Document:

<PAGE>

                            REGISTRATION RIGHTS AGREEMENT

       REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of March 7,
2000, by and among ASPEON, INC., a Delaware corporation (the "COMPANY"), ASPEON
SOLUTIONS, INC., a Delaware corporation ("ASP"), and MARSHALL CAPITAL
MANAGEMENT, INC. ("Purchaser").

       The Company has agreed, on the terms and subject to the conditions set
forth in the Securities Purchase Agreement of even date herewith (the
"SECURITIES PURCHASE AGREEMENT"), to issue and sell to Purchaser (i) shares (the
"COMPANY PREFERRED SHARES") of the Company's Series A Convertible Exchangeable
Preferred Stock, $.01 par value (the "COMPANY PREFERRED STOCK") and (ii)
warrants (the "COMPANY WARRANTS") entitling the holder thereof to purchase
shares (the "COMPANY WARRANT SHARES") of the Company's common stock, $.01 par
value (the "COMPANY COMMON STOCK")ASP has agreed to issue and sell, on the terms
and subject to the conditions set forth in the Securities Purchase Agreement,
warrants (the "ASP WARRANTS") entitling the holder thereof to purchase shares
(the "ASP WARRANT SHARES") of the common stock, $.01 par value (the "ASP COMMON
STOCK"), of ASP. The Company Preferred Shares are convertible pursuant to a
certificate of designation (the "COMPANY CERTIFICATE OF DESIGNATION") into
shares (the "COMPANY CONVERSION SHARES") of the Company Common Stock and, in
certain circumstances, exchangeable for shares of the preferred stock of ASP
(the "ASP PREFERRED SHARES"), which are convertible, pursuant to a certificate
of designation (the "ASP CERTIFICATE OF DESIGNATION"), into shares of ASP Common
Stock (the "ASP CONVERSION SHARES").  Dividends accruing on the Company
Preferred Shares may be paid, in certain circumstances, in shares of Common
Stock (the "DIVIDEND SHARES"). Dividends accruing on the ASP Preferred Shares
may be paid, in certain circumstances, in shares of ASP Common Stock (the "ASP
DIVIDEND SHARES").  The Company Preferred Shares and the ASP Preferred Shares
are collectively referred to herein as the "PREFERRED SHARES."  The Company
Warrants and the ASP Warrants are collectively referred to herein as the
"Warrants."

       In order to induce Purchaser to enter into the Securities Purchase
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended (the "SECURITIES ACT"), and under
applicable state securities laws.  Capitalized terms used herein and not
otherwise defined shall have the respective meanings set forth in the Securities
Purchase Agreement or the Certificate of Designation, as applicable.

       In consideration of Purchaser entering into the Securities Purchase
Agreement, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

       1.     DEFINITIONS.

       For purposes of this Agreement, the following terms shall have the
meanings specified:

<PAGE>

              (a)    "ASP REGISTRABLE SECURITIES" means the ASP Conversion
              Shares, the ASP Warrant Shares, the ASP Dividend Shares and any
              other shares of ASP Common Stock issuable pursuant to the terms of
              the ASP Certificate of Designation or the ASP Warrants,
              respectively, and any shares of capital stock issued or issuable
              from time to time (with any adjustments) in replacement of, in
              exchange for or otherwise in respect of the ASP Conversion Shares,
              the ASP Warrant Shares or the ASP Dividend Shares, or pursuant to
              the conversion of any security issued in exchange for the ASP
              Preferred Shares.

              (b)    "BUSINESS DAY" and "CLOSING DATE" shall have the respective
              meanings specified in the Securities Purchase Agreement;

              (c)    "EFFECTIVE DATE" means the date on which the Registration
              Statement is declared effective by the Securities and Exchange
              Commission (the "COMMISSION");

              (d)    "FILING DEADLINE" means the thirtieth (30th) day following
              the Closing Date; PROVIDED, HOWEVER, that if such thirtieth day is
              not a Business Day, the Filing Deadline shall be the Business Day
              immediately following such thirtieth day;
              (e)    "HOLDER" means any person owning or having the right to
              acquire, through conversion of the Preferred Shares or exercise of
              the Warrants, Registrable Securities, including initially
              Purchaser and thereafter any permitted assignee thereof;

              (f)    "INITIAL PUBLIC OFFERING" means the initial public offering
              of the ASP Common Stock.   The Initial Public Offering will be
              deemed to commence upon the effectiveness of the registration
              statement pursuant to which the Initial Public Offering will be
              conducted;

              (g)    "REGISTER", "REGISTERED" and "REGISTRATION" refer to a
              registration effected by preparing and filing a registration
              statement or statements in compliance with the Securities Act and
              pursuant to Rule 415 under the Securities Act ("RULE 415") or any
              successor rule providing for the offering of securities on a
              continuous or delayed basis ("REGISTRATION STATEMENT"), and the
              declaration or ordering of effectiveness of the Registration
              Statement by the Commission;

              (h)    "REGISTRATION DEADLINE" means the ninetieth (90th) day
              following the earlier to occur of (i) the Filing Deadline and (ii)
              the date on which the Registration Statement is filed;

              (i)    "COMPANY REGISTRABLE SECURITIES" means the Company
              Conversion Shares, the Company Warrant Shares, the Company
              Dividend Shares and any other shares of Common Stock issuable
              pursuant to the terms of the Company Certificate of Designation or
              the Company Warrants, respectively, and any shares of common stock
              issued or issuable from time to time (with any adjustments) in
              replacement of, in

                                       -2-
<PAGE>

              exchange for or otherwise in respect of the Company Conversion
              Shares, the Company Warrant Shares or the Company Dividend
              Shares, or pursuant to the conversion of any security issued in
              exchange for the Company Preferred Shares; and

              (j)    "REGISTRABLE SECURITIES" means the Company Registrable
              Securities and/or the ASP Registrable Securities, as the context
              requires; and

              (l)    "REGISTRANT" means, with respect to a Registration
              Statement or Registrable Securities, the Company and/or ASP, as
              the context requires.

       2.     MANDATORY REGISTRATION.

              (A)    COMPANY REGISTRATION.

              (a)    On or before the Filing Deadline, the Company shall prepare
and file with the Commission a Registration Statement on Form S-3 as a "shelf"
registration statement under Rule 415 covering the resale of the number of
shares of Company Registrable Securities equal to the Reserved Amount (as
defined in the Securities Purchase Agreement). The Registration Statement shall
state, to the extent permitted by Rule 416 under the Securities Act, that it
also covers such indeterminate number of shares of Common Stock as may be
required to effect conversion of the Preferred Shares and Warrants in order to
prevent dilution resulting from stock splits, stock dividends or similar events.

              (b)    The Company shall use its best efforts to cause the
Registration Statement to become effective as soon as practicable following the
filing thereof, but in no event later than the Registration Deadline. The
Company shall respond promptly to any and all comments made by the staff of the
Commission on the Registration Statement (but in no event later than fifteen
(15) Business Days following the Company's receipt thereof), and shall submit to
the Commission, within two (2) Business Days after the Company learns that no
review of the Registration Statement will be made by the staff of the Commission
or that the staff of the Commission has no further comments on the Registration
Statement, as the case may be, a request for acceleration of the effectiveness
of the Registration Statement to a time and date not later than forty eight (48)
hours after the submission of such request. The Company shall maintain the
effectiveness of the Registration Statement until the earlier to occur of (i)
the date on which all of the Company Registrable Securities have been sold
pursuant to the Registration Statement and (ii) the date on which all of the
remaining Company Registrable Securities (in the reasonable opinion of counsel
to the Holders) may be immediately sold to the public without registration and
without regard to the amount of Company Registrable Securities which may be sold
by a Holder thereof at a given time (the period beginning on the Registration
Deadline and ending on the earlier of  such dates being referred to herein as
the "REGISTRATION PERIOD").

              (c)    If (A) the Registration Statement is not filed on or before
the Filing Deadline or declared effective by the Commission on or before the one
hundred and twentieth (120th) day following the earlier to occur of (i) the
Filing Deadline and (ii) the date on which the Registration Statement is filed
(such 120th day being referred to herein as the "REGISTRATION DEFAULT DATE"),
(B) after the Registration Statement has been declared effective by the
Commission, sales of Company Registrable Securities cannot be made by a Holder
under the Registration Statement (except during a Blackout

                                       -3-
<PAGE>

Period (as defined below)) for any reason not within the exclusive control of
such Holder (other than with respect to such Company Registrable Securities
as are then freely saleable pursuant to Rule 144(k) under the Securities
Act), or (C) the Common Stock is not listed and freely tradeable on the
Nasdaq National Market or the New York Stock Exchange (each of (A), (B) or
(C) being referred to herein as a "DEFAULT EVENT"), the Company shall pay to
each Holder an amount equal to the lesser of (x) one and one half percent
(1.5%) per thirty calendar day period (prorated for any period of less than
thirty calendar days) and (y) the highest rate permitted by applicable law,
TIMES the Stated Value of the Preferred Shares then held by such Holder,
accruing daily and compounded monthly, from the date on which a Default Event
occurs until the date on which such Default Event and any and all other
Default Events have been cured and are no longer continuing. The amounts paid
or payable by the Company hereunder shall be in addition to any other
remedies available to each Holder at law or in equity or pursuant to the
terms hereof or the Securities Purchase Agreement, or otherwise. Payments of
such amounts pursuant hereto shall be made in immediately available funds
within five (5) Business Days after the end of each period that gives rise to
such obligation, provided that, if any such period extends for more than
thirty (30) days, payments shall be made within five (5) days after the end
of each thirty-day period.

              (d)    In the event that (A) the Registration Statement is not
declared effective by the Registration Default Date, (B) after the
Registration Statement has been declared effective by the Commission, sales
of Company Registrable Securities cannot be made by a Holder under the
Registration Statement (except during a Blackout Period (as defined below)
for any reason not within the exclusive control of such Holder (other than
such Company Registrable Securities as are then freely saleable pursuant to
Rule 144(k) under the Securities Act), (C) the Common Stock is not listed and
freely tradeable on the Nasdaq National Market or the New York Stock
Exchange, or (D) the Company breaches, in any material respect, any material
covenant or other material term or condition of the applicable Certificate of
Designation, the Securities Purchase Agreement, Registration Rights Agreement
or the applicable Warrants or any other agreement, document, certificate or
other instrument delivered in connection with the transactions contemplated
hereby or thereby, and such breach continues for a period of ten (10)
Business Days after written notice thereof to the Company from a Holder (each
event described in clause (A), (B), (C) or (D) being hereinafter referred to
as a "REPRICING EVENT"), in addition to the amounts which may be payable
pursuant to paragraph 2(c) above (and any other remedies available to the
Holders), the Conversion Price for any conversion of Preferred Shares
occurring on a Conversion Date following the occurrence of such Repricing
Event shall be deemed to be equal to the lesser of (i) the lowest Conversion
Price (or if lower, Market Price) occurring during the period between the
date on which a Repricing Event occurs and the date on which such Repricing
Event and any and all other Repricing Events have been cured and are no
longer continuing and (ii) the Conversion Price that would otherwise be in
effect on such Conversion Date.  If a Repricing Event occurs, the Share
Limitation (as defined in the Certificate of Designation) shall be increased
in proportion to the reduction in the Conversion Price effected thereby.  The
Company may suspend the use of the Registration Statement and refuse to
permit the Holders to resell any Company Registrable Securities pursuant to
the Registration Statement for a period not to exceed twenty (20) days in any
twelve (12) month period (each, a "BLACKOUT PERIOD"); provided, however, that
in order to exercise this right, the Company must notify each Holder in
writing that there exists material, non-public information relating to the
Company, which, in the reasonable opinion of the board of directors of the
Company would not be appropriate for disclosure during that time.  In such
event, the Company shall

                                       -4-
<PAGE>

(i) use its best efforts to amend the Registration Statement and/or
supplement the related prospectus as necessary and to take all other actions
necessary to allow such sales and (ii) notify the Holders promptly after it
has determined that such sales are permissible.

              (B)    ASP REGISTRATION.

              (a)    FROM AND AFTER THE COMMENCEMENT OF THE INITIAL PUBLIC
OFFERING, EACH HOLDER OF ASP REGISTRABLE SECURITIES SHALL HAVE THE RIGHT, UPON
WRITTEN NOTICE DELIVERED TO ASP, TO REQUIRE ASP TO prepare and file with the
Commission a registration statement (the "ASP REGISTRATION STATEMENT") as a
"shelf" registration statement under Rule 415 covering the resale of the number
of shares of ASP Registrable Securities equal to the ASP Reserved Amount (as
defined in the Securities Purchase Agreement). The ASP Registration Statement
shall state, to the extent permitted by Rule 416 under the Securities Act, that
it also covers such indeterminate number of shares of ASP Common Stock as may be
required to effect exercise of the ASP Warrants in order to prevent dilution
resulting from stock splits, stock dividends or similar events. ASP will file
the ASP Registration Statement on Form S-3 if ASP is eligible to use such form
for sales of ASP Registrable Securities by the Holders or, if  Form S-3 is not
available, on such form as may be available to ASP; PROVIDED, that if the ASP
Registration Statement is filed on a form other than Form S-3, ASP will use its
best efforts to convert the ASP Registration Statement to Form S-3 as soon as
practicable following its eligibility to us Form S-3.

              (e)    ASP shall use its best efforts to cause the ASP
Registration Statement to become effective as soon as practicable following the
filing thereof. ASP shall respond promptly to any and all comments made by the
staff of the Commission on the Registration Statement (but in no event later
than fifteen (15) Business Days following ASP's receipt thereof), and shall
submit to the Commission, within two (2) Business Days after ASP learns that no
review of the ASP Registration Statement will be made by the staff of the
Commission or that the staff of the Commission has no further comments on the
ASP Registration Statement, as the case may be, a request for acceleration of
the effectiveness of the ASP Registration Statement to a time and date not later
than forty eight (48) hours after the submission of such request. ASP shall
maintain the effectiveness of the ASP Registration Statement until the earlier
to occur of (i) the date on which all of the ASP Registrable Securities have
been sold pursuant to the ASP Registration Statement and (ii) the date on which
all of the remaining ASP Registrable Securities (in the reasonable opinion of
counsel to the Holders) may be immediately sold to the public without
registration and without regard to the amount of ASP Registrable Securities
which may be sold by a Holder thereof at a given time (the period beginning on
the commencement of the Initial Public Offering and ending on the earlier of
such dates being referred to herein as the "ASP REGISTRATION PERIOD").

       3.     PIGGYBACK REGISTRATION.

              (A)    COMPANY PIGGYBACK REGISTRATION.

              If at any time prior to the expiration of the Registration Period,
(i) the Company proposes to register shares of Common Stock under the Securities
Act in connection with the public offering of such shares for cash (other than a
registration relating solely to the sale of securities to participants in a
Company stock plan or employee stock award or a registration on Form S-4 under
the

                                       -5-
<PAGE>

Securities Act or any successor or similar form registering stock issuable
upon a reclassification, a business combination involving an exchange of
securities or an exchange offer for securities of the issuer or another
entity, or a registration statement covering the resale of securities issued
in connection with a corporate acquisition) (a "PROPOSED REGISTRATION") and
(ii) a registration statement covering the sale of all of the Company
Registrable Securities is not then effective and available for sales thereof
by the Holders, the Company shall, at such time, promptly give each Holder
written notice of such Proposed Registration.  Each Holder shall have twenty
(20) days from its receipt of such notice to deliver to the Company a written
request specifying the amount of Company Registrable Securities that such
Holder intends to sell and such Holder's intended method of distribution.
Upon receipt of such request, the Company shall use its best efforts to cause
all Company Registrable Securities which the Company has been requested to
register to be registered under the Securities Act to the extent necessary to
permit their sale or other disposition in accordance with the intended
methods of distribution specified in the request of such Holder; PROVIDED,
HOWEVER, that the Company shall have the right to postpone or withdraw any
registration to which this Section 3 applies without obligation to the
Holder.  If, in connection with any underwritten public offering for the
account of the Company or for shareholders of the Company that have
contractual rights to require the Company to register shares of Common Stock,
the managing underwriter(s) thereof shall impose a limitation on the number
of shares of Common Stock which may be included in the Registration Statement
because, in the judgment of such underwriter(s), marketing or other factors
dictate such limitation is necessary to facilitate such offering, then the
Company shall be obligated to include in such Registration Statement only
such limited portion of the Company Registrable Securities with respect to
which each Holder has requested inclusion hereunder as such underwriter(s)
shall permit.  Any such exclusion of Company Registrable Securities shall be
made pro rata among the Holders seeking to include Company Registrable
Securities in the Registration Statement, in proportion to the number of
Company Registrable Securities sought to be included by such Holders;
provided, however, that the Company shall not exclude any Company Registrable
Securities unless the Company has first excluded all outstanding securities,
the holders of which are not entitled to inclusion of such securities in such
Registration Statement or are not entitled to pro rata inclusion with the
Company Registrable Securities; and provided, further,  that, after giving
effect to the immediately preceding proviso, any exclusion of Company
Registrable Securities shall be made pro rata with holders of other
securities having the right to include such securities in the Registration
Statement. Notwithstanding the foregoing, and in connection with any
underwritten public offering, in the event that the managing underwriter(s)
thereof impose any limitation on the number of shares of Common Stock which
may be included on the Registration Statement, Finova Capital Corporation
shall have a priority over the Holders for inclusion in such Registration
Statement with respect to 100,000 shares of Common Stock.

              (B)    ASP PIGGYBACK REGISTRATION

              If at any time prior to the expiration of the ASP Registration
Period, (i) ASP proposes to register shares of Common Stock under the Securities
Act in connection with the public offering of such shares for cash (other than a
registration relating solely to the sale of securities to participants in a
Company stock plan or employee stock award or a registration on Form S-4 under
the Securities Act or any successor or similar form registering stock issuable
upon a reclassification, a business combination involving an exchange of
securities or an exchange offer for securities of the issuer or another entity,
or a registration statement covering the resale of securities issued in
connection with a corporate

                                       -6-
<PAGE>

acquisition) (a "PROPOSED ASP REGISTRATION") and (ii) a registration
statement covering the sale of all of the ASP Registrable Securities is not
then effective and available for sales thereof by the Holders, ASP shall, at
such time, promptly give each Holder written notice of such ASP Proposed
Registration.  Each Holder shall have twenty  (20) days from its receipt of
such notice to deliver to ASP a written request specifying the amount of ASP
Registrable Securities that such Holder intends to sell and such Holder's
intended method of distribution.  Upon receipt of such request, ASP shall use
its best efforts to cause all ASP Registrable Securities which ASP has been
requested to register to be registered under the Securities Act to the extent
necessary to permit their sale or other disposition in accordance with the
intended methods of distribution specified in the request of such Holder;
PROVIDED, HOWEVER, that ASP shall have the right to postpone or withdraw any
registration to which this Section 3 applies without obligation to the
Holder. If, in connection with any underwritten public offering for the
account of ASP or for shareholders of ASP that have contractual rights to
require ASP to register shares of Common Stock, the managing underwriter(s)
thereof shall impose a limitation on the number of shares of ASP Common Stock
which may be included in the ASP Registration Statement because, in the
judgment of such underwriter(s), marketing or other factors dictate such
limitation is necessary to facilitate such offering, then ASP shall be
obligated to include in such ASP Registration Statement only such limited
portion of the ASP Registrable Securities with respect to which each Holder
has requested inclusion hereunder as such underwriter(s) shall permit.  Any
such exclusion of ASP Registrable Securities shall be made pro rata among the
Holders seeking to include ASP Registrable Securities in the ASP Registration
Statement, in proportion to the number of ASP Registrable Securities sought
to be included by such Holders; provided, however, that ASP shall not exclude
any ASP Registrable Securities unless ASP has first excluded all outstanding
securities, the holders of which are not entitled to inclusion of such
securities in such ASP Registration Statement or are not entitled to pro rata
inclusion with the ASP Registrable Securities; and provided, further,  that,
after giving effect to the immediately preceding proviso, any exclusion of
ASP Registrable Securities shall be made pro rata with holders of other
securities having the right to include such securities in the ASP
Registration Statement.

       4.     OBLIGATIONS OF THE COMPANY.

              In addition to performing its obligations hereunder, including
without limitation those pursuant to paragraphs 2(A) above, the Company shall:

              (a)    promptly prepare and file with the Commission such
amendments and supplements to the Registration Statement and the prospectus used
in connection with the Registration Statement, or file such new Registration
Statement or Statements, as may be necessary (i) to comply with the provisions
of the Securities Act, (ii) in the event that the Company is unable to include
in the Registration Statement filed pursuant to paragraph 2(A) above all of the
Company Registrable Securities required to be included therein pursuant to
paragraph 2(A), to cover any such Company Registrable Securities not so
included, or (iii) to maintain the effectiveness of the Registration Statement
during the Registration Period, or as may be reasonably requested within a
reasonable time prior to any proposed sale by a Holder in order to incorporate
information concerning such Holder or such Holder's intended method of
distribution;

              (b)    secure the listing of all Company Registrable Securities on
the Nasdaq National

                                       -7-
<PAGE>

Market prior to the date on which the Registration Statement relating to such
Company Registrable Securities becomes effective;

              (c)    furnish to each Holder such number of copies of the
prospectus included in such Registration Statement, including a preliminary
prospectus, if any, in conformity with the requirements of the Securities Act,
and such other documents as such Holder may reasonably request in order to
facilitate the disposition of such Holder's Company Registrable Securities;

              (d)    use all commercially reasonable efforts to register or
qualify the Company Registrable Securities under the securities or "blue sky"
laws of such jurisdictions within the United States as shall be reasonably
requested from time to time by a Holder, and do any and all other acts or things
which may be necessary or advisable to enable such Holder to consummate the
public sale or other disposition of the Company Registrable Securities in such
jurisdictions; provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such jurisdiction;

              (e)    in the event of an underwritten public offering of the
Company Registrable Securities, enter into (together with all Holders proposing
to distribute Company Registrable Securities through such underwriting) and
perform its obligations under an underwriting agreement, in usual and customary
form reasonably acceptable to the Company, with the managing underwriter of such
offering;

              (f)    notify each Holder immediately upon the occurrence of any
event as a result of which the prospectus included in such Registration
Statement, as then in effect, contains an untrue statement of material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing, and as promptly as practicable, prepare, file and furnish to each
Holder a reasonable number of copies of a supplement or an amendment to such
prospectus as may be necessary so that such prospectus does not contain an
untrue statement of material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing;

              (g)    use all commercially reasonable efforts to prevent the
issuance of any stop order or other order suspending the effectiveness of such
Registration Statement and, if such an order is issued, to obtain the withdrawal
thereof at the earliest possible time and to notify each Holder of the issuance
of such order and the resolution thereof;

              (h)    furnish to each Holder, on the date that such Registration
Statement becomes effective, (x) a letter, dated such date, of outside counsel
representing the Company (and reasonably acceptable to such Holder) addressed to
such Holder, confirming the effectiveness of the Registration Statement and, to
the knowledge of such counsel, the absence of any stop order, and (y) in the
case of an underwriting, (A) an opinion addressed to the underwriters, dated
such date, of such outside counsel, in such form and substance as is required to
be given to such underwriters, and (B) a letter addressed to such underwriters,
dated such date, from the Company's independent certified public accountants, in
such form and substance as is required to be given by the Company's independent
certified public accountants to such underwriters;

                                       -8-
<PAGE>

              (i)    provide each Holder and its representatives the opportunity
to conduct a reasonable inquiry of the Company's financial and other records
during normal business hours and make available its officers, directors and
employees for questions regarding information which such Holder may reasonably
request in order to fulfill any due diligence obligation on its part;

              (j)    permit counsel retained for such purpose by each Holder to
review and comment on the Registration Statement and all amendments and
supplements thereto, and any comments made by the staff of the Commission and
the Company's responses thereto, within a reasonable period of time prior to the
filing thereof with the Commission (or, in the case of comments made by the
staff of the Commission, within a reasonable period of time following the
receipt thereof by the Company);

              (k)    refrain during the period of one hundred and eighty
(180) days following the Effective Date from allowing any registration
statement covering the Common Stock (other than the Registration Statement(s)
required to be filed hereunder) to be declared effective by the Commission,
other than a registration statement relating to the issuance or resale of
securities pursuant to (i) an employee benefit plan or program duly adopted
by the Company; (ii) any options, warrant, convertible securities or rights
or agreements to purchase securities of the Company outstanding on the date
hereof; (iii) any firm-commitment underwritten public offerings of
securities; (iv) any security issued for consideration other than cash
pursuant to a merger, consolidation, acquisition or similar business
combination; (v) shares of Common Stock issued in connection with any stock
split, stock dividend or recapitalization by the Company; (vi) shares of
Common Stock issued upon conversion of the Preferred Shares or exercise of
the Closing Warrant; (vii) any securities issued pursuant to any equipment
leasing arrangement or debt financing from a bank or similar financial
institution; or (viii) any securities issued in connection with strategic
transactions involving the Company and other entities, including (A) joint
ventures, manufacturing, marketing or distribution arrangements or (B)
technology transfer or development arrangements; provided, that the primary
purpose of such transaction is not the raising of capital. and

              (l)    in the event that the number of shares available under the
Registration Statement filed by the Company hereunder is insufficient during any
period of three (3) consecutive trading days to cover 125% of the Company
Registrable Securities then issued or issuable (such number to be determined
using the Conversion Price or exercise price in effect on such dates and without
regard to any restriction on the ability to a Holder to convert Preferred Shares
or exercise the Warrants as of such dates) the Company shall promptly amend the
Registration Statement or file a new registration statement, in any event as
soon as practicable, but not later than the tenth (10th) Business Day following
notice from such Holder of the occurrence of such event, so that the
Registration Statement or such new registration statement covers no less than
150% of the Company Registrable Securities then issued or issuable.  Any
Registration Statement filed pursuant to this paragraph 4 shall state that, to
the extent permitted by Rule 416 under the Securities Act, such Registration
Statement also covers such indeterminate number of additional shares of Common
Stock as may become issuable upon conversion of the Preferred Shares or exercise
of the Warrants in full.  Unless and until such amendment or new Registration
Statement becomes effective, each Holder shall have the rights described in
Section 2 above.

                                       -9-
<PAGE>

       5A.    OBLIGATIONS OF ASP.

              In addition to performing its obligations hereunder, including
without limitation those pursuant to paragraphs 2(B) above, ASP shall:

              (b)    promptly prepare and file with the Commission such
amendments and supplements to the ASP Registration Statement and the prospectus
used in connection with the ASP Registration Statement, or file such new ASP
Registration Statement or Statements, as may be necessary (i) to comply with the
provisions of the Securities Act, (ii) in the event that ASP is unable to
include in the ASP Registration Statement filed pursuant to paragraph 2(B) above
all of the ASP Registrable Securities required to be included therein pursuant
to paragraph 2(B), to cover any such ASP Registrable Securities not so included,
or (iii) to maintain the effectiveness of the ASP Registration Statement during
the ASP Registration Period, or as may be reasonably requested within a
reasonable time prior to any proposed sale by a Holder in order to incorporate
information concerning such Holder or such Holder's intended method of
distribution;

              (b)    secure the listing of all ASP Registrable Securities on the
Nasdaq National Market prior to the date on which the ASP Registration Statement
relating to such ASP Registrable Securities becomes effective;

              (c)    furnish to each Holder such number of copies of the
prospectus included in such ASP Registration Statement, including a preliminary
prospectus, if any, in conformity with the requirements of the Securities Act,
and such other documents as such Holder may reasonably request in order to
facilitate the disposition of such Holder's ASP Registrable Securities;

              (d)    use all commercially reasonable efforts to register or
qualify the ASP Registrable Securities under the securities or "blue sky" laws
of such jurisdictions within the United States as shall be reasonably requested
from time to time by a Holder, and do any and all other acts or things which may
be necessary or advisable to enable such Holder to consummate the public sale or
other disposition of the ASP Registrable Securities in such jurisdictions;
provided that ASP shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such jurisdiction;

              (e)    in the event of an underwritten public offering of the ASP
Registrable Securities, enter into (together with all Holders proposing to
distribute ASP Registrable Securities through such underwriting) and perform its
obligations under an underwriting agreement, in usual and customary form
reasonably acceptable to ASP, with the managing underwriter of such offering;

              (f)    notify each Holder immediately upon the occurrence of any
event as a result of which the prospectus included in such ASP Registration
Statement, as then in effect, contains an untrue statement of material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing, and as promptly as practicable, prepare, file and furnish to each
Holder a reasonable number of copies of a supplement or an amendment to such
prospectus as may be necessary so that such prospectus does not contain an

                                       -10-
<PAGE>

untrue statement of material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing;

              (g)    use all commercially reasonable efforts to prevent the
issuance of any stop order or other order suspending the effectiveness of such
ASP Registration Statement and, if such an order is issued, to obtain the
withdrawal thereof at the earliest possible time and to notify each Holder of
the issuance of such order and the resolution thereof;

              (h)    furnish to each Holder, on the date that such ASP
Registration Statement becomes effective, (x) a letter, dated such date, of
outside counsel representing ASP (and reasonably acceptable to such Holder)
addressed to such Holder, confirming the effectiveness of the ASP Registration
Statement and, to the knowledge of such counsel, the absence of any stop order,
and (y) in the case of an underwriting, (A) an opinion addressed to the
underwriters, dated such date, of such outside counsel, in such form and
substance as is required to be given to such underwriters, and (B) a letter
addressed to such underwriters, dated such date, from ASP's independent
certified public accountants, in such form and substance as is required to be
given by ASP's independent certified public accountants to such underwriters;

              (i)    provide each Holder and its representatives the opportunity
to conduct a reasonable inquiry of ASP's financial and other records during
normal business hours and make available its officers, directors and employees
for questions regarding information which such Holder may reasonably request in
order to fulfill any due diligence obligation on its part;

              (j)    permit counsel retained for such purpose by each Holder to
review and comment on the ASP Registration Statement and all amendments and
supplements thereto, and any comments made by the staff of the Commission and
ASP's responses thereto, within a reasonable period of time prior to the filing
thereof with the Commission (or, in the case of comments made by the staff of
the Commission, within a reasonable period of time following the receipt thereof
by ASP);

              (k)    refrain during the period of one hundred and eighty (180)
days following the date on which the ASP Registration Statement is declared
effective by the Commission from allowing any registration statement covering
the ASP Common Stock (other than the ASP Registration Statement(s) required to
be filed hereunder) to be declared effective by the Commission, other than a
registration statement relating to the issuance or resale of securities pursuant
to (i) an employee benefit plan or program duly adopted by ASP; (ii) any
options, warrant, convertible securities or rights or agreements to purchase
securities of ASP outstanding on the date hereof; (iii) any public offerings of
securities; (iv) any security issued for consideration other than cash pursuant
to a merger, consolidation, acquisition or similar business combination; (v)
shares of Common Stock issued in connection with any stock split, stock dividend
or recapitalization by ASP; (vi) shares of Common Stock issued upon exercise of
the ASP Warrant; (vii) any securities issued pursuant to any equipment leasing
arrangement or debt financing from a bank or similar financial institution; or
(viii) any securities issued in connection with strategic transactions involving
ASP and other entities, including (A) joint ventures, manufacturing, marketing
or distribution arrangements or (B) technology transfer or development
arrangements; provided, that the primary purpose of such transaction is not the
raising of capital; and

                                       -11-
<PAGE>

              (m)    in the event that the number of shares available under the
ASP Registration Statement filed by ASP hereunder is insufficient during any
period of three (3) consecutive trading days to cover 125% of the ASP
Registrable Securities then issued or issuable (such number to be determined
using the exercise price in effect on such dates and without regard to any
restriction on the ability to a Holder to exercise the ASP Warrant as of such
dates), ASP shall promptly amend the ASP Registration Statement or file a new
registration statement, in any event as soon as practicable, but not later than
the tenth (10th) Business Day following notice from such Holder of the
occurrence of such event, so that the Registration Statement or such new
registration statement covers no less than 150% of the Registrable Securities
then issued or issuable.  Any ASP Registration Statement filed pursuant to this
paragraph 4A shall state that, to the extent permitted by Rule 416 under the
Securities Act, such ASP Registration Statement also covers such indeterminate
number of additional shares of ASP Common Stock as may become issuable upon
exercise of the ASP Warrants in full.

       6.     OBLIGATIONS OF EACH HOLDER.

       In connection with the registration of the Registrable Securities
pursuant to the Registration Statement or the ASP Registration Statement, as the
case may be, each Holder shall:

              (a)  furnish to the Registrant in writing such information
regarding itself and the intended method of disposition of Registrable
Securities as the Registrant shall reasonably request in order to effect the
registration thereof;

              (b)  upon receipt of any notice from the Registrant of the
happening of any event of the kind described in paragraphs 4(f) or 4(g) (or
4A(f) or 4A(g) or of the imposition of a Blackout Period pursuant to paragraph
2(d), immediately discontinue any sale or other disposition of Registrable
Securities pursuant to the applicable Registration Statement until the filing of
an amendment or supplement as described in paragraph 4(f) (or 4A(f)) or
withdrawal of the stop order referred to in paragraph 4(g) (or 4A(g));

              (c)  in the event of an underwritten offering of the Registrable
Securities, enter into a customary and reasonable underwriting agreement and
execute such other documents as the managing underwriter for such offering may
reasonably request;

              (d)  to the extent required by applicable law, deliver a
prospectus to the purchaser of Registrable Securities;

              (e)  notify the Registrant when it has sold all of the
Registrant's Registrable Securities theretofore held by it; and

              (f)  promptly notify the Registrant in the event that any
information supplied by such Holder in writing for inclusion in the applicable
Registration Statement or related prospectus is untrue or omits to state a
material fact required to be stated therein or necessary to make such
information not misleading in light of the circumstances then existing.

                                       -12-
<PAGE>

       7.     INDEMNIFICATION.

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

              (a)    To the extent permitted by law, the Registrant shall
indemnify and hold harmless each Holder, the officers, directors, employees and
agents of such Holder, and each person, if any, who controls such Holder within
the meaning of the Securities Act or the Securities Exchange Act of 1934, as
amended (the "1934 ACT"), against any losses, claims, damages, liabilities or
reasonable out-of-pocket expenses (whether joint or several) (collectively,
including legal or other expenses reasonably incurred in connection with
investigating or defending same, "LOSSES"), insofar as any such Losses arise out
of or are based upon (i) any untrue statement or alleged untrue statement of a
material fact contained in such Registration Statement, including any
preliminary prospectus, if any, or final prospectus contained therein or any
amendments or supplements thereto, or (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading.  Subject to the provisions of paragraph 6(c) below, the
Registrant will reimburse such Holder, and each such officer, director,
employee, agent or controlling person for any legal or other expenses as
reasonably incurred by any such entity or person in connection with
investigating or defending any Loss; provided, however, that the foregoing
indemnity shall not apply to amounts paid in settlement of any Loss if such
settlement is effected without the consent of the Registrant (which consent
shall not be unreasonably withheld), nor shall the Registrant be obligated to
indemnify any person for any Loss to the extent that such Loss arises out of or
is based upon and in conformity with written information furnished by such
person expressly for use in such Registration Statement; and provided, further,
that the Registrant shall not be required to indemnify any person to the extent
that any Loss results from such person selling Registrable Securities (i) to a
person to whom there was not sent or given, at or prior to the written
confirmation of the sale of such shares, a copy of the prospectus, as most
recently amended or supplemented, if the Registrant has previously furnished or
made available copies thereof or (ii) during any period following written notice
by the Registrant to such Holder of an event described in paragraph 4(f) or 4(g)
(or paragraph 4A(f) or 4A(g)) or pursuant to paragraph 2(d).

              (b)    To the extent permitted by law, each Holder, acting
severally and not jointly, shall indemnify and hold harmless the Registrant, the
officers, directors, employees, agents and representatives of the Registrant,
and each person, if any, who controls the Registrant within the meaning of the
Securities Act or the 1934 Act, against any Losses to the extent (and only to
the extent) that any such Losses arise out of or are based upon and in
conformity with written information furnished by such Holder expressly for use
in such Registration Statement; and such Holder will reimburse any legal or
other expenses as reasonably incurred by the Registrant and any such officer,
director, employee, agent, representative, or controlling person, in connection
with investigating or defending any such Loss; provided, however, that the
foregoing indemnity shall not apply to amounts paid in settlement of any such
Loss if such settlement is effected without the consent of such Holder, which
consent shall not be unreasonably withheld; provided, that, in no event shall
any indemnity under this paragraph 6(b) exceed the net proceeds resulting from
the sale of the Registrable Securities sold by such Holder under the
Registration Statement.

                                       -13-
<PAGE>

              (c)    Promptly after receipt by an indemnified party under this
Section 6 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 6, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in and to assume the
defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party shall have the right to retain its own
counsel, with the reasonably incurred fees and expenses of one such counsel to
be paid by the indemnifying party, if representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate under
applicable standards of professional conduct due to actual or potential
conflicting interests between such indemnified party and any other party
represented by such counsel in such proceeding.  The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of
any such action, to the extent prejudicial to its ability to defend such action,
shall relieve such indemnifying party of any liability to the indemnified party
under this Section 6 with respect to such action, but the omission so to deliver
written notice to the indemnifying party will not relieve it of any liability
that it may have to any indemnified party otherwise than under this Section 6 or
with respect to any other action unless the indemnifying party is materially
prejudiced as a result of not receiving such notice.

              (d)    In the event that the indemnity provided in paragraph 6(a)
or 6(b) is unavailable or insufficient to hold harmless an indemnified party for
any reason, the Registrant and each Holder agree, severally and not jointly, to
contribute to the aggregate Losses to which the Registrant or such Holder may be
subject in such proportion as is appropriate to reflect the relative fault of
the Registrant and such Holder in connection with the statements or omissions
which resulted in such Losses; provided, however, that in no case shall such
Holder be responsible for any amount in excess of the proceeds resulting from
the sale of the Registrable Securities sold by it under the Registration
Statement.  Relative fault shall be determined by reference to whether any
alleged untrue statement or omission relates to information provided by the
Registrant or by such Holder.  The Registrant and each Holder agree that it
would not be just and equitable if contribution were determined by pro rata
allocation or any other method of allocation which does not take account of the
equitable considerations referred to above.  Notwithstanding the provisions of
this paragraph 6(d), no person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
indemnification or contribution from any person who is not guilty of fraudulent
misrepresentation.  For purposes of this Section 6, each person who controls a
Holder within the meaning of either the Securities Act or the Exchange Act and
each officer, director, employee or  agent of such Holder shall have the same
rights to contribution as such Holder, and each person who controls the
Registrant within the meaning of either the Securities Act or the Exchange Act
and each officer, director, employee or agent of the Registrant shall have the
same rights to contribution as the Registrant, subject in each case to the
applicable terms and conditions of this paragraph 6(d).

              (e)    The obligations of the Registrant and each Holder under
this Section 6 shall survive the conversion of the Preferred Shares and exercise
of the Warrants in full, the completion of any offering of Registrable
Securities pursuant to a Registration Statement under this Agreement, or
otherwise.

                                       -14-
<PAGE>

       8.     REPORTS.

              With a view to making available to each Holder the benefits of
Rule 144 under the Securities Act ("Rule 144") and any other similar rule or
regulation of the Commission that may at any time permit such Holder to sell
securities of the Company or ASP, as the case may be, to the public without
registration, the applicable Registrant agrees to:

              (a)    make and keep public information available, as those terms
are understood and defined in Rule 144;

              (b)    file with the Commission in a timely manner all reports and
other documents required to be filed by the Company under the Securities Act and
the 1934 Act; and

              (c)    furnish to such Holder, so long as such Holder owns any of
such Registrant's Registrable Securities, forthwith upon written request (i) a
written statement by the Registrant, if true, that it has complied with the
reporting requirements of Rule 144, and the 1934 Act, (ii) to the extent not
publicly available through the Commission's EDGAR database, a copy of the most
recent annual or quarterly report of the Registrant and such other reports and
documents so filed by the Registrant, and (iii) such other information as may be
reasonably requested in availing such Holder of any rule or regulation of the
Commission which permits the selling of any such securities without
registration.

       9.     MISCELLANEOUS.

              (a)    EXPENSES OF REGISTRATION.  All expenses, other than
underwriting discounts and commissions and fees and expenses of counsel to the
Holders, incurred in connection with the registrations, filings or
qualifications described herein, including (without limitation) all
registration, filing and qualification fees, printers' and accounting fees, the
fees and disbursements of counsel for the applicable Registrant, and the fees
and disbursements incurred in connection with the opinion and letter described
in paragraph 4(h) and in paragraph 4A(h)  hereof, shall be borne by the
applicable Registrant.

              (b)    AMENDMENT; WAIVER.  Any provision of this Agreement may be
amended only pursuant to a written instrument executed by the Company, ASP and
the Holders of a majority of the Registrable Securities (assuming conversion of
all of the Preferred Shares and exercise in full of the Warrants in each case
without regard to any limitation on such conversion or exercise). Any waiver of
the provisions of this Agreement may be made only pursuant to a written
instrument executed by the party against whom enforcement is sought.  Any
amendment or waiver effected in accordance with this paragraph shall be binding
upon each Holder, each future Holder, the Company and ASP.  The failure of any
party to exercise any right or remedy under this Agreement or otherwise, or the
delay by any party in exercising such right or remedy, shall not operate as a
waiver thereof.

              (c)    NOTICES.  Any notice, demand or request required or
permitted to be given by any party to any other party pursuant to the terms of
this Agreement shall be in writing and shall be deemed given (i) when delivered
personally or by verifiable facsimile transmission (with an original to follow)
on or before 5:00 p.m., eastern time, on a Business Day or, if such day is not a
Business Day, on the next succeeding Business Day, (ii) on the next Business Day
after timely delivery to a

                                       -15-
<PAGE>

nationally-recognized overnight courier and (iii) on the day actually
received after deposit in the U.S. mail (certified or registered mail, return
receipt requested, postage prepaid), addressed to the parties as follows:

              If to the Company or ASP:

              Aspeon, Inc.
              17891 Cartwright Road
              Irvine, California 92614
              Tel:   (949) 440-8000
              Fax:   (949) 440-8088
              Attention:   Chief Financial Officer

              WITH A COPY TO:

              Cooley Godward LLP
              4365 Executive Drive
              Suite 1100
              San Diego, California  92121-2128
              Attention:  Jeremy D. Glaser, Esq.
              Tel:   (858) 550-6000
              Fax:   (858) 453-3555

and if to any Holder, to such address as shall be designated by such Holder in
writing to the Company.

              (d)    TERMINATION.  This Agreement shall terminate on the earlier
to occur of (a) the end of the Registration Period and (b) the date on which all
of the Registrable Securities have been publicly distributed; but any such
termination shall be without prejudice to (i) the parties' rights and
obligations arising from breaches of this Agreement occurring prior to such
termination and (ii) the indemnification and contribution obligations under this
Agreement.

              (e)    ASSIGNMENT.  Upon the transfer of Preferred Shares,
Warrants or Registrable Securities by a Holder, the rights of such Holder
hereunder, solely with respect to the securities so transferred, shall be
assigned automatically to the transferee thereof as long as: (i) the Company and
ASP are , within a reasonable period of time following such transfer, furnished
with written notice of the name and address of such transferee, (ii) the
transferee agrees in writing with the Company and ASP to be bound by all of the
provisions hereof and (iii) such transfer is made in accordance with the
applicable securities laws, the applicable requirements of the Securities
Purchase Agreement, the applicable Certificate of Designation or the applicable
Warrant, as the case may be; PROVIDED, HOWEVER, that the registration rights
granted in this Agreement shall not be transferred to any person or entity that
receives any such security pursuant to an effective registration statement under
the Securities Act or pursuant to a transaction under Rule 144 or any successor
provision thereto.

              (f)    COUNTERPARTS.  This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, and all of which
together shall be deemed one and the same instrument.  This Agreement, once
executed by a party, may be delivered to any other party hereto by

                                       -16-
<PAGE>

facsimile transmission.

              (g)    GOVERNING LAW.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without regard to
the conflict of laws provisions thereof.

                                       -17-
<PAGE>

       IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first-above written.

ASPEON, INC.

By: __________________________
       Name:  Richard P. Stack
       Title:  Chief Executive Officer

ASPEON SOLUTIONS, INC.

By: __________________________
       Name:  Richard P. Stack
       Title:  Chief Executive Officer

MARSHALL CAPITAL MANAGEMENT, INC.

By: __________________________
         Allan Weine, President

                                       -18-<PAGE>

                            SECURITIES PURCHASE AGREEMENT

       SECURITIES PURCHASE AGREEMENT (this "AGREEMENT"), dated as of March 7,
2000, by and among ASPEON, INC., a Delaware corporation (the "COMPANY"), ASPEON
SOLUTIONS, INC., a Delaware corporation ("ASP"), and Marshall Capital
Management, Inc. ("PURCHASER").

       The Company wishes to sell to Purchaser, and Purchaser wishes to buy, on
the terms and subject to the conditions set forth in this Agreement, shares (the
"PREFERRED SHARES") of the Company's Series A Convertible Exchangeable Preferred
Stock, par value $.01 per share (the "PREFERRED STOCK"), and a warrant in the
form attached hereto as EXHIBIT A (the "CLOSING WARRANT").  ASP, the Company's
majority-owned subsidiary, wishes to sell to Purchaser, and Purchaser wishes to
buy, on the terms and subject to the conditions set forth in this Agreement, a
warrant in the form attached hereto as EXHIBIT B (the "ASP WARRANT") (the
Closing Warrant and the ASP Warrant are collectively referred to herein as the
"WARRANTS"). The Preferred Shares are convertible pursuant to the terms of the
Certificate of Designation relating to the Preferred Stock, the form of which is
attached hereto as EXHIBIT C (the "CERTIFICATE OF DESIGNATION") into shares (the
"CONVERSION SHARES") of the Company's common stock, par value $.01 per share
(the "COMMON STOCK") and dividends payable thereon may be paid, under certain
conditions, in shares of Common Stock (the "DIVIDEND SHARES"). The Closing
Warrant is exercisable into shares of Common Stock (the "CLOSING WARRANT
SHARES") in accordance with its terms. The ASP Warrant is exercisable into
shares (the "ASP Warrant Shares") of the common stock (the "ASP COMMON STOCK")
of ASP(the Closing Warrant Shares and the ASP Warrant Shares are collectively
referred to herein as the "WARRANT SHARES"). The Preferred Shares, the
Conversion Shares, the Dividend Shares, the Warrants, and the Warrant Shares are
collectively referred to herein as the "SECURITIES".  Any capitalized term used
herein that is not otherwise defined shall have the meaning specified therefor
in the Certificate of Designation.

       The sale and issuance of the Preferred Shares and the Closing Warrant by
the Company hereunder, and the sale and issuance of the ASP Warrant by ASP
hereunder, will be effected in reliance upon the exemption from securities
registration afforded by the provisions of Regulation D ("REGULATION D") as
promulgated by the Securities and Exchange Commission (the "COMMISSION") under
the Securities Act of 1933, as amended (the "SECURITIES ACT"). The Company has
agreed to effect the registration of the Conversion Shares and the Warrant
Shares under the Securities Act pursuant to a Registration Rights Agreement of
even date herewith by and between the Company and Purchaser (the "REGISTRATION
RIGHTS AGREEMENT").

       The Company and Purchaser hereby agree as follows:

1.     PURCHASE AND SALE OF THE PREFERRED SHARES AND WARRANTS.

       1.1    AGREEMENT TO PURCHASE AND SELL.  Upon the terms and subject to the
satisfaction or waiver of the conditions set forth herein, the Company agrees to
sell and Purchaser agrees to purchase (A) ten thousand (10,000) Preferred Shares
and (B) a Closing Warrant exercisable from

<PAGE>

time to time following the issue date thereof for five (5) years from the
Closing Date (as defined below) into 583,334 Closing Warrant Shares (subject
to adjustment as specified in the Closing Warrant). Upon the terms and
subject to the satisfaction or waiver of the conditions set forth herein, ASP
agrees to sell and Purchaser agrees to purchase an ASP Warrant exercisable
from the date (the  "INITIAL EXERCISE DATE") that is the earlier to occur of
(i) the date on which ASP or any successor entity commences an initial public
offering (the "INITIAL PUBLIC OFFERING") of its equity securities and (ii)
one year from the Closing Date, for five (5) years from the Initial Exercise
Date  into 1,250,000 ASP Warrant Shares (subject to adjustment as specified
in the ASP Warrant). The Closing Warrant will have an initial exercise price
of $17.00 per Closing Warrant Share, subject to adjustment from time to time
as set forth in the Closing Warrant. The ASP Warrant will have an initial
exercise price equal to $5.00 per ASP Warrant Share, (assuming that the ASP
Warrant is exercisable into one million two hundred fifty thousand
(1,250,000) ASP Warrant Shares and that the number of shares of ASP Common
Stock outstanding is twenty million (20,000,000) as of the Closing Date). The
date on which the closing (the "CLOSING") of the purchase and sale of the
Preferred Shares and Warrants occurs is hereinafter referred to as the
"CLOSING DATE". The purchase price for the Preferred Shares and Warrants
being purchased by Purchaser (the "PURCHASE PRICE") shall be equal to the
Stated Value of the Preferred Shares being purchased by Purchaser. The
Company and ASP shall allocate the Purchase Price paid by the Purchasers
among the Preferred Shares and the Warrants as set forth on SCHEDULE 1.1.
Subject to the satisfaction or waiver of the conditions set forth herein, the
Closing will be deemed to occur when the Company and Purchaser execute and
deliver this Agreement and the other Transaction Documents (as defined
below), which delivery may be effected by facsimile transmission, and full
payment of Purchaser's Purchase Price has been made by wire transfer of
immediately available funds against physical delivery by the Company of duly
executed certificates representing the Preferred Shares and Warrants being
purchased by Purchaser (it being understood that the Company will be deemed
to be acting as agent for ASP for purposes of delivering the certificates
representing the ASP Warrant and receiving the portion of the Purchase Price
allocated to the ASP Warrant as set forth on Schedule 1.1).

       1.2    CERTAIN DEFINITIONS.  When used herein, the following terms shall
have the respective meanings indicated:

              "BUSINESS DAY" shall mean any day on which the New York Stock
Exchange (the "NYSE") and commercial banks in the city of New York are open for
business.

              "CLOSING BID PRICE" shall mean, with respect to the Common Stock,
the closing bid price for the Common Stock occurring on a given Trading Day on
the principal securities exchange or trading market where such security is
listed or traded as reported by Bloomberg Financial Markets or, if Bloomberg
Financial Markets is not then reporting such prices, by a comparable reporting
service of national reputation selected by the Company and reasonably acceptable
to Purchaser (collectively, "BLOOMBERG") or if the foregoing does not apply, the
last reported bid price of such security in the over-the-counter market on the
electronic bulletin board for such security as reported by Bloomberg, or, if no
bid price is reported for such security by Bloomberg, the average of the bid
prices of all market makers for such security as reported in the "pink sheets"
by the National Quotation Bureau, Inc.  If the Closing Bid Price cannot be
calculated for such security on any of the foregoing bases, the Closing Bid
Price of such security shall be the fair market value as reasonably determined
by an independent investment banking firm selected by Purchaser, and

                                       -2-
<PAGE>

reasonably acceptable to the Company, with the costs of such appraisal to be
borne equally by the Company and Purchaser.

              "CLOSING TRADE PRICE" shall mean, with respect to the Common
Stock, the last sale price reported for the Common Stock on a given Trading Day
on the principal securities exchange or trading market where such security is
listed or traded as reported by the Bloomberg or, if no sale price was reported
on such Trading Day by Bloomberg, the last sale price reported by Bloomberg on
the Trading Day on which such prices were last reported.

              "TRADING DAY" shall mean any day on which the Common Stock is
purchased and sold on the principal securities exchange or market on which the
Common Stock is then listed or traded.

              "TRANSACTION DOCUMENTS" shall have the meaning set forth in
Section 3.2.

2.     REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER.

       Purchaser hereby represents and warrants to the Company and agrees with
the Company that, as of the date of this Agreement and as of the Closing Date:

       2.1    AUTHORIZATION; ENFORCEABILITY. Purchaser is duly and validly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization with full power and authority
to purchase the Securities and to execute and deliver this Agreement, the
Registration Rights Agreement and the other Transaction Documents to which
Purchaser is a party. This Agreement and the Registration Rights Agreement each
constitutes Purchaser's valid and legally binding obligation, enforceable in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency or other laws affecting creditors' rights
generally and to general principles of equity (regardless of whether enforcement
is sought in a proceeding at law or in equity) or public policy.

       2.2    ACCREDITED INVESTOR; PURCHASE AS PRINCIPAL.  Purchaser has
substantial experience in evaluating and investing in private placement
transactions of securities similar to the Securities so that it is capable of
evaluating the merits and risks of its investment in the Securities and has the
capacity to protect its own interests.  Purchaser must bear the economic risk of
this investment indefinitely unless the Securities are registered pursuant to
the Securities Act or an exemption from registration is available.  Purchaser
understands that, except as set forth in this Agreement or the Registration
Rights Agreement, the Company has no present intention of registering the
Securities.  Purchaser also understands that there is no assurance that any
exemption from registration under the Securities Act will be available.
Purchaser is an accredited investor as that term is defined in Rule 501 of
Regulation D, and is acquiring the Securities solely for its own account as a
principal and not with a present view to the public resale or distribution of
all or any part thereof, except pursuant to sales that are exempt from the
registration requirements of the Securities Act and/or sales registered under
the Securities Act; provided, however that in making such representation,
Purchaser does not agree to hold any Securities for any minimum or specific term
and reserves the right to sell, transfer or otherwise dispose of the Securities
at any time in accordance with the provisions of this Agreement and with Federal
and state securities laws applicable to such sale, transfer or disposition.

                                       -3-
<PAGE>

       2.3    INFORMATION.  Purchaser has received and read the Disclosure
Documents (as defined in Section 3.4) and the Company has provided Purchaser
with such other information regarding the business, operations and financial
condition of the Company, and has granted to Purchaser the opportunity to ask
questions of and receive answers from representatives of the Company, its
officers, directors, employees and agents concerning the Company and materials
relating to the terms and conditions of the purchase and sale of the Securities.
Neither such information nor any other investigation conducted by Purchaser or
any of its representatives shall modify, amend or otherwise affect Purchaser's
right to rely on the Company's representations and warranties contained in this
Agreement.

       2.4    LIMITATIONS ON DISPOSITION. Purchaser acknowledges that, except as
provided in the Registration Rights Agreement, the Securities have not been and
are not being registered under the Securities Act and may not be transferred or
resold without registration under the Securities Act or unless pursuant to an
exemption therefrom.

       2.5    LEGEND. Purchaser understands that the certificates representing
the Securities may bear at issuance a restrictive legend in substantially the
following form:

              "The securities represented by this certificate have not been
              registered under the Securities Act of 1933, as amended (the
              "Securities Act"), or the securities laws of any state, and may
              not be offered, sold, pledged or hypothecated unless a
              registration statement under the Securities Act and applicable
              state securities laws shall have become effective with regard
              thereto, or an exemption from registration under such laws is
              available in connection with such offer or sale."

       Notwithstanding the foregoing, it is agreed that, as long as (A) the
resale or transfer (including without limitation a pledge) of such Securities is
registered pursuant to an effective registration statement and Purchaser
represents in writing to the Company that such Securities have been or are being
sold pursuant to such registration statement, (B) such Securities have been
publicly sold pursuant to Rule 144 ("RULE 144") and Purchaser has delivered to
the Company customary Rule 144 broker's and seller's representation letters, or
(C) such Securities can be publicly sold pursuant to Rule 144(k) under the
Securities Act, such Securities shall be issued without any legend or other
restrictive language and, with respect to Securities upon which such legend is
stamped, the Company shall issue new certificates without such legend to the
holder promptly upon request.

       2.6    NO CONFLICT. The execution, delivery and performance by Purchaser
of this Agreement and the other Transaction Documents to which it is a party (A)
have been approved by all necessary action (corporate or other) on the part of
Purchaser and (B) will not result in (i) any material violation of any
provisions of its charter, bylaws or any other governing document in effect on
the date hereof, (ii) any material violation of any instrument or contract to
which it is a party or by which it is bound, or (iii) the creation of any
material lien, charge or encumbrance upon any of its assets.

                                       -4-
<PAGE>

3.     REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY AND ASP.

       The Company and, to the extent applicable, ASP each hereby represents and
warrants to Purchaser and agrees with Purchaser that, as of the date of this
Agreement:

       3.1    ORGANIZATION, GOOD STANDING AND QUALIFICATION.  Each of the
Company and its subsidiaries is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization and has all requisite corporate power and authority to carry on
its business as now conducted. Each of the Company and its subsidiaries is
duly qualified to transact business and is in good standing in each
jurisdiction in which the failure so to qualify would have a material adverse
effect on the consolidated business or financial condition of the Company and
its subsidiaries taken as a whole, except that ASP has filed an application
to qualify to do business in the State of California, which application is
currently pending. For purposes of this Agreement, the term "subsidiary" or
"subsidiaries" shall mean any entity or entities in which the Company
beneficially owns 20% or more of the voting equity thereof.

       3.2    AUTHORIZATION; CONSENTS.  The Company has the requisite corporate
power and authority to enter into and perform its obligations under (i) this
Agreement, (ii) the Registration Rights Agreement, (iii) the Closing Warrant and
(iv) all other agreements, documents or other instruments executed and delivered
by or on behalf of the Company at the Closing (the instruments described in (i),
(ii), (iii) and (iv) being collectively referred to herein as the "TRANSACTION
DOCUMENTS"), to execute and file, and perform its obligations under the
Certificate of Designation, to issue and sell Preferred Shares and Closing
Warrant to Purchaser in accordance with the terms hereof and to issue and
deliver Conversion Shares in accordance with the terms of the Certificate of
Designation and Warrant Shares in accordance with the terms of the Warrants. ASP
has the requisite corporate power and authority to enter into and perform its
obligations under (i) this Agreement, (ii) the Registration Rights Agreement,
(iii) the ASP Warrant and (iv) all other agreements, documents or other
instruments executed and delivered by or on behalf of ASP at the Closing (the
instruments described in (i), (ii), (iii) and (iv) being collectively referred
to herein as the "ASP TRANSACTION DOCUMENTS"), to issue and sell the ASP Warrant
to Purchaser in accordance with the terms hereof and to issue and deliver ASP
Warrant Shares in accordance with the terms of the ASP Warrant. All corporate
action on the part of (i) each of the Company and ASP by its officers, directors
and stockholders necessary for the authorization, execution and delivery of, and
the performance by it of its obligations under, the Transaction Documents or the
ASP Transaction Documents, as the case may be, and (ii) the Company by its
officers, directors and stockholders necessary for the authorization, execution
and filing of, and the performance by the Company of its obligations under, the
Certificate of Designation has been taken, and no further consent or
authorization of the Company, ASP, their respective Board of Directors and
stockholders, any governmental agency or organization (other than such approval
as may be required under the Securities Act and applicable state securities laws
in respect of the Registration Rights Agreement), or any other person or entity
is required (except as may be required by National Association of Securities
Dealers, Inc. Rule 4460(i)).

       3.3    ENFORCEMENT.  Each of the Transaction Documents constitutes a
valid and legally binding obligation of the Company, enforceable in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency or other laws affecting

                                       -5-
<PAGE>

creditors' rights generally and to general principles of equity (regardless
of whether enforcement is sought in a proceeding at law or in equity) or
public policy and except to the extent that the enforceability of the
indemnification provisions of Section 6 of the Registration Rights Agreement
may be limited by applicable law. Each of the ASP Transaction Documents
constitutes a valid and legally binding obligation of ASP, enforceable in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency or other laws affecting creditors' rights
generally and to general principles of equity (regardless of whether
enforcement is sought in a proceeding at law or in equity) or public policy
and except to the extent that the enforceability of the indemnification
provisions of Section 6 of the Registration Rights Agreement may be limited
by applicable law.

       3.4    DISCLOSURE DOCUMENTS; AGREEMENTS; FINANCIAL STATEMENTS; OTHER
INFORMATION.  The Company has filed with the Commission: (i) the Company's
Annual Report on Form 10-K for the year ended June 30, 1999 (ii) Quarterly
Reports on Form 10-Q for the quarters ended September 30, 1999 and December 31,
1999, (iii) all Current Reports on Form 8-K, if any, and any other reports,
required to be filed with the Commission since December 31, 1998 and prior to
the date hereof and (iv) the Company's definitive Proxy Statement for its 1999
Annual Meeting of Stockholders (collectively, the "DISCLOSURE DOCUMENTS"). The
Company is not aware of any event occurring on or prior to the Closing Date
(other than the transactions effected hereby) that would require the filing of,
or with respect to which the Company intends to file, a Form 8-K after such date
other than as previously filed by the Company. Each Disclosure Document, as of
the date of the filing thereof with the Commission, conformed in all material
respects to the requirements of the Securities Exchange Act of 1934, as amended,
and the rules and regulations thereunder (the "EXCHANGE ACT") and, as of the
date of such filing, such Disclosure Document did not contain an untrue
statement of material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. All material
agreements required to be filed as exhibits to the Disclosure Documents have
been filed or incorporated by reference as required by the applicable provisions
of the Exchange Act.  Neither the Company nor any of its subsidiaries is in
breach of any agreement to which it is a party or by which it is bound where
such breach could have, or with the passage of time could reasonably be expected
to have, a material adverse effect on (i) the consolidated business, operations,
properties, financial condition or results of operations of the Company and its
subsidiaries taken as a whole, (ii) the transactions contemplated hereby, by the
other Transaction Documents, by the other ASP Transaction Documents or by the
Certificate of Designation, (iii) the Securities or (iv) the ability of the
Company or ASP to perform its obligations under this Agreement, the other
Transaction Documents, the other ASP Transaction Documents or the Certificate of
Designation (collectively, a "MATERIAL ADVERSE EFFECT"), in each such case as
applicable. Except as set forth in the Disclosure Documents, the Company has no
liabilities, contingent or otherwise, other than liabilities incurred in the
ordinary course of business which, under generally accepted accounting
principles, are not required to be reflected in such financial statements
(including the footnotes to such financial statements) and which, individually
or in the aggregate, are not material to the consolidated business or financial
condition of the Company and its subsidiaries taken as a whole.  As of their
respective dates, the financial statements of the Company included in the
Disclosure Documents have been prepared in accordance with generally accepted
accounting principles consistently applied at the times and during the periods
involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto, or (ii) in the case of unaudited interim statements, to
the extent they

                                       -6-
<PAGE>

may exclude footnotes or may be condensed or summary statements) and fairly
present in all material respects the financial position of the Company as of
the dates thereof and the results of its operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal
year-end adjustments).  The written information described in paragraph 2.3
does not contain an untrue statement of material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

       3.5    CAPITALIZATION.  The capitalization of the Company and of ASP as
of the Closing Date, including its authorized capital stock, the number of
shares issued and outstanding, the number of shares issuable and reserved for
issuance pursuant to the Company's or ASP's stock option plans, the number of
shares issuable and reserved for issuance pursuant to securities (other than the
Preferred Stock and Warrants) exercisable for, or convertible into or
exchangeable for any shares of Common Stock or ASP Common Stock and the number
of shares initially to be reserved for issuance upon conversion and exercise of
the Preferred Stock and Warrants is set forth on SCHEDULE 3.5 hereto.  All of
such outstanding shares of capital stock have been, or upon issuance will be,
validly issued, fully paid and non-assessable. Except as set forth on SCHEDULE
3.5,  no shares of the capital stock of the Company or ASP are subject to
preemptive rights or any other similar rights of the stockholders of the Company
or ASP or any liens or encumbrances created by or through the Company or ASP.
Except as disclosed on SCHEDULE 3.5, or as contemplated herein, there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into or exercisable or exchangeable for, any shares of capital stock
of the Company or any of its subsidiaries, or arrangements by which the Company
or any of its subsidiaries is or may become bound to issue additional shares of
capital stock of the Company or any of its subsidiaries.  The number of shares
of ASP common stock issued and outstanding as of the Closing Date is 20,000,000.

       3.6    VALID ISSUANCE. The Preferred Shares are duly authorized and, when
issued, sold and delivered in accordance with the terms hereof, (i) will be duly
and validly issued, fully paid and nonassessable, free and clear of any taxes,
liens, claims, preemptive or similar rights or encumbrances imposed by or
through the Company (collectively, "ENCUMBRANCES"), (ii) based in part upon the
representations of Purchaser in this Agreement, will be issued, sold and
delivered in compliance with all applicable Federal and state securities laws
and (iii) will be entitled to all of the rights, preferences and privileges set
forth in the Certificate of Designation.  The Warrants are duly authorized and,
when issued, sold and delivered in accordance with the terms hereof, (i) will be
duly and validly issued, fully paid and nonassessable, free and clear of any
Encumbrances and (ii) based in part upon the representations of Purchaser in
this Agreement, will be issued, sold and delivered in compliance with all
applicable Federal and state securities laws. The Conversion Shares are duly
authorized and reserved for issuance and, when issued upon conversion of the
Preferred Shares in accordance with the terms of the Certificate of Designation,
will be duly and validly issued, fully paid and nonassessable, free and clear of
any Encumbrances. The Dividend Shares are duly authorized and reserved for
issuance and, if and when issued in accordance with the terms of the Certificate
of Designation, will be duly and validly issued, fully paid and nonassessable,
free and clear of any Encumbrances. The Warrant Shares are duly authorized and,
upon the issuance thereof in accordance with the terms of a Warrant, will be
duly and validly issued, fully paid and nonassessable, free and clear of any
Encumbrances. The Company's Board of Directors (i) has

                                       -7-
<PAGE>

determined that the issuance and sale of the Preferred Shares and Warrants
hereunder, and the consummation of the transactions contemplated hereby, by
the other Transaction Documents and by the Certificate of Designation
(including without limitation the issuance of the Conversion Shares upon
exercise of the Preferred Shares and the Warrant Shares upon exercise of the
Warrants), are in the best interests of the Company and (ii) has unanimously
approved the issuance of the Preferred Shares and Warrants hereunder, and the
consummation of such transactions. ASP's Board of Directors (i) has
determined that the issuance and sale of the ASP Warrant hereunder, and the
consummation of the transactions contemplated hereby and by the other ASP
Transaction Documents (including without limitation the issuance of the ASP
Warrant Shares upon exercise of the ASP Warrant) are in the best interests of
ASP and (ii) has unanimously approved the issuance of the ASP Warrant
hereunder, and the consummation of such transactions.

       3.7    NO CONFLICT WITH OTHER INSTRUMENTS.  Neither the Company nor any
of its subsidiaries is in violation of any provisions of its charter, bylaws or
any other governing document as amended and in effect on and as of the date
hereof or in default (and no event has occurred which, with notice or lapse of
time or both, would constitute a default) under any provision of any instrument
or contract to which it is a party or by which it is bound, or of any provision
of any Federal, state or foreign judgment, writ, decree, order, statute, rule or
governmental regulation applicable to the Company or any such subsidiary, which
violation or default could reasonably be expected to have a Material Adverse
Effect. The (i) execution, delivery and performance of this Agreement and the
other Transaction Documents, (ii) execution and filing of the Certificate of
Designation and (iii) consummation of the transactions contemplated hereby and
thereby (including without limitation, the issuance of the Preferred Shares and
the Warrants and the reservation for issuance and issuance of the Conversion
Shares and the Warrant Shares) will not, in any such case, result in any such
violation or be in conflict with or constitute, with or without the passage of
time and giving of notice, either a default under any such provision, instrument
or contract or an event which results in the creation of any lien, charge or
encumbrance upon any assets of the Company or of any of its subsidiaries or the
triggering of any preemptive or anti-dilution rights or rights of first refusal
or first offer, or any similar rights (whether pursuant to a "poison pill"
provision or otherwise), on the part of holders of the Company's or any such
subsidiary's securities.

       3.8    FINANCIAL CONDITION; TAXES; LITIGATION.

              3.8.1 The Company's financial condition is, in all material
respects, as described in the Disclosure Documents, except for changes in the
ordinary course of business and normal year-end adjustments that are not, in the
aggregate, materially adverse to the consolidated business or financial
condition of the Company and its subsidiaries taken as a whole.  There has not
been a material adverse change, or any event or circumstance that with the
passage of time could reasonably be expected to result in a material adverse
change, to the Company's business, operations, properties, financial condition
or results of operations since the date of the Company's most recent audited
financial statements contained in the Disclosure Documents.

              3.8.2 The Company has filed all tax returns required to be filed
by it and paid all taxes which are due, except for taxes which it reasonably
disputes or which could not have a Material Adverse Effect.

                                       -8-
<PAGE>

              3.8.3  Neither the Company nor any of its subsidiaries is the
subject of any pending or, to the Company's knowledge, threatened inquiry,
investigation or administrative or legal proceeding by the Internal Revenue
Service, the taxing authorities of any state or local jurisdiction, the
Commission or any state securities commission or other governmental or
regulatory entity which could have a Material Adverse Effect.

              3.8.4  Except as described in the Disclosure Documents, there is
no claim, litigation or administrative proceeding pending, or, to the Company's
knowledge, threatened or contemplated, against the Company or any of its
subsidiaries, or against any officer, director or employee of the Company or any
such subsidiary in connection with such person's employment therewith that,
individually or in the aggregate, could have a Material Adverse Effect.  Neither
the Company nor any of its subsidiaries is a party to or subject to the
provisions of, any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality which could have a Material Adverse Effect.

       3.9    REPORTING COMPANY; FORM S-3.  The Company is subject to the
reporting requirements of the Exchange Act, has a class of securities registered
under Section 12 of the Exchange Act, and has filed all reports required
thereby.  The Company is eligible to register for resale shares of its Common
Stock on a registration statement on Form S-3 under the Securities Act. To the
Company's knowledge, there exist no facts or circumstances (including without
limitation any required approvals or waivers of any circumstances that may delay
or prevent the obtaining of accountant's consents) that would prohibit or delay
the preparation and filing of a registration statement on Form S-3 with respect
to the Registrable Securities (as defined in the Registration Rights Agreement).

       3.10   ACKNOWLEDGEMENT OF DILUTION.  Each of the Company and ASP
acknowledges that the issuance of Conversion Shares or Warrant Shares, as
applicable, may result in dilution of the outstanding shares of Common Stock or
ASP Common Stock (as the case may be), which dilution may be substantial under
certain market conditions.  Each of the Company and ASP further acknowledges
that its obligation (in the case of the Company) to issue Conversion Shares in
accordance with the terms of the Certificate of Designation and Closing Warrant
Shares in accordance with the terms of the Closing Warrant, and (in the case of
ASP) to issue ASP Warrant Shares in accordance with the terms of the ASP
Warrant) is unaffected by any such dilution.

       3.11   INTELLECTUAL PROPERTY. The Company and its subsidiaries each has
the right to use adequate trademarks, trade names and other rights to
inventions, know-how, patents, copyrights, confidential information and other
intellectual property rights necessary to conduct the business now operated by
it, and is not aware of any infringement by a third party with respect to such
rights or of any infringement by it or conflict with asserted rights of others
that, in any such case, if determined adversely to the Company or any of its
subsidiaries, could individually or in the aggregate have a Material Adverse
Effect.

       3.12   REGISTRATION RIGHTS; RIGHTS OF PARTICIPATION.  Except as
described on SCHEDULE 3.12 hereto, (A) neither the Company nor any of its
subsidiaries has granted or agreed to grant to any person or entity any
rights (including "piggy-back" registration rights) to have any securities of
the Company registered with the Commission or any other governmental
authority and (B) no person or

                                       -9-
<PAGE>

entity, including, but not limited to, current or former stockholders of the
Company, underwriters, brokers, agents or other third parties, has any right
of first refusal, preemptive right, right of participation, anti-dilutive
right or any similar right to participate in, or to receive securities of the
Company or any of its subsidiaries or other consideration as a result of, the
transactions contemplated by this Agreement or the other Transaction
Documents which has not been waived or will not be waived or otherwise
satisfied as of the Closing Date.

       3.13   LISTING ON NASDAQ. The Common Stock is listed on the Nasdaq
National Market, and trading in the Common Stock on such market has not been
suspended. The Company is, to its knowledge, in full compliance with the
continued listing criteria of the Nasdaq National Market, and does not
reasonably anticipate that the Common Stock will lose its listing on the Nasdaq
National Market, whether by reason of the transactions contemplated by this
Agreement or the other Transaction Documents, or otherwise and is not aware of
any inquiry by or received any notice from the Nasdaq National Market regarding
any failure or alleged failure by the Company to comply with such criteria.

       3.14   SOLICITATION; OTHER ISSUANCES OF SECURITIES.  Neither the Company
nor any of its subsidiaries or affiliates, nor any person acting on its or their
behalf, (i) has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D) in connection with the offer or
sale of the Securities, (ii) has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under any
circumstances that would require registration of the Securities under the
Securities Act or (iii) has issued any shares of Common Stock or shares of any
series of preferred stock or other securities or instruments convertible into,
exchangeable for or otherwise entitling the holder thereof to acquire shares of
Common Stock which would be integrated with the sale of the Preferred Shares or
Warrants to Purchaser for purposes of the Securities Act or of any applicable
stockholder approval provisions, including, without limitation, under the rules
and regulations of any exchange or automated quotation system on which any of
the securities of the Company are listed or designated. In order to prevent the
possible integration of the offer and sale of the Securities with any offering
effected subsequent to the Closing Date, neither the Company nor any of its
subsidiaries or affiliates will offer or sell any securities during the six (6)
month period following the Closing Date; PROVIDED, HOWEVER, that such limitation
shall not apply to any securities that are offered or sold pursuant to (i) an
employee benefit plan or program duly adopted by the Company; (ii) any options,
warrant, convertible securities or rights or agreements to purchase securities
of the Company outstanding on the date hereof; (iii) any underwritten public
offerings of securities ; (iv) any security issued for consideration other than
cash pursuant to a merger, consolidation, acquisition or similar business
combination; (v) shares of Common Stock issued in connection with any stock
split, stock dividend or recapitalization by the Company; (vi) shares of Common
Stock issued upon conversion of the Preferred Shares or exercise of the Closing
Warrant; (vii) any securities issued pursuant to any equipment leasing
arrangement or debt financing from a bank or similar financial institution; or
(viii) any securities issued in connection with strategic transactions involving
the Company and third parties, including (A) joint ventures, manufacturing,
marketing or distribution arrangements or (B) technology transfer or development
arrangements; provided, that the primary purpose of such transaction is not the
raising of capital.

       3.15   FEES.  Except as described on SCHEDULE 3.15 hereto, neither the
Company nor any of

                                       -10-
<PAGE>

its subsidiaries is obligated to pay any compensation or other fee, cost or
related expenditure to any underwriter, broker, agent or other representative
or entity in connection with the transactions contemplated hereby. The
Company will indemnify and hold harmless Purchaser from and against any claim
by any person or entity alleging that Purchaser is obligated to pay any such
compensation, fee, cost or related expenditure in connection with the
transactions contemplated hereby.

       3.16   REGULATORY PERMITS.  Each of the Company and its subsidiaries
possesses all certificates, authorizations and permits issued by the appropriate
federal, state or foreign regulatory authorities necessary to conduct its
business, except where the failure to so possess such certificates,
authorizations or permits could not have a Material Adverse Effect, and neither
the Company nor any such subsidiary has received any notice of proceedings
relating to the revocation or modification of any such certificate,
authorization or permit which revocation or modification could have a Material
Adverse Effect.

       3.17   KEY EMPLOYEES. Each person whose name is set forth on SCHEDULE
3.17 (each, a "KEY EMPLOYEE") is currently serving in the capacity indicated on
such schedule on a full-time basis (except as otherwise noted in such Schedule).
The Company has no knowledge of any fact or circumstance (including without
limitation (i) the terms of any agreement to which such person is a party or any
litigation in which such person is or may become involved and (ii) any illness
or medical condition that could reasonably be expected to result in the
disability or incapacity of such person) that would limit or prevent any such
person from serving in such capacity on a full-time basis in the foreseeable
future, or of any intention on the part of any such person to limit or terminate
his or her employment with the Company. Except as described on SCHEDULE 3.17, no
Key Employee has borrowed money pursuant to a currently outstanding loan that is
secured by Common Stock or any right or option to receive Common Stock.

       3.18   YEAR 2000.  To the Company's knowledge:  (i) all hardware and
software products used by the Company and its subsidiaries in the administration
and the business operations of the Company and such subsidiaries will be able to
process date data (including, but not limited to, calculating, comparing and
sequencing) in a consistent manner from, into and between the twentieth century
(through 1999), the year 2000 and the twenty-first century, including leap year
calculations, when used in accordance with the product documentation
accompanying such hardware and software products; (ii) all software developed
and currently sold by the Company and any of its subsidiaries (other than third
party software) will be able to process date data (including, but not limited
to, calculating, comparing and sequencing) in a consistent manner from, into and
between the twentieth century (through 1999), the year 2000 and the twenty-first
century, including leap year calculations, when used in accordance with the
product documentation accompanying such software; and (iii) there were no
returns of merchandise or software, or any claims or complaints received from
any third party or customer, relating to any year 2000 problems.

       3.19   ENVIRONMENT.  Except as disclosed in the Disclosure Documents (i)
there is no environmental liability, nor, to the Company's knowledge, factors
likely to give rise to any environmental liability, affecting any of the
properties of the Company or any of its subsidiaries that, individually or in
the aggregate, would have a Material Adverse Effect and

                                       -11-
<PAGE>

(ii) neither the Company nor any of the subsidiaries has violated any
environmental laws applicable to it now or previously in effect
("ENVIRONMENTAL LAWS"), other than such violations or infringements that,
individually or in the aggregate, have not had and will not have a Material
Adverse Effect.

       3.20   EMPLOYEE RELATIONS.  Neither the Company nor any of its
subsidiaries is involved in any union labor dispute nor, to the knowledge of the
Company or any of its subsidiaries, is any such dispute threatened. Neither the
Company nor any of its subsidiaries is a party to a collective bargaining
agreement.  No executive officer of the Company or any of its subsidiaries has
given notice that such officer intends to terminate such officer's employment
with the Company or such subsidiary.  To the Company's knowledge, no executive
officer of the Company or any of its subsidiaries is in violation of any
material term of any employment contract, confidentiality, disclosure or
proprietary information agreement, non-competition agreement, or any other
contract or agreement or any restrictive covenant with the Company.

       3.21   TRANSACTIONS WITH AFFILIATES.  Except for the grant of stock
options disclosed on SCHEDULE 3.5 HERETO, none of the officers, directors, or
employees of the Company is presently a party to any transaction with the
Company or any of its subsidiaries (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any
such officer, director or employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any such officer,
director, or employee has a substantial interest or is an officer, director,
trustee or partner.

       3.22   ANTI-TAKEOVER PROVISIONS. Neither the Company nor any of its
subsidiaries has adopted a shareholder rights plan or similar arrangement
relating to accumulations of beneficial ownership of Common Stock or a change in
control of the Company or any such subsidiary, or any business combination,
poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Certificate of Incorporation or the
laws of the state of Delaware which is or could become applicable as a result of
the transactions contemplated by this Agreement, including, without limitation,
the issuance of the Securities to Purchaser.

4.     COVENANTS OF THE COMPANY.

       4.1    CORPORATE EXISTENCE.  The Company shall, or if there has been a
Change of Control Transaction (as defined in the Certificate of Designation)
following which the Company is not the surviving entity, the surviving entity
shall, so long as Purchaser or any affiliate of Purchaser beneficially owns any
Securities, maintain its corporate existence in good standing under the
jurisdiction of its incorporation and shall pay all taxes owed by it when due
except for taxes which the Company (or such surviving entity) reasonably
disputes.

       4.2    PROVISION OF INFORMATION.  The Company shall, so long as Purchaser
or any affiliate

                                       -12-
<PAGE>

of Purchaser beneficially owns any Securities, provide any Purchaser with
copies of all materials sent to stockholders, in each such case at the same
time that it mails such materials to its stockholders.

       4.3    FORM D; BLUE-SKY QUALIFICATION.  To the extent that the Company
is relying on Regulation D under the Securities Act in selling the Securities
to Purchaser hereunder, the Company agrees to file a Form D with respect to
the Securities as required under Regulation D and to provide a copy thereof,
if requested, to Purchaser promptly after such filing.  The Company shall
take such action as is necessary to qualify the Preferred Shares and Warrants
for sale to Purchaser under applicable state or "blue-sky" laws or obtain an
exemption therefrom, and shall provide evidence of any such action to
Purchaser at Purchaser's request.

       4.4    REPORTING STATUS.  As long as Purchaser or any affiliate of
Purchaser beneficially owns any Securities and until the date on which any of
the foregoing may be sold to the public pursuant to Rule 144(k) (or any
successor rule or regulation), the Company shall, or if there has been a Change
of Control Transaction following which the Company is not the surviving entity,
the surviving entity shall, (i) timely file with the Commission all reports
required to be so filed pursuant to the Exchange Act and (ii) not terminate its
status as an issuer required by the Exchange Act to file reports thereunder even
if the Exchange Act or the rules or regulations thereunder would permit such
termination. The Company agrees to issue a press release describing the
transactions contemplated by this Agreement and the other Transaction Documents
and, at the same time, to file with the Commission a Form 8-K in the form
required by the Exchange Act describing the terms of the transactions
contemplated by this Agreement and the other Transaction Documents, with this
Agreement and all schedules and exhibits attached to such Form 8-K as an exhibit
thereto, on or before the fifth (5th) Business Day following the date of this
Agreement.

       4.5    RESERVATION OF COMMON STOCK.  The Company shall at all times
following the Closing Date have authorized and reserved for issuance to
Purchaser pursuant to the Preferred Shares and the Closing Warrant, free from
any preemptive rights, at least 2,750,000 shares of Common Stock, subject to
adjustment for the events specified in Section 6 of the Certificate of
Designation (the "RESERVED AMOUNT") (assuming (i) application of the minimum
Conversion Price that may occur under the Certificate of Designation and the
minimum Exercise Price that may occur under the Closing Warrant and (ii) that
none of the limitations set forth herein, in the Certificate of Designation
(other than the "Share Limitation" as defined in the Certificate of Designation)
or in the Closing Warrant on such conversion or exercise exist). If on any date
the Reserved Amount is less than 125% of the number of shares of Common Stock
then issuable upon conversion of all of the Preferred Shares and exercise of the
Closing Warrant in full (assuming for such purpose that such conversion or
exercise were to occur as of such date), the Company shall take action
(including without limitation seeking stockholder approval for the authorization
or reservation of additional shares of Common Stock) as soon as practicable (but
in no event later than the fifth (5th) business day or, in the event that
stockholder approval is required, the sixtieth (60th) day following such date)
to increase the Reserved Amount to no less than 150% of the number of shares of
Common Stock into which such outstanding Preferred Shares are then convertible
and the Closing Warrant is exercisable.

       4.6    USE OF PROCEEDS.  The Company shall use the proceeds from the sale
of the Preferred

                                       -13-
<PAGE>

Shares and Closing Warrant for general corporate purposes only, in the
ordinary course of its business, consistent with past practice, and for the
development of the ASP business and, without limiting the generality of the
foregoing, shall not use such proceeds to make a loan to any employee,
officer, director or stockholder of the Company, to repay any loan or other
obligation of the Company to any such person or to repurchase or pay a
dividend on shares of Common Stock or other securities of the Company, other
than any such payment explicitly required or permitted by the terms of this
Agreement, the Certificate of Designation or the other Transaction Documents.

       4.7    QUOTATION ON NASDAQ.  The Company shall, or if there has been a
Change of Control Transaction following which the Company is not the surviving
entity, the surviving entity shall, (i) promptly following the Closing, take
such action as may be necessary to include all of the Conversion Shares and
Closing Warrant Shares that may be issued by the Company (or such surviving
entity) under the Preferred Shares and Closing Warrant on the Nasdaq National
Market, and (ii) use its commercially reasonable efforts to maintain the
designation and quotation, or listing, of the Common Stock on the Nasdaq
National Market or the New York Stock Exchange for a minimum of five (5) years
following the Closing Date.

       4.8    USE OF PURCHASER NAME.  Except as may be required by applicable
law, neither the Company nor any of its subsidiaries shall use, directly or
indirectly, Purchaser's name or the name of any of its affiliates in any
advertisement, announcement, press release or other similar communication unless
it has received the prior written consent of Purchaser for the specific use
contemplated (which consent will not be unreasonably withheld) or as otherwise
required by applicable law or regulation.

       4.9    RIGHT OF FIRST OFFER. Prior to any offer or sale by the Company of
any Equity Securities (as defined below) during the period beginning on the
Closing Date and ending on the twelve (12) month anniversary of the Closing
Date, the Company must first deliver to Purchaser written notice describing the
proposed issuance, including the terms and conditions thereof, and provide
Purchaser with an option during the ten (10) Trading Day period following
delivery of such notice to purchase all or any part of Purchaser's Allocable
Portion (as defined below) of the Equity Securities being offered on the same
terms as contemplated by such issuance (the "RIGHT OF FIRST OFFER").  In the
event that Purchaser either does not give notice within such ten Trading Day
period that it intends to exercise the foregoing option or informs the Company
in writing that it does not intend to participate in all or any part of such
issuance, the Company may offer to a third party the option to purchase up to,
in the aggregate, the amount of Equity Securities which were declined by
Purchaser, on the same terms as were offered to Purchaser. Any sale to Purchaser
must comply with the registration requirements of the Securities Act or be
exempt from such registration requirements.  For purposes hereof, (A) "EQUITY
SECURITY" shall mean Common Stock or any other equity security of the Company or
any of its subsidiaries, or any security convertible into, or exercisable or
exchangeable for, Common Stock or any such equity security and (B) Purchaser's
"ALLOCABLE PORTION" of Equity Securities as of a particular date shall be
determined by dividing the number of Preferred Shares purchased by Purchaser
hereunder by the aggregate number of Preferred Shares purchased by Purchaser
hereunder, and multiplying the resulting quotient by the aggregate amount of
Equity Securities being issued.  "Equity Securities" shall not include and this
Right of First Offer will not apply to the issuance of securities of the Company
or any of its subsidiaries pursuant to (i) an employee benefit plan or program
duly adopted by the Company; (ii) any options,

                                       -14-
<PAGE>

warrant, convertible securities or rights or agreements to purchase
securities of the Company outstanding on the date hereof; (iii) any public
offerings of Equity Securities; (iv) any Equity Security issued for
consideration other than cash pursuant to a merger, consolidation,
acquisition or similar business combination; (v) shares of Common Stock
issued in connection with any stock split, stock dividend or recapitalization
by the Company; (vi) shares of Common Stock issued upon conversion of the
Preferred Shares or exercise of the Closing Warrant; (vii) any Equity
Securities issued pursuant to any equipment leasing arrangement or debt
financing from a bank or similar financial institution; or (viii) any Equity
Securities issued in connection with strategic transactions involving the
Company and other entities, including (A) joint ventures, manufacturing,
marketing or distribution arrangements or (B) technology transfer or
development arrangements; provided, that the primary purpose of such
transaction is not the raising of capital.

       4.10   EXCHANGE OPTION.  In the event that the Company issues any Equity
Securities during the period of eighteen (18) months following the Closing Date
(the "EXCHANGE OPTION PERIOD"), Purchaser shall have the right to exchange all
or any part of the Preferred Shares held by it for such Equity Securities (the
"EXCHANGE OPTION") and, upon exercise of its Exchange Option, shall receive, on
the closing date for such issuance, an amount of such Equity Securities that a
purchaser of such securities would receive upon payment of an amount of cash (or
other applicable consideration) equal to the outstanding stated value of and
accrued but unpaid dividends on such Preferred Shares being exchanged by
Purchaser. The Company agrees that it will not issue Equity Securities during
the Exchange Option Period unless it first gives Purchaser at least twenty (20)
days' prior written notice thereof (a "NOTICE OF ISSUANCE").  In order for
Purchaser to exercise its Exchange Option, Purchaser must deliver written notice
thereof to the Company on or before the fifth (5th) Business Day following its
receipt of a Notice of Issuance.

       4.11   MANAGEMENT RESTRICTIONS. During the period beginning on the
Closing Date and ending on the later to occur of (i) the one hundred and
eightieth (180th) day following the Closing Date and (ii) the date on which
the Registration Statement (as defined in the Registration Rights Agreement)
is declared effective by the Commission (the "MANAGEMENT RESTRICTION
PERIOD"), no Key Employee may, directly or indirectly, sell, transfer or
otherwise dispose of (whether through the writing or purchase of options,
futures or derivative instruments), or publicly announce (whether through the
filing of a notice or otherwise) such individual's intention to dispose of,
any Common Stock held or beneficially owned by such individual.
Notwithstanding the foregoing, a Key Employee may sell shares of Common Stock
during the Management Restriction Period (A) in order to meet the applicable
margin requirements of any broker-dealer from which such Key Employee has
obtained margin credit and (B) in a number that, in the aggregate during the
Management Restriction Period, does not exceed ten percent (10%) of the
number of shares of Common Stock beneficially owned by such Key Employee on
the Closing Date.

       4.12   STOCKHOLDER APPROVAL.  The Company agrees that, at its next annual
meeting of stockholders, it will recommend to the holders of its Common Stock
approval of the issuance of Conversion Shares and Warrant Shares in excess of
the Cap Amount (as defined in the Certificate of Designation) ("STOCKHOLDER
APPROVAL"), and will hold such meeting on or before December 31, 2000.  In the
event that the Company does not obtain Stockholder Approval on or before such
date, Purchaser shall have the right to demand at any time thereafter that the
Company hold a meeting of its stockholders for the purpose of seeking
Stockholder Approval, such meeting to be held no later

                                       -15-
<PAGE>

than the sixtieth (60th) day following receipt by the Company of such demand
in writing.

       4.13   ENVIRONMENTAL LAWS.  The Company will take all action necessary in
order to comply with applicable Environmental Laws and agrees to indemnify
Purchaser from and against any loss, claim, damage or expense arising from or in
connection with any failure or alleged failure of the Company, or any of  its
subsidiaries or affiliates, to comply with such laws.

4A.    COVENANTS OF ASP.

       4A.1   CORPORATE EXISTENCE.  ASP shall, so long as Purchaser or any
affiliate of Purchaser beneficially owns the ASP Warrant or any ASP Warrant
Shares, maintain its corporate existence in good standing under the jurisdiction
of its incorporation and shall pay all taxes owed by it when due except for
taxes which ASP reasonably disputes.

       4A.2   PROVISION OF INFORMATION.  ASP shall, so long as Purchaser or any
affiliate of Purchaser beneficially owns the ASP Warrant or any ASP Warrant
Shares, provide Purchaser with copies of all materials sent to its stockholders,
in each such case at the same time that it mails such materials to its
stockholders.

       4A.3   FORM D; BLUE-SKY QUALIFICATION.  To the extent that ASP is relying
on Regulation D under the Securities Act in selling the ASP Warrant to Purchaser
hereunder, ASP agrees to file a Form D with respect to the ASP Warrant as
required under Regulation D and to provide a copy thereof to Purchaser promptly
after such filing.  Promptly following the Initial Public Offering, ASP shall
take such action as is necessary to qualify ASP Warrant for sale under
applicable state or "blue-sky" laws or obtain an exemption therefrom, and shall
provide evidence of any such action to Purchaser at Purchaser's request.

       4A.4   REPORTING STATUS.  Following the Initial Public Offering, and as
long as Purchaser or any affiliate of Purchaser beneficially owns the ASP
Warrant or any ASP Warrant Shares and until the date on which any of the
foregoing may be sold to the public pursuant to Rule 144(k) (or any successor
rule or regulation), (i) ASP shall timely file with the Commission all reports
required to be so filed pursuant to the Exchange Act and (ii) ASP shall not
terminate its status as an issuer required by the Exchange Act to file reports
thereunder even if the Exchange Act or the rules or regulations thereunder would
permit such termination.

       4A.5   RESERVATION OF ASP COMMON STOCK.  ASP shall at all times following
the Closing Date have authorized and reserved for issuance to Purchaser pursuant
to the ASP Warrant, free from any preemptive rights, a number of shares of
Common Stock equal to the number of ASP Warrant Shares issuable upon exercise in
full of the ASP Warrant (assuming that none of the limitations set forth in the
ASP Warrant on such exercise exist) (the "SUBSIDIARY RESERVED AMOUNT"). ASP
shall not reduce the ASP Reserved Amount without Purchaser's prior written
consent.

       4A.6   QUOTATION ON NASDAQ NATIONAL MARKET.  ASP shall (i) promptly
following the Initial Public Offering , take such action as may be necessary
to include all of ASP Warrant Shares that may be issued under the ASP Warrant
for designation and quotation on the Nasdaq National Market and (ii) use its
commercially reasonable

                                      -16-
<PAGE>

efforts to maintain the designation and quotation, OR listing, of the ASP
Common Stock on the Nasdaq National Market or the New York Stock Exchange for
a minimum of five (5) years following the Closing Date.

       4A.7   USE OF PURCHASER NAME.  Except as may be required by applicable
law, ASP shall not use, directly or indirectly, Purchaser's name or the name of
any of its affiliates in any advertisement, announcement, press release or other
similar communication unless it has received the prior written consent of
Purchaser for the specific use contemplated (which consent will not be
unreasonably withheld) or as otherwise required by applicable law or regulation.

       4A.8   NO ADVERSE ACTION. ASP shall refrain, while the ASP Warrant is
outstanding, from taking any action or entering into any arrangement which in
any way adversely affects the rights, privileges or benefits available to the
holder of the ASP Warrant.

       4A.9   EXCHANGE OPTION.  If on any day following the Initial Public
Offering, the average dollar daily trading volume (as reported by Bloomberg)
for the Common Stock of the Company during the period of ninety (90) days
immediately preceding such day is less than $1,250,000, Purchaser shall have
the option, upon written notice to the Company and to ASP (an "EXCHANGE
NOTICE"), to exchange all or any portion of the Preferred Shares then held by
purchaser for shares of the preferred stock of ASP (the "ASP Preferred
Shares"). Upon delivery of an Exchange Notice by Purchaser, Purchaser shall
be entitled to receive one ASP Preferred Share for each Preferred Share to be
exchanged therefor. The certificate of designation relating to the ASP
Preferred Shares (the "ASP CERTIFICATE") shall have terms identical to those
set forth in the Certificate of Designation, MUTATIS MUTANDIS, including
without limitation terms relating to the conversion of the ASP Preferred
Shares into ASP Common Stock, except that (i) the Fixed Conversion Price
shall be equal to 120% of the Market Price for the ASP Common Stock on the
Exchange Date (as defined below); (ii) the maturity date of the ASP Preferred
Shares shall be two (2) years from the Exchange Date (as defined below); and
(iii) dividends payable thereunder shall include any dividends that have
accrued but have not been paid under the Preferred Shares as of the Exchange
Date.  Within two (2) Business Days after Purchaser delivers an Exchange
Notice to the Company (an "EXCHANGE NOTICE DATE"), and assuming the ASP
Certificate has not previously been prepared and filed, ASP shall prepare the
ASP Certificate and file it with the State of Delaware. ASP will issue and
deliver the ASP Preferred Shares to Purchaser on the Business Day following
the filing of the ASP Certificate, against delivery of the Preferred Shares
being exchanged therefor (such Business Day being referred to as the
"EXCHANGE DATE"). Immediately following ASP's receipt of the Preferred Shares
being exchanged hereby and delivery of the ASP Preferred Shares, the Company
will retire such Preferred Shares so that they will not be issued and
outstanding.

5.  CONDITIONS TO CLOSING.

       5.1    CONDITIONS TO PURCHASER'S OBLIGATIONS AT CLOSING. Purchaser's
obligations at the Closing, including without limitation its obligation to
purchase the Preferred Shares and Warrants being purchased by such Purchaser,
are conditioned upon the satisfaction by the Company (or

                                       -17-
<PAGE>

waiver by Purchaser) of each of the following events as of the Closing Date:

              5.1.1  the respective representations and warranties of the
                     Company and ASP set forth in this Agreement shall be true
                     and correct in all material respects as of such date as if
                     made on such date;

              5.1.2  the Company and ASP each shall have complied with or
                     performed in all material respects all of the agreements,
                     obligations and conditions set forth in this Agreement that
                     are required to be complied with or performed by the
                     Company on or before the Closing;

              5.1.3  the Closing Date shall occur, and all closing conditions
                     set forth in this paragraph 5.1 shall have been satisfied
                     or waived, on a date that is not later than March 8, 2000;

              5.1.4  the Company shall have delivered to Purchaser a
                     certificate, signed by an officer of the Company,
                     certifying that the conditions specified in this paragraph
                     5.1 have been fulfilled as of the Closing, it being
                     understood that Purchaser may rely on such certificate as
                     though it were a representation and warranty of the Company
                     made herein;

              5.1.5  the Company shall have delivered to Purchaser an opinion of
                     counsel for the Company, dated as of such date, in
                     substantially the form set forth on Exhibit 5.1.5 hereto;

              5.1.6  the Company shall have delivered to Purchaser duly executed
                     certificates representing the Preferred Shares and Warrants
                     being purchased by Purchaser;

              5.1.7  the Company and ASP shall each have executed and delivered
                     the Registration Rights Agreement;

              5.1.8  the Common Stock shall be listed for trading on the Nasdaq
                     National Market and no suspension of trading in the Common
                     Stock on such market shall have occurred and be continuing
                     as of the Closing Date;

              5.1.9  each of the Company and ASP shall have authorized and
                     reserved for issuance the number of shares of Common Stock
                     and ASP Common Stock, as applicable, required to be
                     reserved under paragraphs 4.5  and 4A.5 hereof, and shall
                     have provided Purchaser with reasonable evidence thereof;

              5.1.10 since the date of this Agreement and until the Closing Date
                     there shall not have occurred, in the reasonable judgment
                     of Purchaser, a material adverse change, or any event or
                     circumstance that with the

                                       -18-
<PAGE>

                     passage of time could reasonably be expected to result
                     in a material adverse change, in the business,
                     operations, financial condition, properties or results
                     of operation of the Company; and

              5.1.11 the Company shall have delivered to Purchaser proposed
                     "final" drafts of each Schedule to this Agreement, together
                     with a proposed "final draft" of the opinion required by
                     5.1.5, no later than the close of business on the third
                     (3rd) Business Day immediately prior to the Closing Date.

       5.2    CONDITIONS TO COMPANY'S OBLIGATIONS AT THE CLOSING.  The Company's
obligations at the Closing are conditioned upon the satisfaction (or waiver by
the Company) of each of the following events as of the Closing Date:

              5.2.1  the representations and warranties of Purchaser shall be
                     true and correct in all material respects as of such date
                     as if made on such date; and

              5.2.2  Purchaser shall have complied with or performed in all
                     material respects all of the agreements, obligations and
                     conditions set forth in this Agreement that are required to
                     be complied with or performed by Purchaser on or before the
                     Closing.

              5.2.3  Purchaser shall have tendered payment for the Purchase
                     Price of the Preferred Shares.

6.     MISCELLANEOUS.

       6.1    SURVIVAL.  The representations and warranties made by the parties
herein shall survive the Closing notwithstanding any due diligence investigation
made by or on behalf of the party seeking to rely thereon.  In the event that
any provision of this Agreement becomes or is declared by a court of competent
jurisdiction to be illegal, unenforceable or void, this Agreement shall continue
in full force and effect without said provision; provided that in such case the
parties shall negotiate in good faith to replace such provision with a new
provision which is not illegal, unenforceable or void, as long as such new
provision does not materially change the economic benefits of this Agreement to
the parties.

       6.2    SUCCESSORS AND ASSIGNS.  The terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
successors and permitted assigns of the parties.  Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and permitted assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.  Purchaser may assign its rights
and obligations hereunder, in connection with any private sale or transfer of
Securities pursuant to Section 2.4, as long as, as a condition precedent to such
transfer, the transferee executes an acknowledgment agreeing to be bound by the
applicable provisions of this Agreement, in which case the term "Purchaser"
shall be deemed to refer to such

                                       -19-
<PAGE>

transferee as though such transferee were an original signatory hereto;
PROVIDED, HOWEVER, that such transferee shall not be deemed a "Purchaser" for
purposes of paragraph 4.9 or 4.10 hereof. Neither the Company nor ASP may
assign it rights or obligations under this Agreement except as may be
specifically provided by this Agreement or the other Transaction Documents.

       6.3    NO RELIANCE.  Each party acknowledges that (i) it has such
knowledge in business and financial matters as to be fully capable of evaluating
this Agreement, the other Transaction Documents and the transactions
contemplated hereby and thereby, (ii) it is not relying on any advice or
representation of the other party in connection with entering into this
Agreement, the other Transaction Documents or such transactions (other than the
representations made in this Agreement or the other Transaction Documents),
(iii) it has not received from such party any assurance or guarantee as to the
merits (whether legal, regulatory, tax, financial or otherwise) of entering into
this Agreement or the other Transaction Documents or the performance of its
obligations hereunder and thereunder, and (iv) it has consulted with its own
legal, regulatory, tax, business, investment, financial and accounting advisors
to the extent that it has deemed necessary, and has entered into this Agreement
and the other Transaction Documents based on its own independent judgment and on
the advice of its advisors as it has deemed necessary, and not on any view
(whether written or oral) expressed by such party.

       6.4    INJUNCTIVE RELIEF.  Each of the Company and ASP acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to
Purchaser and that the remedy or remedies at law for any such breach will be
inadequate and agrees, in the event of any such breach, in addition to all other
available remedies, to an injunction restraining any breach and requiring
immediate and specific performance of such obligations without the necessity of
showing economic loss.  In connection with any proceedings brought by Purchaser
for the purpose of enforcing its rights hereunder (including any proceedings
brought at law or in equity), Purchaser shall, if it prevails in such
proceeding, be entitled to reimbursement of its reasonable legal fees and
expenses incurred by it.

       6.5    GOVERNING LAW; JURISDICTION.  This Agreement shall be governed by
and construed under the laws of the State of Delaware without regard to the
conflict of laws provisions thereof. Each party hereby irrevocably submits to
the non-exclusive jurisdiction of the state and federal courts sitting in the
county of New Castle, Delaware, for the adjudication of any dispute hereunder or
under any Transaction Document or the Certificate of Designation or in
connection herewith or therewith or with any transaction contemplated hereby or
thereby or discussed herein or therein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper.  Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof (certified or registered
mail, return receipt requested) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof.  Nothing contained
herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law.

       6.6    COUNTERPARTS.  This Agreement may be executed in any number of

                                       -20-
<PAGE>

counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

       6.7    HEADINGS; DRAFTING.  The headings used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.  The parties shall be deemed to have participated
jointly in the drafting of this Agreement and the other Transaction Documents,
and no provision hereof or thereof shall be construed against any party as the
drafter thereof.

       6.8    NOTICES.  Any notice, demand or request required or permitted to
be given by any party to any other party pursuant to the terms of this Agreement
shall be in writing and shall be deemed given (i) when delivered personally or
by verifiable facsimile transmission (with an original to follow) on or before
5:00 p.m., eastern time, on a Business Day or, if such day is not a Business
Day, on the next succeeding Business Day, (ii) on the next Business Day after
timely delivery to a nationally-recognized overnight courier and (iii) on the
Business Day actually received if deposited in the U.S. mail (certified or
registered mail, return receipt requested, postage prepaid), addressed to the
parties as follows:

              IF TO THE COMPANY OR ASP:

              Aspeon, Inc.
              17891 Cartwright Road
              Irvine, California 92614
              Tel:   (949) 440-8000
              Fax:   (949) 440-8088
              Attention:  Chief Financial Officer

              WITH A COPY TO:

              Cooley Godward, LLP
              4365 Executive Drive
              Suite 1100
              San Diego, California  92121-2128
              Attention:  Jeremy D. Glaser, Esq.
              Tel:   (858) 550-6000
              Fax:   (858) 453-3555

              IF TO PURCHASER:

              Marshall Capital Management, Inc.
              c/o Credit Suisse First Boston
              11 Madison Avenue, 7th Floor
              New York, New York  10010
              Attention:  Allan Weine, Charles Gassenheimer
              Tel:   (212) 325-0038

                                       -21-
<PAGE>

                     (312) 750-3239
              Fax:   (212) 325-6519
                     (312) 750-1031

              WITH A COPY TO:

              Solomon, Zauderer, Ellenhorn, Frischer & Sharp
              45 Rockefeller Plaza
              New York, New York 10111
              Attention:  Robert L. Mazzeo, Esq.
              Tel:   (212) 956-3700
              Fax:   (212) 956-4068

or to such other address or addresses as shall be designated by either party in
writing to the other party.

              6.9    EXPENSES.  The Company, ASP and Purchaser each shall pay
all costs and expenses that it incurs in connection with the negotiation,
execution, delivery and performance of this Agreement and the transactions
contemplated hereby; PROVIDED, HOWEVER, that the Company shall reimburse
Purchaser at the Closing (which reimbursement may be deducted by Purchaser
from the purchase price payable by it at the Closing) for all reasonable
out-of-pocket expenses (including without limitation reasonable legal fees
and expenses) incurred by it in connection with its due diligence
investigation of the Company and the negotiation, preparation, execution,
delivery and performance of the Transaction Documents, the ASP Transaction
Documents and the Certificate of Designation in an amount not to exceed forty
thousand dollars ($40,000).

              6.10   ENTIRE AGREEMENT; AMENDMENTS; WAIVER.  This Agreement, the
other Transaction Documents (including the other ASP Transaction Documents) and
the Certificate of Designation constitute the entire agreement between the
parties with regard to the subject matter hereof and thereof, superseding all
prior agreements or understandings, whether written or oral, between or among
the parties.  Except as expressly provided herein, neither this Agreement nor
any term hereof may be amended except pursuant to a written instrument executed
by the Company, ASP and Purchaser.

                    [Remainder of Page Intentionally Left Blank]

                                       -22-
<PAGE>

       IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first-above written.

ASPEON, INC.

By: __________________________
       Name:  Richard P. Stack
       Title:  Chief Executive Officer

ASPEON SOLUTIONS, INC.

By: __________________________
       Name:  Richard P. Stack
       Title:  Chief Executive Officer

MARSHALL CAPITAL MANAGEMENT, INC.

By: __________________________
         Allan Weine, President

                                       -23-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]