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                                                                   EXHIBIT 10.8

THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SHARES ISSUABLE UPON
EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) THE
COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER
CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
APPLICABLE STATE SECURITIES LAWS.

                         THE TRANSFER OF THIS WARRANT IS
                         RESTRICTED AS DESCRIBED HEREIN.

                           VICTORY ENTERTAINMENT CORP.

               Warrant for the Purchase of Shares of Common Stock,
                            par value $.001 per share

                     THIS WARRANT EXPIRES ON MARCH 28, 2003

No. 1                                                            800,000 Shares

         THIS CERTIFIES that, for value received, Wardley Investments Limited,
with an address at Havilland Hall, Vaciquiedor, Saint Andrew Guernsey, Channel
Islands GY68TP (including any transferee, the "Holder"), is entitled to
subscribe for and purchase from Victory Entertainment Corp., a Florida
corporation (the "Company"), upon the terms and conditions set forth herein at
any time or from time to time before 5:00 P.M. on March 28, 2003, New York time
(the "Exercise Period") 800,000 shares of the Company's Common Stock, par value
$.001 per share ("Common Stock") at a price (the "Exercise Price") equal to: (i)
$7.00 or if the Company shall cause to become effective a registration statement
to register the Company's securities for public offer and sale (ii) 85% of the
offering price of the securities offered in the Company's initial public
offering. This Warrant is the Warrant or one of the Warrants issued pursuant to
an offering (the "Offering") by the Company of Units, each Unit consisting of a
$50,000 principal amount 12.0% Senior Secured Promissory Note (the "Notes") and
a Common Stock Purchase Warrant to purchase 8,000 shares of Common Stock,
pursuant to a Subscription Agreement, dated February 18, 2000 (the "Agreement").
As used herein the term

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                                      -2-

"this Warrant" shall mean and include this Warrant and any Warrant or Warrants
hereafter issued as a consequence of the exercise or transfer of this Warrant in
whole or in part.

         The number of shares of Common Stock issuable upon exercise of the
Warrants (the "Warrant Shares") and the Exercise Price may be adjusted from time
to time as hereinafter set forth.

         1. This Warrant may be exercised during the Exercise Period, as to the
whole or any lesser number of whole Warrant Shares, by the surrender of this
Warrant (with the "Election to Exercise" attached hereto, duly executed) to the
Company at its office at 1000 Universal Studios Plaza, Building 22A, Orlando,
Florida 32819, or at such other place as is designated in writing by the
Company, together with cash or a certified or bank cashiers check payable to the
order of the Company in an amount equal to the Exercise Price multiplied by the
number of Warrant Shares for which this Warrant is being exercised. Each Warrant
not exercised prior to 5:00 p.m. on March 28, 2003 New York time shall become
null and void and all rights thereunder shall cease as of such time.

         2. Upon receipt by the Company of the Warrant, the "Election to
Exercise" and the aggregate Exercise Price for the Warrant Shares, the Holder
shall be deemed to be the holder of record of the Warrant Shares issuable upon
such exercise; provided, however, that if the date of such receipt is a date
upon which the transfer books of the Company are closed, the Holder shall be
deemed to be the record holder on the next succeeding business day on which such
books are open. No later than three (3) business days after each such exercise
of this Warrant, the Company shall issue and cause to be delivered to the Holder
a certificate or certificates for the Warrant Shares issuable upon such
exercise, registered in the name of the Holder or its designee. If this Warrant
should be exercised in part only, the Company shall, upon surrender of this
Warrant for cancellation, execute and deliver a new Warrant evidencing the right
of the Holder to purchase the remaining unexercised balance of the Warrant
Shares (or portions thereof) subject to purchase hereunder.

         3. (a) Any Warrants issued upon the transfer or exercise in part of
this Warrant shall be numbered and shall be registered in a warrant register
(the "Warrant Register") as they are issued. The Company shall be entitled to
treat the registered holder of any Warrant on the Warrant Register as the owner
in fact thereof for all purposes and shall not be bound to recognize any
equitable or other claim to or interest in such warrant on the part of any other
person, and shall not be liable for any registration or transfer of Warrants
which are registered or to be registered in the name of a fiduciary or the
nominee of a fiduciary unless made with the actual knowledge that a fiduciary or
nominee is committing a breach of trust in requesting such registration or
transfer, or with the knowledge of such facts that its participation therein
amounts to bad faith. This Warrant shall be transferable only on the books of
the Company upon delivery thereof duly endorsed by the Holder or by his duly
authorized attorney or repre-

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                                      -3-

sentative, or accompanied by proper evidence of succession, assignment, or
authority to transfer. In all cases of transfer by an attorney, executor,
administrator, guardian, or other legal representative, duly authenticated
evidence of his or its authority shall be produced. Upon any registration of
transfer, the Company shall cause to be delivered a new Warrant or Warrants to
the person entitled thereto. This Warrant may be exchanged at the option of the
Holder thereof, for another Warrant, or other Warrants of different
denominations, of like tenor and representing in the aggregate the right to
purchase a like number of Warrant Shares (or portions thereof), upon surrender
to the Company or its duly authorized agent. Notwithstanding the foregoing, the
Company shall have no obligation to cause Warrants to be transferred on its
books to any person if, in the opinion of counsel to the Company, such transfer
does not comply with the provisions of the Securities Act of 1933, as amended
(the "Act"), and the rules and regulations thereunder.

                  (b) The Holder acknowledges that he has been advised by the
Company that neither this Warrant nor the Warrant Shares have been registered
under the Act, that this Warrant is being or has been issued and the Warrant
Shares may be issued on the basis of the statutory exemption provided by Section
4(2) of the Act or Regulation D promulgated thereunder, or both, relating to
transactions by an issuer not involving any public offering, and that the
Company's reliance thereon is based in part upon the representations made by the
original Holder in the original Holder's Subscription Agreement executed and
delivered in accordance with the terms of the Offering (the "Subscription
Agreement"). The Holder acknowledges that he is familiar with the nature of the
limitations imposed by the Act and the rules and regulations thereunder on the
transfer of securities. In particular, the Holder agrees that no sale,
assignment or transfer of this Warrant or the Warrant Shares issuable upon
exercise hereof shall be valid or effective, and the Company shall not be
required to give any effect to any such sale, assignment or transfer, unless (i)
the sale, assignment or transfer of this Warrant or such Warrant Shares is
registered under the Act, it being understood that neither this Warrant nor such
Warrant Shares are currently registered for sale and that the Company has no
obligation or intention to so register this Warrant or such Warrant Shares
except as specifically provided herein or in the Subscription Agreement, or (ii)
this Warrant or such Warrant Shares are sold, assigned or transferred in
accordance with all the requirements and limitations of Rule 144 under the Act,
it being understood that Rule 144 is not available at the time of the original
issuance of this Warrant for the sale of this Warrant or such Warrant Shares and
that there can be no assurance that Rule 144 sales will be available at any
subsequent time, or (iii) such sale, assignment, or transfer is otherwise exempt
from registration under the Act.

         4. The Company shall at all times reserve and keep available out of its
authorized and unissued Common Stock, solely for the purpose of providing for
the exercise of the rights to purchase Warrant Shares granted pursuant to the
outstanding Warrants, such number of shares of Common Stock as shall, from time
to time, be sufficient therefor. The Company

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                                      -4-

covenants that the Warrant Shares, upon receipt by the Company of the full
Exercise Price therefor, shall be validly issued, fully paid, nonassessable, and
free of preemptive rights.

         5. (a) In case the Company shall at any time after the date this
Warrant is first issued (i) declare a dividend on any class of the outstanding
capital stock of the Company (the "Capital Stock") payable in shares of its
Capital Stock, (ii) subdivide any class of the outstanding Capital Stock, or
(iii) combine any class of the outstanding Capital Stock into a smaller number
of shares, then, in each case, the Exercise Price, and the number of Warrant
Shares issuable upon exercise of this Warrant, in effect at the time of the
record date for such dividend or of the effective date of such subdivision, or
combination, shall be proportionately adjusted so that the Holder after such
time shall be entitled to receive the aggregate number and kind of shares for
such consideration which, if such Warrant had been exercised immediately prior
to such time at the then-current exercise price, he would have owned upon such
exercise and been entitled to receive by virtue of such dividend, subdivision,
or combination. Such adjustment shall be made successively whenever any event
listed above shall occur.

                  Additionally, if the Company at any time shall issue any
shares of Common Stock prior to the exercise of this entire Warrant (other than
(i) issuances in connection with the Company's initial public offering of
securities or (ii) issuances in connection with Sections 5 and 6 of this
Warrant, or (iii) pursuant to options, warrants, or other obligations to issue
shares of Common Stock, outstanding on the date of the issuance of this Warrant;
[(i), (ii) and (iii) above, are hereinafter referred to as the "Existing Option
Obligations"], for a consideration less than the Exercise Price that would be in
effect at the time of such issue, then, and thereafter successively upon each
such issue, the Exercise Price shall be reduced as follows: (i) the number of
shares of Common Stock outstanding immediately prior to such issue shall be
multiplied by the Exercise Price in effect at the time of such issue and the
product shall be added to the aggregate consideration, if any, received by the
Company upon such issue of additional shares of Common Stock; and (ii) the sum
so obtained shall be divided by the number of shares of Common Stock outstanding
immediately after such issue. The resulting quotient shall be the adjusted
exercise price. Except for the Existing Option Obligations and options that may
be issued under any employee incentive stock option and/or any qualified stock
option plan adopted by the Company, for purposes of this adjustment, the
issuance of any security of the Company carrying the right to convert such
security into shares of Common Stock or of any warrant, right or option to
purchase Common Stock shall result in an adjustment to the Exercise Price upon
the issuance of shares of Common Stock upon exercise of such exercise or
purchase rights.

                  (b) No adjustment in the Exercise Price shall be required if
such adjustment is less than $.01; provided, however, that any adjustments which
by reason of this Section 5(b) are not required to be made shall be carried
forward and taken into account in any

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                                      -5-

subsequent adjustment. All calculations under this Section 5 shall be made to
the nearest cent or to the nearest one-thousandth of a share, as the case may
be.

                  (c) In any case in which this Section 5 shall require that an
adjustment in the Exercise Price be made effective as of a record date for a
specified event, the Company may elect to defer, until the occurrence of such
event, issuing to the Holder, if the Holder exercised this Warrant after such
record date, the shares of Common Stock, if any, issuable upon such exercise
over and above the shares of Common Stock, if any, issuable upon such exercise
on the basis of the Exercise Price in effect prior to such adjustment; provided,
however that the Company shall deliver to the Holder a due bill or other
appropriate instrument evidencing the Holder's right to receive such additional
shares upon the occurrence of the event requiring such adjustment.

                  (d) Whenever there shall be an adjustment as provided in this
Section 5, the Company shall promptly cause written notice thereof to be sent by
Certified mail, postage prepaid, to the Holder, at its address as it shall
appear in the Warrant Register, which notice shall be accompanied by an
officer's certificate setting forth the number of Warrant Shares purchasable
upon the exercise of this Warrant and the Exercise Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment and
the computation thereof, which officer's certificate shall be conclusive
evidence of the correctness of any such adjustment absent manifest error.

                  (e) The Company shall not be required to issue fractions of
shares of Common Stock of the Company upon the exercise of this Warrant. If any
fraction of a share would be issuable on the exercise of this Warrant (or
specified portions thereof), the Company shall purchase such fraction for an
amount in cash equal to the same fraction of the Current Market Price of such
share of Common Stock on the date of exercise of this Warrant.

         6. (a) In case of any consolidation with or merger of the Company with
or into another corporation (other than a merger or consolidation in which the
Company is the surviving or continuing corporation), or in case of any sale,
lease, or conveyance to another corporation of the property and assets of any
nature of the Company as an entirety or substantially as an entirety, such
successor, leasing, or purchasing corporation, as the case may be, shall (i)
execute with the Holder an agreement providing that the Holder shall have the
right thereafter to receive upon exercise of this Warrant solely the kind and
amount of shares of stock and other securities. property, cash, or any
combination thereof receivable upon such consolidation, merger, sale, lease, or
conveyance by a holder of the number of shares of Common Stock for which this
Warrant might have been exercised immediately prior to such consolidation,
merger, sale, lease, or conveyance, and (ii) make effective provision in its
certificate of incorporation or otherwise, if necessary, to effect such
agreement. Such agreement

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                                      -6-

shall provide for adjustments which shall be as nearly equivalent as practicable
to the adjustments in Section 5.

                  (b) In case of any reclassification or change of the shares of
Common Stock issuable upon exercise of this Warrant (other than a change in par
value or from no par value to a specified par value, or as a result of a
subdivision or combination. but including any change in the shares into two or
more classes or series of shares), or in case of any consolidation or merger of
another corporation into the Company in which the Company is the continuing
corporation and in which there is a reclassification or change (including a
change to the right to receive cash or other property) of the shares of Common
Stock (other than a change in par value or from no par value to a specified par
value or as a result of a subdivision or combination, but including any change
in the shares into two or more classes or series of shares), the Holder shall
have the right thereafter to receive upon exercise of this Warrant solely the
kind and amount of shares of stock and other securities, property, cash, or any
combination thereof receivable upon such reclassification, change, consolidation
or merger by a holder of the number of shares of Common Stock for which this
Warrant might have been exercised immediately prior to such reclassification,
change, consolidation, or merger. Thereafter, appropriate provision shall be
made for adjustments which shall be as nearly equivalent as practicable to the
adjustments in Section 5.

                  (c) The above provisions of this Section 6 shall similarly
apply to successive reclassifications and changes of shares of Common Stock and
to successive consolidations mergers, sales, leases, or conveyances. The
issuance of any shares or other securities upon the exercise of this Warrant,
and the delivery of certificates or other instruments representing such shares
or other securities, shall be made without charge the Holder for any tax or
other charge in respect of such issuance. The Company shall not, however, be
required to pay any tax which may be payable in respect of any transfer or
delivery of this Warrant to a person other than, or the issuance and delivery of
any certificate in a name other than that of the registered Holder and the
Company shall not be required to issue or deliver any such certificate unless
and until the person or persons requesting the issue thereof shall have paid to
the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid.

         7. (a) (i) The Company shall register for public resale the Warrant
Shares (the "Registrable Securities") in the initial public offering of the
Company's securities.

         (ii)     PIGGYBACK REGISTRATION. If, at any time after the completion
of an initial public offering of the Company's securities, the Company proposes
to prepare and file with the Securities and Exchange Commission (the
"Commission") a registration statement covering equity or debt securities of the
Company, or any such securities of the Company held by its shareholders (other
than pursuant to Form S-8 or successor form), (for purposes of this

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                                      -7-

Section 7, collectively, a "Registration Statement"), it will give written
notice of its intention to do so by registered mail ("Notice"), at least thirty
(30) days prior to the filing of each such Registration Statement, to all
holders of the Registrable Securities. Upon the written request of such a holder
(a "Requesting Holder"), made within twenty (20) days after receipt of the
Notice, requesting the Company to include any of the Requesting Holder's
Registrable Securities in the proposed Registration Statement, the Company
shall, as to each such Requesting Holder, effect the registration under the
Securities Act of the Registrable Securities which it has been so requested to
register ("Piggyback Registration"), at the Company's sole cost and expense and
at no cost or expense to the Requesting Holders except as provided in this
Section 7.

                  With respect to the Piggyback Registration only, the Company
shall have the right at any time after it shall have given written notice
pursuant to this Section 7 (irrespective of whether any written request for
inclusion of such securities shall have already been made) to elect not to file
any such proposed Registration Statement, or to withdraw the same after the
filing but prior to the effective date thereof.

                (iii) DEMAND REGISTRATION RIGHTS. At any time commencing on the
day following the completion of an initial public offering of the Company's
Securities, and expiring on the fifth anniversary therefrom, the Requesting
Holders of a Majority (as hereinafter defined) in interest of the Registrable
Securities shall have the right to require the Company, at the Company's sole
cost and expense, to prepare, file with the Commission within thirty (30) days
of receiving the Registration Request (as defined herein) and cause to become
effective within sixty (60) days thereafter, on one (1) occasion, a registration
statement on Form S-l, or other appropriate form, and such other documents,
including a prospectus, as may be necessary in order to comply with the
provisions of the Act, to register a public offering and sale, for a period of
not less than eighteen (18) months, of the Registrable Securities by such
Requesting Holders and any other Requesting Holders of the Registrable
Securities who notify the Company within fifteen (15) business days after
receipt of the notice described in this Section 7(a) (iii).

                  The Requesting Holders shall exercise their right to demand
registration under this section by notice (the "Registration Request"). The
Company covenants and agrees to give notice of any Registration Request under
this section by any Requesting Holders to all other registered holders of
Registrable Securities no later than ten (10) calendar days from the date of the
receipt of any such Registration Request.

                  For purposes of this section, the term "Majority" means an
amount in excess of fifty percent (50%) of the number of then outstanding
Registrable Securities that (i) are not held by the Company, an affiliate,
director, officer, creditor, employee, or agent thereof or any of their
respective affiliates, members of their family, persons acting as nominees or in
con-

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                                      -8-

junction therewith, or (ii) have not been resold to the public pursuant to a
Registration Statement filed with the Commission under the Act or pursuant to an
exemption therefrom.

                  (b) In the event of a registration pursuant to the provisions
of this Section 7, the Company shall cause the Registrable Securities so
registered to be registered or qualified for sale under the securities and/or
blue sky laws of such jurisdictions as the holder or such holders (the "Eligible
Holders") may reasonably request; provided however, that the Company shall not
by reason of this Section 7(b) be required to qualify to do business in any
state in which it is not otherwise required to qualify to do business or to file
a general consent to service of process.

                  (c) The Company shall keep effective any registration or
qualification contemplated by this Section 7 and shall from time to time amend
or supplement each applicable registration statement, preliminary prospectus,
final prospectus, application, document, and communication for such period of
time as shall be required (but not less than eighteen (18) months) to permit the
Eligible Holders to complete the offer and sale of the Registrable Securities
covered thereby. If the Company fails to keep the Registration Statement
referred to in Section 7 above continuously effective during the requisite
period, then the Company shall promptly update the Registration Statement or
file a new registration statement covering the Registrable Securities remaining
unsold, subject to the terms and provisions hereof. Notwithstanding the
foregoing, the failure of the Company to keep effective any registration
statement contemplated by this Section 7 shall be deemed to be a breach of this
Section 7.

                  (d) In the event of a registration pursuant to the provisions
of this Section 7, the Company shall furnish to each Eligible Holder such
reasonable number of copies of the registration statement and of each amendment
and supplement thereto (in each case, including all exhibits), such reasonable
number of copies of each prospectus contained in such registration statement and
each supplement or amendment thereto (including each preliminary prospectus),
all of which shall conform to the requirements of the Act and the rules and
regulations thereunder. and such other documents as any Eligible Holder may
reasonably request to facilitate the disposition of the Registrable Securities
included in such registration.

                  (e) In the event of a registration pursuant to the provision
of this Section 7, the Company and each Eligible Holder shall enter into a
cross-indemnity agreement and a contribution agreement, each in customary form
with each underwriter, if any, and, if requested, enter into an underwriting
agreement containing customary representations, warranties, allocation of
expenses, and customary closing conditions, including, without limitation,
opinions of counsel and accountants' cold comfort letters, with any underwriter
who acquires any Registrable Securities.

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                                      -9-

                  (f) The Company agrees that until all the Registrable
Securities have been sold under a registration statement or pursuant to Rule 144
under the Act it shall keep current in filing all reports, statements and other
materials required to be filed with the Commission to permit holders of the
Registrable Securities to sell such securities under Rule 144.

                  (g) The Company agrees that each Eligible Holder of
Registrable Securities will suffer damages if the Company fails to fulfill its
obligations under this Section 7 and that ascertaining the extent of such
damages with precision would not be feasible. If the Company breaches this
Section 7, each Eligible Holder shall receive a cash payment equal to the
greater of (i) 10% of the Eligible Holder's aggregate per share Exercise Price
or (ii) 10% of the fair market value of the Common Stock multiplied by the
number of Warrant Shares held or which may be purchased by that Eligible Holder,
for each 30-day delay, or part thereof payable promptly after the expiration of
each 30 day period, in the filing of the registration statement or effective
date of the registration statement, whichever may be applicable. For purposes of
this Section, "fair market value" shall mean the average of the closing bid and
closing asked prices of the Common Stock on the five (5) consecutive trading
days immediately prior to the date of the Company's breach of this Section 7.

         8.       At any time during the Exercise Period, the Holder may, at its
option, exchange this Warrant, in whole or in part (a "Warrant Exchange"), into
the number of fully paid and non-assessable Warrant Shares determined in
accordance with this Section 8, by surrendering this Warrant at the principal
office of the Company or at the office of its transfer agent, accompanied by a
notice stating such Holder's intent to effect such exchange, the number of
Warrant Shares to be exchanged (the "Notice of Exchange") and the date on which
the Holder requests that such Warrant Exchange occur (the "Exchange Date").
Certificates for the Warrant Shares issuable upon such Warrant Exchange and, if
applicable, a new Warrant of like tenor evidencing the balance of the Warrant
Shares remaining subject to the Holder's Warrant certificate, shall be issued as
of the Exchange Date and delivered to the Holder within five (5) business days
following the Exchange Date. In connection with any Warrant Exchange, the
Holder's Warrant certificate shall represent the right to subscribe for and
acquire (i) the number of Warrant Shares (rounded to the next highest integer)
equal to the product of (A) the number of Warrant Shares as to which the
warrants are being exercised as specified by the Holder in its Notice of
Exchange (the "Total Share Number") multiplied by (y), a fraction, the numerator
of which is the Market Price (as defined herein) of the Common Stock less the
Exercise Price of the Warrant Shares and the denominator of which is the Market
Price per share of Common Stock. Solely for the purposes of this Section 8,
Market Price shall be calculated either (i) on the date on which the form of
election to exercise attached hereto is deemed to have been sent to the Company
or (ii) as the average of the Market Price for each of the five trading days
immediately preceding the Notice Date, whichever of (i) or (ii) results in a
greater Market Price.

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                                      -10-

                  For the purpose of this Section 8, the phrase "Market Price"
at any date shall be deemed to be the (i) last reported sale price on the last
trading day or, in case no such reported sale takes place on such day, the
average last reported sale price for the last three (3) trading days, in either
case as officially reported by the principal securities exchange on which the
Common Stock is listed or admitted to trading, or, (ii) if the Common Stock is
not listed or admitted to trading on any national securities exchange but is
listed or quoted upon the Nasdaq National Market or SmallCap Market (referred to
hereinafter as "NASDAQ"), the closing bid price on the last trading day, or, in
case no such reported bid takes place on such day, the average closing bid price
for the last three (3) trading days, as furnished by NASDAQ or similar
organization if NASDAQ is no longer reporting such information, or (iii) if the
Common Stock is not listed upon a principal exchange or quoted on NASDAQ, but
quotes for the Common Stock are available in the OTC Bulletin Board or "pink
sheets" the closing bid price on the last trading day, or, in case no such bid
takes place on such day, the average closing bid price for the last three (3)
trading days as furnished on the OTC Bulletin Board or any other reliable
reporting service or (iv) in the event the Common Stock is not traded upon a
principal exchange and not listed on NASDAQ and quotes are not available on the
OTC Bulletin Board or any other reliable reporting service, the price as
determined in good faith by resolution of the Board of Directors of the Company,
based on the best information available to it.

         9.       The shares of Common Stock received upon the exercise of this
Warrant are subject to certain Lock-Up provisions contained in the Subscription
Agreement between the Company and the original Holder of this Warrant.

         10.      (a) Subject to the conditions set forth below, the Company
agrees to indemnify and hold harmless each Eligible Holder, its officers,
directors, partners, employees, agents, and counsel, and each person. if any,
who controls any such person within the meaning of Section 15 of the Act or
Section 20(a) of the Exchange Act, from and against any and all loss, liability,
charge, claim, damage, and expense whatsoever (which shall include for all
purposes of this Section 8, without limitation, reasonable attorneys' fees and
any and all expense whatsoever incurred in investigating, preparing, or
defending against any litigation, commenced or threatened or any claim
whatsoever, and any and all amounts paid in settlement of any claim or
litigation), as and when incurred, arising out of, based upon, or in connection
with, or (i) any breach of any representation, warranty, covenant, or agreement
of the Company contained in any of the Warrants, any untrue statement or alleged
untrue statement of a material fact contained (A) in any registration statement,
preliminary prospectus, or final prospectus (as from time to time amended and
supplemented), or any amendment or supplement thereto relating to the sale of
any of the Registrable Securities, or (B) in any application or other document
or communication (in this Section 8 collectively called an "application")
executed by or on behalf of the Company or based upon written information
furnished by or

<PAGE>
                                      -11-

on behalf of the Company filed in any jurisdiction in order to
register or qualify any of the Registrable Securities under the securities or
blue sky laws thereof or filed with the commission or any securities exchange;
or any omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading,
unless such statement or omission was made in reliance upon and in conformity
with written information furnished to the Company with respect to such Eligible
Holder by or on behalf of such person expressly for inclusion in any
registration statement, preliminary prospectus, or final prospectus, or any
amendment or supplement thereto or in any application, as the case may be.
Notwithstanding the foregoing, the Company shall not be responsible for any
failure of Weatherly Securities Corp. ("Weatherly" ) to file, on behalf of the
Company, Blue Sky applications in jurisdictions where Weatherly is offering
Units (as defined in the Subscription Agreement) and where such application is
required by law. The foregoing agreement to indemnify, shall be in addition to
any liability the company may otherwise have, including liabilities arising
under any of the Warrants.

                  If any action is brought against any Eligible Holder or any of
its officers, directors, partners, employees, agents, or counsel, or any
controlling persons of such person (an "indemnified party") in respect of which
indemnity may be sought against the Company pursuant to the foregoing paragraph,
such indemnified party or parties shall promptly notify the Company in writing
of the institution of such action (but the failure so to notify shall not
relieve the Company from any liability under this Section 8(a) unless the
Company shall have been materially prejudiced by such failure or relieve the
Company from any liability other than pursuant to this Section 8(a)) and the
Company shall promptly assume the defense of such action, including the
employment of counsel (reasonably satisfactory to such indemnified party or
parties) and payment of expenses. Such indemnified party or parties shall have
the right to employ its or their own counsel in any such case, but the fees and
expenses of such counsel shall be at the expense of such indemnified party or
parties unless the employment of such counsel shall have been authorized in
writing by the Company in connection with the defense of such action, or the
Company shall not have employed counsel reasonably satisfactory to such
indemnified party or parties to have charge of the defense of such action or
such indemnified party, or parties shall have reasonably concluded that there
may be one or more legal defenses available to it or them or to other
indemnified parties which are different from or additional to those available to
the Company, in any of which events such fees and expenses shall be borne by the
Company and the Company shall not have the right to direct the defense of such
action on behalf of the indemnified party or parties. Anything in this Section 8
to the contrary, notwithstanding, the Company shall not be liable for any
settlement of any such claim or action effected without its written consent,
which shall not be unreasonably withheld. The Company agrees promptly to notify
the Eligible Holders of the commencement of any litigation or proceedings
against the Company or any of its officers or directors in connection with the
sale of any Registrable Securities or any preliminary prospectus, prospectus,

<PAGE>
                                      -12-

registration statement or amendment or supplement thereto, or any application
relating to any sale of any Registrable Securities.

                  (b) The Holder agrees to indemnify and hold harmless the
Company, each director of the Company, each officer of the Company who shall
have signed any registration statement covering Registrable Securities held by
the Holder, each other person, if any, who controls the Company within the
meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, and its
or their respective counsel, to the same extent as the foregoing indemnity from
the Company to the Eligible Holders in Section 8(a), but only with respect to
statements or omissions, if any, made in any registration statement, preliminary
prospectus or final prospectus (as from time to time amended and supplemented),
or any amendment or supplement thereto, or in any application, in reliance upon
and in conformity with written information furnished to the Company with respect
to the Holder by or on behalf of the Holder expressly for inclusion in any such
registration statement, preliminary prospectus, or final prospectus, or an
amendment or supplement thereto, or in any application, as the case may be. If
any action shall be brought against the Company or any other person so
indemnified based on any such registration statement, preliminary prospectus, or
final prospectus, or any amendment or supplement thereto, or in any application,
and in respect of which indemnity may be sought against the Holder pursuant to
this Section 8(b), the Holder shall have the rights and duties given to the
Company, and the Company and each other person so indemnified shall have the
rights and duties given to the indemnified parties, by the provisions of Section
8(a). Notwithstanding the foregoing or anything to the contrary provided for in
this Warrant, the total aggregate liability of each Holder shall not exceed the
aggregate cash proceeds received by such Holder in connection with the sale of
the Warrant Shares, Warrant Securities and/or any Registrable Security.

                  (c) To provide for just and equitable contribution, if (i) an
indemnified party makes a claim for indemnification pursuant to Section 8(a) or
8(b) (subject to the limitations thereof) but it is found in a final judicial
determination not subject to further appeal, that such indemnification may not
be enforced in such case even though this Warrant expressly provides for
indemnification in such case, or (ii) any indemnified or indemnifying party
seeks contribution under the Act, the Exchange Act or otherwise, then the
Company (including for this purpose any contribution made by or on behalf of any
director of the Company, any officer of the Company who signed any such
registration statement, any controlling person of the Company, and its or their
respective counsel), as one entity, and the Eligible Holders of the Registrable
Securities included in such registration in the aggregate (including for this
purpose any contribution by or on behalf of an indemnified party), as a second
entity, shall contribute to the losses, liabilities, claims, damages, and
expenses whatsoever to which any of them may be subject, on the basis of
relevant equitable considerations such as the relative fault of the Company and
such Eligible Holders in connection with the facts which re-

<PAGE>
                                      -13-

sulted in such losses, claims, damages, and expenses. The relative fault, in the
case of an untrue statement, alleged untrue statement, omission, or alleged
omission, shall be determined by, among other things, whether such statement,
alleged statement, omission or alleged omission relates to information supplied
by the Company or by such Eligible Holders and the parties, relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement, alleged statement, omission, or alleged omission. The Company and the
Holder agree that it would be unjust and inequitable if the respective
obligations of the Company and the Eligible Holders for contribution were
determined by pro rata or per capita allocation of the aggregate losses,
liabilities, claims, damages. and expenses (even if the Eligible Holders and the
other indemnified parties were treated as one entity for such purpose) or by any
other method of allocation that does not reflect the equitable considerations
referred to in this Section 8(c). In no case shall any Eligible Holder be
responsible for a portion of the contribution obligation imposed on all Eligible
Holders in excess of its pro rata share based on the number of shares of Common
Stock owned (or which would be owned upon exercise of all Registrable
Securities) by it and included in such registration as compared to the number of
shares of Common Stock owned (or which would be owned upon exercise of all
Registrable Securities) by all Eligible Holders and included in such
registration. No person guilty of a fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any
person who is not guilty of such fraudulent representation. For purposes of this
Section 8(c), each person, if any, who controls any Eligible Holder within the
meaning of Section 15 of the Act or Section 20(a) of the Exchange Act and each
officer, director, partner, employee, agent, and counsel of each such Eligible
Holder or control person shall have the same rights to contribution as each
Eligible Holder or control person and each person, if any, who controls the
Company within the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act, each officer of the Company who shall have signed any such
registration statement, each director of the Company, and its or their
respective counsel shall have the same rights to contribution as the company,
subject in each case to the provisions of this Section 8(c). Anything in this
Section 8(c) to the contrary, notwithstanding, no party shall be liable for
contribution with respect to the settlement of any claim or action effected
without its written consent. This Section 8(c) is intended to supersede any
right to contribution under the Act, the Exchange Act or otherwise.

         11.      Unless registered pursuant to the provisions of Section 7
hereof, the Warrant Shares issued upon exercise of the Warrants shall be subject
to a stop transfer order and the certificate or certificates evidencing such
warrant Shares shall bear the following legend:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH
                  SECURITIES NOR ANY INTEREST

<PAGE>
                                      -14-

                  THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
                  TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT
                  THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
                  SECURITIES LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF
                  COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND
                  OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
                  SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
                  TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
                  REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE
                  SECURITIES LAWS."

         In addition, any Warrants issued upon transfer or any new Warrants
issued shall bear a similar legend.

         12.      Upon receipt of evidence satisfactory to the Company of the
loss, theft, destruction, or mutilation of any Warrant (and upon surrender of
any Warrant if mutilated) including an affidavit of the Holder thereof that this
Warrant has been lost, stolen, destroyed or mutilated, together with an
indemnity against any claim that may be made against the Company on account of
such lost, stolen, destroyed or mutilated Warrant, and upon reimbursement of the
Company's reasonable incidental expenses, the Company shall execute and deliver
to the Holder thereof a new Warrant of like date, tenor, and denomination.

         13.      The Holder of any Warrant shall not have solely on account of
such status, any rights of a stockholder of the Company, either at law or in
equity, or to any notice of meetings of stockholders or of any other proceedings
of the Company except as provided in this warrant.

         14.      This Warrant shall be construed in accordance with the laws of
the State of New York applicable to contracts made and performed within such
State, without regard to principles governing conflicts of law.

         15.      The Company irrevocably consents to the jurisdiction of the
courts of the State of New York and of any federal court located in such State
in connection with any action or proceeding arising out of or relating to this
Warrant, any document or instrument delivered pursuant to, in connection with or
simultaneously with this Warrant. or a breach of this Warrant or any such
document or instrument. In any such action or proceeding, the Company waives
personal service of any summons, complaint or other process and agrees that
service thereof may be made in accordance with Section 11(G)(ii) of the
Subscription Agreement. Within 30 days after such service, or such other time as
may be mutually agreed upon in

<PAGE>
                                      -15-

writing by the attorneys for the parties to such
action or proceeding, the Company shall appear to answer such summons, complaint
or other process.

         16.      Any or other communication required or permitted to be given
hereunder shall be in writing and shall be mailed by certified mail, return
receipt requested, or by Federal Express, Express Mail or similar overnight
deliver, or courier service or delivered (in person or by telecopy, telex or
similar telecommunications equipment) against receipt to the party to whom it is
to be given, (i) if to the Company, at 1000 Universal Studios Plaza, Building
22A, Orlando, Florida 32819, Attention: President, (ii) if to the Holder, at its
address set forth on the first page hereof, or (iii) in either case, to such
other address as the party shall have furnished in writing in accordance with
the provisions of this Section 15. Notice to the estate of any party shall be
sufficient if addressed to the party as provided in this Section 15. Any notice
or other communication given by certified mail shall be deemed given at the time
of certification thereof except for a notice changing a party's address which
shall be deemed given at the time of receipt thereof. Any notice given by other
means permitted by this Section 5 shall be deemed given at the time of receipt
thereof.

         17.      No course of dealing and no delay or omission on the part of
the Holder in exercising any right or remedy shall operate as a waiver thereof
or otherwise prejudice the Holder's rights, powers or remedies. No right, power
or remedy conferred by this Warrant upon the Holder shall be exclusive of any
other right, power or remedy referred to herein or now or hereafter available at
law, in equity, by statute or otherwise, and all such remedies may be exercised
singly or concurrently.

<PAGE>
                                      -16-

         18.      This Warrant may be amended only by a written instrument
executed by the Company and the Holder hereof. Any amendment shall be endorsed
upon this Warrant, and all future Holders shall be bound thereby.

<TABLE>
<CAPTION>

Dated:  March 28, 2000

<S>                                        <C>
                                           VICTORY ENTERTAINMENT
                                           CORPORATION

                                           By:
                                              --------------------------------
                                              Name:  Michael Gerber
                                              Title: Present and Chief Executive
                                                     Officer

--------------------------------
------------------------, Secretary
</TABLE>

<PAGE>

                               FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the
attached Warrant.)

         FOR VALUE RECEIVED, _____________________________ hereby sells,
assigns. and transfers unto_________________________ a Warrant to purchase
________________ shares of Common Stock, par value $___ per share, of Victory
Entertainment Corp. (the "Company"), together with all right, title, and
interest therein, and does hereby irrevocably constitute and appoint
_________________ attorney to transfer such Warrant on the books of the Company,
with full power of substitution.

<TABLE>
<CAPTION>

<S>                                         <C>
Dated:--------------------------
                                            Signature
                                                     --------------------------

                                            Signature Guarantee
                                                     --------------------------
</TABLE>

                                     NOTICE

         The signature on the foregoing Assignment must correspond to the name
as written upon the face of this Warrant in every particular, without alteration
or enlargement or any change whatsoever.

<PAGE>

         To:      Victory Entertainment Corporation
                  1000 Universal Studies Plaza
                  Building 22A
                  Orlando, Florida  32819

                              ELECTION TO EXERCISE

The undersigned hereby exercises his or its rights to purchase_______________
Warrant Shares covered by the within Warrant and tenders payment herewith in the
amount of $___________ in accordance with the terms thereof, and requests that
certificates for such securities be issued in the name of, and delivered to:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
     (Print Name, Address and Social Security or Tax Identification Number)

and, if such number of Warrant shares shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares covered by the within Warrant be registered in the name of, and delivered
to, the undersigned at the address stated below.

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
     (Print Name, Address and Social Security or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares covered by the within Warrant be registered in the name of, and delivered
to, the undersigned at the address stated below.

Dated:--------------------------

                                                Name:
                                                     --------------------------
                                                     (Print)

Address:-----------------------------------------------------------------------

                                                -------------------------------
                                                (Signature)

                                                -------------------------------
                                                (Signature Guarantee)

<PAGE>
                                      -2-

                                                -------------------------------
                                                (Signature Guarantee)
<PAGE>

                        Name:
                             ------------------------------

                             SUBSCRIPTION AGREEMENT
                                       FOR
                             PROSPECTIVE SUBSCRIBERS
                                    OF UNITS

                           VICTORY ENTERTAINMENT CORP.

                  $5,000,000 MINIMUM - $7,500,000 MAXIMUM

                             UP TO $7,500,000 UNITS
   (EACH UNIT CONSISTING OF A 12.0% SENIOR SECURED PROMISSORY NOTE AND A
 COMMON STOCK PURCHASE WARRANT TO PURCHASE 8,000 SHARES OF COMMON STOCK OF
                                  THE COMPANY)

                        OFFERING PRICE: $50,000 PER UNIT
          MINIMUM SUBSCRIPTION: $50,000 (UNLESS WAIVED BY THE COMPANY)

                           WEATHERLY SECURITIES CORP.

                                 Placement Agent

                                February 18, 2000

<PAGE>

INSTRUCTIONS:

       I.   Items to be delivered by all Subscribers:

            a. One (1) completed and executed Subscription Agreements.

            b. One (1) completed and executed Subscriber Questionnaire.

            c. Payment in the amount of subscription, by wire transfer of funds
               or check. All checks should be made payable to "Victory
               Entertainment Corporation
               - Escrow Account."

Wire Transfer Instructions:

      FOR WIRE INSTRUCTIONS CONTACT:

            WEATHERLY SECURITIES CORP.
            Telephone:  (212) 412-7216

ALL DOCUMENTS SHOULD BE RETURNED TO:

            WEATHERLY SECURITIES CORP.
            TWO WORLD TRADE CENTER
            SUITE 2946
            NEW YORK, NEW YORK 10048
            TELEPHONE:  (212) 412-7216

            ATTN:  CORPORATE FINANCE DIVISION

<PAGE>

      THE SECURITIES OFFERED HEREBY MAY ONLY BE OFFERED OR SOLD TO
"ACCREDITED INVESTORS" WHO MEET THE SUITABILITY STANDARDS FOR INVESTMENT AS
EXPRESSED IN THIS SUBSCRIPTION AGREEMENT.

                          ------------------------

      AN INVESTMENT MADE IN THE SECURITIES OFFERED HEREBY IS SPECULATIVE AND
SUITABLE ONLY FOR PERSONS WHO HAVE SUBSTANTIAL FINANCIAL RESOURCES, WHO HAVE NO
NEED FOR LIQUIDITY IN THIS INVESTMENT AND WHO UNDERSTAND OR HAVE BEEN ADVISED
WITH RESPECT TO THE TAX CONSEQUENCES OF, AND RISK FACTORS ASSOCIATED WITH, THIS
INVESTMENT AND WHO ARE ABLE TO BEAR THE SUBSTANTIAL ECONOMIC RISK OF THIS
INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

                          ------------------------

      THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY
STATE OR OTHER JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT
AUTHORIZED.

                          ------------------------

      PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS
SUBSCRIPTION AGREEMENT AS LEGAL OR TAX ADVICE. EACH PROSPECTIVE INVESTOR SHOULD
CONSULT AND RELY UPON ITS OWN COUNSEL, ACCOUNTANT OR BSUINESS ADVISOR AS TO
LEGAL, TAX, AND RELATED MATTERS CONCERNING ITS INVESTMENT.

                          ------------------------

      NO PERSON HAS BEEN AUTHORIZED TO MAKE ANY REPRESENTATIONS OR FURNISH ANY
INFORMATION WITH RESPECT OT THE COMPANY OR THE UNITS OTHER THAN THE
REPRESENTATIONS AND INFORMATION SET FORTH IN THIS SUBSCRIPTION AGREEMENT AND ANY
OTHER DOCUMENTS OR OTHER INFORMATION FURNISHED UPON REQUEST OF THE PLACEMENT
AGENT AS DESCRIBED HEREIN.

                          ------------------------

      THE COMPANY WILL MAKE AVAILABLE, PRIOR TO THE CONSUMMATION OF THE
OFFERING, TO EACH PROSPECTIVE INVESTOR, ITS PURCHASER REPRESENTATIVE(S), OR
BOTH, THE OPPORTUNITY TO ASK QUESTIONS OF, AND RECEIVE ANSWERS FROM, THE COMPANY
OR A PERSON ACTING ON ITS BEHALF CONCERNING THE TERMS AND CONDITIONS OF THIS
OFFERING, THE COMPANY OR ANY OTHER RELEVANT MATTERS, AND TO OBTAIN ANY
ADDITIONAL INFORMATION, TO THE EXTENT THAT THE COMPANY POSSESSES SUCH
INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE.

                          ------------------------

      THIS OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE THE INITIAL CLOSING DATE
(AS DEFINED HEREIN) AND IS SPECIFICALLY MADE SUBJECT TO THE TERMS DESCRIBED IN
THIS SUBSCRIPTION AGREEMENT. THE COMPANY RESERVES THE RIGHT TO REJECT ANY
SUBSCRIPTION IN WHOLE OR IN PARTO OR TO ALLOT TO ANY PROSPECTIVE INVESTOR LESS
THAN THE AMOUNT OF UNITS SUBSCRIBED FOR BY SUCH INVESTOR.

                          ------------------------

      THIS SUBSCRIPTION AGREEMENT HAS BEEN PREPARED BY THE COMPANY SOLELY FOR
THE BENEFIT OF INVESTORS INTERESTED IN THE PROPOSED PRIVATE PLACEMENT OF UNITS.
<PAGE>

DISTRIBUTION OF THIS DOCUMENT TO ANY PERSON OTHER THAN SUCH OFFEREE AND THOSE
PERSONS RETAINED TO ADVISE SUCH PERSONS WITH RESPECT THERETO IS UNAUTHORIZED,
AND ANY REPRODUCTION OF THIS DOCUMENT, IN WHOLE OR IN PART, OR THE DIVULGENCE OF
ANY OF ITS CONTENTS, WITHOUT THE PRIOR WRITTEN CONSENT OFHTE COMPANY, IS
PROHIBITED.

                          ------------------------

      EACH OFFEREE, BY ACCEPTING DELIVERY OF THIS DOCUMENT, AGREES TO RETURN IT
AND ALL RELATED EXHIBITS AND OTHER DOCUMENTS TO THE COMPANY IF: (i) THE OFFERREE
DOES NOT INTEND TO SUBSCRIBE FOR THE PURCHASE OF THE UNITS; (ii) THE OFFEREE'S
SUBSCRIPTION IS NOT ACCEPTED; OR (iii) THE OFFERING IS TERMIANTED.

                          ------------------------

      THE OFFERING IS BEING MADE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT FOR AN OFFER AND SALE OF SECURITIES WHICH DOES NOT
INVOLVE A PUBLIC OFFERING. EACH PURCHASER OF THE UNITS OFFERED HEREBY, IN MAKING
ITS PURCHASE, WILL BE DEEMED TO HAVE MADE CERTAIN ACKNOWLEDGMENTS,
REPRESENTATIONS, AND AGREEMENTS AS SET FORTH HEREIN. PURCHASERS SHOULD BE AWARE
THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISK OF THEIR INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME.

                          ------------------------

      THE INFORMATION CONTAINED HEREIN HAS BEEN PROVIDED BY THE COMPANY AND
OTHER SOURCES IDENTIFIED HEREIN, BUT THERE CAN BE NO ASSURANCE AS TO THE
ACCURACY OR COMPLETENESS OF SUCH INFORMAITON. NO REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED, IS MADE BY THE PLACEMENT AGENT AS TO THE ACCURACY OR
COMPLETENESS OF SUCH INFORMAITON, AND NOTHING CONTAINED HEREIN IS OR SHOULD BE
RELIED UPON AS A PROMISE OR REPRESENTATION BY THE COMPANY OR THE PLACEMENT
AGENT.

                          ------------------------

      EACH PROSPECTIVE PURCHASER OF THE UNITS MUST COMPLY WITH ALL APPLICABLE
LAWS AND REGUALTIONS IN FORCE IN ANY JURISDICTION IN CONNECTION WITH THE
SUBSEQUENT OFFER OR SALE OF ANY UNITS PURCHASED PURSUANT TO THIS SUBSCRIPTION
AGREEMENT OR THE COMMON STOCK ISSUABLE UPON THE CONVERSION OF THE WARRANTS. IN
MAKING AN INVESTMENT DECISION, PROSPECTIVE PURCHASERS MUST RELY ON THEIR OWN
EXAMINATION OF THE COMPANY AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS
OF THE IVNESTMENT AND THE RISKS INVOLVED.

                          ------------------------

      THIS SUBSCRIPTION AGREEMENT CONTAINS SUMMARIES BELIEVED TO BE ACCURATE IN
ALL MATERIAL RESPECTS AS TO THE TERMS OF CERTAIN DOCUMENTS DESCRIBED HEREIN, BUT
REFERENCE IS HEREBY MADE TO THE ACTUAL DOCUMENTS (COPIES OF WHICH WILL BE MADE
AVAILABLE TO PROSPECTIVE PURCHASERS UPON REQUEST TO THE COMPANY OR THE PLACEMENT
AGENT) FOR COMPLETE INFORMAITON WITH RESPECT THERETO, AND ALL SUCH SUMMARIES ARE
QUALIFIED IN THEIR ENTIRETY BY SUCH REFERENCE.

                              NASAA UNIFORM LEGEND

      IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN
EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS
AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL

<PAGE>

OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE
FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY
OF THIS DOCUMENT, ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.
THESE SECURTITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND
MAY NOT BE TRANSFERRED OR RESOLVD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO
REGISTRAITON OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE
REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD
OF TIME.

                           SPECIFIC STATE DISCLOSURES

NEW JERSEY INVESTORS. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY
THE BUREAU OF SECURITIES OF THE STATE OF NEW JERSEY NOR HAS THE BUREAU PASSED ON
OR ENDORSED THE MERITS OF THIS OFFERING. THE FILING OF THE WITHIN OFFERING DOES
NOT CONSTITUTE APPROVAL OF THE ISSUE OR SALE THEREOF BY THE BUREAU OF
SECURITIES. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

NEW YORK  INVESTORS.  THE ATTORNEY  GENERAL OF THE STATE OF NEW YORK HAS NOT
PASSED ON OR ENDORSED  THE MERITS OF THE  OFFERING.  ANY  REPRESENTATION  TO
THE CONTRARY IS UNLAWFUL.

FLORIDA  INVESTORS.  THE UNITS  HAVE NOT BEEN  REGISTERED  WITH THE STATE OF
FLORIDA  UNDER  THE  FLORIDA  SECURITIES  AND  INVESTOR  PROTECTION  ACT AND
THEREFORE  CANNOT BE RESOLD  UNLESS  THEY ARE  REGISTERED  UNDER SAID ACT OR
ARE EXEMPT FROM REGISTRATION UNDER SAID ACT.

PURSUANT TO THE FLORIDA SECURITIES AND INVESTOR PROTECTION ACT, WHEN SALES ARE
MADE TO FIVE OR MORE PERSONS IN FLORIDA, ANY SALE IN FLORIDA MADE PURSUANT TO
SECTION 517.061(11), FLORIDA STATUTES (THE APPLICABLE PROVISION OF THE FLORIDA
SECURITIES AND INVESTOR PROTECTION ACT), SHALL BE VOIDABLE BY THE PURCHASER IN
SUCH SALE EITHER WITHIN THREE DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS
MADE BY SUCH PURCHASER TO THE ISSUER, AN AGENT OF THE ISSUER OR AN ESCROW AGENT,
OR WITHIN THREE DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS COMMUNICATED TO
SUCH PURCHASER, WHICHEVER OCCURS LATER. INVESTORS ARE HEREBY NOTIFIED OF SUCH
PRIVILEGE.

A PURCHASER MAY EXERCISE THIS VOIDING PRIVILEGE WITHIN THE AFORESAID APPLICABLE
THREE-DAY PERIOD BY SENDING A TELEGRAPH, FAX OR LETTER TO THE COMPANY AND
POSTMARKED, PRIOR TO THE END OF THE AFOREMENTIONED THIRD DAY. IN THE EVENT THIS
PRIVILEGE IS EXERCISED, IT WOULD BE PRUDENT TO SEND LETTERS BY CERTIFIED MAIL,
RETURN RECEIPT REQUESTED TO THE ABOVE ADDRESS TO EVIDENCE RECEIPT AND TIME OF
MAILING.

INVESTORS IN ALL STATES. THE PRESENCE OF A LEGEND OR NOTICE FOR ANY GIVEN STATE
REFLECTS ONLY THAT A LEGEND OR NOTICE MAY BE REQUIRED BY THAT STATE AND SHOULD
NOT BE CONSTRUED TO MEAN AN OFFER OR SALE MAY BE MADE IN ANY PARTICULAR STATE.
THIS AGREEMENT MAY BE SUPPLEMENTED BY ADDITIONAL STATE LEGENDS OR NOTICES. IF
YOU ARE UNCERTAIN AS TO WHETHER OR NOT OFFERS OR SALES MAY BE LAWFULLY MADE IN
ANY GIVEN STATE, YOU ARE ADVISED TO CONTACT THE COMPANY FOR A CURRENT LIST OF
STATES IN WHICH OFFERS OR SALES MAY BE LAWFULLY MADE.

<PAGE>

                               SUBSCRIPTION AGREEMENT

      The undersigned (the "Subscriber") hereby subscribes to purchase from
Victory Entertainment Corp., a Florida corporation (the "Company"), a number of
units (the "Units") set forth on the signature page hereof, for a purchase price
(the "Purchase Price") equal to $50,000 per Unit. Each Unit consists of a
$50,000 principal amount 12.0% Senior Secured Promissory Note (the "Notes") and
a Common Stock Purchase Warrant (a "Warrant" and collectively, the "Warrants")
to purchase 8,000 shares of common stock of the Company, par value $.001 per
share (the "Common Stock"). The Warrants are exercisable for three (3) years and
are convertible into shares of the Company's Common Stock (the "Conversion
Shares") at a conversion price (the "Exercise Price") equal to (i) $7.00 or if
the Company shall cause to become effective a registration statement to register
the Company's securities for public offer and sale (ii) 85% of the offering
price of the securities offered in the Company's initial public offering (the
"IPO").

      Each Note earns interest at the rate of 12.0% per annum in cash. The
principal and accrued interest on the Notes are due and payable at the earlier
of (i) the completion of the IPO or (ii) one year from the date of issuance
("Maturity Date"). Interest shall be due and payable at the Company's option,
upon ten (10) days written notice to the Holders, either (a) quarterly on April
1, 2000, July 1, 2000, October 1, 2000 and January 1, 2001 or (b) upon the
Maturity Date. The Notes are redeemable at the option of the Company, at a
redemption price equal to the outstanding principal amount of the Notes plus
accrued and unpaid interest upon 30 days within notice to the Holders without
penalty. The Notes shall be senior to all other debts of the Company and shall
be secured by all of the assets of the Company. The Units, Notes, Warrants and
Conversion Shares are hereinafter collectively referred to as the "Securities."

      The Company is offering a minimum of $5,000,000 principal amount of Units
and a maximum of $7,500,000 principal amount of Units through Weatherly
Securities Corp. (the "Placement Agent") (the "Offering"). The terms of the
Offering, the Units, and the Securities, are set forth above and the specific
terms of the Notes and Warrants are set forth in Exhibits A and B attached
hereto (Exhibit A is a form of Note and Exhibit B is a form of Warrant). Each
Subscriber should thoroughly review the form of Note and the form of Warrant.

Section 1.   SALE OF UNITS

      Subject to the terms and conditions hereof and on the basis of the
representations and warranties hereinafter set forth, the Company hereby agrees
to issue and sell to the Subscriber and the Subscriber agrees to purchase from
the Company, upon Closing, the Units as described above at a price per Unit of
$50,000. The Company may reject any subscription in whole or in part.

Section 2.  ESCROW
<PAGE>

      The Subscriber acknowledges and agrees that all subscription amounts will
be placed in a non-interest bearing escrow account pending receipt by the
Company of the minimum offering amount of $5,000,000 (the "Minimum Offering
Amount"). Once the Minimum Offering Amount has been subscribed for and accepted
by the Company and the Placement Agent, an initial closing ("Initial Closing")
will be held as soon as practicable. If the Minimum Offering Amount is not
received prior to March 31st then all funds held in escrow shall be returned to
Subscribers without interest or deduction. Assuming the Minimum Offering Amount
is subscribed for and accepted by March 31st (unless extended for up to an
additional 60 days by the Company) and a Closing held, thereafter additional
subscription funds will be placed into the escrow account and additional
closings will be held from time to time up to the sale of an additional
$2,500,000 principal amount of Units (the "Maximum Offering Amount"). Once the
Maximum Offering Amount has been subscribed for and accepted by the Company, a
final closing will be held ("Final Closing").

Section 3.  SUBSCRIBER'S REPRESENTATIONS AND WARRANTIES

      As an inducement to the Company and the Placement Agent to accept the
subscription, the Subscriber represents and warrants as follows:

      (A) The Subscriber acknowledges and agrees that the offering and sale of
the Securities is intended to be exempt from registration under the Securities
Act of 1933, as amended (the "Act,") by virtue of Section 4(2) of the Act, and
Regulation D, Rule 506 promulgated thereunder ("Regulation D") and, accordingly,
is being made solely to "accredited" investors as that term is defined in
Regulation D. In accordance therewith and in furtherance thereof, the Subscriber
represents and warrants to and agrees with the Company as follows please check
statements applicable to the Subscriber]:

      The Subscriber is an Accredited Investor because the Subscriber is (check
appropriate item):

      / /         (i)   a bank as defined in Section 3(a)(2) of the Act;

      / /         (ii)  a savings and loan association or other institution as
                        defined in Section 3(a)(5)(A) of the Act;

      / /         (iii) a broker or dealer registered pursuant to Section 15 of
                        the
                         Securities  Exchange  Act of 1934 as  amended  (the
                         "Exchange Act");

      / /         (iv)  an insurance company as defined in Section 2(13) of the
                        Act;
<PAGE>

      / /         (v)   an investment company registered under the Investment
                        Company Act of 1940, as amended or a business
                        development company as defined in Section 2(a)(48) of
                        such act;

      / /         (vi)  a Small business Investment Company licensed by the U.S.
                        Small Business Administration under Section 301 (c) or
                        (d) of the Small Business Investment Act of 19058;

      / /         (vii) an employee benefit plan within the meaning of Title I
                        of the Employee Retirement Income Security Act of 1974,
                        as amended, if the investment decision is made by a plan
                        fiduciary, as defined in Section 3(21) of such Act,
                        which is either a bank, savings and loan association,
                        insurance company, or registered investment adviser, or
                        if the employee benefit plan has total assets in excess
                        of $5,000,000 or, if a self-directed plan, with
                        investment decisions made solely by persons that are
                        accredited investors;

      / /         (viii) a private business development company as defined in
                        Section 202(a)(22) of the Investment Advisers Act of
                        1940, as amended;

      / /         (ix)  an organization described in Section 501(c)(3) of the
                        Internal Revenue Code, a corporation, Massachusetts or
                        similar business trust, or partnership, not formed for
                        the specific purpose of acquiring the securities
                        offered, with total assets in excess of $5,000,000;

      / /         (x)   a natural person whose individual net worth or joint net
                        worth with that person's spouse, at the time of his
                        purchase exceeds $1,000,000;

      / /         (xi)  a natural person who had an individual income in excess
                        of $200,000 in each of the two most recent years or
                        joint income with that person's spouse in excess of
                        $300,000 in each of those years and has a reasonable
                        expectation of reaching the same income level in the
                        current year;

      / /         (xii) a trust, with total assets in excess of $5,000,000, not
                        formed for the specific purpose of acquiring the
                        securities offered, whose purchase is directed by a
                        sophisticated person as described in Rule 506(b)(2)(ii)
                        of the Act; or

      / /         (xiii) an entity in which all of the equity owners are
                        accredited investors. (If this alternative is checked,
                        the Subscriber must identify each equity owner and
                        provide statements signed by each demonstrating how each
                        qualifies as an accredited investor.)
<PAGE>

      / /         (xiv) a plan established and maintained by a state, its
                        political subdivisions, or any agency or instrumentality
                        thereof, for the benefit of its employees, if such plan
                        has total assets in excess of $5,000,000

      / /         (xv) a director or officer of the Company.

      (B) The Subscriber hereby represents and warrants that the Subscriber is
acquiring the Securities hereunder for its own account for investment and not
with a view to distribution, and with no present intention of distributing the
Securities or selling the Securities for distribution. The Subscriber
understands that the Securities are being sold to the Subscriber in a
transaction which is exempt from the registration requirements of the Securities
Act of 1933, as amended (the "Securities Act"). The Subscriber's acquisition of
the Securities shall constitute a confirmation of the foregoing representation
and warranty and understanding thereof.

     (C) The Subscriber (or its Purchaser Representative if any) has such
knowledge and experience in financial and business matters as is required for
evaluating the merits and risks of making this investment, and the Subscriber or
its Purchaser Representatives has received such information requested by the
Subscriber concerning the business, management and financial affairs of the
Company in order to evaluate the merits and risks of making this investment.
Further, the Subscriber acknowledges that the Subscriber has had the opportunity
to ask questions of, and receive answers from, the officers of the Company
concerning the terms and conditions of this investment and to obtain information
relating to the organization, operation and business of the Company and of the
Company's contracts, agreements and obligations. No representation or warranty
is made by the Company to induce the Subscriber to make this investment, and any
representation or warranty not made herein or therein is specifically
disclaimed.

      (D) The Subscriber is making the foregoing representations and warranties
with the intent that they may be relied upon by the Company in determining the
suitability of the sale of the Securities to the Subscriber for purposes of
federal and state securities laws.

       (E) The Subscriber further acknowledges that the Subscriber has been
advised that the Securities being purchased by the Subscriber hereunder have not
been registered under the provisions of the Act and that the Company has
represented to the Subscriber (assuming the veracity of the representations of
the Subscriber made herein and in the purchaser questionnaire of even date) that
the Securities have been offered and sold by the Company in reliance upon an
exemption from registration provided in Section 4(2) of the Act and Regulation
D, Rule 506 thereunder.

      (F) In entering into this Agreement and in purchasing the Securities, the
Subscriber further acknowledges that:
<PAGE>

                   (i) The Company has informed the Subscriber that the
                   Securities have not been offered for sale by means of general
                   advertising or solicitation.

                   (ii) The Securities or any interest therein may not be resold
                   by the Subscriber in the absence of a registration under the
                   Act and applicable securities laws or exemption from
                   registration. In particular, the Subscriber is aware that the
                   Securities will be "restricted securities," as such term is
                   defined in Rule 144 promulgated under the Securities Act
                   ("Rule 144"), and they may not be sold pursuant to Rule 144,
                   unless the conditions thereof are met. Other than as set
                   forth herein, the Company has no obligation to register any
                   Securities purchased by Subscriber.

                   (iii) The following legend shall be placed on the
                   certificate(s) evidencing the Securities:

                   THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                   ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES
                   LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY
                   BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED
                   UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
                   EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
                   LAWS, OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO
                   THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE
                   REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES
                   MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE
                   MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION
                   STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

                   (iv) The Company may at any time place a stop transfer order
                   on its transfer books against the Securities. Such stop order
                   will be removed, and further transfer of the Securities will
                   be permitted upon an effective registration of the respective
                   Securities, or the receipt by the Company of an opinion of
                   counsel reasonably satisfactory to the Company that such
                   further transfer may be effected pursuant to an applicable
                   exemption from registration.
<PAGE>

                   (v) The purchase of the Securities involves risks which the
                   Subscriber has evaluated, and the Subscriber is able to bear
                   the economic risk of the purchase of such securities and the
                   loss of its entire investment.

      (G) The Subscriber has completed the accompanying Purchaser Questionnaire
and has delivered it herewith and represents and warrants that it is accurate
and true in all respects and that it accurately and completely sets forth the
financial condition of the Subscriber on the date hereof. The Subscriber has no
reason to expect there will be any material adverse change in its financial
condition and will advise the Company of any such changes occurring prior to the
closing or termination of the Offering.

      (H) The Subscriber has carefully evaluated the risks of this investment,
and understands and has relied only on the information provided to it in writing
by the Company relating to this investment.

      (I) The Subscriber understands and acknowledges that the Placement Agent
makes no representations or warranties as to the accuracy or completeness of the
information contained herein.

      (J) The Subscriber is not subscribing for any of the Securities as a
result of or subsequent to any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast
over television or radio, any seminar or meeting, or any solicitation of a
subscription by a person not previously known to the Subscriber in connection
with investments in securities generally.

      (K) The Subscriber has reached the age of majority in the state in which
the Subscriber resides, has adequate means of providing for the Subscriber's
current needs and personal contingencies, is able to bear the substantial
economic risks of an investment in the Securities for an indefinite period of
time, and has no need for liquidity in such investment.

      (L) The Subscriber's overall commitment to investments that are not
readily marketable is not, and his acquisition of Securities will not cause such
overall commitment to become, disproportionate to his net worth.

      (M) The Subscriber understands that the Company shall have the right to
accept or reject this subscription in whole or in part. Unless this subscription
is accepted in whole or in part by the Company prior to the expiration of the
Offering, this subscription shall be deemed rejected in whole.

      (N) It never has been represented, guaranteed or warranted by any broker,
the Company, the Placement Agent, any of the officers, directors, stockholders,
partners, employees or agents of either of the Company or the Placement Agent,
or any other persons, whether expressly or by implication, that:
<PAGE>

                   (i) the Company or the Subscriber will realize any given
                   percentage of profits and/or amount or type of consideration,
                   profit or loss as a result of the Company's activities or the
                   Subscriber's investment in the Company; or

                   (ii) the past performance or experience of the management of
                   the Company, or of any other person, will in any way indicate
                   the predictable results of the ownership of the Securities or
                   of the Company's activities.

      (O) No representations have been made, and no information furnished to the
Subscriber or the Subscriber's advisor(s) in connection with the Offering that
were in any way inconsistent with the information stated herein.

      (P) ____________ (insert name of Purchaser Representative: if none leave
blank) has acted as the Subscriber's Purchaser Representative for purposes of
the private placement exemption under the Act. If the Subscriber has appointed a
Purchaser Representative (which term is used herein with the same meaning as
given in Rule 501(h) of Regulation D), the Subscriber has been advised by his
Purchaser Representative as to the merits and risks of an investment in the
Company in general and the suitability of an investment in the Securities for
the Subscriber in particular.

Section 4.  INDEMNIFICATION

      The Subscriber agrees to indemnify and hold harmless the Company and
Placement Agent, the officers, directors, employees, agents, counsel and
affiliates of the Company and the Placement Agent, and each other person, if
any, who controls the Company, within the meaning of Section 15 of the Act or
Section 20 of the Securities Exchange Act of 1934, as amended, against any and
all losses, liabilities, claims, damages and all expenses reasonably incurred in
investigating, preparing or defending against any litigation commenced or
threatened or any claim whatsoever arising out of or based upon any false
representation or warranty or breach or failure by the Subscriber to comply with
any covenant or agreement made by the Subscriber herein or in any other document
furnished by the Subscriber to any of the foregoing in connection with this
transaction.

Section 5.   BINDING EFFECT OF SUBSCRIPTION

      The Subscriber hereby acknowledges and agrees, subject to any applicable
state securities laws that the subscription and application hereunder are
irrevocable, that the Subscriber is not entitled to cancel, terminate or revoke
this Subscription Agreement and that this Subscription Agreement shall survive
the death or disability of the Subscriber and shall be binding upon and inure to
the benefit of the Subscriber and his heirs, executors, administrators,
successors, legal representatives, and assigns. If the Subscriber is more than
one person, the obligations of the Subscriber hereunder shall be joint and
several, and the agreements, representations, warranties, and acknowledgments
herein contained shall be deemed to be made by and be binding upon each
<PAGE>

such person and his heirs, executors, administrators, successors, legal
representatives, and assigns.

Section 6.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      The Company represents and warrants to, and agrees with, each Subscriber
as follows:

            (A) The Company is duly organized, validly existing and in good
standing under the laws of its state of incorporation, with all requisite power
and authority to own, lease, license, and use its properties and assets and to
carry out the business in which it is engaged, except where the failure to have
or be any of the foregoing may not be expected to have a material adverse effect
on the Company's presently conducted businesses. The Company is duly qualified
to transact the business in which it is engaged and is in good standing as a
foreign corporation in every jurisdiction in which its ownership, leasing,
licensing or use of property or assets or the conduct of its business make such
qualification necessary, except where the failure to be so qualified may not be
expected to have a material adverse effect upon the Company's business.

            (B) The Company is authorized to issue 50,000,000 shares of Common
Stock, $.001 par value per share and 20,000,000 shares of Preferred Stock, no
par value per share. As of February 1, 2000, there were 10,132,100 shares of
Common Stock outstanding. There will be no shares of Preferred Stock outstanding
on the closing of this offering. On the Initial Closing, the Company shall have
outstanding options, warrants, convertible or derivative securities which are
exercisable into no more than 4,465,866 shares of Common Stock, all of which
have an exercise price of $7.00 per share, except for warrants to purchase
220,000 shares of Common Stock which are exercisable at $0.25 per share.

            (C) The Company has all requisite power and authority to execute,
deliver and perform its obligations under this Agreement, and to issue, sell and
deliver the Securities. This Agreement has been duly authorized by the Company,
and when executed and delivered by the Company, will constitute the legal, valid
and binding obligation of the Company, enforceable as to the Company in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, arrangement, fraudulent conveyance or transfer,
moratorium or other laws or court decisions, now or hereinafter in effect,
relating to or affecting the rights of creditors generally and as may be limited
by general principles of equity and the discretion of the court having
jurisdiction in an enforcement action (regardless of whether such enforceability
is considered in a proceeding in equity or at law).

            (D) No consent, authorization, approval, order, license, certificate
or permit of or from, or declaration or filing with, any federal, state, local
or other governmental authority or any court or any other tribunal is required
by the Company for the execution, delivery or performance by the Company of this
Agreement or the execution, issuance, sale or delivery of the Securities, except
for filings under applicable "Blue Sky" laws.
<PAGE>

            (E) No consent of any party to any contract, agreement, instrument,
lease, license, arrangement or understanding to which the Company is a party or
to which any of its properties or assets are subject is required for the
execution, delivery or performance by the Company of this Agreement, or the
execution, issuance, sale or delivery of the Securities, unless the failure to
obtain such consent will not have a material adverse effect on the Company
and/or the Offering.

            (F) The execution, delivery and performance of this Agreement will
not violate, result in a breach of, conflict with (with or without the giving of
notice or the passage of time or both) or entitle any party to terminate or call
a default under any material contract, agreement, instrument, lease, license,
arrangement or understanding or violate or result in a breach of any term of the
certificate of incorporation or by-laws of, or conflict with any law, rule,
regulation, order, judgment or decree binding upon, the Company or to which any
of its operations, businesses, properties or assets are subject which
individually or in the aggregate will not have a material adverse effect upon
the operations, business, properties or assets of the Company.

            (G) The Securities, upon delivery to the Subscriber, will be validly
issued, fully paid and non assessable and will not be issued in violation of any
preemptive or other rights of stockholders.

            (H) The audited consolidated financial statements for the fiscal
year ended June 30, 1999 (the "Financial Statements") of the Company fairly
present in accordance with generally accepted accounting principles, the
financial position, the results of operations, and the other information with
respect to the Company shown therein at the respective dates and for the
respective periods to which they apply. The Financial Statements have been
prepared in accordance with generally accepted accounting principles and the
applicable rules of the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended ("Exchange Act"), consistently applied
throughout the periods involved, and are in accordance with the books and
records of the Company. There has at no time been a material adverse change in
the financial condition, results of operations, business, properties, assets,
liabilities, or future prospects of the Company from the latest information set
forth in the Financial Statements, except as may be properly described in the
Financial Statements as having occurred or as may potentially occur. The
Company's audit firm, who has certified certain financial statements of the
Company and delivered their report with respect to the Financial Statements, are
independent public accountants as defined by the Act and Exchange Act and
Regulation S-K promulgated thereunder.

            (I) All patents, trademarks, copyrights (including pending
applications) and other intellectual property (the "Intellectual Property")
currently owned by the Company and/or any of the Company's subsidiaries shall be
owned by the Company exclusively on the Initial Closing and/or registered solely
in the name of the Company on the Initial Closing. Any and all transfers or
assignments to effectuate the foregoing shall be completed prior to the Initial
Closing. All applications for Intellectual Property submitted after the Initial
Closing on behalf of
<PAGE>

the Company and/or its subsidiaries shall be done exclusively in the name of the
Company and all Intellectual Property shall be owned solely by the Company.

Section 7.        REGISTRATION RIGHTS

            (A) Registrable Securities. As used herein the term "Registrable
Security" means the Conversion Shares as adjusted pursuant to the terms of the
Warrant(s) provided, however, that with respect to any particular Registrable
Security, such security shall cease to be a Registrable Security when, as of the
date of determination, (i) it has been effectively registered under the
Securities Act and disposed of pursuant thereto, (ii) the Company receives an
opinion of counsel, which counsel and opinion are reasonably satisfactory to the
Company, that registration under the Act is no longer required for the immediate
public distribution of such security without limitation or restriction as to
timing or quantity of sales, or (iii) it has ceased to be outstanding. The term
"Registrable Securities" means any and/or all of the securities falling within
the foregoing definition of a "Registrable Security." In the event of any
merger, reorganization, consolidation, recapitalization or other change in
corporate structure affecting the Common Stock, such adjustment shall be made in
the definition of "Registrable Security" as is appropriate in order to prevent
any dilution or enlargement of the rights granted pursuant to this Section 7.

            (B) (i) Subject to Section 8 hereof, the Company agrees to register
the Registrable Securities for public resale in the initial public offering of
the Company's securities (the "IPO").

                  (ii) Piggyback Registration. If, at any time after the
completion of an IPO of the Company's securities, the Company proposes to
prepare and file with the Securities and Exchange Commission (the "Commission")
a registration statement covering equity or debt securities of the Company, or
any such securities of the Company held by its shareholders (in any such case,
other than pursuant to Form S-8 or successor form), (for purposes of this
Section 7, collectively, a "Registration Statement"), it will give written
notice of its intention to do so by registered mail ("Notice"), at least thirty
(30) days prior to the filing of each such Registration Statement, to all
holders of the Registrable Securities. Upon the written request of such a holder
(a "Requesting Holder"), made within twenty (20) days after receipt of the
Notice, requesting the Company to include any of the Requesting Holder's
Registrable Securities in the proposed Registration Statement, the Company
shall, as to each such Requesting Holder, effect the registration under the
Securities Act of the Registrable Securities which it has been so requested to
register ("Piggyback Registration"), at the Company's sole cost and expense and
at no cost or expense to the Requesting Holders except as provided in this
Section 7.

            With respect to the Piggyback Registration, the Company shall have
the right at any time after it shall have given written notice pursuant to this
Section 7 (irrespective of whether any written request for inclusion of such
securities shall have already been made) to elect not to file any such proposed
Registration Statement, or to withdraw the same after the filing but prior to
the effective date thereof.
<PAGE>

                  (iii) Demand Registration Rights. At any time commencing on
 the day following the completion of an initial public offering of the Company's
 Securities; and expiring on the fifth anniversary therefrom, the Requesting
 Holders of a Majority (as hereinafter defined) in interest of the Registrable
 Securities shall have the right to require the Company, at the Company's sole
 cost and expense, to prepare, file with the Commission within thirty (30) days
 of receiving the Registration Request (as defined herein) and cause to become
 effective within sixty (60) days thereafter, on one (1) occasion, a
 registration statement on Form S-l, or other appropriate form, and such other
 documents, including a prospectus, as may be necessary in order to comply with
 the provisions of the Act, to register a public offering and sale, for a period
 of not less than eighteen (18) months, of the Registrable Securities by such
 Requesting Holders and any other Requesting Holders of the Registrable
 Securities who notify the Company within fifteen (15) business days after
 receipt of the notice described in Section 7(B)(iii).

            The Requesting Holders shall exercise their right to demand
 registration under this section by notice (the "Registration Request"). The
 Company covenants and agrees to give notice of any Registration Request under
 this section by any Requesting Holders to all other registered holders of
 Registrable Securities no later than ten (10) calendar days from the date of
 the receipt of any such Registration Request.

            For purposes of this section, the term "Majority" means an amount in
excess of fifty percent (50%) of the number of then outstanding Registrable
Securities that (i) are not held by the Company, an affiliate, director,
officer, creditor, employee, or agent thereof or any of their respective
affiliates, members of their family, persons acting as nominees or in
conjunction therewith, or (ii) have not been resold to the public pursuant to a
Registration Statement filed with the Commission under the Act or pursuant to an
exemption therefrom.

            (C) COVENANTS OF THE COMPANY WITH RESPECT TO REGISTRATION. The
Company covenants and agrees as follows:

                  (i) Following the effective date of a Registration Statement,
the Company shall, upon the request of the Requesting Holder, forthwith supply
such reasonable number of copies of the Registration Statement, preliminary
prospectus and prospectus meeting the requirements of the Securities Act, and
other documents necessary or incidental to the public offering of the
Registrable Securities, as shall be reasonably requested by the Requesting
Holder to permit the Requesting Holder to make a public distribution of the
Requesting Holder's Registrable Securities. The obligations of the Company
hereunder with respect to the Requesting Holder's Registrable Securities are
subject to the Requesting Holder's furnishing to the Company such appropriate
information concerning the Requesting Holder, the Requesting Holder's
Registrable Securities and the terms of the Requesting Holder's Offering of such
Registrable Securities as the Company may reasonably request in writing.

                  (ii) The Company shall pay all costs, fees and expenses in
connection with all Registration Statements filed pursuant to Section 7 hereof
including, without limitation, the Company's legal and accounting fees, printing
expenses, and blue sky fees and expenses;
<PAGE>

provided, however, that the Requesting Holder shall be solely responsible for
the fees of any counsel retained by the Requesting Holder in connection with
such registration and any transfer taxes or underwriting discounts, commissions
or fees applicable to the Registrable Securities sold by the Requesting Holder
pursuant thereto.

                  (iii) The Company will take all necessary action which may be
required in qualifying or registering the Registrable Securities included in a
Registration Statement for offering and sale under the securities or blue sky
laws of such states as are reasonably requested by the holders of such
securities, provided that the Company shall not be obligated to execute or file
any general consent to service of process or to qualify as a foreign corporation
to do business under the laws of any such jurisdiction.

            (D) ADDITIONAL TERMS.

                  (i) The Company shall indemnify and hold harmless the
Requesting Holder and each underwriter, within the meaning of the Act, who may
purchase from or sell for the Requesting Holder, any Registrable Securities,
from and against any and all losses, claims, damages and liabilities caused by
any untrue statement of a material fact contained in the Registration Statement,
any other registration statement filed by the Company under the Securities Act
with respect to the registration of the Registrable Securities, any
post-effective amendment to such registration statements, or any prospectus
included therein required to be filed or furnished by reason of this Agreement,
or caused by any omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, except
insofar as such losses, claims, damages or liabilities are caused by any such
untrue statement or omission based upon information furnished or required to be
furnished in writing to the Company by the Requesting Holder or underwriter
expressly for use therein, which indemnification shall include each person, if
any, who controls either the Requesting Holder or underwriter within the meaning
of the Act and each officer, director, employee and agent of the Requesting
Holder and underwriter; provided, however, that the indemnification in this
Section 7(D)(i) with respect to any prospectus shall not inure to the benefit of
the Requesting Holder or underwriter (or to the benefit of any person
controlling the Requesting Holder or underwriter) on account of any such loss,
claim, damage or liability arising from the sale of Registrable Securities by
the Requesting Holder or underwriter, if a copy of a subsequent prospectus
correcting the untrue statement or omission in such earlier prospectus was
provided to the Requesting Holder or underwriter by the Company prior to the
subject sale and the subsequent prospectus was not delivered or sent by the
Requesting Holder or underwriter to the purchaser prior to such sale; and
provided further, that the Company shall not be obligated to so indemnify the
Requesting Holder or any such underwriter or other person referred to above
unless the Requesting Holder or underwriter or other person, as the case may be,
shall at the same time indemnify the Company, its directors, each officer
signing the Registration Statement and each person, if any, who controls the
Company within the meaning of the Act, from and against any and all losses,
claims, damages and liabilities caused by any untrue statement of a material
fact contained in the Registration Statement, any registration statement or any
prospectus required to be filed or furnished by reason of this Agreement or
caused by any omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, insofar
<PAGE>

as such losses, claims, damages or liabilities are caused by any untrue
statement or omission based upon information furnished in writing to the Company
by the Requesting Holder or underwriter expressly for use therein, provided that
such indemnification by the Requesting Holder shall not exceed the aggregate
cash proceeds realized by it in connection with the sale of the Registrable
Securities.

                  (ii) If for any reason the indemnification provided for in the
preceding 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
expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount
paid or payable by the indemnified party as a result of such loss, claim, damage
or liability in such proportion as is appropriate to reflect not only the
relative benefits received by the indemnified party and the indemnifying party,
but also the relative fault of the indemnified party and the indemnifying party,
as well as any other relevant equitable considerations.

                  (iii) Neither the filing of a Registration Statement by the
Company pursuant to this Agreement nor the making of any request for
prospectuses by the Requesting Holder shall impose upon the Requesting Holder
any obligation to sell the Requesting Holder's Registrable Securities.

<PAGE>

                  (iv) The Requesting Holder, upon receipt of notice from the
Company that an event has occurred which requires a post-effective amendment to
the Registration Statement or a supplement to the prospectus included therein,
shall promptly discontinue the sale of Registrable Securities until the
Requesting Holder receives a copy of a supplemented or amended prospectus from
the Company, which the Company shall provide as soon as practicable after such
notice.

                  (v) The Company shall keep effective any registration or
qualification contemplated by this Section 7 and shall from time to time amend
or supplement each applicable registration statement, preliminary prospectus,
final prospectus, application document, and communication for such period of
time as shall be required (but not less than eighteen (18) months) to permit the
holders of the Registrable Securities to complete the offer and sale of the
Registrable Securities covered thereby. If the Company fails to keep the
Registration Statement referred to in Section 7 above continuously effective
during the requisite period, then the Company shall promptly update the
Registration Statement or file a new registration statement covering the
Registrable Securities remaining unsold, subject to the terms and provisions
hereof. Notwithstanding the foregoing, the failure of the Company to keep
effective any registration statement contemplated by this Section 7 shall be
deemed to be a breach of this Section 7.

                  (vi) The Company agrees that until all the Registrable
Securities have been sold under a registration statement or pursuant to Rule 144
under the Act, it shall keep current in filing all reports, statements and other
materials required to be filed with the Commission to permit the holders of the
Registrable Securities to sell such Securities under Rule 144.

            (E) The Company and the Subscriber agree that the holders of
Registrable Securities will suffer damages if the Company fails to fulfill its
obligations under this Section 7 and that ascertaining the extent of such
damages with precision would not be feasible. If the Company breaches this
Section 7, each holder of Registrable Securities shall receive a cash payment
equal to the greater of (i) 10% of the Eligible Holder's aggregate per share
Exercise Price or (ii) 10% of the fair market value of the Common Stock
multiplied by the number of Warrant Shares held or which may be purchased by
that Eligible Holder, for each 30-day delay, or part thereof, payable promptly
after the expiration of each 30-day period, in the filing of the registration
statement or effective date of the registration statement, whichever may be
applicable. For purposes of this Section, "fair market value" shall mean the
average of the closing bid and closing asked prices of the Common Stock on the
five (5) consecutive trading days immediately prior to the date of the Company's
breach of this Section 7.

Section 8.  LOCK-UP PROVISION

      The Subscriber covenants and agrees for the benefit of the Company and the
Placement Agreement to abide by the following terms and conditions, provided,
all officers, directors and affiliates of the Company are subject to at least
the same Lock-Up (as defined herein):
<PAGE>

            (A) The Subscriber will not, directly or indirectly, offer, sell,
contract to sell, grant any option to purchase, pledge, assign, hypothecate, or
otherwise dispose of, encumber, or transfer all or any portion of the economic
consequences associated with the ownership of any Registrable Security
beneficially owned by the undersigned for a period of 180 days after the date on
which the Commission declares the Registration Statement in connection with the
IPO effective, without the prior written consent of the Company and the
Placement Agent (the "Lock-Up"). Notwithstanding the foregoing, if the average
of the closing prices for the Company's Common Stock during the last twenty
trading days of each measurement period set forth below (each a "Measurement
Period") following the closing date of the IPO, is at least 150% of the offering
price of the securities offered in the IPO, then the designated percentage of
all of the Registerable Securities subject to the Lock-Up outstanding at the
time shall be irrevocably released from such restrictions:

                  MEASUREMENT PERIOD           PERCENTAGE RELEASED
                         2 months                     30%
                         4 months                     60%
                         6 months       All shares not previously released.

            In calculating the number of Securities to be released upon any
Measurement Period, the designated percentage shall be multiplied by the sum of
(a) all of the Registerable Securities subject to the Lock-Up and (b) all
Registerable Securities previously released from such restrictions pursuant to
the Lock-Up.

            (B) To enable the Placement Agent to enforce the foregoing, the
undersigned hereby consents to the placing of restrictive legends consistent
with the Lock-Up upon the certificates evidencing the Registerable Securities
and to the entry of stop-transfer orders consistent with the Lock-Up on the
books and records of the transfer agent of the Registerable Securities with
respect to any Registerable Securities registered in the name of the undersigned
or beneficially owned by the undersigned. The Company agrees to instruct the
transfer agent to place such legends and enter such stop-transfer orders and not
to transfer any Registerable Securities without the consent of the Placement
Agent as set forth herein.

Section 9.  SECURITY INTEREST

            At the Closing, the Subscriber shall be granted a security interest
in all of the Company's assets in accordance with a certain Security Agreement,
Copyright Security Agreement, Trademark Security Agreement, and the guaranty of
the Company's obligations by Victory Television, Victory Distribution, Inc.,
Victory Animation Studios, Inc., Lightpoint Entertainment, Inc., Victory
Internet Production, Inc. and VAMPS Production, Inc. (collectively, the
"Security Agreements").

Section 10. WAIVER

            The Subscriber has made full and complete inquiry with respect to
any matters of interest in connection with this investment and is fully
satisfied in all respects with his
<PAGE>

investment decision, fully understanding and comprehending the significant risks
associated, acknowledges that he has not relied on any specific information
concerning the Company, and understands that the Company and the Placement Agent
have not made any representations regarding the Company or the future
performance of the Company.

Section 11. MISCELLANEOUS

             (A) NO WAIVER. Neither this Subscription Agreement nor any
provisions hereof shall be waived, modified, discharged, or terminated except by
an instrument in writing signed by the party against whom any such waiver,
modification, discharge, or termination is sought.

            (B) NOTICES. Any notice, demand or other communication which any
party hereto may be required, or may elect, to give to anyone interested
hereunder shall be sufficiently given if (a) deposited, postage prepaid, in a
United States mail box, stamped, registered or certified mail, return receipt
requested, addressed to such address as may be listed on the books of the
Company, or, if to the Company, the Company's executive office at 1000 Universal
Studios Plaza, Building 22A, Orlando, Florida 52819, Attention: President, or
(b) delivered personally a such address.

            (C) EXECUTION. This Subscription Agreement may be executed through
the use of separate signature pages or in any number of counterparts, and each
of such counterparts shall, or all purposes, constitute one agreement binding on
all parties, notwithstanding that all parties are not signatories to the same
counterpart.

            (D) ENTIRE AGREEMENT. This Subscription Agreement, the Securities
and the Security Agreement contain the entire agreement of the parties with
respect to the subject matter hereof and there are no representations, covenants
or other agreements except as stated or referred to herein, and any
representations or warranties not contained herein are disclaimed.

            (E) SEVERABILITV. Each provision of this Subscription Agreement is
intended to be severable from every other provisions, and the invalidity or
illegality of any portion hereof, shall not affect the validity or legality of
the remainder hereof.

            (F) NON-ASSIGNABILITV. This Subscription Agreement is not
transferable or assignable by the Subscriber except as may be provided herein.

            (G) LAW GOVERNING. This Subscription Agreement shall be governed by
and construed in accordance with the laws of the State of New York applicable to
contracts made and to be wholly performed in such state.

                  (i) The Company irrevocably submits to the non-exclusive
jurisdiction of any New York State or United States federal court sitting in the
Borough of Manhattan, New York City, New York, U.S.A., and any appellate court
from any thereof (the "Specified Courts"), over any suit, action or proceeding
brought by the Placement Agent or by any person who
<PAGE>

controls the Placement Agent, or any Subscriber or Holder of a Unit, against it
arising out of or based upon this Subscription Agreement, the Securities, or the
Security Agreements (a "Related Proceeding"). The Company waives any objection
to Related Proceedings in such courts whether on the grounds of venue, residence
or domicile or on the ground that the Related Proceedings have been brought to
an inconvenient forum. Notwithstanding the foregoing, any action based on this
Agreement may be instituted by the Placement Agent or any selling group member,
any Subscriber or Holder of a Unit or by any person who controls the Placement
Agent or any selling group member, any Subscriber or Holder of a Unit in any
competent court in the State of New York.

                  (ii) Each of the Company and Subsidiaries agrees that service
of all writs, process and summonses in any Related Proceedings brought by the
Placement Agent or any selling group member or by any person who controls the
Placement Agent or any selling group member, or any Subscriber or Holder of a
Unit, against it in any New York State or United States Federal Court sitting in
the Borough on Manhattan, New York City may be made upon Shustak, Jalil &
Heller, 545 Madison Avenue, New York, New York 10022 (the Company's "Process
Agent"). Each of the Company and Subsidiaries represents and warrants that the
Company's Process Agent has agreed to act as its agent for service of process,
and each of the Company and Subsidiaries agrees to take any and all action,
including the filing of any and all documents and instruments, that may be
necessary to continue such appointment in full force and effect as aforesaid. If
the Company' s Process Agent shall cease to act as the Company's agent for
service of process, the Company and Subsidiaries shall appoint without delay
another such agent and notify the Placement Agent and the Subscribers or Holders
of such appointment. With respect to any such action in any New York State or
United States Federal Court in the Borough of Manhattan, New York City, service
of process upon the Company's Process Agent and written notice of such service
to the Company shall be deemed, in every respect, effective service of process
upon the Company.

            (H) SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the Company, the Subscriber, and the Placement Agent and
their respective successors and permitted assigns.

            (I) SUBSCRIBER EXPENSES. The Company agrees to pay, at the Initial
Closing, all expenses of the Subscriber, including but not limited to, the
Subscriber's counsel and accounting fees as billed.

      IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered as of the day and year first above written.

                                    VICTORY ENTERTAINMENT CORPORATION

                                    By
                                      ------------------------------------------
                                      Michael Gerber, Chief Executive Officer
<PAGE>

      Please countersign and return two copies of this Subscription Agreement,
together with the completed Investor Questionnaire to the Company. A
countersigned copy of this Subscription Agreement will be returned to the
Subscriber, together with the Units. For the purpose of having the certificates
prepared, please indicate the exact manner in which the certificates are to be
made out in the space provided for below.

Subscription Amount:                      $______________
($50,000 minimum)
(unless waived by the Company)            FOR INDIVIDUALS:

Dated: _______ __  , 2000                 _____________________________
                                                (Print Name)

Dated: ________ __, 2000                  _____________________________
                                          (Signature)

                                          FOR CORPORATIONS:

                                          Name of Company

                                          _____________________________
                                          Executive Officer of Company

Dated: ________ __, 2000                   ____________________________
                                           Signature of Authorized Trustee

<PAGE>

Please countersign and return two copies of this Subscription Agreement,
together with the completed Investor Questionnaire to the Company. A
countersigned copy of this Subscription Agreement will be returned to the
Subscriber, together with the Units. For the purpose of having the certificates
prepared, please indicate the exact manner in which the certificates are to be
made out in the space provided for below.

Subscription Amount:                $____________________
($50,000 minimum)
(unless waived by the Company)
                                     FOR PARTNERSHIPS:

                                    ______________________________
                                    Name of Partnership

                                    ______________________________
                                    Name of Authorized Partner

Dated: _________ __, 2000
                                    ______________________________

                                    Signature of Authorized Partner

                                    FOR TRUSTS:

                                    ______________________________
                                    Name of Trust

                                    ______________________________
                                    Name of Authorized Trustee

Dated: ________ __, 2000            ______________________________
                                    Signature of Authorized
                                     Trustee

<PAGE>

      Please countersign and return two copies of this Subscription Agreement,
together with the completed Investor Questionnaire to the Company. A
countersigned copy of this Subscription Agreement will be returned to the
Subscriber, together with the ___________. For the purpose of having the
certificates prepared, please indicate the exact manner in which the certificate
is to be made out in the space provided for below.

Subscription Amount:                $ _____________
($50,000 minimum)
(unless waived by the Company)
                                    FOR OUALIFIED PENSION PLANS:

                                    ______________________________
                                    Name of Qualified Pension Plan

                                                and

                                    ______________________________
                                    Name of Authorized Plan Fiduciary

Dated: ________ __, 2000
                                    ______________________________________
                                    Signature of Authorized Plan Fiduciary

                                                or

                                    _____________________________________
                                    Name of Authorized Plan Beneficiary

                                                or
Dated: ________  , 2000
                                    _________________________________________
                                    Signature of Authorized Plan Beneficiary<PAGE>

                                                                   EXHIBIT 10.16

********************************************************************************

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT.
THE PORTIONS OF THIS EXHIBIT FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED ARE DENOTED BY THE SYMBOL ****.

********************************************************************************

                           EXODUS COMMUNICATIONS, INC.

                            MASTER SERVICES AGREEMENT

     THIS MASTER SERVICES AGREEMENT (the "AGREEMENT") between Exodus
Communications, Inc. ("EXODUS") and NEXT BIG STAR, LLC ("CUSTOMER") is made
effective as of date indicated below the Customer signature on the initial Order
Form submitted by Customer and accepted by Exodus.

1.   OVERVIEW.

     1.1 GENERAL. This Agreement states the terms and conditions by which Exodus
will deliver and Customer will receive any or all of the services provided by
Exodus, including facilities, bandwidth, managed services and professional
services. If Customer purchases any equipment from Exodus (as indicated in the
Order Form(s) described below), the terms and conditions by which Customer
purchases and Exodus sells such equipment are stated in Addendum A attached
hereto. Only this Section 1.1 and Addendum A shall apply to the purchase and
sale of equipment. The specific services and/or products to be provided
hereunder are identified in the Order Form(s) submitted by Customer and accepted
by Exodus and described in detail in the Specification Sheets and Statements of
Work attached to each Order Form. Each Order Form (with the attached
Specification Sheet(s) and Statement(s) of Work) submitted, accepted and
executed by both parties is hereby incorporated by reference into this
Agreement. This Agreement is intended to cover any and all Services ordered by
Customer and provided by Exodus. In the event that any terms set forth herein
apply specifically to a service not ordered by Customer, such terms shall not
apply to Customer.

     1.2  DEFINITIONS.

          (a) "Customer Area" means that portion(s) of the Internet Data
     Center(s) made available to Customer for the placement of Customer
     Equipment and/or Exodus Supplied Equipment and use of the Service(s).

          (b) "Customer Equipment" means the Customer's computer hardware, not
     including stored data, and other tangible equipment placed by Customer in
     the Customer Area. The Customer Equipment shall be identified on Exodus'
     standard customer equipment list completed and delivered by Customer to
     Exodus, as amended in writing from time to time by Customer.

          (c) "Customer Registration Form" means the list that contains the
     names and contact information (e.g. pager, email and telephone numbers) of
     Customer and the individuals authorized by Customer to enter the Internet
     Data Center(s) and Customer Area, as delivered by Customer to Exodus and
     amended in writing from time to time by Customer.

          (d) "Customer Technology" means Customer's proprietary technology,
     including Customer's internet operations design, content, software tools,
     hardware designs, algorithms,

<PAGE>
                                      -2-

     software (in source and object forms), user interface designs,
     architecture, class libraries, objects and documentation (both printed and
     electronic), know-how, trade secrets and any related intellectual property
     rights throughout the world (whether owned by Customer or licensed to
     Customer from a third party) and also including any derivatives,
     improvements, enhancements or extensions of Customer Technology conceived,
     reduced to practice, or developed during the term of this Agreement by
     Customer.

          (e) "Exodus Supplied Equipment" means the computer hardware, software
     and other tangible equipment and intangible computer code contained therein
     to be provided by Exodus for use by Customer as set forth on the Order
     Form(s).

          (f) "Exodus Technology" means Exodus' proprietary technology,
     including Exodus Services, software tools, hardware designs, algorithms,
     software (in source and object forms), user interface designs,
     architecture, class libraries, objects and documentation (both printed and
     electronic), network designs, know-how, trade secrets and any related
     intellectual property rights throughout the world (whether owned by Exodus
     or licensed to Exodus from a third party) and also including any
     derivatives, improvements, enhancements or extensions of Exodus Technology
     conceived, reduced to practice, or developed during the term of this
     Agreement by either party that are not uniquely applicable to Customer or
     that have general applicability in the art.

          (g) "Initial Term" means the minimum term for which Exodus will
     provide the Service(s) to Customer, as indicated on the Order Form(s).
     Except as otherwise expressly provided in this Agreement, Exodus is
     obligated to provide and Customer is obligated to pay for each Service
     through its Initial Term and any Renewal Term.

          (h) "Internet Data Center(s)" means any of the facilities used by
     Exodus to provide the Service(s).

          (i) "Professional Services" means any non-standard professional or
     consulting service provided by Exodus to Customer as more fully described
     in a Statement of Work.

          (j) "Renewal Term" means any service term following the Initial Term,
     as specified in Section 2.2.

          (k) "Representatives" mean the individuals identified in writing on
     the Customer Registration Form and authorized by Customer to enter the
     Internet Data Center(s) and the Customer Area.

          (l) "Rules and Regulations" means the Exodus general rules and
     regulations governing Customer's use of Services, including, but not
     limited to, online conduct, and the obligations of Customer and its
     Representatives in the Internet Data Centers.

          (m) "Service(s)" means the specific service(s) provided by Exodus as
     described on the Order Form(s).

<PAGE>
                                      -3-

          (n) "Service Commencement Date" means the date Exodus will begin
     providing the Service(s) to Customer, as indicated in a Notice of Service
     Commencement delivered by Exodus to Customer.

          (o) "Service Level Warranty" is described and defined in Section 5.2
     below.

          (p) "Specification Sheet" means the detailed description for each
     Service, other than Professional Services, ordered by Customer that is
     attached to an Order Form(s).

          (q) "Statement of Work" means the detailed description(s) of the
     Professional Services attached to (an) Order Form(s).

          (r) "Work" means any tangible deliverable provided by Exodus to
     Customer as described in the Statement of Work for any Professional
     Service.

2.   DELIVERY OF SERVICES; TERMS; FEES.

     2.1  DELIVERY OF SERVICES.

          (a) GENERAL. By submitting an Order Form, Customer agrees to take and
     pay for, and, by accepting the Order Form, Exodus agrees to provide, the
     Service(s) during the Initial Term and for any Renewal Term, as specified
     in paragraph 2.2(b) below.

          (b) DELIVERY OF SUPPLEMENTAL SERVICES. The purpose of this provision
     is to enable Exodus to provide Customer with certain limited services and
     equipment needed by Customer on a "one-off" or emergency basis
     ("Supplemental Services") where such services are not included within the
     scope of the Services as described in the Specification Sheets and/or
     Statement of Work. Supplemental Service may include, as an example, a
     request from Customer to Exodus via telephone that Exodus immediately
     replace a problem Customer server with an Exodus server for a temporary
     period of time. Exodus shall notify Customer of the fees for any
     Supplemental Services requested by Customer and obtain Customer's approval
     prior to providing such services. In the event Exodus reasonably determines
     that Supplemental Services are required on an emergency basis, Exodus may
     provide such services without the consent of Customer, thereafter provide
     notice of the services to Customer and bill Customer a reasonable fee for
     such services. Customer agrees to pay Exodus the fees charged by Exodus for
     Supplemental Services. Customer will be charged for Supplemental Services
     in the invoice issued the month following delivery of the services. Exodus
     will use commercially reasonable efforts to provide Supplemental Services,
     provided that Exodus has no obligation to determine the need for or provide
     Supplemental Services. All Supplemental Services provided pursuant to this
     paragraph 2.1(b) are provided on an "as-is" basis and exclude warranties of
     any kind, whether express or implied.

<PAGE>
                                      -4-

     2.2  TERM.

          (a) TERM COMMENCEMENT. The term for each Service will commence on the
     Service Commencement Date indicated in the Notice of Service Commencement
     delivered by Exodus to Customer when Exodus begins providing each Service
     to Customer.

          (b) RENEWAL TERM(S). Each Service will continue automatically for
     additional terms equal to the Initial Term ("Renewal Term") unless Customer
     notifies Exodus in writing at least thirty (30) days prior to the end of
     the Initial Term or a Renewal Term, as applicable, that it has elected to
     terminate such Service, in which case such Service shall terminate at the
     end of such term. The termination of any Service will not affect Customer's
     obligations to pay for other Service(s). Notwithstanding the foregoing,
     Exodus may change or increase the prices it charges Customer for any
     Service at any time after the Initial Term effective thirty (30) days after
     providing notice to Customer. This paragraph 2.2(b) does not apply to
     Exodus Supplied Equipment which is only provided for the Initial Term.

3.   FEES AND PAYMENT TERMS.

     3.1 FEES AND EXPENSES. Customer will pay all fees due according to the
prices and terms listed in the Order Form(s). The prices listed in the Order
Form(s) will remain in effect during the Initial Term indicated in the Order
Form(s) and will continue thereafter, unless modified in accordance with Section
2.2. Customer also agrees to reimburse Exodus for actual out-of-pocket
reasonable expenses incurred in providing Professional Services to Customer.

     3.2 PAYMENT TERMS. On the Service Commencement Date for each Service,
Customer will be billed an amount equal to all non-recurring charges indicated
in the Order Form and the monthly recurring charges for the first month of the
term. Monthly recurring charges for all other months will be billed in advance
of the provision of Services. All other charges for Services received and
expenses incurred for Professional Services during a month (e.g., bandwidth
usage fees, travel expenses) will be billed at the end of the month in which the
Services were provided. Payment for all fees is due upon receipt of each Exodus
invoice. All payments will be made in the United States in U.S. dollars.

     3.3 LATE PAYMENTS. Any payment not received within thirty (30) days of the
invoice date will accrue interest at a rate of one and one-half percent (1 1/2%)
per month, or the highest rate allowed by applicable law, whichever is lower. If
Customer is delinquent in its payments, Exodus may, upon written notice to
Customer, modify the payment terms to require full payment before the provision
of all Services and Exodus Supplied Equipment or require other assurances to
secure Customer's payment obligations hereunder.

     3.4 TAXES. All fees charged by Exodus for Services are exclusive of all
taxes and similar fees now in force or enacted in the future imposed on the
transaction and/or the delivery of Services, all of which Customer will be
responsible for and will pay in full, except for taxes based on Exodus' net
income.

<PAGE>
                                      -5-

4.   confidential information; intellectual property ownership; license grants

     4.1  CONFIDENTIAL INFORMATION.

          (a) NONDISCLOSURE OF CONFIDENTIAL INFORMATION. Each party acknowledges
     that it will have access to certain confidential information of the other
     party concerning the other party's business, plans, customers, technology,
     and products, and other information held in confidence by the other party
     ("CONFIDENTIAL INFORMATION"). Confidential Information will include all
     information in tangible or intangible form that is marked or designated as
     confidential or that, under the circumstances of its disclosure, should be
     considered confidential. Confidential Information will also include, but
     not be limited to, Exodus Technology, Customer Technology, and the terms
     and conditions of this Agreement. Each party agrees that it will not use in
     any way, for its own account or the account of any third party, except as
     expressly permitted by, or required to achieve the purposes of, this
     Agreement, nor disclose to any third party (except as required by law or to
     that party's attorneys, accountants and other advisors as reasonably
     necessary), any of the other party's Confidential Information and will take
     reasonable precautions to protect the confidentiality of such information,
     at least as stringent as it takes to protect its own Confidential
     Information.

          (b) EXCEPTIONS. Information will not be deemed Confidential
     Information hereunder if such information: (i) is known to the receiving
     party prior to receipt from the disclosing party directly or indirectly
     from a source other than one having an obligation of confidentiality to the
     disclosing party; (ii) becomes known (independently of disclosure by the
     disclosing party) to the receiving party directly or indirectly from a
     source other than one having an obligation of confidentiality to the
     disclosing party; (iii) becomes publicly known or otherwise ceases to be
     secret or confidential, except through a breach of this Agreement by the
     receiving party; or (iv) is independently developed by the receiving party.
     The receiving party may disclose Confidential Information pursuant to the
     requirements of a governmental agency or by operation of law, provided that
     it gives the disclosing party reasonable prior written notice sufficient to
     permit the disclosing party to contest such disclosure.

4.2  INTELLECTUAL PROPERTY.

          (a) OWNERSHIP. Except for the rights expressly granted herein and the
     assignment expressly made in paragraph 4.4(a), this Agreement does not
     transfer from Exodus to Customer any Exodus Technology, and all right,
     title and interest in and to Exodus Technology will remain solely with
     Exodus. Except for the rights expressly granted herein, this Agreement does
     not transfer from Customer to Exodus any Customer Technology, and all
     right, title and interest in and to Customer Technology will remain solely
     with Customer. Exodus and Customer each agrees that it will not, directly
     or indirectly, reverse engineer, decompile, disassemble or otherwise
     attempt to derive source code or other trade secrets from the other party.

<PAGE>
                                      -6-

          (b) GENERAL SKILLS AND KNOWLEDGE. Notwithstanding anything to the
     contrary in this Agreement, Exodus will not be prohibited or enjoined at
     any time by Customer from utilizing any skills or knowledge of a general
     nature acquired during the course of providing the Services, including,
     without limitation, information publicly known or available or that could
     reasonably be acquired in similar work performed for another customer of
     Exodus.

     4.3  LICENSE GRANTS.

          (a) BY EXODUS. Exodus hereby grants to Client a nonexclusive,
     royalty-free license, during the term of this Agreement, to use the Exodus
     Technology solely for purposes of using the Service(s). Customer shall have
     no right to use the Exodus Technology for any purpose other than using the
     Service(s).

          (b) BY CUSTOMER. Customer agrees that if, in the course of performing
     the Service(s), it is necessary for Exodus to access Customer Equipment and
     use Customer Technology, Exodus is hereby granted and shall have a
     nonexclusive, royalty-free license, during the term of this Agreement, to
     use the Customer Technology solely for the purposes of delivering the
     Service(s) to Customer. Exodus shall have no right to use the Customer
     Technology for any purpose other than providing the Service(s).

     4.4  PROFESSIONAL SERVICES; ASSIGNMENTS AND LICENSE.

          (a) ASSIGNMENT OF WORK. Effective at the time Exodus receives full and
     final payment for the Professional Service, Exodus assigns to Customer all
     right, title and interest, including all intellectual property rights, in
     the Work, provided, however, that such assignment does not include the
     Exodus Technology.

          (b) LICENSE GRANT. Commencing at the time Exodus receives full and
     final payment for the Work, Exodus grants to Customer a non-exclusive,
     non-transferable, royalty free, perpetual license to use the Exodus
     Technology incorporated into the Work solely in connection with the use of
     the Work as a whole. To the extent that Customer or its employees or
     contractors participate in the creation or development of Exodus
     Technology, Customer, on behalf of itself and its employees and
     contractors, hereby assigns to Exodus all right, title and interest,
     including all intellectual property rights in, the Exodus Technology.

5.   EXODUS REPRESENTATIONS AND WARRANTIES.

     5.1  GENERAL.

          (a) AUTHORITY AND PERFORMANCE OF EXODUS. Exodus represents and
     warrants that (i) it has the legal right to enter into this Agreement and
     perform its obligations hereunder, and (ii) the performance of its
     obligations and delivery of the Services to Customer will not violate any
     applicable U.S. laws or regulations, including OSHA requirements, or cause
     a breach of any agreements with any third parties. In the event of a breach
     of the warranties set

<PAGE>
                                      -7-

     forth in this paragraph 5.1(a), Customer's sole remedy is termination
     pursuant to Section 10 of the Agreement.

          (b) YEAR 2000 PERFORMANCE COMPLIANCE. Exodus warrants that none of the
     computer hardware and software systems and equipment incorporated into or
     utilized in the delivery of the Services contains any date dependent
     routines or logic which will fail to operate correctly after December 31,
     1999, by reason of such date dependence; provided, however, that no
     representation or warranty is made as to the adequacy of any Customer or
     third party service provider hardware or software used in connection with
     the Services. In the event of any breach of the warranties under this
     paragraph 5.1(b), Customer's sole remedy is termination pursuant to Section
     10 of the Agreement.

     5.2 SERVICE LEVEL WARRANTY. In the event that Customer experiences any of
the service performance issues defined in this Section 5.2 as a result of
Exodus' failure to provide bandwidth or facility services, Exodus will, upon
Customer's request in accordance with paragraph 5.2(d) below, credit Customer's
account as described below (the "Service Level Warranty"). The Service Level
Warranty shall not apply to any services other than bandwidth and facility
services, and, shall not apply to performance issues (i) caused by factors
outside of Exodus' reasonable control; (ii) that resulted from any actions or
inactions of Customer or any third parties; or (iii) that resulted from
Customer's equipment and/or third party equipment (not within the sole control
of Exodus).

          (a) SERVICE WARRANTY DEFINITIONS. For purposes of this Agreement, the
     following definitions shall apply only to the Services (not including
     Professional Services).

          (i) "Downtime" shall mean sustained packet loss in excess of fifty
percent (50%) within Exodus' U.S. network for fifteen (15) consecutive minutes
due to the failure of Exodus to provide Service(s) for such period. Downtime
shall not include any packet loss or network unavailability during Exodus'
scheduled maintenance of the Internet Data Centers, network and Service(s), as
described in the Rules and Regulation.

          (ii) "Excess Latency" shall mean transmission latency in excess of one
hundred twenty (120) milliseconds round trip time between any points within
Exodus' U.S. network.

          (iii) "Excess Packet Loss" shall mean packet loss in excess of one
percent (1%) between any two points within Exodus' U.S. network.

          (iv) "Performance Problem" shall mean Excess Packet Loss and/or Excess
Latency.

          (v) "Service Credit" shall mean an amount equal to the pro-rata
monthly recurring connectivity charges (i.e., all monthly recurring
bandwidth-related charges) for one (1) day of Service.

          (b) DOWNTIME PERIODS. In the event Customer experiences Downtime,
     Customer shall be eligible to receive from Exodus a Service Credit for each
     Downtime period. Examples:

<PAGE>
                                      -8-

     If Customer experiences one Downtime period, it shall be eligible to
     receive one Service Credit. If Customer experiences two Downtime periods,
     either from a single event or multiple events, it shall be eligible to
     receive two Service Credits.

          (c) PERFORMANCE PROBLEM; PACKET LOSS AND LATENCY. In the event that
     Exodus discovers or is notified by Customer that Customer is experiencing a
     Performance Problem, Exodus will take all actions necessary to determine
     the source of the Performance Problem.

          (i) TIME TO DISCOVER SOURCE OF PERFORMANCE PROBLEM; NOTIFICATION OF
CUSTOMER. Within two (2) hours of discovering or receiving notice of the
Performance Problem, Exodus will determine whether the source of the Performance
Problem is limited to the Customer Equipment and the Exodus equipment connecting
the Customer Equipment to the Exodus LAN. If Exodus determines that the Customer
Equipment and Exodus connection are not the source of the Performance Problem,
Exodus will determine the source of the Performance Problem within an additional
two (2) hour period. In any event, Exodus will notify Customer of the source of
the Performance Problem within sixty (60) minutes of identifying the source.

          (ii) REMEDY OF PACKET LOSS AND LATENCY. If the source of the
Performance Problem is within the sole control of Exodus, Exodus will remedy the
Performance Problem within two (2) hours of determining the source of the
Performance Problem. If the source of and remedy to the Performance Problem
reside outside of the Exodus LAN or WAN, Exodus will use commercially reasonably
efforts to notify the party(ies) responsible for the source of the Performance
Problem and cooperate with it (them) to resolve such problem as soon as
possible.

          (iii) FAILURE TO DETERMINE SOURCE AND/OR REMEDY. In the event that
Exodus (A) is unable to determine the source of the Performance Problem within
the time periods described in subsection (i) above and/or (B) Exodus is the sole
source of the Performance Problem and is unable to remedy such Performance
Problem within the time period described in subsection (ii) above, Exodus will
deliver a Service Credit to Customer for each two (2) hour period in excess of
the time periods for identification and resolution described above.

          (d) CUSTOMER MUST REQUEST SERVICE CREDIT. In order to receive any of
     the Service Credits described in this Section 5.2, Customer must notify
     Exodus within seven (7) days from the time Customer becomes eligible to
     receive a Service Credit. Failure to comply with this requirement will
     forfeit Customer's right to receive a Service Credit.

          (e) REMEDIES SHALL NOT BE CUMULATIVE; MAXIMUM SERVICE CREDIT. The
     aggregate maximum number of Service Credits to be issued by Exodus to
     Customer for any and all Downtime periods and Performance Problems that
     occur in a single calendar month shall not exceed seven (7) Service
     Credits. A Service Credit shall be issued in the Exodus invoice in the
     month following the Downtime or Performance Problem, unless the Service
     Credit is due in Customer's final month of Service. In such case, a refund
     for the dollar value of the Service Credit will be mailed to Customer.
     Customer shall also be eligible to receive a pro-rata refund for (i)
     Downtime periods and Performance Problems for which Customer does not

<PAGE>
                                      -9-

     receive a Service Credit and (ii) any Services Exodus does not deliver to
     Customer for which Customer has paid.

          (f) TERMINATION OPTION FOR CHRONIC PROBLEMS. Customer may terminate
     this Agreement for cause and without penalty by notifying Exodus within
     five (5) days following the end of a calendar month in the event either of
     the following occurs: (i) Customer experiences more than fifteen (15)
     Downtime periods resulting from three (3) or more nonconsecutive Downtime
     events during the calendar month; or (ii) Customer experiences more than
     eight (8) consecutive hours of Downtime due to any single event. Such
     termination will be effective thirty (30) days after receipt of such notice
     by Exodus.

          (g) THE SERVICE LEVEL WARRANTY SET FORTH IN THIS SECTION 5.2 SHALL
     ONLY APPLY TO THE BANDWIDTH AND FACILITIES SERVICE(S) PROVIDED BY EXODUS
     AND DOES NOT APPLY TO (I) ANY PROFESSIONAL SERVIES; (II) ANY SUPPLEMENTAL
     SERVICES; AND (III) ANY SERVICE(S) THAT EXPRESSLY EXCLUDE THIS SERVICE
     LEVEL WARRANTY (AS STATED IN THE SPECIFICATION SHEETS FOR SUCH SERVICES).
     THIS SECTION 5.2 STATES CUSTOMER'S SOLE AND EXCLUSIVE REMEDY FOR ANY
     FAILURE BY EXODUS TO PROVIDE SERVICE(S).

     5.3 SERVICE PERFORMANCE WARRANTY. Exodus warrants that it will perform the
Services in a manner consistent with industry standards reasonably applicable to
the performance thereof.

     5.4 SELECTION OF EXODUS SUPPLIED EQUIPMENT; MANUFACTURER WARRANTY. Customer
acknowledges that it has selected the Exodus Supplied Equipment and disclaims
any statements made by Exodus. Except with respect to any express warranties for
Service(s) related to Exodus Supplied Equipment, Customer acknowledges and
agrees that its use and possession of the Exodus Supplied Equipment by Customer
shall be subject to and controlled by the terms of any manufacturer's or, if
appropriate, supplier's warranty, and Customer agrees to look solely to the
manufacturer or, if appropriate, supplier with respect to all mechanical,
service and other claims, and the right to enforce all warranties made by said
manufacturer are hereby, to the extent Exodus has the right, assigned to
Customer solely for the Initial Term.

     5.5 NO OTHER WARRANTY. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS
SECTION 5, THE SERVICES ARE PROVIDEED ON AN "AS IS" BASIS, AND CUSTOMER'S USE OF
THE SERVICES IS AT ITS OWN RISK. EXODUS DOES NOT MAKE, AND HEREBY DISCLAIMS, ANY
AND ALL OTHER EXPRESS AND/OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO,
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT
AND TITLE, AND ANY WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE, OR TRADE
PRACTICE. EXODUS DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED,
ERROR-FREE, OR COMPLETELY SECURE.

     5.6 DISCLAIMER OF ACTIONS CAUSED BY AND/OR UNDER THE CONTROL OF THIRD
PARTIES. EXODUS DOES NOT AND CANNOT CONTROL THE FLOW OF DATA TO OR FROM EXODUS'

<PAGE>
                                      -10-

NETWORK AND OTHER PORTIONS OF THE INTERNET. SUCH FLOW DEPENDS IN LARGE PART ON
THE PERFORMANCE OF INTERNET SERVICES PROVIDED OR CONTROLLED BY THIRD PARTIES. AT
TIMES, ACTIONS OR INACTIONS OF SUCH THIRD PARTIES CAN IMPAIR OR DISRUPT
CUSTOMER'S CONNECTIONS TO THE INTERNET (OR PORTIONS THEREOF). ALTHOUGH EXODUS
WILL USE COMMERCIALY REASONABLE EFFORTS TO TAKE ALL ACTIONS IT DEEMS APPROPRIATE
TO REMEDY AND AVOID SUCH EVENTS, EXODUS CANNOT GUARANTEE THAT SUCH EVENTS WILL
NOT OCCUR. ACCORDINGLY, EXODUS DISCLAIMS ANY AND ALL LIABILITY RESULTING FROM OR
RELATED TO SUCH EVENTS.

6.   CUSTOMER OBLIGATIONS.

     6.1  WARRANTIES OF CUSTOMER.

          (a) GENERAL. Customer represents and warrants that (i) it has the
     legal right and authority, and will continue to own or maintain the legal
     right and authority, during the term of this Agreement, to place and use
     any Customer Equipment as contemplated under this Agreement; (ii) the
     performance of its obligations and use of the Services (by Customer, its
     customers and users) will not violate any applicable laws, regulations or
     the Rules and Regulations or cause a breach of any agreements with any
     third parties or unreasonably interfere with other Exodus customers' use of
     Exodus services, and (iii) all equipment, materials and other tangible
     items placed by Customer at Internet Data Centers will be used in
     compliance with all applicable manufacturer specifications.

          (b) BREACH OF WARRANTIES. In the event of any breach of any of the
     foregoing warranties, in addition to any other remedies available at law or
     in equity, Exodus will have the right, in its sole reasonable discretion,
     to suspend immediately any related Services if deemed reasonably necessary
     by Exodus to prevent any harm to Exodus and its business. Exodus will
     provide notice and opportunity to cure if practicable depending on the
     nature of the breach. Once cured, Exodus will promptly restore the
     Service(s).

     6.2 COMPLIANCE WITH LAW AND RULES AND REGULATIONS. Customer agrees that it
will use the Service(s) only for lawful purposes and in accordance with this
Agreement. Customer will comply at all times with all applicable laws and
regulations and the Rules and Regulations, as updated by Exodus from time to
time. The Rules and Regulations are incorporated herein and made a part hereof
by this reference. Exodus may change the Rules and Regulations upon fifteen(15)
days' notice to Customer, which notice may be provided by posting such new Rules
and Regulations at the Exodus Web site www.exodus.net. Customer agrees that it
has received, read and understands the current version of the Rules and
Regulations. The Rules and Regulations contain restrictions on Customer's and
Customer's users' online conduct (including prohibitions against unsolicited
commercial email) and contain financial penalties for violations of such
restrictions. Customer agrees to comply with such restrictions and, in the event
of a failure to comply, Customer agrees to pay the financial penalties in
accordance with the Rules and Regulations. Customer acknowledges that Exodus
exercises no control whatsoever over the content of the information passing
through Customer's site(s) and that it

<PAGE>
                                      -11-

is the sole responsibility of Customer to ensure that the information it and its
users transmit and receive complies with all applicable laws and regulations and
the Rules and Regulations.

     6.3 ACCESS AND SECURITY. Except with the advanced written consent of
Exodus, Customer's access to the Internet Data Centers will be limited solely to
the Representatives. Representatives may only access the Customer Area and are
prohibited from accessing other areas of the Internet Data Center(s) unless
accompanied by an authorized Exodus representative.

     6.4 RESTRICTIONS ON USE OF SERVICES. Customer shall not, without the prior
written consent of Exodus (which may be withheld in its sole discretion), resell
the Services to any third parties or connect Customer Equipment directly to
anything other than the Exodus network, equipment and facilities.

     6.5 RELOCATION OF CUSTOMER EQUIPMENT. In the event that it becomes
necessary to relocate the Customer Equipment to another Customer Area or
Internet Data Center operated by Exodus, Customer will cooperate in good faith
with Exodus to facilitate such relocation, provided that such relocation is
based on reasonable business needs of Exodus (including the needs of other
Exodus customers), the expansion of the space requirements of Customer or
otherwise. Exodus shall be solely responsible for any costs and expenses
incurred by Exodus in connection with any such relocation and will use
commercially reasonable efforts, in cooperation with Customer, to minimize and
avoid any interruption to the Services.

          6.6 EXODUS SUPPLIED EQUIPMENT.

               (a) DELIVERY AND TERM. On or prior to the Service Commencement
          Date, Exodus shall deliver to Customer, at the designated Customer
          Area, the Exodus Supplied Equipment. Customer shall have the right to
          use the Exodus Supplied Equipment for the Initial Term set forth in
          the Order Form and any additional period agreed to in writing by
          Exodus. Customer shall not remove any Exodus Supplied Equipment from
          the Customer Area(s) without the prior written consent of Exodus.

               (b) TITLE. The Exodus Supplied Equipment shall always remain the
          personal property of Exodus. Customer shall have no right or interest
          in or to the Exodus Supplied Equipment except as provided in this
          Agreement and the applicable Order Form and shall hold the Exodus
          Supplied Equipment subject and subordinate to the rights of Exodus.
          Customer agrees to execute UCC financing statements as and when
          requested by Exodus and hereby appoints Exodus as its attorney-in-fact
          to execute such financing statements on behalf of Customer. Customer
          will, at its own expense, keep the Exodus Supplied Equipment free and
          clear from any liens or encumbrances of any kind (except any caused by
          Exodus) and will indemnify and hold Exodus harmless from and against
          any loss or expense caused by Customer's failure to do so. Customer
          shall give Exodus immediate written notice of any amendment or
          judicial process affecting the Exodus Supplied Equipment or Exodus'
          ownership. Customer will not remove, alter or destroy any labels on
          the Exodus Supplied Equipment stating that it is the property of
          Exodus and shall allow the inspection of the Exodus Supplied Equipment
          at any time.

<PAGE>
                                      -12-

               (c) USE, MAINTENANCE AND REPAIR. Customer will, at its own
          expenses, keep the Exodus Supplied Equipment in good repair,
          appearance and condition, other than normal wear and tear, and, if not
          included in the Services, shall obtain, pay for and keep in effect
          through the Initial Term a hardware and software maintenance agreement
          with the manufacturer or other party acceptable to Exodus. All parts
          furnished in connection with such repair and maintenance shall be
          manufacturer authorized parts and shall immediately become components
          of the Exodus Supplied Equipment and the property of Exodus. Customer
          shall use the Exodus Supplied Equipment in compliance with the
          manufacturer's or supplier's suggested guidelines.

               (d) UPGRADES AND ADDITIONS. Customer may affix or install any
          accessory, addition, upgrade, equipment or device on to the Exodus
          Supplied Equipment (other than electronic data) ("Additions") provided
          that such Additions (i) can be removed without causing material damage
          to the Exodus Supplied Equipment; (ii) do not reduce the value of the
          Exodus Supplied Equipment and (iii) are obtained from or approved in
          writing by Exodus and are not subject to the interest of any third
          party other than Exodus. Any other Additions may not be installed
          without Exodus' prior written consent. At the end of the Initial Term,
          Customer shall remove any Additions which (i) were not provided by
          Exodus and (ii) are readily removable without causing material damage
          or impairment of the intended function, use, or value of the Exodus
          Supplied Equipment, and restore the Exodus Supplied Equipment to its
          original configuration. Any Additions, which are not so removable,
          will become the property of Exodus (lien free).

7.   INSURANCE.

     7.1 EXODUS MINIMUM LEVELS. Exodus agrees to keep in full force and effect
during the term of this Agreement: (i) comprehensive general liability insurance
in an amount not less than $2 million per occurrence for bodily injury and
property damage and (ii) workers' compensation insurance in an amount not less
than that required by applicable law. Exodus agrees that it will ensure and be
solely responsible for ensuring that its contractors and subcontractors maintain
insurance coverage at levels no less than those required by applicable law and
customarily in Exodus' and its agents' industries.

     7.2 CUSTOMER MINIMUM LEVELS. In order to provide customers with physical
access to facilities operated by Exodus and equipment owned by third parties,
Exodus is required by its insurers to ensure that each Exodus customer maintains
adequate insurance coverage. Customer agrees to keep in full force and effect
during the term of this Agreement: (i) comprehensive general liability insurance
in an amount not less than $2 million per occurrence for bodily injury and
property damage and (ii) workers' compensation insurance in an amount not less
than that required by applicable law. Customer agrees that it will ensure and be
solely responsible for ensuring that its agents (including contractors and
subcontractors) maintain insurance coverage at levels no less than those
required by applicable law and customary in Customer's and its agents'
industries.

     7.3 CERTIFICATE OF INSURANCE; NAMING EXODUS AS AN ADDITIONAL INSURED. Prior
to installation of any Customer Equipment in the Customer Area, Customer will
(i) deliver to Exodus certificates

<PAGE>
                                      -13-

of insurance which evidence the minimum levels of insurance set forth above; and
(ii) cause its insurance provider(s) to name Exodus as an additional insured and
notify Exodus in writing of the effective date thereof.

8.   LIMITATIONS OF LIABILITY.

     8.1 PERSONAL INJURY. EACH REPRESENTATIVE AND ANY OTHER PERSON VISITING AN
INTERNET DATA CENTER DOES SO AT ITS OWN RISK. EXODUS ASSUMES NO LIABILITY
WHATSOEVER FOR ANY HARM TO SUCH PERSONS RESULTING FROM ANY CAUSE OTHER THAN THE
NEGLIGENCE OR WILLFUL MISCONDUCT OF EXODUS.

     8.2 DAMAGE TO CUSTOMER EQUIPMENT. EXODUS ASSUMES NO LIABILITY FOR ANY
DAMAGE TO, OR LOSS OF, ANY CUSTOMER EQUIPMENT RESULTING FROM ANY CAUSE OTHER
THAN THE NEGLIGENCE OR WILLFUL MISCONDUCT OF EXODUS. TO THE EXTENT EXODUS IS
LIABLE FOR ANY DAMAGE TO, OR LOSS OF CUSTOMER EQUIPMENT FOR ANY REASON, SUCH
LIABILITY WILL BE LIMITED SOLELY TO THE THEN-CURRENT REPLACEMENT VALUE OF THE
CUSTOMER EQUIPMENT, EXCLUDING LOST DATA, SOFTWARE AND FIRMWARE.

     8.3 CONSEQUENTIAL DAMAGES WAIVER. EXCEPT FOR A BREACH OF SECTION 4.1
("CONFIDENTIAL INFORMATION") OF THIS AGREEMENT, IN NO EVENT WILL EITHER PARTY BE
LIABLE OR RESPONSIBLE TO THE OTHER FOR ANY TYPE OF INCIDENTAL, PUNITIVE,
INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST REVENUE,
LOST PROFITS, REPLACEMENT GOODS, LOSS OF TECHNOLOGY, RIGHTS OR SERVICES, LOSS OF
DATA, OR INTERRUPTION OR LOSS OF USE OF SERVICE OR EQUIPMENT, EVEN IF ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES, WHETHER ARISING UNDER THEORY OF CONTRACT, TORT
(INCUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

     8.4 BASIS OF THE BARGAIN; FAILURE OF ESSENTIAL PURPOSE. The parties
acknowledge that Exodus has set its prices and entered into this Agreement in
reliance upon the limitations of liability and the disclaimers of warranties and
damages set forth herein, and that the same form an essential basis of the
bargain between the parties. The parties agree that the limitations and
exclusions of liability and disclaimers specified in this Agreement will survive
and apply even if found to have failed of their essential purpose.

9.   INDEMNIFICATION.

     9.1 INDEMNIFICATION. Each party will indemnify, defend and hold the other
harmless from and against any and all costs, liabilities, losses, and expenses
(including, but not limited to, reasonable attorneys' fees) (collectively,
"Losses") resulting from any claim, suit, action, or proceeding (each, an
"Action") brought by any third party against the other or its affiliates
alleging (i) the infringement or misappropriation of any intellectual property
right relating to the delivery or use of the Service(s) (but excluding any
infringement contributorily caused by the other party); (ii) personal injury
caused by the negligence or willful misconduct of the other party; and (iii) any
violation of or failure to comply

<PAGE>
                                      -14-

with the Rules and Regulations. Customer will indemnify, defend and hold Exodus,
its affiliates or customers alleging any damage or destruction to the Customer
Area, the Internet Data Centers, Exodus equipment or other customer equipment
caused by Customer, its Representative(s) or designees.

     9.2 NOTICE. Each party's indemnification obligations hereunder shall be
subject to (i) receiving prompt written notice of the existence of any Action;
(ii) being able to, at its option, control the defense of such Action; (iii)
permitting the indemnified party to participate in the defense of any Action;
and (iv) receiving full cooperation of the indemnified party in the defense
thereof.

10.  TERMINATION.

     10.1 TERMINATION FOR CAUSE. Either party may terminate this Agreement if:
(i) the other party breaches any material term or condition of this Agreement
and fails to cure such breach within thirty (30) days after receipt of written
notice of the same, except in the case of failure to pay fees, which must be
cured within five (5) days after receipt of written notice from Exodus; (ii) the
other party becomes the subject of a voluntary petition in bankruptcy or any
voluntary proceeding relating to insolvency, receivership, liquidation, or
composition for the benefit of creditors; or (iii) the other party becomes the
subject of an involuntary petition in bankruptcy or any involuntary proceeding
relating to insolvency, receivership, liquidation, or composition for the
benefit of creditors, if such petition or proceeding is not dismissed within
sixty (60) days of filing. Customer may also terminate this Agreement in
accordance with the terms set forth in paragraph 5.2(f) ("Termination Option For
Chronic Problems") of this Agreement.

     10.2 NO LIABILITY FOR TERMINATION. Neither party will be liable to the
other for any termination or expiration of any Service or this Agreement in
accordance with its terms.

     10.3 EFFECT OF TERMINATION. Upon the effective date of termination of this
Agreement:

          (a) Exodus will immediately cease providing the Service(s);

          (b) any and all payment obligations of Customer under this Agreement
     for Service(s) provided through the date of termination will immediately
     become due;

          (c) within thirty (30) days of such termination, each party will
     return all Confidential Information of the other party in its possession
     and will not make or retain any copies of such Confidential Information
     except as required to comply with any applicable legal or accounting record
     keeping requirement; and

          (d) within five (5) days of such termination Customer shall (i) remove
     from the Internet Data Centers all Customer Equipment (excluding any Exodus
     Supplied Equipment) and any other Customer property; (ii) deliver or make
     available all Exodus Supplied Equipment to an authorized representative of
     Exodus, and (iii) return the Customer Area to Exodus in the same condition
     as it was on the Service Commencement Date for the Customer Area, normal
     wear and tear excepted. If Customer does not remove the Customer Equipment
     and its other property within such five-day period. Exodus will have the
     option to (i) move any and

<PAGE>
                                      -15-

     all such property to secure storage and charge Customer for the cost of
     such removal and storage, and/or (ii) liquidate the property in any
     reasonable manner.

          10.4 SURVIVAL. The following provisions will survive any expiration or
     termination of the Agreement: Sections 3, 4.1, 4.2, 4.4, 5.5, 6.6(d), 8, 9,
     10 and 11 (excluding 11.2).

11.  MISCELLANEOUS PROVISIONS.

     11.1 FORCE MAJEURE. Except for the obligation to make payments, neither
party will be liable for any failure or delay in its performance under this
Agreement due to any cause beyond its reasonable control, including acts of war,
acts of God, earthquake, flood, embargo, riot, sabotage, labor shortage or
dispute, governmental act or failure of the Internet (not resulting from the
actions or inactions of Exodus), provided that the delayed party: (a) gives the
other party prompt notice of such cause, and (b) uses its reasonable commercial
efforts to promptly correct such failure or delay in performance. If Exodus is
unable to provide Service(s) for a period of thirty (30) consecutive days as a
result of a continuing force majeure event, Customer may cancel the Service(s).

     11.2 NO LEASE; AGREEMENT SUBORDINATE TO MASTER LEASE. This Agreement is a
services agreement and is not intended to and will not constitute a lease of any
real property. Customer acknowledges and agrees that (i) it has been granted
only a license to occupy the Customer Area and use the Internet Data Centers and
any equipment provided by Exodus in accordance with this Agreement; (ii)
Customer has not been granted any real property interest in the Customer Area or
Internet Data Centers; (iii) Customer has no rights as a tenant or otherwise
under any real property or landlord/tenant laws, regulations, or ordinances;
(iv) this Agreement, to the extent it involves the use of space leased by
Exodus, shall be subordinate to any lease between Exodus and its landlord(s);
and (v) the expiration or termination of any such lease shall terminate this
Agreement as to such property subject to Customer retaining any rights or claims
it may have against Exodus arising from the expiration or termination of such
lease. Customer hereby waives and releases any claims or rights to make a claim
that it may have against the landlord(s) under any lease by Exodus with respect
to any equipment or property of Customers' located in the premises demised to
Exodus by such landlord(s).

     11.3 MARKETING. Customer agrees that during the term of this Agreement
Exodus may publicly refer to Customer, orally and in writing, as a Customer of
Exodus. Any other reference to Customer by Exodus requires the written consent
of Customer.

     11.4 GOVERNMENT REGULATIONS. Customer will not export, re-export, transfer,
or make available, whether directly or indirectly, any regulated item or
information to anyone outside the U.S. in connection with this Agreement without
first complying with all export control laws and regulations which may be
imposed by the U.S. Government and any country or organization of nations within
whose jurisdiction Customer operates or does business.

     11.5 NON-SOLICITATION. During the Term of this Agreement and continuing
through the first anniversary of the termination of this Agreement, Customer
agrees that it will not, and will ensure that its affiliates do not, directly or
indirectly, solicit or attempt to solicit for employment any persons employed by
Exodus or contracted by Exodus to provide Services to Customer.

<PAGE>
                                      -16-

     11.6 NO THIRD PARTY BENEFICIARIES. Exodus and Customer agree that, except
as otherwise expressly provided in this Agreement, there shall be no third party
beneficiaries to this Agreement, including but not limited to the insurance
providers for either party or the customers of Customer.

     11.7 GOVERNING LAW; DISPUTE RESOLUTION. This Agreement is made under and
will be governed by and construed in accordance with the laws of the State of
California (except that body of law controlling conflicts of law) and
specifically excluding from application to this Agreement that law known as the
United Nations Convention on the International Sale of Goods. The parties will
endeavor to settle amicably by mutual discussions any disputes, differences, or
claims whatsoever related to this Agreement. Failing such amicable settlement,
any controversy, claim, or dispute arising under or relating to this Agreement,
including the existence, validity, interpretation, performance, termination or
breach thereof, shall finally be settled by arbitration in accordance with the
Arbitration Rules (and if Customer is a non-U.S. entity, the International
Arbitration Rules) of the American Arbitration Association ("AAA"). There will
be three (3) arbitrators (the "Arbitration Tribunal"), the first of which will
be appointed by the claimant in its notice of arbitration, the second of which
will be appointed by the respondent within thirty (30) days of the appointment
of the first arbitrator and the third of which will be jointly appointed by the
party-appointed arbitrators within thirty (30) days thereafter. The language of
the arbitration shall be English. The Arbitration Tribunal will not have the
authority to award punitive damages to either party. Each party shall bear its
own expenses, but the parties will share equally the expenses of the Arbitration
Tribunal and the AAA. This Agreement will be enforceable, and any arbitration
award will be, final, and judgment thereon may be entered in any court of
competent jurisdiction. The arbitration will be held in San Francisco,
California, USA. Notwithstanding the foregoing, claims for preliminary
injunctive relief, other pre-judgment remedies, and claims for Customer's
failure to pay for Services in accordance with this Agreement may be brought in
a state or federal court in the United States with jurisdiction over the subject
matter and parties.

     11.8 SEVERABILITY; WAIVER. In the event any provision of this Agreement is
held by a tribunal of competent jurisdiction to be contrary to the law, the
remaining provisions of this Agreement will remain in full force and effect. The
waiver of any breach or default of this Agreement will not constitute a waiver
of any subsequent breach or default, and will not act to amend or negotiate the
rights of the waiving party.

     11.9 ASSIGNMENT. Customer may assign this Agreement in whole as part of a
corporate reorganization, consolidation, merger, or sale of substantially all of
its users. Customer may not otherwise assign its rights or delegate its duties
under this Agreement either in whole or in part without the prior written
consent of Exodus, and any attempted assignment or delegation without such
consent will be void. Exodus may assign this Agreement in whole or part. Exodus
also may delegate the performance of certain Services to third parties,
including Exodus' wholly owned subsidiaries, provided Exodus controls the
delivery of such Services to Customer and remains responsible to Customer for
the delivery of such Services. This Agreement will bind and inure to the benefit
of each party's successors and permitted assigns.

     11.10 NOTICE. Any notice or communication required or permitted to be given
hereunder may be delivered by hand, deposited with an overnight courier, sent by
email, confirmed facsimile, or

<PAGE>
                                      -17-

mailed by registered or certified mail, return receipt requested, postage
prepaid, in each case to the address of the receiving party as listed on the
Order Form or at such other address as may hereafter be furnished in writing by
either party to the other party. Such notice will be deemed to have been given
as of the date it is delivered, mailed, emailed, faxed or sent, whichever is
earlier.

     11.11 RELATIONSHIP OF PARTIES. Exodus and Customer are independent
contractors and this Agreement will not establish any relationship of
partnership, joint venture, employment, franchise or agency between Exodus and
Customer. Neither Exodus nor Customer will have the power to bind the other or
incur obligations on the other's behalf without the other's prior written
consent, except as otherwise expressly provided herein.

     11.12 ENTIRE AGREEMENT; COUNTERPARTS; ORIGINALS. This Agreement, including
all documents incorporated herein by reference, constitutes the complete and
exclusive agreement between the parties with respect to the subject matter
hereof, and supersedes and replaces any and all prior or contemporaneous
discussions, negotiations, understandings and agreements, written and oral,
regarding such subject matter. Any additional or different terms in any purchase
order or other response by Customer shall be deemed objected to by Exodus
without need of further notice of objection, and shall be of no effect or in any
way binding upon Exodus. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original, but all of which
together shall constitute one and the same instrument. Once signed, any
reproduction of this Agreement made by reliable means (e.g., photocopy,
facsimile) is considered an original. This Agreement may be changed only by a
written document signed by authorized representatives of Exodus and Customer in
accordance with this Section 11.12. For purposes of this Agreement, the term
"written" means anything reduced to a tangible form by a party, including a
printed or hand written document, e-mail or other electronic format.

     11.13 INTERPRETATION ON CONFLICTING TERNS. In the event of a conflict
between or among the terms in this Agreement, the Order Form(s), the
Specification Sheet(s), the Statement(s) of Work, and any other documents made a
part hereof, the documents shall control in the following order, the Order Form
with the latest date, the Statement of Work, Specification Sheets, the Agreement
and other documents.

<PAGE>
                                      -18-

     Authorized representatives of Customer and Exodus have read the foregoing
and all documents incorporated therein and agree and accept such terms effective
as of the date first above written.

CUSTOMER                                 EXODUS COMMUNICATIONS, INC.

Signature:                           Signature:
            -----------------------              ----------------------
Print Name:                          Print Name:
            -----------------------              ----------------------
Title:                               Title:
            -----------------------              ----------------------
Date:              1/14/2000         Date:
            -----------------------              ----------------------

This Agreement incorporates the following documents:

o   Order Form(s)

      Specification Sheet(s)

      Statement(s) of Work (if applicable)

o   Registration Form

o   Addendum A - Equipment Purchase Terms and Conditions (if applicable)

<PAGE>

                                   ADDENDUM A

                     EQUIPMENT PURCHASE TERMS AND CONDITIONS

     1. SHIPPING AND HANDLING. All equipment purchased by Customer (the
"Equipment") is provided FOB vendor facility. Shipment will be made as specified
by Customer and Customer is solely responsible for all expenses in connection
with the delivery of the Equipment. The Equipment will be deemed accepted by
Customer upon shipment.

     2. PURCHASE PRICE AND TAXES. Customer shall pay to Exodus the purchase
price set forth in the applicable Order Form ("Purchase Price") for each item of
Equipment. Customer hereby grants and Exodus reserves a purchase money security
interest in the Equipment and the proceeds thereof as a security for its
obligations hereunder until payment of the full Purchase Price to Exodus. The
Purchase Price is due and payable within thirty (30) days of shipment of the
Equipment. Customer shall pay all taxes and other governmental charges assessed
in connection with the sale, use or possession of the Equipment including,
without limitation, any and all sales and/or use taxes and personal property
taxes (other than taxes on Exodus' net income).

     3. TITLE. Customer shall acquire title to the Equipment upon full payment
of the purchase price(s) set forth herein. Notwithstanding the foregoing, Exodus
and any licensor of rights to Exodus shall retain title to and rights in the
intellectual property (whether or not subject to patent or copyright) and
content contained in the materials supplied under the terms of this Agreement.

     4. SELECTION OF EQUIPMENT; MANUFACTURER WARRANTY. Customer acknowledges
that it has selected the Equipment and disclaims any statements made by Exodus.
Customer acknowledges and agrees that use and possession of the Equipment by
Customer shall be subject to and controlled by the terms of any manufacturer's
or, if appropriate, supplier's warranty, and Customer agrees to look solely to
the manufacturer or, if appropriate, supplier with respect to all mechanical,
service and other claims, and the right to enforce all warranties made by said
manufacturer are hereby, to the extent Exodus has the right, assigned to
Customer. THE FOREGOING WARRANTY IS THE EXCLUSIVE WARRANTY AND IS IN LIEU OF ANY
ORAL REPRESENTATION AND ALL OTHER WARRANTIES AND DAMAGES, WHETHER EXPRESS,
IMPLIED OR STATUTORY. EXODUS HAS NOT MADE NOR DOES MAKE ANY OTHER WARRANTIES OF
ANY KIND, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF
FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, OR OF NONINFRINGEMENT OF
THIRD PARTY RIGHTS AND AS TO EXODUS AND ITS ASSIGNEES, CUSTOMER PURCHASES THE
EQUIPMENT "AS IS."

     5. LIMITATION OF LIABILITY. Exodus' entire liability for any damages which
may arise hereunder, for any cause whatsoever, and regardless of the form of
action, whether in contract or in tort, including Exodus' negligence, or
otherwise, shall be limited to the Purchase Price paid by Customer for the
Equipment. IN NO EVENT WILL EXODUS BE LIABLE FOR ANY SPECIAL, INDIRECT,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, OR FOR ANY LOSS OF BUSINESS OR PROSPECTIVE
BUSINESS OPPORTUNITIES, PROFITS, SAVINGS, INFORMATION,

<PAGE>
                                      -2-

USE OR OTHER COMMERCIAL OR ECONOMIC LOSS, EVEN IF EXODUS HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.

     6. GOVERNING LAW, DISPUTE RESOLUTION. This Agreement is made under and will
be governed by and construed in accordance with the laws of the State of
California (except that body of law controlling conflicts of law) and
specifically excluding from application to this Agreement that law known as the
United Nations Convention on the International Sale of Goods. The parties will
endeavor to settle amicably by mutual discussions any disputes, differences or
claims whatsoever related to this Agreement. Failing such amicable settlement,
any controversy, claim or dispute arising under or relating to this Agreement,
including the existence, validity, interpretation, performance, termination or
breach thereof, the parties to this Agreement hereby consent to jurisdiction and
venue in the courts of the state of California and in the U.S. District Courts
in the City of San Francisco, California.

     7. MISCELLANEOUS. THE ABOVE TERMS AND CONDITIONS ARE THE ONLY TERMS AND
CONDITIONS UPON WHICH EXODUS IS WILLING TO SELL THE EQUIPMENT AND SUPERSEDE ALL
PREVIOUS AGREEMENTS, PROMISES OR REPRESENTATIONS, ORAL OR WRITTEN.

<PAGE>

<TABLE>
<CAPTION>

ORDER FORM                                                                                                       EXODUS

Customer
--------------------------------------------------------  -------------------------------------------  -------------------------

Next Big Star, LLC

--------------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                      <C>                                          <C>
Quote Date:            January 20, 2000                                                                IDC:
Form #:                1-3OYF5                            Revision:           1                        Sales Person:
Valid From:            01/19/2000                         Through:            01/31/2000               Order Status:
                 ------------------------------------------------------------------------------------  --------------------------
                 Requested Service Date:   03/31/2000                                                  Initial Term:   12 Months
---------------  ---------------------------------------  -------------------------------------------  -------------------------

     LINE                       SERVICES                                 DESCRIPTION*                            IDC
---------------  ---------------------------------------  -------------------------------------------  -------------------------
1                EXO-SRBW2                                Exodus Bandwith Reporting                    DC /
                                                                                                       Herndon
---------------  ---------------------------------------  -------------------------------------------  -------------------------
2                EXO-SRBW2                                Exodus Bandwith Reporting                    Santa Clara, CA
---------------  ---------------------------------------  -------------------------------------------  -------------------------
3                EXO-RACK-50                              CyberRack (19" or 23" Half Rack)             DC /
                                                                                                       Herndon
---------------  ---------------------------------------  -------------------------------------------  -------------------------
4                EXO-RACK-50                              CyberRack (19" or 23" Half Rack)             Santa Clara, CA
---------------  ---------------------------------------  -------------------------------------------  -------------------------
5                EXO-RACK-50SU                            CyberRack Setup 50                           DC /
                                                                                                       Herndon
---------------  ---------------------------------------  -------------------------------------------  -------------------------
6                EXO-RACK-50SU                            CyberRack Setup 50                           Santa Clara, CA
---------------  ---------------------------------------  -------------------------------------------  -------------------------
7                EXO-ETHER-U1                             1 Mbps base Ethernet with 10 Mbps            DC /
                                                          burstability                                 Herndon
---------------  ---------------------------------------  -------------------------------------------  -------------------------
8                EXO-ETHER-U1                             1 Mbps base Ethernet with 10 Mbps            Santa Clara, CA
                                                          burstability
---------------  ---------------------------------------  -------------------------------------------  -------------------------
9                EXO-ETHER-SU                             Setup - Ethernet Network                     DC /
                                                                                                       Herndon
---------------  ---------------------------------------  -------------------------------------------  -------------------------
10               EXO-ETHER-SU                             Setup - Ethernet Network                     Santa Clara, CA
---------------  ---------------------------------------  -------------------------------------------  -------------------------
11               EXO-MONW                                 24x7 Network Device Monitoring  (per         DC /
                                                          device)                                      Herndon
---------------  ---------------------------------------  -------------------------------------------  -------------------------
12               EXO-MONW                                 24x7 Network Device Monitoring  (per         Santa Clara, CA
                                                          device)
---------------  ---------------------------------------  -------------------------------------------  -------------------------
17               EXO-MS3DNS1                              3DNS1 Managed Service                        DC /
                                                                                                       Herndon
---------------  ---------------------------------------  -------------------------------------------  -------------------------
18               EXO-MS3DNS1SU                            3DNS1 Managed Service - Set-up               DC /
                                                                                                       Herndon
---------------  ---------------------------------------  -------------------------------------------  -------------------------
                 Total
---------------  ---------------------------------------  -------------------------------------------  -------------------------
Variable Usage above Base
---------------------------------------------------------------------------------------------------------------------------------

---------------  ---------------------------------------  -------------------------------------------  -------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                               Bill to
----------------- -----------  -----------------------  -------------------------  -----------------------  -----------------------
Next Big Star, LLC             Next Big Star, LLC
                               1000 Universal Studios Plaza
                               Orlando, FL  32819
----------------- -----------  ----------------------------------------------------------------------------------------------------
Quote Date:       DC / Herndon                          Payment Terms:               Net 30
Form #:           Michael Shaw                                 Pilar Wienko
Valid From:       Final                                 Order Type:                  New
                 -----------------------------------------------------------------------------------------
                 (minimum 12)
---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
                                                                                                                   EXTENDED
                                      MONTHLY                NON-RECURRING                EXTENDED                   NON-
                                     RECURRING                    COST                    MONTHLY                 RECURRING
     LINE            QTY                COST                                                FEES                     FEES
---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
<S>                   <C>               <C>                        <C>                        <C>                      <C>
1                     1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
2                     1                 $****                      $****                      $****                    $****
---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
3                     1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
4                     1                 $****                      $****                      $****                    $****
---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
5                     1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
6                     1                 $****                      $****                      $****                    $****
---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
7                     1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
8                     1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
9                     1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
10                    1                 $****                      $****                      $****                    $****
---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
11                    1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
12                    1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
17                    1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
18                    1                 $****                      $****                      $****                    $****

---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
                                                                                              $****                    $****
---------------   -----------  -----------------------  -------------------------  -----------------------  -----------------------
Variable Usage above Base
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Customer's Initials__________
---------------   -----------  -----------------------  ---------------------------------------------------------------------------

</TABLE>

**** Confidential Treatment is being requested for these portions of this
Agreement.

<PAGE>
                                      -2-

<TABLE>
<CAPTION>

ORDER FORM
                                                                                                              EXODUS
<S>                          <C>                              <C>                     <C>            <C>
 --------------------------  -------------------------------  -------------------- ----------- ---------------------
       EXO-ETHER-UV          Variable Usage Cost              DC /                     0              $****
                             above base                       Herndon
                             Amount ($/megabit)
                             Ethernet
 --------------------------  -------------------------------  -------------------- ----------- ---------------------
       EXO-ETHER-UV          Variable Usage Cost              Santa Clara, CA          0              $****
                             above base
                             Amount ($/megabit)
                             Ethernet
 --------------------------  -------------------------------  -------------------- ----------- ---------------------

</TABLE>

**** Confidential Treatment is being requested for these portions of this
Agreement.

<PAGE>

ORDER FORM
                                                                          EXODUS
ORDER FORM TERMS AND CONDITIONS:

(1)  Customer hereby orders and Exodus Communications, Inc. (Exodus) agrees to
     provide the Services described in this Order Form. THE SERVICES ARE
     PROVIDED PURSUANT TO THE TERMS AND CONDITIONS OF THIS ORDER FORM AND THE
     SERVICES AGREEMENT (EITHER MASTER SERVICES AGREEMENT, INTERNET DATA CENTER
     SERVICES AGREEMENT AND/OR PROFESSIONAL SERVICES AGREEMENT) BETWEEN EXODUS
     AND CUSTOMER.

(2)  The Customer representative signing below hereby acknowledges and agrees
     that in the event that the Customer does not issue a purchase order prior
     to the Requested Service Date, this Order shall serve as Customer's
     purchase order. Customers further acknowledges that any additional or
     conflicting terms and conditions contained in Customer's purchase order
     shall not be applicable to the Services to be provided hereunder, even if
     Exodus uses such purchase order for invoicing purposes.

(3)  Neither Customer nor Exodus will be bound by this Order Form until it has
     been signed by authorized representatives of both parties.

(4)  Changes or alterations to this Order Form will not be accepted.

THERE ARE SIGNIFICANT ADDITIONAL TERMS AND CONDITIONS, WARRANTY DISCLAIMERS AND
LIABILITY LIMITATIONS CONTAINED IN THE SERVICES AGREEMENT (EITHER THE MASTER
SERVICES AGREEMENT, INTERNET DATA CENTER SERVICES AGREEMENT AND/OR PROFESSIONAL
SERVICES AGREEMENT) BETWEEN CUSTOMER AND EXODUS. THERE ARE ALSO DETAILED
DESCRIPTIONS OF EACH SERVICE, AND SPECIFIC TERMS APPLICABLE TO EACH SERVICE,
CONTAINED IN THE SPECIFICATION SHEETS AND/OR STATEMENT OF WORK FOR EACH SERVICE.

DO NOT SIGN THIS ORDER FORM BEFORE YOU HAVE READ ALL OF THE PROVISIONS OF THE
SERVICES AGREEMENT AND THE SPECIFICATION SHEETS AND/OR STATEMENT OF WORK. YOUR
SIGNATURE BELOW INDICATES THAT YOU HAVE READ THE SERVICES AGREEMENT AND THE
SPECIFICATION SHEETS AND/OR STATEMENTS OF WORK AND AGREE TO BE BOUND BY THEIR
PROVISIONS.

--------------------------------------------------------------------------------

CUSTOMER                             EXODUS

Signature:                           Signature:
            -----------------------              ----------------------
Print Name:                          Print Name:
            -----------------------              ----------------------
Title:                               Title:
            -----------------------              ----------------------
Date:                                Date:
            -----------------------              ----------------------

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