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                                                                    EXHIBIT 10.9


October 13, 1999



Mr. Craig W. Dougherty
1885 Sunset Plaza Drive
Los Angeles, CA 90069

Dear Craig,

On behalf of the Board of Directors, I am pleased to offer you the position of
Executive Vice President of Finance and Chief Financial Officer for Replay
Networks, Inc. I have attached the details of your offer in an Appendix to this
letter. This offer expires on October 21, 1999.

Craig, there are many exciting challenges directly ahead and we have high
expectations for the Company. I am confident that with your skills and
experience, you will make a great contribution and will develop your skills at
the same time. We think you'll find this new venture to be a fun and exciting
place to work. You'll be working with a small group of excellent, dedicated
professionals producing an innovative new consumer electronics product and
service. We're looking forward to working with you!

Best regards,


/s/ Kim LeMasters

Kim LeMasters
CEO
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October 13, 1999
Page 2


Appendix

The following sets forth the terms of your employment relationship with Replay
Networks, Inc. (the "Company").
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1)   Position.
     --------

     a)   You will serve as the Executive Vice President of Finance and Chief
          Financial Officer. You will report to the Company's CEO.

     b)   You agree to the best of your ability and experience that you will at
          all times loyally and conscientiously perform all of the duties and
          obligations required of and from you pursuant to the express and
          implicit terms hereof, and to the reasonable satisfaction of the
          Company. During the term of your employment, you further agree that
          you will devote all of your business time and attention to the
          business of the Company, the Company will be entitled to all of the
          benefits and profits arising from or incident to all such work
          services and advice, you will not render commercial or professional
          services of any nature to any person or organization, whether or not
          for compensation, without the prior written consent of the Company's
          CEO, and you will not directly or indirectly engage or participate in
          any business that is competitive in any manner with the business of
          the Company.

     c)   Your start date will be November 1, 1999. ("Start Date").

2)   Compensation.
     ------------

     a)   Base Salary.  You will be paid a monthly salary of $20,833.33, which
          -----------
          is equivalent to $250,000 on an annualized basis. Your salary will be
          payable in two equal payments per month pursuant to the Company's
          regular payroll policy (or in the same manner as other officers of the
          Company).

          You will also be eligible to participate in the Company's incentive
          bonus program. The CEO will develop jointly with you the goals and
          objectives connected with the incentive bonus award. Based on the
          achievement of both the Company and individual performance goals, you
          will be eligible to receive an annual bonus of up to 40% of your base
          salary.

     b)   Sign-on/Relocation Bonus.  You will be eligible to receive a sign-on
          bonus calculated as the lesser of i) $100,000 or ii) the difference
          between $200,000 and the amount of the fiscal 1999 bonus you receive
          from Union Bank of California, subject to a minimum sign-on bonus of
          $50,000. In the event that you voluntarily resign or are terminated
          with Cause from your position with the Company prior to the date that
          is twelve months from the date your employment commences, you will
          repay the Company the full sum of your sign-on bonus. Further, in the
          event that you voluntarily resign or are terminated with Cause from
          your position with the Company after the date that is twelve months
          from the date your employment commences but prior to the date that is
          twenty-four months from the date your employment commences, you will
          repay the Company 50% of the sign-on bonus. Such payment shall be in
          the form of personal check or other negotiable instrument acceptable
          by the Company.

          You will also receive a $25,000 relocation allowance, payable with
          your first paycheck after commencing employment (reduced by applicable
          tax withholdings).

     c)   Annual Review.  Your base salary will be reviewed each calendar year
          -------------
          as part of the Company's normal salary review process.
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          October 13, 1999
          Page 3


3)   Stock.
     -----

     a)   On your Start Date the Board of Directors will grant you an option to
          purchase 600,000 shares of the Company Common Stock. The exercise
          price for these options will be the fair market value of the Company
          Common Stock at the date of grant.

          The options will vest according to a 4 year exercise schedule which
          calls for the initial vesting of 12.5% of the total number of shares
          after the first 6 months of continuous service, and provides for
          monthly vesting at the rate of an additional 1/48/th/ of the total
          number of shares at the close of each month of employment, over the
          remainder of the vesting schedule.

          The option will be an incentive stock option to the maximum allowed by
          the tax code and will be subject to the terms of the Company's Stock
          Option Plan and the Stock Option Agreement between you and the
          Company. Accordingly, the Board will allow you to elect which portion
          of the shares you obtain in the form of: 1) immediate purchase under
          Section 83(b) of the Internal Revenue Code, subject to re-purchase; 2)
          Incentive Stock Option; 3) Non-Qualified Options. Corporate counsel at
          Venture Law Group will be available to assist you in evaluating the
          tax benefits of these different stock and option programs. The grant
          of the option will be subject to your execution of a mutually
          acceptable option agreement.

          In connection with the exercise of your option, the Company will
          provide a loan of up to $1,000,000. This loan will be evidenced by a
          full recourse promissory note, which will be secured by the shares
          purchased and will provide for interest at the minimum Applicable
          Federal Rate, compounded annually. The term of this Note shall be five
          years, and any interest accrued will be due at such time as the
          principal is due.

4)   Benefits.
     --------

     a)   Insurance Benefits.  The Company will provide you with standard
          ------------------
          medical and dental insurance benefits. In addition, the Company
          currently indemnifies all Officers to the maximum extent permitted by
          law. Upon entering into the Company's standard form of Indemnification
          Agreement, the Company will advance any expenses for which
          indemnification is available to the extent allowed by applicable law.

     b)   Vacation, Sick Leave and Holidays.  You will be entitled to three
          ---------------------------------
          weeks paid vacation/sick leave per year, plus eight paid holidays.

     c)   401(K).  You will be eligible to participate in the Company's standard
          ------
          401(K) plan.

5)   Severance Agreement.
     -------------------

     a)   If your employment is terminated by the Company or its successor for
          any reason other than Cause (as defined below) or you become subject
          to an Involuntary Termination (as defined below), within 12 months of
          a Change in Control (as defined below), you will be entitled to
          receive continuation of your base salary and insurance benefits for a
          period of 6 months and continued vesting under all stock options or
          restricted stock purchases for the greater of twelve (12) months or
          vesting of fifty (50%) percent of the shares that remain unvested at
          the time of such termination.

     b)   In the event 5a does not apply, and your employment is terminated by
          the Company or its successor for any reason other than Cause (as
          defined below) or you become subject to an Involuntary Termination (as
          defined below), you will be entitled to receive continuation of your
          base salary and insurance benefits and continued vesting under all
          stock options or restricted stock purchases for a period of 6 months
          following the date of termination of your employment.
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October 13, 1999
Page 4


     c)   "Change in Control" shall mean i) the Company's merger or
           -----------------
          consolidation with another entity, or a series of related
          transactions, as a result of which the shareholders of the Company
          immediately prior to the transaction own less than 50% of the voting
          power of the entity surviving or ii) the sale of substantially all of
          the assets of Replay. Cause" shall mean (I) gross negligence or
                                -----
          willful misconduct in the performance of your duties to the Company
          where such gross negligence or willful misconduct has resulted or is
          likely to result in substantial and material damage to the Company or
          its subsidiaries, (ii) repeated unexplained or unjustified absence
          from the Company, (iii) a material and willful violation of any
          federal or state law causing material harm to the standing and
          reputation of the Company; (iv) commission of any act of fraud with
          respect to the Company; (v) your material breach of this agreement if
          not cured within 10 days of notification by the Company or a material
          breach of your Employee Inventions and Confidentiality Agreement; (vi)
          conviction of a felony or a crime involving moral turpitude causing
          material harm to the standing and reputation of the Company, in each
          case as determined in good faith by the Board of Directors of the
          Company.

     d)   "Involuntary Termination" shall include any termination by the Company
           -----------------------
          other than for Cause and your voluntary termination, upon 30 days
          prior written notice to the Company, following (I) a material
          reduction or change in job duties, responsibilities and requirements
          inconsistent with your position with the Company and your prior
          duties, responsibilities and requirements (taking into account the
          difference in job title and duties that may occur following an
          acquisition but that do not actually result in a material change in
          your job duties, responsibilities, and requirements); (ii) any
          reduction of your base compensation (other than in connection with a
          general decrease in base salaries for most similarly situated
          employees); or (iii) your refusal to relocate to a location more than
          50 miles from the Company's current location.

     e)   If due to the benefits provided under this letter agreement, you are
          subject to any excise tax due to characterization of any amount
          payable hereunder as excess parachute payments pursuant to Sections
          280G and 4999 of the Internal Revenue Code, Replay will pay the excise
          taxes otherwise payable by you under Section 4999 (but not any income
          or excise taxes on such payment of taxes by Replay on your behalf)
          with respect to any amounts payable to you under this agreement, up to
          a maximum of $1,000,000.

6)   Confidentiality of Terms.  You agree to follow the Company's strict policy
     ------------------------
     that employees must not disclose, either directly or indirectly, any
     information, including any of the terms of this agreement, regarding
     salary, bonuses or stock purchase or option allocations to any person,
     including other employees of the Company; provided, however, that you may
     discuss such terms with members of your immediate family and any legal, tax
     or accounting specialists who provide you with individual legal, tax or
     accounting advice.

7)   Employee Inventions and Confidentiality Agreement.  As an employee of
     -------------------------------------------------
     Replay Networks, you will have access to certain Company confidential
     information and you may, during the course of your employment, develop
     certain information or inventions which will be the property of the
     Company. To protect the interest of the Company, you will be required to
     sign the Company's standard "Employee Inventions and Confidentiality
     Agreement" as a condition of your employment.

8)   At-Will Employment.  Notwithstanding the Company's obligation described in
     ------------------
     Section 5 above, your employment with the Company will be on an "at will"
     basis, meaning that either you or the Company may terminate your employment
     at any time for any reason or no reason, without further obligation or
     liability.
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October 13, 1999
Page 5


To indicate your acceptance of this offer, please sign and date this letter in
the space provided below and return it to Human Resources, attention: Chris
Copeland.  This letter sets forth the terms of your employment with the Company
and supersedes any prior representations or agreements, whether written or oral.
This letter may not be modified or amended except by written agreement, signed
by the Company and by you.

                                        Very truly yours,

                                        REPLAY NETWORKS, INC.


                                        By:        /s/ Kim LeMasters
                                           --------------------------------

                                        Name/Title:   Kim LeMasters, CEO
                                                   ------------------------


ACCEPTED AND AGREED:


       /s/ Craig W. Dougherty
----------------------------------
Craig W. Dougherty

       10/21/99
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Date