Document:

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                                                                    EXHIBIT 10.5

                  FIRST AMENDMENT TO ASSET PURCHASE AGREEMENT
                    AND FIRST AMENDMENT TO ESCROW AGREEMENT

        This First Amendment to Asset Purchase Agreement and First Amendment to
Escrow Agreement (this "First Amendment") is made as of this __th day of May,
                        ---------------
2001 by and among Cisco Systems, Inc, a California corporation ("Cisco Inc."),
                                                                 ----------
CAIS Internet, Inc., a Delaware corporation ("CAIS Internet"), CAIS Software
                                              -------------
Solutions, Inc., a California corporation ("CAIS Software"), and CAIS, Inc., a
                                            -------------
Virginia corporation ("CAIS Inc."), with the agreement and consent of Cisco
                       --------
Systems Capital Corporation ("Lender"), as undersigned. Capitalized terms used
                              ------
but not otherwise defined herein shall have the meaning set forth in the
Purchase Agreement (as defined below).

                                   WITNESSETH

                  WHEREAS, Cisco Inc., CAIS Software, CAIS Internet, and CAIS
Inc. entered into an Asset Purchase Agreement (the "Purchase Agreement"), dated
                                                    ------------------
as of October 19, 2000, providing for the purchase by Cisco Inc. from CAIS
Software and CAIS Inc. of all of the assets, properties and rights of CAIS
Software and CAIS Inc. relating to the Business;

                  WHEREAS, pursuant to Article VIII of the Purchase Agreement
("Article VIII"), an Initial Escrow Amount in the original principal sum of
  ------------
$15,000,000 plus a Special Escrow Amount in the original principal sum of
$25,500,000 were each to be held and administered as an Escrow Fund by the
Escrow Agent for the benefit of Cisco Inc., subject to the rights of the Escrow
Participants to receive the sums remaining at the end of the Escrow Periods, all
according to the terms and conditions set forth in Article VIII;

                  WHEREAS, pursuant to Article VIII, Cisco Inc., CAIS Software,
CAIS Internet, CAIS Inc., and Escrow Agent entered into that certain Escrow
Agreement ("Escrow Agreement") dated as of December 4, 2000, and the Escrow
            ----------------
Amount is, as of the date hereof, being held and administered by the Escrow
Agent in accordance with the terms of the Escrow Agreement;

                  WHEREAS, CAIS Software, CAIS Internet, and CAIS Inc. have each
requested Cisco Inc. to agree to the early release of $41,300,000 from the
$41,325,000 comprising the Escrow Amount (original principal balance of
$40,500,000, plus interest accrued thereupon in the approximate amount of
$825,000, as of May 1, 2001), all for the purposes of funding (i) a payment to
Science Applications International Corporation ("SAIC") in the amount of
$13,500,000 in full settlement of SAIC's lien claim against the Escrow Fund and
obtaining related releases, and (ii) a distribution to Lender in the amount of
$27,800,000 in payment of certain Obligations outstanding under the Credit
Agreement (as defined hereinafter) and related loan documents, with such release
to be made notwithstanding the fact that the Escrow Periods provided for under
Article VIII have not terminated as of the date hereof, and Cisco Inc. is
willing to consent to such early release on the terms and conditions set forth
herein below;

                  WHEREAS, CAIS Inc. and Lender are parties to that certain
Agreement dated as of June 30, 1999 (as amended, modified, renewed or extended
from time to time, the "Credit Agreement") providing for extensions of credit by
                        ----------------
Lender to CAIS Inc., and in connection therewith,
<PAGE>

CAIS Internet delivered to Lender that certain Guaranty dated as of June 30,
1999 (as amended, modified, renewed or extended from time to time, the
"Guaranty"), whereby CAIS Internet guaranteed the indebtedness and other
 --------
obligations of CAIS Inc. to Lender under the Credit Agreement;

                  WHEREAS, in connection with the Credit Agreement, CAIS Inc.
(i) made and delivered that certain Security Agreement ("Borrower Security
                                                         -----------------
Agreement") dated as of June 30, 1999, for the benefit of Lender, granting
---------
Lender a security interest in, among other things, all accounts, contract
rights, rights to payment, money and instruments, and other obligations of any
kind owed to CAIS Inc., and all general intangibles, investment property, and
other personal property of CAIS Inc., and all proceeds of any of the foregoing,
as more particularly set forth in the Borrower Security Agreement, and (ii) made
and delivered as debtor those certain UCC-1 financing statements, which
financing statements were duly filed to perfect Lender's security interest under
the Borrower Security Agreement;

                  WHEREAS, in connection with the Guaranty, CAIS Internet (i)
made and delivered that certain Security Agreement ("Guarantor Security
                                                     ------------------
Agreement") dated as of June 30, 1999, for the benefit of Lender, granting
---------
Lender a security interest in, among other things, all accounts, contract
rights, rights to payment, money and instruments, and other obligations of any
kind owed to CAIS Internet, and all general intangibles, investment property,
and other personal property of CAIS Internet, and all proceeds of any of the
foregoing, as more particularly set forth in the Guarantor Security Agreement,
and (ii) made and delivered as debtor those certain UCC-1 financing statements,
which financing statements were duly filed to perfect Lender's security interest
under the Guarantor Security Agreement;

                  WHEREAS, the parties hereto desire to amend the provisions the
Purchase Agreement, including Article VIII thereof, and the provisions of the
Escrow Agreement to provide, among other things, for certain immediate
disbursements therefrom, all on terms and conditions as more particularly set
forth herein below.

                  NOW, THEREFORE, the parties hereto, in consideration of the
confirmation of the foregoing recitals and the mutual covenants contained
herein, and intending to be legally bound, hereby agree as follows:

         SECTION 1 Amendment to Purchase Agreement, Article VIII, Section 8.4,
                   ----------------------------------------------------------
and Escrow Agreement, Section 3. The provisions of Section 8.4 of Article VIII
-------------------------------
of the Purchase Agreement and the provisions of Section 3 of the Escrow
Agreement are each hereby deleted in their entirety and are amended and restated
to read as follows:

                  [Section 8.4 / Section 3.] Disbursements from Escrow; Escrow
                                             ---------------------------------
                  Period; Insurance Option; Claims.
                  --------------------------------

                           (a) Disbursements from Escrow. The parties shall
                               -------------------------
                               forthwith request and instruct the Escrow Agent
                               =========
                               to make the following disbursements from the
                               Escrow Fund pursuant to the terms of separate
                               joint written

                                       2
<PAGE>

                           escrow instructions to Escrow Agent to be delivered
                           by Parent, Seller, Affiliate, Buyer, and Lender:

                                    (i)   To SAIC, a disbursement in the amount
                                    of $13,500,000.00 (Thirteen Million Five
                                    Hundred Thousand and 00/100 Dollars);

                                    (ii)  To Cisco Systems Capital Corporation,
                                    forthwith, a disbursement in the amount of
                                    $27,800,000.00 (Twenty-Seven Million Eight
                                    Hundred Thousand and 00/100 Dollars); and

                                    (iii) Upon presentation to Escrow Agent of
                                    an Officer's Certificate from Buyer stating
                                    that the Claims Insurance Policy (as defined
                                    below) is in force, a disbursement to CAIS
                                    Internet, Inc. of cash in the amount
                                    necessary to reduce the Escrow Fund to a
                                    balance of $1,000.00 (One Thousand and
                                    00/100 Dollars). Buyer and Lender agree that
                                    such cash disbursement shall be free and
                                    clear of any lien or claim of Buyer or of
                                    Lender.

                           (b) Escrow Period. The remaining portion of the
                               -------------
                           Escrow Amount, in the sum of $1,000.00 (One Thousand
                           and 00/100 Dollars), plus any additional interest or
                           earnings subsequently accrued thereupon, plus any
                           additional sums required by the Escrow Agent to be
                           deposited by Buyer in order to maintain a minimum
                           balance in the account in which the Escrow Amount is
                           held, shall remain in the Escrow Fund until, and the
                           escrow period (the "Escrow Period") shall terminate
                                               -------------
                           at, 11:59 p.m. Pacific Standard Time on, the earlier
                           of (i) December 4, 2006, or (ii) the date specified
                           by Buyer in a notice (the "Notice") delivered to the
                                                      ------
                           Escrow Agent. Buyer shall pay the Escrow Agent such
                           fees as are established by the Fee Schedule attached
                           to and incorporated in the Escrow Agreement.

                           (c) Insurance Option. Parent, Seller, and Affiliate,
                               ----------------
                           collectively, covenant and agree that on or before
                           June 30, 2001, they shall either (i) obtain an
                           insurance policy fully pre-paid by or on behalf of
                           Parent, naming Buyer as insured and providing
                           coverage in an aggregate amount of not less than
                           $5,000,000 (Five Million and 00/100 Dollars) with
                           coverage commencing on or before June 30, 2001, and
                           continuing through December 4, 2006, insuring Buyer
                           against any Buyer Damages which Buyer could assert
                           under Section 8.2(a)(iv) of the Purchase Agreement,
                           with said policy to be issued by an insurer and upon
                           terms and conditions reasonably acceptable to Buyer
                           (a "Claims Insurance Policy"), or (ii) obtain a
                           Claims Insurance Policy providing a benefit amount of
                           less than $5,000,000 and, together therewith, either
                           deposit

                                       3
<PAGE>

                           cash in the Escrow Fund, or provide a letter of
                           credit for the benefit of Buyer, in form and by an
                           issuer reasonably acceptable to Buyer, in such amount
                           (the "Deductible Amount"), as may be required to
                           supplement coverage under the Claims Insurance
                           Policy, or (iii) in the event no Claims Insurance
                           Policy is then in place, deposit $5,000,000 (the
                           "Cash Substitute") in ready funds in the Escrow Fund.
                           Buyer and Parent agree to cause instructions to be
                           delivered to the Escrow Agent releasing from the
                           Escrow Fund the Cash Substitute, together with all
                           interest earned thereon, to or for the account of
                           Parent on such date, whether before or after June 30,
                           2001, as Parent, Seller or Affiliate shall furnish
                           the Claims Insurance Policy and any required
                           Deductible Amount. Parent, Seller, or Affiliate shall
                           reimburse Buyer's reasonable expenses, including
                           legal fees and costs, incurred in connection with
                           their exercise of the insurance option and related
                           transactions set forth in this sub-paragraph. Buyer
                                                                         =====
                           shall provide Parent with a monthly written statement
                           =====================================================
                           of the amount of such expenses on a one-month
                           =============================================
                           trailing basis.
                           ==============

                           (d) Security Agreement; Power of Attorney. The
                               -------------------------------------
                           obligations of Parent, Seller, and Affiliate under
                           subparagraph (c) hereof shall be secured by, and
                           Parent, Seller, and Affiliate hereby grant, a
                           security interest in favor of Buyer attaching to (i)
                           their rights under and in connection with the Escrow
                           Agreement and the Escrow Fund and any Claims
                           Insurance Policy; (ii) all equipment of Parent,
                           Seller, and Affiliate that has been purchased from
                           Buyer or an affiliate of Buyer, and all data,
                           software, and other information to the extent stored
                           therein; and (iii) all proceeds of the collateral
                           described in the preceding sub-clauses (i) and (ii).
                           Parent, Seller, and Affiliate, and each of them,
                           hereby agree to execute such financing statements and
                           related documents and provide such other cooperation
                           as may be necessary to accomplish the foregoing and
                           further hereby irrevocably makes, constitutes, and
                           appoints Buyer as its true and lawful agent and
                           attorney-in-fact for the purposes of executing and
                           filing any such financing or continuation statements
                           and authorizes Buyer to file any such financing or
                           continuation statements without the signature of
                           Parent, Seller, and/or Affiliate as debtor to the
                           extent permitted by applicable law.

                           (e) Release of Security Interests.
                               -----------------------------

                                    (i)   Upon satisfaction of the obligations
                           of Parent, Seller and Affiliate under subparagraph
                           (c) hereof, Buyer shall release, and promptly cause
                           to be filed releases and termination statements in
                           such forms as may reasonably be requested by Parent,
                           of all its liens and

                                       4
<PAGE>

                           security interests in the assets, rights and
                           properties of Parent and Affiliate, except that Buyer
                           shall not release its security interest in the rights
                           of Parent and Affiliate under and in connection with
                           the Escrow Agreement and the Escrow Fund and the
                           Claims Insurance Policy, and proceeds thereof
                           (collectively, the "Retained Liens"), which security
                           interest shall continue in order to secure the
                           obligations of Parent, Seller, and Affiliate under
                           Article VIII of the Purchase Agreement, the Escrow
                           Agreement, and the First Amendment. Except for the
                           Retained Liens, all claims of Buyer upon Parent,
                           Seller, and Affiliate with respect to Buyer Damages
                           under the Purchase Agreement and the Escrow Agreement
                           shall be otherwise unsecured.

                                    (ii)  Buyer shall fully release the Retained
                           Liens promptly following the last to occur of the
                           following:

                                             (x) the sixth anniversary after the
                           Closing Date under the Purchase Agreement has passed
                           and Parent, Seller, and Affiliate have not breached
                           their obligations under the First Amendment, or, to
                           the extent continuing or revived, the Loan Documents;
                           and

                                             (y) Buyer has been paid in full, or
                           has released, all claims in connection with Buyer
                           Damages under the terms of the Escrow Agreement and
                           Annex A thereto or, alternately, all applicable
                           Escrow Periods have run under the terms of the Escrow
                           Agreement and Annex A thereto and no claims for Buyer
                           Damages are then outstanding.

                           (f) Release of Escrow Amounts Not Intended to Release
                               -------------------------------------------------
                           Or Modify Indemnities. Notwithstanding the releases
                           ---------------------
                           from the Escrow Fund, and the option for insurance to
                           be placed in favor of Buyer, all as authorized and
                           instructed pursuant to this Section, the scope of
                           Seller's and Parent's indemnification of the Seller
                           Indemnified Persons pursuant to the Purchase
                           Agreement shall remain unmodified and undiminished,
                           except that such indemnification shall not have the
                           benefit of the cash disbursed from the Escrow Fund
                           pursuant to Section 3(a) of the Escrow Agreement as
                           amended by the First Amendment, and provided further
                           that such indemnification shall be an unsecured claim
                           except to the extent otherwise set forth herein.

         SECTION 2 Revival of Obligations. Notwithstanding anything to the
                   ----------------------
contrary in this First Amendment, a material term of the consideration for the
agreement of Cisco Inc. hereunder to permit early releases of the Escrow Fund,
and an express condition to such agreement, are the payments to be

                                       5
<PAGE>

made to Lender pursuant to the Section 1 herein above. Therefore, in the event
that any such payment to Lender, or any portion thereof, is rescinded, voided,
or must otherwise be refunded by Lender or otherwise paid or released by Lender,
for any reason whatsoever, then all such sums shall be returned by Lender
directly to the Escrow Fund to serve as a source of payment for Buyer's Damages
as originally contemplated under Article VIII of the Purchase Agreement, and the
related obligations of CAIS Software, CAIS Internet, and CAIS Inc. thereunder
shall be automatically revived and reinstated, in full force and effect, all to
the extent that and as though such releases from the Escrow Fund had never been
made, and as if the Purchase Agreement and the Escrow Agreement had never been
amended to permit such releases, and CAIS Software, CAIS Internet, and CAIS Inc.
hereby agree to execute such other and further documents as Cisco Inc. may then
require for the purpose of evidencing and giving notice of the same and hereby
irrevocably appoint Cisco Inc. as their attorney-in-fact for the purpose of
executing such documents.

         SECTION 3 Amendment to Purchase Agreement, Article VIII, Section 8.5.
                   ----------------------------------------------------------
The provisions of Section 8.5 of Article VIII of the Purchase Agreement are
hereby deleted in their entirety and are amended and restated to read as
follows:

                  8.5      Claims upon Escrow Fund.
                           -----------------------
                           (a) Upon receipt by the Escrow Agent, on or before
                           the last day of the Escrow Period, of a certificate
                           signed by any officer of Buyer (an "Officer's
                                                               ---------
                           Certificate"):
                           -----------

                                    (i)   stating that Buyer Damages exist and,
                                    solely in the case of Section 8.2(a)(i),
                                    specifying that such Buyer Damages are in an
                                    aggregate amount greater than $100,000; and

                                    (ii)  specifying in reasonable detail the
                                    individual items of such Buyer Damages
                                    included in the amount so stated, the date
                                    each such item was paid, or properly
                                    accrued or arose, the nature of the
                                    misrepresentation, breach of warranty or
                                    claim to which such item is related;

                           the Escrow Agent shall, subject to the provisions of
                           Sections 8.6 and 8.7 below, deliver to Buyer out of
                           the Escrow Fund, as promptly as practicable, and to
                           the extent sufficient funds remain in the Escrow
                           Fund, a portion of the Escrow Amount (and/or interest
                           or earnings thereon) having a value equal to such
                           Buyer Damages.

         SECTION 4 Amendment to Escrow Agreement, Section 4. The provisions of
                   ----------------------------------------
Section 4 of the Escrow Agreement are hereby deleted in their entirety and are
amended and restated to read as follows:

                                       6
<PAGE>

                  4.       Duties of Escrow Agent. In addition to the Duties set
                           ----------------------
                           forth in Article VIII, the Duties of the Escrow Agent
                           shall include the following:

                                    (a) The Escrow Agent shall hold and
                                    safeguard the Escrow Fund during the Escrow
                                    Period and shall treat such Escrow Fund as a
                                    trust fund in accordance with the terms of
                                    this Agreement and Article VIII and not as
                                    the property of Buyer or as the property of
                                    Seller, Parent, or Affiliate, and shall hold
                                    and dispose of the Escrow Fund only in
                                    accordance with the terms hereof and of
                                    Article VIII.

                                    (b) Promptly following termination of the
                                    Escrow Period as set forth in Section 3(b)
                                    of the Escrow Agreement, as the same may
                                    from time to time be amended, the Escrow
                                    Agent shall release (i) that part of the
                                    remaining Escrow Amount and any Earnings
                                    thereon in excess of any amount sufficient
                                    to satisfy any unsatisfied claims specified
                                    in any Officer's Certificate theretofore
                                    delivered to the Escrow Agent prior to the
                                    termination of the Escrow Period with
                                    respect to facts and circumstances existing
                                    prior to expiration of the Escrow Period and
                                    shall deliver said sums to the Escrow
                                    Participants, at their addresses and in the
                                    proportions set forth in Annex B and (ii)
                                    that part, if any, of the Escrow Fund
                                    deposited by Buyer in order to maintain a
                                    minimum balance in the account in which the
                                    Escrow Amount is held, and any Earnings
                                    thereon, and shall deliver said sums
                                    according to the written instructions of
                                    Buyer. As soon as all Buyer's Damages claims
                                    have been resolved, the Escrow Agent shall
                                    deliver the remaining Escrow Amount (and
                                    Earnings thereon) that is not required to
                                    satisfy such claims and expenses to the
                                    Escrow Participants, at their addresses and
                                    in the proportions set forth in Annex B.

                                    (c) Any Earnings on the Escrow Fund shall be
                                    distributed to Buyer and/or the Escrow
                                    Participants, as the case may be, in
                                    accordance with, and in proportion to, the
                                    distributions of the Escrow Amount made to
                                    such parties, but without reference to any
                                    distributions made to other parties.

         SECTION 5 Amendment to Purchase Agreement, Section 9.5. Sub-clause (b)
                   --------------------------------------------
of Section 9.5 of the Purchase Agreement is hereby deleted in its entirety and
is amended and restated to read as follows:

                           (b) are not intended to confer upon any other person
                           any rights or remedies hereunder, except that Cisco
                           Systems Capital Corporation

                                       7
<PAGE>

                           shall be an express third-party beneficiary of
                           Section 8.4 this Agreement;

         SECTION 6 General.
                   -------

                           (a) Purchase Agreement and Escrow Agreement Not
                               -------------------------------------------
Otherwise Affected. Except as expressly amended pursuant hereto, the Purchase
------------------
Agreement and the Escrow Agreement shall remain unchanged and in full force and
effect according to their terms, which are hereby ratified and confirmed. The
parties' execution and delivery of this First Amendment shall not be deemed to
create a course of dealing or otherwise create any express or implied duty to
enter into other or further amendments to or modifications of any agreements
existing between any of them.

                           (b) Recitals Are Material Terms. The recitals set
                               ---------------------------
forth above are hereby confirmed and agreed to by the parties hereto as true and
correct in all respects as of the date hereof and shall comprise material terms
of this First Amendment.

                           (c) No Reliance. The parties hereto acknowledge and
                               -----------
confirm to each other that each such party is executing this First Amendment on
the basis of its own investigation and for its own reasons, without reliance
upon any agreement, representation, understanding or communication by or on
behalf of any other party hereto.

                           (d) Binding Effect. This First Amendment shall be
                               --------------
binding upon, inure to the benefit of and be enforceable by the parties hereto
and their respective successors and assigns.

                           (e) Governing Law. This First Amendment shall be
                               -------------
governed by, and construed in accordance with, the law of the State of
California.

                           (f) Complete Agreement; Amendments. This First
                               ------------------------------
Amendment contains the entire and exclusive agreement of the parties hereto with
reference to the matters expressly set forth herein. This First Amendment
supersedes all prior commitments, drafts, communications, discussions and
understandings, oral and written, with respect thereto. This First Amendment may
not be modified, amended or otherwise altered except in accordance with the
terms of the Purchase Agreement.

                           (g) Severability. Whenever possible, each provision
                               ------------
of this First Amendment shall be interpreted in such manner as to be effective
and valid under all applicable laws and regulations. If, however, any provision
of this First Amendment shall be prohibited by or invalid under any such law or
regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed
modified to conform to the minimum requirements of such law or regulation, or,
if for any reason it is not deemed so modified, it shall be ineffective and
invalid only to the extend of such prohibition or invalidity without

                                       8
<PAGE>

affecting the remaining provisions of this First Amendment, or the validity or
effectiveness of such provision in any other jurisdiction.

                           (h) Counterparts. This First Amendment may be
                               ------------
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement.

                           (i) Interpretation. This First Amendment is the
                               --------------
result of negotiations between the parties hereto, and has been reviewed by
their respective counsel, and is therefore the product of all parties hereto.
Accordingly, this First Amendment and any alleged ambiguities herein shall not
be construed against any party, including by reason of such party's involvement
in the preparation hereof.

                  (j) Form of Releases; Further Assurances. Where Buyer is
                      ------------------------------------
obligated hereunder to cause the release of security interests in the asset of
any party, it is understood, and Buyer hereby confirms, that such obligation
includes the execution and delivery of such Uniform Commercial Code termination
statements, lien releases, termination of assignments of trade marks and
copyrights, discharges of security interests, and other similar discharges and
release documents (including, if applicable, in recordable form) as are
necessary or as are reasonably requested by the debtor party to release the
security interests, financing statements and all other notices of security
interests and liens in favor of Buyer or its affiliates. The parties agree to
execute and deliver to one another such additional documents and additional
information as any of them may reasonably require to carry out the agreements
and terms of this First Amendment.

                  IN WITNESS WHEREOF, the undersigned have caused this First
Amendment to be executed and delivered by their respective officers, duly
authorized, all as of the date first written above.

                                       CAIS INTERNET, INC.

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

                                       CAIS SOFTWARE SOLUTIONS, INC.

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

                                       9
<PAGE>

                                       CAIS, INC.

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

                                       CISCO SYSTEMS, INC.

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

THE PROVISIONS SET FORTH HEREIN ABOVE
ARE HEREBY AGREED AND CONSENTED TO
AS OF THE DATE FIRST WRITTEN ABOVE:

                                       CISCO SYSTEMS CAPITAL CORPORATION

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

                                       10<PAGE>

                                                                    Exhibit 4(B)

                             SUBSCRIPTION AGREEMENT
                             ----------------------

Date:  __________ __, 2001

Netplex Systems, Inc.
1800 Robert Fulton Drive
Second Floor
Reston, VA  20191

    Re:   Subscription to Purchase Shares of Common Stock on Netplex
          Systems, Inc.  Using Deductions from Salary

Ladies and Gentlemen:

    1.      Subject to the limitations contained below, the undersigned hereby
subscribes for ______________ (____) shares (each, a "Share" and collectively,
                                                      -----
the "Shares") of the common stock, $0.01 par value of Netplex Systems, Inc., a
     ------
Delaware corporation (the "Company").  The undersigned hereby agrees to pay a
                           -------
purchase price per Share equal to the final per share offering price of the
Company's common stock as sold in the public rights offering (the "Rights
                                                                   ------
Offering") of the Company's common stock (the "Purchase Price"), if all Shares
--------                                       --------------
are purchased.  In the event of any change in the offering price in the Rights
Offering, the Company and the undersigned agree that the Purchase Price shall be
equitably adjusted.  The Purchase Price shall be paid by the Company (or its
current affiliate, The Netplex Group, Inc.) deducting up the Purchase Price from
the undersigned's salary (after all taxes and other withholdings as required by
law) ("Installment Payment(s)") until the entire Purchase Price is paid in full.
       ----------------------
The undersigned acknowledges and agrees to such salary deduction and will
execute such documents as may be requested by the Company to effect such salary
deduction.

Notwithstanding the foregoing, at any time the undersigned will only own and the
Company will only be deemed to have sold the number of Shares equal to the then
total amount of the Installment Payments made by the undersigned divided by the
per share Purchase Price (the "Sold Shares").  At any time after making one or
                               -----------
more Installment Payments, the undersigned may request in writing that the
Company deliver to the undersigned the Sold Shares then owned by the
undersigned.  If at any time, the undersigned's employment is terminated with
the Company or The Netplex Group, Inc. for any reason, the Company shall no
further obligation to sell any additional Shares to the undersigned in excess of
Sold Shares.

The undersigned acknowledges that any Installment Payment, may be used
immediately upon acceptance by the Company for its working capital needs.

    2.      To induce the Company to accept this subscription for Shares, the
undersigned hereby represents, warrants and agrees that:

            (a)  Any information provided to the Company by the undersigned, is
true and correct in all respects as of the date hereof.

            (b)  The undersigned is over 21 years of age, and the address set
forth below is the true residence and domicile of the undersigned, and the
undersigned has no present intention of becoming a resident or domiciliary of
any other state or jurisdiction.
<PAGE>

            (c)  The undersigned has had an opportunity to ask questions of and
receive answers from the Company concerning the Company and all other matters
pertinent to an investment in the Shares, and all such questions have been
answered to the full satisfaction of the undersigned.  The undersigned has been
given access to the Company's books and records and all other documents and
information that the undersigned has requested relating to an investment in the
Shares.  No oral representations have been made and no oral information has been
furnished to the undersigned or his advisor(s) in connection with the purchase,
sale and offering of Shares.

            (d)  The undersigned understands that the Shares have not been
registered under the Securities Act of 1933, as amended (the "Securities Act"),
                                                              --------------
or under any state blue sky or securities law, and are being sold in reliance on
exemptions thereunder, that they have not been reviewed or approved by the
Securities and Exchange Commission or by any other federal or state authority or
agency, and that no such authority or agency has passed on the accuracy or
adequacy of the Memorandum or the merits of an investment in the Shares.

            (e)  The undersigned is an "accredited investor" as that term is
                                      -------------------
defined in Rule 501 of Regulation D under the Securities Act.

            (f)  The undersigned is acquiring the Shares for the undersigned's
own account, for investment purposes only, and not for, with a view to or in
connection with any resale or other distribution thereof, in whole or in part.

            (g)  The undersigned has carefully considered and has, to the extent
he believes appropriate, discussed with his professional legal, tax, accounting
and financial advisors the suitability of an investment in the Company for his
particular tax and financial situation and has determined that the Shares are a
suitable investment for him.

            (h)  The undersigned has such knowledge and experience in financial
and business matters that the undersigned is capable of evaluating the merits
and risks of an investment in the Company.

            (i)  The undersigned acknowledges and understands that:

                 (i)  The Shares are a speculative investment and involve
substantial risks.

                (ii)  The Company has limited financial resources and the
Company has limited operating history.

               (iii)  The Shares will constitute "restricted securities" within
the meaning of Rule 144 promulgated under the Securities Act; there are
substantial restrictions on the transferability of the Shares; there may not
be any public market for the Shares; the Shares cannot be resold by the Company
unless they are registered under the Securities Act, and registered or qualified
under applicable state securities laws, or unless, in the opinion of counsel
satisfactory to the Company, an exemption from such registration and
qualification is available; Rule 144 is not now available to provide an
exemption under the Securities Act for resale of the Shares, and no assurance
can be given that Rule 144 will become available in the future; and accordingly,
it may not be possible for the Company to liquidate the undersigned's investment
in the Shares when the undersigned so desires.

            (j)  The undersigned:

                 (i)  is able to bear the full economic risk of an investment in
the Shares;

                                       2
<PAGE>

                (ii)  is able to hold the Shares indefinitely;

               (iii)  is able to afford a complete loss of the undersigned's
investment in the Shares;

                (iv)  has adequate financial means of providing for any current
needs and possible personal contingencies;

                 (v)  has no need for liquidity of the investment in the Shares;
and

                (vi)  does not have an overall commitment to investments which
are not readily marketable that is disproportionate to the undersigned's net
worth and the undersigned's investment in the Shares will not cause such overall
commitment to become excessive.

     3.  The undersigned understands the meaning and legal consequences of the
representations and warranties contained in Section 2 hereof, and that the
Company intends to rely upon them.  The undersigned hereby agrees to indemnify
and hold harmless the Company and each director, officer and agent thereof from
and against any and all losses, damages, liabilities and expenses arising out of
or in connection with any breach of, or inaccuracy in, any representation or
warranty of the undersigned, whether contained in this Subscription Agreement or
otherwise.

     4.  To induce the Company to accept this subscription for Shares, the
undersigned hereby agrees that within five (5) days after receipt of written
request from the Company, the undersigned will provide such information and
execute and deliver such documents as the Company may reasonably request to
comply with any and all laws and ordinances to which the Company may be subject,
including, without limitation, the securities laws of the United States of
America or any other jurisdiction.

     5.  The undersigned hereby agrees that any transfer of the Shares will only
be made in compliance with all applicable laws.  The undersigned further agrees
that the Company or its transfer agent(s) may maintain "stop transfer" orders
with respect to the Shares and that in addition to any other legends which
counsel for the Company shall deem necessary or desirable to cause the sale of
the Shares to the undersigned to be exempt under the blue sky or securities laws
of any state, each of the certificates (if any) for the Shares, in addition to
any other required legends, will bear a conspicuous legend in substantially the
following form:

     THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND
     HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
     QUALIFIED UNDER THE SECURITIES LAWS OF ANY JURISDICTION.  SUCH SECURITIES
     MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS (I)
     THEY ARE TRANSFERRED PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
     SAID ACT AND QUALIFICATION UNDER SUCH LAWS OR (II) THE COMPANY HAS RECEIVED
     AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
     AND QUALIFICATION ARE NOT REQUIRED.

                                       3
<PAGE>

5A.  If the Company at any time proposes to register any of its securities under
the Securities Act of 1933 as amended (the "Securities Act") for sale to the
                                            --------------
public (except pursuant to the Rights Offering), whether for its own account or
for the account of other security holders or both (except with respect to
registration statements on Forms S-4, S-8 or another form not available for
registering the Shares for sale to the public), at such time it will promptly
give written notice to the undersigned of its intention to do so, at least 10
days prior to the filing of any registration statement under the Securities Act.
Upon the written request of the undersigned, received by the Company within five
days after the giving of any such notice by the Company, to register all of its
Shares, the Company will at its sole cost and expense use its reasonable efforts
to cause the Shares to be included in the securities to be covered by the
registration statement proposed to be filed by the Company, all to the extent
requisite to permit the sale or other disposition by the undersigned (in
accordance with its written request) of such Shares so registered.  In the event
that any registration pursuant to this Section 5A shall be, in whole or in part,
an underwritten public offering of Common Stock, the number of shares of Shares
to be included in such an underwriting may be reduced if the managing
underwriter shall be of the opinion that failure to make such reduction would
adversely affect the marketing of the securities to be sold by the Company
therein, provided, however, that such reduction shall be applied in such manner
that the shares to be sold shall be allocated among the selling holders pro rata
based on the number of securities proposed to be sold by each.  If any holder of
Shares disapproves of the terms of any such underwriting, it may elect to
withdraw therefrom by giving written notice to the Company.  Any Shares or other
securities withdrawn or excluded from such underwriting shall be withdrawn from
such registration.  Notwithstanding the foregoing provisions, the Company may
withdraw any registration statement referred to in this Section without thereby
incurring any liability to the holders of Shares.

     6.  The undersigned hereby agrees and acknowledges that this Subscription
Agreement is not binding on the Company until the Company accepts it by
executing this Subscription Agreement where indicated.  In addition, the Company
may reject the undersigned's subscription, in whole or in part, in its sole
discretion and will not be obligated to allocate Shares among any subscribers in
any fashion.

     7.  If the Company accepts this Subscription Agreement, the Company
represents and warrants that, as of the date of such acceptance:

          (a)  The Company is a corporation duly organized, validly existing and
in good standing under the laws of the state of Delaware and has all requisite
power and authority to carry on its business as now conducted and as proposed to
be conducted.

          (b)  All action on the part of the Company, necessary for the
authorization, execution and delivery of this Subscription Agreement, the
performance of all obligations of the Company hereunder and thereunder, and the
sale of the Shares has been taken.

          8.  (a)  Neither this Subscription Agreement nor the subscription
represented hereby is transferable or assignable by the undersigned.  Except as
otherwise provided by applicable law, this Subscription Agreement may not be
revoked or canceled by the undersigned, unless the Company, in its sole
discretion, consents to revocation or rejects the subscription.

          (b)  The representations, warranties, understandings and
acknowledgments in this Agreement are true and accurate as of the date hereof,
shall be true and accurate on the date of the acceptance hereof by the Company,
and shall survive thereafter.

                                       4
<PAGE>

          (c)  All notices or other communications to be given or made hereunder
shall be in writing and shall be delivered personally or mailed, by registered
or certified mail, return receipt requested, postage prepaid, to the undersigned
or to the Company, as the case may be, at their respective addresses set forth
herein, or to such subsequent address of which either may provide the other
written notification.

          (d)  This Subscription Agreement shall be governed by, and construed
and enforced in accordance with, the substantive laws of the State of Delaware
applicable to agreements entered into and performed wholly within said State.

          (e)  This Subscription Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

          (f)  This Subscription Agreement, together with agreements referred to
herein, constitutes the entire agreement among the parties hereto with respect
to the subject matter hereof and supersedes all prior agreements,
representations, warranties and understandings in connection therewith.  This
Agreement may be amended only by a writing executed by or on behalf of the
Company and the undersigned.

          (g)  The undersigned agrees that all disputes concerning the Shares
shall be submitted to binding arbitration in accordance with the Rules of the
American Arbitration Association.

                 [Remainder of Page Intentionally Left Blank.]

                                       5
<PAGE>

          IN WITNESS WHEREOF, the undersigned, having read and understood the
foregoing and desiring to be legally bound, has executed this Subscription
Agreement as an instrument under seal on the date set forth below.

                              ------------------------------------------
                              Name of Subscriber (please print)

                              ------------------------------------------
                              Signature

---------------------
Date

Number of Shares:
                 ------------
Amount of Payment: $
                    ------------

                                       6
<PAGE>

                              Please print information below exactly as you wish
                              it to appear in the records of the Company.

                              ------------------------------------------
                              Name

                              ------------------------------------------
                              ADDRESS:

                              ------------------------------------------
                              Number and Street

                              ------------------------------------------
                              City       State      Zip Code

                              ------------------------------------------
                              Social Security Number or other
                              Taxpayer Identification Number

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

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

                              ------------------------------------------
                              Address for notices (if different from above)

                                       7
<PAGE>

          On this ____ day of _______________, 2001, the Company hereby accepts
the foregoing Subscription Agreement and the subscription described therein for
Shares of the Company's Common Stock, for a total Purchase Price of $
, the receipt of which is hereby acknowledged.

                              Netplex Systems, Inc.

                              By:
                                 ------------------------------------------
                              Name:
                                   ----------------------------------------
                              Its:
                                  -----------------------------------------

                                       8

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