Document:

<PAGE>   1

                                                                      Ex. 10.20

GENERAL AGREEMENT # 98005906

SBC OPERATIONS, INC. (BUYER)

&

WORLD WIDE TECHNOLOGY, INC. (SELLER)

INDEX

<TABLE>
<CAPTION>
                                                   PAGE                                                                     PAGE
                                                   ----                                                                     ----
<S>                                                <C>                     <S>                                              <C>
32.      Acceptance-Entire Agreement                2                      63.      Limitation of Liability                   18
33.      Access                                     2                      64.      Material Reliability                      18
34.      Affiliates                                 3                      65.      Modification                              18
35.      Amendments and Waivers                     3                      66.      MBE/WBE-DVBE Participation Plans and
36.      Assignment                                 4                               Reports                                   19
37.      Bar-coding                                 4                      67.      MME/WBE/DVBE CANCELLATION CLAUSE          19
38.      Breach of Agreement                        4                      68.      Non-Exclusive Market Rights               20
39.      Cancellation and Termination               4                      69.      Non-Waiver                                21
40.      Changes and Suspensions                    6                      70.      Notices                                   21
41.      Complaints                                 6                      71.      Order Acknowledgment                      21
42.      Compliance With Laws                       7                      72.      Plant and Work Rules                      22
43.      Conflict of Interest                       7                      73.      Publicity                                 22
44.      Continuing Availability                    7                      74.      Purchase Orders                           22
45.      Cure                                       8                      75.      Quality Assurance                         23
46.      Disaster Availability                      8                      76.      Records and Audits                        25
47.      Electronic Data Interchange (EDI)          8                      77.      Registration                              26
48.      Entire Agreement                           9                      78.      Releases Void                             26
49.      Force Majeure                              9                      79.      Severability                              26
50.      Governing Law                             10                      80.      Software Risk of Loss                     26
51.      Government Contract Provisions            10                      81.      Survival of Obligations                   26
52.      Hazardous Materials and Regulated                                 82.      Taxes                                     27
         Substances                                10                      83.      Technical Support                         28
53.      Independent Contractor                    12                      84.      Termination                               28
54.      Information                               13                      85.      Terms of Agreement                        28
55.      Infringement                              14                      [* Confidential treatment requested]
56.      Insignia                                  15                      87.      Title and Risk of Loss                    28
57.      Installation/Cutover Assistance           16                      88.      Universal Design                          29
58.      Insurance                                 16                      [* Confidential treatment requested]
59.      Liability                                 17                      90.      Work Done By Others                       30
60.      Licenses                                  17                      91.      Year 2000 Warranty                        30
61.      License Fee                               18
62.      License Term                              18
</TABLE>

Exhibit A         Executive Orders and Associated Regulations
Exhibit A1        Seller's M/WBE-DVBE Plan
Exhibits B        Buyer's Purchase Order
Exhibit B1        Results Reports
Exhibits C        OEM Insurance
Exhibit D         QPS Document if Applicable

*Certain material has been omitted from this exhibit pursuant to a request for
confidential treatment and filed separately with the Securities and Exchange
Commission.
<PAGE>   2
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

                                GENERAL AGREEMENT

SBC OPERATIONS, INC. (BUYER)
175 E. Houston
San Antonio, Texas 78205

And

WORLD WIDE TECHNOLOGY, INC.  (WWT-SELLER)
127 Weldon Parkway
St. Louis, Missouri 63043-3101

PREAMBLE

This Agreement effective upon the date of execution by the last party, is
between SBC Operations, Inc. (BUYER) a Delaware corporation, for itself and its
affiliated companies (hereinafter Buyer) and World Wide Technology, Inc.
(Seller), a Missouri corporation. This Agreement outlines the general terms and
conditions for the provision of Material/ Services by Seller to Buyer. Specific
contracts for the purchase of Material/Services will be as negotiated between
Buyer and Seller. Such subordinate contracts to this General Agreement
(98005906) shall incorporate all the terms and conditions of this General
Agreement unless specifically addressed otherwise in such subordinate contracts.
Buyer and Seller agree that the term "Buyer" includes any of Buyer's affiliates,
and the term "Seller" shall mean either World Wide Technology, Inc. or its
Original Equipment Manufacturer (OEM) supplier, as applicable.

                             PROPRIETARY INFORMATION

    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                        1
<PAGE>   3
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

                           ACCEPTANCE--ENTIRE AGREEMENT

Acceptance of this offer to purchase by acknowledgment, shipment or other
performance will be unqualified, unconditional and subject and expressly limited
to the terms and conditions of this Agreement. All previous offers by Seller are
hereby rejected and Buyer will not be bound by terms additional to or different
from those contained herein that may appear in Seller's quotation,
acknowledgment, invoice or in any other communication from Seller, unless such
terms are expressly agreed to in a written instrument signed by Buyer.
Acceptance of MATERIAL or services, payment or any inaction by Buyer will not
constitute Buyer's consent to or acceptance of any such additional or different
terms, nor will estimates furnished by Buyer constitute commitments.

Upon acceptance, the terms contained in this Agreement will constitute the
entire agreement between Seller and Buyer with regard to the subject matter
hereof and supersede all prior oral and written communications, agreements and
understandings of the parties, if any, with respect thereto. THIS AGREEMENT MAY
NOT BE MODIFIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED ON BEHALF OF BOTH PARTIES
BY THE REPRESENTATIVES WHO SIGN THIS AGREEMENT OR THEIR SUCCESSORS IN TITLE AND
AUTHORITY. If either representative is no longer employed by Buyer/Seller or has
been demoted, or if the approval level no longer exists, a manager at a level
equal to or exceeding the original level must execute revisions to this
Agreement.

This Agreement may be executed in one (1) or more counterparts, all of which
will constitute one and the same instrument.

                                     ACCESS

Buyer's Premises:

1.   Seller shall when appropriate have reasonable access to Buyer's premises
     during normal business hours and at such other times as may be agreed upon
     by the parties in order to enable Seller to perform its obligations under
     this Agreement. Seller shall coordinate such access with Buyer's designated
     representative prior to visiting such premises. Seller assures Buyer that
     only persons employed by Seller or subcontractor by Seller will be allowed
     to enter Buyer's premises. If Buyer requests Seller or its Subcontractor
     to discontinue furnishing any person provided by Seller or its
     Subcontractor from performing work on Buyer's premises, Seller shall
     immediately comply with such request. Such person shall leave Buyer's
     premises promptly and Seller shall not furnish such person again to perform
     work on Buyer's premises without Buyer's written consent.

2.   Buyer may require Seller or its subcontractor employees to exhibit
     identification credentials, which Buyer may issue in order to gain access
     to Buyer's premises for the

                             PROPRIETARY INFORMATION

    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       2
<PAGE>   4
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     performance of Services hereunder. If, for any reason, any Seller's or
     Seller's subcontractor employees are no longer performing such Services,
     Seller shall immediately inform Buyer. Notification shall be followed by
     the prompt delivery to Buyer of the identification credentials, if issued
     by Buyer, or a written statement of the reasons why said identification
     credentials cannot be returned.

3.   Seller shall ensure that its personnel and subcontractor perform work which
     conforms to Buyer's practices and handbooks to protect Material, buildings
     or structures and to Perform Services with care and due regard for the
     safety, convenience and protection of Buyer, its employees and property,
     and members of the public.

4.   In the event of theft or loss of property attributable to Seller, Seller
     shall replace the property and/or reimburse Buyer for replacement value of
     the item.

5.   Seller shall be responsible for ensuring that all persons furnished by
     Seller work harmoniously with all others when on Buyer's premises.

                                   AFFILIATES

Seller agrees that an Affiliate may place Orders with Seller which incorporate
the terms and conditions of this Agreement, and that the term "Buyer" shall be
deemed to refer to an Affiliate when an Affiliate places an Order with Seller
incorporating the terms and conditions of this Agreement. An Affiliate will be
responsible for its own obligations, including but not limited to, all charges
incurred in connection with such Order. The parties agree that nothing in this
Agreement will be construed as requiring Buyer to indemnify Seller, or to
otherwise be responsible, for any acts or omissions of an Affiliate, nor shall
anything in this Agreement be construed as requiring an Affiliate to indemnify
Seller, or to otherwise be responsible, for the acts or omissions of Buyer.

The parties agree that the term "Affiliate" includes (1) a company, whether
incorporated or not, which owns, directly or indirectly, a majority interest in
either party (a "parent company"), and (2) a company, whether incorporated or
not, in which a 5% or greater interest is owned, either directly or indirectly,
by: (i) a party to this Agreement, or (ii) a parent of a party to this
Agreement."

                             AMENDMENTS AND WAIVERS

This Agreement may be amended or modified only by a written document signed by
the authorized representative of the party against whom enforcement is sought.
No course of dealing or failure of either party to strictly enforce any term,
right or condition of this Agreement shall be construed as a general waiver or
relinquishment of such term, right or condition. Waiver by either party of any
default shall not be deemed a waiver of any other default.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       3
<PAGE>   5
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

                                   ASSIGNMENT

Neither party hereto may assign, subcontract or otherwise transfer it's rights
or obligations under this Agreement except with the prior written consent of the
other party hereto, which consent will not be unreasonably withheld; provided,
however, Buyer will have the right to assign this Agreement to any present or
future AFFILIATE, SUBSIDIARY OR PARENT CORPORATION of the Buyer, without
securing the consent of Seller and may grant to any such assignee the same
rights and privileges Buyer enjoys hereunder. Any attempted assignment not
assented to in the manner prescribed herein, except an assignment confined
solely to money due or to become due, will be void. It is expressly agreed that
any assignment of money will be void if (a) Seller fails to give Buyer at least
thirty (30) days prior written notice thereof, or (b) such assignment imposes or
attempts to impose upon Buyer additional costs or obligations in addition to the
payment of such money or (c) denies, alters or attempts to alter any of Buyer's
rights.

                                   BAR-CODING

Seller and/or its OEM supplier is committed to work with Buyer to incorporate
barcoding of equipment and shipping containers and packages, as a standard
requirement for doing business with Buyer. Seller and/or its OEM supplier shall
adhere to the guidelines and specifications set forth by the Telecommunications
Industry Forum (TCIF), tailored by Buyer, as industry standards are established
through the TCIF for the expanded application of bar-coding.

                               BREACH OF AGREEMENT

In the event Seller is in breach or default of any term, condition or covenant
of this Agreement, and said breach or default continues for a period of ten (10)
days after the giving of written notice thereof, then, in addition to all other
rights and remedies available at law or in equity, Buyer will have the right to
cancel this Agreement.

                          CANCELLATION AND TERMINATION

1.   Cancellation for Default:

     a.   If Seller is in material default of any of its obligations under this
          Agreement or applicable Orders and such default continues for ten (10)
          days after written notice thereof is given by Buyer, then in addition
          to all other rights and remedies, at law or in equity, Buyer may
          cancel this Agreement and/or any Orders which may be affected by such
          default without any obligation or liability on the part of Buyer
          whatsoever.

     b.   Notwithstanding this paragraph "1", additional provisions for
          Cancellation of Orders hereunder are set forth in this Agreement.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       4
<PAGE>   6
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     c.   Buyer shall have the right to retain or return any Material already
          received and accepted; provided, however, if Buyer elects to return
          any Material, Seller shall reimburse Buyer the cost of shipping any
          returned Material and amounts, if any, previously paid by Buyer for
          such Material. Seller shall bear all expenses for removal and return
          of such Materials.

2.   Cancellation and Termination of Orders:

     a.   Cancellation:

          If Buyer cancels any Order or rejects any Materials pursuant to any
          provision of this Agreement or applicable Laws and Regulations, Seller
          shall, at Buyer's request, but at its expense, promptly remove the
          affected Materials from Buyer's site, restore Buyer's site to its
          original condition, refund to Buyer any amounts previously paid by
          Buyer for such Materials and reimburse Buyer for any costs Buyer
          occurred to remove and return such Materials. Upon removal and
          restoration of the Material and Buyer's receipt of any such
          reimbursement and refund, title to any such Materials which had
          previously passed to Buyer shall revert to Seller.

     b.   Termination:

          Materials/Services: Buyer may at any time terminate any Order in whole
          or in part upon written notice to Seller. In such event, Seller shall
          be entitled to reasonable Termination charges consisting of its actual
          and direct costs incurred to provide the Materials and Services
          ordered by Buyer but no more than a percentage of the work performed
          or Materials delivered prior to Termination, minus salvage or resale
          value of the work terminated. If requested, Seller agrees to
          substantiate such costs with proof satisfactory to Buyer. In no event
          shall the Termination charges on any Order hereunder exceed the Order
          price. No Termination charges shall apply to Materials not specially
          manufactured for Buyer pursuant to any Order which is terminated at
          least thirty (30) days prior to the required delivery date. Buyer
          shall not be responsible for any work performed nor for any costs
          incurred by Seller, Seller's Sellers, or Seller's subcontractors after
          Seller has received the notice of Termination. After the receipt of
          Buyer's payment for any such terminated Services, Seller shall deliver
          the physical embodiments, if any, of such Services which have been
          completed up to the date of Buyer's Termination. The foregoing
          Termination charges state the entire liability of Buyer for
          Termination for convenience by Buyer of any Order hereunder.

3.   Partial Cancellation and Termination:

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       5
<PAGE>   7
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     Where a provision of this Agreement or the applicable Laws and Regulations
     permit Buyer to Terminate or Cancel an Order, such termination or
     cancellation may, at Buyer's option, be either complete or partial. In the
     case of a partial Termination or Cancellation Buyer may, at its option,
     accept a portion of the Materials or Services covered by an Order and pay
     Seller for such Materials or Services at the unit prices set forth in such
     Order. The right to cancel an Order shall also include the right to cancel
     any other related Order.

                             CHANGES AND SUSPENSIONS

a)   Buyer may give notice to Seller at any time before complete delivery is
     made under any Order, or make changes within the general scope of such
     Order, including changes to quantities, drawings, designs or
     specifications. In addition, Buyer may, by notice to Seller, suspend, in
     whole or in part, the delivery of Materials and the performance of
     Services. If Buyer directs any such

b)   change or suspension, the parties shall agree upon any necessary
     adjustments in prices or dates and Buyer shall issue a revised Order
     reflecting such adjustments.

c)   Seller and/or its OEM supplier may not, without Buyer's prior written
     consent, make any changes whatsoever with respect to the Materials or
     Services specified in any Order.

                                   COMPLAINTS

Buyer reserves the right to notify Seller in cases where Buyer has identified
current or potential problems or service area concerning the operation,
maintenance, engineering, installation or design of Material furnished
hereunder. Whenever Buyer exercises such right, Seller and/or its OEM supplier
agrees to:

(a)  Accept such notice (hereinafter referred to as an "Engineering Complaint")
     and handle it in accordance with Bell Communications Research, Inc.
     ("Bellcore") Generic Requirements GR-230-CORE entitled "Generic
     Requirements for Engineering Complaints".

(b)  Acknowledge receipt of such Engineering Complaint and advise Buyer of
     Seller's proposed organization responsible for resolving it within ten (10)
     working days of Seller's receipt thereof.

(c)  Resolve such Engineering Complaints within ninety (90) days calendar days
     of the date of Buyer's notice, unless the parties mutually agree upon a
     later date. If unable to resolve an Engineering Complaint within said
     ninety (90)-day period, Seller will issue an "interim report" as defined in
     GR-230-CORE. Any revisions, amendments, and or successors to GR-230-CORE
     will become effective and thereafter applicable under this

                             PROPRIETARY INFORMATION

    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       6
<PAGE>   8
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     Agreement thirty (30) days after such revision is released by Buyer to
     Seller. Buyer and Seller will attempt to negotiate a resolution to any
     objections of said revisions by Seller.

(d)  Furnish to Buyer a monthly report of the status of open Engineering
     Complaints, in a mutually agreed upon medium, together with a proposed
     schedule for their resolution.

(e)  Notify Buyer in writing when an Engineering Complaint has been resolved.

                              COMPLIANCE WITH LAWS

Seller and/or its OEM supplier shall comply with the provisions of the Fair
Labor Standards Act, the Occupational Safety and Health Act and all other
applicable federal, state, county and local laws, ordinances, regulations and
codes, including, but not limited to, the procurement of permits, certificates,
approvals, inspections and licenses when needed, in the performance of this
Agreement. Seller and/or its OEM supplier further agrees, during the term
hereof, to comply with all applicable Executive and Federal regulations as set
forth in "Executive Orders and Associated Regulations", a copy of which is
attached hereto as Exhibit A, and by this reference made a part hereof. Seller
and/or its OEM supplier shall defend, indemnify and hold Buyer harmless from and
against any loss, damage, liability or expenses (including attorneys' fees and
court costs) that may be sustained by reason of Seller's failure to comply
herewith.

                              CONFLICT OF INTEREST

Seller represents and warrants that no officer, director, employee or agent of
Buyer has been or will be employed, retained or paid a fee, or otherwise has
received or will receive any personal compensation or consideration, by or from
Seller or any of Seller's officers, directors, employees or agents in connection
with the obtaining, arranging or negotiation of this Agreement or other
documents or agreements entered into or executed in connection herewith.

                             CONTINUING AVAILABILITY

a)   Seller and/or its OEM supplier agrees to offer to sell to Buyer for a
     period of ten (10) years after the Termination, Cancellation or expiration
     date of this Agreement, functionally equivalent additions/modifications,
     maintenance, replacement, and technical support services.

b)   If Seller fails or is unable to supply such parts or obtain another source
     of supply for Buyer, then such inability shall be considered noncompliance
     with this Section and, in addition to whatever other rights and remedies
     Buyer may have at law or in equity, Seller shall be obligated to provide
     Buyer, without obligation or charge, the "technical information" or any
     other rights required so that Buyer can have manufactured or can obtain
     such parts from other sources.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       7
<PAGE>   9
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

c)   The "technical information" includes, by example and not by way of
     limitation:

     1)   manufacturing drawings and Specifications of raw materials and
          components comprising such parts;

     2)   manufacturing drawings and Specifications covering special tooling and
          the operation thereof,

     3)   a detailed list of all commercially available parts and components
          purchased by Seller, disclosing the part number, name and location of
          the supplier and price lists for the purchase thereof.

d)   Seller shall provide support for System Software or System Software
     Features provided under this Agreement. In the event Seller refuses to
     provide support then Seller shall grant to Buyer a non-exclusive license,
     without charge, to use such System Software programs, System Software
     documentation and/or System Software tools and other technical information
     as may be required for the purpose of so maintaining the System Software
     and to provide for network compatibility.

e)   Seller shall provide Buyer advance written notification no later than two
     (2) years prior to the discontinuance of the manufacture or the provision
     of any Material hereunder.

                                      CURE

Buyer will not be deemed to be in default under any of the terms of this
Agreement, and Seller may not seek or attempt to enforce any remedy for any
claimed default, unless Buyer fails to cure or correct same within ten (10) days
following receipt of written notice thereof from Seller.

                              DISASTER AVAILABILITY

If any Material are rendered inoperative as a result of a Force Majeure
emergency, Seller shall make all reasonable efforts to supply or help locate
backup or replacement Material for Buyer's use. To the extent reasonable, Seller
agrees to waive any delivery lead time requirements and to the extent permitted
by law make replacement Material available from the facility currently producing
such Material or from inventory. The price for any replacement Material will be
at the current price and cost of expedited shipment. Buyer shall retain the
right to accept or reject any offer by Seller to supply any replacement
Material.

                        ELECTRONIC DATA INTERCHANGE (EDI)

Each party hereto may electronically transmit to or receive Orders,
acknowledgments, invoicing documents or other documents mutually agreed to by
Buyer and Seller, pursuant an EDI Agreement. The parties agree that Data
mechanically stored by either party in the course of

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       8
<PAGE>   10
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

business shall constitute acceptable documentation of the contents of the Data
electronically transmitted by originating party.

                                ENTIRE AGREEMENT

1. Acceptance of this Agreement with respect to the subject matter to purchase
by acknowledgment, shipment or other performance will be unqualified,
unconditional and subject and expressly limited to the terms and conditions of
this Agreement. All previous offers by Seller are hereby rejected and Buyer will
not be bound by terms additional to or different from those contained herein
that may appear in Seller's quotation, acknowledgment, invoice or in any other
communication from Seller, unless such terms are expressly agreed to in a
written instrument signed by Buyer. Acceptance of MATERIAL or Services, payment
or any inaction by Buyer will not constitute Buyer's consent to or acceptance of
any such additional or different terms, not will estimates furnished by Buyer
constitute commitments. The provisions of this Agreement supersede all prior
oral and written quotations, communications, agreements and understandings of
the parties, if any, with respect to the subject matter hereof.

2.   The terms contained in this Agreement, and any Orders, including all
     exhibits and subordinate documents attached to or referenced in the
     Agreement or any Orders, will constitute the entire agreement between
     Seller and Buyer with regard to the subject matter hereof and supersede all
     prior oral and written communications, agreements and understandings of the
     parties, if any, with respect hereto. This Agreement may not be modified
     except by a written instrument signed on behalf of both parties by the
     representatives who sign this Agreement or their successors in title and
     authority.

If either representative is no longer employed by Buyer/Seller or has been
demoted, or if the approval level no longer exists, a manager at a level equal
to or exceeding the original level must execute revisions to this Agreement.

                                  FORCE MAJEURE

Neither party hereto will be held responsible for any delay or failure in
performance of any part of this Agreement to the extent that such delay or
failure is caused by fire, flood, explosion, war, strike, embargo, government
requirement, civil or military authorities, Act of God or by the public enemy,
acts or omissions of carriers, or any other cause beyond the control of Seller
or Buyer. If any force majeure condition occurs, the party delayed or unable to
perform will give immediate notice thereof to the other party and the party
affected by the other's inability to perform may elect to:

     (a)  Terminate this Agreement or any Order or part of either as to MATERIAL
          not already shipped or services not already performed.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       9
<PAGE>   11
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     (b)  Suspend this Agreement for the duration of the force majeure
          condition, buy or sell elsewhere MATERIAL to be bought or sold
          hereunder, and deduct from any commitment the quantity bought or sold
          or for which such commitments have been made elsewhere.

     (c)  Resume performance hereunder once the force majeure condition ceases
          with an option in the affected party to extend the term of this
          Agreement up to the length of time the force majeure condition
          endured.

Unless written notice to the contrary is given within thirty (30) days after
such affected party is notified of the force majeure condition, option (b) above
will be deemed selected.

                                  GOVERNING LAW

     a.   IF A DISPUTE INVOLVES SOLELY PACIFIC BELL OR AFFILIATES WITH THEIR
          PRINCIPAL PLACE OF BUSINESS IN CALIFORNIA, THE DISPUTE SHALL BE
          GOVERNED BY THE LAWS OF CALIFORNIA EXCLUSIVE OF ITS CHOICE OF LAWS
          PROVISIONS. IN ALL OTHER CASES, THE LAWS OF THE STATE OF MISSOURI
          SHALL APPLY EXCLUSIVE OF ITS CHOICE OF LAWS PROVISIONS.

     b.   THIS AGREEMENT SHALL BE CONSIDERED COMPLETED, ENTERED INTO, AND
          EXECUTED IN CALIFORNIA ON BEHALF OF PACIFIC, IN MISSOURI, ON BEHALF OF
          SWBT, AND WITH RESPECT TO AN AFFILIATE OTHER THAN PACIFIC OR SWBT, IN
          THE STATE IN WHICH THE AFFILIATE HAS ITS PRINCIPAL PLACE OF BUSINESS,
          WITHOUT REGARD TO ITS RULES REGARDING CONFLICTS OF LAW.

                         GOVERNMENT CONTRACT PROVISIONS

Orders containing a notation that the material is intended for use under
government Agreements shall be subject to the then current government provisions
referenced in or attached to such Orders.

                  HAZARDOUS MATERIALS AND REGULATED SUBSTANCES

A "Regulated Substance" as referenced in this clause is a generic term used to
describe all materials that are regulated by the federal or any state or local
government during transportation, handling and/or disposal.

This includes, but is not limited to, materials that are regulated as (a)
"hazardous materials" under the Hazardous Materials Act and the Control of
Radioactive Contamination of the Environment Law, Title 8 of the California
Administrative Code, Section 5194, pursuant to the

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       10
<PAGE>   12
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

Hazardous Substances Information and Training Act, (b) "chemical hazards" under
Occupational Safety and Health Administration (OSHA) standards, (c) "chemical
substances or mixtures" under the Toxic Substances Control Act, (d) "pesticides"
under the Federal Insecticide, Fungicide and Rodenticide Act, and (e) "hazardous
wastes" as defined or listed under the Resource Conservation and Recovery Act
and the Hazardous Waste Control Law.

     a.   Seller and/or its OEM supplier shall comply with all applicable
          federal, state and local laws, ordinances, codes, regulations and
          orders, including any notice requirements (individually and
          collectively "Laws and Regulations"), regarding any Material and
          Service ordered hereunder which involves the handling or use of
          Materials or materials which consist of or contain "hazardous
          materials" or "chemical hazards" or "chemical substances or mixtures"
          or "pesticides" or "hazardous wastes". Seller shall notify Buyer and
          provide to Buyer all necessary notification and other information
          (including but not limited to OSHA Material Safety Data Sheets) at
          least thirty (30) days before shipping such Regulated Substances to
          Buyer or commencing the performance of Services for Buyer involving
          the handling or use of Regulated Substances.

     b.   Notwithstanding any other provisions of this Agreement, Buyer shall
          have the right, but not the duty, to terminate without liability any
          Order for Materials or Services which involves the handling or use of
          Regulated Substances within thirty (30) days after such notification
          from Seller. Otherwise, Buyer and Seller shall cooperate concerning
          the acceptance by Buyer of such Regulated Substances. Seller shall
          mark all Materials and/or materials provided hereunder as Regulated
          Substances which are required by all applicable Laws and Regulations
          to be so marked, and shall provide assistance to Buyer of an advisory
          nature in the handling or use of Regulated Substances provided
          hereunder and the disposal of "hazardous wastes", as defined by
          applicable Laws and Regulations ("Hazardous Wastes"), resulting
          therefrom.

     c.   Regulated Substances and/or Hazardous Wastes provided or removed
          hereunder shall be transported by Seller in accordance with the
          requirements of the applicable Laws and Regulations, including, but
          not limited to, those of the Department of Transportation and
          California Highway Patrol, governing transportation of such Regulated
          Substances and/or Hazardous Wastes.

     d.   Seller and/or its OEM supplier shall provide Buyer with the same
          information pertaining to Materials and Services which involve the
          handling or use of Regulated Substances or Hazardous Wastes as Seller
          provides to Seller's employees or agents involved in the disposition
          or treatment of such Regulated Substances or Hazardous Wastes.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       11
<PAGE>   13
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     e.   Seller and/or its OEM supplier further agrees to defend indemnify and
          hold Buyer harmless from and against any damage, or expense (including
          attorneys' fees and court costs) sustained by Buyer because of
          Seller's noncompliance herewith.

                             INDEPENDENT CONTRACTOR

Seller hereby represents and warrants to Buyer that:

     a. Seller is engaged in an independent business and will perform all
obligations under this Agreement as an independent contractor and not as the
agent or employee of Buyer;

     b. Seller's personnel performing Services shall be considered solely the
employee personnel of Seller and not employees or agents of Buyer,

     c. Seller has and retains the right to exercise full control of and
supervision over the performance of the Services and full control over the
employment, direction, assignment, compensation, and discharge of all personnel
performing the Services;

     d. Seller is solely responsible for all matters relating to the payment of
compensation, including payment of premium pay for overtime, of all Seller's
personnel who perform Services. Seller will pay all employee compensation and
related taxes and benefits from its own accounts, without regard to any dispute
concerning Buyer's liability for payment to Seller under any invoice related to
any Service performed by Seller;

     e. Seller is solely responsible for all matters relating to compliance with
all employer obligations to withhold employee taxes, pay employee and employer
taxes, and file payroll tax returns and information returns under local, state,
and federal income tax laws, unemployment compensation insurance and state
disability insurance tax laws, and social security and Medicare tax laws, and
all other payroll tax laws or similar laws (all collectively hereinafter
referred to as "payroll tax obligations") with respect to all Seller personnel
providing Services.

     f. If any federal, state, or local authority including but not limited to
taxing authority may claim that Buyer or any subsidiary of Buyer is or may be
liable an account of any payroll, payroll tax, or benefit plan obligations,
including the payment of interest or penalties, with respect to any such Seller
personnel, then Seller shall:

          (1)  cooperate fully in Buyer's defense of such claim; and (2)
               discloses its income tax returns, payroll tax returns,
               information returns and transmittals, and associated payment
               deposits records, canceled checks and instruments, and other such
               documents reasonably necessary to enable Buyer to perfect its
               defense of such claims; and

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       12
<PAGE>   14
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

          (2)  Executes and deliver such powers of attorney or other consents as
               may be necessary to enable Buyer to obtain copies of such returns
               and other documents from the taxing and other authorities that
               are appropriate or helpful in order to prove compliance with tax
               and other legal requirements.

          (3)  indemnifies and holds Buyer harmless from any cost, loss damage
               or expense, including taxes as well as any interest or penalties;

     g. Seller is and will respond as the employer of all Seller personnel,
exclusive of Buyer, for purposes of any federal, state, or local taxes, benefits
and unemployment insurance law. Seller will indemnify and hold Buyer harmless
from any claim that Buyer's reserve account should be taxed to provide
unemployment compensation to any Seller personnel or former Seller personnel
based upon Services provided to Buyer under this Agreement;

     h. If any Seller personnel makes a claim for employee benefits under any
Buyer employee benefit plan or for workers' compensation against Buyer, then
Seller will indemnify and hold harmless Buyer from any such claim, including any
and all costs an expenses, including interest and penalties;

     i. Seller's employee benefit, plans and self-employed benefit plans will
credit Seller's personnel with all for time worked on Buyer assignments and all
compensation earned on Buyer assignments for plan participation purposes,
vesting purposes, and benefit accrual purposes, on the same basis as they credit
time worked on other assignments; and

     j. Seller will be responsible to its own acts and those of Seller's
personnel during the performance of Seller's obligations under this Agreement.

                                   INFORMATION

INFORMATION - BUYER'S

Any specifications, drawings, sketches, models, samples, tools, computer or
other apparatus programs, technical or business information or data, field
trials results and/or reports, written, oral or otherwise (all hereinafter
designated in this clause as "information") furnished to Seller under this
Agreement or in contemplation of this Agreement, shall remain Buyer's property.
All copies of such information, in written, graphic or other tangible form,
shall be returned to Buyer at Buyer's request. Unless such information was
previously know to Seller free of any obligation to keep it confidential, or has
been or is subsequently made public by Buyer or a third party, it shall be kept
confidential by Seller, shall be used only in performing under this Agreement,
and may not be used for other purposes except such terms as may be agreed upon
between Seller and Buyer in writing.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       13
<PAGE>   15
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

INFORMATION - SELLER'S

Any specifications, drawings, sketches, models, samples, tools, computer or
other apparatus programs, technical or business information or data, field
trials results and/or reports, written, oral or otherwise (all hereinafter
designated in this clause as "information") furnished to Buyer under this
Agreement or in contemplation of this Agreement, shall remain Seller's property.
No information furnished by Seller to Buyer hereunder or in contemplation hereof
shall be considered to be confidential or proprietary unless it is conspicuously
marked as such.

If Seller provides Buyer with any proprietary or confidential information which
is conspicuously marked as such, Buyer shall use the same degree of care to
prevent its disclosure to others as Buyer uses with respect to its own
proprietary or confidential information. Notwithstanding the preceding
sentences, no installation, operations, repair or maintenance information of
Seller which pertains to the Material and Services which are the subject of this
Agreement shall be considered to be proprietary or confidential, and Buyer may
disclose such information to others for the purpose of installing, operating,
repairing, and maintaining the Material for which it was initially furnished.

                                  INFRINGEMENT

1.   Seller and/or its OEM supplier agrees to indemnify and hold Buyer harmless
     from and against any loss, liability, damage or expense (including
     increased damages for willful infringement, punitive damages, attorneys'
     fees and court costs) that may result by reason of any infringement, or
     claim of infringement, of any trade secret, patent, trademark, copyright or
     other proprietary interest of any third party based on the normal use or
     installation of any Material, Software, Documentation, program or Services
     furnished to Buyer hereunder, except to the extent that such claim arises
     from Seller's compliance with Buyer's detailed instructions. Such exception
     will not, however, include:

     (a)  Merchandise available on the open market or the same as such
          merchandise.

     (b)  Items of Seller's origin, design or selection.

2.   Seller warrants that it has made reasonable independent investigation
(including obtaining legal opinions) to determine the legality of its right to
product and sell the Material/Equipment/Services provided herein.

3.   If an injunction or order is obtained against Buyer's use of any Material,
Software, Documentation, program or Service, or if in Seller's opinion any
Material, Software, Documentation, program or Service is likely to become the
subject of a claim of infringement, Seller will, at its expense:

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       14
<PAGE>   16
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     (a) Procure for Buyer the right to continue using the Material, Software,
     Documentation, Program or Service; or

     (b) After consultation with Buyer, replace or modify the Material,
     Software, Documentation, program or Service to make it a substantially
     similar, functionally equivalent, non-infringing Material, Software,
     Documentation, program or Service.

3.   If the Material, Software, Documentation, program or Service is purchased
     or licensed and neither (1) or (2) above is possible, Buyer may cancel the
     applicable Order and require Seller to remove such Material, Software,
     Documentation, program or Service from buyer's location and refund any
     charges paid therefor by Buyer.

4.   In no event will Buyer be liable to Seller for any charges after the date
     that Buyer no longer uses and Material, Software, Documentation, program or
     Service because of actual or claimed infringement.

6.   Each party hereto agrees to defend or settle, at its own expense, any
     action or suit against the other party hereto for which it is responsible
     under this clause. Each party further agrees to notify the other party
     promptly of any claim of infringement for which the other party is
     responsible hereunder and cooperate in every reasonable way to facilitate
     the defense thereof.

7.   In the event the Seller, after notification of any claim for which Seller
     is responsible, does not assume the defense of such action, Seller will
     reimburse buyer for all of its costs incurred in the defense of the claim,
     including, but not limited to attorneys' fees and interest on such Buyer's
     payment of said amounts from he date of Buyer's payments of said amounts.

                                    INSIGNIA

Upon Buyer's written request, Seller will affix certain of Buyer's trademarks,
trade names, insignia, symbols, decorative designs or evidences of Buyer's
inspection (hereafter collectively called "Insignia") to the MATERIAL furnished
hereunder. Such Insignia will not be affixed, used or otherwise displayed on or
in connection with the MATERIAL without Buyer's prior written approval.

The manner in which such Insignia will be affixed must be approved in writing by
Buyer. Seller agrees to remove all Insignia from MATERIAL rejected or not
purchased by Buyer prior to any sale, use or disposition thereof by Seller.
Seller further agrees to defend, indemnify and hold Buyer harmless from and
against any claim, loss, damage or expense (including attorneys' fees and court
costs) arising out of Seller's failure to do so.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       15
<PAGE>   17
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

This clause will in no way alter or modify Seller's obligations under the clause
entitled "USE OF INFORMATION".

                         INSTALLATION/CUTOVER ASSISTANCE

If requested by Buyer, Seller and/or its OEM supplier agrees to make available
at the installation site, without charge, a field engineer to render
installation and cutover assistance as required by Buyer for the initial
installation/cutover in each of Buyer's operating areas.

                                    INSURANCE

1. With respect to performance hereunder, and in addition to Seller's and/or its
OEM supplier's obligation to indemnify, Seller agrees to maintain, at all times
during the term of this Agreement, the following minimum insurance coverages and
limits and any additional insurance and/or bonds required by law:

     a.   Workers' Compensation insurance with benefits afforded under the laws
          of the state in which the Services are to be performed and Employers
          Liability insurance with minimum limits of $100,000 for Bodily
          Injury-each accident, $500,000 for Bodily Injury by disease-policy
          limits and $100,000 for Bodily Injury by disease-each employee.

     b.   Commercial General Liability insurance with minimum limits of:
          $2,000,000 General Aggregate limit; $1,000,000 each occurrence
          sub-limit for all bodily injury or property damage incurred in any one
          occurrence; $1,000,000 each occurrence sub-limit for Personal Injury
          and Advertising; $2,000,000 Products/Completed Operations Aggregate
          limit, with a $1,000,000 each occurrence sub-limit for
          Products/Completed Operations. Fire Legal Liability sub-limits of
          $300,000 are required for lease agreements.

     SBC will be named as an Additional Insured on the Commercial General
     Liability policy.

     c.   If use of a motor vehicle is required, Automobile Liability insurance
     with minimum limits of $1,000,000 combined single limits per occurrence for
     bodily injury and property damage, which coverage shall extend to all
     owned, hired and non-owed vehicles.

SBC requires that companies affording insurance coverage have a B+ VII or better
rating, as rated in the A.M. Best Key rating Guide for Property and Casualty
Insurance Companies.

2. A certificate of insurance stating the types of insurance and policy limits
provided the Seller must be received prior to commencement of any work. If a
certificate is not received, Seller hereby authorizes Buyer, and Buyer may, but
is not required to, obtain insurance on behalf

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       16
<PAGE>   18
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

of Seller as specified herein. Buyer will either invoice Seller for the costs
incurred to so acquire insurance or will reduce by an applicable amount any
amount owed to Seller.

3.   The cancellation clause on the certificate of insurance will be amended to
     read as follows:

     "SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED OR MATERIALLY
     CHANGED, THE ISSUING COMPANY WILL MAIL 30 DAYS WRITTEN NOTICE TO THE
     CERTIFICATE HOLDER."

The Seller shall also require all subcontractors who may enter upon the work
site to maintain the same insurance requirements listed above. Additional
insurance responsibilities and obligations of OEM's are contained in Exhibit C
attached hereto and incorporated herein by this reference.

                                    LIABILITY

1.   Seller and/or its OEM supplier shall indemnify, defend and hold harmless
     Buyer (including its agents, employees, officers, and directors) from and
     against any and all liability, loss, damage, court cost, attorneys' fees or
     other expense of any kind which arises out of any claim, demand, suit for
     damages, injunction or other relief, on account of (a) injury to or death
     of any person, (b) damage to any property, including theft , (c) public
     charges and penalties, or (d) any lien, caused by, resulting from or
     attributable to the Materials or Services or the acts or omissions of the
     Seller (including any of its employees, agents, or subcontractors but
     excepting the active negligence or willful misconduct solely of Buyer or
     its employees) in furnishing the Materials or Services hereunder. This
     indemnity shall survive the delivery, inspection and acceptance of the
     Materials or Services hereunder.

2.   Seller agrees to defend Buyer, at no cost or expense to Buyer, against any
such liability, claim, demand, suit or legal proceeding. Buyer agrees to notify
Seller within a reasonable time of any written claims or demands against Buyer
for which Seller is responsible under this clause.

3.   Seller agrees not to implead or bring any action against Buyer or Buyer's
employees based on any claim by any person for personal injury or death that
occurs in the course or scope of employment of such person by Seller and that
arises out of the Material or Services furnished under this Agreement.

                                    LICENSES

No licenses, express or implied, under any patents are granted by Buyer to
Seller under this Agreement.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       17
<PAGE>   19
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

                                   LICENSE FEE

Except as otherwise specified in the applicable Order, the license fee for
Standard Software is included in the purchase price of the Material.

                                  LICENSE TERM

The perpetual license or license term shall commence on the date when Buyer
accepts the Software. Unless the Order is sooner Canceled or Terminated as
provided herein, a license shall continue for the initial license term specified
in the applicable Order and thereafter as renewed until the Order is Canceled or
Terminated as provided herein.

                             LIMITATION OF LIABILITY

SBC will not be liable for consequential, incidental, special, or punitive
damages, or for loss of revenue or profit in connection with the performance or
failure to perform this Agreement regardless whether such liability arises from
breach of contract, tort, or any other theory of liability.

                              MATERIAL RELIABILITY

Seller and/or its OEM supplier commits to test all Material, including Original
Equipment Manufacture (OEM) Material prior to release to Buyer. Such testing
shall include complete regression and interaction testing of all Software and
patches. Seller commits to release Material without any critical or major
issues/faults. Material reliability is demonstrated through zero quality alerts
and requests for material disposition.

                                  MODIFICATION

a)   Buyer shall have the absolute right to make any alterations, variations,
     modifications, additions or improvements to the source code for Software
     licensed hereunder at its own risk and expense or Agreement with third
     parties for such modifications and such modifications by third parties
     shall be subject to the nondisclosure provisions of this Agreement. The
     conditions and charges, if any, for Seller support of such modifications
     shall be subject to agreement between Buyer and Seller.

Any unmodified portion of such modified Software shall be subject to the same
conditions and limitations to have been designated herein for original Software
and Documentation. Title to any such addition or modifications shall remain with
Buyer.

b)   Buyer may merge the Software with other computer programs to generate a
     shared program library. After Cancellation or Termination of the license
     for the Software, such Software shall be removed from such shared program
     library and shall be destroyed.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       18
<PAGE>   20
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

c)   Any Software modification made by Seller at the request and expense of
     Buyer shall be governed by the provisions of a separate custom software
     development agreement between the parties.

                  MBE/WBE-DVBE PARTICIPATION PLANS AND REPORTS

Seller commits to goals for the participation of M/WBE and DVBE firms (as
defined in the Section entitled "MBE/WBE/DVBE Cancellation Clause) as follows:
15% annual MBE participation; 5% annual WBE participation; and 1.5% annual DVBE
participation. These goals apply to all annual expenditures by any entity
pursuant to this Agreement with Seller.

Attached hereto and incorporated herein as Exhibit A1 is Seller's completed
Participation Plan outlining its M/WBE-DVBE goals and specific and detailed
plans to achieve those goals. Seller will submit an updated Participation Plan
annually by the first week in January. Seller will submit M/WBE-DVBE Results
Reports quarterly by the end of the first week following the close of each
quarter, using the form attached hereto and incorporated herein as Exhibit B1.
Participation Plans and Results Reports will be submitted to the Prime Supplier
Results Manager.

         MBE/WBE/DVBE CANCELLATION CLAUSE

     a.  Seller agrees that falsification or misrepresentation of, or failure to
report a disqualifying change in, the MBE/WBE/DVBE status of Seller or any
subcontractor utilized by Seller; or Seller's failure to comply in good faith
with any MBE/WBE/DVBE utilization goals established by Seller; or Seller's
failure to cooperate in any investigation conducted by SBC, or by SBC's agent,
to determine Seller's compliance with this section, will constitute a material
breach of this Agreement. In the event of any such breach, SBC may, at its
option, cancel ("Cancel") this Agreement upon 20 days notice. Seller
acknowledges and agrees that SBC's right to Cancel is absolute and
unconditional, and SBC shall not be subject to liability, nor shall Seller have
any right to suit for damages as a result of such cancellation.

     b.  For purchases under this Agreement by Pacific Bell, Pacific Bell
Directory, Pacific Bell Mobile Services, Pacific Bell Information Services,
Pacific Bell Communications, and any other entity operating principally in
California (collectively "California Affiliates"), Minority and Women Business
Enterprises (MBEs/WBEs) are defined as businesses which satisfy the requirements
of paragraph c. below and are certified as MBEs/WBEs by the California Public
Utilities Commission Clearinghouse ("CPUC-certified").

     For purchases under this Agreement by any entity that is not a California
Affiliate, MBEs/WBEs are defined as businesses which satisfy the requirements of
paragraph c. below and are either CPUC-certified or are certified as MBEs/VBEs
by a certifying agency recognized by SBC.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       19
<PAGE>   21
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     c.  MBEs/WBEs must be at least 51% owned by a minority individual or group
or by one or more women (for publicly-held businesses, at least 51% of the stock
must be owned by one or more of those individuals), and the MBEs/WBEs'
management and daily business operations must be controlled by one or more of
those individuals, and these individuals must be either U.S. citizens or legal
aliens with permanent residence status. For the purpose of this definition,
minority group members include male or female Asian Americans, Black Americans,
Filipino Americans, Hispanic Americans, Native Americans (i.e., American
Indians, Eskimos, Aleuts and Native Hawaiians), Polynesian Americans, and
multi-ethnic (i.e., any combination of MBEs and WBEs where no one specific group
has a 51% ownership and control of the business, but when aggregated, the
ownership and control combination meets or exceeds the 51% rule). "Control" in
this context means exercising the power to make policy decisions. "Operate" in
this context means actively involved in the day-to-day management of the
business and not merely acting as officers or directors.

d. For purchases under this Agreement by California Affiliates, Disabled Veteran
Business Enterprises (DVBEs) are defined as business concerns that satisfy the
requirements of paragraph e. below and are certified as DVBEs by the California
State Office of Small and Minority Business (OSMB). The DVBE must be a resident
of the State of California, and must satisfy the requirements of paragraph e.
below.

     For purchases under this Agreement by any entity that is not a California
Affiliate, DVBEs are defined as any business concern that satisfies the
requirements of paragraph e. below and is either a defined DVBE for purchases by
California Affiliates, or is certified as a DVBE by a certifying agency
recognized by SBC.

     e. The DVBE must be (1) a sole proprietorship at least 51% owned by one or
more disabled veterans; or (2) a publicly-owned business in which at least 51%
of the stock is owned by one or more disabled veterans; or (3) a subsidiary
which is wholly owned by a parent corporation, but only if at least 51% of the
voting stock of the parent corporation is owned by one or more disabled
veterans; or (4) a joint venture in which at least 51% of the joint venture's
management and control and earnings are held by one or more disabled veterans.
In each case, the management and control of the daily business operations must
be by one or more disabled veterans. A disabled veteran is a veteran of the
military, naval or air service of the United States with a service-connected
disability. "Management and control" in this context means exercising the power
to make policy decisions and actively involved in the day-to-day management of
the business and not merely acting as officers or directors.

                           NON-EXCLUSIVE MARKET RIGHTS

It is expressly understood and agreed that this Agreement does not grant Seller
an exclusive privilege to provide to Buyer any or all Material and Services of
the type described in this Agreement nor requires the purchase of any products
or services from Seller by Buyer. It is,

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       20
<PAGE>   22
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

therefore, understood that Buyer may Contract with other manufactures and
suppliers for the procurement or trial of comparable products and services and
that Buyer may itself perform the Services described herein.

                                   NON-WAIVER

No course of dealing or failure of either party to strictly enforce any term,
right or condition of this Agreement will be construed as a waiver of such term,
right or condition. The waiver by Buyer in one instance of any default of Seller
hereunder will not be deemed a waiver of any other default of Seller. The
express provision herein for certain rights and remedies of Buyer are in
addition to any other legal and equitable rights and remedies to which Buyer
would otherwise be entitled.

                                     NOTICES

Except as otherwise provided in this Agreement, or applicable Order, all notices
or other communications hereunder shall be deemed to have been duly given when
made in writing and either 1) delivered in person, 2) delivered to an agent,
such as an overnight or similar delivery service, or 3) deposited in the United
States Mail, postage prepaid, or 4) facsimile transmission, and addressed as
follows:

To:   (World Wide Technology, Inc.)                To:      (Affiliate Name)
      (127 Weldon Parkway)                         (Affiliate street address)
      (St.  Louis, Missouri 63043-3101)            (Affiliate city, state, Zip)
      Attn.: Mark Catalano (314) 919-1501

                                                   (Attn:____________________

To:   (Southwestern Bell Telephone Company)
      (530 McCullough rm.  2-MO2)
      (San Antonio, Texas 78215)
      Attn.: Tony Riojas (210) 886-3370

The address to which notices or communications may be given by either party may
be changed by written notice given by such party to the other pursuant to this
paragraph entitled "Notices".

                              ORDER ACKNOWLEDGMENT

a. Seller agrees to send to Buyer's Local Purchasing Organization ("LPO")
identified on the Order two (2) copies of an Acknowledgment for all Material to
be furnished hereunder at least thirty (30) days prior to the scheduled shipment
date thereof. Such Acknowledgment will identify:

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       21
<PAGE>   23
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     1)   All Material to be provided with the appropriate Continuing Property
          Record ("CPR") number thereof.

     2)   All non-hardwired Material (plug-ins) listed thereon with the Common
          Language Equipment Identifier ("CLEI") coding, item number, unit
          description, unit quantity and price.

b.   All hardwired equipment, plug-ins, tools and test sets contained in kits or
     assemblies must be listed separately with appropriate CPR numbers and/or
     CLEI codes, unit quantities and unit prices. The only items in kits and
     assemblies that do not need to be listed separately are miscellaneous minor
     items not coded by Bellcore. The unit description, CPR number and CLEI code
     must exit in Bellcore's National Property Record Catalog ("NPRC') and
     Equipment Catalog System ("ECS") data bases, and the item numbers and
     descriptions on Seller's invoices must match the item numbers and
     description on the acknowledgment.

                              PLANT AND WORK RULES

Each party's employees and agents will, while on the premises of the other or at
any other location while performing SERVICES under this agreement for SWBT,
comply with all plant rules and regulations, including, but not limited to, the
section of SBC Communications' "Code of Business Conduct," a copy of which is
available upon request, which prohibits the possession of any weapon or
implement which might be used as a weapon on SWBT properties. In addition, the
parties agree that, where required by government regulations, it will submit
satisfactory clearance from the U.S. Department of Defense and/or other federal
authorities concerned.

                                    PUBLICITY

Seller agrees not to advertise, or otherwise make known to others, any
information regarding this Agreement. Seller further agrees not to use in any
advertising or sales promotion, press releases or other publicity matters any
endorsements, direct or indirect quotes, or pictures implying endorsement by
Buyer or any of its employees without Buyer's prior written approval. Seller
will submit to Buyer for written approval, prior to publication, all publicity
matters that mention or display Buyer's name and/or marks or contain language
from which a connection to said name and/or marks may be inferred or implied.

                                 PURCHASE ORDERS

a. Purchase Orders submitted by Buyer against this Agreement will be placed on
Buyer's Purchase Order form, a copy of which is attached thereto as Exhibit B,
and by this reference made a part hereof. The typed or written provisions on
Buyer's Orders will be incorporated into

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       22
<PAGE>   24
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

this Agreement, but printed provisions on the reverse side thereof will be
deemed deleted. Such Orders will specify:

     1)   A description of the Material, including any numerical/alphabetical
          identification referenced in the price list attached hereto (Exhibit
          B). 2) The requested delivery date. 3) The applicable price(s). 4) The
          location to which the Material is to be shipped. 5) The location to
          which invoices are to be rendered for payment. 6) Buyer's Order
          number.

b. Orders will be deemed accepted by Seller unless written notice to the
contrary is received by Buyer within thirty (30) days from Seller's receipt
thereof. Such notice will be given to Buyer in care of the address indicated on
the acknowledgment copy of the Order.

c. Inquiries relating to Orders, information requests, etc. should be directed
as indicted in the subordinate contracts.

                                QUALITY ASSURANCE

1.   Seller and/or its OEM supplier represents and warrants that it is
     registered to ANSI/ASQC Q9001 or Q9002 (1994).

2.   Seller and/or its OEM supplier hereby agrees that HARDWARE and/or SOFTWARE
     furnished hereunder by Seller has undergone or has been subject to: a.)
     Seller's quality control activities and procedures, including any
     performance measurements, testing, quality process reviews or inspections
     to implement such procedures; and b.) Will meet the following requirements
     of the Bellcore documents and subsequent issues thereof listed below:

          o    TR-NWT-000179 - "Quality System Generic Requirements for
               Software"

          o    GR-282-CORE - "Software Reliability and Quality Acceptance
               Criteria (SRQAC)"

          o    GR-929-CORE - "Reliability and Quality Measurements for
               Telecommunications Systems (RQMS)"

          o    GR- 1252-CORE - "Quality System Generic Requirements for
               Hardware"

          o    GR-1315-CORE - "In-Process Quality Metrics Generic Requirements
               (IPQM)"

          o    TR-NWT-001359 - "Supplier Data Basic Generic Requirements"

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       23
<PAGE>   25
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

               Note: Bellcore documents may be obtained by contacting Bellcore
               at: Bellcore, 8 Corporate Place, Room 3A 184, Piscataway, NJ
               08854, or by calling: (800) 521-2673 or (908) 699-5800.

     c. Quality Assurance Examination and/or Process Surveillance by Buyer or
     its representative ("Buyer's Agent"). Such Quality Assurance Examination
     and/or Process Surveillance may be conducted in accordance with the most
     current issue of Quality Program Specification ("QPS") No. 88.010,
     Surveillance Program for Software-General, a copy of which is attached
     hereto as Exhibit D, and by this reference made a part hereof.

3.   Seller further agrees that it will at no additional charge:

     a. Notify Buyer or Buyer's Agent when HARDWARE and/or SOFTWARE is ready for
     examination and give Buyer or Buyer's Agent reasonable opportunity to
     examine same at any time prior to the scheduled shipment date thereof.

     b. Provide Buyer or Buyer's Agent with copies of Seller's Quality Manual,
     current inspection procedures and product specifications for the HARDWARE
     and/or SOFTWARE furnished hereunder.

     c. Maintain and make available to Buyer or Buyer's Agent the data including
     all information and reports about Seller's quality control procedures which
     demonstrate that the HARDWARE and/or SOFTWARE meets the specified quality
     and reliability requirements.

     d. Provide Buyer or Buyer's Agent, at no charge, with access to Seller's
     test equipment, facilities, data and specifications, assistance from
     Seller's personnel and sufficient working space to enable Buyer or Buyer's
     Agent to perform said Quality Assurance Examination and/or Process
     Surveillance and/or a review of Seller's total quality program at Seller's
     facilities.

     e. As reasonably requested by Buyer, Supplier shall support SBC
     Communications, Inc. on-going Supplier Quality Programs at a minimum of but
     not limited to the following:

          (1)  Quality Partner Program (QPP)

          QPP is an ongoing Assessment, Feedback, and Recognition Program. The
          Supplier submits a completed copy of the QPP Application and
          Self-Assessment to their Agreement Manager for initial evaluation and
          rating, and then supplies an annual update and progress report to
          Buyer, by a date to be agree upon by Buyer and Seller.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       24
<PAGE>   26
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

          (2)  Supplier Performance Feedback Process (Report Cards)

          This process provides for the periodic measurement of the Supplier's
          performance in relation to HARDWARE/SOFTWARE and/or Service Quality,
          Cost Effectiveness, On-Time Delivery, and Support Satisfaction.

          (3)  Joint Quality Initiatives (JQI)

               The purpose of the JQI program is to establish partnering
          arrangements with Buyer's Suppliers in order to identify quality
          improvement opportunities that result in documented savings. The
          details of the JQI, amount of savings, and the time required to
          achieve the proposed savings is a matter to be determined between
          Buyer and the Supplier. Specifically the proposed JQI shall identify
          the particular process targeted for savings, the expected savings
          resulting from the JQI, the time required to achieve the desired
          savings, and a detailed implementation plan. Additionally, key
          contacts should be identified for each JQI and detailed status reports
          should be provided to the designated Agreement Manager at the Buyer on
          no less than a monthly basis. If requested, the supplier shall provide
          in writing at least one JQI to their Agreement Manager. The proposed
          JQI shall include the particular elements outlined in the paragraph
          immediately above.

4. Nothing contained herein will diminish Seller's obligation to deliver
defect-free material which meets Specifications nor affect Buyer's rights
hereunder, under any warranty, or under other provisions of this Agreement. The
purchase of any HARDWARE/SOFTWARE hereunder is subject to Buyer's inspection and
acceptance after delivery thereof.

                               RECORDS AND AUDITS

Seller agrees that it will:

a)   Maintain complete and accurate records of all amounts billable to and
     payments made by Buyer hereunder in accordance with generally accepted
     accounting principles and practices, uniformly and consistently applied in
     a format that will permit audit; b) Retain such records and reasonable
     billing detail for a period of three (3) years from the date of final
     payment for Materials and Services; c) Provide reasonable supporting
     documentation to Buyer concerning any disputed invoice amount within thirty
     (30) calendar days after receipt of written notification of such dispute;
     and d) Permit Buyer and its authorized representatives to inspect and audit
     during normal business hours the charges invoiced to Buyer. Should Buyer
     request an audit, Seller will make available any pertinent records and
     files to Buyer during normal business hours.

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       25

<PAGE>   27
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

                                  REGISTRATION

When Material furnished under this Agreement is subject to Part 68 of the
Federal Communications Commission's Rules and Regulations ("FCC Rules and
Regulations") as may from time to time be amended, Seller and/or its OEM
supplier warrants that such Material is registered under and complies with Part
68 of such FCC Rules and Regulations including, but not limited to, all labeling
and customer instruction requirements. Seller agrees to indemnify and hold Buyer
harmless from and against any liability, claims or demands (including costs of
defense and attorneys' fees) that may be made because of Seller's noncompliance
with Part 68 of the FCC Rules and Regulations. Seller agrees, at its expense, to
defend Buyer, at Buyer's request, against such liability, claim or demand,
provided, however, that Seller shall (1) keep Buyer fully informed as to the
progress of such defense, and (2) afford Buyer, at its own expense, an
opportunity to participate on an equal basis with Seller in such defense.

                                  RELEASES VOID

Neither party will require waivers or releases of any personal rights from
representatives of the other in connection with visits to each other's
respective premises, and no such releases or waivers will be pleaded by Seller,
Buyer or third persons in any action or proceeding.

                                  SEVERABILITY

If any provision or any part of provision of this Agreement shall be invalid or
unenforceable, such invalidity or non-enforceability shall not invalidate or
render unenforceable any other portion of this Agreement. The entire Agreement
will be construed as if it did not contain the particular invalid or
unenforceable provision(s) and the rights and obligations of the Seller and
Buyer will be construed and enforced accordingly.

                              SOFTWARE RISK OF LOSS

a)   If Software is lost, damaged or made invalid during shipment prior to
     Acceptance, or if it is lost or damaged at any time due to the negligence
     or willful misconduct of Seller or its Contractors or agents, Seller shall
     promptly replace it at no additional charge to Buyer.

b)   Except as otherwise provided in Section a), above, if the Software is lost
     or damaged at any time while in possession of Buyer after acceptance,
     Seller shall promptly replace it and Buyer shall pay only the cost of
     reproduction and shipment or delivery.

                             SURVIVAL OF OBLIGATIONS

Seller's and/or its OEM supplier's obligations under this Agreement which by
their nature would continue beyond the termination, cancellation or expiration
hereof, including, by way of illustration only and not limitation, those in the
clauses entitled "COMPLIANCE WITH

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       26
<PAGE>   28
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

LAWS", "INFRINGEMENT", "LIABILITY", "PUBLICITY", "RELEASES VOID",
"SEVERABILITY", "USE OF INFORMATION" and "WARRANTY", will survive the
termination, cancellation or expiration of this Agreement.

                                      TAXES

1. Seller will invoice Buyer the amount of any federal excise taxes or state or
local sales taxes imposed upon the sale of Material as separate items, if
applicable, listing the taxing jurisdiction imposing the tax. Installation or
labor charges must be separately stated. Buyer agrees to pay all applicable
taxes to Seller which are stated on and at the time the Material invoice is
submitted by Seller. Seller agrees to remit taxes to the appropriate taxing
authorities.

2. Seller agrees to pay, and to hold Buyer harmless from and against, any
penalty, interest, additional tax or other charge that may be levied or assessed
as a result of the delay or failure of Seller, for any reason, to pay any tax or
file any return or information required by law, rule or regulation or by this
Agreement to be paid or filed by Seller. Seller agrees to pay and to hold Buyer
harmless from and against any penalty or sanction assessed as a result of Seller
doing business with any country subject to U.S. trade restrictions.

3. Upon Buyer's request, the parties shall consult with respect to the basis and
rates upon which Seller shall pay any taxes for which Buyer is obligated to
reimburse Seller under this Agreement. If Buyer determines that in its opinion
any such taxes are not payable or should be paid on a basis less than the full
price or at rates less than the full tax rate, Seller shall make payment in
accordance with such determinations. If collection is sought by the taxing
authority for a greater amount of taxes than that so determined by Buyer, Seller
shall promptly notify Buyer. If Buyer desires to contest such collection, Buyer
shall promptly notify Seller. If Buyer determines that in its opinion it has
reimbursed Seller for sales or use taxes in excess of the amount which Buyer is
obligated to reimburse Seller, Buyer and Seller shall consult to determine the
appropriate method of recovery of such excess reimbursements. Seller shall
credit any excess reimbursements against tax reimbursements or other payments
due from Buyer if and to the extent Seller can make corresponding adjustments to
its payments to the relevant tax authority. At Buyer's request, Seller shall
timely file any claims for refund and any other documents required to recover
any other excess reimbursements, and shall promptly remit to Buyer all such
refunds (and interest) received.

4. If any taxing authority advises Seller that it intends to audit Seller with
respect to any taxes for which Buyer is obligated to reimburse Seller under this
agreement, Seller shall (1) promptly so notify Buyer, (2) afford Buyer an
opportunity to participate on an equal basis with Seller in such audit with
respect to such taxes and (3) keep Buyer fully informed as to the progress of
such audit. Each party shall bear its own expenses with respect to any such
audit, and the responsibility for any additional tax, penalty or interest
resulting from such audit shall be determined in accordance with the applicable
provisions of this Section. Seller's failure to

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       27

<PAGE>   29
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

comply with the notification requirements of this section shall relieve Buyer of
its responsibility to reimburse Seller for taxes only if Seller's failure
materially prejudiced Buyer's ability to contest imposition or assessment of
those taxes.

                                TECHNICAL SUPPORT

Seller and/or its OEM supplier will provide, at no additional cost, fall and
complete technical assistance to Buyer for the Products and Services covered by
this Agreement. Buyer will be entitled to ongoing technical support including
field service and assistance from Seller at no additional charge; provided
however, that the availability or performance of this technical support Service
will not be construed as altering or affecting Seller's obligations as set forth
in the clause entitled [* Confidential treatment will be requested] or provided
elsewhere in this Agreement. Field Service and technical support Services,
including emergency (service affecting) will be provided on site twenty-four
(24) hours a day. Seller will deliver to Buyer and keep current an escalation
document that includes names, titles and telephone numbers, including
after-hours telephone numbers, of Seller personnel responsible for providing
technical support Services to Buyer. Seller will maintain a streamlined
escalation process to speed resolution of reported problems.

                                   TERMINATION

Buyer may terminate this Agreement or any Order in whole or in part at any time
by giving Seller at least thirty (30) days' prior written notice. Upon
termination, Buyer agrees to pay Seller all amounts due for MATERIAL provided by
Seller under this Agreement up to and including the effective date of
termination, which payment will constitute a full and complete discharge of
Buyer's obligations to Seller hereunder.

                               TERMS OF AGREEMENT

This Agreement is effective as of the signature date, and, unless terminated or
canceled as provided in this Agreement, shall remain in effect so long as both
parties find the Agreement mutually benefiting.

                  [* Confidential treatment will be requested]

                             TITLE AND RISK OF LOSS

Title to MATERIAL purchased hereunder will vest in Buyer when the MATERIAL has
been delivered and accepted at the F.O.B. point designated by Buyer. If this
Agreement calls for additional services such as unloading, installation or the
like to be performed after delivery,

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       28
<PAGE>   30
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

Seller will retain risk of loss to the MATERIAL until the additional services
have been performed to Buyer's satisfaction.

                                UNIVERSAL DESIGN

Seller and/or its OEM supplier advocates and supports and encourages its
suppliers to advocate and support the manufacturing and provision of products
which embrace the concept of "universal design". Seller shall use its reasonable
efforts to manufacture and provide products, including future versions of
Products, to make its products accessible to the widest range of consumers
including those with disabilities. Seller agrees to reasonably cooperate with
Buyer in addressing disability access issues, including hearing aid
interference, that may arise in connection with Buyer's customer's use of
Seller's Products furnished hereunder. Specifically Seller agrees:

1.   to ensure that its equipment is designed, developed and fabricated to be
     accessible to and usable by people with disabilities, and

2.   to ensure that the service is accessible to and usable to people with
     disabilities, or

3.   to ensure that the equipment or service is compatible with existing
     peripheral devices or specialized customer premises equipment commonly used
     by individuals with disabilities to achieve access, if the requirements of
     subsection 1 and 2 are not readily achievable.

                   * Confidential treatment will be requested

                             PROPRIETARY INFORMATION

    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       29
<PAGE>   31
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

     emergency replacement Service shall continue for a period of ten (10) years
     after the expiration of this Agreement. For Materials not covered under
     warranty, charges for replacement Material shall be at the current selling
     price; freight charges shall be borne by Buyer.

                               WORK DONE BY OTHERS

If any part of the Work is dependent upon work done by others, Seller shall
inspect and promptly report to Buyer any defect that renders such other work
unsuitable for Seller's proper performance. Seller's silence shall constitute
approval of such other work as it is fit, proper and suitable for Seller's
performance of the Work. Seller shall be entirely responsible for all persons
furnished by Seller working in harmony with all others when working on Buyer's
premises.

                               YEAR 2000 WARRANTY

1.   Seller and/or its OEM supplier warrants that all Software and Firmware,
     including any third party Software, which is licensed to Buyer hereunder
     prior to, during, or after the calendar year 2000, includes or will
     include, by___________, 199_, and at no additional cost to Buyer, year 2000
     capability. For the purpose of this license, year 2000 capability means
     that the Software and Firmware will:

     a.   Read, compute, store, process, display and print data involving dates,
          including single century and multi-century formulas, and will not
          cause computational, display, storage or other errors resulting from
          the inability to accurately or correctly handle dates, including Year
          2000 and February 29, 2000;

     b.   Include the indication of century in all date-related user interface
          functionality, data fields, and generated code; and

     c.   Be interoperable with other software used by Buyer which may deliver
          records to such Software and Firmware, receive records from such
          Software and Firmware or interact with such Software and Firmware in
          the course of processing dates.

2.   Acknowledges that Software and Firmware Products licensed by Seller
     hereunder may require modification in order to correctly process dates for
     Year 2000 and beyond. In addition, such modifications may be required in
     order for Seller's Software and Firmware Products to function correctly
     with Buyer's data and in accordance with the applicable Specifications
     therefor. Seller agrees to develop and implement such required changes in
     its Software and Firmware Products licensed hereunder by Buyer in
     accordance with a schedule to be mutually agreed to between Seller and
     Buyer, but which, at a minimum, shall provide Buyer with sufficient time to
     adequately test such modified Software and Firmware prior to mandatory
     implementation of such modified Software and Firmware

                             PROPRIETARY INFORMATION

    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       30

<PAGE>   32
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

Products. Seller agrees that there shall be no additional charges to Buyer for
such modifications or the modified Software and Firmware Products.

                             PROPRIETARY INFORMATION

    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       31
<PAGE>   33
                    [SOUTHWESTERN BELL TELEPHONE LETTERHEAD]

                                                             AGREEMENT #98005906

                              TERMS AND CONDITIONS

IN WITNESS WHEREOF, Seller and Buyer have executed the Agreement in duplicate
counterparts, each of which will be deemed to be an original document as of the
signature dates below.

WORLD WIDE TECHNOLOGY, INC.         SOUTHWESTERN BELL OPERATIONS INC.
         (SELLER)                                                      (BUYER)

By:    /s/ Mark J. Catalano           By:      /s/ Sheila Anderson-Tritthart

Name:  Mark J. Catalano               Name:    Sheila Anderson-Tritthart

Title: Director - Telco Bus. Unit     Title:   Director-Sonet & Transp Data Tech

Date:  3/15/99                        Date:    3/9/99

                             PROPRIETARY INFORMATION
    THE INFORMATION CONTAINED HEREIN IS NOT FOR USE OR DISCLOSURE OUTSIDE
    SOUTHWESTERN BELL TELEPHONE COMPANY, PACIFIC BELL OR THEIR AFFILIATED AND
    SUBSIDIARY COMPANIES EXCEPT UNDER WRITTEN AGREEMENT BY THE CONTRACTING
                                    COMPANY.

                                       32
<PAGE>   34
            EXHIBIT A -- EXECUTIVE ORDERS AND ASSOCIATED REGULATIONS

Work under this contract may be subject to the provisions of certain Executive
Orders, federal laws, state laws, and associated regulations governing
performance of this contract including, but not limited to: Executive Order
11246, Executive Order 11625, Executive Order 11701, and Executive Order 12138,
Section 503 of the Rehabilitation Act of 1973 as amended and the Vietnam Era
Veteran's Readjustment Assistance Act of 1974. To the extent that such
Executive Orders, federal laws, state laws, and associated regulations apply to
the work under this contract, and only to that extent, Contractor agrees to
comply with the provisions of all such Executive Orders, federal laws, state
laws and associated regulations, as now in force or as may be amended in the
future, including, but not limited to the following:

1.   EQUAL EMPLOYMENT OPPORTUNITY DUTIES AND PROVISIONS OF GOVERNMENT
     CONTRACTORS

     In accordance with 41 C.F.R. Section 60-1.4(a), the parties incorporate
herein by this reference the regulations and contract clauses required by that
section, including but not limited to, Contractor's agreement that it will not
discriminate against any employee or applicant for employment because of race,
color, religion, sex, or national origin. The Contractor will take affirmative
action to ensure that applicants are employed, and that employees are treated
during employment, without regard to their race, color, religion, sex, or
national origin.

2.   AGREEMENT OF NON SEGREGATED FACILITIES

     In accordance with 41 C.F.R. Section 60-1.8, Contractor agrees that it
does not and will not maintain or provide for its employees any facilities
segregated on the basis of race, color, religion, sex, or national origin at
any of its establishments, and that it does not and will not permit its
employees to perform their services at any location, under its control, where
such segregated facilities are maintained. The term "facilities" as used herein
means waiting rooms, work areas, restaurants and other eating areas, time
clocks, restrooms, washrooms, locker rooms and other storage or dressing
areas, parking lots, drinking fountains, recreation or entertainment areas,
transportation, and housing facilities provided for employees; provided, that
separate or single-user restroom and necessary dressing or sleeping areas shall
be provided to assure privacy between the sexes.

3.   AGREEMENT OF AFFIRMATIVE ACTION PROGRAM

     Contractor agrees that it has developed and is maintaining an Affirmative
Action Plan as required by 41 C.F.R. Section 60-1.4(b).

4.   AGREEMENT OF FILING

     Contractor agrees that it will file, per current instructions, complete
and accurate reports on standard Form 100 (EEO-1), or such other forms as may
be required under 41 C.F.R. Section 60-1.7(a).

5.   AFFIRMATIVE ACTION FOR HANDICAPPED PERSONS AND DISABLED VETERANS,
     VETERANS OF THE VIETNAM ERA.

     In accordance with 41 C.F.R. Section 60-250.20, and 41 C.F.R. Section
60-741.20, the parties incorporate herein by this reference the regulations and
contract clauses required by those provisions to be made a part of government
contracts and subcontracts.

6.   UTILIZATION OF SMALL, SMALL DISADVANTAGED AND WOMEN-OWNED SMALL BUSINESS
     CONCERNS

     As prescribed in 48 C.F.R., Ch. 1, 19.708(a):

     (a)  It is the policy of the United States that small business concerns,
small business concerns owned and controlled by socially and economically
disadvantaged individuals and small business concerns owned and controlled by
women shall have the maximum practicable opportunity to participate in
performing contracts let by any Federal agency, including contracts and
sub-contracts for systems, assemblies, components, and related services for
major systems. It is further the policy of the United States that its prime
contractors establish procedures to ensure the timely payment amounts due
pursuant

                                       34
<PAGE>   35
                                                          EXHIBIT A, Page 2 of 2

to the terms of the subcontracts with small business concerns, small business
concerns owned and controlled by socially and economically disadvantaged
individuals and small business concerns owned and controlled by women.

     (b) The Contractor hereby agrees to carry out this policy in the awarding
of subcontracts to the fullest extent consistent with efficient contract
performance. The Contractor further agrees to cooperate in any studies or
surveys as may be conducted by the United States Small Business Administration
or the awarding agency of the United States as may be necessary to determine the
extent of the Contractor's compliance with this clause.

     (c) As used in this contract, the term small business concern shall mean a
small business as defined pursuant to section 3 of the Small Business Act and
relevant regulations promulgated pursuant thereto. The term small business
concern and owned and controlled by socially and economically disadvantaged
individuals shall mean a small business concern which is at least 51 percent
unconditionally owned by one or more socially and economically disadvantaged
individuals; or, in the case of any publicly owned business, at least 51 percent
of the stock of which is unconditionally owned by one or more socially and
economically disadvantaged individuals; and (2) whose management and daily
business operations are controlled by one or more such individuals. This term
also means small business concern that is at least 51 percent unconditionally
owned by an economically disadvantaged Indian tribe or Native Hawaiian
Organization, or a publicly owned business having at least 51 percent of its
stock unconditionally owned by one of these entities which has its management
and daily business controlled by members of an economically disadvantaged Indian
tribe or Native Hawaiian Organization, and which meets the requirements of 13
CRF part 124. The Contractor shall presume that socially and economically
disadvantaged individual include Black Americans, Hispanic Americans, Native
Americans, Asian-Pacific Americans, Subcontinent Asian Americans, and other
minorities, or any other individual found to be disadvantaged by the
Administration pursuant to section 8(a) of the Small business Act. The
Contractor shall presume that socially and economically disadvantaged entities
also include Indian Tribes and Native Hawaiian Organizations.

     (d) The term "small business concern owned and controlled by women" shall
mean a small business concern (i) which is at least 51 percent owned by one or
more women, or, in the case of any publicly owned business, at least 51 percent
of the stock of which is owned by one or more women, and (ii) whose management
and daily business operations are controlled by one or more women; and

     (e) Contractors acting in good faith may rely on written representations by
their sub-contractors regarding their status as a small business concern, a
small business concern owned and controlled by socially and economically
disadvantaged individuals or a small business concern owned and controlled by
women.

7. SMALL, SMALL DISADVANTAGED AND WOMEN-OWNED SMALL BUSINESS SUB-CONTRACTING
PLAN.

     The sub-contractor will adopt a plan similar to the plan required by 48 CFR
Ch. 1 at 52.219-9.

<PAGE>   36

                                 PRIME SUPPLIER

                         MBE/WBE/DVBE PARTICIPATION PLAN

PRIME SUPPLIER NAME:____________________________________________________________

ADDRESS:________________________________________________________________________

TELEPHONE NUMBER:_______________________________________________________________

DESCRIBE GOODS OR SERVICES BEING PROVIDED UNDER THIS AGREEMENT:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

DESCRIBE YOUR M/WBE - DVBE OR SUPPLIER DIVERSITY PROGRAM AND THE PERSONNEL
DEDICATED TO THAT PROGRAM.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

THE FOLLOWING, TOGETHER WITH ANY ATTACHMENTS IS SUBMITTED AS AN MBE/WBE/DVBE
PARTICIPATION PLAN.

1.   GOALS

     A.   WHAT ARE YOUR MBE/WBE/DVBE PARTICIPATION GOALS?

          o    MINORITY BUSINESS ENTERPRISES (MBEs)    ____________%

          o    WOMEN BUSINESS ENTERPRISES (WBEs)       ____________%

          o    DISABLED VETERANS BUSINESS              ____________%
               ENTERPRISES (DVBEs)

     B.   WHAT IS THE ESTIMATED ANNUAL VALUE OF THIS CONTRACT WITH PACIFIC BELL?
          _______________

<PAGE>   37
                                         General Agreement # 98005906 Exhibit A1

          SOUTHWESTERN BELL TELEPHONE COMPANY ("SWBT")?___________
          OTHER SBC AFFILIATE? _______________
          Note: Indicate Dollar Award(s) as it applies to this contract
          (i.e., Pacific Bell, SWBT and/or affiliate).

     C.   WHAT ARE THE DOLLAR AMOUNTS OF YOUR PROJECTED MBE/WBE/DVBE PURCHASES?

          o    MINORITY BUSINESS ENTERPRISES (MBEs)         _______________

          o    WOMEN BUSINESS ENTERPRISES (WBEs)            _______________

          o    DISABLED VETERANS BUSINESS                   _______________
               ENTERPRISES (DVBEs)

*SEE MBE/WBE/DVBE CANCELLATION CLAUSE IN AGREEMENT FOR DEFINITIONS OF MBE, WBE,
AND DVBE*

2.   LIST THE PRINCIPAL GOODS AND/OR SERVICES TO BE SUBCONTRACTED TO
     MBE/WBE/DVBEs OR DELIVERED THROUGH MBE/WBE/DVBE VALUE ADDED RESELLERS.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

                    DETAILED PLAN FOR USE OF M/WBEs-DVBEs AS
               SUBCONTRACTORS, DISTRIBUTORS, VALUE ADDED RESELLERS

For every product and service you intend to use, provide the following
information:
(Attach additional sheets if necessary)

<TABLE>
<CAPTION>
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
      COMPANY NAME           CLASSIFICATION       PRODUCTS/SERVICES TO          $ VALUE             DATE TO BEGIN
                             (MBE/WBE/DVBE)           BE PROVIDED
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
<S>                       <C>                    <C>                     <C>                    <C>

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

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

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

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

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

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

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

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

------------------------- ---------------------- ----------------------- ---------------------- ----------------------
</TABLE>

                                       2
<PAGE>   38

                                          General Agreement #98005906 Exhibit A1

<TABLE>
<S>                       <C>                    <C>                     <C>                    <C>
------------------------- ---------------------- ----------------------- ---------------------- ----------------------

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

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

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

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

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

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

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

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

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

------------------------- ---------------------- ----------------------- ---------------------- ----------------------
</TABLE>

3.   SELLER AGREES THAT IT WILL MAINTAIN ALL NECESSARY DOCUMENTS AND RECORDS TO
     SUPPORT ITS EFFORTS TO ACHIEVE ITS MBE/WBE/DVBE PARTICIPATION GOAL(S).
     SELLER ALSO ACKNOWLEDGES THE FACT THAT IT IS RESPONSIBLE FOR IDENTIFYING,
     SOLICITING AND QUALIFYING MBE/WBE/DVBE SUBCONTRACTORS, DISTRIBUTORS AND
     VALUE ADDED RESELLERS.

4.   THE FOLLOWING INDIVIDUAL, ACTING IN THE CAPACITY OF MBE/WBE/DVBE
     COORDINATOR FOR SELLER, WILL:

     o    ADMINISTER THE MBE/WBE/DVBE PARTICIPATION PLAN,

     o    SUBMIT SUMMARY REPORTS, AND

     o    COOPERATE IN ANY STUDIES OR SURVEYS AS MAY BE REQUIRED IN ORDER TO
          DETERMINE THE EXTENT OF COMPLIANCE BY THE SELLER WITH THE
          PARTICIPATION PLAN.

     NAME: (PRINTED)____________________________________________________________

     TITLE:_____________________________________________________________________

     TELEPHONE NUMBER:__________________________________________________________

     AUTHORIZED SIGNATURE:______________________________________________________

     DATE:______________________________________________________________________

                                       3
<PAGE>   39

                               SBC - PACIFIC BELL

                       M/WBE-DVBE QUARTERLY RESULTS REPORT

NOTE:    Subcontracting & Value Added Reseller Results should reflect ONLY
         M/WBE-DVBE dollars directly traceable to PACIFIC BELL purchases DURING
         THE REPORT QUARTER. If reporting results for Southwestern Bell
         Telephone Company, complete a separate Exhibit B1.

<TABLE>
------------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>                           <C>
1.   REPORTING COMPANY:                              2. CONTRACT/              3.  REPORT QUARTER:
                                                    WORK ORDER NUMBER:             This report reflects the
Name:__________________________________________                                    utilization of Minority Business
Address:_______________________________________                                    Enterprise/Woman Business
City, State, Zip:______________________________  ___________________               Enterprise/Disabled Veterans
Telephone:_____________________________________     (If available)                 Enterprise participation for
                                                                                   period
                                                                                   ________________________  through
                                                                                   _______________________________
                                                                                    (Please indicate   dates)

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>

<S>                                                                   <C>
                         PARTICIPATION GOAL                                               PARTICIPATION ACHIEVEMENT

                                                                      5.                             ACTUAL FOR QUARTER
4.                                                                                                   MBE        WBE      DVBE
                                                                      Subcontracting Dollars     $          $          $
                                                                                                 ---------- ---------- --------
                                    ANNUAL GOAL
                                                                      Value Added Reseller
Percent of Total               MBE        WBE       DVBE              Dollars                    $          $           $
                                                                                                 ---------- ----------- --------
Pacific Bell Purchases              %          %          %
                            ---------- ---------- ----------
                                                                      Total Purchase Dollars     $
                                                                                                 ------------- ----------- -----

                                                                      Percent of Total
                                                                      Purchases                           %          %        %
                                                                                                 ---------- ---------- --------

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

</TABLE>

                          VALUE ADDED RESELLER* RESULTS

*Supplier who purchases products/services from an original equipment
manufacturer or other prime supplier for resale and provides enhancements or
added value to the basic product. (Attach additional sheets if necessary)

<TABLE>
<CAPTION>
                                                                            Ethnic/Gender:                      Total Dollars:
                                                                            -------------                       -------------
<S>                                                                         <C>                                 <C>
6.

Name:____________________________________________________________________   __________________________________  ____________________
Address:____________________________________________________________________________________________________________________________
City, State, Zip:___________________________________________________________________________________________________________________
Telephone:__________________________________________________________________________________________________________________________
Goods or Services:__________________________________________________________________________________________________________________
</TABLE>

<TABLE>
<CAPTION>

                                                                            Ethnic/Gender:                      Total Dollars:
                                                                            -------------                       -------------
<S>                                                                         <C>                                 <C>
Name:____________________________________________________________________   _________________________________   ____________________
Address:____________________________________________________________________________________________________________________________
City, State, Zip:___________________________________________________________________________________________________________________
Telephone:__________________________________________________________________________________________________________________________
Goods or Services:__________________________________________________________________________________________________________________
</TABLE><PAGE>   1
                                                                    EXHIBIT 10.1

THIS COMMON STOCK PURCHASE WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
TRANSFERRED IN VIOLATION OF SUCH ACT, THE RULES AND REGULATIONS THEREUNDER OR
THE PROVISIONS OF THIS COMMON STOCK PURCHASE WARRANT.

                    Number of Shares of Common Stock: 500,000
                                 Warrant No. G-1

                          COMMON STOCK PURCHASE WARRANT

                           To Purchase Common Stock of

                                PopMail.com Inc.

               THIS IS TO CERTIFY THAT The Shaar Fund Ltd., or registered
assigns, is entitled, at any time from the Closing Date (as hereinafter defined)
to the Expiration Date (as hereinafter defined), to purchase from PopMail.com
Inc., a Minnesota corporation (the "COMPANY"), 500,000 shares of Common Stock
(as hereinafter defined and subject to adjustment as provided herein), in whole
or in part, including fractional parts, at a purchase of $2.51, subject to
adjustment as provided herein, all on the terms and conditions and pursuant to
the provisions hereinafter set forth.

               1.   DEFINITIONS

               As used in this Common Stock Purchase Warrant (this "WARRANT"),
the following terms shall have the respective meanings set forth below:

               "ADDITIONAL SHARES OF COMMON STOCK" shall mean all shares of
Common Stock issued by the Company after the Closing Date, other than Warrant
Stock.

               "BOOK VALUE" shall mean, in respect of any share of Common Stock
on any date herein specified, the consolidated book value of the Company as of
the last day of any month immediately preceding such date, divided by the number
of Fully Diluted Outstanding shares of Common Stock as determined in accordance
with GAAP (assuming the payment of the exercise prices for such shares) by Grant
Thornton LLP or any other firm of independent certified public accountants of
recognized national standing selected by the Company.

               "BUSINESS DAY" shall mean any day that is not a Saturday or
Sunday or a day on which banks are required or permitted to be closed in the
State of New York.
<PAGE>   2
               "CLOSING DATE" shall have the meaning set forth in the Securities
Purchase Agreement.

               "COMMISSION" shall mean the Securities and Exchange Commission or
any other federal agency then administering the Securities Act and other federal
securities laws.

               "COMMON STOCK" shall mean (except where the context otherwise
indicates) the Common Stock, par value $.01 per share, of the Company as
constituted on the Closing Date, and any capital stock into which such Common
Stock may thereafter be changed, and shall also include (i) capital stock of the
Company of any other class (regardless of how denominated) issued to the holders
of shares of Common Stock upon any reclassification thereof which is also not
preferred as to dividends or assets over any other class of stock of the Company
and which is not subject to redemption and (ii) shares of common stock of any
successor or acquiring corporation received by or distributed to the holders of
Common Stock of the Company in the circumstances contemplated by Section 4.4.

               "CONVERTIBLE SECURITIES" shall mean evidences of indebtedness,
shares of stock or other securities which are convertible into or exchangeable,
with or without payment of additional consideration in cash or property, for
shares of Common Stock, either immediately or upon the occurrence of a specified
date or a specified event.

               "CURRENT MARKET PRICE" shall mean on any date of determination
the closing bid price of a Common Share on such day as reported on Nasdaq;
provided, if such security bid is not listed or admitted to trading on Nasdaq,
as reported on the principal national security exchange or quotation system on
which such security is quoted or listed or admitted to trading, or, if not
quoted or listed or admitted to trading on any national securities exchange or
quotation system, the closing bid price of such security on the over-the-counter
market on the day in question as reported by Bloomberg LP, or a similar
generally accepted reporting service, as the case may be.

               "CURRENT WARRANT PRICE" shall mean, in respect of a share of
Common Stock at any date herein specified, the price at which a share of Common
Stock may be purchased pursuant to this Warrant on such date, as set forth in
the first paragraph hereof.

               "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended, or any successor federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect from time to time.

               "EXERCISE PERIOD" shall mean the period during which this Warrant
is exercisable pursuant to Section 2.1.

               "EXPIRATION DATE" shall mean May 2, 2005.

               "FULLY DILUTED OUTSTANDING" shall mean, when used with reference
to Common Stock, at any date as of which the number of shares thereof is to be
determined, all shares of Common Stock Outstanding at such date and all shares
of Common Stock issuable in respect of this Warrant, outstanding on such date,
and other options or warrants to purchase, or securities convertible into,
shares of Common Stock outstanding on such date which would be deemed

                                      -2-
<PAGE>   3
outstanding in accordance with GAAP for purposes of determining Book Value or
net income per share.

               "FUNDAMENTAL CORPORATE CHANGE" shall have the meaning set forth
in Section 4.4.

               "GAAP" shall mean generally accepted accounting principles in the
United States of America as from time to time in effect.

               "HOLDER" shall mean the Person in whose name the Warrant or
Warrant Stock set forth herein is registered on the books of the Company
maintained for such purpose.

               "MARKET PRICE" per Common Share means the closing bid prices of
the Common Shares as reported on the Nasdaq SmallCap Market ("NASDAQ").

               "OTHER PROPERTY" shall have the meaning set forth in Section 4.4.

               "OUTSTANDING" shall mean, when used with reference to Common
Stock, at any date as of which the number of shares thereof is to be determined,
all issued shares of Common Stock, except shares then owned or held by or for
the account of the Company or any subsidiary thereof, and shall include all
shares issuable in respect of outstanding scrip or any certificates representing
fractional interests in shares of Common Stock.

               "PERSON" shall mean any individual, sole proprietorship,
partnership, joint venture, trust, incorporated organization, association,
corporation, institution, public benefit corporation, entity or government
(whether federal, state, county, city, municipal or otherwise, including,
without limitation, any instrumentality, division, agency, body or department
thereof).

               "REGISTRATION RIGHTS AGREEMENT" shall mean the Registration
Rights Agreement dated as of a date even herewith between the Company and The
Shaar Fund Ltd., as it may be amended from time to time.

               "RESTRICTED COMMON STOCK" shall mean shares of Common Stock which
are, or which upon their issuance on their exercise of this Warrant would be,
evidenced by a certificate bearing the restrictive legend set forth in Section
9.1(a).

               "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended, or any successor federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

               "SECURITIES PURCHASE AGREEMENT" shall mean the Securities
Purchase Agreement dated as of a date even herewith between the Company and The
Shaar Fund Ltd., as it may be amended from time to time.

               "TRANSFER" shall mean any disposition of any Warrant or Warrant
Stock or of any interest in either thereof, which would constitute a sale
thereof within the meaning of the Securities Act.

                                      -3-
<PAGE>   4
               "TRANSFER NOTICE" shall have the meaning set forth in Section
9.2.

               "WARRANT PRICE" shall mean an amount equal to (i) the number of
shares of Common Stock being purchased upon exercise of this Warrant pursuant to
Section 2.1, multiplied by (ii) the Current Warrant Price as of the date of such
exercise.

               "WARRANT STOCK" shall mean the shares of Common Stock purchased
by the holders of the Warrants upon the exercise thereof.

               "WARRANTS" shall mean this Warrant and all warrants issued upon
transfer, division or combination of, or in substitution for, any thereof. All
Warrants shall at all times be identical as to terms and conditions and date,
except as to the number of shares of Common Stock for which they may be
exercised.

               2.   EXERCISE OF WARRANT

               2.1  MANNER OF EXERCISE

               From and after the Closing Date and until 5:00 p.m., New York
time, on the Expiration Date, Holder may exercise this Warrant, on any Business
Day, for all or any part of the number of shares of Common Stock purchasable
hereunder.

               In order to exercise this Warrant, in whole or in part, Holder
shall deliver to the Company at its principal office at 1331 Corporate Drive,
Suite 350, Irving, TX 75038, or at the office or agency designated by the
Company pursuant to Section 12, (i) a written notice of Holder's election to
exercise this Warrant, which notice shall specify the number of shares of Common
Stock to be purchased, (ii) to the extent such exercise is not being effected
through a Cashless Exercise, payment of the Warrant Price in cash or wire
transfer or cashier's check drawn on a United States bank and (iii) this
Warrant. Such notice shall be substantially in the form of the subscription form
appearing at the end of this Warrant as Exhibit A, duly executed by Holder or
its agent or attorney. Upon receipt of the items referred to in clauses (i),
(ii) and (iii) above, the Company shall, as promptly as practicable, and in any
event within five Business Days thereafter, execute or cause to be executed and
deliver or cause to be delivered to Holder a certificate or certificates
representing the aggregate number of full shares of Common Stock issuable upon
such exercise, together with cash in lieu of any fraction of a share, as
hereinafter provided. The stock certificate or certificates so delivered shall
be, to the extent possible, in such denomination or denominations as Holder
shall request in the notice and shall be registered in the name of Holder or,
subject to Section 9, such other name as shall be designated in the notice. This
Warrant shall be deemed to have been exercised and such certificate or
certificates shall be deemed to have been issued, and Holder or any other Person
so designated to be named therein shall be deemed to have become a holder of
record of such shares for all purposes, as of the date the notice, together with
the cash or check or checks and this Warrant, is received by the Company as
described above and all taxes required to be paid by Holder, if any, pursuant to
Section 2.2 prior to the issuance of such shares have been paid. If this Warrant
shall have been exercised in part, the Company shall, at the time of delivery of
the certificate or certificates representing Warrant Stock, deliver to Holder a
new Warrant evidencing the rights of Holder to purchase the unpurchased shares
of Common Stock called for by this Warrant, which new

                                      -4-
<PAGE>   5
Warrant shall in all other respects be identical with this Warrant, or, at the
request of Holder, appropriate notation may be made on this Warrant and the same
returned to Holder. Notwithstanding any provision herein to the contrary, the
Company shall not be required to register shares in the name of any Person who
acquired this Warrant (or part hereof) or any Warrant Stock otherwise than in
accordance with this Warrant.

               Simultaneously with the exercise of this Warrant, payment in full
of the Warrant Price shall be made, at the option of the Holder, (i) by payment
of the Warrant Price in cash or by wire transfer or cashier's check drawn on a
United States bank, (ii) through a net exercise without payment of the Warrant
Price in cash by providing notice to the Company of the Holder's election to
receive a number of shares of Common Stock in a Cashless Exercise equal to the
product of (1) the number of shares for which such Warrant is exercisable with
payment in cash of the Warrant Price as of the date of exercise and (2) the
Cashless Exercise Ratio or (iii) by any combination of clauses (i) and (ii). For
purposes of this Agreement, the "CASHLESS EXERCISE RATIO" shall equal a
fraction, the numerator of which is the excess of the Current Market Price per
share of the Common Stock on the date of exercise over the Current Warrant Price
as of the date of exercise, and the denominator of which is the Current Market
Price per share of the Common Stock on the date of exercise. An exercise of a
Warrant in accordance with clause (ii) above is herein called a "CASHLESS
EXERCISE." Following a Cashless Exercise, this Warrant shall be canceled in all
respects with regard to (a) the number of shares of Common Stock issued in
accordance with the Cashless Exercise plus (b) the number of shares used as
consideration for the Cashless Exercise.

               2.2  PAYMENT OF TAXES AND CHARGES

               All shares of Common Stock issuable upon the exercise of this
Warrant pursuant to the terms hereof shall be validly issued, fully paid and
nonassessable, freely tradable and without any preemptive rights. The Company
shall pay all expenses in connection with, and all taxes and other governmental
charges that may be imposed with respect to, the issuance or delivery thereof,
unless such tax or charge is imposed by law upon Holder, in which case such
taxes or charges shall be paid by Holder. The Company shall not be required,
however, to pay any tax or other charge imposed in connection with any transfer
involved in the issuance of any certificate for shares of Common Stock issuable
upon exercise of this Warrant in any name other than that of Holder, and in such
case the Company shall not be required to issue or deliver any stock certificate
until such tax or other charge has been paid or it has been established to the
satisfaction of the Company that no such tax or other charge is due.

               2.3 FRACTIONAL SHARES

               The Company shall not be required to issue a fractional share of
Common Stock upon exercise of any Warrant. As to any fraction of a share which
Holder would otherwise be entitled to purchase upon such exercise, the Company
shall pay a cash adjustment in respect of such final fraction in an amount equal
to the same fraction of the Market Price per share of Common Stock as of the
Closing Date.

                                      -5-
<PAGE>   6
               2.4  CONTINUED VALIDITY

               A holder of shares of Common Stock issued upon the exercise of
this Warrant, in whole or in part (other than a holder who acquires such shares
after the same have been publicly sold pursuant to a Registration Statement
under the Securities Act or sold pursuant to Rule 144 thereunder) shall continue
to be entitled with respect to such shares to all rights to which it would have
been entitled as Holder under Sections 9, 10 and 14 of this Warrant. The Company
will, at the time of exercise of this Warrant, in whole or in part, upon the
request of Holder, acknowledge in writing, in form reasonably satisfactory to
Holder, its continuing obligation to afford Holder all such rights; provided,
however, that if Holder shall fail to make any such request, such failure shall
not affect the continuing obligation of the Company to afford to Holder all such
rights.

               3.   TRANSFER, DIVISION AND COMBINATION

               3.1  TRANSFER

               Subject to compliance with Section 9, transfer of this Warrant
and all rights hereunder, in whole or in part, shall be registered on the books
of the Company to be maintained for such purpose, upon surrender of this Warrant
at the principal office of the Company referred to in Section 2.1 or the office
or agency designated by the Company pursuant to Section 12, together with a
written assignment of this Warrant substantially in the form of Exhibit B hereto
duly executed by Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall, subject to Section 9, execute
and deliver a new Warrant or Warrants in the name of the assignee or assignees
and in the denomination specified in such instrument of assignment, and shall
issue to the assignor a new Warrant evidencing the portion of this Warrant not
so assigned, and this Warrant shall promptly be canceled. A Warrant, if properly
assigned in compliance with Section 9, may be exercised by a new Holder for the
purchase of shares of Common Stock without having a new warrant issued.

               3.2 DIVISION AND COMBINATION

               Subject to Section 9, this Warrant may be divided or combined
with other Warrants upon presentation hereof at the aforesaid office or agency
of the Company, together with a written notice specifying the names and
denominations in which new Warrants are to be issued, signed by Holder or its
agent or attorney. Subject to compliance with Sections 3.1 and 9, as to any
transfer which may be involved in such division or combination, the Company
shall execute and deliver a new Warrant or Warrants in exchange for the Warrant
or Warrants to be divided or combined in accordance with such notice.

               3.3 EXPENSES

               The Company shall prepare, issue and deliver at its own expense
(other than transfer taxes) the new Warrants or Warrants under this Section 3.

                                      -6-
<PAGE>   7
               3.4  MAINTENANCE OF BOOKS

               The Company agrees to maintain, at its aforesaid office or
agency, books for the registration and the registration of transfer of the
Warrants.

               4.   ADJUSTMENTS

               The number of shares of Common Stock for which this Warrant is
exercisable, or the price at which such shares may be purchased upon exercise of
this Warrant, shall be subject to adjustment from time to time as set forth in
this Section 4. The Company shall give Holder notice of any event described
below which requires an adjustment pursuant to this Section 4 at the time of
such event.

               4.1  STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS

               If at any time the Company shall:

               (a)  take a record of the holders of its Common Stock for the
purpose of entitling them to receive a dividend payable in, or other
distribution of, Additional Shares of Common Stock;

               (b)  subdivide its outstanding shares of Common Stock into a
larger number of shares of Common Stock; or

               (c)  combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock;

then (i) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (ii) the Current Warrant Price
shall be adjusted to equal (A) the Current Warrant Price multiplied by the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the adjustment divided by (B) the number of shares for
which this Warrant is exercisable immediately after such adjustment.

               4.2  CERTAIN OTHER DISTRIBUTIONS

               If at any time the Company shall take a record of the holders of
its Common Stock for the purpose of entitling them to receive any dividend or
other distribution of:

               (a)  cash;

               (b)  any evidences of its indebtedness, any shares of its stock
or any other securities or property of any nature whatsoever (other than cash,
Convertible Securities or Additional Shares of Common Stock); or

                                      -7-
<PAGE>   8
               (c)  any warrants or other rights to subscribe for or purchase
any evidences of its indebtedness, any shares of its stock or any other
securities or property of any nature whatsoever (other than cash, Convertible
Securities or Additional Shares of Common Stock);

then Holder shall be entitled to receive such dividend or distribution as if
Holder had exercised the Warrant. A reclassification of the Common Stock (other
than a change in par value, or from par value to no par value or from no par
value to par value) into shares of Common Stock and shares of any other class of
stock shall be deemed a distribution by the Company to the holders of its Common
Stock of such shares of such other class of stock within the meaning of this
Section 4.2 and, if the outstanding shares of Common Stock shall be changed into
a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, as
the case may be, of the outstanding shares of Common Stock within the meaning of
Section 4.1.

               4.3  OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS
                    SECTION

               The following provisions shall be applicable to the making of
adjustments of the number of shares of Common Stock for which this Warrant is
exercisable and the Current Warrant Price provided for in this Section 4:

               (a)  WHEN ADJUSTMENTS TO BE MADE. The adjustments required by
this Section 4 shall be made whenever and as often as any specified event
requiring an adjustment shall occur. For the purpose of any adjustment, any
specified event shall be deemed to have occurred at the close of business on the
date of its occurrence.

               (b)  FRACTIONAL INTERESTS. In computing adjustments under this
Section 4, fractional interests in Common Stock shall be taken into account to
the nearest 1/10th of a share.

               (c)  WHEN ADJUSTMENT NOT REQUIRED. If the Company shall take a
record of the holders of its Common Stock for the purpose of entitling them to
receive a dividend or distribution or subscription or purchase rights and shall,
thereafter and before the distribution to stockholders thereof, legally abandon
its plan to pay or deliver such dividend, distribution, subscription or purchase
rights, then thereafter no adjustment shall be required by reason of the taking
of such record and any such adjustment previously made in respect thereof shall
be rescinded and annulled.

               (d)  CHALLENGE TO GOOD FAITH DETERMINATION. Whenever the Board of
Directors of the Company shall be required to make a determination in good faith
of the fair value of any item under this Section 4, such determination may be
challenged in good faith by the Holder, and any dispute shall be resolved by an
investment banking firm of recognized national standing selected by the Company
and acceptable to Holder.

               4.4  REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION OR
                    DISPOSITION OF ASSETS

               In case the Company shall reorganize its capital, reclassify its
capital stock, consolidate or merge with or into another Person (where the
Company is not the survivor or where there is a change in or distribution with
respect to the Common Stock of the Company), or

                                      -8-
<PAGE>   9
sell, convey, transfer or otherwise dispose of all or substantially all its
property, assets or business to another Person, or effectuate a transaction or
series of related transactions in which more than 50% of the voting power of the
Company is disposed of (each, a "FUNDAMENTAL CORPORATE CHANGE") and, pursuant to
the terms of such Fundamental Corporate Change, shares of common stock of the
successor or acquiring corporation, or any cash, shares of stock or other
securities or property of any nature whatsoever (including warrants or other
subscription or purchase rights) in addition to or in lieu of common stock of
the successor or acquiring corporation ("OTHER PROPERTY"), are to be received by
or distributed to the holders of Common Stock of the Company, then Holder shall
have the right thereafter to receive, upon exercise of the Warrant, such number
of shares of common stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and Other Property as is receivable
upon or as a result of such Fundamental Corporate Change by a holder of the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such Fundamental Corporate Change. In case of any such
Fundamental Corporate Change, the successor or acquiring corporation (if other
than the Company) shall expressly assume the due and punctual observance and
performance of each and every covenant and condition of this Warrant to be
performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as
determined by resolution of the Board of Directors of the Company) in order to
provide for adjustments of shares of Common Stock for which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 4. For purposes of this Section 4.4,
"COMMON STOCK OF THE SUCCESSOR OR ACQUIRING CORPORATION" shall include stock of
such corporation of any class which is not preferred as to dividends or assets
over any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such
stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for
or purchase any such stock. The foregoing provisions of this Section 4.4 shall
similarly apply to successive Fundamental Corporate Change.

               4.5  OTHER ACTION AFFECTING COMMON STOCK

               In case at any time or from time to time the Company shall take
any action in respect of its Common Stock, other than any action described in
this Section 4, which would have a materially adverse effect upon the rights of
Holder, the number of shares of Common Stock and/or the purchase price thereof
shall be adjusted in such manner as may be equitable in the circumstances, as
determined in good faith by the Board of Directors of the Company.

               4.6  CERTAIN LIMITATIONS

               Notwithstanding anything herein to the contrary, the Company
agrees not to enter into any transaction which, by reason of any adjustment
hereunder, would cause the Current Warrant Price to be less than the par value
per share of Common Stock.

                                      -9-
<PAGE>   10
               5.   NOTICES TO HOLDER

               5.1  NOTICE OF ADJUSTMENTS

               Whenever the number of shares of Common Stock for which this
Warrant is exercisable, or whenever the price at which a share of such Common
Stock may be purchased upon exercise of the Warrants, shall be adjusted pursuant
to Section 4, the Company shall forthwith prepare a certificate to be executed
by the chief financial officer of the Company setting forth, in reasonable
detail, the event requiring the adjustment and the method by which such
adjustment was calculated (including a description of the basis on which the
Board of Directors of the Company determined the fair value of any evidences of
indebtedness, shares of stock, other securities or property or warrants or other
subscription or purchase rights referred to in Section 4.2), specifying the
number of shares of Common Stock for which this Warrant is exercisable and (if
such adjustment was made pursuant to Section 4.4 or 4.5) describing the number
and kind of any other shares of stock or Other Property for which this Warrant
is exercisable, and any change in the purchase price or prices thereof, after
giving effect to such adjustment or change. The Company shall promptly cause a
signed copy of such certificate to be delivered to the Holder in accordance with
Section 14.2. The Company shall keep at its office or agency designated pursuant
to Section 12 copies of all such certificates and cause the same to be available
for inspection at said office during normal business hours by the Holder or any
prospective purchaser of a Warrant designated by Holder.

               5.2  NOTICE OF CORPORATE ACTION

               If at any time:

               (a)  the Company shall take a record of the holders of its Common
Stock for the purpose of entitling them to receive a dividend or other
distribution, or any right to subscribe for or purchase any evidences of its
indebtedness, any shares of stock of any class or any other securities or
property, or to receive any other right; or

               (b)  there shall be any capital reorganization of the Company,
any reclassification or recapitalization of the capital stock of the Company or
any consolidation or merger of the Company with, or any sale, transfer or other
disposition of all or substantially all the property, assets or business of the
Company to, another corporation; or

               (c)  there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 30 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up, and (ii) in the case of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up, at least 30 days' prior written notice of the date when the same shall take
place. Such notice in accordance with the foregoing clause also shall specify
(i) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, the date on which the holders of Common Stock

                                      -10-
<PAGE>   11
shall be entitled to any such dividend, distribution or right, and the amount
and character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up. Each such written notice shall be sufficiently given if addressed to Holder
at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 14.2.

               6.   NO IMPAIRMENT

               The Company shall not by any action, including, without
limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issuance
or sale of securities or other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the
rights of Holder against impairment. Without limiting the generality of the
foregoing, the Company will (a) not increase the par value of any shares of
Common Stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise immediately prior to such increase in par
value, (b) take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant, and (c) use its best efforts to
obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction thereof as may be necessary to enable the
Company to perform its obligations under this Warrant.

               Upon the request of Holder, the Company will at any time during
the period this Warrant is outstanding acknowledge in writing, in form
satisfactory to Holder, the continuing validity of this Warrant and the
obligations of the Company hereunder.

               7.   RESERVATION AND AUTHORIZATION OF COMMON STOCK

               From and after the Closing Date, the Company shall at all times
reserve and keep available for issuance upon the exercise of Warrants such
number of its authorized but unissued shares of Common Stock as will be
sufficient to permit the exercise in full of all outstanding Warrants. All
shares of Common Stock which shall be so issuable, when issued upon exercise of
any Warrant and payment therefor in accordance with the terms of such Warrant,
shall be duly and validly issued and fully paid and nonassessable and not
subject to preemptive rights.

               Before taking any action which would cause an adjustment reducing
the Current Warrant Price below the then par value, if any, of the shares of
Common Stock issuable upon exercise of the Warrants, the Company shall take any
corporate action which may be necessary in order that the Company may validly
and legally issue fully paid and nonassessable shares of such Common Stock at
such adjusted Current Warrant Price.

                                      -11-
<PAGE>   12
               Before taking any action which would result in an adjustment in
the number of shares of Common Stock for which this Warrant is exercisable or in
the Current Warrant Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

               8.   TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS

               In the case of all dividends or other distributions by the
Company to the holders of its Common Stock with respect to which any provision
of Section 4 refers to the taking of record of such holders, the Company will in
each case take such a record and will take such record as of the close of
business on a Business Day. The Company will not at any time, except upon
dissolution, liquidation or winding up of the Company, close its stock transfer
books or Warrant transfer books so as to result in preventing or delaying the
exercise or transfer of any Warrant.

               9.   RESTRICTIONS ON TRANSFERABILITY

               The Warrants and the Warrant Stock shall not be transferred,
hypothecated or assigned before satisfaction of the conditions specified in this
Section 9, which conditions are intended to ensure compliance with the
provisions of the Securities Act with respect to the Transfer of any Warrant or
any Warrant Stock. Holder, by acceptance of this Warrant, agrees to be bound by
the provisions of this Section 9.

               9.1  RESTRICTIVE LEGEND

               (a) Holder, by accepting this Warrant and any Warrant Stock
agrees that this Warrant and the Warrant Stock issuable upon exercise hereof may
not be assigned or otherwise transferred unless and until (i) the Company has
received an opinion of counsel for Holder that such securities may be sold
pursuant to an exemption from registration under the Securities Act or (ii) a
registration statement relating to such securities has been filed by the Company
and declared effective by the Commission.

               Each certificate for Warrant Stock issuable hereunder shall bear
a legend as follows until such securities have been sold pursuant to an
effective registration statement under the Securities Act:

               "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
               ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES
               LAWS OF ANY STATE, AND ARE BEING OFFERED AND SOLD PURSUANT TO AN
               EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
               ACT AND SUCH LAWS. THESE SECURITIES MAY NOT BE SOLD OR
               TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
               STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE

                                      -12-
<PAGE>   13
               EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
               ACT OR SUCH OTHER LAWS."

               (b)  Except as otherwise provided in this Section 9, the Warrant
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

               "THIS COMMON STOCK PURCHASE WARRANT AND THE SECURITIES
               REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
               ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED IN VIOLATION
               OF SUCH ACT, THE RULES AND REGULATIONS THEREUNDER OR THE
               PROVISIONS OF THIS COMMON STOCK PURCHASE WARRANT."

               9.2  NOTICE OF PROPOSED TRANSFERS

               Prior to any Transfer or attempted Transfer of any Warrants or
any shares of Restricted Common Stock, the Holder shall give ten days' prior
written notice (a "TRANSFER NOTICE") to the Company of Holder's intention to
effect such Transfer, describing the manner and circumstances of the proposed
Transfer, and obtain from counsel to Holder who shall be reasonably satisfactory
to the Company, an opinion that the proposed Transfer of such Warrants or such
Restricted Common Stock may be effected without registration under the
Securities Act. After receipt of the Transfer Notice and opinion, the Company
shall, within five days thereof, notify the Holder as to whether such opinion is
reasonably satisfactory and, if so, such holder shall thereupon be entitled to
Transfer such Warrants or such Restricted Common Stock, in accordance with the
terms of the Transfer Notice. Each certificate, if any, evidencing such shares
of Restricted Common Stock issued upon such Transfer shall bear the restrictive
legend set forth in Section 9.1(a), and the Warrant issued upon such Transfer
shall bear the restrictive legend set forth in Section 9.1(b), unless in the
opinion of such counsel such legend is not required in order to ensure
compliance with the Securities Act. Holder shall not be entitled to Transfer
such Warrants or such Restricted Common Stock until receipt of notice from the
Company under this Section 9.2 that such opinion is reasonably satisfactory.

               9.3  REQUIRED REGISTRATION

               Pursuant to the terms and conditions set forth in Registration
Rights Agreement, the Company shall prepare and file with the Commission not
later than the 60th day after the Closing Date, a Registration Statement
relating to the offer and sale of the Common Stock issuable upon exercise of the
Warrants and shall use its best efforts to cause the Commission to declare such
Registration Statement effective under the Securities Act as promptly as
practicable but no later than 150 days after the Closing Date.

               9.4  TERMINATION OF RESTRICTIONS

               Notwithstanding the foregoing provisions of Section 9, the
restrictions imposed by this Section upon the transferability of the Warrants,
the Warrant Stock and the Restricted Common Stock (or Common Stock issuable upon
the exercise of the Warrants) and the legend requirements of Section 9.1 shall
terminate as to any particular Warrant or share of Warrant

                                      -13-
<PAGE>   14
Stock or Restricted Common Stock (or Common Stock issuable upon the exercise of
the Warrants) (i) when and so long as such security shall have been effectively
registered under the Securities Act and disposed of pursuant thereto or (ii)
when the Company shall have received an opinion of counsel reasonably
satisfactory to it that such shares may be transferred without registration
thereof under the Securities Act. Whenever the restrictions imposed by Section 9
shall terminate as to this Warrant, as hereinabove provided, the Holder hereof
shall be entitled to receive from the Company upon written request of the
Holder, at the expense of the Company, a new Warrant bearing the following
legend in place of the restrictive legend set forth hereon:

               "THE RESTRICTIONS ON TRANSFERABILITY OF THE WITHIN WARRANT
               CONTAINED IN SECTION 9 HEREOF TERMINATED ON __________, _____,
               AND ARE OF NO FURTHER FORCE AND EFFECT."

All Warrants issued upon registration of transfer, division or combination of,
or in substitution for, any Warrant or Warrants entitled to bear such legend
shall have a similar legend endorsed thereon. Whenever the restrictions imposed
by this Section shall terminate as to any share of Restricted Common Stock, as
hereinabove provided, the holder thereof shall be entitled to receive from the
Company, at the Company's expense, a new certificate representing such Common
Stock not bearing the restrictive legend set forth in Section 9.1(a).

               9.5  LISTING ON SECURITIES EXCHANGE

               If the Company shall list any shares of Common Stock on any
securities exchange or quotation system, it will, at its expense, list thereon,
maintain and, when necessary, increase such listing of, all shares of Common
Stock issued or, to the extent permissible under the applicable securities
exchange rules, issuable upon the exercise of this Warrant so long as any shares
of Common Stock shall be so listed during any such Exercise Period.

               10.  SUPPLYING INFORMATION

               The Company shall cooperate with Holder in supplying such
information as may be reasonably necessary for Holder to complete and file any
information reporting forms presently or hereafter required by the Commission as
a condition to the availability of an exemption from the Securities Act for the
sale of any Warrant or Restricted Common Stock.

               11.  LOSS OR MUTILATION

               Upon receipt by the Company from Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and indemnity reasonably satisfactory to it (it being
understood that the written agreement of the Holder shall be sufficient
indemnity), and in case of mutilation upon surrender and cancellation hereof,
the Company will execute and deliver in lieu hereof a new Warrant of like tenor
to Holder; provided, in the case of mutilation no indemnity shall be required if
this Warrant in identifiable form is surrendered to the Company for
cancellation.

                                      -14-
<PAGE>   15
               12.  OFFICE OF THE COMPANY

               As long as any of the Warrants remain outstanding, the Company
shall maintain an office or agency (which may be the principal executive offices
of the Company) where the Warrants may be presented for exercise, registration
of transfer, division or combination as provided in this Warrant.

               13.  LIMITATION OF LIABILITY

               No provision hereof, in the absence of affirmative action by
Holder to purchase shares of Common Stock, and no enumeration herein of the
rights or privileges of Holder hereof, shall give rise to any liability of
Holder for the purchase price of any Common Stock or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

               14.  MISCELLANEOUS

               14.1 NONWAIVER AND EXPENSES

               No course of dealing or any delay or failure to exercise any
right hereunder on the part of Holder shall operate as a waiver of such right or
otherwise prejudice Holder's rights, powers or remedies. If the Company fails to
make, when due, any payments provided for hereunder, or fails to comply with any
other provision of this Warrant, the Company shall pay to Holder such amounts as
shall be sufficient to cover any costs and expenses including, without
limitation, reasonable attorneys' fees, including those of appellate
proceedings, incurred by Holder in collecting any amounts due pursuant hereto or
in otherwise enforcing any of its rights, powers or remedies hereunder.

               14.2 NOTICE GENERALLY

               Except as may be otherwise provided herein, any notice or other
communication or delivery required or permitted hereunder shall be in writing
and shall be delivered personally or sent by certified mail, postage prepaid, or
by a nationally recognized overnight courier service, and shall be deemed given
when so delivered personally or by overnight courier service, or, if mailed,
three days after the date of deposit in the United States mails, as follows:

               (a)  if to the Company, to:

                    PopMail.com  Inc.
                    1331 Corporate Drive, Suite 350
                    Irving, TX  75038
                    Attention:  Stephen D. King
                    (972) 550-5500
                    (972) 550-5581 (Fax)

                    with a copy to:

                                      -15-
<PAGE>   16
                    Maslon Edelman Borman & Brand, LLP
                    3300 Norwest Center
                    Minneapolis, MN  55402
                    Attention:  William M. Mower
                    (612)  672-8358
                    (612)  672-8397 (Fax)

               (b)  if to the Holder, to:

                    The Shaar Fund Ltd.,
                    c/o Levinson Capital Management
                    2 World Trade Center, Suite 1820
                    New York, NY 10048
                    Attention:  Samuel Levinson
                    (212) 432-7711
                    (212) 432-7771 (Fax)

                    with a copy to:

                    Cadwalader, Wickersham & Taft
                    100 Maiden Lane
                    New York, NY 10038
                    Attention:  Dennis J. Block, Esq.
                    (212) 504-5555
                    (212) 504-5557 (Fax)

The Company or the Holder may change the foregoing address by notice given
pursuant to this Section 14.2.

               14.3 INDEMNIFICATION

               The Company agrees to indemnify and hold harmless Holder from and
against any liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, claims, costs, attorneys' fees, expenses and disbursements of
any kind which may be imposed upon, incurred by or asserted against Holder in
any manner relating to or arising out of any failure by the Company to perform
or observe in any material respect any of its covenants, agreements,
undertakings or obligations set forth in this Warrant; provided, however, that
the Company will not be liable hereunder to the extent that any liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, claims,
costs, attorneys' fees, expenses or disbursements are found in a final
nonappealable judgment by a court to have resulted from Holder's gross
negligence, bad faith or willful misconduct in its capacity as a stockholder or
warrantholder of the Company.

               14.4 REMEDIES

                  Holder in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific
performance of its rights under Section 9 of this Warrant. The Company agrees
that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of the provisions of Section 9 of this Warrant and

                                      -16-
<PAGE>   17
hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate.

               14.5 SUCCESSORS AND ASSIGNS

               Subject to the provisions of Sections 3.1 and 9, this Warrant and
the rights evidenced hereby shall inure to the benefit of and be binding upon
the successors of the Company and the successors and assigns of Holder. The
provisions of this Warrant are intended to be for the benefit of all Holders
from time to time of this Warrant and, with respect to Section 9 hereof, holders
of Warrant Stock, and shall be enforceable by any such Holder or holder of
Warrant Stock.

               14.6 AMENDMENT

               This Warrant and all other Warrants may be modified or amended or
the provisions hereof waived with the written consent of the Company and Holder.

               14.7 SEVERABILITY

               Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Warrant shall be prohibited by or invalid under
applicable law, such provision shall only be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Warrant.

               14.8 HEADINGS

               The headings used in this Warrant are for the convenience of
reference only and shall not, for any purpose, be deemed a part of this Warrant.

               14.9 GOVERNING LAW

               This Warrant shall be governed by the laws of the State of New
York, without regard to the provisions thereof relating to conflicts of law.

                            [SIGNATURE PAGE FOLLOWS.]

                                      -17-
<PAGE>   18

               IN WITNESS WHEREOF, the Company has caused this Warrant to be
duly executed and its corporate seal to be impressed hereon and attested by its
Secretary or an Assistant Secretary.

Dated:  May 2, 2000

                                   PopMail.com  Inc.

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

Attest:

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

<PAGE>   19
                                                                       EXHIBIT A

                                SUBSCRIPTION FORM

                 [To be executed only upon exercise of Warrant]

               The undersigned registered owner of this Warrant irrevocably
exercises this Warrant for the purchase of __________ shares of Common Stock of
PopMail.com Inc. and herewith makes payment therefor, all at the price and on
the terms and conditions specified in this Warrant and requests that
certificates for the shares of Common Stock hereby purchased (and any securities
or other property issuable upon such exercise) be issued in the name of and
delivered to

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

whose address is

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

and, if such shares of Common Stock shall not include all of the shares of
Common Stock issuable as provided in this Warrant, that a new Warrant of like
tenor and date for the balance of the shares of Common Stock issuable hereunder
be delivered to the undersigned.

                                           -------------------------------------
                                                (Name of Registered Owner)

                                           -------------------------------------
                                              (Signature of Registered Owner)

                                           -------------------------------------
                                                      (Street Address)

                                           -------------------------------------
                                            (City)      (State)     (Zip Code)

                                      A-1
<PAGE>   20

                                 NOTICE: The signature on this subscription must
                                 correspond with the name as written upon the
                                 face of the within Warrant in every particular,
                                 without alteration or enlargement or any change
                                 whatsoever.

                                      A-2
<PAGE>   21
                                                                       EXHIBIT B

                                 ASSIGNMENT FORM

               FOR VALUE RECEIVED the undersigned registered owner of this
Warrant hereby sells, assigns and transfers unto the Assignee named below all of
the rights of the undersigned under this Warrant, with respect to the number of
shares of Common Stock set forth below:

                                                          No. of Shares of
Name and Address of Assignee                                Common Stock
----------------------------                                ------------

and does hereby irrevocably constitute and appoint

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

attorney-in-fact to register such transfer on the books of PopMail.com Inc.
maintained for the purpose, with full power of substitution in the premises.

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

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

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

                                           -------------------------------------
                                                   (Print Name of Witness)

                                           -------------------------------------
                                                    (Witness's Signature)

                                 NOTICE: The signature on this subscription must
                                 correspond with the name as written upon the
                                 face of the within Warrant in every particular,
                                 without alteration or enlargement or any change
                                 whatsoever.

                                      B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]