Document:

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                                                                    EXHIBIT 4.35

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                          SECURITIES PURCHASE AGREEMENT

                          dated as of March 14, 2000

                                      among

                                  WAM!NET INC.

                                       AND

                             CERBERUS PARTNERS, L.P.

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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

Section 1. Authorization......................................................1

Section 2. Closing............................................................1

Section 3. Sale and Purchase of Shares........................................1
      3.1. Shares.............................................................1

Section 4. Representations and Warranties of the Corporation..................2
      4.1. Organization; Subsidiaries.........................................2
      4.2. Qualification; Good Standing.......................................3
      4.3. Corporate Authorization; Enforceability............................3
      4.4. No Conflict........................................................3
      4.5. Capitalization.....................................................3
      4.6. Securities Laws; Applicable Corporation Laws.......................6
      4.7. Financial Information..............................................6
      4.8. Absence of Changes.................................................6
      4.9. Reserved...........................................................8
     4.10. Agreements.........................................................8
     4.11. Title to Assets...................................................10
     4.12. Real Property.....................................................10
     4.13. Intellectual Property Rights; Proprietary Information of
           Third Parties.....................................................10
     4.14. Compliance with Laws; Governmental Authorizations.................12
     4.15. Litigation........................................................12
     4.16. Environmental Matters.............................................12
     4.17. Tax Matters.......................................................13
     4.18. Employee Benefit Plans and Employment Matters.....................13
     4.19. Insurance.........................................................15
     4.20. Related Transactions..............................................15
     4.21. Offering of the Shares............................................15
     4.22. Disclosure........................................................15
     4.23. Reserved..........................................................16
     4.24. Reserved..........................................................16
     4.25. Brokers and Finders...............................................16
     4.26. Year 2000 Compliance..............................................16
     4.27. Reserved..........................................................16

Section 5. Representations and Warranties of the Purchaser...................17
      5.1. Due Authorization.................................................17
      5.2. Investment Representations........................................17
      5.3. Brokers and Finders...............................................18
      5.4. Investor Sophistication...........................................18
      5.5. Reserved..........................................................18

Section 6. Covenants of the Corporation and the Purchaser....................18

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      6.1. Regulatory Approvals; Reasonable Best Efforts;
           Further Assurances................................................18
      6.2. Certain Filings...................................................18
      6.3. Confidentiality...................................................19
      6.4. Public Announcements..............................................19

Section 7. Covenants of the Corporation......................................19
      7.1. Certificate of Designation........................................19
      7.2. Restrictions Pending the Closing..................................20
      7.3. Reservation of Shares.............................................20
      7.4. Use of Proceeds...................................................20
      7.5. Access to Records.................................................20
      7.6. Reserved..........................................................20
      7.7. Financial Reporting and other Information.........................20
      7.8. Payment of Obligations............................................21
      7.9. Insurance.........................................................22
     7.10. Certain Notices...................................................22
     7.11. Conduct of Business...............................................22
     7.12. Related Transactions..............................................22
     7.13. Internal Controls.................................................22
     7.14. Board Designees...................................................23
     7.15. Reserved..........................................................24
     7.16. Purchaser Lock-Up.................................................24
     7.17. Tag-Along Agreements..............................................24
     7.18. Consents..........................................................24

Section 8. Registration Rights of the Purchaser..............................24
      8.1. Demand Registration...............................................24
      8.2. "Piggy-Back" Registration.........................................25
      8.3. General Terms.....................................................26
      8.4. Underwriting Agreement............................................27
      8.5. Road Show.........................................................27
      8.6. Reserved..........................................................27

Section 9. Conditions to Each Closing........................................27
      9.1. Conditions of Each Party..........................................27
      9.2. Conditions to Obligations of the Purchaser........................28
      9.3. Conditions to Obligations of the Corporation......................29

Section 10. Termination......................................................29
      10.1. Effect of Termination............................................30

Section 11. Miscellaneous....................................................30
      11.1. Survival.........................................................30
      11.2. Indemnification..................................................30
      11.3. Nominee; Benefits................................................31
      11.4. Assignment; Parties in Interest..................................32
      11.5. Entire Agreement.................................................32
      11.6. Notices..........................................................32

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      11.7. Amendments.......................................................33
      11.8. Counterparts.....................................................33
      11.9. Headings.........................................................33
     11.10. Governing Law....................................................33
     11.11. Jurisdiction.....................................................33
     11.12. No Waiver........................................................34
     11.13. Binding Effect...................................................34
     11.14. Cumulative Powers................................................34

INDEX........................................................................38

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     SECURITIES PURCHASE AGREEMENT, dated as of March 14, 2000, by and between
WAM!NET INC., a Minnesota corporation (the "Corporation"), and Cerberus
Partners, L.P., a Delaware Limited Partnership ("Purchaser").

     WHEREAS, the Corporation desires to sell to Purchaser 15,000 shares (the
"Shares") of its Class E Convertible Preferred Stock, $.01 par value (the "Class
E Preferred Stock"), and Purchaser desires to purchase the Shares from the
Corporation upon the terms and subject to the conditions set forth below.

     NOW THEREFORE, the parties hereto agree as follows:

Section 1. Authorization.

     The Corporation has authorized the issuance and sale, upon the terms and
subject to the conditions set forth in this Agreement, of the Shares for a
purchase price of $1000.00 per Share ("Per Share Price") or $15,000,000 million
in the aggregate (the "Purchase Price"). The powers, designations, preferences
and relative, participating, optional or other rights, and the qualifications,
limitations, and restrictions of the Class E Preferred Stock are set forth in
the Statement of Rights and Preferences of Class E Preferred Stock ("Class E
Certificate of Designation") attached hereto as Exhibit A.

Section 2. Closing.

     Unless this Agreement shall have been terminated and the transactions
herein contemplated shall have been abandoned in accordance with this Agreement,
the closing of the sale and purchase of the Shares and the other transactions
contemplated hereby (the "Closing") shall be held at 10:00 a.m. on the date
which is the third business day after the conditions in Section 9 have been
satisfied or waived (other than those of such conditions which are customarily
satisfied at a closing), at the office of Willkie Farr & Gallagher, 787 Seventh
Avenue, New York, New York 10019 (or at such other time, date and place as the
parties may mutually agree). The date on which the Closing actually occurs is
hereinafter referred to as the "Closing Date."

Section 3. Sale and Purchase of Shares.

     3.1. Shares.

     At the Closing, the Corporation shall issue, sell and deliver to Purchaser
15,000 Shares of Class E Preferred Stock and Purchaser shall deliver to the
Corporation, as full payment therefor, the Purchase Price in cash by wire
transfer of immediately available funds to such bank account or bank accounts
designated by the Corporation.

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Section 4. Representations and Warranties of the Corporation.

     The Corporation hereby represents and warrants to the Purchaser as of the
date hereof and as of the Closing Date that:

     4.1. Organization; Subsidiaries.

          (a) Organization. The Corporation and each Subsidiary (as defined
     below) is a corporation duly organized and validly existing under the laws
     of the jurisdiction of its incorporation and has all requisite corporate
     power and authority to own, lease and operate the assets used in its
     business, to carry on its business as presently conducted, to enter into
     the Documents (as hereinafter defined), to perform its obligations
     thereunder, and to consummate the transactions contemplated thereby.
     Attached as Schedule 4.1(a) are correct and complete copies of the Articles
     of Incorporation of the Corporation including all amendments and
     certificates of Designation, and the By-laws of the Corporation and each
     Subsidiary, each as in effect on the date hereof (collectively, the
     "Organizational Documents"). No amendments, revisions or waivers of any
     provisions of any Organizational Documents have occurred, are in the
     process of occurring or otherwise have been requested. For purposes of this
     Agreement, "Documents" collectively means (i) this Agreement and (ii) the
     Class E Certificate of Designation.

          (b) Subsidiaries. Set forth on Schedule 4.1(b) hereto is a complete
     list of all of the subsidiaries of the Corporation (each a "Subsidiary").
     Except as set forth on Schedule 4.1(b) hereto, the Corporation does not
     own, directly or indirectly, any capital stock or other equity securities
     of any corporation, nor does the Corporation have any direct or indirect
     ownership interest, including interests in partnerships and joint ventures,
     in any other entity or business and there are no agreements to acquire such
     interests. Each Subsidiary has been duly organized, is validly existing and
     in good standing under the laws of its respective jurisdiction of
     incorporation and is duly qualified and in good standing as a foreign
     corporation, and is authorized to do business, in all jurisdictions in
     which the character of its properties or the nature of its businesses
     requires such qualification or authorization, except for qualifications and
     authorizations the lack of which, individually or in the aggregate, would
     not reasonably be expected to result in a material adverse effect upon the
     business, prospects, properties, liabilities, assets, operations, results
     of operations, condition (financial or otherwise), or affairs of the
     Corporation or result in the loss from employment of any Principal
     Executive Officer as such term is defined on Schedule I (a "Material
     Adverse Effect"). Each Subsidiary has the requisite power and authority to
     own and hold its properties and to carry on its business as now being
     conducted. Except as disclosed on Schedule 4.1(b) hereto: (i) all of the
     outstanding shares of capital stock of each Subsidiary are owned
     beneficially and of record by the Corporation, another Subsidiary or any
     combination thereof, in each case free and clear of any liens, charges,
     restrictions, claims or encumbrances other than restrictions on transfer
     imposed by the Securities Act of 1933, as amended (the "Securities Act");
     and (ii) there are no outstanding subscriptions, warrants, options,
     convertible securities or other rights (contingent or other) pursuant to
     which any Subsidiary is or may become obligated to issue any shares of its
     capital stock to any person other than the Corporation or a Subsidiary.

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     4.2. Qualification; Good Standing.

     Each of the Corporation and every Subsidiary is authorized to do business
and is in good standing as a foreign corporation in each jurisdiction the laws
of which require such respective entity to be so authorized, except where the
failure to be so qualified or in good standing could not reasonably be expected
to have a Material Adverse Effect.

     4.3. Corporate Authorization; Enforceability.

     The Corporation has taken all corporate action necessary to authorize its
execution and delivery of the Documents, the performance of its obligations
thereunder, and its consummation of the transactions contemplated thereby. Each
Document has been executed and delivered by an officer of the Corporation in
accordance with such authorization. Each Document constitutes a valid and
binding obligation of the Corporation, enforceable in accordance with its terms,
subject to applicable bankruptcy, reorganization, fraudulent conveyance,
insolvency, moratorium, and similar laws now or hereafter in effect affecting
creditors' rights generally and to general principles of equity.

     4.4. No Conflict.

     The execution and delivery by the Corporation of the Documents, its
consummation of the transactions contemplated thereby, and its compliance with
the provisions thereof, will not other than in instances which could not
reasonably be expected to have a Material Adverse Effect, (i) violate or
conflict with any of the Organizational Documents, (ii) violate, conflict with,
result in a breach of, constitute a default under, or give rise to any right of
termination, cancellation, or acceleration (with or without notice or lapse of
time, or both) under any agreement, lease, security, license, permit, or
instrument to which the Corporation or any Subsidiary is a party, or to which it
or any of them or any of their respective assets or businesses are subject,
(iii) result in the imposition of any Encumbrance (as hereinafter defined) on
any asset of the Corporation, (iv) violate or conflict with any Laws applicable
to the Corporation or its properties or assets, or (v) require any consent,
approval or other action of, notice to, or filing with any entity or person
(governmental or private), except for the filing of the Class E Certificate of
Designations and those that have been obtained or made. For purposes of this
Agreement, "Encumbrance" means any security interest, mortgage, lien, pledge,
charge, easement, reservation, clouds, equities, rights of way, options, rights
of first refusal and any other encumbrances, whether or not relating to the
extension of credit or the borrowing of money. For purposes of this Agreement,
"Laws" means all laws, statutes, rules, regulations, ordinances, bylaws, writs,
Permits, Orders and other legislative, administrative or judicial restrictions.

     4.5. Capitalization.

          (a) Capitalization.

               (i) As of the date hereof, the authorized capital stock of the
          Corporation consists of 500,000,000 shares, the Designation and
          classes of which are set

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          forth on Schedule 4.5(a) hereto. The Corporation does not hold any of
          its shares in treasury.

               (ii) As of the date hereof, 9,494,797 shares of the Corporation's
          common stock, par value $.01 per share ("Common Stock"), 115,206
          shares of the Corporation's Class A Preferred Stock par value $10.00
          per share (the "Class A Preferred Stock"), 5,710,425 shares of the
          Corporation's Class B Preferred Stock par value $.01 per share (the
          "Class B Preferred Stock"), 878,527 shares of the Corporation's Class
          C Preferred Stock, par value $.01 per share (the "Class C Preferred
          Stock"), and 2,196,317 shares of the Corporation's Class D Preferred
          Stock, par value $.01 per share (the "Class D Preferred Stock") are
          issued and outstanding and have been validly issued and are fully paid
          and nonassessable and are not subject to preemptive rights. Except as
          set forth herein, there are no other shares of capital stock of the
          Corporation outstanding. As of the date hereof, the Class B Preferred
          Stock, Class C Preferred Stock and Class D Preferred Stock are
          convertible into 5,710,425, 878,527 and 2,196,317 shares of Common
          Stock, respectively. The Corporation has also entered into an
          agreement, dated as of December 31, 1999, with Winstar Communications,
          Inc. with respect to the sale of 50,000 shares of the Class E
          Preferred Stock, and an option to acquire an additional 50,000 shares
          of the Class E Preferred Stock. The Shares of Class E Preferred Stock
          to be sold pursuant to this Agreement constitute 15,000 of the shares
          underlying the option. The 100,000 shares of Class E Preferred Stock
          subject to sale are convertible into 19,379,844 shares of Common
          Stock, representing an initial conversion price of $5.16 per share of
          Common Stock (or 143.8 shares of Common Stock per share of Class E
          Preferred Stock). Upon issuance of the Common Stock underlying such
          preferred shares, in accordance with their respective Certificates of
          Designation, such Common Stock will be validly issued, fully paid and
          non-assessable.

          (b) Options, Warrants, Convertible Securities. Except as set forth on
     Schedule 4.5(a) hereto, as of the date hereof there are no outstanding
     subscriptions, options, warrants or other agreements or rights of any kind
     to acquire any additional shares of capital stock of the Corporation or
     other instruments or securities convertible into or exchangeable for, or
     which otherwise confer on the holder thereof any right to acquire, any such
     additional shares of capital stock, nor is the Corporation or any
     Subsidiary committed to issue any such option, warrant, right or security.
     Except as set forth on Schedule 4.5(b) hereto, the Corporation has no
     obligation (contingent or other) to purchase, redeem or otherwise acquire
     any of its equity securities or any interest therein or to pay any dividend
     or make any other distribution in respect thereof. Schedule 4.5(a)
     additionally sets forth (i) all of the outstanding warrants of the
     Corporation, specifying the exercise prices and periods of such warrants
     and amount of Common Stock issuable upon exercise of such warrants; and
     (ii) stock options of the Corporation, specifying the exercise prices and
     periods of such options and the amount of Common Stock issuable upon
     exercise of the stock option held by each such holder. As of the date
     hereof, 73,621,344 shares of Common Stock are issuable upon exercise or
     conversion of all of the Corporation's outstanding options, warrants, and
     other rights of any kind to acquire shares of the Corporation's Common
     Stock (not including Class B Warrants issued in September 1997 to MCI
     WorldCom, Inc.).

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          (c) Agreements.

               (i) Except as set forth in Schedule 4.5(c)(i), as of the date
          hereof, there are no agreements relating to the purchase or sale of
          capital stock between the Corporation and any of its shareholders or
          affiliates, and to the best of the Corporation's knowledge, there are
          no such agreements among any of its shareholders and other parties.

               (ii) Except as contemplated hereby and as set forth in Schedule
          4.5(c)(ii), there are no agreements or understandings granting to any
          person or entity any right to cause the Corporation or any Subsidiary
          to effect a registration under the Securities Act of 1933, as amended
          ("Securities Act"), of any shares of the Corporation's capital stock.

               (iii) Except as set forth on Schedule 4.5(c)(iii), there are no
          voting trusts, voting agreements, proxies or other agreements,
          instruments or understandings with respect to the voting of the
          capital stock of the Corporation between the Corporation and any of
          its shareholders or affiliates and to the best of the Corporation's
          knowledge, there are no such agreements among any of its shareholders
          and any other parties.

          (d) Due Authorization. The Shares are duly authorized and, when issued
     and paid for pursuant to the terms of this Agreement, will be validly
     issued, fully paid and nonassessable and will have the rights, preferences
     and privileges specified in the Class E Certificate of Designation. The
     shares of the Corporation's Common Stock issuable upon conversion of the
     Shares ("Conversion Shares") are duly authorized and have been reserved for
     issuance and, when issued upon conversion in accordance with the terms of
     the Class E Certificate of Designation, will be validly issued, fully paid
     and nonassessable, and will be free and clear of all liens, encumbrances
     and restrictions (other than the restrictions on transfer imposed by the
     Securities Act or any other applicable federal or state securities laws,
     and the rules and regulations promulgated thereunder). Neither the
     issuance, sale or delivery of the Shares nor the contemplated issuance or
     delivery of the Conversion Shares is subject to or will trigger any
     preemptive or other similar right of shareholders of the Corporation, any
     anti-dilution right or right of first refusal or other preemptive or
     similar right in favor of any person, in each case except for rights that
     have been listed on Schedule 4.5(d).

          (e) Securityholders. Schedule 4.5(a) sets forth the name and address
     of each record holder of more than five-percent of the outstanding shares
     of any of the Common Stock, the Class A Preferred Stock, the Class B
     Preferred Stock, the Class C Preferred Stock, the Class D Preferred Stock
     and the Class E Preferred Stock and the number of such shares of Common
     Stock or Preferred Stock held by each such holder.

          (f) Reservation of Shares. The Corporation has reserved, and at all
     times from and after the date hereof will keep reserved, free from
     preemptive rights, out of its authorized but unissued shares of Common
     Stock, solely for the purpose of effecting the conversion of all shares of
     Class A Preferred Stock, Class B Preferred Stock, Class C Preferred Stock,
     Class D Preferred Stock, Class E Preferred Stock and Class F Preferred
     Stock, sufficient shares of Common Stock to provide for the conversion of
     all such shares of Preferred Stock.

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     4.6. Securities Laws; Applicable Corporation Laws.

          (a) The sale of the Shares contemplated hereby is exempt from
     registration under the Securities Act. The issuance of all other shares of
     capital stock of the Corporation on or before the date hereof has been made
     in compliance with the Securities Act and all applicable state securities
     or blue sky laws.

          (b) The sale of the Shares contemplated hereby and the other
     transactions contemplated hereby are in compliance with all applicable
     laws, including the Minnesota Business Corporation Act, and any consents
     which are required to be obtained pursuant to such laws have either been
     obtained or waived in writing.

     4.7. Financial Information.

          (a) Schedule 4.7 sets forth (i) the audited consolidated balance sheet
     of the Corporation at December 31, 1998 (the "Balance Sheet") and the
     related statements of operations, shareholders' equity and cash flows of
     the Corporation for the 12 months then ended and (ii) the unaudited
     consolidated balance sheet of the Corporation at September 30, 1999 (the
     "Interim Balance Sheet") and the related unaudited consolidated statements
     of operations, shareholders' equity and cash flows for the Corporation for
     the 9 months then ended (collectively, the "Financial Statements").

          (b) The Financial Statements: (i) present fairly the financial
     position of the Corporation and the results of operations, shareholders'
     equity and cash flows of the Corporation at the dates and for the periods
     indicated, (ii) are in accordance with the books and records of the
     Corporation which books and records are complete and correct and fairly
     reflect all material transactions of the Corporation's business, and (iii)
     have been prepared in accordance with generally accepted accounting
     principles ("GAAP") consistently applied (except as set forth in the notes
     thereto and subject, in the case of unaudited Financial Statements, to
     normal year-end adjustments, and the absence of notes thereto). Except as
     incurred under agreements on Schedule 4.10(a) or as set forth on Schedule
     4.7, at the date of the Interim Balance Sheet, the Corporation did not have
     any material Liability of any nature or any loss contingency (as such term
     is used in the Statement of Financial Accounting Standards No. 5 issued by
     the Financial Accounting Standards Board in March 1975) that was not
     adequately disclosed or provided for on the Interim Balance Sheet,
     including the notes thereto. For purposes of this Agreement, "Liability"
     means any liability or obligation, whether known or unknown, asserted or
     unasserted, absolute or contingent, accrued or unaccrued, liquidated or
     unliquidated and whether due or to become due, regardless of when asserted.

     4.8. Absence of Changes.

          (a) Since the date of the Interim Balance Sheet there has not been:

               (i) any change in the assets, liabilities or financial condition
          of the Corporation (on a consolidated basis), except for changes (i)
          in the ordinary course of

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          business or (ii) which in the aggregate have not resulted in and would
          not reasonably be expected to result in a Material Adverse Effect;

               (ii) any event or change that would reasonably be expected to
          result in a Material Adverse Effect, individually or in the aggregate,
          whether or not insured against;

               (iii) to the best of the Corporation's knowledge, any damage,
          destruction or loss (whether or not covered by insurance) affecting
          any asset of the Corporation in excess of $100,000;

               (iv) any liability or loss contingency incurred by the
          Corporation that would have to be disclosed on financial statements
          (including the notes thereto) (on a consolidated basis) in accordance
          with GAAP, other than liabilities incurred in the ordinary course of
          business consistent with past practice;

               (v) to the best of the Corporation's knowledge, any commitment to
          borrow money from or provide financial support to any person or entity
          entered into by the Corporation;

               (vi) any payment or discharge of any Liability by the Corporation
          outside the ordinary course of business consistent with past practice
          to the best of the Corporation's knowledge;

               (vii) any sale, assignment, license, or other disposition of any
          asset or right of the Corporation or any Subsidiary outside the
          ordinary course of business consistent with past practice;

               (viii) any declaration or payment of any dividend or other
          distribution with respect to any shares of capital stock of the
          Corporation, or the direct or indirect acquisition of any equity
          securities by the Corporation;

               (ix) any labor trouble, problem or grievance affecting the
          business of the Corporation other than such matters which would not
          reasonably be expected to have a Material Adverse Effect;

               (x) any write-down of the value of any inventory of the
          Corporation, or any write-off as uncollectible of any accounts or
          notes receivable of the Corporation, which could reasonably be
          expected to result in a Material Adverse Effect;

               (xi) any increase in the direct or indirect compensation of
          senior officers of the Corporation or any Subsidiary (including,
          without limitation, any increase pursuant to any bonus, pension,
          profit-sharing, deferred compensation, or other plan or commitment),
          in excess of 20% above the prior year;

               (xii) any capital expenditure or commitment therefor by the
          Corporation or any Subsidiary for additions to property, plant or
          equipment in excess of $250,000;

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               (xiii) any change in the accounting or tax methods, practices, or
          assumptions followed by the Corporation or any Subsidiary; or

               (xiv) any other transaction or event not in the ordinary course
          of business consistent with past practice.

          (b) The Corporation's independent accountants have not advised the
     Corporation that the Interim Balance Sheet and the related unaudited
     financial statements (i) do not comply in all material respects with the
     applicable accounting requirements of the Securities Act and the related
     published rules and regulations thereunder and (ii) are not in conformity
     with GAAP.

     4.9. Reserved.

     4.10. Agreements.

          (a) Schedule 4.10(a) sets forth a list of all material written and
     oral contracts, agreements, licenses, commitments, instruments and
     understandings ("Agreements"), and all Agreements of the following types
     regardless of materiality, to which the Corporation or any Subsidiary is a
     party ("Disclosed Agreements"):

               (i) individually provide for the future purchase by the
          Corporation or any Subsidiary of products or services in excess of
          $50,000 or call for expenditures of the Corporation or any Subsidiary
          in excess of $50,000, which expenditures or commitments have not been
          disclosed in the Initial Budget;

               (ii) provide for the employment by the Corporation or any
          Subsidiary of any director or officer or consultant (other than for
          legal or accounting services) earning $100,000 or more for any
          engagement or provide for any payments or benefits (including
          severance payments or benefits) to any director, officer or employee;

               (iii) provide for the borrowing of money or a line of credit by
          the Corporation or any Subsidiary, or a leasing transaction of a type
          required to be capitalized by the Corporation in accordance with GAAP;

               (iv) provide for a strategic relationship regarding the
          Corporation or any Subsidiary and a third party, including any joint
          venture, partnership or similar arrangement;

               (v) provide for the sale, assignment, license, or other
          disposition of any asset or any material right of the Corporation with
          a value in excess of $30,000;

               (vi) provide for the lease by the Corporation or any Subsidiary
          of any real property;

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               (vii) provide for the lease by the Corporation or any Subsidiary
          of any personal property with a value, or reflecting replacement
          costs, in excess of $30,000 or involving lease payments in excess of
          $30,000 per year;

               (viii) were entered into with any labor union;

               (ix) provide for a tax sharing;

               (x) provide for any distribution, agency, or licensing
          arrangement with the Corporation or any Subsidiary;

               (xi) require the Corporation to issue dividends or shares of its
          Common Stock upon exercise of warrants;

               (xii) restrict the Corporation or any Subsidiary, or any of the
          officers or employees listed on Schedule 4.10(a)(ii), from engaging in
          any business activity in any way related to the business of the
          Corporation anywhere in the world, restrict any such person in the
          performance of his or her obligations and responsibilities to the
          Corporation or any Subsidiary, or create any other obligation or
          liability of any such person, in any way related to the business of
          the Corporation, arising from his or her prior employment;

               (xiii) grant to any person or entity, other than the Corporation
          or any Subsidiary, any right, title, or interest in any invention or
          know-how conceived by employees of the Corporation or any Subsidiary
          and related to the business of the Corporation;

               (xiv) provide for a loan guaranty, surety, indemnity, or other
          financial support by the Corporation or any Subsidiary to any person
          or entity; or

               (xv) grant to any person or entity a security interest in any
          asset or right of the Corporation or any Subsidiary.

          (b) Each Disclosed Agreement or understanding required to be set forth
     on Schedule 4.10(a) is in full force and effect and constitutes a valid and
     binding obligation of all parties thereto. Except as set forth on Schedule
     4.10(a), the Corporation and, to the extent a Subsidiary is a party, the
     Subsidiary has performed in all material respects the obligations required
     to be performed by it and is not in material default and has not received
     notice alleging it to be in default under any such Disclosed Agreement. To
     the knowledge of the Corporation, there exists no event or condition which,
     after notice or lapse of time, or both, would constitute such a material
     default under any Disclosed Agreement. To the knowledge of the Corporation,
     there are no material defaults by any other party to any such Disclosed
     Agreement. The Corporation has made available to the Purchaser correct and
     complete copies of all Disclosed Agreements set forth on Schedule 4.10(a).

                                       9
<PAGE>

     4.11. Title to Assets.

     Except for properties leased by the Corporation or any Subsidiary, the
Corporation and each Subsidiary has good and marketable title to all assets
reflected on the Interim Balance Sheet as being owned by it, or acquired by it
after the date of the Interim Balance Sheet (except for inventory sold or
otherwise disposed of in the ordinary course of business, and accounts and notes
receivable paid in full, since the date of the Interim Balance Sheet), free and
clear of all Encumbrances, other than Permitted Liens and other than those which
would not reasonably be expected to result in a Material Adverse Effect. Such
assets are in good operating condition and repair, are adequate and suitable for
their intended use in the business of the Corporation and are sufficient for the
conduct of the business except as would not reasonably be expected to result in
a Material Adverse Effect. There does not exist any condition which interferes
with the economic value or use of such assets except as would not reasonably be
expected to result in a Material Adverse Effect. The term "Permitted Liens"
means (i) liens arising by operation of law in the ordinary course of business
that, individually and in the aggregate, do not in any respect interfere with
the use or value of any of the assets subject thereto, (ii) minor imperfections
of title which do not detract from the value of the property affected or impair
the operations of the Corporation, (iii) liens for taxes not yet due and
payable, (iv) liens arising in connection with debt incurred pursuant to and in
accordance with the covenant section, and (v) liens relating to monies borrowed
by the Corporation or any Subsidiary. Any property held under lease by the
Corporation and each Subsidiary is held by them under a valid, subsisting and
enforceable lease with such exceptions as are not material and do not interfere
with the use made and proposed to be made of such property by the Corporation
and each Subsidiary.

     4.12. Real Property.

     Except as disclosed on Schedule 4.12, neither the Corporation nor any
Subsidiary owns or holds, directly or indirectly, any real property. Neither the
Corporation nor any Subsidiary leases, directly or indirectly, any real property
other than as listed on Schedule 4.12. Any real property or facility held under
lease by the Corporation and each Subsidiary is held by them under a valid,
subsisting and enforceable lease with such exceptions as are not material and do
not interfere with the use made and proposed to be made of such property and
buildings by the Corporation and each Subsidiary.

     4.13. Intellectual Property Rights; Proprietary Information of Third
Parties.

          (a) Each of the Corporation and each Subsidiary owns or is licensed to
     use all patents, trademarks, copyrights, service marks, and applications
     and registrations therefor, and all trade names (including WAM!NET,
     WAM!BASE and WAM!PROOF), domain names, URLs, customer lists, trade secrets,
     proprietary processes and formulae, inventions, know-how, other
     confidential and proprietary information, and other industrial,
     intellectual property and/or proprietary rights and all goodwill of the
     business associated therewith and represented thereby (collectively
     "Intellectual Property") necessary to permit such entities to carry on
     their respective business as presently conducted and as currently
     contemplated to be conducted. All such rights are free of all Encumbrances
     and are fully assignable by the Corporation and each Subsidiary to any
     third party, without payment, consent of any third party or other condition
     or restriction.

                                       10
<PAGE>

     Schedule 4.13 sets forth a list of all patents, trademarks, copyrights,
     service marks, and applications and registrations therefor, and all trade
     names, domain names or URLs held or owned by the Corporation and each
     Subsidiary and all other Intellectual Property rights of the Corporation
     and each Subsidiary. All registered and/or material patents, copyrights,
     trademarks, domain name and URL rights and service marks listed on Schedule
     4.13 are valid, in full force and effect and are not subject to any taxes
     or maintenance fees and the Corporation or a Subsidiary has the right and
     standing to bring infringement Proceedings with respect thereto. Neither
     the Corporation nor any Subsidiary (i) licenses or grants to anyone other
     than to the Corporation or any Subsidiary rights of any nature to use any
     Intellectual Property right that is material to its business, other than
     certain software and equipment which is provided to the Corporation's
     clients which enable them to access the Corporation's network solely in
     order to avail themselves of the Corporation's services, (ii) is not
     obligated to and does not pay royalties to anyone for use of its
     Intellectual Property rights, and (iii) does not market or sell any product
     or service that violates any Intellectual Property right of a third party.
     Except as set forth on such Schedule, there is no pending or, to the
     knowledge of the Corporation and each Subsidiary threatened claim or
     litigation against the Corporation or any Subsidiary contesting the right
     to use its Intellectual Property rights, asserting the misuse of any
     thereof, or asserting the infringement or other violation of any
     Intellectual Property rights of a third party.

          (b) All Intellectual Property conceived or developed by employees of
     the Corporation and each Subsidiary, while in the employ of the Corporation
     or such Subsidiary, and related to the business of the Corporation or any
     Subsidiary were either "works for hire," owned exclusively by the
     Corporation or a Subsidiary and/or all right, title, and interest therein
     was transferred and assigned to the Corporation or a Subsidiary and the
     Corporation or a Subsidiary has maintained all exclusive right, title and
     interest therein without any Encumbrances thereon. The Corporation has
     taken all reasonable security measures to protect the secrecy,
     confidentiality, and value of its trade secrets, proprietary processes and
     formulae, inventions, know-how and other confidential and proprietary
     information (including without limitation entering into appropriate
     non-disclosure and non-use agreements with all officer, directors,
     employees, independent contractors and other person with access to such
     information).

          (c) No third party has claimed or, to the Company's knowledge, has
     reason to claim that the Corporation or any Subsidiary has (i) violated or
     may be violating any of the terms or conditions of any non-competition or
     non-disclosure agreement with such third party, (ii) disclosed or may be
     disclosing or utilized or may be utilizing any trade secret or proprietary
     information or documentation of such third party or (iii) interfered or may
     be interfering in the employment relationship between such third party and
     any of its present or former employees. Neither the Corporation or any
     Subsidiary has utilized nor proposes to utilize any trade secret or any
     information or documentation proprietary to any other person in violation
     of existing arrangements with such person, and neither the Corporation or
     any Subsidiary has violated any confidential relationship which any such
     person may have had with any third party, in connection with the
     development, manufacture, or sale or other use or exploitation of any
     product of any service of the Corporation or any Subsidiary.

          (d) There exists no event, condition or occurrence which, with the
     giving of notice or lapse of time, or both, would constitute a breach or
     default by the Corporation or a

                                       11
<PAGE>

     Subsidiary under any Agreement concerning Intellectual Property. No party
     to any Agreement concerning Intellectual Property has given the Corporation
     or any Subsidiary notice of its intention to cancel, terminate or fail to
     renew any such Agreement.

          (e) To the knowledge of the Corporation and the Subsidiaries, no third
     party is violating any material Intellectual Property right of the
     Corporation or a Subsidiary.

     4.14. Compliance with Laws; Governmental Authorizations.

     The Corporation and each Subsidiary is in compliance in all respects with
all Laws, except for such instances where non-compliance would not result in a
Material Adverse Effect. Each of the Corporation and each Subsidiary has all
permits, licenses, authorizations, registrations, franchises, approvals,
certificates or variances (collectively, "Permits") from each Governmental
Authority that is necessary or advisable in the conduct of its business as
presently conducted except in such cases which would not reasonably be expected
to result in a Material Adverse Effect. For purposes of this Agreement,
"Governmental Authority" means any federal, state, municipal, local or foreign
government and any court, tribunal, administrative agency, commission, board,
agency or other governmental or regulatory authority or agency, whether domestic
or foreign. Neither the Corporation nor any Subsidiary is licensed to provide
communication services under any state, federal or foreign laws nor is any one
of them required to be so licensed.

     4.15. Litigation.

     Except as set forth on Schedule 4.15, there are no (i) actions, suits,
claims, investigations or other proceedings (collectively, "Proceedings") by or
before any Governmental Authority or other arbitration or mediation body,
pending or, to the knowledge of the Corporation, threatened against the
Corporation or any Subsidiary, or (ii) judgments, writs, decrees, injunctions,
compliance agreements, or orders of any Governmental Authority or other
arbitration or mediation body, against the Corporation or any Subsidiary.

     4.16. Environmental Matters.

     Each of the Corporation and each Subsidiary is in compliance with all Laws
relating to the protection of the environment (the "Environmental Laws"). Except
for the operation of machinery and equipment in the ordinary course of business
in compliance with applicable Environmental Laws, neither the Corporation nor
any Subsidiary has handled, stored or released, or exposed any person to, any
hazardous substance, as defined in 42 U.S.C.A. Section 9601(14) or any other
applicable Environmental Laws (a "Hazardous Substance"). Neither the Corporation
nor any Subsidiary is liable or responsible for clean-up costs, remedial work or
damages in connection with the handling, storage, release, or exposure by it of
any Hazardous Substance except in cases which would not reasonably be expected
to result in a Material Adverse Effect. No claims for clean-up costs, remedial
work or damages have been made by any person or entity in connection with the
handling, storage, release, or exposure by the Corporation and/or any Subsidiary
of any Hazardous Substance.

                                       12
<PAGE>

     4.17. Tax Matters.

          (a) (i) The Corporation has timely filed or been included in all
     required returns, declarations of estimated tax, reports, and statements
     relating to any Taxes due and payable by it (collectively, the "Returns");
     (ii) all Returns were correct and complete as of the time of filing; (iii)
     the Corporation has timely paid all Taxes required to be paid by it through
     the date hereof; (iv) the Corporation has made provision on its most recent
     interim balance sheet for all Taxes payable by it for all periods prior to
     the date of such interim balance sheet for which no Returns have yet been
     filed; (v) the Corporation has made provision on its books for all Taxes
     payable by it for all periods beginning on or after the date of its most
     recent interim balance sheet for which no Returns have yet been filed; (vi)
     the Corporation has no knowledge of any pending tax audits of any Returns;
     (vii) the Corporation has no knowledge that any deficiency or addition to
     any Taxes has been proposed, asserted or assessed in writing against the
     Corporation; and (viii) the Corporation has not granted any extension of
     the statute of limitations applicable to any Return or other claim for
     Taxes.

          (b) "Taxes" means, with respect to any person or entity, (i) all
     material Federal, state, local, and foreign taxes, including, without
     limitation, all taxes on or based upon net income, gross income, income as
     specially defined, earnings, profits or selected items of income, earnings,
     or profits, and all gross receipts, sales, use, ad valorem, transfer,
     franchise, license, withholding, payroll, employment, excise, severance,
     stamp, occupation, premium, property, or windfall profits taxes,
     alternative or add-on minimum taxes, customs duties, or other taxes, fees,
     assessments or charges of any kind, together with any interest, penalties,
     additions to tax or additional amounts imposed by any taxing authority on
     such person or entity, and (ii) any material liability for the payment of
     any amount of the type described in the preceding clause (i) as a result of
     being a "transferee" (within the meaning of Section 6901 of the Internal
     Revenue Code of 1986, as amended (the "Code"), or any other applicable
     Laws) of another person or entity.

     4.18. Employee Benefit Plans and Employment Matters.

          (a) Schedule 4.18 sets forth a list of all "employee pension benefit
     plans" and "employee benefit plans," as defined in Section 3(2) and (3) of
     the Employee Retirement Income Security Act of 1974 ("ERISA"), and other
     written or formal plans or group arrangements involving direct or indirect
     compensation (not including any government-mandated programs) currently or
     previously maintained or contributed by the Corporation or any ERISA
     Affiliate for the benefit of any employee or former employee thereof under
     which the Corporation and/or any Subsidiary has or may have any present or
     future obligation or liability (collectively, the "Employee Plans"). "ERISA
     Affiliate" means any entity which is a member of (i) a "controlled group of
     corporations," as defined in Section 414(b) of the Code, (ii) a group of
     entities under "common control," as defined in Section 414(c) of the Code,
     or (iii) an "affiliated service group," as defined in Section 414(m) of the
     Code, any of which includes the Corporation.

          (b) Schedule 4.18 further sets forth a list of all plans, trusts, or
     arrangements (written or oral) providing for insurance coverage (including
     any self-insured arrangements), workers' compensation, medical benefits,
     disability benefits, supplemental unemployment

                                       13
<PAGE>

     benefits, vacation benefits, retirement benefits, deferred compensation,
     profit-sharing, bonuses, stock options, stock appreciation, or other forms
     of incentive compensation, insurance or benefits (collectively, the
     "Benefit Arrangements") that (i) are not Employee Plans, (ii) are
     maintained or contributed to by the Corporation or any Subsidiary, and
     (iii) cover any director, officer, employee, consultant, or former employee
     of the Corporation or any Subsidiary.

          (c) Each Employee Plan and Benefit Arrangement has been maintained in
     substantial compliance with its terms and with the requirements prescribed
     by applicable Laws. There has not been any "accumulated funding
     deficiency," as defined in Section 412 of the Code, with respect to any
     Employee Plan. There has not been any partial or complete withdrawal by the
     Corporation or any Subsidiary with respect to any Employee Plan which is a
     "multiemployer plan," as defined in Section 3(37) of ERISA, and the
     Corporation does not have any current plans to withdraw from any such
     Employee Plan. There has been no "prohibited transaction" within the
     meaning of Section 406 of ERISA or Section 4975 of the Code involving any
     Employee Plan. There are no pending or threatened investigations or claims
     by the Internal Revenue Service, Department of Labor, Pension Benefit
     Guaranty Corporation or any other governmental agency or any individual
     relating to any of the Employee Plans or Benefit Arrangements. Except as
     required under Section 4980B of the Code, the Company has no obligation to
     provide post-retirement health or life benefits. Except as set forth on
     Schedule 4.18, neither the Corporation or any Subsidiary is in default or
     alleged to be in default in the payment or other provision of any benefit
     under any Employee Plan or Benefit Arrangement. Except as set forth on
     Schedule 4.18, no actions have been taken or are currently planned with
     respect to any Employee Plan or Benefit Arrangement that would increase the
     expense of maintaining or the benefits provided under such Employee Plan or
     Benefit Arrangement above the level of the expense incurred or benefits
     provided in respect thereof for each of the years 1999 and 1998.

          (d) The execution and delivery by the Corporation of the Documents and
     its consummation of the transactions contemplated thereby will not
     constitute a triggering event under any Employee Plan or Benefit
     Arrangement that will, or upon the occurrence of subsequent events would,
     accelerate the time of payment or vesting, or increase the amount of
     compensation or benefits, for any director, officer, employee, or former
     employee of the Corporation.

          (e) Neither the Corporation nor any Subsidiary is a party to any
     employment, labor or collective bargaining agreement and there are no
     employee, labor or collective bargaining agreements which pertain to
     employees, consultants, officers or directors of the Corporation or any
     Subsidiary and no labor union or employee organization has been certified
     or recognized as the collective bargaining representative of any employees
     of the Corporation or any Subsidiary and there are no representation or
     certification proceedings or petitions seeking a representation proceeding
     presently pending or threatened to be brought or filed with the National
     Labor Relations Board. There are no existing or threatened labor strikes,
     work stoppages, slowdowns, disputes, grievances, unfair labor practice
     charges, labor arbitration proceedings or other disturbances affecting any
     employee of the Corporation or and Subsidiary. There are no complaints,
     charges, or claims against the Corporation or any Subsidiary pending or
     threatened in writing to be brought or filed with any governmental entity
     or arbitrator based on, arising out of, in connection with, or otherwise
     relating to the employment or termination of employment of any individual
     by the Corporation or any Subsidiary. The Corporation and its

                                       14
<PAGE>

     Subsidiaries are in compliance with all laws governing the employment of
     labor, including, but not limited to, all such laws relating to wages,
     hours, collective bargaining, discrimination, civil rights, safety and
     health, workers' compensation and the collection and payment of withholding
     and/or Social Security taxes and similar taxes.

     4.19. Insurance.

     The Corporation maintains valid and effective insurance policies, issued by
financially sound and reputable insurers, to insure it against all risks usually
insured against by persons or entities conducting businesses similar to that of
the Corporation or such Subsidiary in the locality in which such businesses are
conducted. The Corporation has paid all due premiums with respect to all
policies of insurance currently maintained by the Corporation.

     4.20. Related Transactions.

          (a) Except as set forth on Schedule 4.20, and except for compensation
     to regular employees, since January 1, 1998, no current director or
     executive officer of the Corporation or holder of at least 5% of the
     outstanding capital stock of the Corporation has been (i) a party to any
     transaction with the Corporation valued in excess of $60,000 during any
     twelve-month period, or (ii) the direct or indirect owner of an interest in
     any business organization that is or was a competitor, supplier or customer
     of the Corporation (other than interests in non-affiliated publicly held
     companies). 4.21. Offering of the Shares.

     The Corporation has not, directly or indirectly, solicited any other offer
to buy or offer to sell, and will not, directly or indirectly, solicit any other
offer to buy or offer to sell, any security which is or would be integrated with
the sale of the Shares in a manner that would require the Shares to be
registered under the Securities Act.

     4.22. Disclosure.

     The Corporation has filed all required registration statements, reports and
proxy statements with the Securities and Exchange Commission ("SEC Reports")
when due (or within permitted extension periods) in accordance with the
Securities Act and the Securities Exchange Act of 1934, as amended ("Exchange
Act"), as the case may be. As of their respective dates (or, in the case of any
amended SEC Report, as of the date of the amendment), the SEC Reports complied
in all material respects with all applicable requirements of the Securities Act
or the Exchange Act, as the case may be. As of their respective dates (or, in
the case of any amended SEC Report, as of the date of the amendment), none of
the SEC Reports contained any untrue statement of a material fact or omitted to
state a material fact required to be stated or incorporated by reference therein
or necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. This Agreement does
not contain an untrue statement of a material fact nor does it omit to state a
material fact necessary in order to make the statements contained herein or
therein, in light of the circumstances under which they were made, not
misleading. None of the statements, documents,

                                       15
<PAGE>

certificates or other items prepared by the Corporation and supplied to
Purchaser or its counsel in connection with the transactions contemplated hereby
(other than those relating to (i) projected financial information, (ii) plans
and objectives regarding the Corporation's future operations, (iii) future
economic performance and (iv) assumptions underlying any of the matters
described in (i) through (iii), each as to which no representation or warranty
is given other than, however, that such representations are reasonable in light
of existing or known facts or trends and were prepared in good faith) contains
an untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading.

     4.23. Reserved.

     4.24. Reserved.

     4.25. Brokers and Finders.

     No person or entity acting on behalf or under the authority of the
Corporation is or will be entitled to any broker's, finder's, or similar fee or
commission in connection with the sale of the Shares.

     4.26. Year 2000 Compliance.

          (a) The Corporation and each Subsidiary has used (or is in the process
     of using) appropriate procedures to verify that its software which is
     licensed or otherwise provided to its customers and the software used in
     its business will recognize and process date fields after the turn of the
     century, and perform date-dependent calculations and operations (including
     sorting, comparing and reporting) after the turn of the century correctly,
     and the Corporation and each Subsidiary has used (or is in the process of
     using) reasonable efforts to ensure that such software will not produce
     invalid and incorrect results as a result of the change of century (all
     without human intervention, other than original data entry of valid dates).

          (b) The Corporation has (i) analyzed the operations of the Corporation
     and the Subsidiaries that could be adversely affected by failure to become
     Year 2000 compliant and (ii) developed a plan for becoming Year 2000
     compliant in a timely manner, the implementation of which is on schedule in
     all material respects. The disclosure in the Corporation's Exchange Act
     reports (e.g., Form 10-K, 10-Q, etc.) regarding the progress of the Year
     2000 compliance program and Year 2000 remediation were accurate when made.

          (c) Based upon responses to its inquiries to its suppliers and
     vendors, the Corporation reasonably believes any suppliers and vendors that
     are material to the operations of the Corporation and the Subsidiaries will
     be Year 2000 compliant for their own computer applications except to the
     extent that a failure to do so could not reasonably be expected to have a
     Material Adverse Effect.

     4.27. Reserved.

                                       16
<PAGE>

Section 5. Representations and Warranties of the Purchaser.

     Each Purchaser represents and warrants to the Corporation on behalf of
itself (and not any other Purchaser) as of the date hereof and the Closing Date
that:

     5.1. Due Authorization.

     The Purchaser has taken all action necessary to authorize its execution and
delivery of the Documents to which it is a party, the performance of its
obligations thereunder, and its consummation of the transactions contemplated
thereby. Each Document to which the Purchaser is a party has been executed and
delivered by an officer of the Purchaser in accordance with such authorization
or by the Purchaser. Each Document to which the Purchaser is a party constitutes
a valid and binding obligation of the Purchaser, enforceable in accordance with
its terms, subject to applicable bankruptcy, reorganization, insolvency,
moratorium, and similar laws affecting creditors' rights generally and to
general principles of equity.

     5.2. Investment Representations.

          (a) The Purchaser is acquiring the Shares for its own account, for
     investment and not with a view to the distribution thereof, nor with any
     present intention of distributing the same.

          (b) The Purchaser understands that the Shares have not been, and the
     Conversion Shares will not be, registered under the Securities Act or
     applicable state securities laws, by reason of their issuance in a
     transaction exempt from the registration requirements of the Securities
     Act, and such shares must be held indefinitely unless subsequent
     disposition thereof is registered under applicable securities laws or is
     exempt from registration.

          (c) The Purchaser understands that the exemption from registration
     afforded by Rule 144 (the provisions of which are known to the Purchaser)
     promulgated under the Securities Act depends on the satisfaction of various
     conditions and that, if applicable, Rule 144 may only afford the basis for
     sales under certain circumstances and only in limited amounts.

          (d) The Purchaser is an "accredited investor," as such term is defined
     in Rule 501 (the provisions of which are known to the Purchaser)
     promulgated under the Securities Act.

          (e) The Purchaser has such knowledge and experience in financial, tax
     and business matters so as to enable the Purchaser to utilize the
     information made available to the Purchaser in connection with the
     investment in the Shares to evaluate the merits and risks of an investment
     in the Shares and to make an informed investment decision with respect
     thereto; provided, however, that the foregoing shall in no way affect,
     diminish or derogate from the representations and warranties made by the
     Corporation hereunder or the right of the Purchaser to rely thereon and to
     seek indemnification hereunder.

          (f) The Purchaser has not been formed for the specific purpose of
     acquiring the Shares.

                                       17
<PAGE>

          (g) The Purchaser hereby acknowledges that the purchase and sale of
     the Shares is intended to be exempt from registration under the Securities
     Act by virtue of Section 4(2) and/or Section 3(b) of the Securities Act
     and, if applicable, in the sole judgment of the Corporation, the provisions
     of Regulation D thereunder, which exemption is dependent upon the truth,
     completeness and accuracy of the statements made by the Purchaser herein
     and in any other documents furnished by the Purchaser to the Corporation.

     5.3. Brokers and Finders.

     No person or entity acting on behalf or under the authority of the
Purchaser is or will be entitled to any broker's, finder's, or similar fee or
commission in connection with the transactions contemplated hereby.

     5.4. Investor Sophistication.

     Purchaser has sufficient knowledge and experience and is capable of
evaluating the merit and risks of its investment in the Corporation as
contemplated by this Agreement and is able to bear the economic risk of such
investment for an indefinite period of time. Purchaser has been given access to
SEC Reports. Purchaser has had the opportunity to ask questions of and receive
answers from representatives of the Corporation concerning the terms and
conditions of this Agreement, to discuss the Corporation's business, management
and financial affairs with the Corporation's management and to obtain any other
additional information Purchaser desires or deems relevant.

     5.5. Reserved.

Section 6. Covenants of the Corporation and the Purchaser.

     6.1. Regulatory Approvals; Reasonable Best Efforts; Further Assurances.

     The Corporation and the Purchaser acknowledge that certain regulatory or
governmental approvals may be required to lawfully consummate the transactions
contemplated by this Agreement. Subject to the terms and conditions of this
Agreement, the Corporation and the Purchaser will, and will cause their
Affiliates to, use their reasonable best efforts to take, or cause to be taken,
all actions and to do, or cause to be done, all things necessary or desirable
under applicable laws and regulations to consummate the transactions
contemplated by this Agreement. The Corporation and the Purchaser agree to
execute and deliver such other documents, certificates, agreements and other
writings and to take such other actions as may be necessary or desirable in
order to consummate or implement expeditiously the transactions contemplated by
this Agreement.

     6.2. Certain Filings.

     The Corporation and the Purchaser will, and will cause their Affiliates to,
cooperate with one another (i) in determining whether any action by or in
respect of, or filing with, any governmental body, agency, official or authority
is required, or any actions, consents, approvals or waivers are required to be
obtained from parties to any material contracts, in connection with

                                       18
<PAGE>

the consummation of the transactions contemplated by this Agreement or the
conversion by such Purchaser of such Purchaser's Shares and (ii) in taking such
actions or making any such filings, furnishing information required in
connection therewith and seeking timely to obtain any such actions, consents,
approvals or waivers. Without limiting the generality of the foregoing, the
Corporation and the Purchaser obligated to file a notification under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR Act")
shall promptly after the date of this Agreement prepare and file the
notifications required under the HSR Act in connection with the transactions
contemplated by this Agreement. The Corporation and the Purchaser shall (A) give
the other parties prompt notice of the commencement of any action, suit,
litigation, arbitration, preceding or investigation by or before any
governmental body with respect to the transactions contemplated by this
Agreement, (B) keep the other parties informed as to the status of any such
action, suit, litigation, arbitration, preceding or investigation, and (C)
promptly inform the other parties of any communication to or from the Federal
Trade Commission, the Department of Justice or any other governmental body
regarding the transactions contemplated by this Agreement.

     6.3. Confidentiality.

     Except as set forth in Section 6.4 below and as required by applicable
securities laws upon the advice of counsel, without the consent of the other
party, neither the Corporation nor any Purchaser shall make any public comment,
statement or communication with respect to, or otherwise disclose or permit the
disclosure of the terms of this Agreement and the transactions contemplated
hereby, and each party shall cause its authorized officers, directors, partners,
employees, counsel, accountants, agents and other representatives to strictly
comply with the foregoing.

     6.4. Public Announcements.

     Neither party to this Agreement may publicly disseminate a press release or
file a public report (on Form 8-K or otherwise) with the Securities and Exchange
Commission or otherwise publicly announce the transactions contemplated by this
Agreement, unless the other parties consent. Such parties shall not unreasonably
withhold or delay their approval to any such proposed announcements.

Section 7. Covenants of the Corporation.

     Unless otherwise indicated, and as long as any of the Shares or Conversion
Shares remain outstanding, the Corporation shall and shall cause each Subsidiary
to abide and perform with respect to the following covenants:

     7.1. Certificate of Designation.

     Following the execution of this Agreement, the Corporation shall cause to
be filed the Class E Certificate of Designation as required pursuant to the law
of the State of Minnesota.

                                       19
<PAGE>

     7.2. Restrictions Pending the Closing.

     After the date hereof and prior to the Closing Date, except as expressly
provided for in this Agreement or as consented to in writing by the Purchaser,
the Corporation will not:

          (i) amend its certificate of incorporation or bylaws, except to file
     the Class E Certificate of Designation;

          (ii) split, combine or reclassify any shares of its capital stock
     without appropriately adjusting the conversion price and/or ratio
     applicable to the Shares prior to their issuance at the Closing;

          (iii) declare or pay any dividend or distribution (whether in cash,
     stock or property) in respect of its Common Stock;

          (iv) take any action, or knowingly omit to take any action, that could
     reasonably be expected to result in (A) any of the representations and
     warranties of the Corporation set forth in Article 4 becoming untrue or (B)
     any of the conditions to the obligations of the Purchaser set forth in
     Section 8.1 or 8.2 not being satisfied; or

          (v) enter into any agreement or commitment to do any of the foregoing.

     7.3. Reservation of Shares.

     For so long as any of the Shares are outstanding, the Corporation shall
keep reserved for issuance a sufficient number of shares of Common Stock to
satisfy its conversion obligations under the Class E Certificate of Designation.

     7.4. Use of Proceeds.

     The Corporation shall use the cash proceeds received by it upon the sale of
the Shares for general working capital purposes.

     7.5. Access to Records.

     The Corporation shall, and shall cause each Subsidiary to, afford to the
Purchaser and its authorized employees, counsel, accountants and other
representatives, upon reasonable notice and during ordinary business hours, (i)
full access to all books, records and properties of the Corporation and such
Subsidiary, and (ii) the opportunity to interview any officer of the Corporation
or such Subsidiary regarding its affairs; any investigation pursuant to this
Section shall be conducted in a manner that does not interfere unreasonably with
the conduct of the business of the Corporation and such Subsidiary.

     7.6. Reserved.

     7.7. Financial Reporting and other Information.

                                       20
<PAGE>

          (a) So long as the Purchaser beneficially owns Shares or Conversion
     Shares, the Corporation shall deliver to such Purchaser the following:

               (i) within 30 days after the end of each month, commencing with
          the month of December, (A) the unaudited balance sheet of the
          Corporation at the end of such month, (B) the unaudited statements of
          income and cash flows of the Corporation for such month, (C)
          comparative statements of income of the Corporation for the year to
          date, the comparable figures for the prior year, the current Budget
          for the year to date and projected figures for the year and (D)
          textual discussion describing changes from prior periods and
          describing operating trends;

               (ii) within 45 days after the end of each fiscal quarter,
          commencing with the quarterly period ending March 31, 2000, (A) the
          unaudited balance sheet of the Corporation at the end of such fiscal
          quarter, (B) the unaudited statements of income and cash flows of the
          Corporation for such fiscal quarter, and (C) comparative statements of
          income of the Corporation for such fiscal quarter and the year to
          date, the comparable figures for the corresponding fiscal quarter and
          the year to date period of the prior year and the current Budget for
          such fiscal quarter and for the year to date; and

               (iii) within 90 days after the end of each fiscal year commencing
          with the current fiscal year of the Corporation, (A) the audited
          balance sheet of the Corporation at the end of such fiscal year,
          together with comparisons to the balance sheet of the Corporation at
          the end of the prior fiscal year and to the current Budget, (B) the
          audited statements of income and cash flows of the Corporation for
          such fiscal year, together with comparisons to the statements of
          income and cash flows of the Corporation for the prior fiscal year and
          to the current Budget, and (C) an audit report of Ernst & Young,
          independent certified public accountants, on such balance sheets and
          statements; and

               (iv) any other financial and operating data and other information
          relating to the Corporation and each Subsidiary as the Purchaser may
          reasonably request;

               (v) all information made available to the Corporation's
          shareholders or directors, at the same time as such information is
          delivered to such persons; and

               (vi) monthly management reports in a form reasonably acceptable
          to the Purchaser.

          (b) All financial information to be delivered under this Section shall
     be in accordance with the books and records of the Corporation and shall
     have been prepared in accordance with GAAP, subject to year-end and audit
     adjustments.

     7.8. Payment of Obligations.

     The Corporation shall, and shall cause each Subsidiary to, pay or discharge
or cause to be paid or discharged all material claims or demands, and all Taxes
levied or imposed upon the Corporation or its Subsidiaries or upon the income,
profits or property of the Corporation or its

                                       21
<PAGE>

Subsidiaries; provided, however, that the Corporation or such Subsidiary shall
not be required to pay or discharge or cause to be paid or discharged any such
claim, demand, or Tax the amount, applicability or validity of which is being
contested in good faith by appropriate proceedings and for which adequate
provision has been made.

     7.9. Insurance.

     The Corporation shall, and shall cause each Subsidiary to, maintain with
financially sound and reputable insurers such insurance as may be required by
law and such other insurance, to such extent and against such hazards and
liabilities, as is customarily maintained by companies similarly situated and
exercising sound business practice.

     7.10. Certain Notices.

     The Corporation shall promptly notify the Purchaser of (i) the commencement
or notice of any threat of any Proceeding, dispute or grievance against or
affecting the Corporation, which, if adversely determined, might reasonably be
expected to have a Material Adverse Effect, (ii) any material default under any
indebtedness of the Corporation and (iii) any material default or breach under
any of the items required to be listed on Schedule 4.10(a) or any of the items
which would have been required to be listed on Schedule 4.10(a) if such item
were effective prior to the date hereof.

     7.11. Conduct of Business.

     The Corporation shall (i) take all actions required to assure that the
Corporation remains duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation, (ii) take all actions
required to assure that the Corporation maintains all Permits to conduct its
business, and (iii) conduct its business in compliance with all Laws.

     7.12. Related Transactions.

     Excluding any existing arrangements between Winstar Communications, Inc.
and MCI WorldCom, Inc., the Corporation shall not directly or indirectly enter
into any transaction with any Related Party, other than any transaction entered
into in the ordinary course of business and on terms and conditions not less
favorable to the Corporation as the terms and conditions which would apply in a
similar transaction negotiated on an arms-length basis with a party that is not
a Related Party. "Related Party" means (a) each current or future director or
executive officer of the Corporation, (b) each parent, sibling, spouse, or
descendant of any of the foregoing, (c) each entity of which any of the
foregoing is a director, officer, partner or holder of more than 10% of the
outstanding voting power of any class of capital stock and (d) any person or
entity which is the beneficial owner of 5% or more of the outstanding voting
power of the Corporation.

     7.13. Internal Controls.

          (a) Internal Controls.

                                       22
<PAGE>

          The Corporation maintains and will continue to maintain a system of
     internal accounting controls sufficient to provide reasonable assurances
     that: (i) transactions are executed in accordance with management's general
     or specific authorization, (ii) transactions are recorded as necessary in
     order to permit preparation of financial statements in accordance with
     generally accepted accounting principles and to maintain accountability for
     assets and (iii) the recorded accountability for assets is compared with
     existing assets at reasonable intervals and appropriate action is taken
     with respect to any differences.

     7.14. Board Designees.

     The Corporation shall expand the number of members on its Board of
Directors ("Board") by two. Each of the two Purchasers that purchase the largest
number of Class E Preferred Stock pursuant to this Agreement shall be entitled
to appoint one member to the Board for so long as such Purchaser continues to
own Shares and/or Conversion Shares which together represent at least 40% of the
number of shares of Common Stock issuable upon conversion or redemption of the
Class E Preferred Stock initially purchased by such Purchaser (without giving
effect to anti-dilution rights in the Class E Certificate of Designation). The
persons so elected to be members of the Board shall be entitled to serve on each
of the Audit, Compensation, Nominating and any other committee created by the
Board; provided, however, that in the event any such committee fails to satisfy
specific requirements under the rules and regulations of the Securities and
Exchange Commission any exchange or trading system due to such persons
affiliations, such person will agree to serve solely as an observer of such
committee. Such appointed directors shall be entitled to receive the same
compensation that is paid to other non-management Board members and committee
members and shall be entitled to receive reimbursement for all reasonable costs
incurred in attending such meetings, including, but not limited to, food,
lodging and transportation. To the extent permitted by law, the Corporation will
indemnify such persons and the Purchasers who elected such persons for the
actions of such persons as members of the Board and/or any committee thereof,
unless such actions are found by a court of law to have been grossly and
intentionally negligent. As long as such persons remain as members of the Board,
the Corporation will maintain director and officer insurance policies in amounts
and on terms, which are reasonable for companies similarly situated to the
Corporation and, reasonably acceptable to the Purchasers that appointed such
designees. Any vacancy in the position of a director appointed pursuant to this
Section 7.14 shall be filled by and only by the Purchaser that appointed the
director whose position has become vacant. Each such director may, during his or
her term of office, be removed at any time, with or without cause, by and only
by the Purchaser who appointed such director.

     In addition, any Purchaser making an initial investment of $20 million or
more of the Class E Preferred Stock who does not have a member of its
organization serving on the Board at the time of such Board or Committee
meeting, will have the right to appoint a non-voting Board observer with full
information rights. This right shall continue for so long as such Purchaser
continues to own Shares and/or Conversion Shares which together represent at
least 20% of the number of shares of Common Stock issuable upon conversion or
redemption of the Class E Preferred Stock initially purchased by such Purchaser
(without giving effect to anti-dilution rights). Such observer shall be entitled
to be reimbursed for all reasonable, customary expenses

                                       23
<PAGE>

associated with attending the Board meetings, but shall not be entitled to any
other form of compensation.

     The Corporation shall give written notice, to the Purchaser who nominated a
person to be a Board member and/or observer and to such persons and observers,
of each Board meeting and shall provide to such persons an agenda and minutes of
such Board meeting no later than it gives such notice and provides such items to
the other Board members.

     7.15. Reserved.

     7.16. Purchaser Lock-Up.

     The Purchaser agrees that, without the consent of the Corporation, it will
not directly or indirectly offer, sell, dispose of, pledge, encumber or
otherwise transfer any of the Shares or the Conversion Shares until six months
after the consummation of the Company's initial public offering of Common Stock.

     7.17. Tag-Along Agreements.

     Prior to the Closing the Corporation will use its commercially reasonable
best efforts to cause the Purchasers to be joined as parties to the Tag-Along
Rights Agreements entered into (i) among the Corporation, Silicon Graphics, Inc.
and MCI WorldCom, Inc. dated March 4, 1999; (ii) two separate tag-along
agreements regarding the Corporation, Silicon Graphics, Inc., MCI WorldCom,
Inc., and CCPRE-Eagan LLC, each dated September 30, 1999; and (iii) the Right of
First Refusal Agreement dated December 16, 1996 among Edward J. Driscoll, Allen
Witters and MCI WorldCom, Inc. (collectively "Restricted Stock Agreements").

     7.18. Consents.

     Prior to the Closing, the Corporation shall use its commercially reasonable
best efforts to obtain all consents and approvals of third parties, if any,
required to consummate the transactions contemplated by this Agreement so that
such consummation shall not conflict with or cause a breach of or default under
any agreement or other obligation binding upon the Corporation, including
without limitation all such consents and approvals required with respect to its
obligations for borrowed money and under its Articles of Incorporation and
Certificates of Designation.

Section 8. Registration Rights of the Purchaser.

     8.1. Demand Registration.

          (a) Grant of Right. The Corporation agrees to register on two
     occasions, upon written demand ("Initial Demand Notice") of the Purchaser,
     all of the Conversion Shares, regardless of whether the Shares have been
     converted (the "Registrable Securities"). The Corporation will file a
     registration statement covering the Registrable Securities within 60 days
     after receipt of the Initial Demand Notice and use its best efforts to have
     such registration statement declared effective promptly thereafter. The
     demand for registration may be made at

                                       24
<PAGE>

     any time during a period commencing on the earlier of (i) the six month
     anniversary of the consummation of the Corporation's initial public
     offering of its Common Stock, and (ii) the one year anniversary of the date
     Shares are first issued.

          (b) Terms. The Corporation shall bear all fees and expenses attendant
     to registering the Registrable Securities, including the expenses of one
     legal counsel selected by the Purchaser to represent them in connection
     with the sale of the Registrable Securities but not including any and all
     underwriting commissions and discounts which will be the responsibility of
     the Purchaser participating in the underwriting. The Corporation will
     qualify or register the Registrable Securities in such states as are
     reasonably requested by the Purchaser. The Corporation shall cause any
     registration statement filed pursuant to the demand rights granted under
     this Section to remain effective with respect to the Registrable Securities
     covered by such registration statement until all such securities have been
     sold.

     8.2. "Piggy-Back" Registration.

          (a) Grant of Right. The Purchaser shall have the right at any time and
     from time to time to include the Registrable Securities as part of any
     other registration of securities filed by the Corporation (other than
     pursuant to Form S-4, Form S-8 or any equivalent forms or in connection
     with the Corporation's initial public offering to the extent that no other
     selling shareholder is included in the registration statement).
     Notwithstanding the foregoing, if, in the written opinion of the managing
     underwriter or underwriters of a public offering by the Corporation of its
     shares of Common Stock, the inclusion of the Registrable Securities, when
     added to the securities being registered by the Corporation, will exceed
     the maximum amount of the Corporation's securities that can be marketed
     without materially and adversely affecting the entire offering, then (i)
     the Corporation will include in such registration first, only those
     securities, the holders of which as of the date hereof have piggy-back
     registration rights (as listed on Schedule 8.2), second, the Registrable
     Securities allocated (if necessary) among the holders thereof on a pro rata
     basis based on the number of Registrable Securities requested to be
     included in such registration statement, and third, capital stock of the
     Corporation to be sold for the account of others with applicable piggy-back
     registration rights, with such priorities among them as the Corporation
     shall decide. If, subsequent to the exercise of all of the demand
     registration rights referred to in Section 8.1, any Registrable Securities
     requested to be included in an offering ("Other Offering") pursuant to the
     "piggy-back" rights described in this Section 8.2. are not so included
     because of the operation of the first proviso of the preceding sentence,
     then the holders of the Registrable Securities shall have the right to
     require the Corporation, at its expense, to prepare and file a registration
     statement under the Securities Act covering such Registrable Securities.

          (b) Terms. The Corporation shall bear all fees and expenses attendant
     to registering the Registrable Securities, including the reasonable
     expenses of any legal counsel selected by the Holders to represent them in
     connection with the sale of the Registrable Securities, but the Purchaser
     participating in the registration shall pay any and all discounts and
     underwriting commissions. In the event of such a proposed registration, the
     Corporation shall furnish the owners of the Registrable Securities with not
     less than 30 days written notice prior to the proposed date of filing of
     such registration statement. Such notice shall continue to be given

                                       25
<PAGE>

     for each registration statement filed by the Corporation until such time as
     all of the Registrable Securities have been sold by the Purchaser. The
     owners of the Registrable Securities shall exercise the "piggy-back" rights
     provided for herein by giving written notice within 15 days of the receipt
     of the Corporation's notice of its intention to file a registration
     statement. The Corporation shall cause any registration statement filed
     pursuant to the "piggyback" rights granted under this Section to remain
     effective with respect to the Registrable Securities covered by such
     registration statement until all of the such securities have been sold by
     the Purchaser. Notwithstanding the foregoing, in no event shall the
     Corporation be obligated to maintain the effectiveness of any registration
     statement filed pursuant to Sections 8.1 and 8.2 for a period in excess of
     three years from the initial date of issuance of the Shares.

     8.3. General Terms.

          (a) Indemnification. The Corporation shall indemnify the owner(s) of
     the Registrable Securities to be sold pursuant to any registration
     statement hereunder and each person, if any, who controls such person
     within the meaning of Section 15 of the Act or Section 20(a) of the
     Exchange Act, against all loss, claim, damage, expense or liability
     (including all reasonable attorneys' fees and other expenses reasonably
     incurred in investigating, preparing or defending against any claim
     whatsoever) to which any of them may become subject under the Securities
     Act, the Exchange Act or otherwise, arising from such registration
     statement, except to the extent that any loss, claim, damage, expense or
     liability arises out of or relates to written information furnished by or
     on behalf of the Purchaser, for inclusion in such registration statement
     ("Purchaser Information"). The owner(s) of the Registrable Securities to be
     sold pursuant to such registration statement, and their successors and
     assigns, shall severally, and not jointly, indemnify the Corporation
     against all loss, claim, damage, expense or liability (including all
     reasonable attorneys' fees and other expenses reasonably incurred in
     investigating, preparing or defending against any claim whatsoever) to
     which it may become subject under the Securities Act, the Exchange Act or
     otherwise, arising from Purchaser Information furnished by or on behalf of
     such owner(s).

          (b) Exercise of Shares. Nothing contained in this Section 8 shall be
     construed as requiring the Purchaser to convert the Shares prior to or
     after the filing of any registration statement or the effectiveness
     thereof.

          (c) Documents Delivered to Holders. The Corporation shall deliver
     promptly to the Purchaser participating in any of the foregoing offerings
     who requests it, all correspondence between the Securities and Exchange
     Commission and the Corporation, its counsel or auditors and all memoranda
     relating to discussions with the Securities and Exchange Commission or its
     staff with respect to the registration statement. The Corporation also
     shall furnish to the Purchaser participating in any of the foregoing
     offerings that are underwritten, and to each underwriter of any such
     offering, a signed counterpart, addressed to the Purchaser and underwriter,
     of (i) an opinion of counsel to the Corporation, dated the effective date
     of such registration statement (and an opinion dated the date of the
     closing under the underwriting agreement relating to such offering), and
     (ii) a "cold comfort" letter dated the effective date of such registration
     statement (and a letter dated the date of the closing under the
     underwriting agreement) signed by the independent public accountants who
     have issued a report on the

                                       26
<PAGE>

     Corporation's financial statements included in such registration statement,
     in each case covering substantially the same matters with respect to such
     registration statement (and the prospectus included therein) and, in the
     case of such accountants' letter, with respect to events subsequent to the
     date of such financial statements, as are customarily covered in opinions
     of issuer's counsel and in accountants' letters delivered to underwriters
     in underwritten public offerings of securities. In the event that the
     Purchaser requests information pursuant to this Section (c), then, prior to
     furnishing such information, the Corporation shall have the right to
     require the Purchaser to enter into a confidentiality agreement with the
     Corporation with respect to any information to be provided to the Purchaser
     that the Corporation reasonably considers to be proprietary, non-public or
     otherwise confidential.

     8.4. Underwriting Agreement.

     In the event that the demand registration filed by the Purchaser pursuant
to Section 8.1(a) is for an underwritten offering, then the Purchaser shall have
the right to select the underwriters of the offering, which underwriters shall
be reasonably acceptable to the Corporation. The Corporation shall enter into an
underwriting agreement with the managing underwriter selected by the Purchaser
whose Registrable Securities are being registered pursuant to Section 8.1. Such
agreement shall be reasonably satisfactory in form and substance to the
Corporation, each such person and such managing underwriter, and shall contain
such representations, warranties and covenants by the Corporation and such other
terms as are customarily contained in agreements of that type used by the
underwriter. Such persons shall be parties to any underwriting agreement
relating to an underwritten sale of their Registrable Securities and may, at
their option, require that any or all of the representations, warranties and
covenants of the Corporation to or for the benefit of such underwriter shall
also be made to and for the benefit of such persons. Such persons shall not be
required to make any representations or warranties to or agreements with the
Corporation or the underwriter except as they may relate to such persons, their
shares and their intended methods of distribution.

     8.5. Road Show.

     In connection with any underwritten public offering concerning the
Purchaser, the Corporation will participate in road-shows regarding such
offering.

     8.6. Reserved.

Section 9. Conditions to Each Closing.

     9.1. Conditions of Each Party.

     The respective obligations of each of the Corporation and the Purchaser to
consummate the transactions contemplated hereby are subject to the fulfillment,
at or prior to the Closing, of each of the following conditions, any or all of
which may be waived in whole or in part to the extent permitted by applicable
law;

          (a) All filings required to be made, and all consents, approvals,
     permits and authorizations required to be obtained, prior to the Closing,
     from any Governmental Authorities

                                       27
<PAGE>

     in connection with the execution and delivery by the parties of the
     Documents and the consummation of the transactions contemplated thereby
     shall have been made or obtained; and

          (b) No court or governmental or regulatory authority of competent
     jurisdiction shall have enacted, issued, promulgated, enforced or entered
     any statute, rule, regulation, judgment, decree, injunction or other order
     (whether temporary, preliminary or permanent) or taken any action that
     prohibits the consummation of the transactions contemplated by this
     Agreement; provided, however, that any party invoking this condition shall
     use its reasonable best efforts to have any such judgment, decree,
     injunction or order vacated.

     9.2. Conditions to Obligations of the Purchaser.

     The obligations to be performed by the Purchaser under this Agreement at or
after the Closing are subject to the satisfaction at or prior to each of the
Closing of the following conditions, unless waived by the Purchaser:

          (a) Material Adverse Effect. There shall not have been any event which
     has or is reasonably likely to have a Material Adverse Effect.

          (b) Accuracy of Representations and Warranties. Each of the
     representations and warranties of the Corporation contained in this
     Agreement and in any certificate or other writing delivered by the
     Corporation pursuant hereto qualified as to materiality shall be true and
     correct, and those not so qualified shall be true and correct in all
     material respects, in each case at and as of the Closing Date as if made at
     and as of such respective times (except to the extent it relates to a
     particular date).

          (c) Performance of Covenants. The Corporation shall have performed in
     all material respects all covenants and agreements required to be performed
     by it under this Agreement and each other Document.

          (d) Class E Certificate of Designation. Prior to the Closing, the
     Class E Certificate of Designation shall have been filed with and accepted
     by the Secretary of State of the State of Minnesota and shall have become
     effective.

          (e) Stock Certificates. At the Closing Stock certificates representing
     the Class E Preferred Stock sold at such closing shall have been delivered
     by the Corporation to the Purchaser.

          (f) Use of Proceeds. At the Closing the Purchaser shall have received
     a certificate of the Corporation describing in reasonable detail the
     proposed use of proceeds received by the Corporation upon the sale of the
     Shares.

          (g) Legal Opinion. Purchaser shall have received an opinion dated as
     of the Closing Date of Willkie Farr & Gallagher, in a form and substance
     attached hereto as Exhibit C.

                                       28
<PAGE>

          (h) Officer's Certificate. At the Closing the Purchaser shall receive
     a certificate from an officer of the Corporation to the effect that all
     conditions set forth in this Section 9.2 shall have been satisfied.

          (i) Required Consents and Approvals. Prior to the Closing Date, the
     Corporation shall have received all consents and approvals of third
     parties, if any, required to consummate the transactions contemplated by
     this Agreement so that such consummation shall not conflict with or cause a
     breach of or default under any agreement or other obligation binding upon
     the Corporation, including without limitation all such consents and
     approvals required with respect to its obligations for borrowed money and
     under its Articles of Incorporation and Certificates of Designation.

     9.3. Conditions to Obligations of the Corporation.

     The obligations to be performed by the Corporation under this Agreement at
or after the Closing are subject to the satisfaction at or prior to the Closing
and the Option Closing, if any, of the following conditions, unless waived by
the Corporation:

          (a) Accuracy of Representations and Warranties. Each of the
     representations and warranties of the Purchaser contained in this Agreement
     and in any certificate or other writing delivered by the Purchaser pursuant
     hereto qualified as to materiality shall be true and correct, and those not
     so qualified shall be true and correct in all material respects, in each
     case at and as of the Closing Date as if made at and as of such respective
     times (except to the extent it relates to a particular date);

          (b) Performance of Covenants. The Purchaser shall have performed in
     all material respects all covenants and agreements required to be performed
     by it under this Agreement and each other Document to which it is a party.

Section 10. Termination.

     This Agreement may be terminated and the transactions contemplated hereby
may be abandoned at any time prior to the Closing:

          (a) by joint written agreement of the Corporation and the Purchaser;

          (b) by the Corporation, if any Purchaser has breached any
     representation, warranty, covenant or agreement contained in this Agreement
     and has not cured such breach within ten (10) business days after written
     notice to Purchaser (provided that the Corporation is not then in material
     breach of the terms of this Agreement; and provided further that no cure
     period shall be required for a breach which by its nature cannot be cured);

          (c) by the Purchaser, if the Corporation has breached any
     representation, warranty, covenant or agreement contained in this Agreement
     and has not cured such breach within ten (10) business days after written
     notice to the Corporation (provided that the Purchaser is not then in
     material breach of the terms of this Agreement; and provided further that
     no cure period shall be required for a breach which by its nature cannot be
     cured);

                                       29
<PAGE>

          (d) by any party, if the Closing has not occurred on or before March
     31, 2000; provided, however, that a party may not terminate this Agreement
     pursuant to this Section if the failure of such party to fulfill any of its
     obligations hereunder shall have been the principal reason that the Closing
     shall not have occurred on or before said date;

          (e) by any party if there shall be a change of law or regulation that
     makes consummation of the transactions contemplated hereby illegal or
     otherwise prohibited or if consummation of the transactions contemplated
     hereby would violate any nonappealable, final order, decree or judgment of
     any court or governmental body having competent jurisdiction; or

The party desiring to terminate this Agreement pursuant to the above-referenced
clauses shall give notice of such termination to the other parties hereto.

     10.1. Effect of Termination.

          (a) If this Agreement is terminated, such termination shall be without
     liability of either party (or any shareholder, director, officer, employee,
     agent, consultant or representative of such party) to the other parties to
     this Agreement; provided that if such termination shall result from the (i)
     willful failure by any party to fulfill a condition to the performance of
     the obligations of the other parties, (ii) failure by any party to perform
     a covenant of this Agreement, (iii) breach by any party hereto of any
     representation, warranty, covenant or agreement contained herein, or (iv) a
     Closing Failure by any party, such party shall be fully liable for any and
     all damages incurred or suffered by the other parties as a result of such
     failure or breach.

Section 11. Miscellaneous

     11.1. Survival.

     The representations, warranties, covenants and other agreements contained
herein, shall survive the Closing and the consummation of the transactions
contemplated hereby. No right of the Purchaser for indemnification hereunder
shall be affected by any examination made for or on behalf of the Purchaser, the
knowledge of any of the Purchaser's officers, directors, shareholders, employees
or agents, or the acceptance by the Purchaser of any certificate or opinion.

     11.2. Indemnification.

          (a) The Corporation shall indemnify, defend and hold the Purchaser and
     its officers, directors, employees, shareholders, partners, members,
     affiliates and agents harmless against all Liability, loss or damage,
     together with all reasonable costs and expenses related thereto (including
     reasonable legal fees and expenses), relating to or arising from the
     untruth, inaccuracy or breach of any of the representations, warranties or
     agreements of the Corporation contained in this Agreement.

          (b) The Purchaser shall indemnify, defend and hold the Corporation and
     its respective officers, directors, employees, shareholders, partners,
     members, affiliates and agents harmless against all Liability, loss or
     damage, together with all reasonable costs and expenses related thereto
     (including reasonable legal fees and expenses), relating to or arising from
     the

                                       30
<PAGE>

     untruth, inaccuracy or breach of any of the representations, warranties or
     agreements of the Purchaser contained in this Agreement.

          (c) Promptly after receipt by any party entitled to indemnification
     under either Section 11.2(a) or Section 11.2(b) (an "indemnified party") of
     notice of the commencement of any action involving a claim which may give
     rise to a claim for indemnity under the preceding paragraphs of this
     Section, the indemnified party will give written notice to the party
     against whom indemnification is sought (the "indemnifying party") of the
     commencement of such action. In case any such action is brought against an
     indemnified party, the indemnifying party will be entitled to participate
     in and to assume the defense thereof, jointly with any other indemnifying
     party similarly notified to the extent that it may wish, with counsel
     reasonably satisfactory to such indemnified party, and after notice from
     the indemnifying party to such indemnified party of its election so to
     assume the defense thereof, the indemnifying party shall not be responsible
     for any legal or other expenses subsequently incurred by the indemnified
     party in connection with the defense thereof; provided, however, that if
     any indemnified party shall have reasonably concluded that there may be one
     or more legal or equitable defenses available to it which are additional to
     or conflict with those available to the indemnifying party, or that such
     claim or litigation involves or could have an effect upon matters beyond
     the scope of the indemnity agreement provided in this Section, the
     indemnifying party shall not have the right to assume the defense of such
     action on behalf of the indemnified party and the indemnifying party shall
     reimburse the indemnified party and any person controlling the indemnified
     party for that portion of the fees and expenses of any counsel retained by
     the indemnified party which is reasonably related to the matters covered by
     the indemnity agreement provided in this Section.

          (d) If the indemnification provided for in this Section is held by a
     court of competent jurisdiction to be unavailable to an indemnified party
     with respect to any loss, claim, damage, liability or action referred to
     herein, then the indemnifying party, in lieu of indemnifying the
     indemnified party hereunder, shall contribute to the amounts paid or
     payable by the indemnified party as a result of such loss, claim, damage,
     liability or action in such proportion as is appropriate to reflect the
     relative fault of the indemnifying party on the one hand and of the
     indemnified party on the other in connection with the statements or
     omissions which resulted in such loss, claim, damage or liability as well
     as any other relevant equitable considerations. The amount paid or payable
     to an indemnified party as a result of the losses, claims, damages,
     liabilities or expenses referred to above shall be deemed to include any
     legal or other expenses reasonably incurred in connection with
     investigating or defending the same.

          (e) The indemnification provided for under this Agreement will remain
     in full force and effect regardless of any investigation made by or on
     behalf of the indemnified party or any officer, director or controlling
     person of the indemnified party and will survive the transfer of
     securities.

     11.3. Nominee; Benefits.

     All references to Purchaser in this Agreement shall include the person or
persons for whom the Purchaser is a nominee, and the benefits of and rights and
obligations under the Agreement shall accrue to such person or persons which
have a beneficial interest in the Class E

                                       31
<PAGE>

Preferred Stock being acquired hereunder and for whom the Purchaser is a
nominee. Upon request, the Corporation shall provide separate stock certificates
for each person or persons which have a beneficial interest in the Class E
Preferred Stock being acquired hereunder and for whom the Purchaser is a
nominee. The Purchaser makes the representations in Section 5 for all such
persons for whom the Purchaser is a nominee.

     11.4. Assignment; Parties in Interest.

     This Agreement shall bind and inure to the benefit of the parties and each
of their respective successors and permitted assigns (it being understood that
this Agreement may be assigned by the Purchaser without the consent of any
person solely in connection with the transfer of Shares).

     11.5. Entire Agreement.

     This Agreement (including all Schedules and Exhibits hereby) together with
the other Documents contain the entire understanding of the parties with respect
to the subject matter hereof and supersedes all prior agreements and
understandings among the parties with respect to such subject matter.

     11.6. Notices.

     All notices, claims, certificates, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if personally delivered or if sent by nationally-recognized overnight
courier, by telecopy, or by registered or certified mail, return receipt
requested and postage prepaid, addressed as follows:

          (a)  if to the Corporation:

                    WAM!NET INC.
                    655 Lone Oak Drive, Building A
                    Eagan, Minnesota 55121
                    Attention: Edward J. Driscoll, III, President
                    Telephone: (651) 256-2165
                    Facsimile: (651) 994-9591

               with a copy to:

                    Willkie Farr & Gallagher
                    787 Seventh Avenue
                    New York, NY  10019-6099
                    Attention: Daniel D. Rubino, Esq.
                    Telephone: (212) 728-8000
                    Facsimile: (212) 728-8111

          (b)  if to the Purchaser:

                                       32
<PAGE>

                    Cerberus Partners, L.P.
                    450 Park Avenue
                    New York, NY 10022
                    Attention: General Partner
                    Telephone: (212) 891-2100
                    Telecopier: (212) 750-5212

               In any case, with a copy to:

                    Schulte Roth & Zabel LLP
                    900 Third Avenue
                    New York, NY  10022
                    Attention: Peter Halasz
                    Telephone:  (212) 756-2238
                    Telecopier:  (212) 593-5955

or to such other address as the party to whom notice is to be given may have
furnished to the other parties in writing in accordance herewith. Any such
notice or communication shall be deemed to have been received (a) in the case of
personal delivery, on the date of such delivery, (b) in the case of
nationally-recognized overnight courier, on the next business day after the date
when sent, (c) in the case of telecopy transmission, when received, and (d) in
the case of mailing, on the date of receipt.

     11.7. Amendments.

     The terms and provisions of this Agreement may only be modified or amended
pursuant to an instrument signed by all of the parties hereto.

     11.8. Counterparts.

     This Agreement may be executed in any number of counterparts, and each such
counterpart shall be deemed to be an original instrument, but all such
counterparts together shall constitute but one agreement.

     11.9. Headings.

     The section and paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

     11.10. Governing Law.

     Except as to matters governed by the MBCA, this Agreement shall be governed
by and construed in accordance with the domestic laws of the State of New York,
without giving effect to any law or rule that would cause the laws of any
jurisdiction other than the State of New York to be applied.

     11.11. Jurisdiction.

                                       33
<PAGE>

     The parties hereto agree that any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in connection
with, this Agreement or the transactions contemplated hereby may only be brought
in the United States District Court for the Southern District of New York or any
New York State court sitting in New York City, and each of the parties hereby
consents to the exclusive jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding and
irrevocably waives, to the fullest extent permitted by law, any objection which
it may now or hereafter have to the laying of the venue of any such suit, action
or proceeding in any such court or that any such suit, action or proceeding
which is brought in any such court has been brought in an inconvenient forum.
Process in any such suit, action or proceeding may be served on any party
anywhere in the world, whether within or without the jurisdiction of any such
court. Without limiting the foregoing, each party agrees that service of process
on such party as provided in the Section entitled "Notices" shall be deemed
effective service of process on such party.

     11.12. No Waiver.

     No delay by or on behalf of an Purchaser in exercising any rights conferred
hereunder, and no course of dealing between an Purchaser and the Corporation
shall operate as a waiver of any right granted hereunder, unless expressly
waived in writing by the party whose waiver is alleged.

     11.13. Binding Effect

     All covenants, representations, warranties and other stipulations in this
Agreement and other documents referred to herein, given by or on behalf of any
of the parties hereto, shall bind and inure to the benefit of the respective
successors, heirs, personal representatives and assigns of the parties hereto.

     11.14. Cumulative Powers.

     No remedy herein conferred upon the Purchaser or any holder of the Class E
Preferred Stock is intended to be exclusive of any other remedy, and each such
remedy shall be cumulative and in addition to every other remedy given hereunder
or now or hereafter existing at law, or in equity or by statue or otherwise.

                                       34
<PAGE>

     IN WITNESS WHEREOF, the parties have executed and delivered this Stock
Purchase Agreement on the date first above written.

                                        WAM!NET INC.

                                        By:  /s/ Edward J. Driscoll III
                                           -----------------------------------
                                           Name:
                                           Title:
                                           Address: 655 Lane Oak Drive
                                                    Building A
                                                    Eagan, Minnesota  55121

                                        CERBERUS PARTNERS, L.P.

                                              by its General Partner
                                              CERBERUS ASSOCIATES, L.L.C.

                                        By:  /s/ Stephen A. Feinberg
                                           -----------------------------------
                                           Name:    Stephen A. Feinberg
                                           Title:   Managing Member
                                           Address: 450 Park Avenue
                                                    New York, NY 10022

                                       35
<PAGE>

                                      Index
                                      -----

         Exhibit A               Statements of Rights and Preferences of Class
                                      E Preferred Stock
         Exhibit C               Willkie Farr & Gallagher Legal Opinion

         Schedule I              Certain Management
         Schedule 4.1(a)         Articles of Incorporation and Bylaws
         Schedule 4.1(b)         List of Subsidiaries
         Schedule 4.5(a)         Designation and Classes of Capital Stock
         Schedule 4.5(a)(vi)     Right of First Refusal Agreements
         Schedule 4.5(b)         Options, Warrants and Convertible Securities
         Schedule 4.5(c)(i)      Purchase Agreements
         Schedule 4.5(c)(ii)     Registration Rights Agreements
         Schedule 4.5(e)         Record Holders
         Schedule 4.7            Financial Statements
         Schedule 4.10(a)        Material Contracts
         Schedule 4.12           Real Property
         Schedule 4.13           Intellectual Property
         Schedule 4.14           License to Provide Communications Services
         Schedule 4.15           Litigation
         Schedule 4.18           Employee Pension Benefit Plans
         Schedule 4.20           Related Transactions
         Schedule 8.2            Piggy-back Registration Rights<PAGE>

                                                                    EXHIBIT 4.36

================================================================================

                          SECURITIES PURCHASE AGREEMENT

                          dated as of February 3, 2000,

                                      among

                                  WAM!NET INC.

                                       and

                             SILICON GRAPHICS, INC.

================================================================================
<PAGE>

                                TABLE OF CONTENTS

                                                                           Page
                                                                           ----

SECTION 1. AUTHORIZATION....................................................1

SECTION 2. CLOSING..........................................................1

SECTION 3. SALE AND PURCHASE OF SHARES......................................1
      3.1. Shares...........................................................1

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE CORPORATION................2
      4.1. Organization; Subsidiaries.......................................2
      4.2. Qualification; Good Standing.....................................2
      4.3. Corporate Authorization; Enforceability..........................3
      4.4. No Conflict......................................................3
      4.5. Capitalization...................................................3
      4.6. Securities Laws; Applicable Corporation Laws.....................6
      4.7. Financial Information............................................6
      4.8. Absence of Changes...............................................6
      4.9. Reserved.........................................................8
     4.10. Agreements.......................................................8
     4.11. Title to Assets.................................................10
     4.12. Real Property...................................................10
     4.13. Intellectual Property Rights; Proprietary Information
             of Third Parties..............................................10
     4.14. Compliance with Laws; Governmental Authorizations...............11
     4.15. Litigation......................................................12
     4.16. Environmental Matters...........................................12
     4.17. Tax Matters.....................................................12
     4.18. Employee Benefit Plans..........................................13
     4.19. Insurance.......................................................14
     4.20. Related Transactions............................................14
     4.21. Offering of the Shares..........................................14
     4.22. Disclosure......................................................14
     4.23. Reserved........................................................15
     4.24. Reserved........................................................15
     4.25. Brokers and Finders.............................................15
     4.26. Year 2000 Compliance............................................15
     4.27. Reserved........................................................15

SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.................16
      5.1. Due Authorization...............................................16
      5.2. Investment Representations......................................16
      5.3. Brokers and Finders.............................................17
      5.4. Investor Sophistication.........................................17
      5.5. Reserved........................................................17

SECTION 6. COVENANTS OF THE CORPORATION AND THE PURCHASER..................17

                                       i
<PAGE>

      6.1. Regulatory Approvals; Reasonable Best Efforts;
             Further Assurances............................................17
      6.2. Certain Filings.................................................17
      6.3. Confidentiality.................................................18
      6.4. Public Announcements............................................18

SECTION 7. COVENANTS OF THE CORPORATION....................................18
      7.1. Certificate of Designation......................................18
      7.2. Restrictions Pending the Closing................................19
      7.3. Reservation of Shares...........................................19
      7.4. Use of Proceeds.................................................19
      7.5. Access to Records...............................................19
      7.6. Reserved........................................................19
      7.7. Financial Reporting and other Information.......................19
      7.8. Payment of Obligations..........................................20
      7.9. Insurance.......................................................21
     7.10. Certain Notices.................................................21
     7.11. Conduct of Business.............................................21
     7.12. Related Transactions............................................21
     7.13. Internal Controls...............................................21
     7.14. Reserved........................................................22
     7.15. Reserved........................................................22
     7.16. Purchaser Lock-Up...............................................22
     7.17. Reserved........................................................22
     7.18. Consents........................................................22

SECTION 8. REGISTRATION RIGHTS OF THE PURCHASER............................22
      8.1. Demand Registration.............................................22
      8.2. "Piggy-Back" Registration.......................................23
      8.3. General Terms...................................................24
      8.4. Underwriting Agreement..........................................25
      8.5. Road Show.......................................................25
      8.6. Reserved........................................................25

SECTION 9. CONDITIONS TO EACH CLOSING......................................25
      9.1. Conditions of Each Party........................................25
      9.2. Conditions to Obligations of the Purchaser......................26
      9.3. Conditions to Obligations of the Corporation....................27

SECTION 10. TERMINATION....................................................27
      10.1. Effect of Termination..........................................28

SECTION 11. MISCELLANEOUS..................................................28
      11.1. Survival.......................................................28
      11.2. Indemnification................................................28
      11.3. Reserved.......................................................29
      11.4. Assignment; Parties in Interest................................29
      11.5. Entire Agreement...............................................30
      11.6. Notices........................................................30

                                       ii
<PAGE>

      11.7. Amendments.....................................................31
      11.8. Counterparts...................................................31
      11.9. Headings.......................................................31
     11.10. Governing Law..................................................31
     11.11. Jurisdiction...................................................31
     11.12. No Waiver......................................................32
     11.13. Binding Effect.................................................32
     11.14. Cumulative Powers..............................................32

INDEX......................................................................38

                                       iii
<PAGE>

        SECURITIES PURCHASE AGREEMENT, dated as of February 3, 2000, among
WAM!NET INC., a Minnesota corporation (the "Corporation"), and Silicon Graphics,
Inc., a Delaware corporation ("SGI").

         WHEREAS, the Corporation desires to sell to SGI 10,000 shares (the
"Shares") of its Class F Convertible Preferred Stock, $.01 par value (the "Class
F Preferred Stock"), and SGI desires to purchase the Shares from the Corporation
upon the terms and subject to the conditions set forth below.

         NOW THEREFORE, the parties hereto agree as follows:

Section 1. Authorization.

         The Corporation has authorized the issuance and sale, upon the terms
and subject to the conditions set forth in this Agreement, of the Shares for a
purchase price of $1000.00 per Share (the "Per Share Price") or $10.0 million in
the aggregate (the "Purchase Price"). The powers, designations, preferences and
relative, participating, optional or other rights, and the qualifications,
limitations, and restrictions of the Class F Preferred Stock are set forth in
the Statement of Rights and Preferences of Class F Preferred Stock ("Class F
Certificate of Designation") attached hereto as Exhibit A.

Section 2. Closing.

         Unless this Agreement shall have been terminated and the transactions
herein contemplated shall have been abandoned in accordance with this Agreement,
the closing of the sale and purchase of the Shares and the other transactions
contemplated hereby (the "Closing") shall be held at 10:00 a.m. on the date
which is the third business day after the conditions in Section 9 have been
satisfied or waived (other than those of such conditions which are customarily
satisfied at a closing), at the office of Willkie Farr & Gallagher, 787 Seventh
Avenue, New York, New York 10019 (or at such other time, date and place as the
parties may mutually agree). The date on which the Closing actually occurs is
hereinafter referred to as the "Closing Date."

Section 3. Sale and Purchase of Shares.

         3.1. Shares.

         At the Closing, the Corporation shall issue, sell and deliver to SGI
10,000 Shares of Class F Preferred Stock and SGI shall deliver to the
Corporation, as full payment therefor, the Purchase Price in cash by wire
transfer of immediately available funds to such bank account or bank accounts
designated by the Corporation.
<PAGE>

Section 4. Representations and Warranties of the Corporation.

         The Corporation hereby represents and warrants to the Purchaser as of
the date hereof and as of the Closing Date that:

         4.1. Organization; Subsidiaries.

                  (a) Organization. The Corporation and each Subsidiary (as
         defined below) is a corporation duly organized and validly existing
         under the laws of the jurisdiction of its incorporation and has all
         requisite corporate power and authority to own, lease and operate the
         assets used in its business, to carry on its business as presently
         conducted, to enter into the Documents (as hereinafter defined), to
         perform its obligations thereunder, and to consummate the transactions
         contemplated thereby. Attached as Schedule 4.1(a) are correct and
         complete copies of the Articles of Incorporation of the Corporation
         including all amendments and certificates of Designation, and the
         By-laws of the Corporation and each Subsidiary, each as in effect on
         the date hereof (collectively, the "Organizational Documents"). No
         amendments, revisions or waivers of any provisions of any
         Organizational Documents have occurred, are in the process of occurring
         or otherwise have been requested. For purposes of this Agreement,
         "Documents" collectively means (i) this Agreement and (ii) the Class F
         Certificate of Designation.

                  (b) Subsidiaries. Set forth on Schedule 4.1(b) hereto is a
         complete list of all of the subsidiaries of the Corporation (each a
         "Subsidiary"). Except as set forth on Schedule 4.1(b) hereto, the
         Corporation does not own, directly or indirectly, any capital stock or
         other equity securities of any corporation, nor does the Corporation
         have any direct or indirect ownership interest, including interests in
         partnerships and joint ventures, in any other entity or business and
         there are no agreements to acquire such interests. Each Subsidiary has
         been duly organized, is validly existing and in good standing under the
         laws of its respective jurisdiction of incorporation and is duly
         qualified and in good standing as a foreign corporation, and is
         authorized to do business, in all jurisdictions in which the character
         of its properties or the nature of its businesses requires such
         qualification or authorization, except for qualifications and
         authorizations the lack of which, individually or in the aggregate,
         would not reasonably be expected to result in a material adverse effect
         upon the business, prospects, properties, liabilities, assets,
         operations, results of operations, condition (financial or otherwise),
         or affairs of the Corporation or result in the loss from employment of
         any Principal Executive Officer as such term is defined on Schedule I
         (a "Material Adverse Effect"). Each Subsidiary has the requisite power
         and authority to own and hold its properties and to carry on its
         business as now being conducted. Except as disclosed on Schedule 4.1(b)
         hereto: (i) all of the outstanding shares of capital stock of each
         Subsidiary are owned beneficially and of record by the Corporation,
         another Subsidiary or any combination thereof, in each case free and
         clear of any liens, charges, restrictions, claims or encumbrances other
         than restrictions on transfer imposed by the Securities Act of 1933, as
         amended (the "Securities Act"); and (ii) there are no outstanding
         subscriptions, warrants, options, convertible securities or other
         rights (contingent or other) pursuant to which any Subsidiary is or may
         become obligated to issue any shares of its capital stock to any person
         other than the Corporation or a Subsidiary.

         4.2. Qualification; Good Standing.

                                      -2-
<PAGE>

         Each of the Corporation and every Subsidiary is authorized to do
business and is in good standing as a foreign corporation in each jurisdiction
the laws of which require such respective entity to be so authorized, except
where the failure to be so qualified or in good standing could not reasonably be
expected to have a Material Adverse Effect.

         4.3. Corporate Authorization; Enforceability.

         The Corporation has taken all corporate action necessary to authorize
its execution and delivery of the Documents, the performance of its obligations
thereunder, and its consummation of the transactions contemplated thereby. Each
Document has been executed and delivered by an officer of the Corporation in
accordance with such authorization. Each Document constitutes a valid and
binding obligation of the Corporation, enforceable in accordance with its terms,
subject to applicable bankruptcy, reorganization, fraudulent conveyance,
insolvency, moratorium, and similar laws now or hereafter in effect affecting
creditors' rights generally and to general principles of equity.

         4.4. No Conflict.

         The execution and delivery by the Corporation of the Documents, its
consummation of the transactions contemplated thereby, and its compliance with
the provisions thereof, will not other than in instances which could not
reasonably be expected to have a Material Adverse Effect, (i) violate or
conflict with any of the Organizational Documents, (ii) violate, conflict with,
result in a breach of, constitute a default under, or give rise to any right of
termination, cancellation, or acceleration (with or without notice or lapse of
time, or both) under any agreement, lease, security, license, permit, or
instrument to which the Corporation or any Subsidiary is a party, or to which it
or any of them or any of their respective assets or businesses are subject,
(iii) result in the imposition of any Encumbrance (as hereinafter defined) on
any asset of the Corporation, (iv) violate or conflict with any Laws applicable
to the Corporation or its properties or assets, or (v) require any consent,
approval or other action of, notice to, or filing with any entity or person
(governmental or private), except for the filing of the Class F Certificate of
Designations and those that have been obtained or made. For purposes of this
Agreement, "Encumbrance" means any security interest, mortgage, lien, pledge,
charge, easement, reservation, clouds, equities, rights of way, options, rights
of first refusal and any other encumbrances, whether or not relating to the
extension of credit or the borrowing of money. For purposes of this Agreement,
"Laws" means all laws, statutes, rules, regulations, ordinances, bylaws, writs,
Permits, Orders and other legislative, administrative or judicial restrictions.

         4.5. Capitalization.

                  (a) Capitalization.

                           (i) As of the date hereof, the authorized capital
                  stock of the Corporation consists of 500,000,000 shares, the
                  Designation and classes of which are set forth on Schedule
                  4.5(a) hereto. The Corporation does not hold any of its shares
                  in treasury.

                                      -3-
<PAGE>

                           (ii) As of January 31, 2000, 9,494,797 shares of the
                  Corporation's common stock, par value $.01 per share ("Common
                  Stock"), 115,206 shares of the Corporation's Class A Preferred
                  Stock par value $10.00 per share (the "Class A Preferred
                  Stock"), 5,710,425 shares of the Corporation's Class B
                  Preferred Stock par value $.01 per share (the "Class B
                  Preferred Stock"), 878,527 shares of the Corporation's Class C
                  Preferred Stock, par value $.01 per share (the "Class C
                  Preferred Stock"), and 2,196,317 shares of the Corporation's
                  Class D Preferred Stock, par value $.01 per share (the "Class
                  D Preferred Stock") are issued and outstanding and have been
                  validly issued and are fully paid and nonassessable and are
                  not subject to preemptive rights. Except as set forth herein,
                  there are no other shares of capital stock of the Corporation
                  outstanding. As of the date hereof, the Class B Preferred
                  Stock, Class C Preferred Stock and Class D Preferred Stock are
                  convertible into 5,710,425, 878,527 and 2,196,317 shares of
                  Common Stock, respectively. The Corporation has also entered
                  into an agreement, dated as of December 31, 1999, with Winstar
                  Communications, Inc. with respect to the sale of 50,000 shares
                  of the Corporation's Class E Convertible Preferred Stock, $.01
                  par value (the "Class E Preferred Stock"), and an option to
                  acquire an additional 50,000 shares of the Corporation's Class
                  E Convertible Preferred Stock. The 50,000 shares of Class E
                  Preferred Stock subject to sale are convertible into 9,689,922
                  shares of Common Stock, representing an initial conversion
                  price of $5.16 per share of Common Stock. Upon issuance of the
                  Common Stock underlying such preferred shares, in accordance
                  with their respective Certificates of Designation, such Common
                  Stock will be validly issued, fully paid and non-assessable.

                  (b) Options, Warrants, Convertible Securities. Except as set
         forth on Schedule 4.5(a) hereto, as of the date hereof there are no
         outstanding subscriptions, options, warrants or other agreements or
         rights of any kind to acquire any additional shares of capital stock of
         the Corporation or other instruments or securities convertible into or
         exchangeable for, or which otherwise confer on the holder thereof any
         right to acquire, any such additional shares of capital stock, nor is
         the Corporation committed to issue any such option, warrant, right or
         security. Except as set forth on Schedule 4.5(b) hereto, the
         Corporation has no obligation (contingent or other) to purchase, redeem
         or otherwise acquire any of its equity securities or any interest
         therein or to pay any dividend or make any other distribution in
         respect thereof. Schedule 4.5(a) additionally sets forth (i) all of the
         outstanding warrants of the Corporation, specifying the exercise prices
         and periods of such warrants and amount of Common Stock issuable upon
         exercise of such warrants; and (ii) stock options of the Corporation,
         specifying the exercise prices and periods of such options and the
         amount of Common Stock issuable upon exercise of the stock option held
         by each such holder. As of January 31, 2000, 96,605,853 shares of
         Common Stock are issuable upon exercise or conversion of all of the
         Corporation's outstanding options, warrants, and other rights of any
         kind to acquire shares of the Corporation's Common Stock (which number
         includes the number of shares of Common Stock underlying the shares of
         preferred stock to be issued to Winstar Communications, Inc. in
         connection with its equity investment in the Company but does not
         include the Class B Warrants issued in September 1997 to MCI WorldCom,
         Inc.).

                  (c) Agreements.

                                      -4-
<PAGE>

                           (i) Except as set forth in Schedule 4.5(c)(i), as of
                  the date hereof, there are no agreements relating to the
                  purchase or sale of capital stock between the Corporation and
                  any of its shareholders or affiliates, and to the best of the
                  Corporation's knowledge, there are no such agreements among
                  any of its shareholders and other parties.

                           (ii) Except as contemplated hereby and as set forth
                  in Schedule 4.5(c)(ii), there are no agreements or
                  understandings granting to any person or entity any right to
                  cause the Corporation or any Subsidiary to effect a
                  registration under the Securities Act of 1933, as amended
                  ("Securities Act"), of any shares of the Corporation's capital
                  stock.

                           (iii) Except as set forth on Schedule 4.5(c)(iii),
                  there are no voting trusts, voting agreements, proxies or
                  other agreements, instruments or understandings with respect
                  to the voting of the capital stock of the Corporation between
                  the Corporation and any of its shareholders or affiliates and
                  to the best of the Corporation's knowledge, there are no such
                  agreements among any of its shareholders and any other
                  parties.

                  (d) Due Authorization. The Shares are duly authorized and,
         when issued and paid for pursuant to the terms of this Agreement, will
         be validly issued, fully paid and nonassessable and will have the
         rights, preferences and privileges specified in the Class F Certificate
         of Designation. The shares of the Corporation's Common Stock issuable
         upon conversion of the Shares ("Conversion Shares") are duly authorized
         and have been reserved for issuance and, when issued upon conversion in
         accordance with the terms of the Class F Certificate of Designation,
         will be validly issued, fully paid and nonassessable, and will be free
         and clear of all liens, encumbrances and restrictions (other than the
         restrictions on transfer imposed by the Securities Act or any other
         applicable federal or state securities laws, and the rules and
         regulations promulgated thereunder). Neither the issuance, sale or
         delivery of the Shares nor the contemplated issuance or delivery of the
         Conversion Shares is subject to or will trigger any preemptive or other
         similar right of shareholders of the Corporation, any anti-dilution
         right or right of first refusal or other preemptive or similar right in
         favor of any person, in each case except for rights that have been
         listed on Schedule 4.5(d).

                  (e) Securityholders. Schedule 4.5(a) sets forth the name and
         address of each record holder of more than five-percent of the
         outstanding shares of any of the Common Stock, the Class A Preferred
         Stock, the Class B Preferred Stock, the Class C Preferred Stock, the
         Class D Preferred Stock and the Class E Preferred Stock and the number
         of such shares of Common Stock or Preferred Stock held by each such
         holder.

                  (f) Reservation of Shares. The Corporation has reserved, and
         at all times from and after the date hereof will keep reserved, free
         from preemptive rights, out of its authorized but unissued shares of
         Common Stock, solely for the purpose of effecting the conversion of all
         shares of Class A Preferred Stock, Class B Preferred Stock, Class C
         Preferred Stock, Class D Preferred Stock, Class E Preferred Stock and
         Class F Preferred Stock, sufficient shares of Common Stock to provide
         for the conversion of all such shares of Preferred Stock.

                                      -5-
<PAGE>

         4.6. Securities Laws; Applicable Corporation Laws.

                  (a) The sale of the Shares contemplated hereby is exempt from
         registration under the Securities Act. The issuance of all other shares
         of capital stock of the Corporation on or before the date hereof has
         been made in compliance with the Securities Act and all applicable
         state securities or blue sky laws.

                  (b) The sale of the Shares contemplated hereby and the other
         transactions contemplated hereby are in compliance with all applicable
         laws, including the Minnesota Business Corporation Act, and any
         consents which are required to be obtained pursuant to such laws have
         either been obtained or waived in writing.

         4.7. Financial Information.

                  (a) Schedule 4.7 sets forth (i) the audited consolidated
         balance sheet of the Corporation at December 31, 1998 (the "Balance
         Sheet") and the related statements of operations, shareholders' equity
         and cash flows of the Corporation for the 12 months then ended and (ii)
         the unaudited consolidated balance sheet of the Corporation at
         September 30, 1999 (the "Interim Balance Sheet") and the related
         unaudited consolidated statements of operations, shareholders' equity
         and cash flows for the Corporation for the 9 months then ended
         (collectively, the "Financial Statements").

                  (b) The Financial Statements: (i) present fairly the financial
         position of the Corporation and the results of operations,
         shareholders' equity and cash flows of the Corporation at the dates and
         for the periods indicated, (ii) are in accordance with the books and
         records of the Corporation which books and records are complete and
         correct and fairly reflect all material transactions of the
         Corporation's business, and (iii) have been prepared in accordance with
         generally accepted accounting principles ("GAAP") consistently applied
         (except as set forth in the notes thereto and subject, in the case of
         unaudited Financial Statements, to normal year-end adjustments, and the
         absence of notes thereto). Except as incurred under agreements on
         Schedule 4.10(a) or as set forth on Schedule 4.7, at the date of the
         Interim Balance Sheet, the Corporation did not have any material
         Liability of any nature or any loss contingency (as such term is used
         in the Statement of Financial Accounting Standards No. 5 issued by the
         Financial Accounting Standards Board in March 1975) that was not
         adequately disclosed or provided for on the Interim Balance Sheet,
         including the notes thereto. For purposes of this Agreement,
         "Liability" means any liability or obligation, whether known or
         unknown, asserted or unasserted, absolute or contingent, accrued or
         unaccrued, liquidated or unliquidated and whether due or to become due,
         regardless of when asserted.

         4.8. Absence of Changes.

                  (a) Since the date of the Interim Balance Sheet there has not
         been:

                           (i) any change in the assets, liabilities or
                  financial condition of the Corporation (on a consolidated
                  basis), except for changes (i) in the ordinary course of

                                      -6-
<PAGE>

                  business or (ii) which in the aggregate have not resulted in
                  and would not reasonably be expected to result in a Material
                  Adverse Effect;

                           (ii) any event or change that would reasonably be
                  expected to result in a Material Adverse Effect, individually
                  or in the aggregate, whether or not insured against;

                           (iii) to the best of the Corporation's knowledge, any
                  damage, destruction or loss (whether or not covered by
                  insurance) affecting any asset of the Corporation in excess of
                  $100,000;

                           (iv) any liability or loss contingency incurred by
                  the Corporation that would have to be disclosed on financial
                  statements (including the notes thereto) (on a consolidated
                  basis) in accordance with GAAP, other than liabilities
                  incurred in the ordinary course of business consistent with
                  past practice;

                           (v) to the best of the Corporation's knowledge, any
                  commitment to borrow money from or provide financial support
                  to any person or entity entered into by the Corporation;

                           (vi) any payment or discharge of any Liability by the
                  Corporation outside the ordinary course of business consistent
                  with past practice to the best of the Corporation's knowledge;

                           (vii) any sale, assignment, license, or other
                  disposition of any asset or right of the Corporation or any
                  Subsidiary outside the ordinary course of business consistent
                  with past practice;

                           (viii) any declaration or payment of any dividend or
                  other distribution with respect to any shares of capital stock
                  of the Corporation, or the direct or indirect acquisition of
                  any equity securities by the Corporation;

                           (ix) any labor trouble, problem or grievance
                  affecting the business of the Corporation other than such
                  matters which would not reasonably be expected to have a
                  Material Adverse Effect;

                           (x) any write-down of the value of any inventory of
                  the Corporation, or any write-off as uncollectible of any
                  accounts or notes receivable of the Corporation, which could
                  reasonably be expected to result in a Material Adverse Effect;

                           (xi) any increase in the direct or indirect
                  compensation of senior officers of the Corporation or any
                  Subsidiary (including, without limitation, any increase
                  pursuant to any bonus, pension, profit-sharing, deferred
                  compensation, or other plan or commitment), in excess of 20%
                  above the prior year;

                           (xii) any capital expenditure or commitment therefor
                  by the Corporation or any Subsidiary for additions to
                  property, plant or equipment in excess of $250,000;

                                      -7-
<PAGE>

                           (xiii) any change in the accounting or tax methods,
                  practices, or assumptions followed by the Corporation or any
                  Subsidiary; or

                           (xiv) any other transaction or event not in the
                  ordinary course of business consistent with past practice.

                  (b) The Corporation's independent accountants have not advised
         the Corporation that the Interim Balance Sheet and the related
         unaudited financial statements (i) do not comply in all material
         respects with the applicable accounting requirements of the Securities
         Act and the related published rules and regulations thereunder and (ii)
         are not in conformity with GAAP.

         4.9. Reserved.

         4.10. Agreements.

                  (a) Schedule 4.10(a) sets forth a list of all material written
         and oral contracts, agreements, licenses, commitments, instruments and
         understandings ("Agreements"), and all Agreements of the following
         types regardless of materiality, to which the Corporation or any
         Subsidiary is a party ("Disclosed Agreements"):

                           (i) individually provide for the future purchase by
                  the Corporation or any Subsidiary of products or services in
                  excess of $50,000 or call for expenditures of the Corporation
                  or any Subsidiary in excess of $50,000, which expenditures or
                  commitments have not been disclosed in the Initial Budget
                  annexed to Schedule 4.10(a) hereto;

                           (ii) provide for the employment by the Corporation or
                  any Subsidiary of any director or officer or consultant (other
                  than for legal or accounting services) earning $100,000 or
                  more for any engagement or provide for any payments or
                  benefits (including severance payments or benefits) to any
                  director, officer or employee;

                           (iii) provide for the borrowing of money or a line of
                  credit by the Corporation or any Subsidiary, or a leasing
                  transaction of a type required to be capitalized by the
                  Corporation in accordance with GAAP;

                           (iv) provide for a strategic relationship regarding
                  the Corporation or any Subsidiary and a third party, including
                  any joint venture, partnership or similar arrangement;

                           (v) provide for the sale, assignment, license, or
                  other disposition of any asset or any material right of the
                  Corporation with a value in excess of $30,000;

                           (vi) provide for the lease by the Corporation or any
                  Subsidiary of any real property;

                                      -8-
<PAGE>

                           (vii) provide for the lease by the Corporation or any
                  Subsidiary of any personal property with a value, or
                  reflecting replacement costs, in excess of $30,000 or
                  involving lease payments in excess of $30,000 per year;

                           (viii) were entered into with any labor union;

                           (ix) provide for a tax sharing;

                           (x) provide for any distribution, agency, or
                  licensing arrangement with the Corporation or any Subsidiary;

                           (xi) require the Corporation to issue dividends or
                  shares of its Common Stock upon exercise of warrants;

                           (xii) restrict the Corporation or any Subsidiary, or
                  any of the officers or employees listed on Schedule
                  4.10(a)(ii), from engaging in any business activity in any way
                  related to the business of the Corporation anywhere in the
                  world, restrict any such person in the performance of his or
                  her obligations and responsibilities to the Corporation or any
                  Subsidiary, or create any other obligation or liability of any
                  such person, in any way related to the business of the
                  Corporation, arising from his or her prior employment;

                           (xiii) grant to any person or entity, other than the
                  Corporation or any Subsidiary, any right, title, or interest
                  in any invention or know-how conceived by employees of the
                  Corporation or any Subsidiary and related to the business of
                  the Corporation;

                           (xiv) provide for a loan guaranty, surety, indemnity,
                  or other financial support by the Corporation or any
                  Subsidiary to any person or entity; or

                           (xv) grant to any person or entity a security
                  interest in any asset or right of the Corporation or any
                  Subsidiary.

                  (b) Each Disclosed Agreement or understanding required to be
         set forth on Schedule 4.10(a) is in full force and effect and
         constitutes a valid and binding obligation of all parties thereto.
         Except as set forth on Schedule 4.10(a), the Corporation and, to the
         extent a Subsidiary is a party, the Subsidiary has performed in all
         material respects the obligations required to be performed by it and is
         not in material default and has not received notice alleging it to be
         in default under any such Disclosed Agreement. To the knowledge of the
         Corporation, there exists no event or condition which, after notice or
         lapse of time, or both, would constitute such a material default under
         any Disclosed Agreement. To the knowledge of the Corporation, there are
         no material defaults by any other party to any such Disclosed
         Agreement. The Corporation has made available to the Purchaser correct
         and complete copies of all Disclosed Agreements set forth on Schedule
         4.10(a).

                                      -9-
<PAGE>

         4.11. Title to Assets.

         Except for properties leased by the Corporation or any Subsidiary, the
Corporation and each Subsidiary has good and marketable title to all assets
reflected on the Interim Balance Sheet as being owned by it, or acquired by it
after the date of the Interim Balance Sheet (except for inventory sold or
otherwise disposed of in the ordinary course of business, and accounts and notes
receivable paid in full, since the date of the Interim Balance Sheet), free and
clear of all Encumbrances, other than Permitted Liens and other than those which
would not reasonably be expected to result in a Material Adverse Effect. Such
assets are in good operating condition and repair, are adequate and suitable for
their intended use in the business of the Corporation and are sufficient for the
conduct of the business except as would not reasonably be expected to result in
a Material Adverse Effect. There does not exist any condition which interferes
with the economic value or use of such assets except as would not reasonably be
expected to result in a Material Adverse Effect. The term "Permitted Liens"
means (i) liens arising by operation of law in the ordinary course of business
that, individually and in the aggregate, do not in any respect interfere with
the use or value of any of the assets subject thereto, (ii) minor imperfections
of title which do not detract from the value of the property affected or impair
the operations of the Corporation, (iii) liens for taxes not yet due and
payable, (iv) liens arising in connection with debt incurred pursuant to and in
accordance with the covenant section, and (v) liens relating to monies borrowed
by the Corporation or any Subsidiary.

         4.12. Real Property.

         Except as disclosed on Schedule 4.12, neither the Corporation nor any
Subsidiary owns or holds, directly or indirectly, any real property. Neither the
Corporation nor any Subsidiary leases, directly or indirectly, any real property
other than as listed on Schedule 4.12.

         4.13. Intellectual Property Rights; Proprietary Information of Third
               Parties.

                  (a) Each of the Corporation and each Subsidiary owns or is
         licensed to use all patents, trademarks, copyrights, service marks, and
         applications and registrations therefor, and all trade names (including
         WAM!NET, WAM!BASE and WAM!PROOF), domain names, URLs, customer lists,
         trade secrets, proprietary processes and formulae, inventions,
         know-how, other confidential and proprietary information, and other
         industrial and intellectual property rights necessary to permit such
         entities to carry on their respective business as presently conducted.
         Schedule 4.13 sets forth a list of all patents, trademarks, copyrights,
         service marks, and applications and registrations therefor, and all
         trade names, domain names or URLs held or owned by the Corporation and
         each Subsidiary and all other proprietary intellectual property rights
         of the Corporation and each Subsidiary. All registered patents,
         copyrights, trademarks, domain name and URL rights and service marks
         listed on Schedule 4.13 are in full force and effect and are not
         subject to any taxes or maintenance fees and the Corporation or a
         Subsidiary has the right to bring infringement Proceedings with respect
         thereto. Neither the Corporation nor any Subsidiary (i) licenses or
         grants to anyone other than to the Corporation or any Subsidiary rights
         of any nature to use any intellectual property right that is material
         to its business, other than certain software and equipment which is
         provided to the Corporation's clients which enable them to access the
         Corporation's network and avail themselves of the Corporation's
         services, (ii)

                                      -10-
<PAGE>

         is not obligated to and does not pay royalties to anyone for use of its
         intellectual property rights, and (iii) does not market or sell any
         product or service that violates any intellectual property right of a
         third party. Except as set forth on such Schedule, there is no pending
         or, to the knowledge of the Corporation, threatened claim or litigation
         against the Corporation or any Subsidiary contesting the right to use
         its intellectual property rights, asserting the misuse of any thereof,
         or asserting the infringement or other violation of any intellectual
         property rights of a third party.

                  (b) All inventions and know-how conceived by employees of the
         Corporation and each Subsidiary, while in the employ of the Corporation
         or such Subsidiary, and related to the business of the Corporation or
         any Subsidiary were "works for hire," and all right, title, and
         interest therein were transferred and assigned to the Corporation or a
         Subsidiary and the Corporation or a Subsidiary has maintained all
         right, title and interest therein without any Encumbrances thereon. The
         Corporation has taken all reasonable security measures to protect the
         secrecy, confidentiality, and value of its trade secrets, proprietary
         processes and formulae, inventions, know-how and other confidential and
         proprietary information.

                  (c) No third party has claimed or, to the Company's knowledge,
         has reason to claim that the Corporation or any Subsidiary has (i)
         violated or may be violating any of the terms or conditions of any
         non-competition or non-disclosure agreement with such third party, (ii)
         disclosed or may be disclosing or utilized or may be utilizing any
         trade secret or proprietary information or documentation of such third
         party or (iii) interfered or may be interfering in the employment
         relationship between such third party and any of its present or former
         employees. Neither the Corporation or any Subsidiary has utilized nor
         proposes to utilize any trade secret or any information or
         documentation proprietary to any other person in violation of existing
         arrangements with such person, and neither the Corporation or any
         Subsidiary has violated any confidential relationship which any such
         person may have had with any third party, in connection with the
         development, manufacture or sale of any product or the development or
         sale of any service of the Corporation or any Subsidiary.

         4.14. Compliance with Laws; Governmental Authorizations.

         Each of the Corporation and each Subsidiary is in compliance in all
respects with all Laws, except for such instances where non-compliance would not
result in a Material Adverse Effect. Each of the Corporation and each Subsidiary
has all permits, licenses, authorizations, registrations, franchises, approvals,
certificates or variances (collectively, "Permits") from each Governmental
Authority that is necessary or advisable in the conduct of its business as
presently conducted except in such cases which would not reasonably be expected
to result in a Material Adverse Effect. For purposes of this Agreement,
"Governmental Authority" means any federal, state, municipal, local or foreign
government and any court, tribunal, administrative agency, commission, board,
agency or other governmental or regulatory authority or agency, whether domestic
or foreign. Neither the Corporation nor any Subsidiary is licensed to provide
communication services under any state, federal or foreign laws nor is any one
of them required to be so licensed.

                                      -11-
<PAGE>

         4.15. Litigation.

         Except as set forth on Schedule 4.15, there are no (i) actions, suits,
claims, investigations or other proceedings (collectively, "Proceedings") by or
before any Governmental Authority or other arbitration or mediation body,
pending or, to the knowledge of the Corporation, threatened against the
Corporation or any Subsidiary, or (ii) judgments, writs, decrees, injunctions,
compliance agreements, or orders of any Governmental Authority or other
arbitration or mediation body, against the Corporation or any Subsidiary.

         4.16. Environmental Matters.

         Each of the Corporation and each Subsidiary is in compliance with all
Laws relating to the protection of the environment (the "Environmental Laws").
Except for the operation of machinery and equipment in the ordinary course of
business in compliance with applicable Environmental Laws, neither the
Corporation nor any Subsidiary has handled, stored or released, or exposed any
person to, any hazardous substance, as defined in 42 U.S.C.A. Section 9601(14)
or any other applicable Environmental Laws (a "Hazardous Substance"). Neither
the Corporation nor any Subsidiary is liable or responsible for clean-up costs,
remedial work or damages in connection with the handling, storage, release, or
exposure by it of any Hazardous Substance except in cases which would not
reasonably be expected to result in a Material Adverse Effect. No claims for
clean-up costs, remedial work or damages have been made by any person or entity
in connection with the handling, storage, release, or exposure by the
Corporation and/or any Subsidiary of any Hazardous Substance.

         4.17. Tax Matters.

                  (a) (i) The Corporation has timely filed or been included in
         all required returns, declarations of estimated tax, reports, and
         statements relating to any Taxes due and payable by it (collectively,
         the "Returns"); (ii) all Returns were correct and complete as of the
         time of filing; (iii) the Corporation has timely paid all Taxes
         required to be paid by it through the date hereof; (iv) the Corporation
         has made provision on its most recent interim balance sheet for all
         Taxes payable by it for all periods prior to the date of such interim
         balance sheet for which no Returns have yet been filed; (v) the
         Corporation has made provision on its books for all Taxes payable by it
         for all periods beginning on or after the date of its most recent
         interim balance sheet for which no Returns have yet been filed; (vi)
         the Corporation has no knowledge of any pending tax audits of any
         Returns; (vii) the Corporation has no knowledge that any deficiency or
         addition to any Taxes has been proposed, asserted or assessed in
         writing against the Corporation; and (viii) the Corporation has not
         granted any extension of the statute of limitations applicable to any
         Return or other claim for Taxes.

                  (b) "Taxes" means, with respect to any person or entity, (i)
         all material Federal, state, local, and foreign taxes, including,
         without limitation, all taxes on or based upon net income, gross
         income, income as specially defined, earnings, profits or selected
         items of income, earnings, or profits, and all gross receipts, sales,
         use, ad valorem, transfer, franchise, license, withholding, payroll,
         employment, excise, severance, stamp, occupation, premium, property, or
         windfall profits taxes, alternative or add-on minimum taxes, customs
         duties, or other

                                      -12-
<PAGE>

         taxes, fees, assessments or charges of any kind, together with any
         interest, penalties, additions to tax or additional amounts imposed by
         any taxing authority on such person or entity, and (ii) any material
         liability for the payment of any amount of the type described in the
         preceding clause (i) as a result of being a "transferee" (within the
         meaning of Section 6901 of the Internal Revenue Code of 1986, as
         amended (the "Code"), or any other applicable Laws) of another person
         or entity.

         4.18. Employee Benefit Plans.

                  (a) Schedule 4.18 sets forth a list of all "employee pension
         benefit plans" and "employee benefit plans," as defined in Section 3(2)
         and (3) of the Employee Retirement Income Security Act of 1974
         ("ERISA"), and other written or formal plans or group arrangements
         involving direct or indirect compensation (not including any
         government-mandated programs) currently or previously maintained or
         contributed by the Corporation or any ERISA Affiliate for the benefit
         of any employee or former employee thereof under which the Corporation
         and/or any Subsidiary has or may have any present or future obligation
         or liability (collectively, the "Employee Plans"). "ERISA Affiliate"
         means any entity which is a member of (i) a "controlled group of
         corporations," as defined in Section 414(b) of the Code, (ii) a group
         of entities under "common control," as defined in Section 414(c) of the
         Code, or (iii) an "affiliated service group," as defined in Section
         414(m) of the Code, any of which includes the Corporation.

                  (b) Schedule 4.18 further sets forth a list of all plans,
         trusts, or arrangements (written or oral) providing for insurance
         coverage (including any self-insured arrangements), workers'
         compensation, medical benefits, disability benefits, supplemental
         unemployment benefits, vacation benefits, retirement benefits, deferred
         compensation, profit-sharing, bonuses, stock options, stock
         appreciation, or other forms of incentive compensation, insurance or
         benefits (collectively, the "Benefit Arrangements") that (i) are not
         Employee Plans, (ii) are maintained or contributed to by the
         Corporation or any Subsidiary, and (iii) cover any director, officer,
         employee, or former employee of the Corporation or any Subsidiary.

                  (c) Each Employee Plan and Benefit Arrangement has been
         maintained in substantial compliance with its terms and with the
         requirements prescribed by applicable Laws. There has not been any
         "accumulated funding deficiency," as defined in Section 412 of the
         Code, with respect to any Employee Plan. There has not been any partial
         or complete withdrawal by the Corporation or any Subsidiary with
         respect to any Employee Plan which is a "multiemployer plan," as
         defined in Section 3(37) of ERISA, and the Corporation has no current
         plans to withdraw from any such Employee Plan. Except as set forth on
         Schedule 4.18, neither the Corporation or any Subsidiary is in default
         or alleged to be in default in the payment or other provision of any
         benefit under any Employee Plan or Benefit Arrangement. Except as set
         forth on Schedule 4.18, no actions have been taken or are currently
         planned with respect to any Employee Plan or Benefit Arrangement that
         would increase the expense of maintaining or the benefits provided
         under such Employee Plan or Benefit Arrangement above the level of the
         expense incurred or benefits provided in respect thereof for each of
         the years 1999 and 1998.

                  (d) The execution and delivery by the Corporation of the
         Documents and its consummation of the transactions contemplated thereby
         will not constitute a triggering event

                                      -13-
<PAGE>

         under any Employee Plan or Benefit Arrangement that will, or upon the
         occurrence of subsequent events would, accelerate the time of payment
         or vesting, or increase the amount of compensation or benefits, for any
         director, officer, employee, or former employee of the Corporation.

         4.19. Insurance.

         The Corporation maintains valid and effective insurance policies,
issued by financially sound and reputable insurers, to insure it against all
risks usually insured against by persons or entities conducting businesses
similar to that of the Corporation or such Subsidiary in the locality in which
such businesses are conducted. The Corporation has paid all due premiums with
respect to all policies of insurance currently maintained by the Corporation.

         4.20. Related Transactions.

                  (a) Except as set forth on Schedule 4.20, and except for
         compensation to regular employees, since January 1, 1998, no current
         director or executive officer of the Corporation or holder of at least
         5% of the outstanding capital stock of the Corporation has been (i) a
         party to any transaction with the Corporation valued in excess of
         $60,000 during any twelve-month period, or (ii) the direct or indirect
         owner of an interest in any business organization that is or was a
         competitor, supplier or customer of the Corporation (other than
         interests in non-affiliated publicly held companies).

         4.21. Offering of the Shares.

         The Corporation has not, directly or indirectly, solicited any other
offer to buy or offer to sell, and will not, directly or indirectly, solicit any
other offer to buy or offer to sell, any security which is or would be
integrated with the sale of the Shares in a manner that would require the Shares
to be registered under the Securities Act.

         4.22. Disclosure.

         The Corporation has filed all required registration statements, reports
and proxy statements with the Securities and Exchange Commission ("SEC Reports")
when due (or within permitted extension periods) in accordance with the
Securities Act and the Securities Exchange Act of 1934, as amended ("Exchange
Act"), as the case may be. As of their respective dates (or, in the case of any
amended SEC Report, as of the date of the amendment), the SEC Reports complied
in all material respects with all applicable requirements of the Securities Act
or the Exchange Act, as the case may be. As of their respective dates (or, in
the case of any amended SEC Report, as of the date of the amendment), none of
the SEC Reports contained any untrue statement of a material fact or omitted to
state a material fact required to be stated or incorporated by reference therein
or necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. This Agreement does
not contain an untrue statement of a material fact nor does it omit to state a
material fact necessary in order to make the statements contained herein or
therein, in light of the circumstances under which they were made, not
misleading. None of the statements, documents, certificates or other items
prepared by the Corporation and supplied to SGI or its counsel in

                                      -14-
<PAGE>

connection with the transactions contemplated hereby (other than those relating
to (i) projected financial information, (ii) plans and objectives regarding the
Corporation's future operations, (iii) future economic performance and (iv)
assumptions underlying any of the matters described in (i) through (iii), each
as to which no representation or warranty is given other than, however, that
such representations are reasonable in light of existing or known facts or
trends and were prepared in good faith) contains an untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements contained therein, in light of the circumstances under which they
were made, not misleading.

         4.23. Reserved.

         4.24. Reserved.

         4.25. Brokers and Finders.

         No person or entity acting on behalf or under the authority of the
Corporation is or will be entitled to any broker's, finder's, or similar fee or
commission in connection with the sale of the Shares.

         4.26. Year 2000 Compliance.

                  (a) The Corporation and each Subsidiary has used (or is in the
         process of using) appropriate procedures to verify that its software
         which is licensed or otherwise provided to its customers and the
         software used in its business will recognize and process date fields
         after the turn of the century, and perform date-dependent calculations
         and operations (including sorting, comparing and reporting) after the
         turn of the century correctly, and the Corporation and each Subsidiary
         has used (or is in the process of using) reasonable efforts to ensure
         that such software will not produce invalid and incorrect results as a
         result of the change of century (all without human intervention, other
         than original data entry of valid dates).

                  (b) The Corporation has (i) analyzed the operations of the
         Corporation and the Subsidiaries that could be adversely affected by
         failure to become Year 2000 compliant and (ii) developed a plan for
         becoming Year 2000 compliant in a timely manner, the implementation of
         which is on schedule in all material respects. The disclosure in the
         Corporation's Exchange Act reports (e.g., Form 10-K, 10-Q, etc.)
         regarding the progress of the Year 2000 compliance program and Year
         2000 remediation were accurate when made.

                  (c) Based upon responses to its inquiries to its suppliers and
         vendors, the Corporation reasonably believes any suppliers and vendors
         that are material to the operations of the Corporation and the
         Subsidiaries will be Year 2000 compliant for their own computer
         applications except to the extent that a failure to do so could not
         reasonably be expected to have a Material Adverse Effect.

         4.27. Reserved.

                                      -15-
<PAGE>

Section 5. Representations and Warranties of the Purchaser.

         Each Purchaser represents and warrants to the Corporation on behalf of
itself (and not any other Purchaser) as of the date hereof and the Closing Date
that:

         5.1. Due Authorization.

         The Purchaser has taken all action necessary to authorize its execution
and delivery of the Documents to which it is a party, the performance of its
obligations thereunder, and its consummation of the transactions contemplated
thereby. Each Document to which the Purchaser is a party has been executed and
delivered by an officer of the Purchaser in accordance with such authorization
or by the Purchaser. Each Document to which the Purchaser is a party constitutes
a valid and binding obligation of the Purchaser, enforceable in accordance with
its terms, subject to applicable bankruptcy, reorganization, insolvency,
moratorium, and similar laws affecting creditors' rights generally and to
general principles of equity.

         5.2. Investment Representations.

                  (a) The Purchaser is acquiring the Shares for its own account,
         for investment and not with a view to the distribution thereof, nor
         with any present intention of distributing the same.

                  (b) The Purchaser understands that the Shares have not been,
         and the Conversion Shares will not be, registered under the Securities
         Act or applicable state securities laws, by reason of their issuance in
         a transaction exempt from the registration requirements of the
         Securities Act, and such shares must be held indefinitely unless
         subsequent disposition thereof is registered under applicable
         securities laws or is exempt from registration.

                  (c) The Purchaser understands that the exemption from
         registration afforded by Rule 144 (the provisions of which are known to
         the Purchaser) promulgated under the Securities Act depends on the
         satisfaction of various conditions and that, if applicable, Rule 144
         may only afford the basis for sales under certain circumstances and
         only in limited amounts.

                  (d) The Purchaser is an "accredited investor," as such term is
         defined in Rule 501 (the provisions of which are known to the
         Purchaser) promulgated under the Securities Act.

                  (e) The Purchaser has such knowledge and experience in
         financial, tax and business matters so as to enable the Purchaser to
         utilize the information made available to the Purchaser in connection
         with the investment in the Shares to evaluate the merits and risks of
         an investment in the Shares and to make an informed investment decision
         with respect thereto; provided, however, that the foregoing shall in no
         way affect, diminish or derogate from the representations and
         warranties made by the Corporation hereunder or the right of the
         Purchaser to rely thereon and to seek indemnification hereunder.

                  (f) The Purchaser has not been formed for the specific purpose
         of acquiring the Shares.

                                      -16-
<PAGE>

                  (g) The Purchaser hereby acknowledges that the purchase and
         sale of the Shares is intended to be exempt from registration under the
         Securities Act by virtue of Section 4(2) and/or Section 3(b) of the
         Securities Act and, if applicable, in the sole judgment of the
         Corporation, the provisions of Regulation D thereunder, which exemption
         is dependent upon the truth, completeness and accuracy of the
         statements made by the Purchaser herein and in any other documents
         furnished by the Purchaser to the Corporation.

         5.3. Brokers and Finders.

         No person or entity acting on behalf or under the authority of the
Purchaser is or will be entitled to any broker's, finder's, or similar fee or
commission in connection with the transactions contemplated hereby.

         5.4. Investor Sophistication.

         Purchaser has sufficient knowledge and experience and is capable of
evaluating the merit and risks of its investment in the Corporation as
contemplated by this Agreement and is able to bear the economic risk of such
investment for an indefinite period of time. Purchaser has been given access to
SEC Reports. Purchaser has had the opportunity to ask questions of and receive
answers from representatives of the Corporation concerning the terms and
conditions of this Agreement, to discuss the Corporation's business, management
and financial affairs with the Corporation's management and to obtain any other
additional information Purchaser desires or deems relevant.

         5.5. Reserved.

Section 6. Covenants of the Corporation and the Purchaser.

         6.1. Regulatory Approvals; Reasonable Best Efforts; Further Assurances.

         The Corporation and the Purchaser acknowledge that certain regulatory
or governmental approvals may be required to lawfully consummate the
transactions contemplated by this Agreement. Subject to the terms and conditions
of this Agreement, the Corporation and the Purchaser will, and will cause their
Affiliates to, use their reasonable best efforts to take, or cause to be taken,
all actions and to do, or cause to be done, all things necessary or desirable
under applicable laws and regulations to consummate the transactions
contemplated by this Agreement. The Corporation and the Purchaser agree to
execute and deliver such other documents, certificates, agreements and other
writings and to take such other actions as may be necessary or desirable in
order to consummate or implement expeditiously the transactions contemplated by
this Agreement.

         6.2. Certain Filings.

         The Corporation and the Purchaser will, and will cause their Affiliates
to, cooperate with one another (i) in determining whether any action by or in
respect of, or filing with, any governmental body, agency, official or authority
is required, or any actions, consents, approvals or waivers are required to be
obtained from parties to any material contracts, in connection with

                                      -17-
<PAGE>

the consummation of the transactions contemplated by this Agreement or the
conversion by such Purchaser of such Purchaser's Shares and (ii) in taking such
actions or making any such filings, furnishing information required in
connection therewith and seeking timely to obtain any such actions, consents,
approvals or waivers. Without limiting the generality of the foregoing, the
Corporation and the Purchaser obligated to file a notification under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR Act")
shall promptly after the date of this Agreement prepare and file the
notifications required under the HSR Act in connection with the transactions
contemplated by this Agreement. The Corporation and the Purchaser shall (A) give
the other parties prompt notice of the commencement of any action, suit,
litigation, arbitration, preceding or investigation by or before any
governmental body with respect to the transactions contemplated by this
Agreement, (B) keep the other parties informed as to the status of any such
action, suit, litigation, arbitration, preceding or investigation, and (C)
promptly inform the other parties of any communication to or from the Federal
Trade Commission, the Department of Justice or any other governmental body
regarding the transactions contemplated by this Agreement.

         6.3. Confidentiality.

         Except as set forth in Section 6.4 below and as required by applicable
securities laws upon the advice of counsel, without the consent of the other
party, neither the Corporation nor any Purchaser shall make any public comment,
statement or communication with respect to, or otherwise disclose or permit the
disclosure of the terms of this Agreement and the transactions contemplated
hereby, and each party shall cause its authorized officers, directors, partners,
employees, counsel, accountants, agents and other representatives to strictly
comply with the foregoing.

         6.4. Public Announcements.

         Neither party to this Agreement may publicly disseminate a press
release or file a public report (on Form 8-K or otherwise) with the Securities
and Exchange Commission or otherwise publicly announce the transactions
contemplated by this Agreement, unless the other parties consent. Such parties
shall not unreasonably withhold or delay their approval to any such proposed
announcements.

Section 7. Covenants of the Corporation.

         Unless otherwise indicated, and as long as any of the Shares or
Conversion Shares remain outstanding, the Corporation shall and shall cause each
Subsidiary to abide and perform with respect to the following covenants:

         7.1. Certificate of Designation.

         Following the execution of this Agreement, the Corporation shall cause
to be filed the Class F Certificate of Designation as required pursuant to the
law of the State of Minnesota.

                                      -18-
<PAGE>

         7.2. Restrictions Pending the Closing.

         After the date hereof and prior to the Closing Date, except as
expressly provided for in this Agreement or as consented to in writing by the
Purchaser, the Corporation will not:

                  (i) amend its certificate of incorporation or bylaws, except
         to file the Class F Certificate of Designation;

                  (ii) split, combine or reclassify any shares of its capital
         stock without appropriately adjusting the conversion price and/or ratio
         applicable to the Shares prior to their issuance at the Closing;

                  (iii) declare or pay any dividend or distribution (whether in
         cash, stock or property) in respect of its Common Stock;

                  (iv) take any action, or knowingly omit to take any action,
         that could reasonably be expected to result in (A) any of the
         representations and warranties of the Corporation set forth in Article
         4 becoming untrue or (B) any of the conditions to the obligations of
         the Purchaser set forth in Section 8.1 or 8.2 not being satisfied; or

                  (v) enter into any agreement or commitment to do any of the
         foregoing.

         7.3. Reservation of Shares.

         For so long as any of the Shares are outstanding, the Corporation shall
keep reserved for issuance a sufficient number of shares of Common Stock to
satisfy its conversion obligations under the Class F Certificate of Designation.

         7.4. Use of Proceeds.

         The Corporation shall use the cash proceeds received by it upon the
sale of the Shares for general working capital purposes.

         7.5. Access to Records.

         The Corporation shall, and shall cause each Subsidiary to, afford to
the Purchaser and its authorized employees, counsel, accountants and other
representatives, upon reasonable notice and during ordinary business hours, (i)
full access to all books, records and properties of the Corporation and such
Subsidiary, and (ii) the opportunity to interview any officer of the Corporation
or such Subsidiary regarding its affairs; any investigation pursuant to this
Section shall be conducted in a manner that does not interfere unreasonably with
the conduct of the business of the Corporation and such Subsidiary.

         7.6. Reserved.

         7.7. Financial Reporting and other Information.

                                      -19-
<PAGE>

                  (a) So long as the Purchaser beneficially owns Shares or
         Conversion Shares, the Corporation shall deliver to such Purchaser the
         following:

                           (i) within 30 days after the end of each month,
                  commencing with the month of December, (A) the unaudited
                  balance sheet of the Corporation at the end of such month, (B)
                  the unaudited statements of income and cash flows of the
                  Corporation for such month, (C) comparative statements of
                  income of the Corporation for the year to date, the comparable
                  figures for the prior year, the current Budget for the year to
                  date and projected figures for the year and (D) textual
                  discussion describing changes from prior periods and
                  describing operating trends;

                           (ii) within 45 days after the end of each fiscal
                  quarter, commencing with the quarterly period ending March 31,
                  2000, (A) the unaudited balance sheet of the Corporation at
                  the end of such fiscal quarter, (B) the unaudited statements
                  of income and cash flows of the Corporation for such fiscal
                  quarter, and (C) comparative statements of income of the
                  Corporation for such fiscal quarter and the year to date, the
                  comparable figures for the corresponding fiscal quarter and
                  the year to date period of the prior year and the current
                  Budget for such fiscal quarter and for the year to date; and

                           (iii) within 90 days after the end of each fiscal
                  year commencing with the current fiscal year of the
                  Corporation, (A) the audited balance sheet of the Corporation
                  at the end of such fiscal year, together with comparisons to
                  the balance sheet of the Corporation at the end of the prior
                  fiscal year and to the current Budget, (B) the audited
                  statements of income and cash flows of the Corporation for
                  such fiscal year, together with comparisons to the statements
                  of income and cash flows of the Corporation for the prior
                  fiscal year and to the current Budget, and (C) an audit report
                  of Ernst & Young, independent certified public accountants, on
                  such balance sheets and statements; and

                           (iv) any other financial and operating data and other
                  information relating to the Corporation and each Subsidiary as
                  the Purchaser may reasonably request;

                           (v) all information made available to the
                  Corporation's shareholders or directors, at the same time as
                  such information is delivered to such persons; and

                           (vi) monthly management reports in a form reasonably
                  acceptable to the Purchaser.

                  (b) All financial information to be delivered under this
         Section shall be in accordance with the books and records of the
         Corporation and shall have been prepared in accordance with GAAP,
         subject to year-end and audit adjustments.

         7.8. Payment of Obligations.

         The Corporation shall, and shall cause each Subsidiary to, pay or
discharge or cause to be paid or discharged all material claims or demands, and
all Taxes levied or imposed upon the Corporation or its Subsidiaries or upon the
income, profits or property of the Corporation or its

                                      -20-
<PAGE>

Subsidiaries; provided, however, that the Corporation or such Subsidiary shall
not be required to pay or discharge or cause to be paid or discharged any such
claim, demand, or Tax the amount, applicability or validity of which is being
contested in good faith by appropriate proceedings and for which adequate
provision has been made.

         7.9. Insurance.

         The Corporation shall, and shall cause each Subsidiary to, maintain
with financially sound and reputable insurers such insurance as may be required
by law and such other insurance, to such extent and against such hazards and
liabilities, as is customarily maintained by companies similarly situated and
exercising sound business practice.

         7.10. Certain Notices.

         The Corporation shall promptly notify the Purchaser of (i) the
commencement or notice of any threat of any Proceeding, dispute or grievance
against or affecting the Corporation, which, if adversely determined, might
reasonably be expected to have a Material Adverse Effect, (ii) any material
default under any indebtedness of the Corporation and (iii) any material default
or breach under any of the items required to be listed on Schedule 4.10(a) or
any of the items which would have been required to be listed on Schedule 4.10(a)
if such item were effective prior to the date hereof.

         7.11. Conduct of Business.

         The Corporation shall (i) take all actions required to assure that the
Corporation remains duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation, (ii) take all actions
required to assure that the Corporation maintains all Permits to conduct its
business, and (iii) conduct its business in compliance with all Laws.

         7.12. Related Transactions.

         Excluding any existing arrangements between Winstar Communications,
Inc. and MCI WorldCom, Inc., the Corporation shall not directly or indirectly
enter into any transaction with any Related Party, other than any transaction
entered into in the ordinary course of business and on terms and conditions not
less favorable to the Corporation as the terms and conditions which would apply
in a similar transaction negotiated on an arms-length basis with a party that is
not a Related Party. "Related Party" means (a) each current or future director
or executive officer of the Corporation, (b) each parent, sibling, spouse, or
descendant of any of the foregoing, (c) each entity of which any of the
foregoing is a director, officer, partner or holder of more than 10% of the
outstanding voting power of any class of capital stock and (d) any person or
entity which is the beneficial owner of 5% or more of the outstanding voting
power of the Corporation.

         7.13. Internal Controls.

                  (a) Internal Controls.

                                      -21-
<PAGE>

                  The Corporation maintains and will continue to maintain a
         system of internal accounting controls sufficient to provide reasonable
         assurances that: (i) transactions are executed in accordance with
         management's general or specific authorization, (ii) transactions are
         recorded as necessary in order to permit preparation of financial
         statements in accordance with generally accepted accounting principles
         and to maintain accountability for assets and (iii) the recorded
         accountability for assets is compared with existing assets at
         reasonable intervals and appropriate action is taken with respect to
         any differences.

         7.14. Reserved.

         7.15. Reserved.

         7.16. Purchaser Lock-Up.

         The Purchaser agrees that, without the consent of the Corporation, it
will not directly or indirectly offer, sell, dispose of, pledge, encumber or
otherwise transfer any of the Shares or the Conversion Shares until six months
after the consummation of the Company's initial public offering of Common Stock.

         7.17. Reserved.

         7.18. Consents.

         Prior to the Closing, the Corporation shall use its commercially
reasonable best efforts to obtain all consents and approvals of third parties,
if any, required to consummate the transactions contemplated by this Agreement
so that such consummation shall not conflict with or cause a breach of or
default under any agreement or other obligation binding upon the Corporation,
including without limitation all such consents and approvals required with
respect to its obligations for borrowed money and under its Articles of
Incorporation and Certificates of Designation.

Section 8. Registration Rights of the Purchaser.

         8.1. Demand Registration.

                  (a) Grant of Right. The Corporation agrees to register on two
         occasions, upon written demand ("Initial Demand Notice") of the
         Purchaser, all of the Conversion Shares, regardless of whether the
         Shares have been converted (the "Registrable Securities"). The
         Corporation will file a registration statement covering the Registrable
         Securities within 60 days after receipt of the Initial Demand Notice
         and use its best efforts to have such registration statement declared
         effective promptly thereafter. The demand for registration may be made
         at any time during a period commencing on the earlier of (i) the six
         month anniversary of the consummation of the Corporation's initial
         public offering of its Common Stock, and (ii) the one year anniversary
         of the date Shares are first issued.

                  (b) Terms. The Corporation shall bear all fees and expenses
         attendant to registering the Registrable Securities, including the
         expenses of one legal counsel selected by the

                                      -22-
<PAGE>

         Purchaser to represent them in connection with the sale of the
         Registrable Securities but not including any and all underwriting
         commissions and discounts which will be the responsibility of the
         Purchaser participating in the underwriting. The Corporation will
         qualify or register the Registrable Securities in such states as are
         reasonably requested by the Purchaser. The Corporation shall cause any
         registration statement filed pursuant to the demand rights granted
         under this Section to remain effective with respect to the Registrable
         Securities covered by such registration statement until all such
         securities have been sold.

         8.2. "Piggy-Back" Registration.

                  (a) Grant of Right. The Purchaser shall have the right at any
         time and from time to time to include the Registrable Securities as
         part of any other registration of securities filed by the Corporation
         (other than pursuant to Form S-4, Form S-8 or any equivalent forms or
         in connection with the Corporation's initial public offering to the
         extent that no other selling shareholder is included in the
         registration statement). Notwithstanding the foregoing, if, in the
         written opinion of the managing underwriter or underwriters of a public
         offering by the Corporation of its shares of Common Stock, the
         inclusion of the Registrable Securities, when added to the securities
         being registered by the Corporation, will exceed the maximum amount of
         the Corporation's securities that can be marketed without materially
         and adversely affecting the entire offering, then (i) the Corporation
         will include in such registration first, only those securities, the
         holders of which as of the date hereof have piggy-back registration
         rights (as listed on Schedule 8.2), second, the Registrable Securities
         allocated (if necessary) among the holders thereof on a pro rata basis
         based on the number of Registrable Securities requested to be included
         in such registration statement, and third, capital stock of the
         Corporation to be sold for the account of others with applicable
         piggy-back registration rights, with such priorities among them as the
         Corporation shall decide. If, subsequent to the exercise of all of the
         demand registration rights referred to in Section 8.1, any Registrable
         Securities requested to be included in an offering ("Other Offering")
         pursuant to the "piggy-back" rights described in this Section 8.2. are
         not so included because of the operation of the first proviso of the
         preceding sentence, then the holders of the Registrable Securities
         shall have the right to require the Corporation, at its expense, to
         prepare and file a registration statement under the Securities Act
         covering such Registrable Securities.

                  (b) Terms. The Corporation shall bear all fees and expenses
         attendant to registering the Registrable Securities, including the
         reasonable expenses of any legal counsel selected by the Holders to
         represent them in connection with the sale of the Registrable
         Securities, but the Purchaser participating in the registration shall
         pay any and all discounts and underwriting commissions. In the event of
         such a proposed registration, the Corporation shall furnish the owners
         of the Registrable Securities with not less than 30 days written notice
         prior to the proposed date of filing of such registration statement.
         Such notice shall continue to be given for each registration statement
         filed by the Corporation until such time as all of the Registrable
         Securities have been sold by the Purchaser. The owners of the
         Registrable Securities shall exercise the "piggy-back" rights provided
         for herein by giving written notice within 15 days of the receipt of
         the Corporation's notice of its intention to file a registration
         statement. The Corporation shall cause any registration statement filed
         pursuant to the "piggyback" rights granted under this Section to remain
         effective with respect to the Registrable Securities covered

                                      -23-
<PAGE>

         by such registration statement until all of the such securities have
         been sold by the Purchaser. Notwithstanding the foregoing, in no event
         shall the Corporation be obligated to maintain the effectiveness of any
         registration statement filed pursuant to Sections 8.1 and 8.2 for a
         period in excess of three years from the initial date of issuance of
         the Shares.

         8.3. General Terms.

                  (a) Indemnification. The Corporation shall indemnify the
         owner(s) of the Registrable Securities to be sold pursuant to any
         registration statement hereunder and each person, if any, who controls
         such person within the meaning of Section 15 of the Act or Section
         20(a) of the Exchange Act, against all loss, claim, damage, expense or
         liability (including all reasonable attorneys' fees and other expenses
         reasonably incurred in investigating, preparing or defending against
         any claim whatsoever) to which any of them may become subject under the
         Securities Act, the Exchange Act or otherwise, arising from such
         registration statement, except to the extent that any loss, claim,
         damage, expense or liability arises out of or relates to written
         information furnished by or on behalf of the Purchaser, for inclusion
         in such registration statement ("Purchaser Information"). The owner(s)
         of the Registrable Securities to be sold pursuant to such registration
         statement, and their successors and assigns, shall severally, and not
         jointly, indemnify the Corporation against all loss, claim, damage,
         expense or liability (including all reasonable attorneys' fees and
         other expenses reasonably incurred in investigating, preparing or
         defending against any claim whatsoever) to which it may become subject
         under the Securities Act, the Exchange Act or otherwise, arising from
         Purchaser Information furnished by or on behalf of such owner(s).

                  (b) Exercise of Shares. Nothing contained in this Section 8
         shall be construed as requiring the Purchaser to convert the Shares
         prior to or after the filing of any registration statement or the
         effectiveness thereof.

                  (c) Documents Delivered to Holders. The Corporation shall
         deliver promptly to the Purchaser participating in any of the foregoing
         offerings who requests it, all correspondence between the Securities
         and Exchange Commission and the Corporation, its counsel or auditors
         and all memoranda relating to discussions with the Securities and
         Exchange Commission or its staff with respect to the registration
         statement. The Corporation also shall furnish to the Purchaser
         participating in any of the foregoing offerings that are underwritten,
         and to each underwriter of any such offering, a signed counterpart,
         addressed to the Purchaser and underwriter, of (i) an opinion of
         counsel to the Corporation, dated the effective date of such
         registration statement (and an opinion dated the date of the closing
         under the underwriting agreement relating to such offering), and (ii) a
         "cold comfort" letter dated the effective date of such registration
         statement (and a letter dated the date of the closing under the
         underwriting agreement) signed by the independent public accountants
         who have issued a report on the Corporation's financial statements
         included in such registration statement, in each case covering
         substantially the same matters with respect to such registration
         statement (and the prospectus included therein) and, in the case of
         such accountants' letter, with respect to events subsequent to the date
         of such financial statements, as are customarily covered in opinions of
         issuer's counsel and in accountants' letters delivered to underwriters
         in underwritten public offerings of securities. In the event that the
         Purchaser requests information pursuant to this Section (c), then,
         prior to

                                      -24-
<PAGE>

         furnishing such information, the Corporation shall have the right to
         require the Purchaser to enter into a confidentiality agreement with
         the Corporation with respect to any information to be provided to the
         Purchaser that the Corporation reasonably considers to be proprietary,
         non-public or otherwise confidential.

         8.4. Underwriting Agreement.

         In the event that the demand registration filed by the Purchaser
pursuant to Section 8.1(a) is for an underwritten offering, then the Purchaser
shall have the right to select the underwriters of the offering, which
underwriters shall be reasonably acceptable to the Corporation. The Corporation
shall enter into an underwriting agreement with the managing underwriter
selected by the Purchaser whose Registrable Securities are being registered
pursuant to Section 8.1. Such agreement shall be reasonably satisfactory in form
and substance to the Corporation, each such person and such managing
underwriter, and shall contain such representations, warranties and covenants by
the Corporation and such other terms as are customarily contained in agreements
of that type used by the underwriter. Such persons shall be parties to any
underwriting agreement relating to an underwritten sale of their Registrable
Securities and may, at their option, require that any or all of the
representations, warranties and covenants of the Corporation to or for the
benefit of such underwriter shall also be made to and for the benefit of such
persons. Such persons shall not be required to make any representations or
warranties to or agreements with the Corporation or the underwriter except as
they may relate to such persons, their shares and their intended methods of
distribution.

         8.5. Road Show.

         In connection with any underwritten public offering concerning the
Purchaser, the Corporation will participate in road-shows regarding such
offering.

         8.6. Reserved.

Section 9. Conditions to Each Closing.

         9.1. Conditions of Each Party.

         The respective obligations of each of the Corporation and the Purchaser
to consummate the transactions contemplated hereby are subject to the
fulfillment, at or prior to the Closing, of each of the following conditions,
any or all of which may be waived in whole or in part to the extent permitted by
applicable law;

                  (a) All filings required to be made, and all consents,
         approvals, permits and authorizations required to be obtained, prior to
         the Closing, from any Governmental Authorities in connection with the
         execution and delivery by the parties of the Documents and the
         consummation of the transactions contemplated thereby shall have been
         made or obtained; and

                  (b) No court or governmental or regulatory authority of
         competent jurisdiction shall have enacted, issued, promulgated,
         enforced or entered any statute, rule, regulation, judgment, decree,
         injunction or other order (whether temporary, preliminary or permanent)
         or

                                      -25-
<PAGE>

         taken any action that prohibits the consummation of the transactions
         contemplated by this Agreement; provided, however, that any party
         invoking this condition shall use its reasonable best efforts to have
         any such judgment, decree, injunction or order vacated.

         9.2. Conditions to Obligations of the Purchaser.

         The obligations to be performed by the Purchaser under this Agreement
at or after the Closing are subject to the satisfaction at or prior to each of
the Closing of the following conditions, unless waived by the Purchaser:

                  (a) Material Adverse Effect. There shall not have been any
         event which has or is reasonably likely to have a Material Adverse
         Effect.

                  (b) Accuracy of Representations and Warranties. Each of the
         representations and warranties of the Corporation contained in this
         Agreement and in any certificate or other writing delivered by the
         Corporation pursuant hereto qualified as to materiality shall be true
         and correct, and those not so qualified shall be true and correct in
         all material respects, in each case at and as of the Closing Date as if
         made at and as of such respective times (except to the extent it
         relates to a particular date).

                  (c) Performance of Covenants. The Corporation shall have
         performed in all material respects all covenants and agreements
         required to be performed by it under this Agreement and each other
         Document.

                  (d) Class F Certificate of Designation. Prior to the Closing,
         the Class F Certificate of Designation shall have been filed with and
         accepted by the Secretary of State of the State of Minnesota and shall
         have become effective.

                  (e) Stock Certificates. At the Closing stock certificates
         representing the Class F Preferred Stock sold at such closing shall
         have been delivered by the Corporation to the Purchaser.

                  (f) Use of Proceeds. At the Closing the Purchaser shall have
         received a certificate of the Corporation describing in reasonable
         detail the proposed use of proceeds received by the Corporation upon
         the sale of the Shares.

                  (g) Legal Opinion. SGI shall have received an opinion dated as
         of the Closing Date of Willkie Farr & Gallagher, in a form and
         substance attached hereto as Exhibit C.

                  (h) Officer's Certificate. At the Closing the Purchaser shall
         receive a certificate from an officer of the Corporation to the effect
         that all conditions set forth in this Section 9.2 shall have been
         satisfied.

                  (i) Required Consents and Approvals. Prior to the Closing
         Date, the Corporation shall have received all consents and approvals of
         third parties, if any, required to consummate the transactions
         contemplated by this Agreement so that such consummation shall not
         conflict with or cause a breach of or default under any agreement or
         other obligation binding

                                      -26-
<PAGE>

         upon the Corporation, including without limitation all such consents
         and approvals required with respect to its obligations for borrowed
         money and under its Articles of Incorporation and Certificates of
         Designation.

         9.3. Conditions to Obligations of the Corporation.

         The obligations to be performed by the Corporation under this Agreement
at or after the Closing are subject to the satisfaction at or prior to the
Closing and the Option Closing, if any, of the following conditions, unless
waived by the Corporation:

                  (a) Accuracy of Representations and Warranties. Each of the
         representations and warranties of the Purchaser contained in this
         Agreement and in any certificate or other writing delivered by the
         Purchaser pursuant hereto qualified as to materiality shall be true and
         correct, and those not so qualified shall be true and correct in all
         material respects, in each case at and as of the Closing Date as if
         made at and as of such respective times (except to the extent it
         relates to a particular date);

                  (b) Performance of Covenants. The Purchaser shall have
         performed in all material respects all covenants and agreements
         required to be performed by it under this Agreement and each other
         Document to which it is a party.

Section 10. Termination.

         This Agreement may be terminated and the transactions contemplated
hereby may be abandoned at any time prior to the Closing:

                  (a) by joint written agreement of the Corporation and the
         Purchaser;

                  (b) by the Corporation, if any Purchaser has breached any
         representation, warranty, covenant or agreement contained in this
         Agreement and has not cured such breach within ten (10) business days
         after written notice to SGI (provided that the Corporation is not then
         in material breach of the terms of this Agreement; and provided further
         that no cure period shall be required for a breach which by its nature
         cannot be cured);

                  (c) by the Purchaser, if the Corporation has breached any
         representation, warranty, covenant or agreement contained in this
         Agreement and has not cured such breach within ten (10) business days
         after written notice to the Corporation (provided that the Purchaser is
         not then in material breach of the terms of this Agreement; and
         provided further that no cure period shall be required for a breach
         which by its nature cannot be cured);

                  (d) by any party, if the Closing has not occurred on or before
         March 31, 2000; provided, however, that a party may not terminate this
         Agreement pursuant to this Section if the failure of such party to
         fulfill any of its obligations hereunder shall have been the principal
         reason that the Closing shall not have occurred on or before said date;

                  (e) by any party if there shall be a change of law or
         regulation that makes consummation of the transactions contemplated
         hereby illegal or otherwise prohibited or if

                                      -27-
<PAGE>

         consummation of the transactions contemplated hereby would violate any
         nonappealable, final order, decree or judgment of any court or
         governmental body having competent jurisdiction; or

The party desiring to terminate this Agreement pursuant to the above-referenced
clauses shall give notice of such termination to the other parties hereto.

         10.1. Effect of Termination.

                  (a) If this Agreement is terminated, such termination shall be
         without liability of either party (or any shareholder, director,
         officer, employee, agent, consultant or representative of such party)
         to the other parties to this Agreement; provided that if such
         termination shall result from the (i) willful failure by any party to
         fulfill a condition to the performance of the obligations of the other
         parties, (ii) failure by any party to perform a covenant of this
         Agreement, (iii) breach by any party hereto of any representation,
         warranty, covenant or agreement contained herein, or (iv) a Closing
         Failure by any party, such party shall be fully liable for any and all
         damages incurred or suffered by the other parties as a result of such
         failure or breach.

Section 11. Miscellaneous

         11.1. Survival.

         The representations, warranties, covenants and other agreements
contained herein, shall survive the Closing and the consummation of the
transactions contemplated hereby. No right of the Purchaser for indemnification
hereunder shall be affected by any examination made for or on behalf of the
Purchaser, the knowledge of any of the Purchaser's officers, directors,
shareholders, employees or agents, or the acceptance by the Purchaser of any
certificate or opinion.

         11.2. Indemnification.

                  (a) The Corporation shall indemnify, defend and hold the
         Purchaser and its officers, directors, employees, shareholders,
         partners, members, affiliates and agents harmless against all
         Liability, loss or damage, together with all reasonable costs and
         expenses related thereto (including reasonable legal fees and
         expenses), relating to or arising from the untruth, inaccuracy or
         breach of any of the representations, warranties or agreements of the
         Corporation contained in this Agreement.

                  (b) The Purchaser shall indemnify, defend and hold the
         Corporation and its respective officers, directors, employees,
         shareholders, partners, members, affiliates and agents harmless against
         all Liability, loss or damage, together with all reasonable costs and
         expenses related thereto (including reasonable legal fees and
         expenses), relating to or arising from the untruth, inaccuracy or
         breach of any of the representations, warranties or agreements of the
         Purchaser contained in this Agreement.

                  (c) Promptly after receipt by any party entitled to
         indemnification under either Section 11.2(a) or Section 11.2(b) (an
         "indemnified party") of notice of the commencement of any action
         involving a claim which may give rise to a claim for indemnity under
         the preceding paragraphs of this Section, the indemnified party will
         give written notice to the party against

                                      -28-
<PAGE>

         whom indemnification is sought (the "indemnifying party") of the
         commencement of such action. In case any such action is brought against
         an indemnified party, the indemnifying party will be entitled to
         participate in and to assume the defense thereof, jointly with any
         other indemnifying party similarly notified to the extent that it may
         wish, with counsel reasonably satisfactory to such indemnified party,
         and after notice from the indemnifying party to such indemnified party
         of its election so to assume the defense thereof, the indemnifying
         party shall not be responsible for any legal or other expenses
         subsequently incurred by the indemnified party in connection with the
         defense thereof; provided, however, that if any indemnified party shall
         have reasonably concluded that there may be one or more legal or
         equitable defenses available to it which are additional to or conflict
         with those available to the indemnifying party, or that such claim or
         litigation involves or could have an effect upon matters beyond the
         scope of the indemnity agreement provided in this Section, the
         indemnifying party shall not have the right to assume the defense of
         such action on behalf of the indemnified party and the indemnifying
         party shall reimburse the indemnified party and any person controlling
         the indemnified party for that portion of the fees and expenses of any
         counsel retained by the indemnified party which is reasonably related
         to the matters covered by the indemnity agreement provided in this
         Section.

                  (d) If the indemnification provided for in this Section is
         held by a court of competent jurisdiction to be unavailable to an
         indemnified party with respect to any loss, claim, damage, liability or
         action referred to herein, then the indemnifying party, in lieu of
         indemnifying the indemnified party hereunder, shall contribute to the
         amounts paid or payable by the indemnified party as a result of such
         loss, claim, damage, liability or action in such proportion as is
         appropriate to reflect the relative fault of the indemnifying party on
         the one hand and of the indemnified party on the other in connection
         with the statements or omissions which resulted in such loss, claim,
         damage or liability as well as any other relevant equitable
         considerations. The amount paid or payable to an indemnified party as a
         result of the losses, claims, damages, liabilities or expenses referred
         to above shall be deemed to include any legal or other expenses
         reasonably incurred in connection with investigating or defending the
         same.

                  (e) The indemnification provided for under this Agreement will
         remain in full force and effect regardless of any investigation made by
         or on behalf of the indemnified party or any officer, director or
         controlling person of the indemnified party and will survive the
         transfer of securities.

         11.3. Reserved.

         11.4. Assignment; Parties in Interest.

         This Agreement shall bind and inure to the benefit of the parties and
each of their respective successors and permitted assigns (it being understood
that this Agreement may be assigned by the Purchaser without the consent of any
person solely in connection with the transfer of Shares).

                                      -29-
<PAGE>

         11.5. Entire Agreement.

         This Agreement (including all Schedules and Exhibits hereby) together
with the other Documents contain the entire understanding of the parties with
respect to the subject matter hereof and supersedes all prior agreements and
understandings among the parties with respect to such subject matter.

         11.6. Notices.

         All notices, claims, certificates, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if personally delivered or if sent by nationally-recognized overnight
courier, by telecopy, or by registered or certified mail, return receipt
requested and postage prepaid, addressed as follows:

                  (a) if to the Corporation:

                            WAM!NET INC.
                            655 Lone Oak Drive, Building A
                            Eagan, Minnesota 55121
                            Attention: Edward J. Driscoll, III, President
                            Telephone: (651) 256-2165
                            Facsimile: (651) 994-9591

                      with a copy to:

                            Willkie Farr & Gallagher
                            787 Seventh Avenue
                            New York, NY  10019-6099
                            Attention: Daniel D. Rubino, Esq.
                            Telephone: (212) 728-8000
                            Facsimile: (212) 728-8111

                  (b) if to the Purchaser:

                            Silicon Graphics, Inc.
                            2011 N. Shoreline Boulevard
                            Mountain View, CA 94043-1389
                            New York, NY 10017
                            Attention:
                            Telephone:  (650) _________
                            Telecopier:  (650) 932-0908

                                      -30-
<PAGE>

                      In any case, with a copy to:

                            Testa, Hurwitz & Thibeault, LLP
                            High Street Tower
                            125 High Street
                            Boston, MA 02116
                            Attention: William B. Asher, Jr.
                            Telephone:  (617) 248-7518
                            Telecopier:  (617) 248-7100

or to such other address as the party to whom notice is to be given may have
furnished to the other parties in writing in accordance herewith. Any such
notice or communication shall be deemed to have been received (a) in the case of
personal delivery, on the date of such delivery, (b) in the case of
nationally-recognized overnight courier, on the next business day after the date
when sent, (c) in the case of telecopy transmission, when received, and (d) in
the case of mailing, on the date of receipt.

         11.7. Amendments.

         The terms and provisions of this Agreement may only be modified or
amended pursuant to an instrument signed by all of the parties hereto.

         11.8. Counterparts.

         This Agreement may be executed in any number of counterparts, and each
such counterpart shall be deemed to be an original instrument, but all such
counterparts together shall constitute but one agreement.

         11.9. Headings.

         The section and paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

         11.10. Governing Law.

         Except as to matters governed by the MBCA, this Agreement shall be
governed by and construed in accordance with the domestic laws of the State of
New York, without giving effect to any law or rule that would cause the laws of
any jurisdiction other than the State of New York to be applied.

         11.11. Jurisdiction.

         The parties hereto agree that any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in connection
with, this Agreement or the transactions contemplated hereby may only be brought
in the United States District Court for the Southern District of New York or any
New York State court sitting in New York City, and each of the parties hereby
consents to the exclusive jurisdiction of such courts (and of the appropriate

                                      -31-
<PAGE>

appellate courts therefrom) in any such suit, action or proceeding and
irrevocably waives, to the fullest extent permitted by law, any objection which
it may now or hereafter have to the laying of the venue of any such suit, action
or proceeding in any such court or that any such suit, action or proceeding
which is brought in any such court has been brought in an inconvenient forum.
Process in any such suit, action or proceeding may be served on any party
anywhere in the world, whether within or without the jurisdiction of any such
court. Without limiting the foregoing, each party agrees that service of process
on such party as provided in the Section entitled "Notices" shall be deemed
effective service of process on such party.

         11.12. No Waiver.

         No delay by or on behalf of an Purchaser in exercising any rights
conferred hereunder, and no course of dealing between an Purchaser and the
Corporation shall operate as a waiver of any right granted hereunder, unless
expressly waived in writing by the party whose waiver is alleged.

         11.13. Binding Effect

         All covenants, representations, warranties and other stipulations in
this Agreement and other documents referred to herein, given by or on behalf of
any of the parties hereto, shall bind and inure to the benefit of the respective
successors, heirs, personal representatives and assigns of the parties hereto.

         11.14. Cumulative Powers.

         No remedy herein conferred upon the Purchaser or any holder of the
Class F Preferred Stock is intended to be exclusive of any other remedy, and
each such remedy shall be cumulative and in addition to every other remedy given
hereunder or now or hereafter existing at law, or in equity or by statue or
otherwise.

                                      -32-
<PAGE>

         IN WITNESS WHEREOF, the parties have executed and delivered this Stock
Purchase Agreement on the date first above written.

                                     WAM!NET INC.

                                     By:  /s/ Gary L. Hokkanen
                                        ---------------------------------------
                                        Name:
                                        Title:

                                     SILICON GRAPHICS, INC.

                                     By:  /s/ Sandra Escher
                                        ---------------------------------------
                                        Name:
                                        Title:

                                      -33-
<PAGE>

                                      Index
                                      -----

Exhibit A                        Statements of Rights and Preferences of Class
                                   F Preferred Stock
Exhibit B                        Willkie Farr & Gallagher Legal Opinion

Schedule I                       Certain Management
Schedule 4.1(a)                  Articles of Incorporation and Bylaws
Schedule 4.1(b)                  List of Subsidiaries
Schedule 4.5(a)                  Designation and Classes of Capital Stock
Schedule 4.5(a)(vi)              Right of First Refusal Agreements
Schedule 4.5(b)                  Options, Warrants and Convertible Securities
Schedule 4.5(c)(i)               Purchase Agreements
Schedule 4.5(c)(ii)              Registration Rights Agreements
Schedule 4.5(e)                  Record Holders
Schedule 4.7                     Financial Statements
Schedule 4.10(a)                 Material Contracts
Schedule 4.12                    Real Property
Schedule 4.13                    Intellectual Property
Schedule 4.14                    License to Provide Communications Services
Schedule 4.15                    Litigation
Schedule 4.18                    Employee Pension Benefit Plans
Schedule 4.20                    Related Transactions
Schedule 8.2                     Piggy-back Registration Rights

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