Document:

<PAGE>

                                                                   Exhibit 10.7

                                                                 EXECUTION COPY
                                                                 --------------

                      PREFERRED STOCK PURCHASE AGREEMENT

          PREFERRED STOCK PURCHASE AGREEMENT dated May 8, 2000 (the "Agreement")
by and among InFlow, Inc., a Delaware corporation (the "Company"), and J.P.
Morgan Investment Corporation, Sixty Wall Street SBIC Fund, L.P., First Union
Capital Partners, Inc., Meritage Private Equity Fund, L.P., Meritage Private
Equity Parallel Fund, L.P., Meritage Entrepreneurs Fund, L.P., and Stolberg,
Meehan and Scano II, L.P. (each, an "Investor" and, collectively, the
"Investors").

          1.   Purchase and Sale of Stock.
               --------------------------

               1.1  Sale and Issuance of Series C Preferred Stock.
                    ---------------------------------------------

                    (a)  Prior to the date hereof, the Company has adopted and
filed with the Secretary of State of Delaware the Third Amended and Restated
Certificate of Incorporation in the form attached hereto as Exhibit A (the
                                                            ---------
"Restated Certificate").

                    (b)  Subject to the terms and conditions of this Agreement,
each Investor agrees, severally but not jointly, to purchase from the Company at
the Closing, and the Company agrees to sell and issue to each Investor at the
Closing, that number of shares of the Company's Series C Preferred Stock set
forth opposite such Investor's name on Schedule A hereto for the purchase price
                                       ----------
of $22.00 per share.

               1.2  Closing. The purchase and sale of the Series C Preferred
                    -------
Stock shall take place at the Company's offices located at 938 Bannock Street,
Suite 300, Denver, Colorado 80204 at 10:00 a.m. on May 8, 2000, or at such other
time and place as the Company and the Investors mutually agree upon orally or in
writing (which time and place are designated as the "Closing"). At the Closing,
the Company shall deliver to each Investor a certificate representing the Series
C Preferred Stock that such Investor is purchasing against payment of the
purchase price therefor by wire transfer of immediately available funds.

               1.3  Subsequent Sale of Series C Preferred Stock. The Company may
                    -------------------------------------------
sell up to an additional 2,022,727 shares of Series C Preferred Stock at a price
of not less than $22.00 per share (and otherwise on substantially identical
terms) prior to June 22, 2000 to one or more additional purchasers selected by
the Company. Any such additional purchaser shall execute a purchase agreement in
substantially the form of this Agreement and shall become a party to the Third
Amended and Restated Investors' Rights Agreement in the form attached hereto as
Exhibit B (the "Investors' Rights Agreement") and the Third Amended and Restated
---------
Stockholders' Agreement in the form attached hereto as Exhibit C (the
                                                       ---------
"Stockholders' Agreement"). Notwithstanding the foregoing, and subject to the
following sentences, in the event that the Company issues additional shares of
Series C Preferred Stock at a price per share less than $22.00 per share (the
"Lower Price") prior to June 22, 2000, the Company shall concurrently issue to
each Investor (the "Additional Series C Shares"), for no additional
consideration, that number of additional shares of Series C Preferred Stock that
such Investor
<PAGE>

would have received had it purchased shares pursuant to this Agreement at the
Lower Price. Any Additional Series C Shares issued pursuant to this Section 1.3
shall be treated as if they were issued at the Closing, and the Company and the
Investors shall use their best efforts to amend the Company's Restated
Certificate to (a) reduce the "Original Series C Issue Price" and the "Series C
Conversion Price" (as such terms are defined therein) to equal such Lower Price
and (b) if necessary, authorize the issuance of additional Series C Preferred
Stock in order to issue the Investors the Additional Series C Shares. The
Investors acknowledge that any issuance of Additional Series C Shares pursuant
to this Section 1.3 is intended to make the Investors whole for the issuance of
shares of Series C Preferred Stock by the Company prior to June 22, 2000, and
shall be in lieu of any anti-dilution protection otherwise applicable under the
Company's Restated Certificate.

               1.4  Post-Closing Obligations. In the event that, at any time,
                    ------------------------
the Company's representation and warranty in Section 2.2 is determined not to
have been true when made, the Company shall promptly issue to the Investors, on
a pro rata basis as an adjustment to the purchase price paid for the shares of
Series C Preferred Stock purchased hereunder and without the payment of
additional consideration by the Investors, an additional number of shares of
Series C Preferred Stock such that each Investor would own the same economic
interest and voting power as it would have owned had such representation and
warranty been true and correct in all respects when made. If at the time of an
adjustment pursuant to the preceding sentence any shares of Series C Preferred
Stock purchased hereunder have been converted into Common Stock, the Company
shall issue additional shares of Common Stock with respect to such converted
shares of Series C Preferred Stock based on the conversion ratio that would have
been in effect if such shares had remained outstanding. Any additional shares
issued pursuant to this Section 1.4 shall be treated as if they were issued at
the Closing and shall reflect any anti-dilution adjustments arising from the
date of Closing through the date of such issuance. Concurrently with each such
issuance, the Company shall pay or accrue all dividends or other distributions
which would have been paid or accrued with respect to such additional shares
from the date of Closing through the date of such issuance.

          2.   Representations and Warranties of the Company. The Company hereby
               ---------------------------------------------
represents and warrants to each Investor that, except as set forth on the
Schedule of Exceptions (the "Schedule of Exceptions") attached hereto as
Schedule B, which exceptions shall be deemed to be representations and
----------
warranties as if made hereunder:

               2.1  Organization, Good Standing, Power and Qualification. The
                    ----------------------------------------------------
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware. The Company has all requisite corporate
power and authority to own and operate its property, to lease the property it
operates as lessee and to conduct the business in which it is currently, or is
currently proposed to be, engaged and has the power and authority to execute,
deliver and perform its obligations under this Agreement, the Investors' Rights
Agreement and the Stockholders' Agreement. The Company is duly qualified to
transact business and is in good standing in each jurisdiction in which the
failure to so qualify would have a material adverse effect on the business,
assets or financial condition of the Company (an "MAE").

                                       2
<PAGE>

               2.2  Capitalization and Voting Rights. (a) The authorized, issued
                    --------------------------------
and outstanding capital stock of the Company will consist immediately prior to
the Closing of:

                         (i)   Preferred Stock. 13,720,000 shares of Preferred
                               ---------------
     Stock, par value $0.001 (the "Preferred Stock"), of which (i) 3,310,000
     shares have been designated Series A Preferred Stock (the "Series A
     Preferred Stock"), of which 3,309,953 shares are outstanding, (ii)
     7,000,000 shares have been designated Series B Preferred Stock (the "Series
     B Preferred Stock"), of which 6,896,552 shares are outstanding and (iii)
     3,410,000 shares have been designated Series C Preferred Stock (the "Series
     C Preferred Stock"), of which none are outstanding. The rights, privileges
     and preferences of the Series A, Series B, and Series C Preferred Stock are
     as stated in the Restated Certificate.

                         (ii)  Common Stock. 36,280,000 shares of common stock,
                               ------------
     par value $0.001 ("Common Stock"), of which 3,657,630 shares are issued and
     outstanding.

                    (b)  The outstanding shares of Series A and Series B
Preferred Stock and Common Stock are owned by the stockholders and in the
numbers specified in Exhibit D hereto.
                     ---------

                    (c)  The outstanding shares of Series A and Series B
Preferred Stock and Common Stock are all duly and validly authorized and issued,
fully paid and nonassessable, and were issued in compliance with all applicable
state and federal laws concerning the issuance of securities.

                    (d)  Except for (A) the conversion privileges of the Series
A, Series B and Series C Preferred Stock, (B) the rights provided in Section 3
of the Stockholders' Agreement, and (C) 1,004,420 options outstanding as of
April 30, 2000, and such other options which have been granted in the ordinary
course by the Company since such date to purchase shares of the Company's Common
Stock pursuant to the Company's 1997 Stock Option Plan, as amended (the "Option
Plan"), which Option Plan authorizes the grant of options to purchase up to
2,685,000 shares of the Company's Common Stock, there are no outstanding
options, warrants, rights (including conversion or preemptive rights) or
agreements for the purchase or acquisition from the Company of any shares of its
capital stock. The Company also expects to grant warrants to purchase up to
250,000 shares of Common Stock to a lender or financial institution in
connection with a new credit facility. The Company is not a party or subject to
any agreement or understanding which affects or relates to the voting or giving
of written consents with respect to any security or other ownership interest in
the Company or by a director of the Company.

                    (e)  The issuance by the Company of 3,409,091 shares of
Series C Preferred Stock as of the date hereof would constitute approximately
17.38% of the Company's outstanding capital stock, calculated on a fully diluted
basis.

               2.3  Subsidiaries. The Company does not presently own or control,
                    ------------
directly or indirectly, any interest in any other corporation, association, or
other business entity,

                                       3
<PAGE>

except for the subsidiaries listed on Exhibit F attached hereto. The Company is
not a participant in any joint venture, partnership, or similar arrangement.

               2.4  Authorization. All corporate action on the part of the
                    -------------
Company, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement, the Investors' Rights
Agreement, and the Stockholders' Agreement, the performance of all obligations
of the Company hereunder and thereunder, and the authorization (or, in the case
of the Common Stock, reservation for issuance), sale and issuance of the Series
C Preferred Stock being sold hereunder and the Common Stock issuable upon
conversion of the Series C Preferred Stock has been taken or will be taken prior
to the Closing. This Agreement, the Investors' Rights Agreement, and the
Stockholders' Agreement constitute valid and legally binding obligations of the
Company, enforceable in accordance with their respective terms, except (i) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors' rights
generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies, and (iii) to the
extent the indemnification provisions contained in the Investors' Rights
Agreement may be limited by applicable federal or state securities laws.

               2.5  Valid Issuance of Preferred and Common Stock. The Series C
                    --------------------------------------------
Preferred Stock that is being purchased by the Investors hereunder, when issued,
sold and delivered in accordance with the terms of this Agreement for the
consideration expressed herein, will be duly and validly issued, fully paid and
nonassessable, free and clear of all liens and other encumbrances and will be
free of restrictions on transfer, other than restrictions on transfer under this
Agreement, the Investors' Rights Agreement, the Stockholders' Agreement and
under applicable state and federal securities laws. The Common Stock issuable
upon conversion of the Series C Preferred Stock purchased under this Agreement
has been duly and validly reserved for issuance and, upon issuance in accordance
with the terms of the Restated Certificate, will be duly and validly issued,
fully paid and nonassessable, free and clear of all liens and other encumbrances
and will be free of restrictions on transfer, other than restrictions on
transfer under this Agreement, the Investors' Rights Agreement, the
Stockholders' Agreement and under applicable state and federal securities laws.

               2.6  Consents. No consent, approval, order or authorization of,
                    --------
or registration, qualification, designation, declaration or filing with, any
federal, state or local governmental authority or any individual, firm,
corporation, partnership, trust, limited liability company, incorporated or
unincorporated association, joint venture, joint stock company or other entity
of any kind (each, a "Person") on the part of the Company is required in
connection with the consummation of the transactions contemplated by this
Agreement, except for filings required pursuant to applicable federal and state
securities laws and blue sky laws, which filings will be effected within the
required statutory period.

                                       4
<PAGE>

               2.7  Offering. The Company has filed an S-1 Registration
                    --------
Statement with the Securities and Exchange Commission on February 18, 2000 and
an S-1/A Registration Statement on March 28, 2000 (File No. 333-30684) for the
issuance of up to 8,050,000 shares of its Common Stock. Assuming the truth and
accuracy of each Investor's representations set forth in Section 3 of this
Agreement, including without limitation the qualification of each Investor as a
"qualified institutional buyer" within the meaning of Rule 144A of the
Securities Act of 1933, as amended (the "Act") or an institutional "accredited
investor" as defined under Regulation D of the Act as set forth in Section 3.10,
the offer, sale and issuance of the Series C Preferred Stock as contemplated by
this Agreement are exempt from the registration requirements of the Act.

               2.8  Litigation. There is no action, suit, proceeding or
                    ----------
investigation pending, or to the Company's knowledge currently threatened,
against the Company that questions the validity of this Agreement, the
Investors' Rights Agreement or the Stockholders' Agreement or the right of the
Company to enter into any of the foregoing or to consummate the transactions
contemplated hereby or thereby, or that would have, either individually or in
the aggregate, an MAE. The Company is not a party or subject to the provisions
of any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality. There is no action, suit, proceeding or investigation
by the Company currently pending or that the Company intends to initiate.

               2.9  Proprietary Information Agreements. Each employee and
                    ----------------------------------
officer of the Company has executed a Proprietary Information and Inventions
Agreement in substantially the form provided to the Investors.

               2.10 Patents and Trademarks. Schedule 2.10 sets forth a complete
                    ----------------------  -------------
and accurate list and description of all material franchises, licenses, patents,
patent rights, patent applications, trademarks, trademark rights, service marks,
service mark rights, trade names, trade name rights, copyrights and rights with
respect to any of the foregoing (collectively, "Intellectual Property")
presently owned or held by the Company. The Company owns the right to use all of
the Intellectual Property. To the actual knowledge of the Company (without
independent investigation), the Intellectual Property is all that is necessary
for the Company to conduct its business as presently conducted. To its knowledge
(but without having conducted any special investigation or patent search), no
Intellectual Property conflicts with or infringes on the valid rights of others
and the Company has not received any notice of infringement upon or conflict
with the asserted rights of others. No event has occurred which permits, or
after notice or lapse of time would permit, the revocation or termination of any
of the Intellectual Property. The Company has a valuable body of trade secrets,
including know-how, concepts, computer programs and other technical data (the
"Proprietary Information"). To its knowledge, the Company has the right to use
the Proprietary Information free and clear of any rights, liens, encumbrances or
claims of others, except that the possibility exists that other persons may have
independently developed trade secrets or technical information similar or
identical to those of the Company. The Company is not aware of any such
independent development nor of any misappropriation of its Proprietary
Information. The Company is not aware that any of its employees is obligated
under any contract (including licenses, covenants or commitments of any nature)
or other agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would interfere with the use of his or her best
efforts to promote the interests of the Company or that would conflict with the
Company's business. The Company

                                       5
<PAGE>

does not believe it is or will be necessary to utilize any inventions of any of
its employees (or people it currently intends to hire) made prior to their
employment by the Company, except for inventions that have been assigned or
licensed to the Company as of the date hereof.

               2.11 Compliance with Other Instruments. The Company is not in
                    ---------------------------------
violation of any provision of its Restated Certificate or Bylaws or any
securities issued by the Company, any indenture, credit agreement, contract,
agreement, instrument or other undertaking ("Contractual Obligations") or any
judgment, order, writ, decree or contract, statute, rule or regulation to which
the Company or its assets or property is subject ("Requirements of Law"), a
violation of which would have an MAE. The execution, delivery and performance of
this Agreement, the Investors' Rights Agreement and the Stockholders' Agreement
and the consummation of the transactions contemplated hereby and thereby will
not result in any such violation, or be in conflict with or constitute, with or
without the passage of time and giving of notice, either a default under any
Contractual Obligation or Requirement of Law or an event that results in the
creation of any lien, charge or encumbrance upon any assets of the Company or
the suspension, revocation, impairment, forfeiture or nonrenewal of any material
permit, license, authorization or approval applicable to the Company, its
business or operations or any of its assets or properties.

               2.12 Agreements; Action.
                    ------------------

                    (a)  Except for agreements explicitly contemplated hereby,
there are no agreements, understandings or proposed transactions between the
Company and any of its officers, directors, affiliates or any affiliate thereof.

                    (b)  Except for this Agreement, the Investors' Rights
Agreement and the Stockholders' Agreement, Schedule 2.12 hereto sets forth a
                                           -------------
complete and accurate list of all material Contractual Obligations of the
Company in effect on and as of the Closing. To its knowledge, each such
Contractual Obligation is valid and enforceable by the Company against any other
party thereto in accordance with its terms except to the extent that such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors' rights generally, and by laws relating to the availability of
specific performance, injunctive relief or other equitable remedies. The Company
has performed and is in compliance with all of the terms of such Contractual
Obligations and all instruments and agreements relating thereto and no default
or event of default, or event or condition which with notice or lapse of time or
both would constitute such a default or event of default, on its part or on the
part of any other party thereto exists with respect to any material Contractual
Obligation of the Company, except where such nonperformance, noncompliance,
default or event of default is not reasonably likely to result in an MAE. The
Company has no actual knowledge that any such Contractual Obligation contains
any contractual requirement with which there is a reasonable likelihood the
Company will be unable to comply and such failure to comply would likely result
in an MAE or the Company's compliance is reasonably likely to result in an MAE.

                    (c)  There are no judgments, orders, writs or decrees to
which the Company is a party or by which it is bound that involve obligations
(contingent or otherwise) of, or payments to the Company, in excess of $25,000.

                                       6
<PAGE>

                    (d)  The Company has not (i) declared or paid any dividends
or authorized or made any distribution upon or with respect to any class or
series of its capital stock, (ii) except for the anticipated credit facility
currently being negotiated, incurred any indebtedness for money borrowed or any
other liabilities individually in excess of $100,000 or, in the case of
indebtedness and/or liabilities individually less than $100,000, in excess of
$250,000 in the aggregate, (iii) made any loans or advances to any Person, other
than advances in the ordinary course of business, or (iv) sold, exchanged or
otherwise disposed of any of its assets or rights, other than the sale of its
inventory in the ordinary course of business.

                    (e)  For the purposes of subsections (c) and (d) above, all
indebtedness, liabilities, agreements, understandings, instruments, contracts
and proposed transactions involving the same Person (including Persons the
Company has reason to believe are affiliated therewith) shall be aggregated for
the purpose of meeting the individual minimum dollar amounts of such
subsections.

               2.13 Related-Party Transactions. No employee, officer or director
                    --------------------------
of the Company or member of his or her immediate family is indebted to the
Company, nor is the Company indebted (or committed to make loans or extend or
guarantee credit) to any of them. To the best of the Company's knowledge, none
of such persons has any direct or indirect ownership interest in any firm or
corporation with which the Company is affiliated or with which the Company has a
business relationship, or any firm or corporation that competes with the
Company, except that employees, officers or directors of the Company and members
of their immediate families may own stock in publicly traded companies that may
compete with the Company. No member of the immediate family of any officer or
director of the Company is directly or indirectly interested in any material
Contractual Obligation with the Company.

               2.14 Financial Statements. The Company has delivered to each
Investor its audited financial statements (balance sheet and statement of
operations, statement of stockholders' equity and statement of cash flows,
including notes thereto) at December 31, 1999 and for the fiscal year then ended
and its unaudited financial statements (balance sheet and statement of
operations, statement of stockholders' equity and statement of cash flows) at
March 31, 2000 and for the three-month period then ended (the "Financial
Statements"). The Financial Statements have been prepared in all material
respects in accordance with generally accepted accounting principles applied on
a consistent basis throughout the periods indicated and with each other and
fairly present in all material respects the assets, liabilities, financial
condition and operating results of the Company as of the dates, and for the
periods, indicated therein, subject in the case of unaudited Financial
Statements to normal year-end audit adjustments. Except as set forth in the
Financial Statements, the Company has no liabilities or obligations, contingent
or otherwise, other than (i) liabilities incurred in the ordinary course of
business subsequent to March 31, 2000 and (ii) obligations under contracts and
commitments incurred in the ordinary course of business and not required under
generally accepted accounting principles to be reflected in the Financial
Statements, which, in both cases, individually or in the aggregate, are not
material to the financial condition or operating results of the Company and
which the Company has satisfied as they have become due. Except as disclosed in
the Financial Statements, the Company is not a guarantor or indemnitor of any
indebtedness of any other Person. The Company maintains and will continue to
maintain a standard system of accounting established and administered in
accordance with generally accepted accounting principles.

                                       7
<PAGE>

               2.15 Changes. Since March 31, 2000, there has not been:
                    -------

                    (a)  any change in the assets, liabilities, financial
condition or operating results of the Company from that reflected in the
Financial Statements, except changes in the ordinary course of business
consistent with past practice that are not reasonably likely to have an MAE;

                    (b)  any damage, destruction or loss, whether or not covered
by insurance, materially and adversely affecting the assets, properties,
financial condition, operating results or business of the Company;

                    (c)  any waiver by the Company of a material right or of a
material debt owed to it;

                    (d)  any satisfaction or discharge of any lien, claim or
encumbrance or payment of any obligation by the Company, except in the ordinary
course of business consistent with past practice and not material to the assets,
properties, financial condition, operating results or business of the Company;

                    (e)  any material change or amendment to a contract or
arrangement required to be set forth on Schedule 2.12 by which the Company or
                                        -------------
any of its assets or properties is bound or subject;

                    (f)  any material change in any compensation arrangement or
agreement with any employee; or

                    (g)  any agreement or commitment by the Company to do any of
the things described in this Section 2.15.

               2.16 Tax Returns. The Company has timely filed all federal,
                    -----------
state, county, local and foreign income and other tax returns, reports and
declarations (collectively, "Returns") relating to all net income, gross income,
gross receipts, sales, use, ad valorem, transfer, franchise, profits, license,
withholding, payroll, employment, excise, severance, stamp, occupation, premium,
property or windfall profits taxes, or other taxes of any kind whatsoever,
together with any interest and any penalties, additions to tax or additional
amounts imposed by any taxing authority (domestic or foreign) upon the Company
("Taxes") which are required by applicable law to be filed except where the
failure to do so would not be reasonably likely to have an MAE. No audits of
federal income tax Returns of the Company have been conducted at any time since
its formation and the Company has not been advised that any of its returns have
been or are being audited. The Company has paid, or where payment is not
required to be made, has made adequate provision on its books and financial
statements for the payment of, all Taxes in respect of all periods covered by
the Returns and any other taxable period ending on or before the date hereof
except where the failure to do so would not be reasonably likely to have an MAE.
No deficiencies for any Tax, assessment or governmental charge have been
asserted or assessed against the Company which have not been paid, settled or
adequately provided for and there is no basis therefor.

                                       8
<PAGE>

               2.17 Permits. To its knowledge, the Company (i) has all material
                    -------
governmental or other regulatory approvals, licenses, permits and other
authorizations in accordance with all Requirements of Law for it to conduct its
business, each of which is in full force and effect, is final and not subject to
review on appeal and is not the subject of any pending or, to the best of its
knowledge, threatened attack by direct or collateral proceeding, and (ii) is in
compliance in all respects with each governmental approval, license, permit and
authorization relating to it or any of its properties under all applicable
Requirements of Law except where the failure to do so would not be reasonably
likely to have an MAE. Since its date of organization, the Company has not, to
its knowledge, been the subject of any investigation conducted by any grand
jury, administrative agency or other governmental authority. The Company has
not, directly or indirectly, made or authorized any payment, contribution or
gift of money, property, or services, in violation of applicable law, (i) as a
kickback or bribe to any Person or (ii) to any political organization or the
holder of, or any aspirant to, any elective or appointive office of any
governmental authority.

               2.18  Environmental and Safety Laws. To its knowledge, the
                     -----------------------------
Company is not in violation of any applicable statute, law or regulation
relating to the environment or occupational health and safety, and to its
knowledge, no material expenditures are or will be required in order to comply
with any such existing statute, law or regulation.

               2.19 Disclosure. Neither this Agreement (including all the
                    ----------
exhibits and schedules hereto) nor any other certificates or agreements made or
delivered in connection herewith contains any untrue statement of a material
fact or omits to state a material fact necessary to make the statements herein
or therein not misleading in light of the circumstances under which they were
made.

               2.20 Registration Rights. Except as provided in the Investors'
                    -------------------
Rights Agreement, the Company has not granted or agreed to grant any
registration rights, including piggyback rights, to any person or entity.

               2.21  Corporate Documents. The Restated Certificate and Bylaws of
                     -------------------
the Company are in the forms previously provided to the Investors. The minute
books of the Company have been made available to the Investors for their review
in connection with the purchase of the Series C Preferred Stock; such minute
books are current and contain correct and complete copies of all minutes of
meetings, resolutions and other actions and proceedings of the board of
directors and shareholders and all committees of the Company. The record books
relating to the equity interests of the Company have been made available to the
Investors for their review in connection with the purchase of the Series C
Preferred Stock; such record books are current, correct and complete and reflect
the issuance, sale or exchange of all of capital stock and other ownership and
equity interests in the Company.

               2.22 Title to Property and Assets. Schedule 2.22 sets forth a
                    ----------------------------  -------------
complete and accurate list of all real property and improvements (collectively
"Real Property") owned or leased by the Company. The Company has good and
marketable, indefeasible fee simple title to the Real Property described in
Schedule 2.22 as being owned by it, and valid and subsisting leasehold rights in
-------------
the Real Property described in Schedule 2.22 as being leased by it, free and
                               -------------
clear of all liens and other encumbrances. Schedule 2.22 also sets forth a
                                           -------------
complete and accurate

                                       9
<PAGE>

list of all of the material items of equipment, machinery, computers, chattels,
tools, parts, machine tools, furniture, furnishings, fixtures and supplies of
every nature owned or leased by the Company in connection with its business as
of March 31, 2000. The Company has good and marketable fee simple title to such
items described in Schedule 2.22 as being owned by it, and valid and subsisting
leasehold rights in such items described in Schedule 2.22 as being leased by it,
free and clear of all liens and other encumbrances.

               2.23 Labor Agreements and Actions. The Company is not bound by or
                    ----------------------------
subject to (and none of its assets or properties is bound by or subject to) any
written or oral, express or implied, contract, commitment or arrangement with
any labor union, and no labor union has requested or, to the Company's
knowledge, has sought to represent any of the employees, representatives or
agents of the Company. There is no strike or other labor dispute involving the
Company pending, or to the Company's knowledge, threatened, that would have an
MAE. The Company is not aware that any officer or key employee, or that any
group of key employees, intends to terminate their employment with the Company,
nor does the Company have a present intention to terminate the employment of any
of the foregoing. The employment of each officer and employee of the Company is
terminable at the will of the Company. The Company is not a party to or bound by
any currently effective employment contract, deferred compensation agreement,
bonus plan, incentive plan, profit sharing plan, retirement agreement or other
employee compensation agreement. To its knowledge, the Company has complied in
all material respects with all applicable state and federal equal employment
opportunity and other laws related to employment. To its knowledge, the Company
has withheld all amounts required by law or agreement to be withheld by it from
the wages, salaries and other payments to its employees and is not liable for
any arrears of wages or any taxes or penalties for failure to comply with any of
the foregoing. There are no pending, threatened or anticipated (i) employment
discrimination charges or complaints against or involving the Company before any
federal, state, or local board, department, commission or agency, (ii) unfair
labor practice charges or complaints, disputes or grievances affecting the
Company, or (iii) strikes, slow downs, work stoppages, or lockouts or threats
thereof affecting the Company.

               2.24 Insurance. The Company maintains insurance policies (i)
                    ---------
insuring the properties, assets and operations of its business in such amounts
and against such liabilities to the extent required by applicable law or
regulations and (ii) insuring against interruptions in its business. Such
policies are in full force and effect and have been underwritten by unaffiliated
insurers. To its knowledge, the Company has not done anything by way of action
or inaction that invalidates any of such policies in whole or in part.

               2.25 Governmental Regulations. The Company is not a "registered
                    ------------------------
investment company" or an "affiliated person" or a "principal underwriter" of a
"registered investment company" as such terms are defined in the Investment
Company Act of 1940, as amended.

               2.26 Certain Tax Matters. The Company's capital stock does not
                    -------------------
constitute a United States real property interest as that term is defined in
Section 897(c)(1)(A)(ii) of the Internal Revenue Code of 1986, as amended (the
"Code"), and the Company is not and has not been a "United States real property
holding corporation" as defined in Section 897(c)(2) of the Code (a "USRPHC").
To its knowledge, no Investor shall, solely by virtue of its purchase

                                       10
<PAGE>

and ownership of the Series C Preferred Stock and the underlying Common Stock,
(i) be deemed to have received "unrelated business taxable income" as defined in
Section 512 of the Code ("UBTI") as a result of the Company's operations, or
(ii) be deemed to be engaged in the conduct of a "trade or business within the
United States" within the meaning of Section 864(b) of the Code, and the Company
shall exercise its reasonable best efforts consistent with prudent business
practices to ensure that the Investors do not receive UBTI and are not deemed to
be engaged in a U.S. trade or business solely as a result of their ownership of
the Company's securities. From time to time upon request of any Investor, the
Company shall make a determination as to the Company's status as a USRPHC and as
to the accuracy of the foregoing representations and warranties and shall notify
each Investor of and change in circumstances that could result in any of the
foregoing representations and warranties no longer being true and correct as
soon as practicable after the Company obtains knowledge of such change in
circumstances.

          3.   Representations and Warranties of the Investors. Each Investor,
               -----------------------------------------------
severally but not jointly, hereby represents, warrants and covenants that:

               3.1  Authorization. Such Investor has full power and authority to
                    -------------
enter into this Agreement, the Investors' Rights Agreement and the Stockholders'
Agreement, and each such agreement constitutes its valid and legally binding
obligation, enforceable in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors' rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies, and (iii) to the extent the
indemnification provisions contained in the Investors' Rights Agreement may be
limited by applicable federal or state securities laws.

               3.2  Purchase Entirely for Own Account. This Agreement is made
                    ---------------------------------
with such Investor in reliance upon such Investor's representation to the
Company, which by such Investor's execution of this Agreement such Investor
hereby confirms, that the Series C Preferred Stock to be received by such
Investor and the Common Stock issuable upon conversion thereof (collectively,
the "Securities") will be acquired for investment for such Investor's own
account and not with a view to the resale or distribution of any part thereof in
violation of applicable securities laws, and that such Investor has no present
intention of selling, granting any participation in or otherwise distributing
the same in violation of applicable securities laws. By executing this
Agreement, such Investor further represents that such Investor does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person in
violation of applicable securities laws, with respect to any of the Securities.

               3.3  Disclosure of Information. Such Investor believes it has
                    -------------------------
received all the information it considers necessary or appropriate for deciding
whether to purchase the Series C Preferred Stock. Such Investor further
represents that it has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the offering of the
Series C Preferred Stock and the business, properties, prospects and financial
condition of the Company.

                                       11
<PAGE>

               3.4  Investment Experience. Such Investor is an investor in
                    ---------------------
securities of companies in the development stage and acknowledges that it can
bear the economic risk of its investment, and has such knowledge and experience
in financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Series C Preferred Stock. If other than an
individual, such Investor also represents it has not been organized for the
purpose of acquiring the Series C Preferred Stock.

               3.5  Restricted Securities. Such Investor understands that the
                    ---------------------
Securities it is purchasing are characterized as "restricted securities" under
the federal securities laws inasmuch as they are being acquired from the Company
in a transaction not involving a public offering and that under such laws and
applicable regulations such Securities may be resold without registration under
the Act only in certain limited circumstances. In the absence of an effective
registration statement covering the Series C Preferred Stock (or the Common
Stock issued on conversion thereof) or an available exemption from registration
under the Act, the Series C Preferred Stock (and any Common Stock issued on
conversion thereof) must be held indefinitely. In this connection, such Investor
represents that it is familiar with SEC Rule 144, as presently in effect, and
understands the resale limitations imposed thereby and by the Act, including
without limitation the Rule 144 condition that current information about the
Company be available to the public. Such information is not now available and
the Company has no present plans to make such information available.

               3.6  Further Limitations on Disposition. Without in any way
                    ----------------------------------
limiting the representations set forth above, such Investor further agrees not
to make any disposition of all or any portion of the Securities unless:

                    (a)  There is then in effect a registration statement under
the Act covering such proposed disposition and such disposition is made in
accordance with such registration statement; or

                    (b)  (i)  Such Investor shall have notified the Company of
the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and (ii) if
requested by the Company, such Investor shall have furnished the Company with an
opinion of counsel, reasonably satisfactory to the Company that such disposition
will not require registration of such shares under the Act. It is agreed that
the Company will not require opinions of counsel for transactions made pursuant
to Rule 144 except in unusual circumstances.

                    (c)  Notwithstanding the provisions of subsections (a) and
(b) above, no such registration statement or opinion of counsel shall be
necessary for a transfer by an Investor that is a partnership to a partner of
such partnership or a retired partner of such partnership who retires after the
date hereof, or to the estate of any such partner or retired partner or the
transfer by gift, will or intestate succession of any partner to his or her
spouse or to the siblings, lineal descendants or ancestors of such partner or
his or her spouse, if the transferee agrees in writing to be subject to the
terms hereof to the same extent as if he or she were an original Investor
hereunder.

                                       12
<PAGE>

               3.7  Legends. It is understood that the certificates evidencing
                    -------
the Securities may bear one or all of the following legends:

                    (a)  "These securities have not been registered under the
Securities Act of 1933, as amended. They may not be sold, offered for sale,
pledged or hypothecated in the absence of a registration statement in effect
with respect to the securities under such Act or an applicable exemption
therefrom."

                    (b)  Any legend required by the Investors' Rights Agreement
and the Stockholders' Agreement.

The Company agrees, upon the request of any Investor or its transferee, to
remove the legend required by paragraph (a) above at such time as all Securities
held by such person may be freely transferred pursuant to SEC Rule 144(k), and
to remove the legend required by paragraph (b) above at such time as the
restrictions of the Investors' Rights Agreement and the Stockholders' Agreement
are no longer applicable to such Securities.

               3.8  Tax Advisors. Such Investor has reviewed with such
                    ------------
Investor's own tax advisors the federal, state and local tax consequences of
this investment, where applicable, and the transactions contemplated by this
Agreement. With respect to matters related to the tax consequences of the
transactions contemplated by this Agreement, each such Investor is relying
solely on such advisors and not on any statements or representations of the
Company or any of its agents and understands that each such Investor (and not
the Company) shall be responsible for such Investor's own tax liability that may
arise as a result of this investment or the transactions contemplated by this
Agreement.

               3.9  Investor Counsel. Such Investor acknowledges that such
                    ----------------
Investor has had the opportunity to review this Agreement, the exhibits and the
schedules attached hereto and the transactions contemplated by this Agreement
with such Investor's own legal counsel. Each such Investor is relying solely on
such Investor's legal counsel and not on Brobeck, Phleger & Harrison LLP for
legal advice with respect to this investment or the transactions contemplated by
this Agreement.

               3.10 Qualified Institutional Buyer.
                    -----------------------------

               Other than with respect to Meritage Private Equity Fund, L.P.,
Meritage Private Equity Parallel Fund, L.P. and Meritage Entrepreneurs Fund,
L.P. (the "Meritage Group"), Stolberg, Meehan and Scano II, L.P. ("Stolberg")
and Sixty Wall Street SBIC Fund, L.P. ("SWS"), each Investor is a "qualified
institutional buyer" as defined under Rule 144A of the Act. SWS, Stolberg and
each member of the Meritage Group is an institutional "accredited investor" as
defined under Regulation D of the Act.

                                       13
<PAGE>

          4.   Conditions of Investor's Obligations at Closing. The obligations
               -----------------------------------------------
of each Investor under Section 1 of this Agreement are subject to the
fulfillment on or before the Closing of each of the following conditions, the
waiver of which shall not be effective against any Investor who does not consent
thereto:

               4.1  Representations and Warranties. The representations and
                    ------------------------------
warranties of the Company contained in Section 2 shall be true on and as of the
Closing with the same effect as though such representations and warranties had
been made on and as of the date of such Closing.

               4.2  Performance. The Company shall have performed and complied
                    -----------
with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing.

               4.3  Compliance Certificate. The President of the Company shall
                    ----------------------
deliver to each Investor at the Closing a certificate stating that the
conditions specified in Sections 4.1 and 4.2 have been fulfilled.

               4.4  Qualifications. All authorizations, approvals or permits, if
                    --------------
any, of any governmental authority or regulatory body of the United States or of
any state or any Person that are required in connection with the consummation of
the transactions contemplated by this Agreement, including the lawful issuance
and sale of the Securities pursuant to this Agreement, shall be duly obtained
and effective as of the Closing.

               4.5  Proceedings and Documents. All corporate and other
                    -------------------------
proceedings in connection with the transactions contemplated at the Closing and
all documents incident thereto shall be reasonably satisfactory in form and
substance to the Investors, and they shall have received all such counterpart
original and certified or other copies of such documents as they may reasonably
request.

               4.6  Investors' Rights Agreement. The Company, each Investor and
                    ---------------------------
the other parties thereto shall have entered into the Investors' Rights
Agreement in the form attached hereto as Exhibit B.
                                         ---------

               4.7  Stockholders' Agreement. The Company, each Investor and the
                    -----------------------
other parties thereto shall have entered into the Stockholders' Agreement in the
form attached as Exhibit C.
                 ---------

               4.8  No Material Adverse Change. On and prior to the Closing
                    --------------------------
since March 31, 2000, there shall have occurred no material adverse change in
the business, assets or financial condition of the Company.

               4.9  No Litigation or Other Proceedings. There shall be no
                    ----------------------------------
pending or threatened litigation, bankruptcy, insolvency, injunction, order,
suit, investigation or claim against or affecting the Company, any of its
properties or rights, any of its executive officers or with respect to any of
the transactions contemplated by this Agreement, the Investors' Rights Agreement
or the Stockholders' Agreement which would be reasonably likely to have an MAE.

                                       14
<PAGE>

               4.10 Legal Opinion. The Investors shall have received the opinion
                    -------------
of Brobeck, Phleger & Harrison LLP, legal counsel to the Company, dated as of
the Closing in the form of Exhibit E hereto.
                           ---------

          5.   Conditions of the Company's Obligations at Closing. The
               --------------------------------------------------
obligations of the Company to each Investor under this Agreement are subject to
the fulfillment on or before the Closing of each of the following conditions by
that Investor:

               5.1  Representations and Warranties. The representations and
                    ------------------------------
warranties of the Investors contained in Section 3 shall be true on and as of
the Closing with the same effect as though such representations and warranties
had been made on and as of the Closing.

               5.2  Payment of Purchase Price. The Investor shall have delivered
                    -------------------------
the purchase price specified in Section 1.1.

               5.3  Investors' Rights Agreement. Each Investor and other parties
                    ---------------------------
thereto (other than the Company) shall have entered into the Investors' Rights
Agreement in the form attached as Exhibit B.
                                  ---------

               5.4  Stockholders' Agreement. Each Investor and other parties
                    -----------------------
thereto (other than the Company) shall have entered into the Stockholders'
Agreement in the form attached as Exhibit C.
                                  ---------

          6.   Miscellaneous.
               -------------

               6.1  Survival. The warranties, representations and covenants of
                    --------
the Company and the Investors contained in or made pursuant to this Agreement
shall survive the execution and delivery of this Agreement and the Closing and
shall in no way be affected by any investigation of the subject matter thereof
made by or on behalf of the Investors or the Company.

               6.2  Successors and Assigns. Except as otherwise provided herein,
                    ----------------------
the terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties (including
transferees of any Securities). Nothing in this Agreement, express or implied,
is intended to confer upon any party, other than the parties hereto or their
respective successors and assigns, any rights, remedies, obligations or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

               6.3  Governing Law. This Agreement shall be governed by and
                    -------------
construed under the laws of the State of Colorado as applied to agreements among
Colorado residents entered into and to be performed entirely within Colorado,
without giving effect to such state's conflict of laws principles.

               6.4  Titles and Subtitles. The titles and subtitles used in this
                    --------------------
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

                                       15
<PAGE>

               6.5  Notices. All notices required or permitted hereunder shall
                    -------
be in writing and shall be deemed effectively given: (i) upon personal delivery
to the party to be notified, (ii) when sent by confirmed facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day; or (iii) one day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt. All
communications shall be sent to the address as set forth on the signature page
hereof or at such other address as such party may designate by ten days advance
written notice to the other parties hereto.

               6.6  Finder's Fee. Each party represents that it neither is nor
                    ------------
will be obligated for any finders' fee or commission in connection with this
transaction. Each Investor agrees to indemnify and to hold harmless the Company
from any liability for any commission or compensation in the nature of a
finders' fee (and the costs and expenses of defending against such liability or
asserted liability) for which such Investor or any of its officers, partners,
employees or representatives is responsible. The Company agrees to indemnify and
hold harmless each Investor from any liability for any commission or
compensation in the nature of a finders' fee (and the costs and expenses of
defending against such liability or asserted liability) for which the Company or
any of its officers, employees or representatives is responsible.

               6.7  Expenses. Irrespective of whether the Closing is effected,
                    --------
the Company shall pay all costs and expenses that it incurs with respect to the
negotiation, execution, delivery and performance of this Agreement. If the
Closing is effected, the Company shall, at the Closing, reimburse the Investors
for all reasonable expenses of the Investors incurred in connection with the
negotiation, execution, delivery and performance of this Agreement in an amount
not to exceed $25,000; provided further, the Investors agree to use their
reasonable efforts to minimize such expenses. If any action at law or in equity
is necessary to enforce or interpret the terms of this Agreement, the Investors'
Rights Agreement, the Stockholders' Agreement or the Restated Certificate, the
prevailing party shall be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which such party may
be entitled.

               6.8  Amendments and Waivers. Any term of this Agreement may be
                    ----------------------
amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the holders of
a majority of the Common Stock not previously sold to the public that is issued
or issuable upon conversion of the Series C Preferred Stock. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each
holder of any securities purchased under this Agreement at the time outstanding
(including securities into which such securities are convertible), each future
holder of all such securities and the Company.

               6.9  Effect of Amendment or Waiver. Each Investor acknowledges
                    -----------------------------
that by the operation of Section 6.8 hereof the holders of a majority of the
Common Stock not previously sold to the public that is issued or issuable upon
conversion of the Series C Preferred Stock will have the power to diminish or
eliminate all rights of such Investor under this Agreement.

                                       16
<PAGE>

               6.10 Severability. If one or more provisions of this Agreement
                    ------------
are held to be unenforceable under applicable law, such provision shall be
excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

               6.11 Aggregation of Stock. All shares of the Series C Preferred
                    --------------------
Stock or Common Stock issued upon conversion thereof held or acquired by
affiliated entities or persons shall be aggregated together for the purpose of
determining the availability of any rights under this Agreement.

               6.12 Entire Agreement. This Agreement and the documents referred
                    ----------------
to herein constitute the entire agreement among the parties and no party shall
be liable or bound to any other party in any manner by any warranties,
representations or covenants except as specifically set forth herein or therein.

               6.13 Counterparts. This 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.

                           [SIGNATURE PAGE FOLLOWS]

                                       17
<PAGE>

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

                         InFlow, Inc.

                              By: /s/ Art Zeile
                                  -------------------------------------
                                  Art Zeile
                                  President and Chief Executive Officer

                              Address:  938 Bannock Street, Suite 300
                                        Denver, CO 80204

First Union Capital Partners, Inc.    Meritage Private Equity Fund, L.P.
                                      Meritage Private Equity Parallel
                                      Fund, L.P.
                                      Meritage Entrepreneurs Fund, L.P.
By: /s/ L. Watts Hamrick, III,
    ------------------------------
L. Watts Hamrick, III,
Senior Vice President                 By:  Meritage Investment Partners, LLC

Address:  301 South College Street         By:/s/ G. Jackson Tankersley, Jr.
          Charlotte, NC 28288-0732            ------------------------------
                                              G. Jackson Tankersley, Jr.,
                                              Managing Member

                                      Address:  1600 Wynkoop Street, Suite 300
                                                Denver, CO  80202

J.P. Morgan Investment Corporation    Sixty Wall Street SBIC Fund, L.P.,
                                      By:  Sixty Wall Street SBIC Corporation,
By: /s/ Michael Robinson                   its General Partner
    ------------------------------
Name: ____________________________
Title: ___________________________    By: /s/ Michael Robinson
                                          ------------------------------------
                                      Name: __________________________________
Address: 101 California Street,       Title:__________________________________
         37th Floor
         San Francisco, CA  94111     Address: 101 California Street, 37th Floor
                                               San Francisco, CA  94111

                                      Stolberg, Meehan and Scano II, L.P.
                                      By:  Stolberg, Meehan & Scano LLC,
                                           General Partner

                                      By: /s/ Peter Van Genderen
                                          ------------------------------------
                                      Name: __________________________________
                                      Title: _________________________________

                                      Address: Republic Plaza
                                               370 17th Street
                                               Suite 4240
                                               Denver, CO 80202

                                       18
<PAGE>

                                  Schedule A
                                  ----------

<TABLE>
<CAPTION>
Investor                         Number of Shares             Aggregate
--------                         ----------------             ---------
                                   of Series C             Purchase Price
                                   -----------             --------------
                                 Preferred Stock
                                 ---------------
-------------------------------------------------------------------------
<S>                              <C>                   <C>
J.P. Morgan Investment               102,273           $ 2,250,006.00
 Corporation
-------------------------------------------------------------------------
Sixty Wall Street SBIC Fund,          34,091           $   750,002.00
 L.P.
-------------------------------------------------------------------------
First Union Capital Partners,        454,545           $ 9,999,990.00
 Inc.
-------------------------------------------------------------------------
Stolberg, Meehan and Scano           227,273           $ 5,000,006.00
 II, L.P.
-------------------------------------------------------------------------
Meritage Private Equity Fund,        498,182           $10,960,004.00
 L.P.
-------------------------------------------------------------------------
Meritage Private Equity               60,909           $ 1,339,998.00
 Parallel Fund, L.P.
-------------------------------------------------------------------------
Meritage Entrepreneurs Fund,           9,091           $   200,002.00
 L.P.
-------------------------------------------------------------------------
</TABLE>

                                       19<PAGE>

                                                                    EXHIBIT 10.8

                                                                  EXECUTION COPY
                                                                  --------------

                           THIRD AMENDED AND RESTATED
                            STOCKHOLDERS' AGREEMENT

         This THIRD AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT dated as of
May 8, 2000 by and among (i) InFlow, Inc., a Delaware corporation (the
"Company"), (ii) Art Zeile, Joel Daly and Stephen O. James, as holders of the
common stock (the "Common Stock") of the Company (the "Common Holders") and
(iii) the undersigned holders of the Series A, Series B and Series C Preferred
Stock of the Company, together with those holders listed on Schedule A hereto or
that subsequently execute a counterpart signature page hereto (collectively, the
"Purchasers" and each individually a "Purchaser").  The Series A, the Series B
and the Series C Preferred Stock shall be referred to herein as "Preferred
Shares" and the Common Stock held by the Common Holders shall be referred to
herein as "Common Shares").  This Agreement amends and restates in its entirety
the Second Amended and Restated Stockholders Agreement dated as of November 30,
1999 among the Company, the Common Holders and certain of the Purchasers.

         1.   Definitions.
              -----------

              (a)  Purchaser Holders.  For purposes of this Agreement, the term
                   -----------------
"Purchaser Holders" shall mean the Purchasers or persons who have acquired
shares from such Purchasers or the Purchasers' transferees or assignees in
accordance with the provisions of this Agreement.

              (b)  New Securities. For purposes of this Agreement, the term "New
                   --------------
Securities" shall mean any capital stock of the Company whether now authorized
or not, and rights, options or warrants to purchase such capital stock, and
securities of any type whatsoever that are, or may become, convertible into or
exchangeable for such capital stock; provided that the term "New Securities"
does not include (i) securities issued upon conversion of the Preferred Shares;
(ii) securities issued pursuant to the acquisition of another business entity or
business segment of any such entity by the Company by merger, purchase of
substantially all the assets or other reorganization whereby the Company will
own not less than fifty-one percent (51%) of the voting power of such business
entity or business segment of any such entity; (iii) any borrowings, direct or
indirect, from financial institutions or other persons by the Company, whether
or not presently authorized, including any type of loan or payment evidenced by
any type of debt instrument, provided such borrowings do not have any equity
features including warrants, options or other rights to purchase capital stock
and are not convertible into capital stock of the Company, in each case in an
aggregate amount in excess of 250,000 shares of Common Stock (subject to stock
dividends, stock splits and similar transactions); (iv) securities issued to
employees, consultants, officers or directors of the Company pursuant to any
stock option, stock purchase or stock bonus plan, agreement or arrangement
approved by the Board of Directors; (v) securities issued to vendors or
customers or to other persons in similar commercial situations with the Company
if such issuance is approved by the Board of Directors; (vi) securities issued
in connection with obtaining lease financing, whether issued to a lessor,
<PAGE>

guarantor or other person if such issuance is approved by the Board of
Directors; (vii) securities issued in a Qualified Public Offering (as defined in
Section 13 below); (viii) securities issued in connection with any stock split,
stock dividend or recapitalization of the Company; and (ix) any right, option or
warrant to acquire any security convertible into the securities excluded from
the definition of New Securities pursuant to subsections (i) through (viii)
above.

              (c)  Equity Securities.  For purposes of this Agreement, the term
                   -----------------
"Equity Securities" shall mean any securities having voting rights in the
election of the Board of Directors or any securities evidencing an ownership
interest in the Company, or any securities convertible into or exercisable for
any shares of the foregoing, or any agreement or commitment to issue any of the
foregoing.

              (d)  Company Holders.  For purposes of this Agreement, the term
                   ---------------
"Company Holders" shall mean any Common Holder and any Person who acquires
shares of Common Stock pursuant to the Option Plan as a result of the exercise
of options granted thereunder after the date hereof.

              (e)  Person.  For purposes of this Agreement, the term "Person"
                   ------
shall mean any individual, firm, corporation, partnership, trust, limited
liability company, incorporated or unincorporated association, joint venture,
joint stock company or other entity of any kind.

              (f)  Option Plan.  For purposes of this Agreement, the term
                   -----------
"Option Plan" shall mean the Company's 1997 Stock Option Plan, as amended.

              (g)  Stock.  For purposes of this Agreement, the term "Stock"
                   -----
shall mean the Preferred Shares and the Common Shares.

              (h)  Stockholder.  For purposes of this Agreement, the term
                   -----------
"Stockholder" shall mean a Purchaser Holder or a Company Holder.

         2.   Transfer Restrictions; Right of First Refusal.
              ---------------------------------------------

              (a)  Before any Stock (the "Offered Shares") may be sold or
transferred by any Stockholder (the "Selling Stockholder"), the Selling
Stockholder shall deliver a notice by certified mail (the "Sale Notice") to the
principal business office of the Company and to each of the Purchaser Holders
(and, if necessary in order to comply with Section 4, the other Stockholders)
stating (i) the Selling Stockholder's bona fide intention to sell or transfer
the Offered Shares, (ii) the number of such shares to be sold or transferred,
(iii) the price and terms for which the Selling Stockholder proposes to sell or
transfer the Offered Shares, and (iv) the name and address of the proposed
purchaser or transferee and that such purchaser or transferee is committed to
acquire the stated number of shares on the stated price and terms.  The Company,
upon the request of the Selling Stockholder, will provide a list of the
addresses of the Purchaser Holders (and, if required in order to comply with
Section 4, the other Stockholders).

              (b)  In the event that the Selling Stockholder is a Common
Holder (an "RFR Holder"), the Company shall have the right at any time within
twenty (20) days of receipt

                                       2
<PAGE>

of the Sale Notice (the "Company Election Period") to elect to purchase some or
all of the Offered Shares at the price per share specified in the Sale Notice,
or if no price is specified therein, at the Fair Market Value thereof. "Fair
Market Value" shall be determined by the Board of Directors of the Company in
good faith (with at least one Series B Director (as defined in Section 7 below)
voting to approve the value so determined).

              (c)  If the Company desires to purchase all or any part of the
Offered Shares from the RFR Holder, the Company shall communicate in writing its
election to purchase to the RFR Holder and the Purchaser Holders, which
communication shall state the number of Offered Shares the Company desires to
purchase and shall be given to the RFR Holder and the Purchaser Holders in
accordance with the notice requirements of this Agreement prior to or
concurrently with the expiration of the Company Election Period.

              (d)  If the Company does not elect to purchase all of the Offered
Shares from the RFR Holder, each Purchaser Holder shall have the absolute right
at any time within ten (10) days following the expiration of the Company
Election Period (the "Purchaser Election Period") to elect to purchase, at the
price per share specified in the Sale Notice, or if no price is specified
therein, at the Fair Market Value thereof, that portion of the balance of the
Offered Shares from the RFR Holder as shall be equal to the number of such
Offered Shares multiplied by a fraction, the numerator of which shall be the
number of Preferred Shares then owned by each Purchaser Holder and the
denominator of which shall be the aggregate number of Preferred Shares then
owned by all of the Purchaser Holders. (The amount of Offered Shares that each
Purchaser Holder is entitled to purchase under this Section 2(e) shall be
referred to as its "Pro Rata Share").

              (e)  If any Purchaser Holder elects not to exercise its option to
purchase its Pro Rata Share of the Offered Shares from the RFR Holder, then
those Purchaser Holders that do exercise their option shall have the option, for
an additional five (5) days following the end of the Purchaser Election Period,
to elect to acquire the Offered Shares that could have been acquired by the
nonexercising Purchaser Holders in proportion to the relative number of
Preferred Shares held by the exercising Purchaser Holders.

              (f)  If the Company and/or the Purchaser Holders elect to
purchase all or any portion of the Offered Shares from the RFR Holder, any
written communication of an election to so purchase delivered by the Company or
the Purchaser Holders shall, when taken in conjunction with the offer, be deemed
to constitute a valid, legally binding and enforceable agreement for the sale
and purchase of the stated Offered Shares. Sales of the Offered Shares to be
sold to the Company and/or the Purchaser Holders pursuant to this Section 2
shall be made at the offices of the Company on the 60th day following the date
of the Sale Notice (or if such 60th day is not a business day, then on the next
succeeding business day). Such sales shall be effected by the delivery to the
Company of a certificate or certificates evidencing the Offered Shares to be
purchased by the Company or the Purchaser Holders duly endorsed for transfer to
such party, against payment to the RFR Holder of the purchase price therefor by
the party purchasing such Offered Shares.

                                       3
<PAGE>

              (g)  If the Company and/or the Purchaser Holders do not purchase
all of the Offered Shares from the RFR Holder, then, subject to the other terms
of this Agreement all, but not less than all, of the Offered Shares not so
purchased may be sold by the RFR Holder at any time within ninety (90) days
after the date of the Sale Notice. Any such sale shall be to the proposed
transferee specified in the Sale Notice, at not less than the price and upon
other terms and conditions, if any, not more favorable to the proposed
transferee than those specified in the offer. If the Offered Shares are not sold
within such 90-day period, the RFR Holder shall not thereafter transfer any
Offered Shares without again complying with the requirements of this Section 2.

              (h)  In the event that the Selling Stockholder is a Purchaser
Holder, the Company shall have the right to approve the proposed transferee(s)
of the Offered Shares, which approval shall not be unreasonably withheld (it
being understood that the Company's failure to approve a proposed transferee
that the Company believes in good faith constitutes an actual or potential
competitor of the Company shall be conclusively deemed reasonable).

              (i)  If Offered Shares are sold pursuant to this Section 2 to
any purchaser who is not a party to this Agreement, it shall be a condition of
such sale that the purchaser shall execute a counterpart of this Agreement and
the Offered Shares so sold shall be subject to this Agreement.

         3.   Preemptive Right.
              ----------------

              (a)  The Right.  If the Company shall propose to issue any New
                   ---------
Securities, it shall first offer to sell to each Purchaser Holder a Ratable
Portion of such New Securities on the same terms and conditions and at the
lowest price as such New Securities are offered to any person. "Ratable Portion"
shall mean that portion of such New Securities equal to the fraction determined
by dividing the number of shares of Common Stock held by the Purchaser Holder
(assuming full conversion and exercise of all convertible or exercisable
securities) by the number of Common Shares then outstanding (assuming full
conversion and exercise of all convertible or exercisable securities but
excluding the New Securities so issued).

              (b)  Notice.  The Company shall give written notice of the
                   -------
proposed issuance of New Securities to each Purchaser Holder not later than
thirty (30) days prior to issuance. Such notice shall contain all material terms
and conditions of the issuance and of the New Securities. Each Purchaser Holder
may elect to exercise all or any portion of its rights under this Section 3 by
giving written notice to the Company within thirty (30) days of the Company's
notice. If the consideration paid by others for the New Securities is not cash,
the value of the consideration shall be determined in good faith by the
Company's Board of Directors (with at least one Series B Director (as defined in
Section 7 below) voting to approve the value so determined), and any electing
Purchaser Holder shall pay the cash equivalent thereof as so determined. All
payments shall be delivered by electing Purchaser Holders to the Company not
later than the date specified by the Company in its notice, but in no event
earlier than thirty-five (35) days after the Company's notice. Each Purchaser
Holder shall have a right of over allotment such that, if any other Purchaser
Holder fails to exercise the right to purchase its full Ratable Portion of the
New Securities, the other participating Purchaser Holders may,

                                       4
<PAGE>

before the date ten (10) days following the expiration of the thirty (30) day
period, set forth above, exercise an additional right to purchase, on a pro rata
basis, the New Securities not previously purchased by so notifying the Company,
in writing, within such ten (10) day period. Each Purchaser Holder shall be
entitled to apportion New Securities to be purchased among its partners and
affiliates (which, in the case of First Union Capital Partners, Inc., shall be
deemed to include First Union Corporation or any Person directly or indirectly
controlling, controlled by or under common control with First Union Corporation
and, in the case of Meritage Private Equity Fund, L.P. shall include Meritage
Investment Partners, LLC and any entity controlling, controlled by or under
common control with such Person), provided that such Purchaser Holder notifies
the Company of such allocation.

         4.   Right of Co-Sale.
              ----------------

              (a)  The Right.  If at any time a Selling Stockholder proposes to
                   ---------
sell any shares of Stock to any third party in a transaction involving the sale
of more than five percent (5%) of the then-outstanding Common Stock determined
on an as-converted basis (a "Co-Sale Transaction"), then the Sale Notice
required by Section 2 shall be delivered to all Stockholders. In the event that,
after giving effect to all purchases of such Stock by the Company and the
Purchaser Holders pursuant to Section 2, the amount of Stock to be sold to such
third party continues to represent at least five percent (5%) of the then-
outstanding Common Stock on an as-converted basis, then each Stockholder which
notifies the Selling Stockholder in writing within 30 days following receipt of
the Sale Notice (a "Co-Seller") shall have the opportunity to sell a pro rata
portion of the remaining Stock which the Selling Stockholder proposes to sell to
such third party in the Co-Sale Transaction. In the event a Co-Seller exercises
its right of co-sale hereunder, the Selling Stockholder shall assign so much of
his interest in the proposed agreement of sale as the Co-Seller shall be
entitled to and shall request hereunder, and the Co-Seller shall assume such
part of the obligations of the Selling Stockholder under such agreement as shall
relate to the sale of the securities by the Co-Seller. For the purposes of this
Section 4, the "pro rata portion" which each Co-Seller shall be entitled to sell
shall be an amount of Stock equal to a fraction of the total amount of Stock
proposed to be sold to such third party (after giving effect to all purchases
pursuant to Section 2), the numerator of which shall be the number of shares of
Stock owned by such Co-Seller and the denominator of which shall be the total
number of shares of Stock then held by the Selling Stockholder and all Co-
Sellers (giving effect in each case to the conversion of all Preferred Shares
into Common Stock). Insofar as possible this right of co-sale shall apply to
Stock of the same class or classes as the Stock subject to the Sale Notice. If
any Person desiring to exercise its rights of co-sale hereunder does not have a
sufficient amount of Stock of the same class as the Stock subject to the Sale
Notice, such Person may substitute Stock of another class so long as such class
ranks senior in liquidation to the class of Stock subject to the Sale Notice. In
the event the proposed Transfer is of Common Stock and a Person wishing to
exercise its rights of co-sale hereunder does not have sufficient shares of
Common Stock, but has Preferred Shares, such Person may convert a sufficient
number of Preferred Shares into Common Stock in accordance with the procedures
set forth in the Certificate of Incorporation, as amended.

              (b)  Failure to Notify.  If within thirty (30) days following
                   -----------------
receipt of the Sale Notice, any Stockholder fails to notify the Selling
Stockholder that it desires to

                                       5
<PAGE>

participate in the Co-Sale Transaction, then the Selling Stockholder may effect
the Co-Sale Transaction within a period of ninety (90) days after the date of
the Sale Notice without the participation of such Stockholder. Any such sale
shall be made only to persons identified in the Sale Notice and at the same
price and upon the same terms and conditions as those set forth in the Sale
Notice. In the event the Selling Stockholder has not sold the Stock or entered
into an agreement to sell the Stock within such ninety (90) day period, the
Selling Stockholder shall not thereafter sell any Equity Securities without
again complying with Section 2 and this Section 4.

              (c)  Prohibited Transfers.  In the event that a Selling
                   --------------------
Stockholder should sell any Stock in contravention of the co-sale rights under
this Agreement (a "Prohibited Transfer"), each holder of such co-sale rights, in
addition to such other remedies as may be available at law, in equity or
hereunder, shall have the put option provided below, and such Selling
Stockholder shall be bound by the applicable provisions of such option. In the
event of a Prohibited Transfer, each holder of co-sale rights shall have the
right to sell to such Selling Stockholder the type and number of shares of Stock
equal to the number of shares each holder of co-sale rights would have been
entitled to transfer to the purchaser under Section 4(b) hereof had the
Prohibited Transfer been effected pursuant to and in compliance with the terms
hereof. Such sale shall be made on the following terms and conditions:

                   (i)   The price per share at which the shares are to be sold
              to the Selling Stockholder shall be equal to the price per share
              paid by the purchaser to such Selling Stockholder in such
              Prohibited Transfer. The Selling Stockholder shall also reimburse
              each co-sale rights holder for any and all fees and expenses,
              including legal fees and expenses, incurred pursuant to the
              exercise or the attempted exercise of the rights under Section 4.

                   (ii)  Within ninety (90) days after the date on which a
              holder of co-sale rights received notice of the Prohibited
              Transfer or otherwise became aware of the Prohibited Transfer,
              such Person shall, if exercising the option created hereby,
              deliver to the Selling Stockholder the certificate or certificates
              representing shares to be sold, each certificate to be properly
              endorsed for transfer.

                   (iii) Such Selling Stockholder shall, upon receipt of the
              certificate or certificate for the shares to be sold by a co-sale
              rights holder pursuant to this Section 4(e), pay the aggregate
              purchase price therefor and the amount of reimbursable fees and
              expenses, as specified in Section 4(e)(i), in cash or by other
              means acceptable to the co-sale rights holder.

         5.   Limitations to Rights of First Refusal and Co-Sale.
              --------------------------------------------------
Notwithstanding the provisions of Sections 2 and 4 of this Agreement, each
Purchaser Holder may sell or otherwise assign, with or without consideration, an
unlimited amount of Stock to any spouse or member of his immediate family, or to
a custodian, trustee (including a trustee of a voting trust), executor or other
fiduciary for the account of his spouse or members of his immediate family, or
to a trust for himself, or to a charitable remainder trust or, in the case of
First Union Capital Partners, Inc., to

                                       6
<PAGE>

First Union Corporation or any Person directly or indirectly controlling,
controlled by or under common control with First Union Corporation or, in the
case of Meritage Private Equity Fund, L.P., Meritage Private Equity Parallel
Fund, L.P. or Meritage Entrepreneurs, L.P. to Meritage Investment Partners, LLC
and any Person controlling, controlled by or under common control with such
Person or any of their respective partners or, in the case of J.P. Morgan
Investment Corporation or Sixty Wall Street SBIC Fund, L.P., to J.P. Morgan &
Co. Incorporated and any Person controlling, controlled by or under common
control with J.P. Morgan & Co. Incorporated or, in the case of General Electric
Capital Corporation, to General Electric Corporation and any Person controlling,
controlled by or under common control with General Electric Corporation or, in
the case of Stolberg, Meehan & Scano II, L.P., to Stolberg, Meehan & Scano LLC
and any Person controlling, controlled by or under common control with Stolberg,
Meehan & Scano LLC; provided that each such transferee or assignee, prior to the
completion of the sale, transfer or assignment shall have executed documents
assuming the obligations of the Purchaser Holder under this Agreement with
respect to the transferred securities. Notwithstanding the provisions of Section
4 of this Agreement, each of Art Zeile and Joel Daly may sell his Common Shares
without the participation of any Co-Seller following the termination of his
employment with the Company, other than for Cause, or following a material
reduction in his (i) duties and responsibilities or (ii) compensation, unless
agreed to by such Common Holder or required by law, or a material change in his
responsibilities which are not agreed to by such Common Holder. As used herein,
"Cause" shall mean a termination for any of the following reasons: (i) engaging
in intentional misconduct which would tend to discredit the Company; (ii) being
convicted of a felony; (iii) committing an act of fraud against the Company or
the willful material misappropriation of property belonging to the Company; (iv)
materially breaching any proprietary information agreement between such Common
Holder and the Company or (v) willfully disregarding such Common Holder's duties
despite adequate warnings from the Board.

         6.   Drag-Along Rights.  If holders of at least seventy-five percent
              -----------------
(75%) of the then outstanding Preferred Shares approve a transaction to sell, or
in any other way, directly or indirectly convey, assign, distribute, pledge,
encumber or otherwise dispose of all or substantially all of the Company's
assets, property or business or merge into or consolidate with any other
corporation (other than a wholly-owned subsidiary of the Company) or effect any
transaction or series of related transactions in which more than fifty percent
(50%) of the voting power of the Company is disposed of (collectively, a "Drag-
Along Transaction"), then, upon thirty (30) days written notice to the other
Stockholders and the Company (the "Drag-Along Notice"), which notice shall
include reasonable details of the proposed transaction, including the proposed
time and place of closing and the consideration to be received by the
Stockholders in such transaction, each Stockholder shall be obligated to, and
shall sell, transfer and deliver, or cause to be sold, transferred and
delivered, to such third party, all of his Equity Securities in the same
transaction at the closing thereof (and will deliver certificates for all of his
shares at the closing, free and clear of all liens, claims, or encumbrances
except those arising under this Agreement and the Amended and Restated
Investors' Rights Agreement of even date herewith).  Each Common Holder shall
receive the same consideration per share on an as-converted to Common Stock
basis upon consummation of the Drag-Along Transaction as is received by the
holders of Preferred Shares after giving effect to any liquidation preference to
which any Person is entitled to pursuant to the Company's Certificate of
Incorporation, as amended; provided, however, that if within thirty (30) days of
receipt of the Drag-Along Notice, the Company

                                       7
<PAGE>

irrevocably commits in writing to use its best efforts to complete a firm
commitment underwritten public offering pursuant to an effective registration
statement under the Securities Act covering the offer and sale of the Company's
Common Stock at a price per share of not less than the price per share which the
holders of the Equity Securities (on an as-converted to Common Stock basis)
would receive upon the consummation of the Drag-Along Transaction (a "Qualified
IPO"), then the closing of the Drag-Along Transaction shall be suspended until
the earlier of (i) one hundred twenty (120) days after the Company so commits or
(ii) the date the Company determines that it will be unable to complete the
Qualified IPO within such 120-day period.

         7.   Board of Directors.
              ------------------

              (a)  Composition.  The Stockholders agree that, in any election of
                   -----------
directors of the Company (or action by written consent in lieu thereof), they
shall vote all shares of capital stock of the Company owned or controlled by
them (or act by written consent) to elect a Board of Directors comprised of
seven members designated as follows:

                   (i)   two directors (the "Common Directors"), each of whom
              shall be an executive officer of the Company designated by the
              holders of a majority of the then-outstanding Common Stock
              (currently Art Zeile and Joel Daly);

                   (ii)  one director (the "Series A Director") designated by
              the holders of a majority of the then-outstanding Series A
              Preferred Stock (currently L. Watts Hamrick) so long as at least
              1,650,000 shares of Series A Preferred Stock remain outstanding;

                   (iii) two directors (the "Series B Directors") designated
              by the holders of a majority of the then-outstanding Series B
              Preferred Stock, of which one member shall be designated by First
              Union Capital Partners, Inc. (currently Scott Perper) and one
              member shall be designated by Meritage Private Equity Fund, L.P.
              (currently G. Jackson Tankersley, Jr.), in each case so long as
              such Stockholder and its affiliates continues to hold at least
              1,149,851 shares of Series B Preferred Stock; and

                   (iv)  two independent directors (the "Outside Directors")
              selected by the holders of a majority of the then-outstanding
              Common Stock and approved by the holders of a majority of the
              then-outstanding Series A, Series B and Series C Preferred Stock
              (currently Stephen O. James and Donald F. Detampel, Jr.).

The obligation to vote shares in accordance with this Section 7 shall be
specifically applicable to and enforceable against any transferees of the
parties hereto.

              (b)  Vacancies; Removal.  In the event of any vacancy in
                   ------------------
the Board of Directors, each of the Stockholders agree to vote all shares of
stock owned or controlled by them

                                       8
<PAGE>

and to otherwise use their best efforts to fill such vacancy so that the Board
of Directors of the Company will include directors designated as provided in
Section 7(a) above. Each of the Stockholders agrees to vote all shares of stock
owned by them for the removal of a director whenever (but only whenever) there
shall be presented to the Board of Directors the written direction that such
director be removed executed by the person or persons entitled to designate such
director pursuant to Section 7(a).

              (c)  Meetings.  The Board of Directors shall hold regularly
                   --------
scheduled meetings as determined by a majority of the Board of Directors. The
Company will give each Director written notice at least three (3) days (24
hours, in the case of a telephone meeting) in advance of all meetings of the
Board of Directors and all meetings of committees of the Board of Directors. If
the Company proposes to take any action by written consent in lieu of a meeting
of its Board of Directors or any committee thereof, the Company shall give
written notice thereof to each such Director prior to the effective date of such
consent describing in reasonable detail the nature and the substance of such
action.

              (d)  Expenses and Insurance.  The Company shall reimburse all
                   ----------------------
persons serving as directors, consistent with the Company's policies for such
reimbursement, if any, for their actual and reasonable out-of-pocket expenses
incurred in attending meetings of the Board of Directors and all committees
thereof.  In addition, the Company shall maintain directors' and officers'
liability insurance from reputable insurers of sound financial standing in such
amounts as shall be reasonably requested by the Board of Directors.

              (e)  Compensation Committee of the Board of Directors.  The Board
                   ------------------------------------------------
of Directors shall establish a compensation committee (the "Compensation
Committee") to which it shall delegate the authority to take all actions with
respect to the Option Plan.  The Compensation Committee shall consist of four
members, one of which shall be a Common Director who is also an officer of the
Company (which person shall be a non-voting member), two of which shall be the
Series B Directors and one of which shall be an Outside Director.

         8.   Legend.  Each existing or replacement certificate for shares
              ------
now owned by the Purchasers and Company Holders shall bear the following legend
upon its face:

         "THE OWNERSHIP, VOTING, TRANSFER, ENCUMBRANCE, PLEDGE, ASSIGNMENT OR
         OTHER DISPOSITION OF THIS CERTIFICATE AND THE SHARES OF STOCK
         REPRESENTED THEREBY, ARE SUBJECT TO THE RESTRICTIONS CONTAINED IN A
         STOCKHOLDERS' AGREEMENT AMONG THE COMPANY AND CERTAIN STOCKHOLDERS.
         COPIES OF THE AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE
         SECRETARY OF THE COMPANY."

         9.   Public Offering.  In the event that the Board of Directors of the
              ---------------
Company approves an initial public offering of the Common Stock of the Company,
each of the Company

                                       9
<PAGE>

Holders shall take all necessary or desirable actions in connection with the
consummation of the initial public offering. In the event that such public
offering is an underwritten offering and the managing underwriters advise the
Company in writing that in their opinion the current capital structure may
adversely affect the marketability of the offering, each of the Company Holders
shall consent to and vote for a recapitalization, reorganization and/or exchange
of the Company's capital stock into securities that the managing underwriters
and the Board of Directors find acceptable and shall take all necessary or
desirable actions in connection with the consummation of the recapitalization,
reorganization and/or exchange; provided that the resulting securities reflect
and are consistent with the rights and preferences set forth in the Company's
Certificate of Incorporation as in effect immediately prior to such public
offering.

         10.  "Market Stand-Off" Agreement.  Each Company Holder hereby agrees
              ----------------------------
that, during the period of duration (not to exceed one-hundred eighty (180) days
in the case of the Company's initial public offering or 90 days in any
subsequent registration) specified by the Company and an underwriter of Common
Stock or other securities of the Company following the effective date of the
Company's registration statement in connection with its initial firm-commitment
underwritten offering of Common Stock or other securities to the general public,
it shall not, to the extent requested by the Company or such underwriter,
directly or indirectly sell, offer to sell, contract to sell (including, without
limitation, any short sale), grant any option to purchase or otherwise transfer
or dispose of (other than to donees who agree to be similarly bound) any
securities of the Company held by it, except Common Stock or other securities
included in such registration.  In order to enforce the foregoing covenant, the
Company may impose stop-transfer instructions with respect to such securities of
each Company Holder (and the shares or securities of every other person subject
to the foregoing restriction) until the end of such period.  This covenant shall
survive termination of this Agreement pursuant to Section 13.

         11.  Notices.  All notices, demands or other communications to be
              -------
given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given when delivered personally
to the recipient, sent to the recipient by reputable overnight courier service
(charges prepaid), or transmitted by facsimile or electronic mail (with request
for immediate confirmation of receipt in a manner customary for communications
of such type and with physical delivery of the communication being made by one
of the other means specified in this Section as promptly as practicable
thereafter).  Such notices, demands and other communications shall be addressed
(i) in the case of a Stockholder, to his or its address as is designated in
writing from time to time by such party, (ii) in the case of the Company, to its
principal office, and (iii) in the case of any transferee of a party to this
Agreement or its transferee, to such transferee at its address as designated in
writing by such transferee to the Company from time to time.

         12.  Assignment of Rights.  This Agreement and the rights and
              --------------------
obligations of the parties hereunder shall inure to the benefit of, and be
binding upon, the parties' respective successors, assigns and legal
representatives; provided, however, that the rights of the Stockholders
hereunder are only assignable to an assignee or transferee (i) who acquires all
of the securities of the Company held by the transferring Stockholder on the
date hereof or, if less than all, securities representing at least fifty percent
(50%) of the securities of the Company held by such transferring Stockholder as
of the date of this Agreement, or (ii) or to a transferee

                                       10
<PAGE>

described in the first sentence of Section 5, and it shall be a requirement of
such transfer that such assignee shall then become a party to this Agreement.

         13.  Term.  This Agreement shall terminate upon the earlier of (i) the
              ----
closing of a firm commitment underwritten public offering pursuant to an
effective registration statement under the Securities Act covering the offer and
sale of the Company's Common Stock (x) at a public offering price of (A) with
respect to shares other than Series C Preferred Stock and then only with respect
to Section 3, not less than $26.00 per share (adjusted to reflect subsequent
stock dividends, stock splits or similar transactions affecting the outstanding
Common Stock) and (B) otherwise, not less than $35.00 per share (or such lesser
amount as may be agreed to in writing by at least 75% of the holders of Series C
Preferred Stock) (adjusted to reflect subsequent stock dividends, stock splits
or similar transactions affecting the outstanding Common Stock), (y) resulting
in gross proceeds to the Company of not less than $50,000,000, and (z) after
which the Common Stock is either listed on a national securities exchange or
traded in the NASDAQ National Market System (a "Qualified Public Offering");
(ii) ten years from the date of this Agreement; (iii) the acquisition of the
Company by another entity by means of any transaction or series of related
transactions (including, without limitation, any reorganization, merger or
consolidation) that results in the Company's stockholders immediately prior to
such transaction not holding (by virtue of such shares or securities issued
solely with respect thereto) at least 50% of the voting power of the surviving
or continuing entity; (iv) a sale, conveyance or disposition of all or
substantially all of the assets of the Company unless the Company's stockholders
immediately prior to such transaction will, as a result of such sale, conveyance
or disposition hold (by virtue of securities issued as consideration for such
sale, conveyance or disposition) at least 50% of the voting power of the
purchasing entity; or (v) the effectuation by the Company or its stockholders of
a transaction or series of related transactions that results in the Company's
stockholders immediately prior to such transaction not holding (by virtue of
such shares or securities issued solely with respect thereto) at least 50% of
the voting power of the Company.

         14.  Entire Agreement.  This instrument contains the entire
              ----------------
understanding of the parties with respect to the subject matter hereof,
supersedes all other agreements between or among any of the parties with respect
to the subject matter hereof and cannot be altered or otherwise amended except
pursuant the terms of Section 17 below.  This Agreement shall be interpreted
under the laws of the State of Colorado without reference to its principles of
conflicts of law.

         15.  Attorneys' Fees.  If any action at law or in equity is necessary
              ---------------
to enforce or interpret the terms of this Agreement, the prevailing party shall
be entitled to reasonable attorneys' fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

                                       11
<PAGE>

         16.  Further Instruments and Actions.  The parties agree to execute
              -------------------------------
such further instruments and to take such further action as may reasonably be
necessary to carry out the intent of this Agreement.  The parties further agree
to cooperate affirmatively with the Company, to the extent reasonably requested
by the Company to enforce rights and obligations to this Agreement.

         17.  Amendments and Waivers.  Any term of this Agreement may be
              ----------------------
amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of at least seventy-five percent (75%) of the outstanding
Preferred Shares; provided, however, that any amendment or waiver adversely
affecting the rights of the persons holding Common Shares and not similarly
adversely affecting the rights of holders of Preferred Shares shall require the
written consent of a majority in interest of the outstanding Common Shares.  Any
amendment or waiver effected in accordance with this Section shall be binding
upon the Company and all Stockholders and their respective successors and
assigns.

         18.  Rights; Separability.  Unless otherwise expressly provided
              --------------------
herein, a Company Holder's rights hereunder are several rights, not rights
jointly held with any other Company Holder.  In case any provision of this
Agreement shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

                                       12
<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed effective as
    of the date and year first above written.

INFLOW, INC.

By:  /s/ Art Zeile
     -------------------------------------
     President and Chief Executive Officer

          Address:  938 Bannock Street
                    Suite 300
                    Denver, CO 80204

PURCHASERS:

<TABLE>
<CAPTION>
<S>                                               <C>
First Union Capital Partners, Inc.                Meritage Private Equity Fund, L.P.
                                                  Meritage Private Equity Parallel Fund, L.P.
                                                  Meritage Entrepreneurs Fund, L.P.
By:  /s/ L. Watts Hamrick, III
     ---------------------------------------
     Senior Vice President                        By:  Meritage Investment Partners, LLC

Address:  301 South College Street                By: /s/ G. Jackson Tankersley, Jr.
Charlotte, NC 28288-0732                              ------------------------------
                                                       Managing Member

                                                      Address:  1600 Wynkoop Street, Suite 300
                                                                Denver, CO  80202

J.P. Morgan Investment Corporation                Sixty Wall Street SBIC Fund, L.P.,
By: /s/ Michael Robinson                          By:   Sixty Wall Street SBIC Corporation, its
    ------------------------------                      General Partner
Name: ____________________________
Title: ___________________________                By: /s/ Michael Robison
                                                      -----------------------------
                                                  Name: ___________________________
Address: 101 California Street, 37th Floor        Title: __________________________
         San Francisco, CA  94111
                                                      Address: 101 California Street, 37th Floor
                                                               San Francisco, CA  94111

</TABLE>

                                       13
<PAGE>

(Signature Page to Third Amended and Restated Stockholders Agreement continued)

PURCHASERS (continued):
                                            Stolberg, Meehan and Scano II, L.P.
/s/ Arthur H. Zeile                           By:  Stolberg, Meehan & Scano LLC,
------------------------------------               General Partner

/s/ Joel C. Daly
------------------------------------
                                              By: /s/ Peter Van Genderen
                                              Name: ___________________________
                                              Title: __________________________

                                            Address: Republic Plaza
                                                     370 17th Street
                                                     Suite 4240
                                                     Denver, CO 80202

                                        COMMON HOLDERS:

                                        /s/ Arthur H. Zeile
                                        ----------------------------------------

                                        /s/ Joel C. Daly
                                        ----------------------------------------

                                        /s/ Stephen O. James
                                        ----------------------------------------

                                       14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]