covenants that it
                  shall provide updated Documentation reflecting any changes to
                  Products (other than Third Party Products).

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            (f)   During the Warranty Period and any Extended Warranty Periods,
                  Lucent shall provide telephone support to Diveo in order to
                  assist Diveo to locate and correct functional or operational
                  problems with Products (other than Third Party Products). Such
                  support shall be provided on a 8 hour, 5-days-per-week basis
                  (provided that if Diveo purchases maintenance Services offered
                  by Lucent, such support is provided on a 24 hour,
                  7-days-per-week basis). Lucent shall provide a toll-free
                  number for Diveo's calls to Lucent.

            (g)   During the Warranty Period and any Extended Warranty Periods,
                  Lucent will provide Diveo with all software updates to
                  Software. Lucent shall implement all updates to all Lucent
                  Products. Upgrades and new software releases will be charged
                  in accordance with the price established at the time the
                  upgrade is implemented by Diveo or on Diveo's behalf and
                  incorporated into Schedule C subject to the following: Diveo
                  shall not be required to pay any additional charges relating
                  to that portion of an upgrade or new software release that (A)
                  constitutes an update, (B) reflects only an immaterial
                  enhancement or improvement in current functionality and not
                  new functionality or materially increased functional capacity
                  or (C) is provided by Lucent to another customer as part of
                  the provision of software maintenance services under similar
                  terms and conditions. To the extent the upgrade or new
                  software release includes new functionality or materially
                  increased functional capacity and Diveo desires to take
                  advantage of same, Diveo shall pay a fair and competitive
                  price established at the time the upgrade or new software
                  release is implemented by Diveo or on Diveo's behalf and the
                  resulting incremental price shall be incorporated in Schedule
                  C.

            (h)   During the Warranty Period and any Extended Warranty Periods,
                  Lucent shall provide access to technical resources to resolve
                  any problem with Products (other than Third Party Products)
                  that Diveo cannot resolve through lower level support,
                  including help desk support for problems that cannot be
                  remotely diagnosed and cured. If on-site support reveals that
                  the problem originated with Diveo or a third-party, Lucent may
                  charge Diveo reasonable time and material rates for the
                  on-site support.

            (i)   Subject to Section 19.9 of the Agreement, in the event that
                  any Product fails to comply with in this Section 13.6, Diveo
                  will notify Lucent, specifying the nature of the failure in
                  reasonable detail. Lucent shall correct the failure at no
                  additional charge to Diveo so that the Product complies with
                  this Section 13.6. The Parties agree to follow the procedures
                  established in Schedule H with respect to any warranty claims
                  made by Diveo under this Section 13.6.

      13.7. Discontinued Lucent Products

            (a)   Lucent shall notify Diveo at least one (1) year before Lucent
                  discontinues accepting Purchase Orders from Diveo for a Lucent
                  Product. Where Lucent generally offers an equivalent Lucent
                  Product (based upon form, fit and function) this notification
                  period may vary but shall in no event be less than six (6)
                  months.

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            (b)   Lucent shall, in addition to its obligations under this
                  Agreement (including with respect to the Product warranties
                  set forth in this Agreement), make available ongoing Warranty
                  Period and Extended Warranty Period support during Extended
                  Warranty Periods upon the terms and conditions of this
                  Agreement for a period of five (5) years after the earlier of
                  (i) termination in whole or expiration of the Agreement, or
                  (ii) such Product's discontinued availability effective date.

      13.8. Compliance.

            Lucent represents and warrants that all Products delivered hereunder
            operate in conformance with all applicable domestic and
            international laws and regulations, including, safety and
            environmental laws and regulations (collectively, "Laws") in effect
            as of the date of Delivery. Upon Diveo's request, Lucent will issue
            to Diveo written statements of compliance that Products provided to
            Diveo comply with the foregoing representation, warranty and
            covenant. Lucent agrees to provide any required changes to the
            Lucent Products as a result of changes in the Laws in the event (i)
            of a manufacturer recall, (ii) the applicable Laws require the
            manufacturer to make such changes, (iii) such changes are otherwise
            provided under the Warranty Period or Extended Warranty Period, or
            (iv) Lucent provides such changes to any other Lucent customer in
            the Territory.

      13.9. Integration.

            Lucent warrants that for a period of twelve (12) months following
            the Acceptance date of any Lucent Product purchased hereunder, such
            Lucent Product, when installed and used in accordance with any
            portion of the Network Architecture designed and engineered by
            Lucent, will interface and interoperate in an integrated way with
            the other Products recommended in writing by Lucent for inclusion in
            such portion of the Network Architecture designed and engineered by
            Lucent. If a Lucent Product fails to so interface and interoperate
            during such twelve-month period, Lucent shall initiate corrective
            actions after receipt of notice of the defect or failure and shall
            promptly cure such defect at Lucent's sole cost and expense. The
            Parties agree to follow the procedures established in Schedule H
            with respect to any warranty claims made by Diveo under this Section
            13.9.

            This warranty shall not apply to the extent that the applicable
            Lucent Product's failure to operate results from:

            (a)   the Lucent Products having been installed by a party other
                  than Lucent not in accordance with the Network Architecture
                  designed by Lucent, or Documentation and other advice and
                  training provided by Lucent;

            (b)   a failure or defect in Third Party Products to operate
                  interconnected to the Lucent Products or from such Third Party
                  Product's failure to operate in accordance with its
                  specifications;

            (c)   any changes made to the applicable portion of the Network
                  Architecture without Lucent's written recommendation or
                  approval;

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            (d)   a defect in the applicable Lucent Product that is otherwise
                  covered by the warranties contained in Section 13.6 and
                  Schedule H;

            (e)   Diveo's failure to load any software updates or upgrades made
                  available by Lucent for the correction of any identified
                  performance problem;

            (f)   Diveo's failure to maintain the Lucent Product and the
                  applicable portion of the Network in accordance with Lucent's
                  written instructions;

            (g)   Any damage to the Lucent Product or to the other Products in
                  the applicable portion of the Network caused by external
                  forces outside of Lucent's control; or

            (h)   Any other event of force majeure as defined in this Agreement

      13.10. Documentation.

            Lucent covenants that all Documentation provided by Lucent will (a)
            accurately reflect the operations and capabilities of any
            corresponding Products, (b) be accurate, complete and written in a
            manner understood by Diveo, (c) be updated from time to time to
            reflect the changes to the Products to the extent that Lucent
            generally provides such updates to its customers (including pursuant
            to warranty or extended warranty services), and (d) be provided in
            the English language and any other languages in which the
            Documentation is or becomes available. If translation of the
            documents into another language is required, expenses related to the
            translation service are to be paid by Diveo.

      13.11. Viruses.

            Lucent covenants that it shall exercise reasonable care in
            recommending Third Party Products that are free of Viruses and that
            there are no Viruses coded or introduced into (a) any Lucent Product
            or (b) other Product that is not a Third Party Product. Lucent
            agrees that, in the event a Virus is found to have been introduced
            into any such Lucent Product or other Product that is not a Third
            Party Product either (i) prior to Delivery of such Lucent Product or
            Product to Diveo, or (ii) from any modification, upgrade,
            enhancement or new release to such Lucent Product or Product
            provided by Lucent, Lucent shall use all commercially reasonable
            efforts, at no additional charge, to assist Diveo in reducing the
            effects of the Virus and, if the Virus causes a loss of operational
            efficiency or loss of data, to assist Diveo to the same extent to
            mitigate such losses.

      13.12. Disabling Code.

            Lucent covenants that it shall not without the prior written consent
            of Diveo, Lucent shall not insert into any Product any code which
            would have the effect of disabling or otherwise shutting down all or
            any portion of a Product ("Disabling Code"). With respect to any
            Disabling Code that may be part of any Product, Lucent shall not
            invoke such Disabling Code at any time, including upon expiration or
            termination of this Agreement (in whole or in part) for any reason,
            without Diveo's prior written consent.

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      13.13. Year 2000.

            Lucent represents, warrants and covenants:

            (a)   that it will exercise reasonable care in recommending Third
                  Party Products that are Year 2000 Compliant;

            (b)   that, during the longer of (i) the Warranty Periods and
                  Extended Warranty Periods and (ii) December 31, 2001, Lucent
                  Products, and other Products other than Third Party Products,
                  shall be Year 2000 Compliant; and

            (c)   to the extent that Lucent provides testing and validation
                  Services with respect to a Diveo Network (which Services may
                  be performed in Lucent's sole discretion) and certifies that
                  such Diveo Network is Year 2000 Compliant, that such Diveo
                  Network is Year 2000 Compliant.

            At Diveo's reasonable request, Lucent agrees to cooperate and assist
            Diveo and its designated third party contractors in connection with
            Diveo's other Year 2000 compliance efforts.

      13.14. Disclaimer

            (a)   The foregoing representations warranties, and covenants will
                  not extend to defective conditions or non-conformities to the
                  extent resulting from the following, if not consistent with
                  the applicable Specifications and Documentation: Diveo
                  modification, misuse, neglect, accident, abuse, improper
                  wiring, repairing, splicing, alteration, installation, storage
                  or maintenance.

            (b)   THE FOREGOING REPRESENTATIONS AND WARRANTIES ARE EXCLUSIVE AND
                  IN LIEU OF ALL OTHER EXPRESS AND IMPLIED WARRANTIES, INCLUDING
                  WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
                  PURPOSE. DIVEO'S SOLE AND EXCLUSIVE REMEDY FOR A BREACH OF THE
                  PRODUCT WARRANTY SET FORTH IN SECTION 13.7 HEREUNDER SHALL BE
                  LUCENT'S OBLIGATION TO REPAIR, REPLACE, CREDIT OR REFUND AS
                  PROVIDED HEREIN.

14.   TERMINATION

      14.1. Termination for Cause.

            In the event that Lucent:

            (a)   commits a material breach of this Agreement, which breach is
                  not cured within thirty (30) calendar days after notice of
                  breach from Diveo to Lucent,

            (b)   commits a material breach of this Agreement which is not
                  capable of being cured within thirty (30) calendar days and
                  fails to (i) proceed promptly and diligently to correct the
                  breach, (ii) develop within thirty (30) calendar days
                  following written notice of breach from Diveo a complete plan
                  for curing the

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                  breach, and (iii) cure the breach within sixty (60) calendar
                  days of notice thereof, or

            (c)   commits numerous breaches of its duties or obligations which
                  collectively constitute a material breach of this Agreement,

            Then Diveo may, by giving written notice to Lucent, terminate this
            Agreement or any affected Purchase Orders, in whole or in part, for
            cause as of a date specified in the notice of termination.

      14.2. Termination by Lucent.

            In the event that Diveo materially and repeatedly fails to pay
            Lucent when due undisputed charges under this Agreement and Diveo
            continues to materially and repeatedly not pay Lucent when due
            undisputed charges following sixty (60) calendar days of written
            notice from Lucent, Lucent may, by giving written notice to Diveo,
            terminate this Agreement as of a date specified in such notice of
            termination.

      14.3. Termination Option for Lucent's Failure to Provide Financing.

            In the event Diveo terminates the Credit Agreement in accordance
            with the terms and conditions of such Credit Agreement due to a
            material breach by Lucent , Diveo may upon notice to Lucent elect to
            terminate this Agreement in whole or in part. Any such termination
            shall be at no cost or liability to Diveo, excluding amounts due and
            payable by Diveo as of the date of such termination.

      14.4. Disengagement Assistance.

            (a)   Upon termination or expiration of this Agreement, Diveo may
                  extend all or any portion of the Agreement beyond the
                  effective date of termination one or more times as it elects,
                  at its sole discretion, provided that the total of all such
                  extensions shall not exceed six (6) months (unless a longer
                  time period is mutually agreed to by the Parties) following
                  the original effective date of termination or expiration (such
                  period the "Disengagement Period"). In the event Lucent
                  terminates this Agreement in accordance with Section 14.2,
                  Lucent may request Diveo to pay for estimated Services to be
                  provided during the month in advance (with unused time to be
                  credited to Diveo or refunded if no further payments are due
                  Lucent).

            (b)   Upon termination or expiration of this Agreement, Lucent
                  agrees to provide Diveo and its designated third party
                  providers all reasonable assistance as necessary to effect a
                  smooth transition to a new supplier.

15.   LIABILITY

      15.1. General Intent.

            Subject to the specific provisions of this Article 15, it is the
            intent of the Parties that each Party shall be liable to the other
            Party for any actual damages incurred by the non-

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            breaching Party as a result of the breaching Party's failure to
            perform its obligations in the manner required by this Agreement.

      15.2. Liability Restrictions.

            (a)   IN NO EVENT, WHETHER IN CONTRACT OR IN TORT (INCLUDING BREACH
                  OF WARRANTY, NEGLIGENCE AND STRICT LIABILITY IN TORT), SHALL A
                  PARTY BE LIABLE FOR INDIRECT OR CONSEQUENTIAL, EXEMPLARY,
                  PUNITIVE OR SPECIAL DAMAGES, INCLUDING, WITHOUT LIMITATION,
                  LOST REVENUES, LOST PROFITS AND SIMILAR DAMAGES EVEN IF SUCH
                  PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN
                  ADVANCE.

            (b)   Subject to Subsections (c) and (d) of this Section, each
                  Party's total liability to the other, whether in contract or
                  in tort (including breach of warranty, negligence and strict
                  liability in tort) shall be limited to an amount equal to the
                  greater of (i) ten million U.S. Dollars (U.S. $10,000,000) and
                  (ii) twenty-five percent (25%) of the total amounts paid to
                  Lucent under this Agreement.

            (c)   The limitation set forth in Subsection (b) of this Section
                  shall not apply with respect to: (i) damages occasioned by
                  willful misconduct, including abandonment or wrongful
                  termination of this Agreement by Lucent, (ii) claims of breach
                  of confidentiality, (iii) claims subject to indemnification
                  pursuant to the Agreement, (v) failure to comply with
                  applicable laws and regulations, and (vii) any amounts paid by
                  Diveo that are refundable (either by credit or payment) by
                  Lucent pursuant to this Agreement.

            (d)   For the purposes of this Section 15.2, all amounts payable or
                  paid to third parties in connection with claims that are
                  eligible for indemnification pursuant to this Agreement shall
                  be deemed direct damages.

      15.3. Force Majeure.

            (a)   No Party shall be liable for any default or delay in the
                  performance of its obligations under this Agreement if and to
                  the extent such default or delay is caused, directly or
                  indirectly, by fire, flood, lightning, earthquake, elements of
                  nature or acts of God, riots, civil disorders, rebellions or
                  revolutions in any country, with respect to Lucent, its sole
                  suppliers or its subcontractors, or any other cause beyond the
                  reasonable control of such Party; provided, however, that (i)
                  the non-performing Party is without fault in causing such
                  default or delay, and (ii) such default or delay could not
                  have been prevented by reasonable precautions and cannot
                  reasonably be circumvented by the non-performing Party through
                  the use of alternate sources, workaround plans or other means,
                  including to the extent contemplated by applicable disaster
                  recovery processes or procedures).

            (b)   In such event the non-performing Party shall be excused from
                  further performance or observance of the obligation(s) so
                  affected for as long as such circumstances prevail and such
                  Party continues to use commercially reasonable

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                  efforts to recommence performance or observance whenever and
                  to whatever extent possible without delay. In addition, in
                  such event, Lucent shall give priority status to Diveo at
                  least as favorable as that given to other customers to
                  recommence performance or observance of its obligations. Any
                  Party so delayed in its performance shall immediately notify
                  the Party to whom performance is due by telephone (to be
                  confirmed in writing within two (2) business days of the
                  inception of such delay) and describe at a reasonable level of
                  detail the circumstances causing such delay.

            (c)   If any event under Subsection (a) of this Section above
                  substantially prevents, hinders, or delays Lucent's
                  performance for more than sixty (60) consecutive calendar
                  days, then at Diveo's option: (i) Diveo may terminate for
                  convenience at no charge to Diveo or modify any affected
                  portion of any Purchase Order, or terminate for convenience at
                  no charge to Diveo any affected portion of this Agreement, and
                  the charges payable hereunder shall be equitably adjusted to
                  reflect such termination; or (ii) Diveo may terminate this
                  Agreement without liability to Diveo or Lucent as of a date
                  specified by Diveo in a written notice of termination to
                  Lucent. Lucent shall not have the right to any additional
                  payments from Diveo for costs or expenses incurred by Lucent
                  as a result of any force majeure occurrence.

16.   INDEMNIFICATION

      16.1. Indemnities by Lucent.

            Lucent agrees to defend Diveo and its Affiliates and their
            respective officers, directors, employees, agents, successors, and
            assigns, from any claim, action, or suit, and to indemnify Diveo and
            its Affiliates and their respective officers, directors, employees,
            agents, successors, and assigns against all liabilities assessed
            against Diveo by final judgment or Lucent approved settlement
            arising from, in connection with, or based on allegations of, any of
            the following:

            (a)   Lucent's failure to observe or perform any duties or
                  obligations to third parties (e.g., duties or obligations to
                  subcontractors);

            (b)   Any claims of infringement of any patent, trade secret, or
                  copyright alleged to have occurred based upon the provision of
                  Lucent Products or performance of Services by Lucent, except
                  to the extent that such claims arise from (i) modification of
                  a Product or any component thereof by Diveo that is not
                  recommended or otherwise approved by Lucent, (ii) maintenance
                  of a Product by Diveo other than in accordance with the
                  Specifications and the provisions set forth in this Agreement
                  that is not recommended or otherwise approved in writing by
                  Lucent, (iii) use of a Product by Diveo in combination with
                  deliverables furnished by third parties that is not
                  recommended or otherwise approved in writing by Lucent, or (v)
                  arises solely from Lucent's incorporation of software or
                  equipment into a Product that is provided by directly by
                  Diveo;

            (c)   The death or bodily injury of any agent, employee, customer,
                  business invitee or any other person caused by the tortious
                  conduct of Lucent;

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            (d)   The damage, loss or destruction of any real or tangible
                  personal property caused by the tortious conduct of Lucent; or

            (e)   Any claim, demand, charge, action, cause of action, or other
                  proceeding asserted against Diveo but resulting from an act or
                  omission of Lucent in its capacity as an employer of a person.

      16.2. Indemnities by Diveo.

            Diveo agrees to defend Lucent and its Affiliates and their
            respective officers, directors, employees, agents, successors, and
            assigns, from any claim, action, or suit, and to indemnify Lucent
            and its Affiliates and their respective officers, directors,
            employees, agents, successors, and assigns against all liabilities
            assessed against Lucent by final judgment or Diveo approved
            settlement arising from, in connection with, or based on allegations
            of, any of the following:

            (a)   Diveo's failure to observe or perform any duties or
                  obligations to third parties (e.g., duties or obligations to
                  subcontractors);

            (b)   Any claims of infringement of any patent, trade secret, or
                  copyright, alleged to have occurred based upon misuse of
                  Lucent Products by Diveo, including (i) modification of a
                  Product or any component thereof by Diveo that is not
                  recommended or otherwise approved in writing by Lucent, (ii)
                  maintenance of a Product performed by Diveo other than in
                  accordance with the Specifications and the provisions set
                  forth in this Agreement that is not recommended or otherwise
                  approved in writing by Lucent, (iii) use of a Product by Diveo
                  in combination with deliverables furnished by third parties
                  that is not recommended or otherwise approved in writing by
                  Lucent;

            (c)   The death or bodily injury of any agent, employee, customer,
                  business invitee or any other person caused by the tortious
                  conduct of Diveo;

            (d)   The damage, loss or destruction of any real or tangible
                  personal property caused by the tortious conduct of Diveo; or

            (e)   Any claim, demand, charge, action, cause of action, or other
                  proceeding asserted against Lucent but resulting from an act
                  or omission of Diveo in its capacity as an employer of a
                  person.

      16.3. Infringement.

            If any use by Diveo of any Product or other item used by Lucent to
            provide the Services becomes, or in Lucent's reasonable opinion is
            likely to become, the subject of an infringement or misappropriation
            claim or proceeding and is enjoined or Diveo's use is otherwise
            adversely impacted, in addition to indemnifying Diveo as provided in
            Section 16.1 and to the other rights Diveo may have under this
            Agreement, Lucent shall, promptly at Lucent's expense:

            (a)   Secure the right to continue using the Product or item, or

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            (b)   If the action described in Subsection (a) cannot be
                  accomplished by Lucent, replace or modify the Product or item
                  to make it non-infringing, provided that any such replacement
                  or modification will not degrade the fit, form or function of
                  the affected Products or Services, or

            (c)   If the action described in Subsection (b) of this Section
                  cannot be accomplished by Lucent, and only in such event,
                  provide Diveo with a full refund for the affected Products and
                  Services.

      16.4. Indemnification Procedures.

            With respect to third-party claims, the following procedures shall
            apply:

            (a)   Promptly after receipt of notice of the commencement or
                  threatened commencement of any civil, criminal,
                  administrative, or investigative action or proceeding
                  involving a claim in respect of which Indemnitee will seek
                  indemnification pursuant to this Article 16, Indemnitee will
                  notify Indemnitor of such claim in writing. No failure to so
                  notify Indemnitor will relieve Indemnitor of its obligations
                  under this Agreement except to the extent that it can
                  demonstrate damages attributable to such failure. Within
                  fifteen (15) calendar days following receipt of written notice
                  from Indemnitee relating to any claim, but no later than ten
                  (10) calendar days before the date on which any response to a
                  complaint or summons is due, Indemnitor will notify Indemnitee
                  in writing if Indemnitor elects to assume control of the
                  defense and settlement of that claim (a "Notice of Election").

            (b)   If Indemnitor delivers a Notice of Election relating to any
                  claim within the required notice period, Indemnitor shall be
                  entitled to have sole control over the defense and settlement
                  of such claim; provided that (i) Indemnitee shall be entitled
                  to participate in the defense of such claim and to employ
                  counsel at its own expense to assist in the handling of such
                  claim, and (ii) Indemnitor shall obtain the prior written
                  approval of Indemnitee before entering into any settlement of
                  such claim or ceasing to defend against such claim if such
                  settlement or ceasing to defend shall have a material impact
                  on the Indemnitee. After Indemnitor has delivered a Notice of
                  Election relating to any claim in accordance with the
                  preceding paragraph, Indemnitor shall not be liable to
                  Indemnitee for any legal expenses incurred by Indemnitee in
                  connection with the defense of that claim. In addition,
                  Indemnitor shall not be required to indemnify Indemnitee for
                  any amount paid or payable by the Indemnitee in the settlement
                  of any claim for which the Indemnitor has delivered a timely
                  Notice of Election if such amount was agreed to without the
                  written consent of the Indemnitor.

            (c)   If Indemnitor does not deliver a Notice of Election relating
                  to any claim within the required notice period, Indemnitee
                  shall have the right to defend the claim in such manner as it
                  may deem appropriate, at the cost and expense of Indemnitor.
                  Indemnitor shall promptly reimburse Indemnitee for all such
                  costs and expenses.

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17.   DISPUTE RESOLUTION

      Any dispute between the Parties arising out of or relating to this
      Agreement, including with respect to the interpretation of any provision
      of this Agreement and with respect to the performance by Lucent or Diveo,
      shall be resolved as provided in this Article 17.

      17.1. Informal Dispute Resolution.

            (a)   Prior to the initiation of formal dispute resolution
                  procedures, the Parties shall first attempt to resolve their
                  dispute informally pursuant the escalation procedures set
                  forth in Schedule I. In connection with such escalation
                  process:

                  (i)   The designated representatives shall meet as often as
                        the Parties reasonably deem necessary in order to gather
                        and furnish to the other all information with respect to
                        the matter in issue which the Parties believe to be
                        appropriate and germane in connection with its
                        resolution. The representatives shall discuss the
                        problem and attempt to resolve the dispute without the
                        necessity of any formal proceeding.

                  (ii)  During the course of discussion, all reasonable requests
                        made by one Party to another for non-privileged
                        information, reasonably related to this Agreement, shall
                        be honored in order that each of the Parties may be
                        fully advised of the other's position.

                  (iii) The specific format for the discussions shall be left to
                        the discretion of the designated representatives.

            (b)   The Parties agree that disputes, controversies or claims
                  between them shall not be subject to the provisions of this
                  Section where:

                  (i)   A Party makes a good faith determination that a breach
                        of the terms of this Agreement by the other Party is
                        such that a temporary restraining order or other
                        injunctive relief is the only appropriate and adequate
                        remedy; or

                  (ii)  Institution of formal proceedings earlier than as set
                        forth in Section 17.2(a) is necessary to avoid the
                        expiration of any applicable limitations period or to
                        preserve a superior position with respect to other
                        creditors.

            (c)   If a Party files a pleading with a court seeking immediate
                  injunctive relief and this pleading is challenged by the other
                  Party and the injunctive relief sought is not awarded in
                  substantial part, the Party filing the pleading seeking
                  immediate injunctive relief shall pay all of the costs and
                  attorneys' fees of the Party successfully challenging the
                  pleading.

      17.2. Litigation.

            (a)   Formal proceedings for the resolution of a dispute may be
                  commenced after the earlier of:

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                  (i)   The designated representatives described in Section 17.1
                        conclude in good faith that amicable resolution through
                        continued negotiation of the matter does not appear
                        likely; or

                  (ii)  Thirty (30) calendar days after the initial written
                        request to appoint a designated representative pursuant
                        to Subsection 17.1(a) above (this period shall be deemed
                        to run notwithstanding any claim that the process
                        described in this Section 17.1 was not followed or
                        completed).

            (b)   The Parties consent to the jurisdiction of the courts of the
                  State of Florida (and to venue in Dade County), and to
                  jurisdiction and venue in the United States District Court for
                  the Southern District of Florida for all litigation that may
                  be brought with respect to the terms of, and the transactions
                  and relationships contemplated by, this Agreement. The Parties
                  further consent to the jurisdiction of any state court located
                  within a district that encompasses assets of a Party against
                  which a judgment has been rendered for the enforcement of such
                  judgment or award against the assets of such Party.

      17.3. Continued Performance.

            Each Party agrees to continue performing its obligations under this
            Agreement while any dispute is being resolved except to the extent
            the issue in dispute precludes performance.

      17.4. Governing Law.

            This Agreement and performance under it shall be governed by and
            construed in accordance with the laws of the State of New York
            without regard to its choice of law principles.

18.   INSURANCE REQUIREMENTS

      During the Term, Lucent shall have and maintain in force the following
      insurance coverages:

            (a)   Worker's Compensation and Employer's Liability as prescribed
                  by the law of the State or Nation in which the work is
                  performed. Lucent reserves the right to self-insure where
                  allowed by law.

            (b)   General Liability, including Products and Completed Operations
                  Liability, with a combined single limit for bodily injury and
                  property damage of at least US$ 1,000,000 for each occurrence.

            (c)   Automobile Liability if the use of motor vehicles is required
                  with a combined single limit of liability of at least US$
                  1,000,000 for each occurrence for vehicles operated in the
                  United States of America. For vehicles operated outside of the
                  United States of America, the limits of liability will be in
                  accordance with local legal requirements and sufficient to
                  meet normal and customary claims.

      The foregoing insurance coverages shall be primary and non-contributing
      with respect to any other insurance or self insurance that may be
      maintained by Diveo. Lucent shall cause its insurers to issue certificates
      of insurance evidencing that the coverages and policy endorsements

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      required under this Agreement are maintained in force and that not less
      than thirty (30) calendar days written notice shall be given to Diveo
      prior to any modification, cancellation or non-renewal of the policies.
      The minimum limits of coverage specified herein are not intended, and
      shall not be construed, to limit any liability or indemnity of Lucent
      under this Agreement.

19.   GENERAL

      19.1. Binding Nature and Assignment.

            (a)   This Agreement shall accrue to the benefit of and be binding
                  upon the Parties hereto and any purchaser or any successor
                  entity into which either Party has been merged or consolidated
                  or to which either Party has sold or transferred all or
                  substantially all of its assets.

            (b)   Neither Party may, or shall have the power to, assign this
                  Agreement or delegate such Party's obligations hereunder
                  without the prior written consent of the other, which consent
                  shall not be unreasonably withheld, except that either Party
                  may assign its rights and obligations under this Agreement
                  without the approval of the other Party to

                  (i)   an entity which acquires all or substantially all of the
                        assets of the Party,

                  (ii)  to any Affiliate, or

                  (iii) to a successor in a merger or acquisition of the Party;

                  provided, however, that in the event that the financing
                  provided by Lucent under the Credit Agreement is terminated as
                  a result of such assignment, then Lucent's consent to such
                  assignment shall be required if the entity has credit
                  worthiness less than that of Diveo.

      19.2. Entire Agreement.

            This Agreement, including any attached Schedules, constitutes the
            entire agreement between the Parties with respect to the subject
            matter in this Agreement, and supersedes all prior agreements,
            whether written or oral, with respect to the subject matter
            contained in this Agreement.

      19.3. Notices.

            All notices, requests, demands, and determinations under this
            Agreement (other than routine operational communications), shall be
            in writing and shall be deemed duly given (i) when delivered by
            hand, (ii) one (1) business day after being given to an express,
            overnight courier with a reliable system for tracking delivery,
            (iii) when sent by confirmed facsimile with a copy delivered by
            another means specified in this Section, or (iv) four (4) business
            days after the day of mailing, when mailed by United States mail,
            registered or certified mail, return receipt requested, postage
            prepaid, and addressed as follows:

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Master Supply Agreement                42            Diveo / Lucent Confidential
<PAGE>

<TABLE>
            <S>                                                <C>
            If to Diveo:                                       If to Lucent:
                    Diveo, Inc.                                        Lucent Technologies World Services Inc.
                    3201 New Mexico Avenue, NW                         2333 Ponce de Leon Blvd.
                    Suite 320                                          Coral Gables, FL 33134
                    Washington, D.C. 20016                             Attn: Managing Director, Business Development
                    Attn:  Contract Administration                     Facsimile:  (305) 569-4044
                    Facsimile:  (202) 274-0050
                                                               With a copy to:
            With a copy to:                                            Lucent Technologies World Services Inc.
                    Diveo, Inc.                                        2333 Ponce de Leon Blvd.
                    3201 New Mexico Avenue, NW                         Coral Gables, FL 33134
                    Suite 320                                          Attn: Corporate Counsel's Office
                    Washington, D.C. 20016                             Facsimile:  (305) 569-3633
                    Attn:  General Counsel's Office
                    Facsimile:  (202) 274-0050
</TABLE>

            A Party may from time to time change its address or designee for
            notification purposes by giving the other prior written notice of
            the new address or designee and the date upon which it will become
            effective.

      19.4. Counterparts.

            This Agreement may be executed in several counterparts, all of which
            taken together shall constitute one single agreement between the
            Parties hereto.

      19.5. Relationship of Parties.

            Lucent, in furnishing Products and Services hereunder, is acting as
            an independent contractor, and Lucent personnel (including its
            subcontractors) shall not be considered or represented as employees
            or agents of Diveo. Lucent is not otherwise an agent of Diveo and
            has no authority to represent Diveo as to any matters, except as
            expressly authorized in this Agreement. Lucent is solely responsible
            for: (a) performing its responsibilities under this Agreement, (b)
            management and control of its personnel; (c) the payment of all
            compensation owed to its personnel, including payment of
            employment-related taxes, benefits, and worker's compensation
            insurance; (d) the filing of all required employment returns and
            reports; and (e) the withholding and payment of all applicable
            federal, state, and local taxes and other wage or employment
            assessments, including but not limited to income tax, social
            security tax, and unemployment insurance premiums for its personnel.

      19.6. Severability.

            In the event that any provision of this Agreement conflicts with the
            law under which this Agreement is to be construed or if any such
            provision is held invalid by an arbitrator or a court with
            jurisdiction over the Parties, such provision shall be deemed to be
            restated to reflect as nearly as possible the original intentions of
            the Parties in accordance with applicable law. The remainder of this
            Agreement shall remain in full force and effect.

      19.7. Consents and Approval.

            Except where expressly provided as being in the sole discretion of a
            Party, where agreement, approval, acceptance, consent, or similar
            action by either Party is required

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            under this Agreement, such action shall not be unreasonably delayed
            or withheld. An approval or consent given by a Party under this
            Agreement shall not relieve the other Party from responsibility for
            complying with the requirements of this Agreement, nor shall it be
            construed as a waiver of any rights under this Agreement, except as
            and to the extent otherwise expressly provided in such approval or
            consent.

      19.8. Waiver of Default.

            No waiver or discharge hereof shall be valid unless in writing and
            signed by an authorized representative of the Party against which
            such amendment, waiver, or discharge is sought to be enforced. A
            delay or omission by either Party hereto to exercise any right or
            power under this Agreement shall not be construed to be a waiver
            thereof. A waiver by either of the Parties hereto of any of the
            covenants to be performed by the other or any breach thereof shall
            not be construed to be a waiver of any succeeding breach thereof or
            of any other covenant herein contained.

      19.9. Cumulative Remedies.

            Except as otherwise expressly provided herein, all remedies provided
            for in this Agreement shall be cumulative and in addition to and not
            in lieu of any other remedies available to either Party at law, in
            equity or otherwise.

      19.10. Survival.

            Any provision of this Agreement which contemplates performance or
            observance subsequent to any termination or expiration of this
            Agreement (in whole or in part) shall survive any termination or
            expiration of this Agreement (in whole or in part, as applicable)
            and continue in full force and effect. Without limiting the
            generality of the foregoing, Diveo shall have the right to extend
            any Warranty Period or Extended Warranty Periods in accordance with
            the terms of this Agreement and purchase Products and Services
            pursuant to Section 2.2, and each Party's obligations with respect
            to such Products and Services shall survive expiration or
            termination of this Agreement (in whole or in part, as applicable)
            and continue in full force and effect.

      19.11. Public Disclosures.

            All media releases, public announcements, and public disclosures
            relating to this Agreement or the subject matter of this Agreement,
            including promotional or marketing material, but not including
            announcements intended solely for internal distribution or
            disclosures to the extent required to meet legal or regulatory
            requirements beyond the reasonable control of the disclosing Party,
            shall be coordinated with and shall be subject to approval by the
            non-disclosing Party prior to release. In the event Diveo is going
            to file this Agreement as part of public securities filing, Diveo
            will notify Lucent to enable Lucent to provide prompt input to limit
            the extent of the disclosure; provided, however, Diveo shall not be
            required to delay any required filings and Diveo shall ultimately
            determine what will be disclosed.

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      19.12. Service Marks.

            Each Party agree that it shall not, without the other Party's
            written consent, use the name, service marks or trademarks of the
            other Party or its Affiliates.

      19.13. Third Party Beneficiaries.

            Except as otherwise provided in this Agreement, this Agreement shall
            not be deemed to create any rights in third parties, including
            suppliers and customers of a Party, or to create any obligations of
            a Party to any such third parties.

      19.14. Amendment.

            This Agreement shall not be modified, amended or in any way altered
            except by an instrument in writing signed by both Parties.

      19.15. Interpretation

            (a)   Terms other than those defined in this Agreement shall be
                  given their plain English meaning, and those terms, acronyms
                  and phrases known in the telecommunications and information
                  technology services industries shall be interpreted in
                  accordance with their generally known meanings. Unless the
                  context otherwise requires, words importing the singular
                  include the plural and vice-versa. Terms defined in the Credit
                  Agreement shall not be superceded by the same terms defined in
                  this Agreement.

            (b)   References to "Article", "Section", "Subsection" and
                  "Schedule" mean references to an article, section, subsection
                  or schedule of this Agreement, as appropriate, unless
                  otherwise specifically stated.

            (c)   The article and section headings in this Agreement are
                  intended to be for reference purposes only and shall in no way
                  be construed to modify or restrict any of the terms or
                  provisions of this Agreement.

            (d)   The words "include," "includes", and "including", when
                  following a general statement or term, are not to be construed
                  as limiting the general statement or term to any specific item
                  or matter set forth or to similar items or matters, but rather
                  as permitting the general statement or term to refer also to
                  all other items or matters that could reasonably fall within
                  its broadest scope.

            (e)   All dollar amounts set forth herein are in United States
                  dollars.

            (f)   Unless otherwise specified as "business days", reference to
                  "days" in this Agreement shall refer to calendar days.

      19.16. Incorporation by Reference and Order of Precedence.

            (a)   All Schedules attached hereto are hereby incorporated by
                  reference into this Agreement. Subject to Section 19.14, any
                  amendments to this Agreement (including with respect to
                  Schedules), and any additional Schedules that are

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                  agreed upon by the Parties subsequent to the Effective Date,
                  shall likewise be incorporated by reference into this
                  Agreement.

            (b)   Any conflict among or between the documents making up this
                  Agreement will be resolved in accordance with the following
                  order of precedence (in descending order of precedence):

                  (i)   This Agreement;

                  (ii)  The Schedules;

                  (iii) The Exhibits to the Schedules; and

                  (iv)  Purchase Orders.

      19.17. Right of Access

            Diveo shall provide Lucent or its representatives access to its
            facilities reasonably required in connection with Lucent's
            performance of its obligations under this Agreement. No charge shall
            be made for such access.

      19.18. Export Control

            The Parties acknowledge that any Products provided under this
            Agreement are subject to U.S. export laws and regulations, and any
            use or transfer of such Products must be authorized under those
            regulations. Each Party agrees that it will not ship, Deliver, use,
            distribute, transfer, or transmit the Products (even if incorporated
            into other Products) in violation of such laws and regulations. If
            requested by a Party, the other Party shall sign written assurances
            and other export-related documents as may be required by the
            requesting Party to comply with such laws and regulations.

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
undersigned officers, thereunto, duly authorized, as of the date first written
above.

DIVEO, INC.                             LUCENT TECHNOLOGIES WORLD SERVICES, INC.

By:                                     By:
       ---------------------------               ---------------------------
Name:                                   Name:
       ---------------------------               ---------------------------
Title:                                  Title:
       ---------------------------               ---------------------------
Date:                                   Date:
       ---------------------------               ---------------------------

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                            GLOSSARY OF DEFINED TERMS

Set forth below is a listing of the defined terms used in the Agreement. Unless
otherwise specifically referencing a Schedule to the Agreement, Section
references set forth below refer to sections in the terms and conditions portion
of the Agreement.

      (a)   "Acceptance" has the meaning set forth in Section 6.3.

      (b)   "Acceptance Criteria" mean the criteria used to determine whether a
            Product or combination of Products installed, recommended or
            implemented by Lucent is ready for Acceptance. The Acceptance
            Criteria require, unless otherwise mutually agreed in writing, that
            the Product or combination of Products:

            (i)   Meets or exceeds the Specifications applicable to such
                  Product(s);

            (ii)  Integrates in accordance with the approved Diveo Network
                  design, architecture and technology as required pursuant to an
                  applicable, mutually approved City Plan;

            (iii) Complies with Applicable Standards and Documentation;

            (iv)  Complies with the Diveo requirements set forth in Schedule L,
                  where applicable;

            (v)   Complies with all additional mutually agreed-upon testing
                  criteria and plans as may be developed and agreed upon by the
                  Parties in accordance with the terms of this Agreement; and

            (vi)  Interoperates with the Diveo Network as set forth in the
                  product technical specifications or other engineering or
                  design documents prepared by Lucent.

            (vii) For Product(s) that Diveo has not also ordered installation or
                  implementation Services to be provided by Lucent ("furnish
                  only" Products), the sole Acceptance Criteria shall be (A) the
                  verification of the corresponding inventory against the
                  Purchase Order and (B) the criteria specified in (i), (iii),
                  (iv) and (v), as applicable, such verification to occur within
                  five (5) business days from delivery of the Product to the
                  inside of the designated site or destination specified in the
                  Purchase Order.

      (c)   "Acceptance Test Period" for a Product or Products shall mean the
            applicable period specified in the Purchase Order or Schedule J, as
            applicable. For Purchase Orders with installation, implementation
            and/or engineering Service the Acceptance Test Period shall mean the
            period of time until actual Acceptance. In the event an Acceptance
            Test Period for a particular Product is not specified in Schedule J
            and is not otherwise mutually agreed upon, the Acceptance Test
            Period shall be: (i) twenty (20) days from Lucent Certification, if
            installed or implemented with Acceptance testing by Lucent, or (ii)
            thirty (30) days from (A) Lucent's completion of the installation or
            implementation Services without Acceptance testing or (B) the
            delivery of the Product at the designated site or destination
            specified in the Purchase Order, if not installed or implemented by
            Lucent. The aforesaid 20-day and 30-day Acceptance Test Periods
            shall be in addition to (and not included in) the lead times or
            execution times specified in Schedule J, such that the credits
            described in Section 3.3 (c)

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<PAGE>

            shall not begin to accrue until after all of the following time
            periods shall have elapsed: (I) the applicable lead time or
            execution time, (II) the 20-day or 30-day Acceptance Test Period, as
            applicable, and (III) the five-day grace period specified in Section
            3.3(c).

      (d)   "Acceptance Test Plan" refers to the Acceptance testing plan
            utilized to test the Product. The process for Acceptance Test Plans
            is attached as Schedule F, and includes generic forms.

      (e)   "Affiliate" means, with respect to any entity, any other entity
            Influencing, Influenced by or under common Influence with such
            entity.

      (f)   "Agreement" has the meaning set forth in the preamble to this
            Agreement.

      (g)   "Applicable Standards" means (i) all industry standards (whether
            domestic or international) applicable to the Product, all as may be
            amended from time to time, and (ii) all domestic and international
            federal, state and local laws, regulations, ordinances, codes and
            requirements applicable to the Product, all as may be amended from
            time to time.

      (h)   "City Plan" means a plan that addresses the timing, network
            topology, functionality and scope of implementation (including
            Milestones and the System Acceptance Test Plan) for a particular
            part of the Diveo Network design.

      (i)   "Provisional Acceptance" has the meaning set forth in Section 6.1.

      (j)   "Confidential Information" has the meaning set forth in Section
            12.1.

      (k)   "Commitment" has the meaning given in Section 10.4.

      (l)   "Contract Year" shall refer to each twelve month period of the Term
            of this Agreement, with the initial Contract Year commencing on the
            Effective Date.

      (m)   "Credit Agreement" shall refer to that certain Credit Agreement,
            dated as of November 22, 1999 between Diveo and Lucent.

      (n)   "Customer Co-location" means the existence of Diveo customer
            equipment and associated software and peripherals interconnected
            with a Diveo network and located in Diveo's premises (whether owned,
            leased or licensed by Diveo).

      (o)   "Customer Virtual Colocation" means the existence of Diveo customer
            equipment and associated software and peripherals interconnected
            with a Diveo network and not located in Diveo's premises (whether
            owned, leased or licensed by Diveo).

      (p)   "Delivery" means:

            (i)   with respect to a Product or Products only Purchase Orders,
                  delivery and Acceptance of such Product or Products under the
                  Purchase Order; and

            (ii)  with respect to Purchase Orders that include Services, (A)
                  where the Service is related to the installation of a Product,
                  completion of the Service and Acceptance of the Product, (B)
                  where the Service is not related to the installation of a
                  Product,

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                  reasonable completion of the Service, and (C) where the
                  Service is for civils, upon mutual agreement, but in no event
                  longer than market practice where the civils are being
                  performed

      (q)   "Delivery Pricing Adjustment" has the meaning set forth in Section
            3.3(c).

      (r)   "Demarcation Point" means the physical and logical interface between
            the Products that Diveo operates in providing its services and the
            telecommunications equipment that (i) in the case of a tributary,
            Diveo's customer utilizes to connect to such Products and (ii) in
            the case of a service gateway, the other service provider utilizes
            to connect to such Products.

      (s)   "Developed Deliverable" has the meaning set forth in Section 8.2.

      (t)   "Disabling Code" has the meaning set forth in Section 13.12.

      (u)   "Disclosing Party" has the meaning set forth in Section 12.1.

      (v)   "Disengagement Period" has the meaning set forth in Section 14.4(a).

      (w)   "Diveo" or "Buyer" has the meaning set forth in the preamble to this
            Agreement.

      (x)   "Diveo Network" means the physical, transport and application
            network layers of the communication infrastructure used by Diveo
            (including its Affiliates) to connect to its customers and central
            offices in a variety of combinations up to Demarcation Points. It is
            anticipated that the Diveo Network will include domestic intra-city
            networks, inter-city networks, international networks and
            international intra-city networks.

      (y)   "Documentation" has the meaning set forth in Section 8.1(f).

      (z)   "Effective Date" has the meaning set forth in the preamble to this
            Agreement.

      (aa)  "Equipment" means the equipment, hardware, firmware, cabling and
            embedded Software components that may be purchased, or with respect
            to embedded Software, licensed by Diveo from or through Lucent under
            this Agreement. As of the Effective Date, the categories of
            Equipment include the categories identified as such in Schedule A.

      (bb)  "Extended Term" has the meaning set forth in Section 2.2.

      (cc)  "Extended Warranty Period" means Diveo's extension of the Warranty
            Period for a Product one or more times in its sole discretion upon
            payment of the maintenance fees set forth in Schedule C.

      (dd)  "Incremental DDP Costs" has the meaning set forth in Section 10.1.

      (ee)  "Influence" and its derivatives means (i) legal, beneficial, or
            equitable ownership, directly or indirectly, of more than an
            Interest of outstanding capital stock (or other ownership interest,
            if not a corporation) of an entity ordinarily having voting rights
            or (ii) with respect to entities incorporated or principally
            operating in the United States, management or operational control
            over such entity.

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<PAGE>

      (ff)  "Initial Term" has the meaning set forth in Section 2.1.

      (gg)  "Interest" means fifty percent (50%) or more, or the maximum
            percentage interest permitted by law if less than fifty percent
            (50%).

      (hh)  "Key Lucent Positions" has the meaning set forth in Section 5.2(a).

      (ii)  "Licenses" has the meaning set forth in Section 8.1(a).

      (jj)  "Lucent" or "Seller" has the meaning set forth in the preamble to
            this Agreement. With respect to the obligation to fulfill Purchase
            Orders, "Lucent" shall also include Lucent's distributors; provided,
            however, Lucent shall remain fully responsible for the performance
            of such distributors.

      (kk)  "Lucent Certification" shall mean Lucent's written certification to
            Diveo that (i) it has fully and successfully tested the Product in
            accordance with the developed test plan (individually and as
            integrated into the Diveo Network), (ii) the Product has met the
            Acceptance Criteria to Lucent's satisfaction and (iii) the Product
            is available for Diveo's testing in accordance with the applicable
            test plan.

      (ll)  "Lucent Product" means any product, equipment or software created,
            manufactured and/or developed by Lucent or its Affiliates or third
            party products, equipment or software branded or logoed by Lucent or
            its Affiliates, and shall include those products, equipment and
            software identified in this Agreement as Lucent Products and
            otherwise made commercially available by Lucent or its Affiliates.

      (mm)  "Milestone" has the meaning set forth in Section 5.3(a).

      (nn)  "Milestone Date" has the meaning set forth in Section 5.3(a).

      (oo)  "Network Architecture" means the overall design and architecture
            specification for the Diveo Network, including sizing and
            engineering requirements, from which the Network Technology is
            developed.

      (pp)  "Network Element" means any product or transport service necessary
            for the proper operation of the Network, which will be set forth in
            the Network Technology.

      (qq)  "Network Technology" means the deliverable developed from the
            Network Architecture by Lucent for review and approval by Diveo, all
            as set forth in Schedule A, that identifies the Product and
            transport specifications for implementation as part of the City
            Plan.

      (rr)  "Non-conformity" means the failure of a Product to comply with the
            Acceptance Criteria and such other criteria as are set forth in this
            Agreement.

      (ss)  "Notice of Election" has the meaning set forth in Section 16.4(a).

      (tt)  "Out-of-Pocket Expenses" means reasonable and actual out-of-pocket
            expenses incurred by a Party, but not including that Party's
            overhead costs (or allocations thereof), administrative expenses or
            other mark-ups.

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<PAGE>

      (uu)  "Party" means either Diveo or Lucent, as appropriate, and "Parties"
            means Diveo and Lucent.

      (vv)  "Product" means Lucent Products and Third Party Products.

      (ww)  "Provisional Acceptance" has the meaning set forth in Section 6.1.

      (xx)  "Purchase Order" has the meaning specified in Section 3.1(a).

      (yy)  "Receiving Party" has the meaning set forth in Section 12.1.

      (zz)  "Service" means Third Party Services and the services provided by
            Lucent pursuant to this Agreement and (i) described in any Purchase
            Order, or (ii) not specifically described in a Purchase Order, but
            implied by or required for the proper performance and provision of
            services included in a Purchase Order. For purposes of this
            Agreement, "Service" shall also include those services that result
            in a deliverable (e.g., documentation, designs, engineering
            reports). As of the Effective Date, the Services that Diveo may
            purchase from Lucent include those services identified as such in
            Schedule A. Lucent shall also provide those training services
            described in Schedule G.

      (aaa) "Service Level" has the meaning given in Section 7.1.

      (bbb) "Software" means software, in object code form, including applicable
            documentation, that may be licensed by Diveo from Lucent under this
            Agreement or that is developed by Lucent as a Product pursuant to
            this Agreement.

      (ccc) "Source Code" means both machine-readable and human-readable copies
            of Software consisting of instructions to be executed upon a
            computer in the language used by its programmers (i.e., prior to
            compilation or assembly) in a form in which the program logic of the
            Software is deducible by a human being, fully commented, and
            including all related flow diagrams and all other documentation and
            manuals which would allow Diveo to properly effect modifications and
            support for Software Products provided under this Agreement.

      (ddd) "Specifications" means Diveo Network design standards provided to
            Lucent in writing and accepted by Lucent and Lucent's or the
            relevant Product manufacturers' published specifications for
            particular Products furnished hereunder.

      (eee) "Technical Materials Trigger Event" has the meaning given in Section
            8.4.

      (fff) "Term" has the meaning set forth in Section 2.2.

      (ggg) "Territory" shall mean those countries listed in Schedule D, as such
            list may be added to from time to time in accordance with Section
            1.2(b) of the Agreement.

      (hhh) "Third Party Content" means Third Party Products and Third Party
            Services.

      (iii) "Third Party Product" means any product ordered hereunder that is
            not a Lucent Product.

      (jjj) "Third Party Service" means any services ordered hereunder that is
            not a Lucent Service.

--------------------------------------------------------------------------------
Master Supply Agreement                              Diveo / Lucent Confidential
                                  Glossary - 5
<PAGE>

      (kkk) "Virus" means: (i) program code, programming instruction or set of
            instructions intentionally constructed with the ability to damage,
            interfere with or otherwise adversely affect computer programs, data
            files or operations; or (ii) other code typically designated to be a
            virus.

      (lll) "Warranty Period" means, for each Product or Service, the applicable
            period set forth in Schedule H measured from the date of Acceptance.

      (mmm) "Year 2000 Compliant" means the ability of a Product provided or
            developed by Lucent pursuant to this Agreement to (i) correctly
            process, provide, interpret, manipulate and receive date data within
            and between the twentieth and twenty-first centuries, without
            causing logical or mathematical inconsistencies, processing errors,
            loss of functionality or performance, or other failures, and (ii)
            interoperate with other technical systems (including but not limited
            to hardware and software) having the characteristics described in
            (i) and with date data of the twentieth and twenty-first centuries.
            With respect to any data that is generated or provided in
            conjunction with the Products, such data shall contain such
            information or be so formatted as to permit hardware or software
            with the characteristics described in (i) of the foregoing sentence
            to correctly process, provide, interpret, manipulate and receive
            such data within and between the twentieth and twenty-first
            centuries, without causing logical or mathematical inconsistencies,
            processing errors, loss of functionality or performance, or other
            failures with respect to such Products.

--------------------------------------------------------------------------------
Master Supply Agreement                              Diveo / Lucent Confidential
                                  Glossary - 6<PAGE>

                                                                    Exhibit 10.5

                            SHARE PURCHASE AGREEMENT

          This Share Purchase Agreement (this "Agreement") is entered into as of
                                               ---------
February 25, 2000, among Pedro Ernesto Lissandrello ("Lissandrello"), Roberto
                                                      ------------
Anibal Ortega ("Ortega"), and Jorge Luis Fernandez ("Fernandez") (each, a
                ------                               ---------
"Seller", and collectively, "Sellers"), INEA Internet S.A., a corporation
-------                      -------
incorporated under the laws of the Republic of Argentina (the "Company"), Diveo
                                                               -------
Argentina S.A., a corporation organized under the laws of the Republic of
Argentina ("Buyer") and Diginet Americas, Inc., a Delaware corporation
            -----
("Diginet").
  -------

          WHEREAS, Sellers are collectively the owners of 100% of the issued and
outstanding ordinary shares, par value One Argentine Peso per share (the

"Ordinary Shares"), of the Company;
----------------

          WHEREAS, the Company provides dedicated and dial-up Internet services,
hosting, design and other services in Buenos Aires Province, Argentina;

          WHEREAS, Sellers desire to sell, and Buyer desires to purchase, all of
Sellers' Ordinary Shares for the consideration and upon the terms and conditions
hereinafter set forth; and

          WHEREAS, Diginet indirectly owns 100% of Buyer and deems it to be in
its best interests that the transactions contemplated by this Agreement be
consummated.

          NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements hereinafter set forth, the parties hereto agree as
follows:

1.  DEFINITIONS

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

          "Affiliate" -- (a) with respect to a natural person, any member of
           ---------
such person's family; (b) with respect to an entity, any officer, director,
stockholder, partner or investor of or in such entity or of or in any Affiliate
of such entity; and (c) with respect to a person or entity, any person or entity
which directly or indirectly, through one or more intermediaries, Controls, is
Controlled by, or is under common Control with such person or entity.

          "Agreement" -- any written or oral concurrence of understanding and
           ---------
intention between two or more Persons with respect to their relative rights
and/or
<PAGE>

obligations or with respect to a thing done or to be done (whether or not
conditional or executory), including, without limitation, notes, bonds,
mortgages, indentures, contracts, leases, licenses, permits, franchises,
easements, rights of way, or other instruments or obligations.

          "ARIN" -- the non-profit organization established for the purpose of
           ----
administration and registration of Internet Protocol (IP) numbers for the
following geographical areas:  North America, South America, the Caribbean and
sub-Saharan Africa.

          "Assets" -- assets of every kind and everything that is or may be
           ------
available for the payment of liabilities (whether tangible or intangible),
including, without limitation, real and personal property.

          "Business Day" -- any day other than a Saturday or Sunday or other day
           ------------
on which national banks in Washington, D.C. or Buenos Aires, Argentina are
required or permitted to be closed.

          "Buyer" -- as defined in the Recitals to this Agreement.
           -----

          "Buyer Closing Documents" -- as defined in Section 5.3.
           -----------------------

          "Buyer Organizational Documents" -- as defined in Section 5.2.
           ------------------------------

          "Buyer Damages" -- as defined in Section 12.2(a).
           -------------

          "Buyer Indemnified Person" -- as defined in Section 12.2.
           ------------------------

          "Cash Payment Amount" -- as defined in Section 2.2(a).
           -------------------

          "Claims" -- all demands, claims, actions or causes of action,
           ------
assessments, losses, damages, liabilities, costs and expenses, including,
without limitation, interest, penalties and reasonable attorneys' fees and
disbursements actually incurred.  In addition, without limiting the foregoing,
Claims shall include all lawsuits identified in the Disclosure Schedules, and
all assessments, losses, settlements, fees, cost or other charges relating
thereto, whether or not disclosed in the Disclosure Schedules.

          "Closing" -- as defined in Section 2.3.
           -------

          "Closing Date" -- the date and time as of which the Closing actually
           ------------
takes place.

          "Company" -- as defined in the Recitals of this Agreement.
           -------

          "Company Closing Documents" -- as defined in Section 3.3(a).
           -------------------------

                                       2
<PAGE>

          "Company Organizational Documents" -- as defined in Section 3.2.
           --------------------------------

          "Consent" -- any approval, consent, ratification, waiver, filing,
           -------
notification or other permit or authorization (including any Governmental
Authorization).

          "Control" -- possession, directly or indirectly, of power to direct or
           -------
cause the direction of management or policies (whether through ownership of
voting securities, by Agreement or otherwise).

          "Covenant Not to Compete" -- as defined in Section 7.9.
           -----------------------

          "December 31, 1999 Net Book Value" -- as defined in Section 2.5(a).
           --------------------------------

          "Deductible" -- as defined in Section 12.5.
           ----------

          "Deferred Cash Payment Amounts" -- as defined in Section 2.2(d).
           -----------------------------

          "Diginet" -- as defined in the Recitals to this Agreement.
           -------

          "Diginet Closing Documents" -- as defined in Section 6.3.
           -------------------------

          "Diginet Organizational Documents" -- as defined in Section 6.2.
           --------------------------------

          "Diginet Stock" -- as defined in Section 2.2.
           -------------

          "Employment Agreements" -- as defined in Section 10.5.
           ---------------------

          "Encumbrance" -- any charge, claim, community property interest,
           -----------
condition, equitable interest, lien, option, mortgage, hypothecation, pledge,
security interest, right of first refusal, or restriction of any kind, including
any restriction on use, voting, transfer, receipt of income, or exercise of any
other attribute of ownership.

          "Environment" -- soil, land surface or subsurface strata, surface
           -----------
waters (including navigable waters, ocean waters, streams, ponds, drainage
basins, and wetlands), groundwaters, drinking water supply, stream sediments,
ambient air (including indoor air), plant and animal life, and any other
environmental medium or natural resource.

          "Escrow Agent" -- as defined in Section 2.4(c).
           ------------

          "Escrow Agreement" -- as defined in Section 2.4(c).
           ----------------

          "Escrowed Cash" -- as defined in Section 2.2(e).
           -------------

          "Escrowed Stock" -- as defined in Section 2.2(c).
           --------------

                                       3
<PAGE>

          "Estimated Closing Balance Sheet" -- as defined in Section 2.5(a).
           -------------------------------

          "Estimated Closing Net Book Value" -- as defined in Section 2.5(a).
           --------------------------------

          "Estimated Purchase Price Adjustment" -- as defined in Section 2.5(a).
           -----------------------------------

          "FCPA" -- as defined in Section 3.13(c).
           ----

          "Final Closing Balance Sheet" -- as defined in Section 2.5(b).
           ---------------------------

          "Final Closing Net Book Value" -- as defined in Section 2.5(b).
           ----------------------------

          "Final Purchase Price Adjustment" -- as defined in Section 2.5(b).
           -------------------------------

          "GAAP" -- generally accepted Argentine accounting principles.
           ----

          "Governmental Authorization" -- any approval, consent, license,
           --------------------------
permit, waiver, or other authorization issued, granted, given, or otherwise made
available by or under the authority of any Governmental Body.

          "Governmental Body" -- any:
           -----------------

          (a) nation, state, county, city, town, village, 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 agency, branch, department, official, or entity and
any court or other tribunal);

          (d) multi-national organization or body; or

          (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory, or taxing authority or
power of any nature.

          "Key Customer Contracts" -- as defined in Section 10.5.
           ----------------------

          "Key Customers" - B.A. Services, S.A. or another wholly-owned
           -------------
subsidiary of AES, S.A. and Comesa, S.A.

          "Indemnity Claim" -- as defined in Section 12.4(a).
           ---------------

          "Independent Third Party" -- as defined in Section 2.5(c).
           -----------------------

          "INEA Stockholders Agreement" -- as defined in Section 10.7.
           ---------------------------

                                       4
<PAGE>

          "INEA S.R.L." -- a corporation organized under the laws of the
           -----------
Republic of Argentina and the Company's predecessor in interest.

          "Intellectual Property" -- all (a) trademarks, service marks, trade
           ---------------------
dress, logos, trade names, and corporate names and registrations and
applications for registration thereof, (b) copyrights and registrations and
applications for registration thereof, (c) Software, (d) IP addresses (e) trade
secrets and confidential business information (including formulas, compositions,
inventions (whether patentable or unpatentable and whether or not reduced to
practice), know-how, manufacturing and production processes and techniques,
research and development information, drawings, specifications, designs, plans,
proposals, technical data, copyrightable works, financial, marketing, and
business data, pricing and cost information, business and marketing plans, and
customer and supplier lists and information, (f) other proprietary rights, and
(g) copies and tangible embodiments thereof (in whatever form or medium).

          "Interim Balance Sheet" -- as defined in Section 3.5.
           ---------------------

          "Interim Balance Sheet Date" -- as defined in Section 3.5.
           --------------------------

          "Interim Financial Statements" -- as defined in Section 3.5.
           ----------------------------

          "Knowledge" -- an individual will be deemed to have "Knowledge" of a
           ---------
particular fact or other matter if:

          (a)  such individual is actually aware of such fact or other matter;
or

          (b)  a prudent individual could be expected to discover or otherwise
become aware of such fact or other matter in the course of conducting a
reasonably comprehensive investigation concerning the existence of such fact or
other matter.

          A Person (other than an individual) will be deemed to have "Knowledge"
of a particular fact or other matter if any individual who is serving, or who
has at any time served, as a director, officer, partner, executor, or trustee of
such Person (or in any similar capacity) has, or at any time had, Knowledge of
such fact or other matter.

          "Law" -- all provisions of all (a) constitutions, treaties, statutes,
           ---
laws (including the common law), rules, regulations, ordinances, codes or orders
of any Governmental Body, (b) any consent of, with or to any Governmental Body
and (c) orders, decisions, injunctions, judgments, awards and decrees of, or
Agreements with, any Governmental Body.

                                       5
<PAGE>

          "Licenses" - The Value Added Service License granted to the Company by
           --------
the Secretary of Communications of Argentina on August 14, 1998 pursuant to
Resolution 1783.

          "Material Adverse Effect" -- with respect to a Person, a material
           -----------------------
adverse effect in the business, operations, Assets, profits, prospects or
condition (financial or otherwise) of such Person.

          "Net Book Value" -- the excess of the book value of assets over the
           --------------
book value of liabilities, each as determined in accordance with GAAP.

          "1998 Balance Sheet" -- as defined in Section 3.5.
           ------------------

          "Order" -- any award, decision, injunction, judgment, order, ruling,
           -----
unit, subpoena, or verdict entered, issued, made, or rendered by any court,
administrative agency, or other Governmental Body or by any arbitrator.

          "Ordinary Course of Business" -- an action taken by a Person will be
           ---------------------------
deemed to have been taken in the "Ordinary Course of Business" only if:

          (a)  such action is consistent with the past practices of such Person
and is taken in the ordinary course of the normal day-to-day operations of such
Person;

          (b)  such action is not required to be authorized by the board of
directors of such Person (or by any Person or group of Persons exercising
similar authority); and

          (c)  such action is similar in nature and magnitude to actions
customarily taken, without any authorization by the board of directors (or by
any Person or group of Persons exercising similar authority), in the ordinary
course of the normal day-to-day operations of other Persons that are in the same
line of business as such Person.

          "Ordinary Shares" -- as defined in the Recitals of this Agreement.
           ---------------

          "Organizational Documents" -- (a) the articles or certificate of
           ------------------------
incorporation and the bylaws of a corporation; (b) the partnership agreement and
any statement of partnership of a general partnership; (c) the limited
partnership agreement and the certificate of limited partnership of a limited
partnership; (d) any charter or similar document adopted or filed in connection
with the creation, formation, or organization of a Person; and (e) any amendment
to any of the foregoing.

          "Person" -- any individual, corporation (including any non-profit
           ------
corporation), general or limited partnership, limited liability company, joint

                                       6
<PAGE>

venture, estate, trust, association, organization, labor union, or other entity
or Governmental Body.

          "Plan" -- as defined in Section 3.12.
           ----

          "POP" -- as defined in Section 3.24.
           ---

          "Proceeding" -- any action, arbitration, audit, hearing,
           ----------
investigation, litigation, claim or suit (whether civil, criminal,
administrative, investigative, or informal) commenced, brought, conducted, or
heard by or before, or otherwise involving, any Governmental Body or arbitrator.

          "Promissory Note" -- as defined in Section 2.2(a).
           ---------------

          "Purchase Price" -- as defined in Section 2.2.
           --------------

          "Representative" -- with respect to a particular Person, any director,
           --------------
officer, employee, agent, consultant, advisor, or other representative of such
Person, including legal counsel, accountants, appraisers and financial advisors.

          "Required Tax Payments" -- as defined in Section 7.9.
           ---------------------

          "Schedule 3.16 Contracts" -- as defined in Section 3.16(a).
           -----------------------

          "Secretary of Communications" -- means the Secretary of Communications
           ---------------------------
of the Republic of Argentina.

          "Securities Act" -- the Securities Act of 1933 or any successor law,
           --------------
and regulations and rules issued pursuant to that Act or any successor law.

          "Seller Closing Documents" -- as defined in Section 4.1.
           ------------------------

          "Seller Damages" -- as defined in Section 12.3.
           --------------

          "Seller Indemnified Person" -- as defined in Section 12.3.
           -------------------------

          "Sellers" -- as defined in the first paragraph of this Agreement.
           -------

          "Software" -- computer software, including, but not limited to, all
           --------
databases, source codes, object codes, objects, comments, screens, user
interfaces, report formats, templates, menus, button and icons, and all files,
data, materials, manuals, design notes and other items and documentation related
thereto or associated therewith.

          "Subscriber" -- any customers of the Company who (a) are currently
           ----------
connected to and receiving Internet related services from the Company's Systems;
(b) are being charged or have pre-paid the Company's standard rates (which rates

                                       7
<PAGE>

are set forth on Schedule 3.25) pursuant to the Company's standard form
                 -------------
contracts previously provided to Buyer; (c) have paid such stated rates in full
for at least one full month; (d) are not two or more months delinquent in the
payment of any invoice from the Company; (e) have not, in the preceding two
months, been given a waiver or forgiveness of service charges; (f) have not
received any inducement to become connected to the Company's Systems or to
receive or pay for services (other than pursuant to the Company's customary
marketing practices); and (g) have not notified the Company of their intention
to cancel service.

          "Survival Period" -- as defined in Section 12.1.
           ---------------

          "Systems" -- means the infrastructure used to provide Internet access,
           -------
transit, web hosting and related services, including network components,
communications facilities, servers, services and service platforms (including
for e-mail, news, DNS, web, authentication and other services), equipment,
operating software, applications software, middleware, firewalls, power plants,
data processing platforms, MIS systems, office automation systems and internal
LAN network management systems.

          "Tax" -- any tax (including any income tax, capital gains tax, value-
           ---
added tax, sales tax, property tax, gift tax, or estate tax), levy, assessment,
tariff, duty (including any customs duty), deficiency, or other fee, and any
related charge or amount (including any fine, penalty, interest, or addition to
tax), imposed, assessed, or collected by or under the authority of any
Governmental Body or payable pursuant to any tax-sharing agreement or any other
Agreement relating to the sharing or payment of any such tax, levy, assessment,
tariff, duty, deficiency, or fee.

          "Tax Return" -- any return (including any information return), report,
           ----------
statement, schedule, notice, form, or other document or information 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 Law relating to any Tax.

2.  SALE AND PURCHASE OF SHARES; CLOSING

    2.1.  Sale and Purchase of Shares

          On the basis of the representations, warranties, covenants and
agreements contained herein, and subject to the terms and conditions hereof,
each Seller severally agrees to sell to Buyer, and Buyer agrees to purchase from
each Seller, the number of shares of issued and outstanding Ordinary Shares set
forth opposite the name of such Seller on Exhibit A (which, collectively,
                                          ---------

                                       8
<PAGE>

constitute all of the outstanding shares of capital stock of the Company), for
the consideration specified in Section 2.2.

    2.2.  Purchase Price

          The aggregate purchase price (the "Purchase Price") for the Ordinary
                                             --------------
Shares and the Covenant not to Compete will be Eight Million Three Thousand U.S.
Dollars (US $8,300,000), as adjusted pursuant to Section 2.5.  The Purchase
Price will be paid by Buyer as follows:

          (a) At the Closing, Buyer shall deliver to each Seller in immediately
available funds the amount set forth opposite the name of such Seller on Exhibit
                                                                         -------
A (the "Cash Payment Amount"), which amounts total Two Million Seven Hundred
--      -------------------
Fifty Thousand One U.S. Dollars (US $2,750,001); provided, however, if a
                                                 --------  -------
Purchase Price adjustment is required under Section 2.5(a), the Cash Payment
Amounts shall be increased or decreased as applicable, by the amount of the
Estimated Purchase Price Adjustment, with each Cash Payment Amount increased or
decreased in accordance with the percentages set forth on Exhibit A.
                                                          ---------

          (b)   At the Closing, Buyer shall deliver to each Seller a promissory
note in the form of Exhibit B (the "Promissory Note"), for the principal amount
                    ---------       ---------------
set forth opposite the name of such Seller on Exhibit A, which amounts total Two
                                              ---------
Million Seven Hundred Ninety-Nine Thousand Nine Hundred Ninety-Nine U.S. Dollars
(US $2,799,999).  A portion of each Promissory Note as set forth opposite the
name of each Seller on Exhibit A, which amounts total One Million Eight Hundred
                       ---------
Thousand U.S. Dollars (US $1,800,000) shall be forfeited by each Seller, and
Buyer shall have no obligation to make any payments thereunder, if either of the
Key Customer Agreements has been terminated on or prior to the six month
anniversary of the Closing Date or if on such date a Key Customer shall be in
arrears in payment of any amounts, in more than 30 days, due under such Key
Customer's Key Customer Agreement.

          (c) At the Closing, Buyer shall issue to each Seller such number of
shares of common stock, par value U.S. $.0001 per share, of Diginet (the

"Diginet Stock"), set forth opposite the name of such Seller on Exhibit A, of
--------------                                                  ---------
which the number of shares set forth on Exhibit A plus such additional number of
                                        ---------
shares, if any, required under Section 2.6 to be deposited in escrow (the

"Escrowed Stock") shall be deposited by Buyer with the Escrow Agent.  For
---------------
purposes of this Agreement, each share of Diginet Stock shall be deemed to have
a value of U.S. $1.81 and the aggregate value of the shares of Diginet Stock to
be delivered hereunder shall be deemed to have an aggregate value of Two Million
U.S. Dollars ($2,000,000).

                                       9
<PAGE>

          (d) The remaining Seven Hundred Fifty Thousand U.S. Dollars (U.S.
$750,000) of the Purchase Price (the "Escrowed Cash") shall be deposited in
                                      -------------
immediately available funds by Buyer with the Escrow Agent.

          (e) Any Final Purchase Price Adjustment shall be paid as provided in
Section 2.5(c).

The Purchase Price will be allocated in accordance with Schedule 2.2. Buyer and
                                                        ------------
Diginet hereby and jointly and severally agree to indemnify and hold harmless
Sellers from and against any and all costs, expenses, loses, intenrest charges,
penalties, damages or ather liabilities or obligations, including reasonables
fees, incurred by Sellers, direct or indirectly, by reason of, resulting from or
relating of any claims brought in connection with the allocation of the purchase
price set forth in this Section 2.2, shall constitute seller damages and be
subject to indemnification in accordance with art. 12 of this agreement.

    2.3.  Closing

          The closing of the transactions contemplated hereby (the "Closing")
                                                                    -------
will take place at the offices of Cibils, Castro, Cranwell, Boneo Villegas,
Buenos Aires, Argentina, at 10:00 a.m. (local time) on the date that is three
(3) Business Days following the date on which all conditions set forth in
Sections 10.4 and 11.3 have been satisfied.

    2.4.  Closing

          At the Closing:

          (a)  Sellers will deliver to Buyer:

              (i)   certificates representing the Ordinary Shares duly endorsed
                    for transfer to Buyer or accompanied by appropriate stock
                    powers;

              (ii)  the certificates described in Sections 10.2 and 10.3;

              (iii) the Required Buyer Consents duly executed by all parties
                    thereto;

              (iv)  the Employment Agreements executed by Lissandrello, Rafael
                    Ibanez and Flavio Villanustre;

              (v)   the INEA Stockholders Agreement executed by Sellers;

              (vi)  the legal opinions described in Section 10.8;

                                       10
<PAGE>

              (vii) the resignations described in Section 10.11; and

              (viii) the corporate minute books, stock transfer records and
                     corporate seal of the Company.

              (b)    Buyer will deliver to Sellers:

              (i)    the Cash Payment Amounts, the Promissory Notes and
                     certificates for the shares of Diginet Stock required
                     under Section 2.2(c);

              (ii)   the certificates described in Sections 11.1 and 11.2;

              (iii)  the Required Seller Consents duly executed by all parties
                     thereto;

              (iv)   the Employment Agreements executed by Buyer or the Company;

              (v)    the INEA Stockholders Agreement executed by Diginet;

              (vi)   the Guarantees executed by Diginet; and

              (vii)  the legal opinions described in Section 11.8.

          (c) Buyer and Sellers will enter into an escrow agreement in the form
of Exhibit C (the "Escrow Agreement") with First Union National Bank or another
   ---------       ----------------
mutually acceptable Person (the "Escrow Agent") and Buyer shall deliver the
                                 ------------
Escrowed Stock and the Escrowed Cash to the Escrow Agent.

                                       11
<PAGE>

    2.5.      Purchase Price Adjustments

          (a) No later than five days prior to the Closing Date, the Company
will prepare and deliver to Buyer an estimated balance sheet  of the Company as
of the Closing Date (the "Estimated Closing Balance Sheet").  The Estimated
                          -------------------------------
Closing Balance Sheet shall be prepared in accordance with GAAP applied on a
basis consistent with the preparation of the Interim Balance Sheet.  If the Net
Book Value of the Company as set  forth on the Estimated Closing Balance Sheet
(the "Estimated Closing Net Book Value") exceeds the Net Book Value of the
      --------------------------------
Company as of December 31, 1999 (the "December 31, 1999 Net Book Value"), the
                                      --------------------------------
Purchase Price shall be increased by such excess amount.  If the Estimated
Closing Net Book Value is less than the December 31, 1999 Net Book Value, the
Purchase Price shall be decreased by such deficit amount.  (Any increase or
decrease pursuant to this Section 2.5(a) is referred to herein as the "Estimated
                                                                       ---------
Purchase Price Adjustment.")
-------------------------

          (b) Within 45 days after the Closing Date, the Company shall prepare
and deliver to Sellers a final balance sheet of the Company as of the Closing
Date (the "Final Closing Balance Sheet").  The Final Closing Balance Sheet shall
           ---------------------------
be prepared in accordance with GAAP applied on a basis consistent with the
preparation of the December 31, 1999 Balance Sheet.  If the Net Book Value of
the Company as set forth on the Final Closing Balance Sheet (the "Final Closing
                                                                  -------------
Net Book Value") exceeds the Estimated Closing Net Book Value, the Purchase
--------------
Price shall be increased by such excess amount.  If the Final Closing Net Book
Value is less than the Estimated Closing Net Book Value, the Purchase Price
shall be decreased by such deficit amount.  (Any increase or decrease pursuant
to this Section 2.5(b) is referred to herein as the "Final Purchase Price
                                                     --------------------
Adjustment.")
----------

          (c)  Buyer and Sellers (by themselves or through their respective
Representatives) will use their reasonable best efforts to engage in good-faith
negotiations to resolve any disputes between them with respect to the Estimated
Closing Balance Sheet or the Final Closing Balance Sheet promptly after delivery
by the Company of the Final Closing Balance Sheet to Sellers.  If a final
resolution is not reached within ten Business Days following such delivery, the
parties shall submit their dispute in writing, together with reasonable
supporting documentation, to a "Big Five" accounting firm (other than Buyer's,
the Company's, Diginet's or any Seller's auditors) as Buyer and Sellers may
agree upon (the "Independent Third Party") for resolution.  The Independent
                 -----------------------
Third Party, acting as experts and not as arbitrators, upon a review of the
Estimated Closing Balance Sheet or the Final Closing Balance Sheet, as the case
may be, and in consideration of the materials submitted by the parties and any
other information subsequently obtained from them, shall resolve any such
disputes and revise the Estimated Closing Balance Sheet or the Final Closing
Balance Sheet, as the case may be, determine the Final Purchase Price
Adjustment, if any, and communicate the foregoing to Buyer and Sellers in
writing, not later than 45 days following the submission of such dispute to the
Independent Third Party (unless Buyer and Seller

                                       12
<PAGE>

agree, upon request of the Independent Third Party, to provide the Independent
Third Party with additional time to make its determination, which agreement
shall not be unreasonably withheld). Buyer and Sellers will each bear 50% of the
fees of the Independent Third Party for such determination.

          (d) Within five days after final determination of the Final Purchase
Price Adjustment, (i) if such adjustment is an increase, Buyer shall pay Sellers
in U.S. Dollars in immediately available funds the amount of such increase,
which shall be allocated among the Sellers in accordance with the percentages
set forth on Exhibit A and (ii) if such adjustment is a decrease, an amount of
             ---------
the Escrowed Stock and the Escrowed Cash equal to the lesser of the amount of
such decrease, or all the Escrowed Stock and the Escrowed Cash, if less, shall
be released from escrow and paid to Buyer and Sellers shall pay any additional
shortfall to Buyer in U.S. Dollars in immediately available funds in accordance
with the percentages set forth on Exhibit A.
                                  ---------

    2.6.  Additional Escrow Requirements

          Promptly following the execution of this Agreement, Buyer's outside
accounting firm, Ernst & Young, shall conduct a due diligence investigation of
the book, records, financial statements and Tax Returns of INEA S.R.L., in
accordance with Schedule 2.6 hereof, for the purpose of evaluating what
outstanding or potential liabilities, including without limitation contingent
liabilities, INEA S.R.L. has for Taxes.  The Company and Sellers will cooperate
with Ernst & Young in such investigation and shall provide all information
reasonably requested by Ernst & Young with respect thereto.  Buyer shall cause
Ernst & Young to complete such due diligence investigation and deliver its
report thereof to Buyer no later than twenty (20) days from the execution of
this Agreement.  In the event Ernst & Young has determined, as described in such
report, that such outstanding or potential liabilities exceed Ten Thousand U.S.
Dollars (US $10,000), (i) the portion of the Purchase Price to be placed in
escrow shall be increased by an amount equal to such excess, which shall consist
of Diginet Stock based upon a value of $1.81 per share (and the aggregate number
of shares of Diginet Stock to be delivered to Sellers at the Closing shall be
reduced accordingly), (ii) the Escrow Period (as defined in the Escrow
Agreement) shall be extended, only for this Additional Escrow,  from the six
month anniversary of the Closing Date to the first anniversary of the Closing
Date and (iii) the Escrow Agreement shall be revised to take into account the
foregoing; provided, that, in no event shall the Escrow Fund (as defined in the
           --------  ----
Escrow Agreement) exceed One Million Two Hundred Fifty Thousand U.S. Dollars (US
$1,250,0000) on the Closing Date.

                                       13
<PAGE>

     3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND SELLERS REGARDING
          THE COMPANY

          The Company and the Sellers jointly and severally represent and
warrant to Buyer and Diginet as to the Company as follows:

     3.1.  Organization and Good Standing

          (a) The Company is a corporation duly organized, validly existing and
in good standing under the laws of the Republic of Argentina.  The Company is
duly qualified to conduct business as a foreign corporation and is in good
standing in the states, provinces, countries, and territories listed on Schedule
                                                                        --------
3.1.  The Company is not qualified to conduct business in any other
---
jurisdiction, and neither the nature of the business conducted by the Company
nor the character of the Assets owned, leased, or otherwise held by it makes any
such qualification necessary in any jurisdiction wherein failure to qualify
would have a Material Adverse Effect upon the business of the Company as
currently conducted.

          (b) Except as set forth in Schedule 3.1, the Company has never
                                     ------------
conducted any business under or otherwise used, for any purpose or in any
jurisdiction, any fictitious name, assumed name, trade name or other name than
the name "INEA Internet S.A.".

          (c) There is included in Schedule 3.1 a list of all subsidiaries of
                                   ------------
the Company, including the name and capitalization of such entity and the
ownership interest of the Company in such entity.  Except as set forth in

Schedule 3.1, the Company does not own, directly or indirectly, capital stock or
------------
any equity interest of any other corporation or other entity and is not a
partner in any partnership or similar entity, a member of any limited liability
company or similar entity, or a participant in any joint venture.

    3.2.  Certificate or Articles of Incorporation

          The Company furnished or has caused to be furnished to Buyer a true
and complete copy of its Organizational Documents, as currently in effect,
certified as of a recent date by the Governmental Body with which such
Organizational Documents are filed, or if no such filings are made, certified by
its corporate secretary (collectively the "Company Organizational Documents").
                                           ----------------------------------
Such certified copies are attached as Schedule 3.2.
                                      ------------

    3.3.  Authority; Enforceability; No Conflict

          (a) The Company has the necessary corporate power and authority to
own, operate and lease its Assets, to carry on its business as currently
conducted, to enter into this Agreement and each of the other agreements,
certificates or other

                                       14
<PAGE>

instruments required to be delivered by the Company at or prior to Closing (the
"Company Closing Documents"), to perform its obligations hereunder and
--------------------------
thereunder and to consummate the transactions contemplated hereby
and thereby.  The execution and delivery by the Company of this Agreement and
each of the Company Closing Documents and the consummation by the Company of the
transactions contemplated hereby and thereby have been duly and validly
authorized by all necessary corporate action, and no other corporate proceedings
on the part of the Company or its shareholders are necessary to authorize the
Company to execute and deliver this Agreement or any of the Company Closing
Documents or to consummate the transactions contemplated hereby and thereby.
This Agreement has been duly executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company, enforceable in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws of
general applicability relating to or affecting creditors' rights generally and
by the application of general principles of equity.  Each of the Company Closing
Documents, when executed and delivered by the Company, shall have been duly
executed and delivered by the Company and shall constitute a legal, valid and
binding obligation of the Company, enforceable in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other similar laws of general applicability
relating to or affecting creditors' rights generally and by the application of
general principles of equity.

          (b) The execution and delivery of this Agreement by the Company does
not, and the execution and delivery by the Company of each of the Company
Closing Documents and the performance by the Company of its obligations under
this Agreement and each of the Company Closing Documents will not, with or
without the giving of notice or the lapse of time or both, (i) conflict with or
violate the Company Organizational Documents, (ii) subject to obtaining the
approvals and compliance with the requirements set forth in Schedule 3.3(b),
                                                            ---------------
conflict with or violate any Law or Order applicable to the Company or by which
any of its Assets is bound or affected, or (iii) except as set forth in Schedule
                                                                        --------
3.3(b), result in any breach of or constitute a default under, or give to others
------
any rights of termination, amendment, acceleration or cancellation of, or result
in the creation of an Encumbrance on any of the Assets of the Company pursuant
to, any Agreement to which the Company is a party or by which the Company or any
of its Assets is bound or affected.

          (c) The execution and delivery of this Agreement by the Company does
not, and the execution and delivery of each of the Company Closing Documents and
the performance of this Agreement and each of the Company Closing Documents by
the Company will not, require any Consent of any Person, including without
limitation, ARIN, except as set forth in Schedule 3.3(c).
                                         ---------------

                                       15
<PAGE>

    3.4.  Capitalization; Ownership of Ordinary Shares

          The authorized equity securities of the Company consist of 12,000
ordinary shares, par value One Argentine Peso per share, of which 12,000
ordinary shares are duly authorized and validly issued and outstanding, fully
paid and nonassessable and constitute the Ordinary Shares.  No ordinary shares
of capital stock of the Company have been reserved for any purpose.  There are
no outstanding securities convertible into or exchangeable for ordinary shares
and no outstanding options, rights (preemptive or otherwise), or warrants to
purchase or to subscribe for any ordinary shares or other securities of the
Company.  There are no outstanding agreements affecting or relating to the
voting, issuance, purchase (including, without limitation, rights of first
refusal), redemption, repurchase, or transfer of the Ordinary Shares, or any
other securities of the Company, except as contemplated hereunder.

    3.5.  Financial Statements

          The Company has furnished to Buyer, and there are included in Schedule
                                                                        --------
3.5 hereto, (a) the audited balance sheet of the Company as of the end of the
---
fiscal year ended December 31, 1998 (the "1998 Balance Sheet") and the audited
                                          ------------------
statements of income, stockholders' equity, and statements of cash flows for the
twelve month period then ended, accompanied by the related report of Juan Carlos
Mogavero and (b) the unaudited balance sheet of the Company (the "Interim
                                                                  -------
Balance Sheet"), as of December 31, 1999 (the "Interim Balance Sheet Date") and
-------------                                  --------------------------
the related unaudited statements of income, stockholders' equity and cash flows
(together with the Interim Balance Sheet, the "Interim Financial Statements")
                                               ----------------------------
for the twelve month period ended as of the Interim Balance Sheet Date.  All of
the financial statements, including without limitation the notes thereto,
referred to in this Section 3.5 or furnished to Buyer after the date hereof (a)
are in accordance with the books and records of the Company, (b) present fairly
the financial position of the Company as of the respective dates and the results
of operations and statement of cash flows for the respective periods indicated
and have been prepared in accordance with GAAP applied on a basis consistent
with prior accounting periods; provided, however, that in the case of the
                               --------  -------
Interim Financial Statements, such statements are subject to normal year-end
audit adjustments, which individually or in the aggregate will not be material.

Schedule 3.5 sets forth all changes in accounting methods (for financial
------------
accounting purposes) made, agreed to, requested or required with respect to the
Company since the date of its incorporation.

    3.6.  Books and Records

          The books of account, minute books, share record books, and other
records of the Company, all of which have been made available to Buyer, are

                                       16
<PAGE>

complete and correct.  The minute books of the Company contain accurate and
complete records of all meetings held of, and corporate action taken by, the
shareholders, the Boards of Directors, and committees of the Boards of Directors
of the Company, and no meeting of any such stockholders, Board of Directors, or
committee has been held for which minutes have not been prepared and are not
contained in such minute books.

    3.7.  No Undisclosed Liabilities

          Except as reflected in the Interim Financial Statements or as
described in Schedule 3.7, the Company has no liabilities (whether contingent or
             ------------
absolute, matured or unmatured, known or unknown, accrued or otherwise) other
than liabilities incurred in the Ordinary Course of Business.

    3.8.  Title to Properties

          Schedule 3.8 contains a complete and accurate list of all real
          ------------
property owned, leased or used by the Company.  Except as set forth on Schedule
                                                                       --------
3.8, (a) the Company has good, valid and marketable title to all of its Assets,
---
including without limitation all of the Assets reflected in the 1998 Balance
Sheet and the Interim Balance Sheet, and all of the Assets purchased or
otherwise acquired by the Company since the Interim Balance Sheet Date (except
for Assets reflected in such balance sheets or acquired since the Interim
Balance Sheet Date which have been sold or otherwise disposed of in the Ordinary
Course of Business) free and clear of all Encumbrances and (b) in the case of
any Assets consisting of real property, such Assets are not subject to any
rights of way, building use restrictions, exceptions, variances, reservations,
or limitations of any nature.

    3.9.  Accounts Receivable; Product and Services Warranties

          (a) The accounts receivable of the Company shown on the Interim
Balance Sheet, or thereafter acquired by the Company, arose from bona fide
transactions in the Ordinary Course of Business and have been collected or are
collectible in amounts not less than the amounts thereof carried on the books of
the Company, except to the extent of the allowance for doubtful accounts shown
on such Interim Balance Sheet.

          (b) The amount of the warranty reserve included on the Interim Balance
Sheet was prepared in accordance with GAAP applied on a basis consistent with
prior accounting periods.  There are no warranties with respect to the products
or services sold by the Company except as set forth in Schedule 3.9.
                                                       ------------

                                       17
<PAGE>

    3.10. Taxes

          (a) The Company has filed (on a timely basis) with the appropriate
Governmental Bodies all Tax Returns that are or were required to be filed by or
with respect to it in connection with or affecting the Company, its Assets or
its operations.  All of such Tax Returns are complete in all respects.  The
Company (a) has paid the Taxes shown to be due on such Tax Returns or otherwise
assessed, levied and due and payable by the Company, including related penalties
and/or interest due or (b) has established adequate reserves therefor (in
conformity with GAAP applied on a basis consistent with prior accounting
periods).

          (b) There is no Proceeding pending or, to the Knowledge of the Company
or any Seller, threatened, in respect of any Taxes for which the Company is or
may become liable, nor has any deficiency or claim for any such Taxes been
proposed, asserted or, to the Knowledge of the Company or any Seller,
threatened.  The Company has not consented to any waivers or extensions of any
statute of limitations with respect to any taxable year of the Company.  There
is no Agreement, waiver or consent providing for an extension of time with
respect to the assessment or collection of any Taxes against the Company, and no
power of attorney granted by the Company with respect to any tax matters is
currently in force.

          (c) The Company has furnished to Buyer true and complete copies of all
the Company Tax Returns for all periods since the Company's inception and all
written communications relating to any such Company Tax Returns or to any
deficiency or claim proposed and/or asserted, irrespective of the outcome of
such matter, but only to the extent such items relate to tax years (i) which are
subject to an audit, investigation, examination or other proceeding, or (ii)
with respect to which the statute of limitations has not expired.

    3.11.  No Material Adverse Change; Conduct of Business

          Except as set forth in Schedule 3.11, since the Interim Balance Sheet
                                 -------------
Date, the Company has conducted its business only in the Ordinary Course of
Business and the Company has not:

          (a) suffered a Material Adverse Effect;

          (b) changed the Company's authorized or issued capital stock, granted
any stock option or right to purchase shares of capital stock of the Company,
issued any security convertible into such capital stock, granted any
registration rights, or entered into agreements with respect to the purchase,
redemption, retirement, or other acquisition by the Company of any shares of any
such capital stock, or declared or paid any dividend or other distribution or
payment in respect of shares of capital stock;

                                       18
<PAGE>

          (c) amended the Company Organizational Documents;

          (d) paid or increased any bonuses, salaries, or other compensation to
any stockholder, director, officer, or (except in the Ordinary Course of
Business) employee, or entered into any employment, severance, or similar
Agreement with any director, officer, or employee;

          (e) adopted or increased the payments to or benefits under, any profit
sharing, bonus, deferred compensation, savings, insurance, pension, retirement,
or other employee benefit plan for or with any employees of the Company;

          (f) suffered any damage to or destruction or loss of any Asset of the
Company, whether or not covered by insurance, which has or could have a Material
Adverse Effect on the Company;

          (g) entered into, terminated, or received notice of termination of (i)
any license, distributorship, dealer, sales representative, joint venture,
credit, interconnection, collocation, peering, or similar agreement, or (ii) any
Agreement or transaction involving a total remaining commitment by or to the
Company of at least US $10,000;

          (h) sold (other than sales of inventory in the Ordinary Course of
Business), leased, or otherwise disposed of any Asset of the Company, or granted
or imposed any Encumbrance on any material Asset of the Company, including
without limitation the sale, lease, other disposition or imposition of any
Encumbrance on, of any of the Intellectual Property;

          (i) cancelled or waived any claims or rights with a value to the
Company in excess of U.S.$10,000;

          (j) agreed, whether orally or in writing, to do any of the actions
described in foregoing clauses (b) - (i).

    3.12.  Employee Benefits

          (a) Except as set forth in Schedule 3.12, the Company does not make
                                     -------------
any contributions to, and has not been obligated by Law or Agreement to
establish, maintain, sponsor, or make any contributions to (i) any employee
pension or welfare benefit plan; (ii) any formal or informal severance plan or
arrangement; or (iii) any other deferred compensation, bonus, stock option,
stock purchase, revenue sharing, retirement insurance, or other employee benefit
plan, agreement, fund, or arrangement, whether or not set forth in writing,
providing benefits of economic value to any employee, former employee, or
present or former beneficiary, dependent, or assignee other than regular salary,
wages, or commissions paid substantially concurrently with the performance of
the services for which they are

                                       19
<PAGE>

paid (individually or together referred to as "Plan" or "Plans").
                                               ----      -----
Except for the Company's obligation to contribute to certain national pension,
health and unemployment insurance schemes set out in Schedule 3.12, there is
                                                     -------------
no accrued pension or similar retirement benefit for or due to any employee
required to be paid by the Company upon retirement or termination of any such
employee.

          (b) The Company has delivered to Buyer a complete and correct copy of
each instrument constituting each Plan or a part of each Plan, as applicable,
including without limitation, any informal policy statements or guidelines
setting forth provisions of the Plan.  The Company has not promised or
negotiated any benefit or benefit changes which are not reflected in such
instruments.

          (c) Except for those listed on Schedule 3.12, the Company is not
                                         -------------
obligated to make any contributions or payments in respect of any Plan prior to
the Closing Date; and there is no amount of contribution or payments which have
accrued under the Plans.

          (d) The Company has maintained each Plan according to and in
compliance with applicable Law.  There are no pending or, to the best of the
Company's and the Sellers' Knowledge, threatened, Proceedings by present or
former employees of the Company, Plan participants, beneficiaries or spouses of
any of the above, or any other Person involving any Plan or any rights or
benefits thereunder.

    3.13. Compliance With Laws; Governmental Authorizations

          (a) Except as set forth in Schedule 3.13, the Company has complied
                                     -------------
with and is in compliance with all Laws applicable to it or any of its Assets or
operations, including, without limitation, all applicable Laws relating to the
regulation and protection of the Environment and all applicable Laws relating to
the Company's employees, and there does not exist any basis for any claim of
default under, or violation of, any such Law.

          (b) Schedule 3.13 contains a complete and accurate list of each
              -------------
Governmental Authorization that is held by the Company or that otherwise relates
to the business of, or to any of the Assets owned or used by, the Company.  The
Company has delivered to Buyer accurate and complete copies of all Governmental
Authorizations identified in Schedule 3.13, including all renewals thereof and
                             -------------
all amendments thereto.  Each Governmental Authorization listed or required to
be listed in Schedule 3.13 of the Disclosure Schedules is valid and in full
force and effect.  The Governmental Authorizations listed in Schedule 3.13
                                                             -------------
collectively constitute all of the Governmental Authorizations necessary to
permit the Company to lawfully conduct and operate its business in the manner it
currently conducts and operates such business and to permit the Company to own
and use the Assets in the manner in which it currently owns and uses such
Assets.

                                       20
<PAGE>

          (c) Each of the Company and Sellers has not been, or received any
notice that it is, in violation of or in default under, any Law or Order
applicable to the Company or its Assets.  Without limiting the generality of the
previous sentence, each of the Sellers and Company is familiar with the terms of
the U.S. Foreign Corrupt Practices Act of 1977, as amended (the "FCPA"), and has
                                                                 ----
received and reviewed a copy of a summary of the FCPA, which is attached to this
Agreement as Exhibit D.  None of Sellers is currently a government
             ---------
representative, employee or officer of a political party.  Each of Sellers and
the Company will comply with all applicable Laws, including but not limited to
the FCPA.  None of Sellers or the Company has knowledge of any act that has been
taken or contemplated by the Company or Sellers that would violate the FCPA
without regard to applicability of the FCPA to Sellers or the Company.

    3.14. Licenses

          Sellers have delivered to Buyer true and complete copies of the
Licenses, each of which is valid, binding and in full force and effect.  The
Company has complied in all material respects with all of the requirements with
respect to the Licenses.  The Company is not, or has not received any notice
that it is in default (or with the giving of notice or lapse of time or both,
would be in default) under any such License.  Sellers have commenced all
necessary undertakings to receive the regulatory approval of the Secretary of
Communications with respect to the Licenses for a change of control of the
Company from the Sellers to Buyer on or before the Closing Date.

    3.15. Litigation; Disputes

          (a) Except as set forth in Schedule 3.15, there are no Proceedings
                                     -------------
pending, or to the best of the Company or any Seller's Knowledge, threatened,
against the Company or its business or Assets, or the transactions contemplated
by this Agreement, at law or in equity, or before or by any Governmental Body or
arbitrator, and neither the Company nor any officer or director thereof, nor any
Seller, has directly or indirectly received any formal or informal written
notice of any complaint, order, directive, citation, notice of responsibility,
notice of potential responsibility, or information request from any Governmental
Body or any other Person or knows any fact(s) which might form the basis for any
such actions or notices.  The Company is not in default with respect to any
Order of any Governmental Body or arbitrator.

          (b) Except as set forth in Schedule 3.15, the Company is not currently
                                     -------------
involved in, nor has been threatened with, any dispute with, any of its current
or former employees, agents, brokers, distributors, vendors, subscribers,
customers, business consultants, representatives or independent contractors.

                                       21
<PAGE>

    3.16. Contracts; No Defaults

          (a) Schedule 3.16 contains a complete and correct list of all
              -------------
Agreements to which the Company is a party or by which it or any of its Assets
is bound, (i) the terms of which involve payments, receipts or potential
liabilities by or of the Company of more than U.S. $10,000, or the Argentine
Peso equivalent thereof, in a given year or per year, (ii) which are Agreements
relating to the borrowing of money or evidencing credit or relating to the
purchase or sale of shares or other securities, employment agreements,
collective bargaining agreements, consulting agreements, license agreements,
interconnection agreements, distribution agreements, reseller agreements,
Agreements with any Governmental Body, Agreements with any director, officer or
employee of the Company or any relative of any such director, officer or
employee or any entity in which such director, officer or employee or relative
holds more than five percent (5%) of the outstanding equity interest, or
Agreements not made in the Ordinary Course of Business or (iii) which are
Subscriber contracts or peering, transit or other agreement with any Internet
service provider, online company or similar entity, regardless of the amount of
payments, receipts or potential liabilities (the "Schedule 3.16 Contracts").
                                                  -----------------------

          (b) The Company has furnished Buyer complete and correct copies of all
Schedule 3.16 Contracts, together with all amendments and side letters thereto.
The Schedule 3.16 Contracts are (i) valid, binding and in full force and effect,
(ii) are enforceable by the Company in accordance with their terms and (iii) the
Company is not, and no other party is, in default thereunder.  The Company has
not given to or received from any other Person, at any time since January 1,
1999, any notice or other communication (whether oral or written) regarding any
actual, alleged, possible, or potential violation or breach of, or default
under, any Schedule 3.16 Contract.

          (c) No Agreement to which the Company is a party or by which it or any
of its Assets is bound purports to limit the Company's freedom to compete in any
line of business or with any Person.  Schedule 3.16 also includes a complete and
                                      -------------
correct lists of all powers of attorney given by or on behalf of the Company,
including without limitation, powers of attorney give by or on behalf of any
officer or director of the Company in respect of his duties as such.

          (d) There are no renegotiations of, attempts to renegotiate, or
outstanding rights to renegotiate, any material amounts paid or payable to the
Company under current or completed Schedule 3.16 Contracts and no party thereto
has made written demand for such renegotiation.

                                       22
<PAGE>

    3.17. Key Customers

          Nothing has come to the attention of Sellers and Sellers have no
reason to believe (after reasonable inquiry) that the Key Customers shall not be
customers of the Company at least through the six month anniversary of the
Closing Date.

    3.18. Insurance

          (a) Schedule 3.18 lists and briefly describes all policies of title,
              -------------
property, fire, hazard, casualty, liability, life, worker's compensation and
other forms of insurance of any kind owned or held by the Company.  All such
policies: (i) are with insurance companies reasonably believed by the Company to
be financially sound and reputable; (ii) are in full force and effect and will
continue in full force and effect following the consummation of the transactions
contemplated under this Agreement; (iii) are sufficient for compliance by the
Company with all requirements of Law and of all Agreements to which the Company
is a party; (iv) are valid and outstanding policies enforceable against the
insurer; (v) taken together, provide adequate insurance coverage for the Assets
and the operations of the Company for all risks normally insured against by a
Person carrying on the same business or businesses as the Company; and (vi)
provide that they will remain in full force and effect through the respective
dates set forth in Schedule 3.18.
                   -------------

          (b) The Company has not has received (i) any refusal of insurance
coverage or any notice that a defense under any insurance coverage will be
afforded with reservation of rights or (ii) any notice of cancellation or any
other indication that any insurance policy is no longer in full force or effect
or will not be renewed or that the issuer of any policy is not willing or able
to perform its obligations thereunder.

          (c) The Company has paid all premiums due, and has otherwise performed
all of its obligations, under each policy to which the Company is a party or
that provides coverage to the Company.

          (d) The Company has given notice to the insurer of all claims that may
be insured thereby.

    3.19. Employees

          (a) Schedule 3.19 contains a complete and accurate list of the
              -------------
following information for each employee and director of the Company, including
each employee on leave of absence or layoff status: name; job title; current
compensation paid or payable and any change in compensation since January 1,
1999; vacation accrued; and service credited for purposes of vesting and
eligibility to participate, if any, under any Plan.

                                       23
<PAGE>

          (b) Except as set forth in Schedule 3.19, no employee or director of
                                     -------------
the Company is a party to, or is otherwise bound by, any Agreement, including
any confidentiality, noncompetition, or proprietary rights agreement, between
such employee or director and any other Person that in any way adversely affects
or will affect (i) the performance of his duties as an employee or director of
the Company, or (ii) the ability of the Company to conduct its business.

    3.20. Labor Relations

          Except as set forth in Schedule 3.20, there are no strikes, work
                                 -------------
stoppages, grievance proceedings, union organization efforts or other
controversies pending, threatened or reasonably anticipated between the Company
and (a) any of its current or former employees or (b) any union or other
collective bargaining unit representing such employees.  Except as set forth in
Schedule 3.20, there are no employment agreements between the Company and its
-------------
employees not terminable at will.  The consummation of the transactions
contemplated hereby will not cause Buyer or the Company to incur or suffer any
liability relating to, or obligation to pay, severance, termination or other
payments to any Person.

    3.21. Intellectual Property

          (a) Schedule 3.21 is a list and brief description of all Intellectual
              -------------
Property owned or utilized by the Company.  The Company has furnished Buyer with
copies of all license agreements to which the Company is a party, either as
licensor or licensee, with respect to any Intellectual Property.  Except as set
forth in Schedule 3.21, the Company has good and sole title to, or the exclusive
         -------------
right to use, all the Intellectual Property and all inventions, processes,
designs, formulae, trade secrets and know-how necessary for the conduct of the
Company's business as presently conducted or currently proposed to be conducted
and the Company is not infringing on any Intellectual Property right of others,
and neither the Company nor the Sellers have Knowledge of any infringement by
others of any such rights owned by the Company.

          (b) All licenses set forth on Schedule 3.21 are valid and binding
                                        -------------
obligations of the Company, and to the Knowledge of the Company and the Sellers,
of the other parties thereto, and enforceable against the Company, and to the
Knowledge of the Company and the Sellers, the other parties thereto in
accordance with their respective terms.  The Company owns and possesses all
right, title and interest in and to, or has the right to use pursuant to a valid
license, all Intellectual Property necessary for the operation of the business
of the Company as presently conducted.

          (c) To the Knowledge of the Company and the Sellers, the Company and
the Sellers have taken all reasonably necessary measures to protect and maintain
the rights of the Company in its Intellectual Property.  Each piece of

                                       24
<PAGE>

Intellectual Property used by the Company is used with the authorization of
every other claimant thereto and the execution, delivery and performance of this
Agreement will not impair such use.

          (d) The Company has also delivered to Buyer correct and complete
samples or copies of all trademarks, service marks, trade names, copyrights,
patents, registrations and, as relate to the foregoing, applications, licenses,
agreements, and permissions (as amended to date) held by the Company and all
other documents and instruments related to its Intellectual Property, and has
made available to Buyer correct and complete copies of all other written
documentation evidencing ownership and prosecution (if applicable) of each such
item.  With respect to each item of Intellectual Property used in, or otherwise
necessary for the conduct of, the business of the Company as heretofore
conducted:  (i) the identified owner possesses all right, title, and interest in
and to the item; (ii) the item is not subject to any outstanding judgment,
order, decree, stipulation, injunction, or charge; (iii) no charge, complaint,
action, suit, proceeding, hearing, investigation, claim, or demand is pending
or, to the Knowledge of any of the Sellers or officers (and employees with
responsibility for Intellectual Property matters) of the Company, is threatened
which challenges the legality, validity, enforceability, use, or ownership of
the item; and (iv) the Company has not agreed to indemnify any Person for or
against any interference, infringement, misappropriation, or other conflict with
respect to the item.

    3.22.  Year 2000 Compliance

          (a) Each System owned or used by the Company comprised of software,
hardware or databases, the operational failure of which would be reasonably
likely to result in a Material Adverse Effect on the Company is able to
accurately process date data, including, but not limited to, calculating,
comparing and sequencing from, into and between the twentieth century (through
year 1999), the year 2000 and the twenty-first century, including leap year
calculations (having such ability being referred to herein as "Year 2000
                                                               ---------
Compliant").  The Company has no reason to believe that it will incur material
---------
expenses arising from or relating to the failure of any of their Systems to be
Year 2000 Compliant.

          (b) To the Knowledge of the Company and the Sellers, all vendors of
products to the Company, the operational failure of which due to a failure to be
Year 2000 Compliant would be reasonably likely to result in a Material Adverse
Effect on the Company, and such respective products.  To the Knowledge of the
Company and the Sellers, each such vendor will continue to furnish its products
to the Company without interruption or material delay.

                                       25
<PAGE>

    3.23. Company Brokers or Finders

          The Company has not entered into any Agreement obligating it to pay
any brokerage commissions, finders fees or similar compensation in connection
with the transactions contemplated by this Agreement.

    3.24. Systems

          Except as set forth on Schedule 3.24 and with such other exceptions as
                                 -------------
will not, individually or in the aggregate, have a Material Adverse Effect on
the Company, (i) all of the Systems services and platform servers are running,
or peaking, at no higher than 80% of capacity, (ii) Only Systems' services in
Quilmes and Rivadavia are replicated in a redundant manner across available
platform servers, (iii) all remote physical points of presence ("POPs") are
                                                                 ----
secure, conform to equipment manufacturers' recommended environmental
parameters, and contain an uninterrupted power supply with a battery back-up of
at least 30 minutes, (iv) the configuration diagrams provided to Buyer
reasonably represent the redundant network facilities between major backbone
locations, and between remote physical POPs and major network concentration
points, (vi) the existing power plant at the Company's main location is equipped
with an uninterrupted power supply with a battery back-up of at least 60
minutes, (vii) all deployed dial-in modem, modem shelf and corresponding
technology conform to applicable industry standards necessary to support
Subscriber traffic at a rate of 56 Kbps or above, (viii) all Systems owned,
leased by, or licensed to or by the Company are Year 2000 Compliant, (ix) the
Company does not utilizes a DHCP, or other dynamic, IP address allocation scheme
that conforms to industry standards, and (x) the Company has access to the
quantity of IP addresses sufficient to support the Company's Subscriber base as
currently existing.

    3.25. Subscribers

          Schedule 3.25 sets forth (a) the number or Subscribers served by the
          -------------
Company by type of business (i.e., segregated by the following categories, if
applicable to the Company: (i) dial-up, (ii) dedicated access, (iii) web
hosting, and (iv) other equipment sales and leasing and professional services
businesses) as of December 31, 1999 and the Company's standard rates for such
Subscribers for each type of business; (b) for the year commencing January 1,
1999, the Company's monthly churn rate (consisting of (i) cancellations of
month-to-month service and/or long-term subscription or service contracts prior
to expiration (ii) terminations of any such contracts, and (iii) non-renewal of
any such contracts upon expiration) by business type during each full calendar
month prior to the date hereof; and (c) as of December 31, 1999, detail as to
the amount of prepaid subscription or service contracts and the amount of
unearned revenue for all Subscriber contracts with a remaining term of (i) less
than or equal to 90 days, (ii) greater than 90 days and less than or equal to

                                       26
<PAGE>

one year, (iii) greater than one year and less than or equal to two years, (iv)
greater than two years and less than or equal to three years and (v) greater
than three years.  In the event the Closing does not take place, Buyer agrees to
return the original, and all copies, of this Schedule 3.25 and shall refrain
                                             -------------
from using any information contained in this Schedule 3.25 for a period of three
                                             -------------
years after termination of this Agreement.

    3.26. Disclosure

          No representation or warranty by the Company, or by the Sellers with
respect to the Company, in this Agreement, the Exhibits or the Disclosure
Schedules contains any untrue or misleading statement or omits any material fact
necessary to make the statements herein or therein, in light of the
circumstances in which they were made, not misleading.

4.  REPRESENTATIONS AND WARRANTIES OF EACH SELLER

          Each Seller represents and warrants to Buyer and Diginet as to himself
as follows:

    4.1.  Authority; Enforceability; No Conflict.

          (a) Such Seller has the legal capacity to enter into this Agreement
and each of the other agreements, certificates or other instruments required to
be delivered by such Seller at or prior to Closing (the "Seller Closing
                                                         --------------
Documents"), to perform his obligations hereunder and thereunder and to
---------
consummate the transaction contemplated hereby and thereby.  This Agreement has
been duly and validly executed and delivered by such Seller and constitutes a
valid and binding agreement of such Seller, enforceable against such Seller in
accordance with its terms, except as such enforcement may be limited by
bankruptcy, conservatorship, receivership, insolvency, moratorium or similar
laws affecting creditors' rights generally or the rights of creditors of
individuals or by general principles of equity.  Each of the Seller Closing
Documents, when executed and delivered by such Seller, shall have been duly and
validly executed and delivered by such Seller and shall constitute a valid and
binding agreement of such Seller, enforceable against such Seller in accordance
with its terms except as such enforcement may be limited by bankruptcy,
conservatorship, receivership, insolvency, moratorium or similar laws affecting
creditors' rights generally or the rights of creditors of individuals or by
general principles of equity.

          (b) The execution and delivery of this Agreement by such Seller, does
not, and the execution and delivery by such Seller of each of the Seller Closing
Documents and the performance by such Seller of his obligations under this
Agreement and each of the Seller Closing Documents will not, with or without the

                                       27
<PAGE>

giving of notice or lapse of time or both, (i) subject to obtaining the
approvals and compliance with the requirements set forth in Schedule 4.1(b),
                                                            ---------------
conflict with or violate any Law or Order applicable to such Seller or by which
any of his Assets is bound or affected, or (ii) except as set forth in Schedule
                                                                       --------
4.1(b), result in any breach of or constitute a default under, or give to others
------
any rights of termination, amendment, acceleration or cancellation of, or result
in the creation of an Encumbrance on any of the Assets of such Seller pursuant
to, any Agreement to which such Seller is a party or by which such Seller or any
of his Assets is bound or affected.

          (c) The execution and delivery of this Agreement by such Seller does
not, and the execution and delivery of each of the Seller Closing Documents and
the performance of this Agreement and each of the Seller Closing Documents by
such Seller will not, require any Consent of any Person except as set forth in
Schedule 4.1(c).
---------------

    4.2.  Title to Shares

          Such Seller owns good and marketable, legal and beneficial title in
and to the number of Ordinary Shares set forth opposite his name in Exhibit A
                                                                    ---------
free of any and all Encumbrances.

    4.3.  Insolvency

          There are no attachments, executions or assignments for the benefit of
creditors, or voluntary or involuntary proceedings in bankruptcy, or under any
other debtor relief laws, pending or, to the Knowledge of such Seller,
threatened, against such Seller.

    4.4.  Litigation

          There is no action, order, writ, injunction, judgment or decree
pending or outstanding or, to such Seller's Knowledge, threatened, against such
Seller with respect to or against or potentially affecting such Seller's
interest in his ordinary shares or any of the transactions contemplated hereby.

    4.5.  Principal Residence

          Such Seller's principal residence is in the Republic of Argentina.

    4.6.  Investment Representations

          (a) Such Seller acknowledges that (i) the Diginet Stock and the
Promissory Note to be acquired by him hereunder will not be registered under the

                                       28
<PAGE>

Securities Act upon the issuance thereof, (ii) such Diginet Stock and Promissory
Note is being offered and sold pursuant to an exemption from registration
contained in the Securities Act based in part upon such Seller's
representations, warranties, acknowledgments and understandings set forth in
this Section 4.6 and (iii) Buyer is relying upon the truth and accuracy of such
representations, warranties, acknowledgments and understandings of such Seller.

          (b) Such Seller will acquire the Diginet Stock and Promissory Note to
be acquired by him hereunder for such Seller's own account for investment only
and not with the current intention of making a public distribution thereof.

          (c) Such Seller is capable of evaluating the merits and risks of the
investing in the Diginet Stock and Promissory Note to be acquired by him
hereunder and has the capacity to protect its own interests.  Such Seller is an
"accredited investor" as that term is defined in Rule 501(a) of Regulation D
under the Securities Act.  Such Seller is an "accredited investor" by virtue of
(i) having a personal net worth, or joint net worth with such Seller's spouse,
in excess of US $1 million, (ii) having had an individual annual income above
US$ 200,000 in each of 1998 and 1999 and reasonably expecting to have an
individual annual income in excess of US$ 200,000 for 2000 and 2001, or (iii)
having had a joint annual income with such Seller's spouse in excess of US$
300,000 in each of 1998 and 1999 and reasonably expecting to have a joint annual
income with such Seller's spouse in excess of US$ 300,000 for 2000 and 2001.

          (d) Such Seller acknowledges that the Diginet Stock and Promissory
Note to be acquired by him hereunder may not be sold, transferred or otherwise
disposed of unless such Diginet Stock or Promissory Note is subsequently
registered under the Securities Act or an exemption from such registration is
available.  Such Seller understands that Buyer has no current intention of
registering such Diginet Stock.  Such Seller also understands that there is no
assurance that any exemption from registration under the Securities Act will be
available and that, even if available, such exemption may not allow such Seller
to transfer all or any portion of such Diginet Stock and Promissory Note under
the circumstances, in the amounts or at the times such Seller might propose.

          (e) Such Seller understands that no public market now exists for the
Diginet Stock or Promissory Note to be acquired by him hereunder and that Buyer
is uncertain whether a public market will ever exist for such Diginet Stock or
Promissory Note.

          (f) Such Seller is aware of the provisions of Rule 144, which permit
limited resale of "restricted securities" (as such term is defined in Rule 144),
subject to the satisfaction of certain conditions, including, among other
things:  (i) the condition that there be available certain current public
information about the issuer of such securities; (ii) the condition that the
sale of securities be effected not less

                                       29
<PAGE>

than one year after a party has purchased and paid for the securities to be
sold; (iii) the condition that the sale of securities be effected through an
unsolicited "brokers' transaction" or in transactions directly with a "market
maker" (as such terms are defined in Rule 144); and (iv) the condition that the
number of securities being sold during any three-month period not exceed
specified limitations.

          (g) Such Seller did not receive any information regarding the offer,
purchase and sale of the Diginet Stock or Promissory Note to be acquired by him
hereunder through any general solicitation or general advertising within the
meaning of Rule 502(c) under the Securities Act.

          (h) Without in any way limiting the effect of the representations and
warranties of Buyer set forth in Section 5 hereof, such Seller has had an
opportunity to discuss in detail Diginet's and Buyer's business, management and
financial affairs with Diginet's and Buyer's officers and management employees
and has carefully reviewed the representations made herein and all documents and
records of Diginet and Buyer which Diginet or Buyer has provided in response to
such Seller's requests.

          (i) (A)  Such Seller hereby certifies that he is not a "U.S. person"
as that term is defined in Rule 902(k) of Regulation S under the Securities Act
("Regulation S") and is not acquiring the Diginet Stock for the account or
  ------------
benefit of a "U.S. person;" (B) such Seller acknowledges that the issuance of
the Diginet Stock constitutes an "offshore transaction" as that term is defined
in Rule 902(h) of Regulation S; (C) such Seller agrees to resell the Diginet
Stock only in accordance with the provisions of Regulation S, pursuant to a
registration statement under the Securities Act or pursuant to an available
exemption from registration; (D) such Seller agrees not to engage in hedging
transactions with regard to the Diginet Stock unless in compliance with the
Securities Act; (E) such Seller is aware that the stock certificates to be
issued to such Seller shall contain a legend to the effect of subsections (C)
and (D) above; and (F) such Seller is aware that Diginet shall refuse to
register any transfer of the Diginet Stock not made in accordance with the
provisions of subsections (C) and (D) above, provided, however, that if
Argentine Law prevents Diginet from refusing to register securities transfers,
other reasonable procedures shall be implemented to prevent any transfer of
Diginet Stock not made in accordance with the provisions of subsections (C) and
(D) above.

    4.7. Seller Broker or Finders

         Such Seller has not entered into any Agreement obligating him to pay
any brokerage commissions, finders fees or similar compensation in connection
with the transactions contemplated by this Agreement.

                                       30
<PAGE>

    4.8.  Disclosure

          No representation or warranty by each Seller in this Agreement, and no
statement by any Seller in any Exhibit or the Disclosure Schedules, contains any
untrue or misleading statement or omits any material fact necessary to make the
statements herein or therein, in light of the circumstances in which they were
made, not misleading.

5.  REPRESENTATIONS AND WARRANTIES OF BUYER

          Buyer represents and warrants to each Seller as follows:

    5.1.  Organization and Good Standing

          Buyer is a corporation duly organized, validly existing and in good
standing under the laws of the Republic of Argentina.  Buyer is not qualified to
conduct business in any other jurisdiction, and neither the nature of the
business conducted by Buyer nor the character of the Assets owned, leased, or
otherwise held by it makes any such qualification necessary in any jurisdiction
wherein failure to qualify would have a Material Adverse Effect upon the
business of Buyer as currently conducted.

    5.2.  Certificate or Articles of Incorporation

          Buyer furnished or has caused to be furnished to the Company a true
and complete copy of its Organizational Documents, as currently in effect,
certified as of a recent date by the Governmental Body with which such
Organizational Documents are filed, or if no such filings are made, certified by
its corporate secretary (collectively the "Buyer Organizational Documents").
                                           --------------------------------
Such certified copies are attached as Schedule 5.2.
                                      ------------

    5.3.  Authority; Enforceability; No Conflict

          (a) Buyer has the necessary corporate power and authority to own,
operate and lease its Assets, to carry on its business as currently conducted,
to enter into this Agreement and each of the other agreements, certificates or
other instruments required to be delivered by Buyer at or prior to Closing (the
"Buyer Closing Documents"), to perform its obligations hereunder and thereunder
 -----------------------
and to consummate the transactions contemplated hereby and thereby.  The
execution and delivery by Buyer of this Agreement and each of the Buyer Closing
Documents and the consummation by Buyer of the transactions contemplated hereby
and thereby have been duly and validly authorized by all necessary corporate
action, and no other corporate proceedings on the part of Buyer or its
shareholders are necessary to authorize Buyer to execute and deliver this
Agreement or any of the Buyer

                                       31
<PAGE>

Closing Documents or to consummate the transactions contemplated hereby and
thereby.  This Agreement has been duly executed and delivered by Buyer and
constitutes a legal, valid and binding obligation of Buyer, enforceable in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws of
general applicability relating to or affecting creditors' rights generally and
by the application of general principles of equity.  Each of the Buyer Closing
Documents, when executed and delivered by Buyer, shall have been duly executed
and delivered by Buyer and shall constitute a legal, valid and binding
obligation of Buyer, enforceable in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and other similar laws of general applicability relating to or
affecting creditors' rights generally and by the application of general
principles of equity.

          (b) The execution and delivery of this Agreement by Buyer does not,
and the execution and delivery by Buyer of each of the Buyer Closing Documents
and the performance by Buyer of its obligations under this Agreement and each of
the Buyer Closing Documents will not, with or without the giving of notice or
the lapse of time or both, (i) conflict with or violate the Buyer Organizational
Documents, (ii) subject to obtaining the approvals and compliance with the
requirements set forth in Schedule 5.3(b), conflict with or violate any Law or
                          ---------------
Order applicable to Buyer or by which any of its Assets is bound or affected, or
(iii) except as set forth in Schedule 5.3(b), result in any breach of or
                             ---------------
constitute a default under, or give to others any rights of termination,
amendment, acceleration or cancellation of, or result in the creation of an
Encumbrance on any of the Assets of Buyer pursuant to, any Agreement to which
Buyer is a party or by which Buyer or any of its Assets is bound or affected.

          (c) The execution and delivery of this Agreement by Buyer does not,
and the execution and delivery of each of the Buyer Closing Documents and the
performance of this Agreement and each of the Buyer Closing Documents by Buyer
will not, require any Consent of any Person except as set forth in Schedule
                                                                   --------
5.3(c).
------

    5.4.  Brokers or Finders

          Except as set forth on Schedule 5.4, there are no Claims for, and
Buyer has not entered into any arrangement or agreement obligating it to pay
any, brokerage commissions, finders fees or similar compensation in connection
with the transactions contemplated by this Agreement.

    5.5.  Disclosure

          No representation or warranty by Buyer in this Agreement, and no
statement by Buyer in any Exhibit or the Disclosure Schedules, contains any
untrue or misleading statement or omits any material fact necessary to make the

                                       32
<PAGE>

statements herein or therein, in light of the circumstances in which they were
made, not misleading.

6.  REPRESENTATIONS AND WARRANTIES OF DIGINET

          Diginet represents and warrants to each Seller as follows:

    6.1.  Organization and Good Standing

          Diginet is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware.  Diginet is duly qualified to
conduct business as a foreign corporation and is in good standing in the states,
provinces, countries, and territories listed on Schedule 6.1.  Diginet is not
                                                ------------
qualified to conduct business in any other jurisdiction, and neither the nature
of the business conducted by Diginet nor the character of the Assets owned,
leased, or otherwise held by it makes any such qualification necessary in any
jurisdiction wherein failure to qualify would have a Material Adverse Effect
upon the business of Diginet as currently conducted.

    6.2.  Certificate or Articles of Incorporation

          Diginet furnished or has caused to be furnished to the Company a true
and complete copy of its Organizational Documents, as currently in effect,
certified as of a recent date by the Governmental Body with which such
Organizational Documents are filed, or if no such filings are made, certified by
its corporate secretary (collectively the "Diginet Organizational Documents").
                                           ----------------------------------
Such certified copies are attached as Schedule 6.2.
                                      ------------

    6.3.  Authority; Enforceability; No Conflict

          (a) Diginet has the necessary corporate power and authority to own,
operate and lease its Assets, to carry on its business as currently conducted,
to enter into this Agreement and each of the other agreements, certificates or
other instruments required to be delivered by Diginet at or prior to Closing
(the "Diginet Closing Documents"), to perform its obligations hereunder and
      -------------------------
thereunder and to consummate the transactions contemplated hereby and thereby.
The execution and delivery by Diginet of this Agreement and each of the Diginet
Closing Documents and the consummation by Diginet of the transactions
contemplated hereby and thereby have been duly and validly authorized by all
necessary corporate action, and no other corporate proceedings on the part of
Diginet or its shareholders are necessary to authorize Diginet to execute and
deliver this Agreement or any of the Diginet Closing Documents or to consummate
the transactions contemplated hereby and thereby.  This Agreement has been duly
executed and delivered by Diginet and constitutes a legal, valid and binding
obligation of Diginet, enforceable in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and other similar laws of general applicability relating to or
affecting creditors' rights generally and by the application of general
principles of equity.  Each of the Diginet Closing Documents, when executed and
delivered by Diginet, shall have been duly executed and delivered by Diginet and
shall constitute a legal, valid and binding obligation of Diginet, enforceable

                                       33
<PAGE>

in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws of
general applicability relating to or affecting creditors' rights generally and
by the application of general principles of equity.

          (b) The execution and delivery of this Agreement by Diginet does not,
and the execution and delivery by Diginet of each of the Diginet Closing
Documents and the performance by Diginet of its obligations under this Agreement
and each of the Diginet Closing Documents will not, with or without the giving
of notice or the lapse of time or both, (i) conflict with or violate the Diginet
Organizational Documents, (ii) subject to obtaining the approvals and compliance
with the requirements set forth in Schedule 6.3(b), conflict with or violate any
                                   ---------------
Law or Order applicable to Diginet or by which any of its Assets is bound or
affected, or (iii) except as set forth in Schedule 6.3(b), result in any breach
                                          ---------------
of or constitute a default under, or give to others any rights of termination,
amendment, acceleration or cancellation of, or result in the creation of an
Encumbrance on any of the Assets of Diginet pursuant to, any Agreement to which
Diginet is a party or by which Diginet or any of its Assets is bound or
affected.

          (c) The execution and delivery of this Agreement by Diginet does not,
and the execution and delivery of each of the Diginet Closing Documents and the
performance of this Agreement and each of the Diginet Closing Documents by
Diginet will not, require any Consent of any Person except as set forth in

Schedule 6.3(c).
---------------

    6.4.  Capitalization

          The authorized capital stock of Diginet consists of: (a) four hundred
million (400,000,000) shares of common stock, par value $.0001 per share
("Diginet Common Stock"), of which twenty million seven hundred thirty-six
thousand one hundred forty-seven (20,736,147) shares are issued and outstanding;
(b) sixty million (60,000,000) shares of non-voting common stock, par value
$.0001 per share, of which no shares are issued and outstanding; (c) one hundred
one million seven hundred fifty thousand (101,750,000) shares of Class A
preferred stock, par value $.0001 per share, of which: (i) sixty-nine million
two hundred fifty thousand (69,250,000) shares are shares of Series A-1 Voting
Preferred Stock, of which thirty- four million one hundred fifty-seven thousand
seven hundred eighty-three (34,157,783) shares are issued and outstanding; (ii)
nineteen million two hundred fifty thousand (19,250,000) shares are shares of
Series A-1 Non-Voting Preferred

                                       34
<PAGE>

Stock, of which twelve million nine hundred sixty-six thousand thirty seven
(12,966,037) shares are issued and outstanding; and (iii) thirteen million two
hundred fifty thousand (13,250,000) shares are shares of Series A-2 Preferred
Stock, of which nine million four hundred twenty thousand seven hundred thirty
four (9,420,734) shares are issued and outstanding; and (d) two hundred one
million two hundred thousand (201,200,000) shares of Class B preferred stock,
par value $.0001 per share, of which: (i) one hundred ten million (110,000,000)
shares are shares of Series B-1 Voting Preferred Stock, of which one hundred
seven million three hundred ninety-one thousand two hundred sixty-seven
(107,391,267) shares are issued and outstanding; (ii) forty-two million seven
hundred thousand (42,700,000) shares are shares of Series B-1 Non-Voting
Preferred Stock, of which thirty-two million seventeen thousand three hundred
forty-four (32,017,344) shares are issued and outstanding; and (iii) forty-eight
million five hundred thousand (48,500,000) shares are shares of Series B-2
Preferred Stock, of which forty-six million four hundred nineteen thousand eight
hundred sixty (46,419,860) shares are issued and outstanding. All of the issued
and outstanding shares of capital stock of Diginet have been duly authorized,
are validly issued, fully paid and nonassessable. In addition, (A) twenty one
million nine hundred sixty-four thousand four hundred thirty-seven (21,964,437)
shares are reserved for issuance pursuant to outstanding options to purchase
shares of Diginet Common Stock granted to employees and certain other Persons;
(B) two million three hundred three thousand three hundred thirty-eight
(2,303,338) shares of Series A-2 Preferred Stock are reserved for issuance upon
the exercise of warrants issued by Diginet pursuant to warrant purchase
agreements with shareholders; (C) four million thirty four thousand four hundred
eighty-nine (4,034,489) shares of Series B-1 Voting Preferred Stock are reserved
for issuance upon the exercise of warrants issued by Diginet pursuant to that
certain Stock Purchase and Warrant Agreement, dated as of April 16, 1999. No
shares of Diginet capital stock are held in the treasury of Diginet. Except as
set forth in this Section 6.4, no shares of capital stock are reserved for any
purpose and there are no options, warrants or other rights or Agreements of any
character relating to the issued or unissued capital stock of Diginet or
obligating Diginet to issue or sell any shares of capital stock of, or other
equity interests in, Diginet, including any securities directly or indirectly
convertible into or exercisable or exchangeable for any capital stock or other
equity securities of Diginet. Except as set forth in Schedule 6.4, there are no
                                                     ------------
outstanding obligations of Diginet to repurchase, redeem or otherwise acquire
any shares of its capital stock or make any investment (in the form of a loan,
capital contribution or otherwise) in any other Person.  The Diginet Stock,
when issued, will be duly authorized, validly issued, fully paid and
non-assessable.

    6.5.  Brokers or Finders

          Except as set forth on Schedule 6.5, there are no Claims for, and
Diginet has not entered into any arrangement or agreement obligating it to pay

                                       35
<PAGE>

any, brokerage commissions, finders fees or similar compensation in connection
with the transactions contemplated by this Agreement.

    6.6.  Disclosure

          No representation or warranty by Diginet in this Agreement, and no
statement by Diginet in any Exhibit or the Disclosure Schedules, contains any
untrue or misleading statement or omits any material fact necessary to make the
statements herein or therein, in light of the circumstances in which they were
made, not misleading.

7.  COVENANTS OF COMPANY AND THE SELLERS

          Each Seller, jointly and severally, covenants and agrees:

    7.1.  Access and Investigation

          Between the date of this Agreement and the Closing Date, the Company
will, and will cause the Company's Representatives to, and Sellers will, and
will cause the Company and the Company's Representatives to, (i) afford Buyer
and its Representatives and prospective lenders and their Representatives
(collectively, "Buyer's Advisors") full and complete access to the Company's
                ----------------
Assets, personnel, properties, contracts, books and records, and other documents
and data, (ii) furnish Buyer and Buyer's Advisors with copies of all such
contracts, books and records, and other existing documents and data as Buyer may
reasonably request, and (iii) furnish Buyer and Buyer's Advisors with such
additional financial, operating, and other data and information with respect to
Sellers or the Company as Buyer may reasonably request.

    7.2.  Operation of the Business of the Company

          Between the date of this Agreement and the Closing Date, except (i) as
consented to by Buyer in writing or (ii) as contemplated by this Agreement, the
Company will, and will cause the Company's Representatives to, and Sellers will
cause the Company to:

          (a) maintain itself at all times as a corporation duly organized and
validly existing under the laws of the Republic of Argentina;

          (b) subject to the restrictions set forth in this Agreement, carry on
its business and operations in the Ordinary Course of Business as heretofore
conducted;

                                       36
<PAGE>

          (c) not engage in any activity or transaction or make any commitment
to purchase or spend, other than in the Ordinary Course of Business as
heretofore conducted, or repay any indebtedness (including, but not limited to,
operating or capital lease obligations) except in accordance with the scheduled
payment terms thereof or as required under Section 7.6, or enter into any new
indebtedness for borrowed money or the deferred purchase of assets or services
or any operating or capital lease arrangements;

          (d) not declare, authorize or pay any distribution or dividend to its
shareholders and not grant, issue, redeem, purchase, or otherwise acquire, or
agree to grant, issue, redeem, purchase, or otherwise acquire, any shares of its
stock or other securities (including, without limitation, stock options);

          (e) not pay or obligate itself to pay any compensation, commission, or
bonus to any director or employee as such, except for the regular compensation
and commissions payable to such director or employee at the rate in effect on
the date of this Agreement or otherwise in the Ordinary Course of Business, and
not hire any employee or independent contractor;

          (f) continue to carry all of its existing insurance;

          (g) use its best efforts to preserve the business organization of the
Company intact, keep available to Buyer the services of the Company's employees
and independent contractors and preserve for the Buyer the Company's
relationships with suppliers, licensees, distributors, and customers and others
having business relationships with the Company;

          (h) not, and not obligate itself to, sell or otherwise dispose of or
pledge or otherwise encumber any of its Assets;

          (i) maintain its facilities, machinery, and equipment in good
operating condition and repair, subject only to ordinary wear and tear;

          (j) not enter into any agreement or understanding with any employee,
director, or shareholder of the Company or any Affiliate of any of the foregoing
where the value of any such items taken together would, in the aggregate, exceed
the Argentine Peso equivalent of U.S. $5,000 as of the date of the execution of
this Agreement;

          (k) not take any action that may reasonably be expected to violate any
Law;

          (l) not commit any act or omit to do any act, or not engage in any
activity or transaction or incur any obligation ( by conduct or otherwise), that
(individually or in the aggregate) reasonably could be expected to have a
Material Adverse Effect on the Company;

                                       37
<PAGE>

          (m) not take any action after the date hereof which would cause any
representation, warranty or covenant contained in this Agreement to be or become
incorrect or incapable of being performed; and

          (n) without limiting the foregoing, to consult with the Buyer
regarding all significant developments, transactions, and proposals relating to
its business prior to taking any action with respect thereto.

    7.3.  Required Consents and Approvals

          As promptly as practicable after the date of this Agreement, the
Company will and the Sellers will, and will cause the Company to, make all
filings required by applicable Laws to be made by any of them in order to
consummate the transactions contemplated hereby.  Between the date of this
Agreement and the Closing Date, Sellers will, and will cause the Company to, (a)
cooperate with Buyer with respect to all filings that Buyer elects to make or is
required by applicable Laws to make in connection with the transactions
contemplated by this Agreement, and (b) cooperate with Buyer in obtaining all
Required Seller Consents.

    7.4.  Notification

          Between the date of this Agreement and the Closing Date, the Company
and each Seller will promptly notify Buyer in writing if the Company or such
Seller becomes aware of any fact or condition that causes or constitutes a
breach of any of the Company or any Seller's' representations and warranties
contained herein, or if the Company or such Seller becomes aware of the
occurrence after the date of this Agreement of any fact or condition that would
(except as expressly contemplated by this Agreement) cause or constitute a
breach of any such representation or warranty had such representation or
warranty been made as of the time of occurrence or discovery of such fact or
condition.  During the same period, the Company and each Seller will promptly
notify Buyer of the occurrence of any breach of any covenant of the Company or
any Sellers in this Agreement or of the occurrence of any event that may make
the satisfaction of the conditions in Section 9 impossible or unlikely.

    7.5.  Liability for Taxes

          Each Seller shall be responsible for all securities transaction Taxes
arising out of or in connection with the transactions contemplated hereby.

    7.6.  Payment of Indebtedness

          The Company will, and each Seller will cause the Company to, (a) pay
in full prior to the Closing Date all indebtedness of the Company other than
trade payables incurred in the Ordinary Course of Business.  Each Seller shall

                                       38
<PAGE>

pay, and shall cause any of his Affiliates to pay, in full prior to the Closing
Date, all indebtedness owed by him or any such Affiliate to the Company.

    7.7.  No Inconsistent Negotiations

          The Company shall not (and shall not permit or authorize any Person
acting on its behalf to) and Seller shall not, (and shall not permit or
authorize the Company or any director, officer, employee or other agent of a
Seller or the Company, to), directly or indirectly, solicit, initiate, or
encourage any inquiries or proposals from, discuss or negotiate with, provide
any non-public information to, or consider the merits of any unsolicited
inquiries or proposals from, any Person (other than Buyer) relating to any
transaction involving the sale of the business or Assets (other than in the
Ordinary Course of Business) of the Company, or any of the capital stock of the
Company, or any merger, consolidation, business combination, or similar
transaction involving the Company.  The Company and each Seller shall promptly
inform Buyer about any such inquiry or proposal received by it or him.

    7.8.  Litigation Assistance

          In order to assist Buyer and the Company in its resolution of all
actions, claims, demands, suits, proceedings, arbitrations, grievances,
citations, summons, subpoenas, inquiries, or investigations of any nature,
whether made or initiated before or after the Closing Date, with respect to any
fact, circumstance, situation condition, occurrence or event in connection with
the Company's business or Assets (the "Claims"), after the Closing Date, each
Seller shall cooperate and provide such assistance as reasonably requested by
the Company.  Such cooperation shall include, but not be limited to, making
himself reasonably available in order to investigate, defend and resolve the
Claims, dealing the Persons making such Claims and working with the applicable
insurance carrier.

    7.9.  Non-Competition

          In partial consideration of the payment of the Purchase Price, each
Seller agrees that, from and after the Closing Date and until the third
anniversary thereof, he will not, whether personally, through a third party,
or as a stockholder or consultant to another entity, participate in, provide
services to, or enter into any other arrangements with, any Person that
provides services that are in competition with the current business of the
Company or Buyer (the "Covenant Not to Compete").
                       -----------------------

                                       39
<PAGE>

8.  COVENANTS OF BUYER PRIOR TO CLOSING DATE

    8.1.  Required Consents and Approvals

          As promptly as practicable after the date of this Agreement, Buyer
will make all filings required by applicable Laws to be made by the Buyer in
order to consummate the transactions contemplated by this Agreement.  Between
the date of this Agreement and the Closing Date, Buyer will (a) cooperate with
the Company and the Sellers with respect to all filings that the Company and the
Sellers elect to make or are required by applicable Laws to make in connection
with the transactions contemplated by this Agreement, and (b) cooperate with the
Company and the Sellers in obtaining all Required Buyer Consents.

9.  COVENANTS OF ALL PARTIES PRIOR TO CLOSING DATE

    9.1.  Further Action

          Each of the parties hereto shall use all reasonable efforts to take,
or cause to be taken, all appropriate action, do or cause to be done all things
necessary, proper or advisable under applicable Laws, and execute and deliver
such documents and other papers, as may be required to carry out the provisions
of this Agreement and consummate and make effective the transactions
contemplated by this Agreement, including, without limitation, delivering, or
causing to be delivered, the certificates, opinions and other documents to be
delivered to each other party as a condition to such other party's obligations
under Articles 10 and 11 of this Agreement.

    9.2.  Publicity

          Neither the Company nor the Sellers, on the one hand, nor Buyer, on
the other hand, shall announce or disclose publicly the terms or provisions
hereof or the transactions contemplated hereby without the prior written
approval of the other, except as such disclosure may be required by applicable
Law (subject to giving the parties notice as promptly as possible of the
intention to make such disclosure and providing the parties an opportunity to
review the wording of such disclosure) and except that this provision shall not
prohibit any party from disclosing such terms or provisions to its attorneys,
accountants, lenders, bankers, financial advisors or any other advisor or
consultant provided any such Person to whom such terms or provisions are
disclosed agrees to keep such information confidential.

                                       40
<PAGE>

10.  CONDITIONS PRECEDENT TO BUYER'S and diginet's OBLIGATION TO CLOSE

          Buyer's and Diginet's obligation to purchase the Ordinary Shares and
to take the other actions required to be taken by Buyer and Diginet 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 Buyer or Diginet, in
whole or in part):

    10.1.  Satisfaction with Due Diligence

          Buyer shall not have given notice to Sellers of its desire to
terminate this Agreement pursuant to Section 13.1(b).

    10.2.  Representations and Warranties

          The representations and warranties made by the Company and each Seller
in this Agreement and the statements contained in the Disclosure Schedules and
Exhibits attached hereto or in any document furnished by the Company and the
Sellers pursuant to this Agreement shall be true and complete when made, and on
and as of the Closing Date as though such representations and warranties were
made on and as of such date, except for any changes expressly permitted by this
Agreement.  Buyer shall have received a certificate of each Seller and of the
Chief Executive Officer of the Company, dated the Closing Date, to that effect.

    10.3.  Company's and Sellers' Performance

          The Company and each Seller shall have performed or complied with all
covenants, acts and obligations required by this Agreement, which are to be
performed or to be complied with by it or him at or prior to the Closing Date,
including without limitation the covenants set forth in Section 7.6.  Buyer
shall have received a certificate of each Seller and of the Chief Executive
Officer of the Company, dated the Closing Date, to that effect.

    10.4.  Consents

          Buyer shall have obtained each of the Consents identified in Schedule
                                                                       --------
10.4 (the "Required Buyer Consents") must have been obtained and must be in full
----       -----------------------
force and effect.

    10.5.  Key Customer Contracts

          The Company shall have entered into binding service contracts with
each of the Key Customers (the "Key Customer Contracts"), in each case with a
                                ----------------------
term of at least two years in the form of Exhibit J attached hereto.
                                          ---------

                                       41
<PAGE>

    10.6.  Employment Agreements

           Lissandrello shall have executed and delivered to Buyer an employment
or consulting agreement in the form of Exhibit E-1, Rafael Ibanez shall have
                                       -----------
executed and delivered to Buyer an employment or consulting agreement in the
form of Exhibit E-2 and Flavio Villanustre shall have executed and delivered to
        -----------
Buyer an employment or consulting agreement in the form of Exhibit E-3
                                                           -----------
(collectively, the "Employment Agreements").
                    ---------------------

    10.7.  INEA Stockholders Agreement

           Each Seller shall have executed and delivered to Buyer the INEA
Stockholders Agreement in the form of Exhibit F (the "INEA Stockholders
                                      ---------       -----------------
Agreement").
---------

    10.8.  Assignment of Intellectual Property Rights

           Flavio Villanustre and the Company shall have entered into an
agreement, in form and substance satisfactory to the Company, pursuant to which
(i) he is obligated to disclose and transfer to the Company without the receipt
of any additional value (other than normal salary or fees for consulting
services) all inventions, developments and discoveries, including without
limitation any Software, which, during the period of employment with or
performance of services for the Company, he makes or made or conceives or
conceived prior to or after the date of the execution of the agreement, either
solely or jointly with others, that relate to any subject matter with which his
work for the Company may be concerned, or relate to or are connected with the
Company's business, products or projects, or involve the use of the time,
materials or facilities of the Company and (ii) he is obligated to maintain the
confidentiality of all proprietary information of the Company regardless of when
such information is or was disclosed to him.

    10.9.  Escrow Agreement

           Each of the Sellers and the Escrow Agent shall have executed and
delivered to Buyer the Escrow Agreement.

    10.10. Legal Opinions

          The Sellers shall have delivered to Buyer and Diginet the opinions of
Vitale, Manoff, Feilbogen, counsel to the Company and Sellers, in the form of

Exhibit G.
---------

                                       42
<PAGE>

    10.11. No Proceedings

           No Proceedings shall have been commenced against Buyer, Diginet, the
Company or any Seller (a) involving any challenge to, or seeking damages or
other relief in connection with, any of the transactions contemplated hereby or
(b) that, in the good faith judgment of Buyer, may have the effect of
preventing, delaying, making illegal, or otherwise interfering materially with
any of the transactions contemplated hereby and no Order of any Governmental
Body or arbitrator shall be in effect which enjoins, restrains or prohibits the
consummation of the transactions contemplated hereby.

    10.12. No Material Adverse Change

           No event, occurrence, fact, condition, change, development or effect
shall have occurred, existed or come to exist since the date of this Agreement
that, individually or in the aggregate, has constituted or resulted in, would
reasonably be likely to result in, a Company Material Adverse Effect on the
Company.

    10.13. Resignations of Directors and Executive Officers

           Buyer shall have received the written resignations of all of the
members of the Board of Directors and all of the executive officers of Company
(each effective as of the Closing).

11.  CONDITIONS PRECEDENT TO SELLERS' OBLIGATION TO CLOSE

           Sellers' obligation to sell the Ordinary Shares and to take the other
actions required to be taken by Sellers 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 Sellers, in whole or in part):

    11.1. Representations and Warranties

          The representations and warranties made by Buyer and Diginet in this
Agreement and the statements contained in the Disclosure Schedules and Exhibits
attached hereto or in any document furnished by Buyer and Diginet pursuant to
this Agreement shall be true and complete when made, and on and as of the
Closing Date as though such representations and warranties were made on and as
of such date, except for any changes expressly permitted by this Agreement.
Sellers shall have received a certificate of the Chief Executive Officers of
each of Buyer and Diginet, dated the Closing Date, to that effect.

                                       43
<PAGE>

     11.2.  Buyer's and Diginet's Performance

          Buyer and Diginet shall have performed or complied with all covenants,
acts and obligations and conditions required by this Agreement, which are to be
performed or complied with by it at or prior to the Closing Date.  Sellers shall
have received a certificate of the Chief Executive Officer of each of Buyer and
Diginet, dated the Closing Date, to that effect.

    11.3.  Consents

           Each of the Consents identified in Schedule 11.3 (the "Required
                                              -------------       --------
Seller Consents") must have been obtained and must be in full force and effect.
---------------

    11.4.  Employment Agreement

          Buyer shall have authorized the execution and delivered by the Company
to Lissandrello of his Employment Agreement.

    11.5.  INEA Stockholders Agreement

           Diginet shall have executed and delivered to the Sellers the INEA
Stockholders Agreement.

    11.6.  Promissory Notes

           Buyer shall have executed and delivered to Sellers the Promissory
Notes.

    11.7.  Guarantees

           Diginet shall have executed and delivered to each Seller a Guarantee
in the form of Exhibit H (a "Guarantee").
               ---------     ---------

    11.8.  Legal Opinions

           Buyer and Diginet shall have delivered to Sellers the opinion of
Cibils, Castro Cranwell & Boneo Villegas, counsel to Buyer, in the form of

Exhibit I-1, and the opinion of Hogan & Hartson, L.L.P., counsel to Buyer and
-----------
Diginet, in the form of Exhibit I-2.
                        -----------

    11.9.  No Proceedings

           No Proceeding shall have been commenced against Buyer, Diginet, the
Company or any Seller (a) involving any challenge to, or seeking damages or

                                       44
<PAGE>

other relief in connection with, any of the transactions contemplated hereby or
(b) that, in the good faith judgment of Sellers, would likely have the effect of
preventing, delaying, making illegal, or otherwise interfering materially with
any of the transactions contemplated hereby and no Order of any Governmental
Body or arbitrator shall be in effect which enjoins, restrains or prohibits the
consummation of the transactions contemplated hereby.

12.  INDEMNIFICATION; REMEDIES

     12.1.  Reliance on and Survival of Representations and Warranties

            (a)  Notwithstanding any investigation by Buyer or Diginet, or any
information obtained pursuant thereto, Buyer and Diginet shall be entitled to
rely upon the representations and warranties of the Company and Sellers
contained in this Agreement or any other agreement, document, certificate,
exhibit, or other instrument delivered pursuant hereto, and upon their
respective representations at Closing as to compliance with or performance of
any covenants made by it herein or therein and as to satisfaction of any
conditions precedent to the obligations of Buyer or Diginet.

            (b)  All representations and warranties contained in this Agreement
and any certificate or document delivered pursuant to this Agreement shall
survive the Closing for a period of two (2) years following the Closing Date.
Notwithstanding the foregoing, (i) the representations and warranties set
forth in Sections 3.10, 3.12, 3.13, 3.14, 3.21, and 4.6 shall survive the
Closing for a period of ending one (1) year following the expiration of the
statute of limitations (including extensions) applicable to any indemnified
liability with respect thereto, or in the case of the representations and
warranties set forth in Section 3.10, the final determination of (and the
expiration of time to appeal) any audit, examination, investigation or
other proceeding relating to Taxes covered by, or any claim under, Section
3.10, if later, and (ii) the representations and warranties set forth in
Section 4.2 shall survive the Closing indefinitely.  The applicable period
of survival of each representation and warranty contained in this Agreement
is referred to herein as the "Survival Period."  Any claim or cause of
                              ---------------
action based upon or arising out of a breach of a representation or
warranty made hereunder must be made within the Survival Period applicable
thereto or the party against which such claim is made shall have no
liability with respect thereto.  Nothing combined in this Section, however,
shall affect the obligations of any party to perform the agreements and
covenants to be performed on its part hereunder or in connection herewith
either before or after the Closing Date.

    12.2. Sellers Indemnification Obligations

          (a)  Subject to the provisions of this Section 12, Sellers hereby
jointly and severally agree to indemnify and hold harmless Buyer, Diginet, the
Company and their Affiliates, Representatives and stockholders (collectively,

                                       45
<PAGE>

the "Buyer Indemnified Persons") from and against any and all costs, expenses,
     -------------------------
losses, interest charges, penalties, damages or other liabilities or
obligations, including reasonable attorneys' fees (collectively, "Buyer
                                                                  -----
Damages") incurred by any Buyer Indemnified Person, directly or indirectly,
-------
by reason of, resulting from or relating to (i) any breach of any
representation or warranty, or breach or violation of any of the covenants
or agreements of the Company or any Seller in this Agreement or any Company
Closing Document or any Seller Closing Document or (ii) any Tax liability
of INEA S.R.L.

          (b)  Sellers hereby irrevocably waive any and all right to recourse
against the Company with respect to any indemnification obligations of Sellers
under this Section 12, including, without limitation and right to contribution
from, subrogation to or recovery against the Company with respect to any
such obligations.

    12.3. Buyer and Diginet Indemnification Obligations

          Subject to the conditions and provisions of this Section 12, Buyer and
Diginet hereby joint and severally agree to indemnify, defend and hold harmless
Sellers and their respective Representatives (collectively, the "Seller
                                                                 ------
Indemnified Persons") from and against any and all costs, expenses, losses,
-------------------
interest charges, penalties, damages or other liabilities or obligations,
including reasonable attorneys fees (collectively, "Seller Damages") incurred by
                                                    --------------
any Seller Indemnified Person, directly or indirectly, by reason of or resulting
from any breach of any representation or warranty, or breach or violation of any
covenants or agreements of Buyer or Diginet in this Agreement, any Buyer Closing
Document or any Diginet Closing Document.

    12.4.  Conditions of Indemnification

           The obligations and liabilities of Sellers, Buyer and Diginet under
this Section 11 shall be subject to the following terms and conditions:

           (a)  The indemnified party shall give prompt written notice to the
indemnifying party of any Proceeding or other event which may give rise to
liability of the indemnifying party pursuant to this Section 12 (an "Indemnity
                                                                     ---------
Claim"); provided, however, that failure to give such notice shall not relieve
-----
the indemnifying party of its obligations hereunder unless the indemnifying
party shall have suffered actual material damage as a result of such failure.

            (b)  With respect to Indemnity Claims involving matters asserted by
third parties, the indemnified party may engage representatives of its own
choosing with respect to any such Indemnity Claim, such representation
(including the compromise or settlement of any such Indemnity Claim) to be
undertaken on behalf of and for the account and risk of the indemnifying party.
In the event the indemnified party elects not to undertake such defense by its
own Representatives, the indemnified party shall give prompt written notice of

                                       46
<PAGE>

such election to the indemnifying party, and the indemnifying party will
undertake the defense (including the compromise or settlement) thereof by
Representatives designated by it whom the indemnified party determines in
writing to be satisfactory for such purposes.  The consent of the indemnified
party to the indemnifying party's choice of counsel or other representative
shall not be unreasonably withheld.  No party shall compromise or settle an
Indemnity Claim without the written consent of the other relevant party, which
consent shall not be unreasonably withheld, conditioned or delayed.

            (c)  With respect to an Indemnity Claim not involving a third
party, if the indemnifying party objects to such Indemnity Claim the
indemnifying party shall give the indemnified party written notice thereof
within fifteen (15) days following his or its receipt of notice of an
Indemnity Claim pursuant to Section 12.4(a) stating the basis for such
indemnifying party's objection.  Failure to give such notice shall constitute
acceptance by the indemnifying party of such Indemnity Claim.  In the event
the indemnified party and the indemnifying party are unable to resolve their
dispute within thirty (30) days following the receipt by the indemnified
party's notice of the indemnifying party's objection to such Indemnity Claim,
the parties shall submit their dispute to binding arbitration (i) to be held
in New York, New York pursuant to the Commercial Arbitration Rules of the
International Chamber of Commerce by three arbitrators appointed in
accordance with such rules, if the value of the disputed Indemnity Claim is
greater than or equal to U.S. $200,000 or (ii) to the Arbitration Tribunal
of the Mercantile Exchange for the City of Buenos Aires pursuant to the
rules of such tribunal by a three person panel appointed in accordance with
such rules, if the value of such disputed Indemnity Claim is less than U.S.
$200,000.  English shall be the language of any arbitration which takes
place in New York and Spanish shall be the language of any arbitration
which takes place in Buenos Aires.  Costs of the arbitration shall be
shared equally by the parties and each party shall pay its own attorneys'
fees and other expenses, except that the arbitrators may impose all or part
of the defending party's costs, fees and expenses against the party
bringing a claim if the arbitrators determine that there was no reasonable
basis for pursuing such a claim.  All testimony shall be transcribed, and
any award shall be accompanied by written findings of fact and a written
statement of reasons for the decision.

    12.5. Limitations on Liability

          (a)  No amount shall be payable in indemnification by any
indemnifying party under this Section 12 unless the aggregate Buyer Damages
suffered by the Buyer Indemnified Persons or the Aggregate Seller Damages
suffered by the Seller Indemnified Persons, as applicable, in respect of which
such indemnifying party would be liable under this Section 12 exceed Fifty
Thousand Dollars ($50,000) (the "Deductible"); provided however that, the
                                 ----------    -------- -------
Deductible shall not apply to (i) any claim based upon any
misrepresentation or breach of a representation or warranty which was
actually known to be untrue by the indemnifying party when made or asserted,
(ii) any claim for indemnity with respect to Taxes or (iii) any claim for

                                       47
<PAGE>

indemnity under Section 4.7 or Section 5.4.  In the event Aggregate Buyer
Damages or Aggregate Seller Damages, as applicable, exceed the Deductible,
the indemnified party shall be entitled to seek indemnification for all
Buyer Damages or Seller Damages, as applicable, in excess thereof.

          (b)  Except with respect to Indemnity Claims arising out of any
breach of any representation and warranty set forth in Section 3.10, 3.12,
3.13, 3.21 or 4.2, the aggregate indemnification payable in each case by
Sellers, on the one hand, and by Buyer and Diginet, on the other hand, shall
not exceed the Purchase Price.

    12.6. Escrow; Right of Set-off

          Upon notice to Sellers specifying in reasonable detail the basis for
such set-off, Buyer may set off any amount to which it may be entitled under
this Section 12 against amounts otherwise payable under the Promissory Notes or
may give notice of a claim for such amount under the Escrow Agreement.  The
exercise of such right of set-off by Buyer in good faith, whether or not
ultimately determined to be justified, will not constitute an event of default
under the Promissory Notes or any instrument securing a Promissory Note.
Neither the exercise of nor the failure to exercise such right of set-off or to
give a notice of a claim under the Escrow Agreement will constitute an election
of remedies or limit Buyer in any manner in the enforcement of any other
remedies that may be available to it.

    12.7. Exclusive Remedy

          The parties acknowledge that, except in the case of fraud, their sole
remedy after the Closing for any breach of any representation or warranty
contained in this Agreement shall be the indemnification provisions set forth in
this Section 12.  Notwithstanding the foregoing, nothing herein shall be
construed or interpreted as limiting or impairing the rights or remedies that
any party hereto may have at equity, including, but not limited to, specific
performance and injunctive relief, where available.

13.  TERMINATION

    13.1. Termination Events

          This Agreement may be terminated:

          (a)  by mutual consent of Buyer and Sellers;

          (b)  by Buyer, upon written notice to Sellers at any time prior to
the Closing, if Buyer, in its reasonable discretion, is not satisfied with the
results of its due diligence investigation of Sellers, the Company or of INEA
S.R.L. (as described in Section 2.6).

                                       48
<PAGE>

          (c)  by Buyer, upon written notice, to Sellers, if there has been a
breach by the Company or any Seller of any of its or his respective
representations, warranties, covenants or agreements contained herein, or any
such representation or warranty shall have become untrue, in any such case such
that any of the conditions set forth in Article 10 will not be satisfied,
and such breach or condition has not been cured within ten days following
receipt by the breaching party of written notice of such breach;

          (d)  by Sellers upon written notice to Buyer if there has been a
breach by Buyer or Diginet of any of its respective representations,
warranties, covenants or agreements contained herein, or any such representation
or warranty shall have become untrue, in any such case such that any of the
conditions set forth in Article 11 will not be satisfied, and such breach or
condition has not been cured within ten days following receipt by the breaching
party of written notice of such breach.

          (e)  by either Buyer or Sellers if the Closing has not occurred
(other than through the failure of any party seeking to terminate this Agreement
to comply fully with its obligations under this Agreement) on or before April
30, 2000, or such later date as the parties may agree upon.

    13.2. Effect of Termination

          If this Agreement is terminated pursuant to Section 13.1, this
Agreement shall forthwith become wholly void and of no effect, and the parties
shall be released from all future obligations hereunder; provided, however, that
the obligations in Sections 14.1 and 14.2 shall not be extinguished but shall
survive such termination; provided further, however, that if this Agreement is
                          -------- -------
terminated by a party because of the breach of this Agreement by the other party
or because one or more of the conditions to the terminating party's obligations
under this Agreement is not satisfied as a result of the other party's failure
to comply with its obligations under this Agreement, the terminating party's
right to pursue all legal remedies will survive such termination unimpaired.  In
the event of any termination of this Agreement, Buyer shall notify the Secretary
of Communications of Argentina thereof and take such other actions reasonably
required to withdraw any pending application with such Secretary for consent to
a change of control of the Licenses as a result of the transactions contemplated
by this Agreement.

14. GENERAL PROVISIONS

    14.1. Expenses

          Except as otherwise expressly provided in this Agreement, each party
to this Agreement will bear its respective expenses incurred in connection with
the preparation, execution, and performance of this Agreement and the

                                       49
<PAGE>

transactions, including all fees and expenses of agents, representatives,
counsel, and accountants.  Sellers will cause the Company not to incur any out-
of-pocket expenses in connection with this Agreement.  In the event of
termination of this Agreement, the obligation of each party to pay its own
expenses will be subject to any rights of such party arising from a breach of
this Agreement by another party.

    14.2. Confidentiality

          Between the date of this Agreement and the Closing Date, Buyer,
Diginet, the Company and Sellers will maintain in confidence, and will cause the
directors, officers, employees, agents, and advisors of Buyer and the Company to
maintain in confidence, and not use to the detriment of another party or the
Company any written, oral, or other information obtained in confidence from
another party or the Company in connection with this Agreement or the
transactions contemplated hereby, unless (a) such information is already known
to such party or to others not bound by a duty of confidentiality or such
information becomes publicly available through no fault of such party, (b) the
use of such information is necessary or appropriate in making any filing or
obtaining any consent or approval required for the consummation of the
transactions by this Agreement, or (c) the furnishing or use of such information
is required by legal proceedings.  If the transactions contemplated by this
Agreement are not consummated, each party will return or destroy as much of such
written information as the other party may reasonably request.

14.3.  Notices

          All notices, demands, requests, or other communications which may be
or are required to be given, served, or sent by any party to any other party
pursuant to this Agreement shall be in writing and shall be deemed to have been
duly given when (a) delivered by hand (with written confirmation of receipt),
(b) sent by facsimile transmission (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested, or
(c) when received or refused by the addressee, if sent by a nationally or
internationally recognized overnight delivery service (receipt requested), in
each case to the appropriate addresses and facsimile numbers set forth below (or
to such other addresses and facsimile numbers as a party may designate by notice
to the other parties):

          (i) if to Buyer or Diginet and, after the Closing, to the Company:

              Diginet Americas, Inc.
              3201 New Mexico Avenue, N.W.
              Suite 320
              Washington, D.C. 20016
              United States of America
              Attention:  David Rutchik, EVP, Corporate Development
              & General Counsel
              Facsimile: (202) 237-9830

                                       50
<PAGE>

          with a copy (which shall not constitute notice) to:

              Hogan & Hartson L.L.P.
              Columbia Square
              555 Thirteenth Street, N. W.
              Washington, D.C.  20008
              United States of America
              Attention:  Lorraine Sostowski
              Facsimile: (202) 637-5910

          (ii)   if to Sellers:

              (a)  Lissandrello:

              Pedro Ernesto Lissandrello
              Yapeyu 937
              Buenos Aires
              Republic of  Argentina
              Facsimile:  43427544

          (b)  Ortega:

              Roberto Anibal Ortega
              Calle 31 na 3939
              Berazategui (RNP)
              Buenos Aires
              Republic of Argentina
              Facsimile:  43427544

          (c)  Fernandez:

              Jorge Luis Fernandez
              Calle Ismael Moreno 630 de Sarandi
              Partido de Avellaneda
              Buenos Aires
              Republic of Argentina
              Facsimile:  43427544

                                       51
<PAGE>

          (iii)  if to the Company:

              INEA INTERNET S.A.
              Rivadavia 755, Piso 1
              Departamento A
              Capital Federal
              Buenos Aires, Argentina
              Attention:  President
              Facsimile:_________________

          with a copy, in the case of each Seller and, prior to the Closing, the
          Company (which shall not constitute notice) to:

              Vitale, Manoff, Fleibogen
              Viamonte 1145, 10 "A" floor
              Buenos Aires
              Argentina
              Attention:  Saul Feilbogen
              Facsimile:  43716349

          Each party may designate by notice in writing a new address to which
any notice, demand, request or communication may thereafter be so given, served
or sent.  Each notice, demand, request, or communication which shall be hand
delivered, sent or mailed, in the manner described above, shall be deemed
sufficiently given, served, sent, received or delivered for all purposes at such
time as it is delivered to the addressee (with the return receipt or the
delivery receipt being deemed conclusive, but not exclusive, evidence of such
delivery) or at such time as delivery is refused by the addressee upon
presentation.

    14.4.  Jurisdiction; Service of Process
           (a) By execution and delivery of this Agreement each of the Company,
each Seller, Buyer and Diginet hereby accepts and consents to the jurisdiction
of the courts of the United States of America and of the State of New York, for
itself and in respect of its property, and waives in respect of both itself and
its property any defense it may have as to or based on sovereign immunity,
jurisdiction, improper venue or inconvenient forum.  Each of the Company, each
Seller, Buyer and Diginet hereby irrevocably consents to the service of any
process or other papers by the use of any of the methods and to the addresses
set for the giving of notices pursuant to this Agreement or as provided in
Section 14.3.  Nothing herein shall affect the right of any of the Company, each
Seller, Buyer and Diginet to serve such process or papers in any other manner
permitted by law.

          (b) The Company and each Seller hereby irrevocably designates CSC
Corporation (the "Process Agent"), with offices at the date of this Agreement at
                  -------------
80 State Street, Albany, New York 12207-2543, as its designee, appointee and

                                       52
<PAGE>

agent to receive for and on its behalf, service of process in such jurisdiction
in any legal action or proceedings with respect to this Agreement, and such
service shall be deemed complete upon delivery thereof to the Process Agent,
provided that in the case of any such service upon the Process Agent, the party
effecting such service shall also deliver a copy thereof to each party in the
manner provided in Section 14.3.  The Company and each Seller shall take all
such action as may be necessary to continue said appointment in full force and
effect or to appoint another agent, who will thereafter be referred to herein as
the "Process Agent," so that such party will at all times have an agent for
     -------------
service of process for the above purposes in New York, New York.  In the event
of the transfer of all or substantially all of the assets and business of the
Process Agent to any other Person by consolidation, merger, sale of assets or
otherwise, such other Person shall be substituted hereunder for the Process
Agent with the same effect as if named herein in place of CSC Corporation or
appointed in place of such other agent that may have been appointed.  Nothing
herein shall affect the right of any party to serve process in any other manner
permitted by applicable law.  Each party expressly acknowledges that the
foregoing waiver is intended to be irrevocable under the laws of the State of
New York and of the United States of America.  The Process Agent must notify to
each of the Seller to the following adreess: Viamonte street 1145, 10 "A" floor,
Buenos Aires, Argentina, (1053)

    14.5.  Further Assurances

           The parties agree (a) to furnish upon request to each other such
further information, (b) to execute and deliver to each other such other
documents, and (c) to do such other acts and things, all as the other party may
reasonably request for the purpose of carrying out the intent of this Agreement
and the documents referred to in this Agreement.

    14.6.  Waiver

           The rights and remedies of the parties to this Agreement are
cumulative and not alternative.  Neither the failure nor any delay by any party
in exercising any right, power, or privilege under this Agreement or the Company
Closing Documents, the Seller Closing Documents, the Buyer Closing Documents or
the Diginet Closing Documents, as applicable, will operate as a waiver of such
right, power, or privilege, and no single or partial exercise of any such right,
power, or privilege will preclude any other or further exercise of such right,
power, or privilege or the exercise of any other right, power, or privilege.  No
single or partial exercise of any such right, power or privilege shall preclude
the further exercise of such right, power or privilege, or the exercise of any
other right, power or privilege.  To the maximum extent permitted by applicable
law, (a) no claim or right arising out of this Agreement or the Company Closing
Documents, the Seller Closing Documents, the Buyer Closing Documents or the
Diginet Closing Documents, as

                                       53
<PAGE>

applicable, can be discharged by one party, in whole or in part, by a waiver or
renunciation of the claim or right unless in writing signed by the other party;
(b) no waiver that may be given by a party will be applicable except in the
specific instance for which it is given; and (c) no notice to or demand on one
party will be deemed to be a waiver of any obligation of such party or of the
right of the party giving such notice or demand to take further action without
notice or demand as provided in this Agreement or the Company Closing Documents,
the Seller Closing Documents, the Buyer Closing Documents or the Diginet Closing
Documents, as applicable.

    14.7.  Entire Agreement and Modification

           This Agreement, including the Schedules and Exhibits hereto and
Company Closing Documents, the Seller Closing Documents, the Buyer Closing
Documents or the Diginet Closing Documents, as applicable, supersedes all prior
agreements between the parties with respect to its subject matter (including the
Letter of Intent between Buyer and Sellers dated January 3, 2000) and
constitutes the entire agreement among the parties with respect to its subject
matter.  This Agreement may not be amended except by a written agreement
executed by the party to be charged with the amendment.

    14.8.  Binding Effect

           Subject to any provisions hereof restricting assignment, this
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors, heirs, executors, administrators, legal
representatives and permitted assigns.

    14.9.  Assignment

           No party may assign its rights or obligations hereunder without the
prior written consent of the other parties, which consent shall not be
unreasonably withheld, conditioned, or delayed, except that (a) Diginet may
assign all of its rights and obligations hereunder in connection with a merger,
consolidation, or sale of all or substantially all of its Assets, (b) Buyer may
assign all of its rights and obligations hereunder to an Affiliate and (c)
Diginet and Buyer may assign all or any portion of its rights hereunder as
security for a loan.

    14.10.  Limitation on Benefits

           The covenants, undertakings and agreements set forth in this
Agreement shall be solely for the benefit of, and shall be enforceable only by,
the parties hereto and their respective successors, heirs, executors,
administrators, legal representatives and permitted assigns, except that the

                                       54
<PAGE>

agreements set forth in Section 12 also shall be for the benefit of, and
enforceable by, Buyer Indemnified Persons, Seller Indemnified Persons and their
respective successors, heirs, executors, administrators, legal representatives
or permitted assigns.

    14.11.  Severability

          If any provision of this Agreement or any other Agreement or document
given pursuant or in connection with this Agreement shall be invalid or
unenforceable in any respect, such part shall be ineffective to the extent of
such invalidity or unenforceability only, without in any way affecting the
remaining parts of such provision or the remaining provisions of this Agreement.

    14.12. Section Headings Construction; Gender

           The headings of sections and subsections in this Agreement are
provided for convenience of reference only, shall not be deemed to be a part of
this Agreement for any purpose, and shall not in any way define or affect the
meaning, construction or scope of any of the provisions hereof.  The parties
hereto acknowledge that all parties participated equally in the drafting and
negotiation of this Agreement and were represented by counsel of their own
choosing in connection therewith.  Consequently, this Agreement shall be
construed without referencing to any rule of law which provides that ambiguities
in a contract are to be resolved against the drafter thereof. The use of the
neuter gender herein shall be deemed to include the masculine and the feminine
gender, if the context so requires.

    14.13. Governing Law

           THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR
RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE
OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

    14.14. Execution in Counterparts

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

                                       55
<PAGE>

    14.15. Specific Performance

          In addition to any other remedies which any party may have at law or
in equity, each Seller, on the one hand, and Buyer and Diginet, on the other
hand, hereby acknowledges that the Ordinary Shares and, the Company, on the one
hand, and the Diginet Stock, on the other hand, are unique, and that the harm to
each Seller or Buyer and Diginet resulting from breaches by any party of its or
his respective obligations cannot be adequately compensated by damages.
Accordingly, each Seller, on the one hand, and Buyer and Diginet, on the other
hand, agree that each Seller and Buyer and Diginet shall have the right to have
all obligations, undertakings, agreements, covenants, and other provisions of
this Agreement specifically performed by the other parties, as the case may be,
and that each Seller or Buyer and Diginet, as the case may be, shall have the
right to obtain an order or decree of such specific performance in any of the
courts of the United States of America or the Republic of Argentina.

                                       56
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, or have caused this Agreement to be fully executed on their behalf,
as of the date first set forth above.

SELLERS:            BUYER:

___________________________         DIVEO ARGENTINA S.A..
Pedro Ernesto Lissandrello.
                                    By:___________________________
                                                            Name:  Jaime Cibils
Robirosa
____________________________        Title: Chief Executive Officer
Roberto Anibal Ortega

_____________________________       DIGINET:
Jorge Luis Fernandez
                                    DIGINET AMERICAS, INC.

COMPANY:                            By:
                                                            Name: David R.
Schmieg
INEA INTERNET S.A.                  Title:   Chief Executive Officer

By: _________________________
Name: Pedro Lisandrello
Title: Chief Executive Officer

                                       57
<PAGE>

                                   EXHIBIT A
                                   ---------
<TABLE>
<CAPTION>
                                                                  Forfeitable   Number of     Number of
                             Number of       Cash    Promissory   Portion of    Shares of     Shares of
                              Ordinary     Payment      Note      Promissory     Diginet       Escrowed     Percentage
          Name                 Shares       Amount     Amount       Note          Stock         Stock        Interest
  --------------------------------------------------------------------------------------------------------------------
<S>                        <C>            <C>       <C>           <C>          <C>          <C>             <C>
Lissandrello                     4,000     $916,667    $933,333     $600,000     368,324        18,417          33-1/3%

Ortega                           4,000     $916,667    $933,333     $600,000     368,324        18,417          33-1/3%

Fernandez                        4,000     $916,667    $933,333     $600,000     368,324        18,417          33-1/3%
</TABLE>

                                       58
<PAGE>

                                                                       EXHIBIT D
                                                                       ---------

     This outline briefly summarizes the relevant scope of the United States
("U.S.") Foreign Corrupt Practices Act ("FCPA") of 1977, as amended in 1988, and
related regulations; it is for informational purposes only and is not intended
as legal guidance.

    1.  General
        -------

        The FCPA consists basically of a prohibition against U.S. persons
engaging in bribery of foreign officials either directly or indirectly (through
the nationals or entities of other countries).  It is a violation of the FCPA if
a U.S. company or individual corruptly and knowingly takes steps to offer, pay,
give or transfer anything of value to a foreign official, political party,
official of a foreign political party or candidate for foreign political office,
in order to influence any action in the person's official capacity, or to induce
the official to use his influence or to violate his lawful duty, so that the
U.S. firm or individual may obtain or retain business.  This same prohibition
applies to the use of any intermediary who offers or pays such amounts to any of
the foregoing people.  Further, one cannot avoid "knowledge" (and application of
the statue) by deliberately disregarding facts.  Finally, even if a "sensitive"
or "facilitating" payment does not violate the FCPA, it still may result in
violation of other U.S. federal or state laws or laws of foreign countries in
which the company is operating, such as currency restrictions.

    2.  Exceptions and Exclusions.
        -------------------------
        (a)  "Grease" payments.
              ----------------

        It is not prohibited under the FCPA to make any "facilitating" or
"expediting" payment, the purpose of which is simply to expedite or to secure
the performance of a "routine governmental action".  Therefore, a so-called
"grease" payment may be made to a foreign official of any status, but only if it
is for "routine governmental action", defined to mean that which is "ordinarily
and commonly performed without the exercise of discretion."  This grease payment
exclusion does not exempt payments for governmental actions that are for the
functional equivalent of the award or retention of business.

        (b)  Legality under local written law.
             --------------------------------
        It is a defense under the FCPA to make payments which are "lawful
under the written laws and regulations" of the local country.

        (c)  Reasonable and bona fide expenditures.
             -------------------------------------

        It is also a defense under the FCPA to make payments that are directly
related to the promotion, demonstration, etc. of products or services, or the

                                       59
<PAGE>

execution of an existing contract with a foreign government (such as for travel
and lodging expenses).

    3.  Penalties.
        ---------

        The maximum fine for a U.S. corporation is two million dollars and one
hundred thousand dollars for individuals found to have violated the statute.  If
criminal charges are pursued, the possibility for imprisonment is for a period
up to five years.  Additionally, a civil penalty of ten thousand dollars per
violation may be imposed on corporations and individuals by the Department of
Justice.  Further, an individual corporate employee may be convicted even if the
U.S. corporation has not been found to have violated the FCPA.  Finally, a
violation of the antibribery provisions of the FCPA may result in a U.S.
government-wide suspension or debarment from participation in American funded
programs.

                                       60
<PAGE>

                                  Schedule 2.2
                                  ------------

                          Allocation of Purchase Price

The Purchase Price shall be allocated as follows: (i) Three Million U.S. Dollars
(US $3,000,000) to the Covenant Not to Compete and (ii) the balance to the
Ordinary Shares.

                                       61
<PAGE>

                                  Schedule 3.1
                                  ------------

                         Organization and Good Standing

1.  Jurisdictions Outside Argentina Where the Company is Qualified to Do
    Business.

2.  Other Names Under Which the Company Has Conducted Business.

3.  Subsidiaries and Other Entities in which the Company Holds an Equity
    Interest.

                                       62
<PAGE>

                                  Schedule 3.2
                                  ------------

                          Certified Copies of Company
                            Organizational Documents

                                       63
<PAGE>

                                Schedule 3.3(b)
                                ---------------

                    Required Approvals under Applicable Law;
                     Agreements Violated by this Agreement

                                       64
<PAGE>

                                Schedule 3.3(c)
                                ---------------

                               Required Consents

                                       65
<PAGE>

                                  Schedule 3.5
                                  ------------

                              Financial Statements

                                       66
<PAGE>

                                  Schedule 3.7
                                  ------------

                            Undisclosed Liabilities

                                       67
<PAGE>

                                  Schedule 3.8
                                  ------------

                        Real Property; Title Exceptions

                                       68
<PAGE>

                                  Schedule 3.9
                                  ------------

                         Product or Service Warranties

                                       69
<PAGE>

                                 Schedule 3.11
                                 -------------

                       Changes in the Company's Business

                                       70
<PAGE>

                                 Schedule 3.12
                                 -------------

                               Employee Benefits

                                       71
<PAGE>

                                 Schedule 3.13
                                 -------------

             Non-Compliance with Laws; Governmental Authorizations

                                       72
<PAGE>

                                 Schedule 3.15
                                 -------------

                         Litigation and Other Disputes

                                       73
<PAGE>

                                 Schedule 3.16
                                 -------------

                               List of Contracts

                                       74
<PAGE>

                                 Schedule 3.18
                                 -------------

                                   Insurance

                                       75
<PAGE>

                                 Schedule 3.19
                                 -------------

                                   Employees

                                       76
<PAGE>

                                 Schedule 3.20
                                 -------------

                                Labor Relations

                                       77
<PAGE>

                                 Schedule 3.21
                                 -------------

                             Intellectual Property

                                       78
<PAGE>

                                 Schedule 3.24
                                 -------------

                                    Systems

                                       79
<PAGE>

                                 Schedule 3.25
                                 -------------

                                  Subscribers

                                       80
<PAGE>

                                Schedule 4.1(b)
                                ---------------

                          Approvals Needed by Sellers;
                         Agreements Breached by Sellers
                          Entering into this Agreement

                                       81
<PAGE>

                                Schedule 4.1(c)
                                ---------------

                       Consents to be Obtained by Sellers

                                       82
<PAGE>

                                  Schedule 5.2
                                  ------------

                Certified Copies of Buyer Organization Documents

                                 See attached.

                                       83
<PAGE>

                                Schedule 5.3(b)
                                ---------------

                    Approvals Required by Buyer; Agreements
                 Violated by Buyer Entering Into This Agreement

1.  See Schedule 6.3(b).

                                       84
<PAGE>

                                Schedule 5.3(c)
                                ---------------

                           Consents Required by Buyer

1.  See Schedule 6.3(b).

                                       85
<PAGE>

                                  Schedule 5.4
                                  ------------

                     Buyer's Obligations For Broker's Fees

                                      None

                                       86
<PAGE>

                                  Schedule 6.1
                                  ------------

                         Jurisdictions in which Diginet
                          is Qualified to Do Business

1.  District of Columbia

2.  New York

3.  Missouri

                                       87
<PAGE>

                                  Schedule 6.2
                                  ------------

                        Diginet Organizational Documents

                                 See attached.

                                       88
<PAGE>

                                Schedule 6.3(b)
                                ---------------

                         Approvals Required by Diginet;
                         Agreements Violated by Diginet
                          Entering into this Agreement

1. Approval of the transactions contemplated by this Agreement by a
   supermajority of the preferred stockholders of Diginet is required under the
   Amended and Restated Stockholders' Agreement, dated as of April 16, 1999,
   among Diginet and certain of its stockholders.

                                       89
<PAGE>

                                Schedule 6.3(c)
                                ---------------

                          Consents Required by Diginet

1.  See Schedule 6.3(b).

                                       90
<PAGE>

                                  Schedule 6.4
                                  ------------

                     Obligations of Diginet to Repurchase,
                          Redeem or Otherwise Acquire
                         Shares of Its Capital Stock or
                             Make any Investment in
                                any Other Person

1.  Pursuant to the Amended and Restated Stockholders' Agreement, dated as of
April 16, 1999, among Diginet and certain of its shareholders, those
shareholders have a right to require Diginet to repurchase their shares of
Diginet stock at any time or from time to time during the period commencing on
April 16, 2006 and ending on April 16, 2010 at a price equal to fair market
value as determined in accordance with the agreement.  This right will terminate
upon the completion of the initial public offering of Diginet's common stock
(provided that certain tests regarding the size of the offering and the per
share price of the stock sold in the offering are met).

2.  Diginet anticipates issuing approximately 900,000 shares of common stock to
three of its executives within the next sixty (60) days and, in connection
therewith, granting these executives the right, during the period commencing on
the first anniversary of the issuance of such shares and ending upon the
completion of the initial public offering of Diginet's common stock, to sell
these shares back to Diginet for a price equal to their fair market value.

                                       91
<PAGE>

                                 Schedule 10.4
                                 -------------

                            Required Buyer Consents

1.  Consent For Transfer of Commercial Establishment
    (Fondo do Commercio)

2.  Consent of CNC to transfer control of Licenses

3.  Consent of the Spouses of Sellers to the Transactions Contemplated Hereby,
    in form and substance satisfactory to counsel for Buyer

                                       92
<PAGE>

                                 Schedule 11.3
                                 -------------

                            Required Seller Consents

                                       93
<PAGE>

                               TABLE OF CONTENTS

                                                                         Page
<TABLE>
<S>                                                                       <C>
1.  DEFINITIONS..........................................................  1
2.  SALE AND PURCHASE OF SHARES; CLOSING.................................  8
    2.1.  Sale and Purchase of Shares....................................  8
    2.2.  Purchase Price.................................................  9
    2.3.  Closing........................................................ 10
    2.4.  Closing........................................................ 10
    2.5.  Purchase Price Adjustments..................................... 11
    2.6.  Additional Escrow Requirements................................. 11
3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND
   SELLERS REGARDING THE COMPANY......................................... 11
    3.1.  Organization and Good Standing................................. 11
    3.2.  Certificate or Articles of Incorporation....................... 11
    3.3.  Authority; Enforceability; No Conflict......................... 11
    3.4.  Capitalization; Ownership of Ordinary Shares................... 11
    3.5.  Financial Statements........................................... 11
    3.6.  Books and Records.............................................. 11
    3.7.  No Undisclosed Liabilities..................................... 11
    3.8.  Title to Properties............................................ 11
    3.9.  Accounts Receivable; Product and Services Warranties........... 11
   3.10.  Taxes.......................................................... 11
   3.11.  No Material Adverse Change; Conduct of Business................ 11
   3.12.  Employee Benefits.............................................. 11
   3.13.  Compliance With Laws; Governmental Authorizations.............. 11
   3.14.  Licenses....................................................... 11
   3.15.  Litigation; Disputes........................................... 11
   3.16.  Contracts; No Defaults......................................... 11
   3.17.  Key Customers.................................................. 11
   3.18.  Insurance...................................................... 11
   3.19.  Employees...................................................... 11
   3.20.  Labor Relations................................................ 11
   3.21.  Intellectual Property.......................................... 11
   3.22.  Year 2000 Compliance........................................... 11
   3.23.  Company Brokers or Finders..................................... 11
   3.24.  Systems........................................................ 11
   3.25.  Subscribers.................................................... 11
   3.26.  Disclosure..................................................... 11
4. REPRESENTATIONS AND WARRANTIES OF EACH SELLER......................... 11
   4.1.  Authority; Enforceability; No Conflict.......................... 11
</TABLE>
                                       i
<PAGE>

<TABLE>
<S>                                                                       <C>
   4.2.  Title to Shares................................................. 11
   4.3.  Insolvency...................................................... 11
   4.4.  Litigation...................................................... 11
   4.5.  Principal Residence............................................. 11
   4.6.  Investment Representations...................................... 11
   4.7.  Seller Broker or Finders........................................ 11
   4.8.  Disclosure...................................................... 11
5. REPRESENTATIONS AND WARRANTIES OF BUYER............................... 11
   5.1.  Organization and Good Standing.................................. 11
   5.2.  Certificate or Articles of Incorporation........................ 11
   5.3.  Authority; Enforceability; No Conflict.......................... 11
   5.4.  Brokers or Finders.............................................. 11
   5.5.  Disclosure...................................................... 11
6. REPRESENTATIONS AND WARRANTIES OF DIGINET............................. 11
   6.1.  Organization and Good Standing.................................. 11
   6.2.  Certificate or Articles of Incorporation........................ 11
   6.3.  Authority; Enforceability; No Conflict.......................... 11
   6.4.  Capitalization.................................................. 11
   6.5.  Brokers or Finders.............................................. 11
   6.6.  Disclosure...................................................... 11
7. COVENANTS OF COMPANY AND THE SELLERS  11
   7.1.  Access and Investigation........................................ 11
   7.2.  Operation of the Business of the Company........................ 11
   7.3.  Required Consents and Approvals................................. 11
   7.4.  Notification.................................................... 11
   7.5.  Liability for Taxes............................................. 11
   7.6.  Payment of Indebtedness......................................... 11
   7.7.  No Inconsistent Negotiations.................................... 11
   7.8.  Litigation Assistance........................................... 11
   7.9.  Non-Competition................................................. 11
8. COVENANTS OF BUYER PRIOR TO CLOSING DATE.............................. 11
   8.1.  Required Consents and Approvals................................. 11
9. COVENANTS OF ALL PARTIES PRIOR TO CLOSING DATE........................ 11
   9.1.  Further Action.................................................. 11
   9.2.  Publicity....................................................... 11
10.  CONDITIONS PRECEDENT TO BUYER'S AND DIGINET'S
         OBLIGATION TO CLOSE............................................. 11
  10.1.  Satisfaction with Due Diligence................................. 11
  10.2.  Representations and Warranties.................................. 11
  10.3.  Company's and Sellers' Performance.............................. 11
  10.4.  Consents........................................................ 11
  10.5.  Key Customer Contracts.......................................... 11
  10.6.  Employment Agreements........................................... 11
  10.7.  INEA Stockholders Agreement..................................... 11
</TABLE>
                                      ii
<PAGE>

<TABLE>
<S>                                                                       <C>
  10.8.  Assignment of Intellectual Property Rights...................... 11
  10.9.  Escrow Agreement................................................ 11
  10.10. Legal Opinions.................................................. 11
  10.11. No Proceedings.................................................. 11
  10.12. No Material Adverse Change...................................... 11
  10.13. Resignations of Directors and Executive Officers................ 11
11.  CONDITIONS PRECEDENT TO SELLERS' OBLIGATION TO CLOSE................ 11
  11.1.  Representations and Warranties.................................. 11
  11.2.  Buyer's and Diginet's Performance............................... 11
  11.3.  Consents........................................................ 11
  11.4.  Employment Agreement............................................ 11
  11.5.  INEA Stockholders Agreement..................................... 11
  11.6.  Promissory Notes................................................ 11
  11.7.  Guarantees...................................................... 11
  11.8.  Legal Opinions.................................................. 11
  11.9.  No Proceedings.................................................. 11
12.  INDEMNIFICATION; REMEDIES........................................... 11
  12.1.  Reliance on and Survival of Representations and Warranties...... 11
  12.2.  Sellers Indemnification Obligations............................. 11
  12.3.  Buyer and Diginet Indemnification Obligations................... 11
  12.4.  Conditions of Indemnification................................... 11
  12.5.  Limitations on Liability........................................ 11
  12.6.  Escrow; Right of Set-off........................................ 11
  12.7.  Exclusive Remedy................................................ 11
13.  TERMINATION......................................................... 11
  13.1.  Termination Events.............................................. 11
  13.2.  Effect of Termination........................................... 11
14.  GENERAL PROVISIONS.................................................. 11
  14.1.  Expenses........................................................ 11
  14.2.  Confidentiality................................................. 11
  14.3.  Notices......................................................... 11
  14.4.  Jurisdiction; Service of Process................................ 11
  14.5.  Further Assurances.............................................. 11
  14.6.  Waiver.......................................................... 11
  14.7.  Entire Agreement and Modification............................... 11
  14.8.  Binding Effect.................................................. 11
  14.9.  Assignment...................................................... 11
  14.10. Limitation on Benefits.......................................... 11
  14.11. Severability.................................................... 11
  14.12. Section Headings Construction; Gender........................... 11
  14.13. Governing Law................................................... 11
  14.14. Execution in Counterparts....................................... 11
  14.15. Specific Performance............................................ 11

</TABLE>
                                      iii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]