121203 S3 Exhibit 4.11





Exhibit 4.11

INVESTOR RIGHTS AGREEMENT

This INVESTOR RIGHTS AGREEMENT (this "Agreement") is made as of
November 12, 2003 by and among 8x8, Inc., a Delaware corporation (the
"Company") and the investors listed on Exhibit A hereto
(collectively the "Investors") 

WHEREAS, the Company desires to sell to the Investors, and the Investors
desire to purchase up to an aggregate of 1,860,055 shares of Common Stock of the
Company (the "Shares"), and 5-year warrants, exercisable to purchase up
to an aggregate of 1,860,055 shares of Common Stock at $3.40 per share (the
"Purchased Warrants"), upon the terms and conditions set forth in that
certain Unit Subscription Agreement, dated of even date herewith, between the
Company and the Investors (the "Unit Subscription Agreement"); and 

WHEREAS, the terms of the Unit Subscription Agreement provide that it shall
be a condition precedent to the closing of the transactions thereunder for the
Company and the Investors to execute and deliver this Agreement.

NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the parties hereto hereby agree as follows:



	Definitions. The following terms shall have the meanings
provided below:

"Additional Shares" shall mean any additional shares of Common Stock
which may be issued or become issuable from time to time upon the exercise of a
Purchased Warrant, or a distribution with respect to, or in exchange for, or in
replacement of a Purchased Warrant, as a result of anti-dilution provisions of a
Purchased Warrant or otherwise.

"Board of Directors" shall mean the board of directors of the
Company.

"Closing" shall have the meaning ascribed to such term in the Unit
Subscription Agreement. 

"Common Stock" shall mean the common stock, $.001 par value per share,
of the Company. 

"Convertible Securities" means (i) options to
purchase or rights to subscribe for Common Stock, (ii) securities by their terms
convertible into or exchangeable for Common Stock or (iii) options to purchase
or rights to subscribe for such convertible or exchangeable securities. 

"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and all of the rules and regulations promulgated thereunder.

"Excluded Stock" shall mean shares of Common Stock
issued by the Corporation (i) issued or issuable to employees, directors or
consultants pursuant to any equity compensation plan approved by the Company's
Board of Directors, (ii) to bona fide leasing companies, strategic partners, or
major lenders, (iii) as the purchase price in a bona fide acquisition or merger
(including reasonable fees paid in connection therewith) or (iv) upon issuance
upon conversion or exercise of the Purchased Warrants. 

"Majority Holders" shall mean, at the relevant time of reference
thereto, those Investors holding more than fifty percent (50%) of the
Registrable Shares held by all of the Investors.

"Other Securities" refers to any stock (other than Common Stock) and
other securities of the Company or any other person (corporate or otherwise)
which the Holders of the Purchased Warrants at any time shall be entitled to
receive, or shall have received, upon the exercise of the Purchased Warrants, in
lieu of or in addition to Common Stock, or which at any time shall be issuable
or shall have been issued in exchange for or in replacement of Common Stock or
Other Securities pursuant to Section 6 of the Purchased Warrants or
otherwise.

"Outstanding S-3" shall mean the registration statement on Form S-3
that (i) the Company has filed with the SEC related to the purchase of common
stock and warrants by certain investors in July 2003, and (ii) has not been
declared effective by the SEC.

"Registrable Shares" shall mean any Shares or any shares of Common
Stock or Other Securities issued or issuable from time to time upon the exercise
of a Purchased Warrant, or a distribution with respect to, in exchange for, or
in replacement of a Purchased Warrant, including without limitation Additional
Shares. 

"Rule 144" shall mean Rule 144 promulgated under the Securities Act
and any successor or substitute rule, law or provision.

"SEC" shall mean the Securities and Exchange Commission.

"Securities Act" shall mean the Securities Act of 1933, as amended,
and all of the rules and regulations promulgated thereunder.


	Effectiveness. This Agreement shall become effective upon the
Closing.


	Mandatory Registration.(a)The Company agrees to use
commercially reasonable efforts to prepare and file with the SEC a registration
statement on Form S-3 (or, if Form S-3 is not then available to the Company, on
such form of registration statement that is then available to effect a
registration of all Registrable Shares) for the purpose of registering under the
Securities Act all of the Registrable Shares for resale by, and for the account
of, the Investors as selling stockholders thereunder (the "Registration
Statement") within thirty (30) days after the Closing. The Registration
Statement shall permit the Investors to offer and sell, on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act, any or all of
the Registrable Shares. Such Registration Statement also shall cover, to the
extent allowable under the Securities Act and the rules promulgated thereunder
(including Rule 416), such indeterminate number of additional shares of Common
Stock resulting from stock splits, stock dividends or similar transactions with
respect to the Registrable Shares.

(b)The Company agrees to use commercially reasonable
efforts to cause the Registration Statement to become effective within ninety
(90) days after the Closing.

(c)If the Registration Statement is not declared
effective by the SEC within one hundred twenty (120) days after the Closing (the
"Effectiveness Deadline"), then in addition to any other rights the Investors
may have hereunder or under applicable law, the Company shall pay to each
Investor an amount in cash, as liquidated damages and not as a penalty, equal to
1% of the aggregate purchase price paid by such Investor (the "Damage Amount")
pursuant to the Unit Subscription Agreement on each thirty day anniversary of
the Effectiveness Deadline until the Registration Statement is declared
effective by the SEC. In the event the Registration Statement is declared
effective within a thirty day anniversary period subsequent to the Effectiveness
Deadline, the Company shall pay damages in an amount calculated by dividing the
Damage Amount by the number of days since the Effectiveness Deadline or most
recent thirty day anniversary thereof.

(d)The Company shall be required to keep the Registration
Statement, as amended, effective until such date that is the earlier of (i) two
years after the Closing, (ii) the date when all of the Registrable Shares
registered thereunder shall have been sold, or (iii) such time as all the
Registrable Shares held by the Investors can be sold pursuant to Rule 144(k) and
without compliance with the registration requirements of the Securities Act
(such date is referred to herein as the "Mandatory Registration Termination
Date"). Thereafter, the Company shall be entitled to withdraw the
Registration Statement and the Investors shall have no further right to offer or
sell any of the Registrable Shares pursuant to the Registration Statement (or
any prospectus relating thereto). 

(e)The Company shall not grant any registration rights that are pari
passu with or senior to the registration rights of the Investors under this
Agreement if such registration rights would adversely affect the Investors'
ability to sell Registrable Shares pursuant to the Registration Statement. The
Company represents that no stockholders other than the Investors have the right
to sell any Common Stock or other securities of the Company pursuant to the
Registration Statement.


	Obligations of the Company. In connection with the Company's
obligation under Section 3 hereof to file a Registration Statement with the SEC
and to use its reasonable efforts to cause the Registration Statement to become
effective as soon as practicable after filing, the Company shall, as
expeditiously as reasonably possible, subject to Section 9 hereof:

	Prepare and file with the SEC such amendments and supplements to the
Registration Statement and the prospectus used in connection therewith as may be
necessary to keep the Registration Statement effective until the Mandatory
Registration Termination Date;
	Furnish to the selling Investors such reasonable number of copies of the
Registration Statement, prospectus and preliminary prospectus, in conformity
with the requirements of the Securities Act, and such other documents
(including, without limitation, prospectus amendments and supplements as are
prepared by the Company in accordance with Section 4(a) above) as the selling
Investors may reasonably request, in order to facilitate the public or other
disposition of such selling Investors' Registrable Shares; 
	Use reasonable efforts to register and qualify the Registrable Shares
covered by the Registration Statement under such other securities or Blue Sky
laws of all states requiring such securities or Blue Sky registration or
qualification, provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or
jurisdictions; and
	Use reasonable efforts to cause all such Registrable Shares registered
hereunder to be listed on each securities exchange (including without limitation
any Nasdaq market) on which securities of the same class issued by the Company
are then listed.




	Furnish Information. (a) It shall be a condition precedent to
the obligations of the Company to take any action pursuant to this Agreement
that the selling Investors shall furnish to the Company such information
regarding them and the securities held by them as the Company shall reasonably
request and as shall be required in order to effect any registration by the
Company pursuant to this Agreement.

(b)The Registration Statement will provide for a plan of distribution
with respect to the Registrable Shares substantially as
follows: The Registrable Shares may be sold from time to time by the Investors,
or by pledgees, donees, transferees or other successors in interest. Such sales
may be made on one or more exchanges or in the over-the-counter market, or
otherwise at prices and at terms then prevailing or at prices related to the
then-current market price, or in negotiated transactions. The Registrable Shares
may be sold by one or more of the following: (a) a block trade in which the
broker or dealer so engaged will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the
transaction; (b) purchases by a broker or dealer as principal and resale by such
broker or dealer for its account pursuant to the resale registration statement;
(c) an exchange distribution in accordance with the rules of such exchange; (d)
ordinary brokerage transactions and transactions in which the broker solicits
purchasers; and (e) transactions between sellers and purchasers without a
broker/dealer. In addition, any securities covered by the Registration Statement
which qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather
than pursuant to the Registration Statement. From time to time the selling
Investors may engage in short sales, short sales versus the box, puts and calls
and other transactions in securities of the issuer or derivatives thereof, and
may sell and deliver the shares in connection therewith. In effecting sales,
brokers or dealers engaged by the selling Investors may arrange for other
brokers or dealers to participate. Brokers or dealers will receive commissions
or discounts from selling Investors in amounts to be negotiated immediately
prior to the sale. 

	Expenses of Registration. All expenses incurred in connection
with the registration of the Registrable Shares pursuant to this Agreement
(excluding underwriting, brokerage and other selling commissions and discounts),
including without limitation all registration and qualification and filing fees,
printing expenses, fees and disbursements of counsel for the Company, and the
reasonable fees and disbursements of one counsel for the selling Investors
selected by the selling Investors not to exceed $2,500, shall be borne by the
Company.


	Indemnification.

	To the extent permitted by law, the Company will indemnify and hold harmless
each selling Investor (including the partners or officers, directors and
stockholders of such Investor), and each person, if any, who controls such
selling Investor within the meaning of the Securities Act, against any losses,
claims, damages or liabilities, joint or several, to which they may become
subject under the Securities Act, the Exchange Act, and other federal or state
securities laws, or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) (i) arise out of or are based upon
any untrue or alleged untrue statement of any material fact contained in the
Registration Statement, in any preliminary prospectus or final prospectus
relating thereto or in any amendments or supplements to the Registration
Statement or any such preliminary prospectus or final prospectus, (ii) arise out
of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements
therein not misleading or (iii) arise out of any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any other federal or
state securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any other federal or state securities law; and will
reimburse such selling Investor, or such officer, director or controlling person
for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the indemnity agreement contained in this
Section 7(a) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the
consent of the Company (which consent shall not be unreasonably withheld or
delayed), nor shall the Company be liable in any such case for any such loss,
damage, liability or action to the extent that it arises out of or is based upon
an untrue statement or alleged untrue statement or omission made in connection
with the Registration Statement, any preliminary prospectus or final prospectus
relating thereto or any amendments or supplements to the Registration Statement
or any such preliminary prospectus or final prospectus, in reliance upon and in
conformity with written information furnished expressly for use in connection
with the Registration Statement or any such preliminary prospectus or final
prospectus by the selling Investors, any broker/dealer acting on their behalf or
controlling person with respect to them.
	To the extent permitted by law, each selling Investor will severally and not
jointly indemnify and hold harmless the Company, each of its directors, each of
its officers who have signed the Registration Statement, each person, if any,
who controls the Company within the meaning of the Securities Act, or any
selling Investors, and all other selling Investors against any losses, claims,
damages or liabilities to which the Company or any such director, officer,
controlling person or such other selling Investor may become subject to, under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereto) arise out of or are based upon any
untrue or alleged untrue statement of any material fact contained in the
Registration Statement or any preliminary prospectus or final prospectus,
relating thereto or in any amendments or supplements to the Registration
Statement or any such preliminary prospectus or final prospectus, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in each case to the extent and only to the extent that
such untrue statement or alleged untrue statement or omission or alleged
omission was made in the Registration Statement, in any preliminary prospectus
or final prospectus relating thereto or in any amendments or supplements to the
Registration Statement or any such preliminary prospectus or final prospectus,
in reliance upon and in conformity with written information furnished by the
selling Investor expressly for use in connection with the Registration
Statement, or any preliminary prospectus or final prospectus; and such selling
Investor will reimburse any legal or other expenses reasonably incurred by the
Company or any such director, officer, controlling person, or other selling
Investor in connection with investigating or defending any such loss, claim,
damage, liability or action, provided, however, that the liability
of each selling Investor hereunder (when aggregated with amounts contributed, if
any, pursuant to Section 7(d)) shall be limited to the difference (the
"Difference") between the amount received by such Investor from the sale of the
Registrable Securities pursuant to the Registration Statement and the amount
paid by such Investor to the Company for such Registrable Securities pursuant to
the Unit Subscription Agreement, and provided further,
however, that the indemnity agreement contained in this Section 7(b)
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of those
selling Investor(s) against which the request for indemnity is being made (which
consent shall not be unreasonably withheld or delayed).

(c)Promptly after receipt by an indemnified party under this Section 7 of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this
Section 7, notify the indemnifying party in writing of the commencement thereof
and the indemnifying party shall have the right to participate in and, to the
extent the indemnifying party desires, jointly with any other indemnifying party
similarly noticed, to assume at its expense the defense thereof with counsel
mutually satisfactory to the indemnifying parties with the consent of the
indemnified party which consent will not be unreasonably withheld, conditioned
or delayed. In the event that the indemnifying party assumes any such defense,
the indemnified party may participate in such defense with its own counsel and
at its own expense, provided, however, that the counsel for the
indemnifying party shall act as lead counsel in all matters pertaining to such
defense or settlement of such claim and the indemnifying party shall only pay
for such indemnified party's reasonable legal fees and expenses for the period
prior to the date of its participation in such defense, and provided
further, however, that the indemnified party (together with all
indemnified parties which may be represented without conflict by one counsel)
shall have the right to retain one separate counsel, with the fees and expenses
to be paid by the indemnifying party, if the representation of the indemnified
party by the counsel retained by the indemnifying party would be inappropriate
due to actual or potential differing interests between the indemnified party and
any other party represented by such counsel in such proceeding. Notwithstanding
the foregoing, the indemnifying party shall not be obligated to pay the fees of
more than one separate counsel. The failure to notify an indemnifying party of
the commencement of any such action will not relieve such indemnifying party of
any liability to the indemnified party under this Section 7 (except to the
extent that such failure materially and adversely affects the indemnifying
party's ability to defend such action), nor shall the omission so to notify an
indemnifying party relieve such indemnifying party of any liability which it may
have to any indemnified party otherwise other than under this Section 7. No
indemnifying party shall, without the consent of the indemnified party, consent
to entry of any judgment or enter into any settlement which does not include as
an unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability in respect to such claim or
litigation and otherwise in form and substance reasonably satisfactory to the
indemnified party.

	If the indemnification provided in this Section 7 is held by a court
of competent jurisdiction to be unavailable to an indemnified party with respect
to any loss, liability, claim, damage or expense referred to herein, then the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amount paid or payable by such indemnified party as a
result of such loss, liability, claim, damage or expense in such proportion as
is appropriate to reflect the relative fault of the indemnifying party on the
one hand and of the indemnified party on the other in connection with the
statements or omissions that shall have resulted in such loss, liability, claim,
damage or expense, as well as any other relevant equitable considerations;
provided that in no event shall any contribution by an Investor under this
Section 7(d), when aggregated with amounts paid, if any, pursuant to Section
7(b), exceed the Difference. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission.
	The obligations of the Company and Investors under this Section 7 shall
survive the completion of any offering of Registrable Shares in a Registration
Statement under Section 3, and otherwise.
	Notwithstanding anything to the contrary herein, the indemnifying party
shall not be entitled to settle any claim, suit or proceeding without the
written consent of the indemnified party unless in connection with such
settlement the indemnified party receives an unconditional release with respect
to the subject matter of such claim, suit or proceeding.


	Reports Under the Exchange Act. With a view to making
available to the Investors the benefits of Rule 144 and any other rule or
regulation of the SEC that may at any time permit the Investors to sell the
Registrable Shares to the public without registration, the Company agrees to use
reasonable efforts: (i) to make and keep public information available, as those
terms are understood and defined in the General Instructions to Form S-3, or any
successor or substitute form, and in Rule 144, (ii) to file with the SEC in a
timely manner all reports and other documents required to be filed by an issuer
of securities registered under the Securities Act or the Exchange Act and (iii)
undertake any additional actions reasonably necessary to maintain the
availability of the Registration Statement or the use of Rule 144.


	Selling Procedures. Any sale of Registrable Shares pursuant to
the registration statement filed in accordance with Section 3 hereof shall be
subject to the following conditions and procedures:

(a)Updating the Prospectus.

	If the Company informs the selling Investor that the Registration Statement
or final prospectus then on file with the SEC is not current or otherwise does
not comply with the Securities Act, the Company shall use its best efforts to
provide to the selling Investor a current prospectus that complies with the
Securities Act as soon as practicable, but in no event later than three (3)
business days after delivery of such notice. The Company's obligation to update
the Registration Statement or final prospectus under this Section 9(a)(i) shall
not be subject to the limitations of Section 9(a)(ii) or (b) below.
	If the Company requires more than three (3) business days to update the
prospectus under Section 9(a)(i) above, the Company shall have the right to
delay the preparation of a current prospectus that complies with the Securities
Act without explanation to such Investor, subject to the limitations set forth
in Section 9(b) below, for a period of not more than forty-five (45) days (or
two periods which total not more than ninety (90) days in the aggregate) during
any twelve-month period.




(b)General. Notwithstanding the foregoing, upon receipt of
any notice from the Company of (i) any request by the SEC or any other federal
or state governmental authority during the period of effectiveness of the
Registration Statement for amendments or supplements to the Registration
Statement or related prospectus or for additional information relating to the
Registration Statement, (ii) the issuance by the SEC or any other federal or
state governmental authority of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for that
purpose, (iii) the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Shares for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, (iv) the happening of any event
which makes any statement made in the Registration Statement or related
prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or which requires the making of any
changes in the Registration Statement or prospectus so that, in the case of the
Registration Statement, it will not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, and that in the case of the
prospectus, it will not contain an untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading or (v)
that, in the judgment of the Company's Board of Directors, it is advisable to
suspend use of the prospectus for a discrete period of time due to pending
corporate developments, public filings with the Commission or that there exists
material nonpublic information about the Company that the Board of Directors,
acting in good faith, determines not to disclose in a registration statement,
then the Company may suspend use of the prospectus (each a "Suspension"),
in which case the Company shall promptly so notify each Investor and each
Investor shall not dispose of Registrable Shares covered by the Registration
Statement or prospectus until copies of a supplemented or amended prospectus are
distributed to the Investors or until the Investors are advised in writing by
the Company that the use of the applicable prospectus may be resumed;
provided, however, that, notwithstanding the foregoing, the
Company may suspend use of the prospectus pursuant to Sections 9(a)(ii),
9(b)(iv) and 9(b)(v), and an Investor may be prohibited from selling or
otherwise disposing of the Registrable Shares covered by the Registration
Statement or prospectus, on not more than two occasions in total during
any twelve-month period and for no more than ninety (90) days in the
aggregate during any such twelve-month period. The Company shall use its best
efforts to ensure the use of the prospectus may be resumed as soon as
practicable. The Company shall use its best efforts to obtain the withdrawal of
any order suspending the effectiveness of the Registration Statement, or the
lifting of any suspension of the qualification (or exemption from qualification)
of any of the securities for sale in any jurisdiction, at the earliest
practicable moment. The Company shall, upon the occurrence of any event
contemplated by clause (iv), prepare a supplement or post-effective amendment to
the Registration Statement or a supplement to the related prospectus or any
document incorporated therein by reference or file any other required document
so that, as thereafter delivered to the purchasers of the Registrable Shares
being sold thereunder, such prospectus will not contain an untrue statement of a
material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

	Pre-emptive Rights. In the event that at any time after the
Original Issue Date the Company proposes to issue additional shares of Common
Stock or Convertible Securities, other than Excluded Stock, and the Investors
collectively hold at least 890,000 shares of Common Stock (subject to the
adjustment in the event of a stock split, stock dividend or reverse stock
split), the Company shall send a notice (an "Additional Share Notice") to the
Holder setting forth the terms of such proposed issuance. The Holder shall be
entitled to purchase the proposed number of shares of Common Stock or
Convertible Securities, proposed to be issued in proportion to the Holder's
Proportionate Percentage (as hereafter defined) on substantially the same terms
set forth in the Additional Share Notice by (a) notice to the Company (the
"Purchase Notice") within 10 days of the date of the Additional Share Notice and
(b) payment of the price for such shares of Common Stock or Convertible
Securities, by wire transfer of immediately available funds or such other method
of payment as the Company may approve, within 10 days after delivery to the
Company of the Purchase Notice. The "Proportionate Percentage" of the Holder
means the percentage obtained by dividing (a) the aggregate number shares of
Common Stock held by the Holder by (b) the aggregate number of shares of Common
Stock of the Company then issued and outstanding.


	Issuance of Certain Securities. As long as
the Investors collectively hold at least 890,000 shares of Common Stock (subject
to the adjustment in the event of a stock split, stock dividend or reverse stock
split), the Company shall not issue any (a) Convertible Securities or similar
securities that contain a provision that provides for any change or
determination of the applicable conversion price, conversion rate, or exercise
price (or a similar provision which might have a similar effect) based on any
determination of the Market Price or other value of the Company's securities or
any other market based or contingent standard, (b) any preferred stock, debt
instruments or similar securities or investment instruments providing for (i)
preferences or other payments substantially in excess of the original investment
by purchasers thereof or (ii) dividends, interest or similar payments other than
dividends, interest or similar payments computed on an annual basis and not in
excess, directly or indirectly, of a rate equal to twice the interest rate on 10
year US Treasury Notes. 


	Assignment.
 This Agreement shall be binding upon and inure
to the benefit of and be enforceable by the parties hereto and their respective
successors and assigns. In addition, and whether or not any express assignment
shall have been made, the provisions of this Agreement which are for the benefit
of the Investors shall also be for the benefit of and enforceable by any
subsequent holder of any Registrable Securities who has executed a copy of this
Agreement or otherwise indicated its agreement to be bound hereby. Without
limitation on the Investors' rights to transfer Registrable Securities, the
Company acknowledges that any Investor may, at any time, transfer any of the
Registrable Securities which they may own, beneficially or of record, to (a)
their affiliates, or (b) their partner(s), investor(s), security holder(s) or
beneficial holder(s) pursuant to their organization documents or other
agreements, and that, upon the consummation of any such transfer, the provisions
of this Agreement shall be binding upon and inure to the benefit of each
transferee of such Registrable Securities.

	Entire Agreement. This Agreement (including the
exhibits hereto) constitutes and contains the entire agreement and understanding
of the parties with respect to the subject matter hereof, and it also supersedes
any and all prior negotiations, correspondence, agreements or understandings
with respect to the subject matter hereof.


	Miscellaneous.

(a)Amendments. This Agreement may not be amended, modified or
terminated, and no rights or provisions may be waived, except with the written
consent of the Majority Holders and the Company.

(b)Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of California.
Each party hereby irrevocably consents and submits to the jurisdiction of any
California State or United States Federal Court sitting in the State of
California, County of Santa Clara, over any action or proceeding arising out of
or relating to this Agreement and irrevocably consents to the service of any and
all process in any such action or proceeding by registered mail addressed to
such party at its address specified herein (or as otherwise noticed to the other
party). Each party further waives any objection to venue in California and any
objection to an action or proceeding in such state and county on the basis of
forum non conveniens. 

(c)Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective heirs,
personal representatives, successors or assigns. This Agreement shall also be
binding upon and inure to the benefit of any transferee of any of the
Registrable Shares. Notwithstanding anything in this Agreement to the contrary,
if at any time any Investor shall cease to own any Registrable Shares, all of
such Investor's rights under this Agreement shall immediately terminate.

(d)Notices

	Any notices, reports or other correspondence (hereinafter collectively
referred to as "correspondence") required or permitted to be given
hereunder shall be sent by mail, courier (overnight or same day) or fax or
delivered by hand to the party to whom such correspondence is required or
permitted to be given hereunder (except that notices of Suspensions or stop
orders must be made by fax). The date of giving any notice shall be the date of
its actual receipt. 
	All correspondence to the Company shall be addressed as follows:

8X8, Inc.

   2445 Mission College Boulevard

   Santa Clara, California 95054

   Attention: Chief Executive Officer

   Fax number: (408) 980-0432

with a copy to:

Wilson Sonsini Goodrich & Rosati

   650 Page Mill Road

Palo Alto, California 94304

   Attention: John T. Sheridan, Esq.

   Fax number: (650) 493-6811 

	All correspondence to any Investor shall be sent to the most recent address
furnished by the Investor to the Company.
	Any Investor may change the address to which correspondence to it is to be
addressed by notification as provided for herein.

(e)Injunctive Relief. The parties acknowledge and agree that in
the event of any breach of this Agreement, remedies at law may be inadequate,
and each of the parties hereto shall be entitled to seek specific performance of
the obligations of the other parties hereto and such appropriate injunctive
relief as may be granted by a court of competent jurisdiction.

(f)Attorney's Fees. If any action at law or in equity is necessary
to enforce or interpret any of 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.

(g)Severability. If any provision of this Agreement is held by a
court of competent jurisdiction to be unenforceable under applicable law, such
provision shall be replaced with a provision that accomplishes, to the extent
possible, the original business purpose of such provision in a valid and
enforceable manner, and the balance of the Agreement shall be interpreted as if
such provision were so modified and shall be enforceable in accordance with its
terms.

(h)Aggregation of Shares. Registrable Shares 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.

(i)Counterparts. This Agreement may be executed in a number of
counterparts, any of which together shall for all purposes constitute one
Agreement, binding on all the parties hereto notwithstanding that all such
parties have not signed the same counterpart.

 

[Remainder of Page Intentionally Left Blank]


IN WITNESS WHEREOF, the parties hereto have executed this Investor
Rights Agreement as of the date and year first above written.


8X8, Inc.

    By: ____________________________

    Name:

   Title: 

INVESTOR

[                     ]

 

    By: ____________________________

    Name:

   Title: 
































Exhibit A

SCHEDULE OF INVESTORS
















AMENDMENT NO. 1

TO
                  INVESTOR RIGHTS AGREEMENT

 

This AMENDMENT NO. 1 TO INVESTOR RIGHTS AGREEMENT (this
"Amendment") is made as of November 18, 2003 by and among 8x8, Inc., a
Delaware corporation (the "Company") and the investors listed on
Exhibit A hereto. All capitalized terms not otherwise defined herein
shall have the meaning set forth in the Rights Agreement (as defined below).

 

RECITALS

 

WHEREAS, the Company and the investors party thereto (the
"Investors") have entered into an Investor Rights Agreement dated as of
November 12, 2003 (the "Rights Agreement");

WHEREAS, Section 14(a) of the Rights Agreement provides that
the Rights Agreement may be amended by the written consent of the Company and
those Investors holding more than fifty (50%) of the Registrable Shares held by
all of the Investors; and

WHEREAS, the Company and the Investors executing this
Amendment wish to amend the Rights Agreement to reflect the issuance by the
Company of (x) 779,718 additional shares of its common stock and (y) warrants to
purchase up to 779,718 additional shares of its common stock as set forth in
that certain Amendment No. 1 dated November 18, 2003 to the Unit Subscription
Agreement dated November 12, 2003 (as so amended, the "Unit Subscription
Agreement").

NOW, THEREFORE, in consideration of the premises and mutual
covenants contained herein, the parties hereto hereby agree as
follows:



	Definitions. The following terms shall now have the meanings
provided below:

"Excluded Stock" shall mean (i) the Shares, (ii) the
Purchased Warrants, and (iii) any shares of Common Stock issued or issuable by
the Company (a) to employees, directors or consultants pursuant to any equity
compensation plan approved by the Company's Board of Directors, (b) to bona fide
leasing companies, strategic partners, or major lenders, (c) as the purchase
price in a bona fide acquisition or merger (including reasonable fees paid in
connection therewith) or (d) upon conversion or exercise of the Purchase
Warrants.

 

"Original Issue Date" shall mean the date on which any
Shares or Purchase Warrants were first sold and issued.

"Purchased Warrants" shall mean any warrants to
purchase shares of common stock, $0.001 par value per share, of the Company
issued pursuant to the Unit Subscription Agreement.

"Shares" shall mean any shares of common stock, $0.001
par value per share of the Company issued and sold pursuant to the Unit
Subscription Agreement.

	Miscellaneous.




	Governing Law. This Amendment shall be governed by
and construed and enforced in accordance with the laws of the State of
California.


	Counterparts. This Amendment may be executed in a
number of counterparts, any of which together shall for all purposes constitute
one agreement, binding on all the parties hereto notwithstanding that all such
parties have not signed the same counterpart.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 to
Investor Rights Agreement as of the date and year first above written.
8X8, Inc.

    By: ____________________________

    Name:

   Title: 



INVESTOR

[                     ]

 

    By: ____________________________

    Name:

   Title: 


 






























Exhibit A

SCHEDULE OF INVESTORS