Document:

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                                                                   EXHIBIT 10.13

                        MASTER COLLABORATION AGREEMENT

     This Master Collaboration Agreement ("Agreement") is entered into as of
December 20, 1999 ("Effective Date") by and between MATSUSHITA-KOTOBUKI
ELECTRONICS INDUSTRIES, LTD., a corporation organized under the laws of Japan
with its principal place of business at 8-1 Furujin-machi, Takamatsu, Kagawa
prefecture, Japan ("MKE"), and REPLAY NETWORKS, INC., a California corporation
with its principal place of business at 1945 Charleston Road, Mountain View,
California 94043-1201, U.S.A. ("Replay").

     WHEREAS, MKE designs, develops and manufactures, among other things, hard
disk drives and has substantial knowledge and expertise in and owns certain
technology and know-how relating to hard disk drives and other electronics
(including, without limitation, hardware and software);

     WHEREAS, MKE, by itself and in collaboration with others, is designing and
developing various application products using audio visual hard disk drives and
other electronics;

     WHEREAS, Replay is developing and owns certain technology and know-how
relating to the RTVS (as defined below) and the ReplayTV 3000 Product (as
defined below);

     WHEREAS, MKE and Replay desire to develop a new market contemplated by the
integration of Replay's technology relating to the RTVS and ReplayTV Products
and MKE's technology in audio visual hard disk drives and other electronics;

     WHEREAS, MKE has made an equity investment in Replay pursuant to a separate
Stock Purchase Agreement and a separate Investor's Rights Agreement;

     WHEREAS, MKE and Replay have made and entered into an OEM Distribution
Agreement ("OEM Agreement") as of the 30/th/ day of July, 1999, as amended as of
the 20/th/ day of December, 1999, which enables MKE to purchase from Replay the
ReplayTV 3000 Product manufactured by Replay's third party contract manufacturer
and to market, sell and distribute such ReplayTV 3000 Product; and

     WHEREAS, MKE and Replay desire to enter into this Agreement on terms and
conditions set forth below in order to establish the framework for development,
manufacturing, marketing, importation, sales and distribution of the ReplayTV
Products and intellectual property rights pertaining to said ReplayTV Products;

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

1.   DEFINITIONS.

     1.1  "Affiliate" means, with respect to a party hereto, any corporation,
           ---------
partnership, joint venture, subsidiary, division or other business arrangement
which is directly or indirectly controlled by, controlling or under common
control with such party.  Control shall mean any direct or indirect beneficial
ownership of fifty percent (50%) or more of the voting stock or participating
profit interest of such corporation or other business entity.

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS

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     1.2  "Competitive Service" means any service that (a) permits viewing of
           -------------------
content on a television or monitor, (b) contains a dialup or other similar
network connection for the delivery of an electronic programming guide and other
content and/or software to any product enabling the enhancements or
personalization of television viewing, and (c) generates or has as part of its
business plan to generate at least [***] of its annual revenues from one or more
of the following: advertisers, media partners, television networks or production
companies, film studios or any similar content providers.

     1.3  "End User" means any third party which lawfully obtains a Replay TV
           --------
Product solely for its own personal or internal business purposes and not for
further distribution or resale.

     1.4  "End User Restrictions" means the restrictions set forth in Exhibit A.
           ---------------------                                      ---------

     1.5  "Gold Master" means, for each MKE Product version, the master
           -----------
electronic copy of all software applications, content and related material
installed or to be installed on the hard drive or memory device of all MKE
Products shipped by or on behalf of MKE, MEI or any MEI Affiliate.

     1.6  "Intellectual Property" or "Intellectual Property Rights" means any
           ---------------------
and all patents, patent rights, trademarks, service marks, trade names, trade
dresses, copyrights, works of authorship and trade secrets, and all
registrations and applications of all of the foregoing, and any and all other
intellectual property and industrial property rights.

     1.7  "MEI" means Matsushita Electric Industrial Co., Ltd.
           ---

     1.8  "Reference Specification" means those minimum hardware and software
           -----------------------
requirements established by Replay, in its sole discretion, for all  ReplayTV
Products, as may be modified from time to time by Replay pursuant to Section
4.4.

     1.9  "MKE Features" means features designed or developed by or on behalf of
           ------------
Replay for MKE and incorporated into any MKE Products (subject to the
requirements of Section 4.4), and which features the parties agree in writing
advance shall be subject to the exclusivity provisions of Section 6.3(b).

     1.10 "MKE Products" means ReplayTV Products other than Replay TV 3000
           ------------
Product, which are (a) jointly designed and developed by MKE and Replay or (b)
designed or developed by MKE: in either case, (a) or (b), which will be
manufactured by or for MKE hereunder, including, without limitation, the next
generation digital terrestrial ReplayTV Products and those ReplayTV Products
integrating the ReplayTV 3000 Product with certain MKE products.

     1.11 "PCEC" means Panasonic Consumer Electronics Company, a division of
           ----
Matsushita Electric Corporation of America.

     1.12 "Product Specification" means those hardware and software
           ---------------------
specifications established for each MKE Product by MKE.  Each Product
Specification shall incorporate, at a minimum, the Reference Specification, as
such Reference Specification may be modified from time to time by Replay
pursuant to Section 4.4.

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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     1.13 "ReplayTV Products" means any products manufactured by, or on behalf
           -----------------
of, MKE or Replay that use or incorporate Replay Technology or Replay
Intellectual Property, and which are compatible with and fully support the
features of the RTVS and the applicable Product Specification (and are not
compatible with any Competitive Service), as the RTVS may be modified and
enhanced by Replay from time to time.

     1.14 "APIs" mean any application programming interfaces, and associated
           ----
documentation, developed by or for Replay in connection with any Replay
software.

     1.15 "Replay Device Software" means Replay's proprietary and/or licensed
           ----------------------
(a) operating system, streaming technology (excluding that streaming technology
necessary for the development of MPEG encoder/decoders or similar integrated
circuits), file storage and retrieval system, and (b) application software
providing functionality, content and/or used to interface with the Replay Server
Software, including any APIs developed in connection with the foregoing, that is
incorporated into or downloaded onto any ReplayTV Product, including any
improvements or modifications thereto which Replay distributes generally to OEMs
and End Users, over the RTVS or otherwise, during the Term.  Replay Device
Software does not include any Replay Server Software or Replay Driver Software.

     1.16 "Replay Driver Software" means Replay's proprietary hardware device
           ----------------------
driver software used to interface the Replay Device Software with the hardware
components of any ReplayTV Products (including that streaming technology
necessary for the development of MPEG encoder/decoders or similar integrated
circuits), that is incorporated into or downloaded onto any ReplayTV Product,
including any improvements or modifications thereto which Replay distributes
generally to OEMs and End Users, over the RTVS or otherwise, during the Term.
Replay Driver Software does not include any Replay Device Software and Replay
Server Software.

     1.17 "Replay Intellectual Property" means any and all Intellectual Property
           ----------------------------
owned by Replay.

     1.18 "Replay Server Software" means Replay's proprietary server-based
           ----------------------
software and applications designed to provide the RTVS and communicate with
ReplayTV Products.

     1.19 "RTVS" means Replay's proprietary service providing for the
           ----
personalized viewing of content over a television or monitor and contains a
dialup or network connection for the delivery of software upgrades and/or
content updates.  RTVS includes, without limitation, the following
functionality: (a) personalized programming (including time-shifting of
programming, automatic and intelligent program recording, promotion of "off-
hours" programming not otherwise immediately or easily viewed, future locally
modified and enhanced television programming), (b) an interactive on-screen
programming guide, (c) locally-inserted advertising, (d) e-commerce
capabilities, (e) pay-per-view services, and (f) premium virtual channels.

     1.20 "Replay Technology" means all Technology owned by Replay, including
           -----------------
without limitation the Replay Server Software, Replay Device Software, and
Replay Driver Software.

     1.21 "ReplayTV 3000 Product" means Replay's proprietary ReplayTV 3000
           ---------------------
product as it exists on the Effective Date.

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     1.22 "Technology" means computer software, algorithms, designs, ideas,
           ----------
know-how, processes, formulas, specifications, compositions, data, technical
drawings, schematics, flowcharts, techniques, improvements and inventions
(whether patentable or not), which are confidential or proprietary to a party.

     1.23 "Term" means the Initial Term and any renewals or extensions to the
           -----
Initial Term pursuant to Section 13.2.

     1.24 "Territory" means the United States, and will, automatically and
           ---------
without further action by the parties, expand to include territories and
possessions of the United States and additional countries upon Replay's
commercial introduction and launch of the RTVS in such territories and
possessions of the United States or countries during the Term.

2.   PRODUCT DEVELOPMENT

     2.1  Phase One - ReplayTV 3000 Products.
          ----------------------------------

          (a) During Phase One, MKE shall, pursuant to the terms and conditions
of the OEM Agreement, (i) purchase from Replay, on a private label basis,
ReplayTV 3000 Products manufactured by Replay's third party contract
manufacturer(s), and (ii) market, sell and distribute such private labeled
ReplayTV 3000 Products in the Territory under the Panasonic(R) brand name. As of
the Effective Date, the parties estimate that MKE's commercial launch of such
ReplayTV 3000 Products under the Panasonic(R) brand name will be [***] 2000,
provided that Replay delivers to MKE by such date ReplayTV 3000 Products that
comply with the Matsushita Industrial Standards and all reasonable requirements
of MKE and Replay, including, without limitation, the Reference Specification
and requirements relating to quality and copyright protection.

          (b) MKE may, at its sole option, cost and expense, design or have
designed (by a third party or by Replay) (a) a custom remote control, front
bezel and printed materials for the ReplayTV 3000 Products, and (b) subject to
Replay's prior approval, other customized specifications for such ReplayTV 3000
Products. Replay and MKE agree to cooperate with each other on the design of
such customized specifications in order to meet and comply with the Matsushita
Industrial Standards and the Reference Specification. Replay and MKE agree that
subject to Replay's Intellectual Property Rights in the ReplayTV 3000 Products,
the custom remote control, front bezel and printed materials designed by or for
MKE, and all Intellectual Property Rights therein, shall be owned solely by MKE
and, except as otherwise agreed in writing, all other customized specifications
developed pursuant to this Section 2.1(b), and all Intellectual Property Rights
therein, shall be owned solely by Replay. Notwithstanding anything else in this
Section 2.1(b), Replay shall be free to independently develop features or
specifications for the ReplayTV 3000 Products, or any other ReplayTV Products,
that are similar in design, appearance or functionality to such MKE customized
specifications. In the event MKE designs or has designed such customized
specifications, Replay agrees to use commercially reasonable efforts to cause
its third party contract manufacturer(s) of ReplayTV 3000 Products, as promptly
as reasonably practical in light of such customized specifications, to commence
manufacture of ReplayTV 3000 Products for MKE in accordance with such customized
specifications.

     2.2  Phase Two - MKE Products.
          -------------------------

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          (a) At such time that Phase One has progressed to the mutual
satisfaction of MKE and Replay, the parties agree to jointly develop the first
MKE Product.  In such case, Replay will be primarily responsible for the further
development of the RTVS and MKE will be primarily responsible for the further
development of the hardware comprising MKE Products.

          (b) In addition to subsection (a) above, MKE may, at its sole
discretion, and at its sole cost, design and develop MKE Products independent of
Replay.  In such case, MKE shall establish a Product Specification for each
such MKE Product, and MKE shall at all times comply with the requirements of
Section 4.4 in connection with design, development and manufacture of such MKE
Products.  Replay shall maintain and support the features of RTVS to any and
all such MKE Products that MKE manufactures, and markets, sells or distributes
in the Territory.

3.   LICENSE GRANTS

     3.1  Software License
          ----------------

          3.1.1 Replay Driver Software

             (a) Subject to the terms and conditions of this Agreement,
Replay grants a [***] license to MKE (with the right to sublicense to MEI or any
MEI Affiliate), subject at all times to the requirements of Section 4.4: (i) to
use, copy (and have copied), modify, improve and create derivative works of the
Replay Driver Software (in both source code and object code form) solely in
connection with the development of MKE Products, (ii) to incorporate (and have
incorporated) the Replay Driver Software and any such modifications,
improvements or derivative works solely into MKE Products in object code form;
(iii) to manufacture, have manufactured, market, distribute, import and sell the
MKE Products incorporating the Replay Driver Software in the Territory by itself
or through MEI or any MEI Affiliate; and (iv) to sublicense to End User the
right to use the Replay Driver Software in the Territory, subject to Sections
3.1.3 and 3.1.4.

             (b) Replay shall promptly deliver to MKE all source code and object
code for the Replay Driver Software, including any updates and upgrades thereof,
and all related documentation, developed by Replay as of the Effective Date and
during the Term. MKE hereby grants Replay a worldwide, nonexclusive,
nontransferable and royalty-free license (including the right to sublicense to
other OEMs as part of the Reference Specification, subject to Section 4.4(a)) to
any modifications or improvements to the Replay Driver Software. MKE shall
promptly deliver to Replay the reasonably documented (in English) source code to
all such modifications or improvements at the time such modifications or
improvements are provided to Replay for testing pursuant to Section 4.4.

          3.3.3 Replay Device Software

             (a) Subject to the terms and conditions of this Agreement, Replay
grants a [***] license solely to MKE (with the right to sublicense to MEI or any
MEI Affiliate), subject at all times to the requirements of Section 4.4, to: (i)
use and copy (and have copied) the Replay Device Software (in object code form
only) solely for the purpose of incorporating the Replay Device Software into
MKE Products, (ii) incorporate (and have incorporated) the Replay Device
Software into

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MKE Products in object code form, (iii) manufacture, have manufactured, market,
distribute, import and sell MKE Products incorporating the Replay Device
Software in the Territory by itself or through MEI or any MEI Affiliate, and
(iv) sublicense to End Users the rights to use the Replay Device Software in the
Territory subject to Sections 3.1.3 and 3.1.4.

          (b) Subject to the terms and conditions of this Agreement, Replay
grants a [***] license solely to MKE to use, copy, modify, improve and create
derivative works of the Replay Device Software provided to MKE in source code
form, solely in connection with MKE's internal, noncommercial, development of
prototypes for MKE Products.  The source code license provided in this Section
3.1.2(b) shall not include any third party software incorporated in any Replay
Device Software or otherwise licensed to Replay.  MKE shall take all reasonable
steps necessary to prevent unauthorized disclosure of, or access to, all source
code provided by Replay pursuant to this Agreement.

          (c) Replay shall promptly deliver to MKE source code for Replay Device
Software, including any updates and upgrades thereof, and all related
documentation, developed by Replay as of the Effective Date and for a period of
[***] thereafter (or such longer period as Replay may require to complete
development and documentation of planned APIs for such Replay Device Software).
Additionally, MKE may request Replay to modify or improve the Replay Device
Software, and subject to the parties' mutual written agreement upon
specifications and requirements for such modifications or improvements, Replay
shall provide such modifications or improvements to MKE subject at all times to
this Section 3.1.2.

          3.1.3 Restrictions

          MKE agrees that it will not attempt to (i) reverse assemble, reverse
engineer, decompile or otherwise attempt to derive source code (except as
otherwise provided in Section 3.1.1 and 3.1.2) from the Replay Device Software
or Replay Server Software, (ii) remove or unbundle the Replay Device Software
from any ReplayTV Product, or (iii) facilitate or encourage any third party
(including any End User) to do any of the foregoing. MKE further agrees that it
will not (iv) provide any functionality or software applications on any ReplayTV
Products that are directly competitive with any functionality or software
provided (or planned in good faith to be provided during the subsequent [***]
period, and such plans disclosed to MKE) by or through the RTVS or the Replay
Device Software, or (v) interfere with, or provide any hardware, software, or
other features that interferes with, the communication of the ReplayTV Products
with RTVS.

          3.1.4 End User Licensing

          MKE shall include an end user license agreement mutually agreed upon
by the parties in or with ReplayTV Products which contains, at a minimum, the
End User Restrictions ("End User License Agreement"), and require End User's
acknowledgement that any such ReplayTV Products distributed by MEI or any MEI
Affiliate or OEMs be subject to such End User License Agreement.  MKE
acknowledges and agrees that, upon prior written notice to MKE, Replay may amend
the End User Restrictions from time to time in order to address issues arising
in particular geographic regions as the Territory is expanded, to address
changes in the law relating to such restrictions, and to achieve other good
faith business interests of Replay.  Each End User sublicense shall be granted
in an End User License

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Agreement which shall include, at minimum, the End User Restrictions, and which
also expressly provides that (i) the End User's sublicense to use the Replay
Device Software is solely for such End User's personal or internal business
purposes; (ii) Replay may terminate such End User License Agreement upon written
notice of failure by such End User to comply with the terms of such End User
License Agreement, and (iii) Replay shall be a third party beneficiary of the
End User License Agreement, and the provisions of such End User License
Agreement shall be enforceable by Replay and/or MKE.

     3.2  Replay Intellectual Property (other than Software) License
          ----------------------------------------------------------

          Subject to the terms and conditions of this Agreement, and during the
Term and thereafter, Replay grants to MKE and its Affiliates a [***] license
under all of Replay Intellectual Property Rights relating to the ReplayTV 3000
Product (excluding any Replay software contained therein, which shall be
licensed solely as set forth in Section 3.1) to (i) design, develop, use,
manufacture and have manufactured worldwide MKE Products, and (ii) market,
import, sell and distribute in the Territory MKE Products. MKE may sublicense
such rights to MEI or any MEI Affiliate and may market, import, sell and
distribute MKE Products through MEI or any MEI Affiliate.

     3.3  Sublicenses to MEI and MEI Affiliates
          -------------------------------------

          All permitted sublicenses granted by MKE to MEI and MEI Affiliates
pursuant to this Section 3 and as otherwise provided in this Agreement are
conditioned upon MEI's and such MEI Affiliates' express acknowledgement of, and
agreement to abide by, the restrictions imposed on MKE pursuant to this Section
3 and Section 4.4.

4.   MANUFACTURING.

     4.1  General.
          -------

          (a) During Phase One, ReplayTV 3000 Products purchased by MKE from
Replay shall be manufactured by Replay's third party contract manufacturer in
accordance with the OEM Agreement.

          (b) MKE will reasonably assist Replay in obtaining low pricing for
components used in the manufacture of ReplayTV 3000 Products. Provided that such
assistance shall not require MKE's participation in any negotiations with third
parties.

          (c) Replay agrees to indemnify and hold harmless MKE, MEI and MEI
Affiliates and their respective contract manufacturers from any and all
liabilities, damages, settlements, costs and expenses (including reasonable
attorney's fees) that may arise as a result of any claim of trade secret
misappropriation by any of Replay's third party contract manufacturers of
ReplayTV 3000 Products in connection with the design, development, manufacture,
marketing, importation, sale or distribution of MKE Products as permitted under
this Agreement.

     4.2  Manufacture by MKE.
          ------------------

          (a) General. Subject to the terms and conditions of this Agreement,
              -------
MKE shall have the [***] license to manufacture and have

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manufactured the MKE Products (i) under the Panasonic(R) brand name, (ii) if
requested by Replay, under the Replay brand name, and (iii) under any private
label brand name.

          (b) Under Replay Brand. If Replay orders any MKE Products from MKE and
              ------------------
MKE accepts such order (provided that MKE shall not unreasonably reject Replay's
order), MKE will manufacture such MKE Products for Replay at prices that are
competitive to those offered to PCEC or any other third party (other than
another MKE Affiliate) under substantially similar terms and conditions,
including, without limitation, volume of purchase, specifications, types of
distribution channels used and payment terms.  Such orders for MKE  Products by
Replay shall be subject to the economic terms of Section 10 below.

          (c) Under Private Label.
              -------------------

                 (i)   Subject to the terms and conditions of this Agreement,
including the license grants in Section 3 above, MKE shall have, solely during
the Initial Term, [***] right and license to sell, within the Territory, private
label MKE Products manufactured by or for MKE to and on behalf of OEMs,
including, without limitation, distributors, mass merchants, consumer
electronics companies, computer companies or any other types of companies or
businesses. Nothing in this Section 4.2(c) shall limit or restrict Replay's
rights to sell, manufacture or have manufactured products under private label
for any third party or OEM.

                 (ii)  MKE is solely responsible for negotiating the terms of
the agreement with any such OEM, including, without limitation, product pricing,
revenue sharing and the procurement process; provided, however, that any such
                                             --------  -------
agreement shall contain provisions that shall protect and preserve Replay's
Intellectual Property Rights to at least the same levels as protected by this
Agreement (including without limitation Sections 3.1.3 and  3.1.4 hereof), and
the provisions of Section 7.2 and Replay shall be a third party beneficiary to
any such agreement in connection with the foregoing.

                 (iii) MKE shall comply with Replay's requirements as set forth
in Section 9.3 below regarding MKE's use of the Replay logo, and shall impose
such limitations on any OEM hereunder.

                 (iv)  Replay agrees to extend the Subsidy payable to MKE as set
forth in Section 10 below to include all private label MKE Products manufactured
by or for MKE and sold by OEMs pursuant to this Section 4.2(c); provided,
                                                                --------
however, that (a) any such Subsidy shall be paid solely to MKE and not directly
-------
to any OEMs, and (b) MKE will not, without Replay's prior written approval,
enter into any private label agreement with any third party that has an existing
OEM or similar agreement with Replay. Replay will not, without MKE's prior
written approval, enter into any OEM or similar agreement with any third party
that has an existing private label agreement with MKE.

                 (v)   If any third party that has previously entered into an
OEM or similar agreement with Replay requests that MKE perform contract
manufacturing of ReplayTV Products on its behalf, both Replay and MKE agree to
negotiate with such OEM to establish the necessary terms and conditions of such
agreement among the parties. MKE will not, without Replay's prior written
approval, enter into any contract manufacturing arrangement with such third
party.

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                 (vi)  Product modifications to MKE Products that are requested
by such OEMs and that relate to the RTVS, Replay Driver Software or Replay
Device Software shall be forwarded to Replay by MKE.

     4.3  Most Favored Agreement.
          ----------------------

          In the event that Replay enters into an agreement during the term of
this Agreement with any third party in which, taken together, the (a) scope of
license rights to Replay Technology and Replay Intellectual Property Rights and
(b) Subsidy amount and/or RTVS Profit Share, are more favorable than the
comparable license rights, Subsidy and/or RTVS Profit Share offered to MKE under
this Agreement for substantially similar products sold during similar time
periods under substantially similar terms and conditions, including, without
limitation, volume of purchase, specifications and functionality, types of
distribution channels used and payment terms, considered in the aggregate ("More
Favorable Agreement"), Replay will notify MKE of the above terms of such More
Favorable Agreement in writing no later than thirty (30) days after such More
Favorable Agreement is granted to such third party. If MKE notifies Replay in
writing within thirty (30) days thereafter, the parties agree to amend this
Agreement by replacing the existing license rights to Replay Technology and
Replay Intellectual Property, and applicable Subsidy and/or RTVS Profit Share
provisions, taken together, with the corresponding provisions in the More
Favorable Agreement. The above amendment to the Agreement shall become effective
as of the effective date of the More Favorable Agreement. MKE shall be entitled
to have a third party auditor reasonable acceptable to Replay, upon reasonable
prior notice and not more than twice per calendar year, to review Replay's
agreements with third party OEMs for the purpose of verifying compliance with
this Section 4.3.

     4.4  Specifications; Gold Master; Testing.
          ------------------------------------

          (a) Specifications.  All MKE Products shall comply fully with the
              --------------
Reference Specification and applicable Product Specification.  Replay may, from
time to time and upon [***] days' written notice to MKE, revise the Reference
Specification for MKE Products. If such revisions relate to software, within
[***] days after such revised Reference Specification is provided to MKE (or
such other time period as may be mutually agreed by the parties), all MKE
Products manufactured by or on behalf of MKE shall conform to such revised
Reference Specification. If such revisions relate to hardware, within [***] days
after such revised Reference Specification is provided to MKE (or such other
time period as may be mutually agreed by the parties), all MKE Products
manufactured by or on behalf of MKE shall conform to such revised Reference
Specification. If the Reference Specification embodies any MKE Intellectual
Property Rights, Replay and MKE shall negotiate in good faith to determine a
reasonable one-time license fee to be charged to other OEMs manufacturing
products conforming thereto. In the event the Reference Specification embodies
any other OEM or third party Intellectual Property Rights, MKE shall pay a
reasonable one-time license fee to manufacture MKE Products conforming thereto.

          (b) Gold Master.  All MKE Products shall contain a hard disk or memory
              -----------
device installed with the contents of the then-current version of the Gold
Master supplied to MKE by Replay. Replay shall determine the pre-configured hard
drive content of such Gold Master, including, without limitation, initial Replay
channels, zones and promotions.  In addition, Replay shall determine and may
periodically change (subject to the reasonable

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approval of MKE) the amount of hard disk drive space to be reserved for future
RTVS programming ("Reserved Capacity") and provide such information to MKE
promptly in writing. MKE shall not promote such Reserved Capacity as hard disk
drive space available to End Users of MKE Products. Replay may, from time to
time modify the Gold Master and provide a new version thereof to MKE. Within
[***] days after receipt of such Gold Master, MKE shall ensure that all MKE
Products manufactured thereafter have hard disks or memory devices loaded with
the new Gold Master Version. MKE shall not modify, add or remove any software,
content or other material to or from any Gold Master.

          (c) Testing and Quality Assurance.  MKE shall notify Replay in writing
              -----------------------------
at least [***] days in advance of providing Replay with any new MKE Product that
MKE desires be tested for commercial release, and [***] days or such lesser
agreed upon time period for any modifications or improvements to any existing
MKE Product to be so tested. MKE shall provide Replay an agreed upon number of
units of such MKE Product necessary for Replay's testing and quality assurance,
including full compliance and operation with the Replay Device Software, Replay
Server Software and the RTVS. Replay shall conduct such testing within [***]
days after receipt of such units, and shall notify MKE in writing of the results
of such tests. In the event that any unit fails such Replay testing and quality
assurance, the parties will meet to coordinate a review and analysis of the
problems discovered by Replay. MKE shall not ship any new MKE Product until
Replay determines that such product meets such testing and quality assurance.

          (d) Proposed Software Modifications.  MKE may propose modifications or
              -------------------------------
improvement to the Gold Master, the Replay Driver Software and the Replay Device
Software.  After suitable testing and quality assurance, Replay may incorporate
such modifications or improvements into the Gold Master, the Replay Driver
Software or Replay Device Software, as appropriate, provided that such testing
and incorporation of any modification or improvement (other than to the Replay
Device Software, changes to which shall be at Replay's sole discretion) shall
not be unreasonably withheld by Replay.  MKE shall not ship any MKE Product with
such modifications or improvements except as permitted pursuant to this Section
4.4.

          (e) Restrictions.  MKE, acknowledges and agrees that Replay is the
              ------------
sole entity entitled to transmit or have downloaded (over any network or other
dialup connection) any software, content or other material, or any improvement
or modification thereto, to the Gold Master or any hard disk or memory device
contained in any MKE Product.  MKE shall not, directly or through any third
party, MEI or MEI Affiliate, transmit or have downloaded  any such software,
content or other material, or any improvement or modification thereto, without
Replay's express prior written permission. This does not affect any other rights
of MKE, MEI and MEI Affiliate to install any software, content or other
materials into MKE Products using Gold Master as permitted pursuant to this
Agreement.

     4.5  API Development.
          ---------------

          Replay will use its best efforts to develop and document mutually
agreed upon Replay Device Software APIs reasonably necessary for the development
of MKE Products that combine Replay Technology with other features and
functionality developed or provided by MKE.  In the event that MKE experiences
significant difficulty in utilizing such APIs in connection with the development
of such products, Replay will, at MKE's request, consider in good faith
providing source code updates and modifications for the applicable portions of

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the Replay Device Software on a case-by-case basis.  Any provision by Replay of
such Replay Device Software source code updates and modifications shall be
subject to the provisions of Section 3 hereof.

5.   CUSTOMER SERVICE.

MKE and Replay shall work together in good faith to develop and establish
mutually acceptable customer service and support standards and processes for the
ReplayTV Products.  The parties shall agree upon further details regarding this
Section 5; provided, however, that MKE will at all times be responsible for
           --------  -------
providing all first level support to End Users of MKE and OEMs regarding MKE
Products and ReplayTV 3000 Products and Replay will be responsible solely for
providing second level support to MKE.  First level support will be provided by
MKE, and if MKE finds that such support relates to the RTVS and should be
provided by Replay, MKE will promptly notify Replay of such support request from
End User. In such event, Replay shall be responsible for providing all first
level support to such End Users.  "First level support" means telephone support,
online support and/or any required End User site visits. "Second level support"
means software bug fixes and any support requested by MKE technical personnel
providing such first level support.

6.   ADDITIONAL OBLIGATIONS OF REPLAY.

     6.1  RTVS Programming.  Replay shall maintain and support, and continue
          ----------------
development and expand the availability of, the RTVS for use in connection with
ReplayTV Products.

     6.2  Replay agrees that, at MKE's request, it shall reasonably negotiate
with MKE in good faith with respect to granting MKE a license to Replay
Technology (including, without limitation, Replay Device Software and Replay
Driver Software) and Replay Intellectual Property Rights for use in geographic
regions where the RTVS is not available.

     6.3  Favorable Terms for MKE.  Replay agrees to provide certain favorable
          -----------------------
terms to MKE, including, without limitation, the following:

          (a) Replay agrees to provide MKE with a road map of the RTVS,
products, software and other related information in the earliest possible
timeframe.

          (b) Replay agrees that MKE shall have exclusivity of any and all MKE
Features for a minimum period of [***] after the commercial launch of the first
commercially released MKE Product; and

          (c) Replay agrees to reasonably provide support to MKE for original or
exclusive features designed or developed by or for MKE and incorporated into any
ReplayTV Products; provided, however, that (i) nothing in this Section 6.3(c)
                   --------  -------
shall obligate Replay to devote engineering efforts to such support except to
the extent Replay agrees in writing in advance; and (ii) to the extent such
features require additional hardware, additional bandwidth, or third party
licenses or software, MKE shall reimburse Replay for  reasonable expenses
incurred in connection with developing and/or procuring the same, provided that
Replay first obtains MKE's prior written approval of such expenses.  The period
of Replay's obligation to support such features shall be negotiated by the
parties in good faith and mutually agreed upon on a case-by-case basis.

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                                      -11-
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7.   ADDITIONAL RESTRICTIONS.

     7.1  Except as expressly provided in Section 7.2 below, nothing in this
Agreement or otherwise shall be deemed or construed to prohibit or restrict MKE,
MEI or any MEI Affiliates from designing, developing, using, manufacturing,
having manufactured, marketing, importing, selling or distributing any products
that are or may be competitive with any ReplayTV Products; provided, however,
                                                           --------  -------
that (a) such products do not incorporate any Replay Technology or Replay
Intellectual Property, and that no access to, or use of, any Replay Confidential
Information relating to such Replay Technology or Replay Intellectual Property
is made in connection with the design or development of such products, and (b)
no person who has or has had access to any Replay software source code
(excluding Replay Driver Software source code) is involved in the design or
development of such products during the Term of this Agreement and for a period
of [***] thereafter.

     7.2  During the Term of this Agreement, MKE shall not enter into any
agreement with any third party to design, develop, market or distribute any
products that support, or are compatible with, (i) a Competitive Service, or
(ii) [***]. The determination of whether a service is a Competitive Service
shall be made as of the effective date of any agreement between MKE or MKE
Affiliate and such service provider. Notwithstanding the foregoing, nothing in
this Section 7.2 shall preclude MKE from providing components or contract
manufacturing for products that support or are compatible with the [***];
provided, however, that no MKE employee who has or has had access to Replay
--------  -------
Technology (including Replay software source code), or is or has been involved
in the design or development of ReplayTV Products will be involved in the
provision of components or contract manufacturing for products that support or
are compatible the [***] or a Competitive Service.

     7.3  Nothing in this Agreement or otherwise shall be deemed or construed to
prohibit or restrict MKE, MEI or MEI Affiliates from designing, developing,
making, using, manufacturing, having manufactured, marketing, importing, selling
or distributing any components that were designed, developed, derived, used or
manufactured in the course of the development of any ReplayTV Products, except
to the extent that (a) any such components embody any Replay Technology or
Replay Intellectual Property, or (b) any person who has or has had access to any
Replay software source code (excluding Replay Driver Software source code) is
involved in the design or development of such components.

8.   OWNERSHIP OF INTELLECTUAL PROPERTY RIGHTS.  As between the parties:

     8.1  Except as provided in Section 8.5 below, any and all inventions
independently discovered, conceived, or reduced to practice by a party in the
course of development of any ReplayTV Products and any and all Intellectual
Property Rights in and to such inventions shall be owned solely by the party who
independently discovered, conceived, or reduced to practice such invention.

     8.2  Except as provided in Section 8.5 below, any and all inventions
jointly discovered, conceived, or reduced to practice by both parties in the
course of development of any ReplayTV Products and any and all Intellectual
Property Rights in and to such inventions shall be owned jointly by both
parties; provided, however, that each party contributed
         --------  -------

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                                      -12-
<PAGE>

engineering resources to such joint inventions. Each party shall have the right
to use or non-exclusively license such jointly owned inventions and any
Intellectual Property Rights thereto without a duty to report or account to the
other party.

     8.3  Except as provided in Section 8.5 below, any and all copyrightable
works (including, without limitation, all computer software) independently
created by a party in the course of development of any ReplayTV Products and any
and all Intellectual Property Rights in and to such copyrightable works shall be
owned solely by the party who independently created such copyrightable work.

     8.4  Except as provided in Section 8.5 below, any and all copyrightable
works jointly created by both parties in the course of development of any
ReplayTV Products and any and all Intellectual Property Rights in and to such
copyrightable works shall be owned jointly by both parties. Each party shall
have the right to use or non-exclusively license such jointly-owned
copyrightable works and any Intellectual Property Rights thereto without a duty
to report or account to the other party.

     8.5  Notwithstanding anything else in this Section 8 or otherwise in this
Agreement, all Intellectual Property Rights in and to the RTVS, Replay Server
Software and Replay Device Software, and any modifications or improvements
thereto, whether made by Replay or MKE or jointly by Replay and MKE, shall be
owned solely by Replay.

     8.6  Subject to Replay's ownership of Replay Technology and Replay
Intellectual Property Rights, including without limitation its ownership rights
pursuant to Section 8.5, and notwithstanding anything else in this Agreement,
all MKE Products and all Intellectual Property Rights in and to MKE  Products
shall be owned solely by MKE.

     8.7  Replay acknowledges and agrees that MKE may assign to MEI its
ownership interest in any inventions jointly owned by MKE and Replay hereunder
and the right to apply for, prosecute and maintain any patents therefor.  Replay
agrees to reasonably cooperate with MEI and to provide MEI with necessary
assistance, at MEI's sole expense, in connection with the preparation and
prosecution of such patent applications.  MKE agrees to reasonably cooperate
with Replay and to provide Replay with necessary assistance, at Replay's sole
expense, in connection with the preparation and prosecution of any Replay patent
applications.

     8.8  MKE shall own any and all intellectual property rights  in all
modifications or improvements made by MKE to the Replay Driver Software.  If
such MKE Intellectual Property Rights are incorporated into the Reference
Specification, then MKE hereby grants Replay a license with sublicense rights in
accordance with Section 4.4(a).  For the avoidance of doubt, the foregoing
ownership rights are expressly limited to those modifications or improvements to
the Replay Driver Software made by MKE, and expressly excludes any ownership of
the Replay Driver Software.  In no event shall MKE use or incorporate any Replay
Driver Software modified by MKE in products other than ReplayTV Products.
Nothing in this Section 8.8 shall preclude Replay or any Replay OEM from
independently developing modifications or improvements to the Replay Driver
Software that are substantially similar to those developed by MKE.

9.   MARKETING.

                                      -13-
<PAGE>

     9.1  Sales; Brand.  Subject to the license grants in Section 3, MKE shall
          ------------
have the right to market, import, sell and distribute ReplayTV Products itself
or through MEI or any MEI Affiliates to customers (including, without
limitation, OEMs, resellers and end users) using its normal channels of
distribution.  Subject to Sections 9.2 and 9.3 below, such ReplayTV Products
shall be marketed, sold and distributed under the Panasonic(R) brand name.

     9.2  OEM Sales.  Subject to the license grants in Section 3, MKE, MEI and
          ---------
MEI Affiliates shall have the right to market, import, sell and distribute
within the Territory to OEMs any private labeled MKE Products manufactured by or
for MKE.

     9.3  Replay Logo and Trademark License.  For all ReplayTV Products
          ---------------------------------
marketed, imported, sold or distributed by MKE, MEI or MEI Affiliates, MKE shall
affix or cause to be affixed the Replay logo (in such format as Replay provides
to MKE) on such ReplayTV Products and on related user interface, packaging and
advertising materials in accordance with MEI's and Replay's rules and standards
and in a manner mutually acceptable to both parties.  Replay hereby grants to
MKE a [***] license to use (with a right to sublicense to third parties,
including, without limitation, MEI, MEI Affiliates and third party contract
manufacturers ("Sublicensees")), the Replay logo and related Replay trademarks
(collectively, "Marks") in connection with the ReplayTV Products, including,
without limitation, packaging and user interface and any other materials in
connection with the manufacture, marketing, importation, sale and distribution
of ReplayTV Products. MKE agrees, and shall cause its Sublicensees to agree,
that (a) all advertisements, promotional materials, packaging and user interface
and any other materials bearing the Marks shall identify Replay as the owner of
the Marks, (b) all use of the Marks by MKE or its Sublicensees shall inure to
the benefit of Replay, and (c) all use of the Marks by MKE or its Sublicensees
are subject to Replay's reasonable quality control requirements (which
requirements Replay shall promptly provide to MKE). MKE shall, and shall cause
its Sublicensees to, upon Replay's reasonable prior written request, provide
Replay with samples of use of the Marks by MKE or its Sublicensees in connection
with ReplayTV Products for the sole purpose of allowing Replay to verify quality
control compliance in accordance with Replay's quality control requirements that
Replay has provided to MKE as set forth above.

     9.4  Promotion and Advertising.
          -------------------------

          (a)  MKE and Replay shall reasonably cooperate in good faith to
jointly market and promote the RTVS and MKE Products. The parties understand and
agree that MKE shall be primarily responsible for promoting MKE Products, and
Replay shall be primarily responsible for promoting RTVS, and each party shall
respect the role and responsibility of the other party.

          (b)  MKE, through MEI Affiliates, will commit a minimum of [***] to
promote and advertise the ReplayTV Products sold or to be sold under the
Panasonic(R) brand before the first shipment or during the first [***] following
the first shipment of a ReplayTV Product to MKE under the OEM Agreement.

          (c)  MKE and Replay shall discuss in good faith and mutually agree
upon further details regarding this Section 9.4.

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                                      -14-
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10.  ECONOMIC TERMS.

     10.1 Subsidy.  MKE shall be entitled to a mutually agreed upon product
          -------
subsidy ("Subsidy") paid by Replay in connection with those MKE Products that
are shipped by or on MKE's behalf during the Term of this Agreement. The intent
of both parties when negotiating the Subsidy during the Initial Term is that
[***]. Such intention is subject to MKE's obligation to manufacture and operate
efficiently, and MKE's Affiliates' efficient and effective distribution,
marketing and sales of such MKE Products.

     10.2 Subsidy Negotiation.  Replay and MKE shall meet [***] to
          -------------------
negotiate in good faith a mutually agreed upon Subsidy to be paid to MKE for
each MKE Product model sold during a subsequent [***] period, up to an agreed
upon [***], and a [***]. The parties will meet approximately [***] in advance of
the beginning of such period for such negotiations. The parties shall determine
the amount of the Subsidy by considering, at a minimum, for such MKE Product
model: (a) [***], (b) [***], and (c) [***]. In the event that [***], the parties
agree to have further discussions regarding the Subsidy.

     10.3 Payment Terms.  All payments for MKE Products made by Replay to MKE
          -------------
during the Initial Term shall be made by irrevocable Letter of Credit ("LC") at
[***] prior to the shipment date (payment terms FOB Japan) of each Purchase
Order issued hereunder. After the Initial Term, Replay shall make reasonably
commercial efforts to reduce the payment terms from [***]. Payment for MKE
Products to be purchased by MKE or an Affiliate and paid to Replay shall be due
the [***] following the [***] that Replay's invoice has issued and delivered to
MKE or an Affiliate. All payments hereunder shall be made in U.S. dollars.

     10.4 Revenue Share.  MKE shall be entitled to a mutually agreed upon
          -------------
[***] received by Replay solely in connection with those MKE Products that are
shipped by or on MKE's behalf after the Initial Term [***]. The amount, duration
and other terms of such [***] and an appropriate Subsidy shall be mutually
agreed upon by the parties. MKE agrees to waive any [***] in connection with any
MKE Products shipped during the Initial Term.

11.  BOOKS AND RECORDS; AUDITS.  Each party shall keep complete and accurate
books and records relating to the manufacture, distribution and sale of ReplayTV
Products and the calculation of the applicable Subsidy and/or [***] for MKE
Products for the duration of Term plus one (1) year ("Audit Period"). During the
Audit Period, a party ("Auditing Party") shall have the right, upon prior
written notice and no more than once a year, to inspect the books and records of
the other party ("Audited Party") relating solely to the manufacture,
distribution and sale of ReplayTV Products and the applicable Subsidy

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                                      -15-
<PAGE>

and/or [***] under Section 10 during the Audited Party's normal business hours,
using an independent certified public accountant retained by the Auditing Party
and reasonably acceptable to the Audited Party, for the purpose of verifying any
reports, information or payments provided or due hereunder and verifying
compliance with the material terms and conditions of this Agreement. Such
independent certified public accountant shall be bound to hold all information
in confidence except as necessary to communicate to the Auditing Party the
Audited Party's underpayment of payments, inaccurate reports or information
and/or noncompliance with any material terms or conditions of this Agreement.
The fees and expenses of such inspection/audit shall be paid by the Auditing
Party; however, if an underpayment of more than five percent (5%) of the total
payments due to the Auditing Party hereunder for any calendar year is
discovered, then such fees and expenses shall be paid by the Audited Party, and
the Audited Party shall promptly pay to the Auditing Party all such delinquent
payment amounts with interest thereon at the prime rate reported by the Bank of
America, San Francisco, California, plus one percent (1%), computed from the
date such payments were due until the date the Audited Party actually pays the
Auditing Party such payments.

12.  CONFIDENTIALITY.

     12.1 Each party agrees that confidential information it obtains from the
other party under this Agreement, including, without limitation, Technology,
trade secrets, patent applications, and business, technical and financial
information ("Confidential Information") is Confidential Information of the
disclosing party ("Discloser").  Without limiting the foregoing, the parties
agree that (a) information obtained by Replay via the RTVS that is specific MKE
or PCEC's sales or business activity (excluding any information specific to
purchasers of ReplayTV Products) is MKE Confidential Information, and (b) all
Replay software (source code and object code) and information relating to RTVS
net revenues is Replay Confidential Information.  The receiving party
("Recipient") agrees to (i) keep the Discloser's Confidential Information
confidential, (ii) use the Discloser's Confidential Information only for the
purposes of fulfilling its obligations under this Agreement, (iii) use at least
the same degree of care in keeping the Discloser's Confidential Information
confidential as its uses for its own confidential information of a similar
nature, and (iv) limit access to the Discloser's Confidential Information to its
officers, directors, agents, professional advisors, contractors, subcontractors
and employees and to the officers, directors, agents, professional advisors,
contractors, subcontractors and employees of its Affiliates who have a need to
know for the purposes of this Agreement.

     12.2 Confidential Information in tangible form is now and shall at all
times be conspicuously labeled by the Discloser as "Confidential" or similar
designation.  If the Confidential Information is disclosed orally, it must be
specifically designated by the Discloser as Confidential Information at the time
of disclosure and confirmed in writing by the Discloser to be Confidential
Information.  Such written confirmation shall be provided to the Recipient
within twenty (20) business days following such oral disclosure.

     12.3 The obligations under this Section 12 shall not extend to any
information that the Recipient can document:

          (a)  was in the public domain at the time it was disclosed or becomes
part of the public domain after disclosure through no fault of the Recipient or
its employees or agents;

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                                      -16-
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          (b)  was known to the Recipient at the time of its disclosure or
becomes known to it without breach of this Agreement, as evidenced by
contemporaneous written records;

          (c)  is independently developed by the Recipient, as evidenced by
contemporaneous written records;

          (d)  is disclosed by the Discloser to a third party without
restriction on such third party's rights to disclose or use the same;

          (e)  is approved for release upon the Discloser's prior written
consent;

          (f)  is disclosed by Recipient pursuant to judicial order, a
requirement of a governmental agency or by operation of law, provided that the
Recipient gives the Discloser prompt written notice of any such requirement.

     12.4 This Section 12 shall survive termination or expiration of the
Agreement for a period of [***].

13.  TERM AND TERMINATION.

     13.1 Term.  This Agreement shall commence as of the Effective Date and
          ----
shall continue in effect for a period of three (3) years ("Initial Term"),
unless terminated earlier pursuant to this Agreement.

     13.2 Renewal.  Following the Initial Term, this Agreement may, at MKE's
          -------
sole option, be renewed for one additional three (3) year term, provided that
MKE gives at least [***] written notice prior to the expiration of the Initial
Term. Thereafter, in the event either party wishes to renew this Agreement, such
party will provide the other party with [***] written notice prior to the
expiration of the Initial Term or then current renewal term, and the parties
agree to negotiate in good faith for a period of up to [***] in an attempt to
renew this Agreement on terms mutually acceptable to both parties, which
renewal, if any, shall be set forth in writing and signed by both parties. The
foregoing renewal option and procedure shall apply to any and all additional
renewal terms.

     13.3 Termination.
          -----------

          (a)  This Agreement may be terminated in its entirety by either party
immediately upon the occurrence of any the following events:

               (i)   if the other ceases to do business, or otherwise terminates
its business operations;

               (ii)  if the other shall fail to promptly secure or renew any
license, registration, permit, authorization or approval necessary for the
conduct of its business in a manner contemplated by this Agreement, or if any
such license, registration, permit, authorization or approval is revoked or
suspended and not reinstated within [***] or if reinstatement is not possible
within [***],diligent efforts are not being made to effect such reinstatement;

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                                      -17-

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               (iii) if the other materially breaches any material provision of
this Agreement and fails to cure such breach within [***] after receiving
written notice from the non-breaching party describing such breach; or

               (iv)  if the other shall seek protection under any bankruptcy,
receivership, trust deed, creditors arrangement, composition or comparable
proceeding, or if any such proceeding is instituted against the other (and not
dismissed within [***]).

          (b)  This Agreement may be terminated by MKE in its absolute and sole
discretion without cause for any reason upon at least [***] days' prior written
notice to Replay. In the event of such termination by MKE, and notwithstanding
any other provision in this Agreement, (a) all license rights granted to MKE
hereunder shall terminate immediately (including all object code and source code
software licenses), (b) MKE shall cease any and all use of Replay Technology and
Replay Intellectual Property, including without limitation any development,
manufacture or sale of any products or components containing or embodying Replay
Technology or Replay Intellectual Property (excluding, for a period of [***]
after such termination, the manufacture and distribution of those components
necessary for the provision of spare parts for MKE Products to purchasers of
such products prior to termination of this Agreement), and (c) for a period of
[***] from the date of such termination, MKE shall not enter into any
discussions or agreements relating to the development or manufacture of any
products that support or are compatible with any Competitive Service or [***]
(except as expressly permitted under Section 7.2). The determination of whether
a service is a Competitive Service shall be made as of the effective date of any
agreement between MKE or MKE Affiliate and such service provider.

     13.4 No Liability for Termination.  Neither party shall incur any liability
          ----------------------------
whatsoever for any damages, loss or expenses of any kind suffered or incurred by
the other (or for any compensation to the other) arising from or incident to any
termination of this Agreement pursuant to Section 13.3 above, whether or not
such party is aware of any such damages, loss or expenses.

     13.5 Effect of Termination.   Upon expiration or any termination of this
          ---------------------
Agreement, all licenses granted by Replay hereunder shall immediately terminate
(excluding any End User Licenses), and MKE shall promptly return to Replay all
copies of any software source code, together with any modifications,
improvements and documentation relating thereto. Replay shall continue
supporting the RTVS and all End Users of ReplayTV Products as provided in this
Agreement. The following provisions shall survive the expiration or any
termination of this Agreement: Sections 1, 4.4(a), 4.4(b), 4.4(e), 5, 6.1, 7, 8,
10, 11, 12, 13.3 (b), 13.4, 13.5, 13.6, 13.7, 14.4, 15, 16, 19 and 20. Remedies
for all breaches hereunder will also survive. Each party will promptly return
all Confidential Information of the other party (and all copies and abstracts
thereof) that it is not entitled to retain under the surviving terms of this
Agreement.

     13.6 Termination Not Sole Remedy.  Termination is not the sole remedy under
          ---------------------------
this Agreement and, whether or not termination is effected, all other remedies
will remain available.

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     13.7 OEM Agreement Option.  Unless this Agreement is terminated by Replay
          --------------------
pursuant to Section 13.3(a), or by MKE pursuant to Section 13.3(b), MKE shall
have the right, for a period of [***] to enter into an OEM Agreement with Replay
for the manufacture and distribution of MKE Products, on terms and conditions
comparable to those terms and conditions generally offered by Replay to its
other OEMs at the time.

14.  REPRESENTATIONS AND WARRANTIES.

     14.1 Replay Warranties.  Replay represents and warrants that as of the
          -----------------
Effective Date (a) it has the full right and authority to enter into this
Agreement and grant the rights and licenses granted herein, (b) it has not
previously granted and will not grant any rights in conflict with this
Agreement, and (c) to the best of Replay's knowledge, no third party has
asserted any claim or demand that the Replay Intellectual Property or Replay
Technology infringes any third party Intellectual Property Rights or other
proprietary rights.

     14.2 MKE Warranties.  MKE represents and warrants that as of the Effective
          --------------
Date (a) it has the full right and authority to enter into this Agreement and
grant the rights granted herein, and (b) it has not previously granted and will
not grant any rights in conflict with this Agreement.

     14.3 Other Warranties.  Each party represents and warrants that it will
          ----------------
comply with all applicable laws, regulations and rules in connection with its
obligations and performance under this Agreement.

     14.4 Disclaimer of Warranties.  EXCEPT AS EXPRESSLY PROVIDED ABOVE IN
          ------------------------
SECTIONS 14.1, 14.2 14.3 AND 15, REPLAY AND MKE EACH EXPRESSLY DISCLAIM ANY
WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, WITH RESPECT TO THIS
AGREEMENT AND ALL ACTIVITIES HEREUNDER, INCLUDING, WITHOUT LIMITATION, ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE OR
NONINFRINGEMENT.

15.  INDEMNIFICATION.

     15.1 By Replay.  Replay shall indemnify, defend and hold harmless MKE, and
          ---------
its Affiliates, officers, directors, employees and agents ("MKE Indemnified
Parties"), from and against all loss, harm and liability, including, without
limitation, all costs, damages, settlements, claims, suits and expenses
(including reasonable attorneys' fees) incurred by any MKE Indemnified Party
arising out of or resulting from: (a) any claim for property damage, personal
injury or death caused by any action or omission by Replay in performing its
obligations under this Agreement; or (b) any claim that any of Replay Technology
or Replay Intellectual Property Rights including, without limitation, the RTVS,
the Replay Server Software, Replay Driver Software, the Replay Device Software
or any ReplayTV Products (except to the extent such claim is based on a ReplayTV
Product (or a portion or component thereof) developed, modified or improved by
or for MKE (other than by Replay)) infringes any third party Intellectual
Property Rights; provided that MKE shall provide Replay with prompt written
notice of any claim for which it seeks indemnification under this Section 15,
Replay shall have sole control of the defense and any settlement of any such
claim, and MKE shall reasonably cooperate and provide reasonable assistance in
connection with the defense or settlement of any such claim.

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -19-
<PAGE>

     15.2 By MKE.  MKE shall indemnify, defend and hold harmless Replay, and its
          ------
Affiliates, officers, directors, employees and agents ("Replay Indemnified
Parties"), from and against all loss, harm and liability, including, without
limitation, all costs, damages, settlements, claims, suits and expenses
(including reasonable attorneys' fees) incurred by any Replay Indemnified Party
and arising out of or resulting from: (a) any claim for property damage,
personal injury or death caused by any action or omission by MKE in performing
its obligations under this Agreement; or (b) any claim that the MKE Products
infringe any third party Intellectual Property Rights, except where such claim
arises solely as a result of the Replay Technology or Replay Intellectual
Property Rights; provided that Replay shall provide MKE with prompt written
notice of any claim for which it seeks indemnification under this Section 15,
MKE shall have sole control of the defense and any settlement of any such claim,
and Replay shall reasonably cooperate and provide reasonable assistance in
connection with the defense or settlement of any such claim.

     15.3 Options.  In the event of any allegation of infringement of any third
          -------
party Intellectual Property Right which is subject to indemnification under this
Section 15, the indemnifying party shall have the right, in its sole discretion,
to (a) obtain a license from the third party; (b) defend against such allegation
through final judgment and all timely filed appeals; and/or (c) redesign the
allegedly infringing products in order to avoid infringement, in which case the
indemnified party shall use diligent commercial efforts to immediately cease use
and distribution of all such allegedly infringing products and commence use of
the redesigned product, provided that such redesigned product provides
substantially similar functionality and is of substantially similar quality as
the allegedly infringing product, but in no event of less quality than the
former product.  In the event Replay does not take action under (a),(b) or (c)
above in a reasonable time, MKE shall, at its sole discretion, have a right to
terminate this Agreement.

     15.4 Limitations.  Notwithstanding the foregoing, neither party shall have
          -----------
any indemnification obligations pursuant to this Section 15 with respect to any
claim arising from (a) the combination, operation or use of the such party's
Technology or Intellectual Property Rights with other products, software or
materials not furnished by such party where such party's Technology or
Intellectual Property Rights would not themselves be infringing; or (b) the
modification or improvement of such party's Technology or Intellectual Property
Rights by the other party or any third party.

16.  LIMITATION OF LIABILITY.  NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT
OR OTHERWISE, NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY OR TO ANY OTHER
PERSON OR ENTITY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY
CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR
(I) ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR (II) LOST
PROFITS, LOST BUSINESS OR LOST DATA, EVEN IF THE REMEDIES PROVIDED FOR IN THIS
AGREEMENT FAIL OF THEIR ESSENTIAL PURPOSE AND EVEN IF EITHER PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OR PROBABILITY OF SUCH DAMAGES.  EXCEPT FOR EACH
PARTY'S OBLIGATIONS UNDER SECTION 15 (INDEMNIFICATION), ANY BREACH OF SECTION 12
(CONFIDENTIALITY), OR BREACH OF ANY LICENSES GRANTED PURSUANT TO SECTION 3, EACH
PARTY'S LIABILITY FOR DAMAGES OR ALLEGED DAMAGES HEREUNDER, WHETHER IN CONTRACT,
TORT (INCLUDING NEGLIGENCE),

                                      -20-
<PAGE>

STRICT LIABILITY OR ANY OTHER LEGAL THEORY, IS LIMITED TO, AND WILL NOT EXCEED,
TEN MILLION U.S. DOLLARS ($10,000,000).

17.  ASSIGNMENT.  Except as otherwise provided in this Agreement, neither party
may transfer or assign this Agreement nor the rights and obligations hereunder
(by operation of law or otherwise) without the prior written consent of the
other party; Notwithstanding the foregoing, no consent shall be required for any
assignment in connection with any merger, acquisition, sale or transfer of all,
or substantially all of a party's stock, assets or business to which this
Agreement relates; provided, however, that in the event of any acquisition of
                   --------  -------
Replay by an entity that derives at least fifty percent (50%) of its gross
revenues from home electronics products, MKE shall have the right to terminate
this Agreement upon [***] prior written notice if MKE and such entity cannot
resolve any problems or issues relating to the continuation of this Agreement
within three (3) months after the date of such assignment. The terms and
conditions of this Agreement shall bind and inure to each party's successors and
permitted assigns.

18.  PUBLICITY AND PRESS RELEASES.  Except to the extent necessary under
applicable laws or regulations or for ordinary marketing purposes, the parties
agree that no press releases or other publicity relating to the substance of the
matters contained herein will be made without approval by both parties.  A press
release announcing this Agreement will be jointly drafted and released by the
parties.

19.  SOURCE CODE ESCROW.

          19.1 Escrow.  Within [***] after the Effective Date, Replay
               ------
shall deposit with Data Securities International, Inc. ("Escrow Agent") the
                                                         ------------
source code to the Replay Device Software and Replay Driver Software ("Escrow
                                                                       ------
Materials") pursuant to the terms of an escrow agreement to be entered into
---------
among MKE, Replay, and the Escrow Agent.  At the end of each calendar quarter
thereafter, Replay shall deposit any updates or improvements to the Escrow
Materials completed during such calendar quarter.  Replay shall be responsible
for establishing and maintaining the escrow account.

          19.2 Release of Escrow Materials.  In the event that (i) Replay files
               ---------------------------
for or becomes a party to any involuntary bankruptcy or receivership, and such
involuntary proceeding is not dismissed within [***] after filing; or (ii)
Replay commences liquidation proceedings or generally ceases doing business, a
"Release Event" shall be deemed to have occurred.
 -------------

          19.3 Release Procedure.  Upon the occurrence and continuation of a
               -----------------
Release Event, MKE will notify the Escrow Agent.  The Escrow Materials will be
released for use by MKE, subject to the terms and conditions hereof, only after
notice of such Release Event from the Escrow Agent to Replay and Replay's
failure to declare in writing to the Escrow Agent within [***] that no Release
Event has occurred. If Replay makes such written declaration, then the issue of
whether a Release Event has occurred and is continuing shall be submitted to
arbitration in Santa Clara County, California, under the Commercial Arbitration
Rules of the American Arbitration Association by one (1) arbitrator appointed in
accordance with said Rules. Judgment on the award rendered by the arbitrator may
be entered in any court having jurisdiction thereof. The costs of the
arbitration, including administrative and arbitrator's fees, shall be shared
equally by the parties. Each party shall bear the costs of its own attorneys'
fees in connection with such arbitration.

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -21-
<PAGE>

          19.4 License.  Subject to the terms and conditions of this Agreement,
               -------
Replay hereby grants MKE a [***] right and license to use the Escrow Materials
pursuant to Section 3 hereof, which right and license MKE may exercise at any
time after the occurrence and during the continuation of a Release Event. Upon
the cessation of any Release Event, all licenses granted pursuant to this
Section 19.4 shall terminate, unless and until triggered again pursuant to this
Section 19, and MKE shall promptly return all copies of the Escrow Materials, or
any portion thereof, to Replay.

20.  MISCELLANEOUS.

          20.1 Export Control.  The parties shall comply with the U.S. Foreign
               --------------
Corrupt Practices Act and all applicable export laws, restrictions, and
regulations of any U.S. or foreign agency or authority.  The parties will not
export or re-export, or allow the export or re-export of any product, technology
or information it obtains or learns pursuant to this Agreement (or any direct
product thereof) in violation of any such law, restriction or regulation,
including, without limitation, export or re-export to Cuba, Iran, Iraq, Libya,
North Korea or any other country subject to U.S. trade embargoes, or to any
party on the U.S. Export Administration Table of Denial Orders or the U.S.
Department of Treasury List of Specially Designated Nationals, or to any
prohibited destination in any of the Country Groups specified in the then
current Supplement No. 1 to part 740 or the Commerce Control List specified in
the then current Supplement to part 738 of the U.S. Export Administration
Regulations (or any successor supplement or regulations).

          20.2 Amendment and Waiver.  Except as otherwise expressly provided
               --------------------
herein, any provision of this Agreement may be amended and the observance of any
provision of this Agreement may be waived (either generally or in any particular
instance and either retroactively or prospectively) only with the written
consent of the parties.  However, it is the intention of the parties that this
Agreement be controlling over additional or different terms of any purchase
order, confirmation, invoice or similar document, even if accepted in writing by
both parties, and that waivers and amendments of any provision of this Agreement
shall be effective only if made by non-preprinted agreements signed by both
parties and demonstrably understood by its term to be an amendment or waiver.
The failure of either party to enforce its rights under this Agreement at any
time for any period shall not be construed as a waiver of such rights.

          20.3 Governing Law and Legal Actions.  This Agreement shall be
               -------------------------------
governed by and construed under the laws of the State of California and the
United States without regard to conflicts of law provisions thereof and without
regard to the United Nations convention on Contracts for the International Sale
of Goods.  The sole jurisdiction and venue for actions related to the subject
matter hereof shall be the California state and U.S. federal courts having
jurisdiction in Santa Clara County, California.  In any action or proceeding to
enforce rights under this Agreement, the prevailing party shall be entitled to
recover reasonable costs and attorneys' fees.

          20.4 Headings.  Headings and captions are for convenience only and are
               --------
not to be used in the interpretation of this Agreement.

          20.5 Notices.  Any notice or other communication required to permitted
               -------
to be made or given to either party under this Agreement shall be deemed
sufficiently made or given on the date of delivery if delivered in person or by
overnight commercial courier

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -22-
<PAGE>

service with tracking capabilities with costs prepaid, or three (3) days after
the date of mailing if sent by certified first class U.S. mail, return receipt
requested and postage prepaid, at the address of the parties set forth below or
such other address as may be given from time to time under the terms of this
notice provision:

          If to MKE:

          8-1 Furujin-machi, Takamatsu, Kagawa
          760-0025 Japan
          Matsushita-Kotobuki Electronics Industries, Ltd.
          Attention: President
          Telephone: 087-851-7228
          Facsimile: 087-851-1047

          If to Replay:

          1945 Charleston Road
          Mountain View, California 94303
          Replay Networks, Inc.
          Attention: Chief Executive Officer
          Telephone: 650-210-1000
          Facsimile: 650-964-4847

          20.6 Severability.  If any provision of this Agreement is held to be
               ------------
illegal or unenforceable, that provision shall be limited or eliminated to the
minimum extent necessary so that this Agreement shall otherwise remain in full
force and effect and enforceable.

          20.7 Relationship of Parties.  The parties hereto expressly understand
               -----------------------
and agree that the other is an independent contractor in the performance of each
and every party of this Agreement and is solely responsible for all of its
employees and agents and its labor costs and expenses arising in connection
therewith.  The parties are not partners, joint venturers or otherwise
affiliated and neither has any right or authority to bind the other in any way.

          20.8 Force Majeure.  No liability or loss of rights hereunder shall
               -------------
result to either party from delay or failure in performance caused by an event
of force majeure (that is, circumstances beyond the reasonable control of the
party affected thereby, including, without limitation, acts of God, fire, flood,
war, governmental action, compliance with laws or regulations, strikes, lockouts
or other serious labor disputes, or shortage of or inability to obtain material
or equipment) for so long as such event of force majeure continues in effect.

          20.9 Remedies.  Except as otherwise expressly stated in this
               --------
Agreement, the rights and remedies of a party set forth herein with respect to
failure of the other to comply with the terms of this Agreement (including,
without limitation, rights of full termination of this Agreement) are not
exclusive, the exercise thereof shall not constitute an election of remedies and
the aggrieved party shall in all events be entitled to seek whatever additional
remedies that may be available in law or in equity.

                                      -23-
<PAGE>

          20.10  Basis of Bargain.  Each party recognizes and agrees that the
                 ----------------
warranty disclaimers and liability and remedy limitations in this Agreement are
material bargained for bases of this Agreement and that they have been taken
into account and reflect in determining the consideration to be given by each
party under this Agreement and in the decision by each party to enter into this
Agreement.   In addition, each party acknowledges and agrees that it has not
relied upon any proposals, oral or written, negotiations, conversations,
promises or discussions between or among the parties relating to the subject
matter of this Agreement or any past dealing or industry custom not expressly
set forth in this Agreement (or the exhibits hereto), the OEM Agreement, the
Stock Purchase Agreement or the Investor's Rights Agreement.

          20.11  Entire Agreement.  The parties agree that this Agreement,
                 ----------------
together with any exhibits hereto, and the OEM Agreement constitutes the entire
understanding and agreement with respect to the subject matter hereof and
supersedes all proposals, oral or written, all negotiations, conversations,
promises or discussions between or among parties relating to the subject matter
of this Agreement and all past dealing or industry custom.

MATSUSHITA-KOTOBUKI ELECTRONICS    REPLAY NETWORKS, INC.
INDUSTRIES, LTD.

By: /s/ Sachihiko Hamaguchi        By: /s/ Kim LeMasters
   ---------------------------        -----------------------------
Name:   Sachihiko Hamaguchi        Name:   Kim LeMasters
      ------------------------            -------------------------
Title:  President                  Title:  Chief Executive Officer
       -----------------------            -------------------------

                                      -24-
<PAGE>

                                   EXHIBIT A
                                   ---------

                    End User License Restrictions

     All ReplayTV Products sold by or for MKE, including any private label MKE
Products manufactured by or for MKE on behalf of third parties pursuant to
Section 4.2 shall include an End User Software License Agreement containing
provisions at least as restrictive as the following provisions:

     (1) the End User is granted a [***] license to use the Replay Driver
Software and Replay Device Software solely for its personal or internal business
purposes and solely in the geographic locations where the RTVS is supported,
subject at all times to the terms and conditions of the End User License
Agreement;

     (2) Replay, MKE and their respective licensors retain all of their
respective Intellectual Property Rights in the Replay Driver Software and Replay
Device Software (including any Replay Driver Software or Replay Device Software
incorporated into any ReplayTV Product), and no title to such intellectual
property is transferred to the End User;

     (3) the End User agrees to accept periodic software and content updates
that may be offered from time to time in connection with the RTVS;

     (4) the End User agrees to provide name and contact information during the
initial product configuration process and for each subsequent software update.

     (5) the End User agrees not to reverse assemble, decompile, or otherwise
attempt to derive source code from the Replay Driver Software and Replay Device
Software, or to remove or unbundle the Replay Driver Software or Replay Device
Software from any ReplayTV Product;

     (6) the End User agrees to comply with all export and re-export
restrictions and regulations of the Department of Commerce or other  agency or
authority of the United States or other applicable countries, and not to
transfer, or authorize the transfer, of the ReplayTV Products to a prohibited
country or otherwise in violation of any such restrictions or regulations;

     (7) Neither Replay nor MKE shall be liable to the End User for any
indirect, consequential, incidental or special damages arising out of the use or
license of the ReplayTV Products, regardless of the theory of liability
(including contract, tort (including negligence) or strict liability).

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                      -25-<PAGE>

                                                                   EXHIBIT 10.14

                          OEM Distribution Agreement

     This Distribution Agreement ("Agreement") is entered into the 30th day of
                                   ---------
July, 1999, and amended this 20/th/ day of December, 1999, between Matsushita-
Kotobuki Electronics Industries, Ltd. having its principal place of business at
8-1 Furujin-machi, Takamatsu, Kagawa prefecture, Japan ("MKE") and Replay
                                                         ---
Networks, Inc., 1945 Charleston Road, Mountain View, California 94303, U.S.A.
("Replay Networks").
  ---------------

                                   RECITALS:
                                   --------

     Replay Networks has designed certain Products that MKE desires to resell.
Replay Networks has entered into contracts with, and may in the future enter
into other contracts with, manufacturers of the Products ("Contract
                                                           --------
Manufacturers").  Under such contracts, the Contract Manufacturers have agreed
-------------
to manufacture the Products pursuant to Specifications provided by Replay
Networks and to deliver such Products. MKE desires to have the Contract
Manufacturers manufacture the Products and deliver the Products directly to MKE
and to have Replay Networks manage the Contact Manufacturers performance of the
design, production and delivery process.

                                  AGREEMENT:
                                  ---------

     In consideration of the foregoing and the agreements contained herein, the
parties agree as follows:

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

          "Confidential Information" of a party shall mean any information
           ------------------------
disclosed by that party to the other pursuant to this Agreement which is in
written, graphic, machine readable or other tangible form and is marked
"Confidential," "Proprietary" or in some other manner to indicate its
confidential nature. Confidential Information may also include oral information
disclosed by one party to the other pursuant to this Agreement, provided that
such information is designated as confidential at the time of disclosure and is
reduced to writing by the disclosing party within a reasonable time (not to
exceed twenty (20) days) after its oral disclosure, and such writing is marked
in a manner to indicate its confidential nature and delivered to the receiving
party.

          "Content" shall mean any video, text, graphics, images,
           -------
advertisements, promotions or other materials which are modified and/or updated
from time to time as part of the Replay Network Service, including, without
limitation, reserved channels, zones, hard drive allocation and other
configurations of any Product.

          "Intellectual Property" shall mean patents, copyrights, authors'
           ---------------------
rights, trademarks, tradenames, know-how and trade secrets relating to the
Products or the design, specifications or manufacture of the Products, and any
modifications or improvements thereto, irrespective of whether such rights arise
under U.S., or Japan or international intellectual property, unfair competition
or trade secret laws.

          "Inventory" shall mean raw materials and supplies necessary for the
           ---------
manufacture of Products pursuant to this Agreement.

          "Products" shall mean the products manufactured by Contract
           --------
Manufacturers at the direction of Replay Networks pursuant to this Agreement, as
set forth on Exhibit A attached hereto.
             ---------

          "Purchase Order" shall mean a MKE Purchase Order in the form attached
           --------------
as Exhibit B.
   ---------

          "Replay Software" shall mean Replay Networks' proprietary and/or
           ---------------
licensed operating systems and application software that is incorporated into or
downloaded onto any Product, including any

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
<PAGE>

improvements, modifications or enhancements thereto, but excluding hardware
driver software used to interface the Replay Software with the hardware
components of any Products.

          "Specifications" shall mean the specifications for the Products as
           --------------
provided to Contract Manufacturers by Replay Networks and as accepted by MKE in
writing, and as revised from time to time upon mutual written agreement of the
parties.

     2.   Agreement to Manage Production. Replay Networks agrees to use diligent
          ------------------------------
commercial efforts to perform the work (hereinafter "Work" as further defined
                                                     ----
below) pursuant to Purchase Orders or changes in Purchase Orders issued by MKE
and accepted by Replay Networks on behalf of its Contract Manufacturers. Work
shall mean to, on behalf of MKE, manage the design, production , delivery of
Products and other related matters by the Contract Manufacturers. All Products
will be manufactured by the Contract Manufacturers pursuant to the
Specifications. Except for any Replay Software or Content which does not affect
the functioning of the Products, Replay Networks shall not alter the design or
Specifications of any Products, nor deviate from such design or Specifications
for any purpose, including without limitation, of improving product quality or
safety, without a prior written consent of MKE.

     3.   MKE's subsidiary. Replay Networks acknowledges and agrees that MKE
          ----------------
shall have the right to cause the obligations of MKE hereunder to be performed
by one or more of its subsidiaries, and all references herein to MKE shall
include any subsidiaries of MKE to the extent such subsidiaries perform
obligations of MKE hereunder. The performance of the obligations of MKE
hereunder by one or more of its subsidiaries shall not release MKE from
liability for the performance of its obligations hereunder.

     4.   Forecasting, Orders, Material Procurement
          -----------------------------------------

          (a)  Forecast. Replay Networks shall cause the Contract Manufacturers
               --------
to supply the quantities of the Products meeting the Specifications on the
Delivery Dates requested by MKE provided the Delivery Dates (as defined below)
conform to the Product lead-times and MKE forecasts set forth herein. Lead time
from placing Purchase Order to the delivery of the Products shall be [***]
unless otherwise agreed in the Purchase Order by the parties. On the fifteenth
(15/th/) day of each month, MKE shall provide Replay Networks with a rolling
forecast in writing of MKE's estimated aggregate purchase requirements of
Product for the subsequent [***] (the "Forecast"). Such Forecast shall be
legally binding on MKE. Replay Networks shall use its best efforts to cause the
Contract Manufacturers to supply the number of Products set forth in the
Forecast.

          (b)  Purchase Orders. All Purchase Orders for each calendar month
               ---------------
shall be submitted on or before the fifteenth (15/th/) day of such month to
Replay Networks in writing by mail or facsimile to the address set forth on the
signature page to this Agreement. Such Purchase Orders must specify all Product
types and quantities, and must set a date of requested delivery (the "Delivery
                                                                      --------
Date"). Replay Networks will confirm receipt of Purchase Orders by facsimile or
----
e-mail. The parties agree that the terms and conditions contained in this
Agreement shall prevail over any terms and conditions of any Purchase Order,
acknowledgment form or other instrument.

          (c)  Acceptance or Rejection of Purchase Orders. Purchase Orders
               ------------------------------------------
submitted each month pursuant to Section 4(b) will be accepted or rejected by
Replay Networks in writing by the twenty-third (23/rd/) calendar day of each
month (or the following business day in the event the 23/rd/ day is a weekend or
a holiday). Any such Purchase Orders within Forecast amount and lead times
specified in Section 4(a) that are not rejected in writing by Replay Networks by
such date shall be deemed accepted by Replay Networks effective upon receipt of
such Purchase Order.

          (d)  Order Forecast Variations.
               -------------------------

               (i)   Purchase Order Acceleration. Replay Networks will use
                     ---------------------------
diligent commercial efforts to manage and cause the Contract manufacturer to
perform accelerated production and delivery of Products if MKE requests
acceleration ("Purchase Order Schedule Increase"). A request for a Purchase
               --------------------------------
Order Schedule Increase shall be submitted in writing by MKE to Replay Networks,
by mail or

[***]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

facsimile. Replay Networks will notify MKE in writing by mail or fax within
[***] business days of receipt of the request for a Purchase Order Quantity
Increase of (i) Replay Networks' capability to fill the Purchase Order Schedule
Increase and (ii) whether Replay Networks will add Expediting Charges to the
purchase price in order to meet the demands of the Purchase Order Schedule
Increase. Replay Networks' notification to MKE that it will accept a Purchase
Order Schedule Increase with no Expediting Charge will operate as an acceptance
of the Purchase Order Schedule Increase. Should Replay Networks notify MKE that
a Expediting Charge will be imposed, MKE will notify Replay Networks within
[***] business days if MKE accepts the revised terms of such Purchase Order
Schedule Increase. Agreements with respect to Purchase Order Schedule Increases
shall supercede prior Purchase Orders to the extent such prior Purchase Orders
conflict with the Purchase Order Schedule Increase. Any failure to provide
notification where required pursuant to this section 4(d)(i) shall be deemed to
operate as a rejection.

                  (ii)  Other Schedule Alterations. For each Purchase Order or
                        --------------------------
Forecast Product amounts, MKE shall be entitled, without penalty, to delay the
Delivery Date of Products as set forth in the table below:

<TABLE>
<CAPTION>
                 -------------------------------------------------------------------
                 # of days before       Maximum                   Maximum
                 Shipment Date on       Reschedule Quantity       Reschedule Period
                 Purchase Order or
                 Forecast Product
                 amount
                 -------------------------------------------------------------------
                 <S>                  <C>                       <C>
                 0-30                 [***]                     [***]
                 -------------------------------------------------------------------
                 31-60                [***]                     [***]
                 -------------------------------------------------------------------
                 61-90                [***]                     [***]
                 -------------------------------------------------------------------
                 91-120               [***]                     [***]
                 -------------------------------------------------------------------
</TABLE>

                  (iii) Any Purchase Order quantities rescheduled pursuant to
this section may not be subsequently rescheduled without the prior written
consent of Replay Networks. All other changes in shipment date other than as
authorized in this Section 4(d) require Replay Networks' prior written consent
and shall be subject to an inventory carrying charge of [***] per month for
finished Product, procured by the Contract Manufacturers to support the original
schedule.

     5.   Components; Tooling.
          -------------------

          (a)  Replay Networks' acceptance of Purchase Orders will constitute
authorization for Replay Networks to grant Contract Manufacturers permission to
procure, using standard purchasing practices, the components, materials,
supplies and other Inventory necessary for the manufacture of Products covered
by such Purchase Orders.

          (b)  MKE authorizes Replay Networks to grant Contract Manufacturers
permission to purchase, in amounts beyond the amount necessary to fill accepted
Purchase Orders, the components, materials, and supplies: (i) with lead times
greater than [***] at the time the Purchase Order is placed ("Long Lead Time
                                                              --------------
Components").
----------

          (c)  MKE shall be responsible for all Inventory and Long Lead Time
Components purchased by Replay Networks or the Contract Manufacturers pursuant
to this Section  5 under the conditions provided elsewhere in this Agreement. In
the event, however, Replay Networks cancels any Purchase Order and/or Forecast,
MKE shall not be responsible for any Inventory or  Long Lead Time Components
which were ordered or procured for such Purchase Order or Forecast.

          (d)  MKE shall pay for or obtain and consign to Contract Manufacturer,
via Replay Networks any Product-specific tooling and other reasonably necessary
non-recurring expenses specific to the Product, as set forth in Replay Networks'
quotation.

[***]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

          (e)  End Of Life Component Purchase Order. Replay Networks shall
               ------------------------------------
notify MKE in writing at least [***] in advance of the End of Life ("EOL") of
any Product. MKE may submit a Purchase Order of such EOL for spare parts for
such Products on terms, conditions and pricing to be mutually agreed by the
parties. Neither Replay Networks nor any Contract Manufacturer shall have any
obligation to supply spare parts to MKE for any Product after the EOL of such
product. By the end of [***] Replay Networks will establish a service center for
Replay direct products. MKE, at its option, may enter into a separate agreement
with such service center for out-of-warranty Product repairs and EOL inventory.

          (f)  Training. Replay Networks shall provide a reasonable number of
               --------
training classes for Matsushita Electric Corporation of America ("MECA")
personnel, at MECA's request, at locations in the United States mutually agreed
upon by Replay Networks and MECA. All reasonable expenses for such training
shall be mutually borne between MKE and Replay Networks.

     6.   MKE Requested Changes. MKE may request, at any time, in writing, that
          ---------------------
Replay Networks make changes to any of the following: (i) the design or
specifications of the Products, (ii) MKE's chosen method of shipment or packing,
or (iii) MKE's chosen place of delivery (collectively, "MKE Requested Changes").
                                                        ---------------------
Replay Networks will evaluate MKE Requested Changes and notify MKE of whether it
accepts the MKE Requested Changes within [***] business days of Replay Networks'
receipt of MKE's request. If, in the sole judgement of Replay Networks, the MKE
Requested Change will cause an increase in the cost or delay in the delivery of
the Products, Replay Networks will notify MKE of such in writing within the same
time period. Should Replay Networks notify MKE that an increase in the cost or
delay in the delivery of the Products will occur, MKE will notify Replay
Networks within [***] business days following its receipt of such notice if MKE
accepts the revised terms of such Purchase Order.

     7.   Product Shipment and Inspection.
          -------------------------------

          (a)  Shipments. All Products delivered pursuant to the terms of this
               ---------
Agreement shall be suitably packed for shipment in accordance with Replay
Networks' specifications, as approved in advance by MKE, marked for shipment to
MKE's destination specified in the applicable Purchase Order and delivered.
Shipment will be CIF to up to [***] warehouse locations in the continental
United States specified by Panasonic Consumer Electronics Company ("PCEC"), at
which time risk of loss and title will pass to MKE. All freight, insurance and
other shipping expenses will be paid by Replay Networks. The minimum shipment
order per location will be [***] Product units. Any special packing expenses not
included in the original price quotation for the Products will be paid by MKE.

          (b)  Cancellation. MKE may not cancel any part of any Purchase Order
               ------------
under this Agreement without Replay Networks' prior written consent, which
consent will not be unreasonably withheld. In the event MKE cancels any Purchase
Order, reasonable cancellation charges will be paid by MKE directly to Contract
Manufacture (Flextronics International) pursuant to the letter agreement agreed
upon by Replay Networks, MKE and Flextronics International substantially in the
same form attached as Exhibit D. If MKE pays such cancellation charges to
                      ---------
Flextronics, Replay Networks shall waive any rights to claim and receive remedy
arising or in relation to such cancellation.

          (c)  Product Inspection and Acceptance.
               ---------------------------------

             (i)   MKE will inspect the Products within [***] business days
of receipt in accordance with the inspection standard mutually agreed upon by
the parties in writing. MKE may, subject to Contract Manufacturer's prior
approval, implement the outgoing inspection, in its sole discretion, at the
facility of the Contract Manufacturer, provided, however, in no case MKE shall
waive its rights to implement incoming inspection at MKE's facility. If the
Products are found to be defective in material and workmanship, fail to meet
Specifications or the acceptable quality levels ("AQL") in the attached Exhibit
C, MKE has the right to reject such Products, at Replay Networks' cost and
expense, during said period. Products not rejected during said period will be
deemed accepted.

[***]=CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
<PAGE>

               (ii)  In the event of any rejection of Product pursuant to
Section 7(c)(i), MKE shall promptly notify Replay Networks in writing, and
provide a written failure report substantiating the basis for the rejection.
Within [***] business days after receipt of such notice and failure report,
Replay Networks shall either (a) send a Replay Networks representative to
inspect the Products at the applicable PCEC location, or (b) accept return of
rejected Products. In the event of an emergency request by MKE, Replay Networks
shall use diligent commercial efforts to shorten this [***] business day period.

          (d)  Documentation. Replay Networks shall be responsible for supplying
               -------------
operating instructions and registration card with each Product shipped to MKE;
provided, however, that the costs of such items do not exceed the costs of
--------  -------
comparable items in the ReplayTV 3000 product being shipped by Replay Networks.

     8.   Payment Terms, Additional Costs and Price Changes.
          -------------------------------------------------

          (a)  Payment Terms. The price for Products to be manufactured will be
               -------------
as specified in the attached Exhibit A, as such Exhibit may be amended in
                             ---------
writing by mutual agreement by the parties from time to time, and shall be
reflected in Purchase Orders issued by MKE and accepted by Replay Networks. All
prices quoted are exclusive of federal, state and local excise, sales, use and
similar taxes, and any duties, and MKE shall be responsible for all such items.
Payment for any Products, services or other costs to be paid by MKE hereunder is
due at the [***] day following the [***] the invoice has issued and delivered to
MKE (in the event such day is the holiday in U.S., then the following business
day) and shall be made in lawful U.S. currency. MKE agrees to pay [***] monthly
interest on all late payments. Furthermore, if MKE is late with payments and
fails to make such payments to Replay Networks within [***] days after receipt
of written notice from Replay Networks notifying MKE of such late payments,
Replay Networks may require prepayment or delay shipments or suspend work until
all such delinquent payments owed to Replay Networks are received. Such pre-
payment will be made to an escrow account designated by Replay Networks.

          (b)  Additional Costs.  MKE is responsible for (i) any expediting
               ----------------
charges reasonably necessary because of a change in MKE's requirements
("Expediting Charges") which charges are preapproved by MKE, (ii) any overtime
  ------------------
or downtime charges incurred as a result of delays in the normal production or
interruption in the workflow process and caused by MKE's change in
Specifications or other MKE Requested Changes which charges are preapproved by
MKE.

          (c)  Cost Reductions. Replay Networks agrees to make every possible
               ---------------
effort to reduce Products costs at Replay Networks sole responsibility. MKE will
assist Replay Networks to establish low components pricing for the Products.

          (d)  Purchase Volumes; Reports. During each [***] period set forth in
Exhibit A hereto, the parties will agree upon a guaranteed minimum and
target maximum number of Products MKE shall purchase from Replay, net of any
returns or cancellations, as set forth in Exhibit A. In the event that
(a) [***] (b) [***] or (c) [***] the parties agree to have further discussions
regarding the pricing for such Products and purchase volumes.

     9.   License Grants; Ownership Rights.
          --------------------------------

          (a)  License. During the term of this Agreement, MKE grants Replay
               -------
Networks a [***] license, with the right to sublicense to Contract
Manufacturers, to use all of MKE's Confidential Information and Intellectual
Property required to perform the Work and allow the Contract Manufacturer to
manufacture the Products pursuant to the terms of this Agreement. In addition,
MKE grants Replay Networks a [***] license, including the right to sublicense,
to use and modify any improvements, modifications or specifications for the
Products provided by MKE for the purposes of manufacture of the Products and
delivery thereof to MKE.

[***]=CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
<PAGE>

          (b)  Replay Software License. Subject to the terms and conditions of
               -----------------------
this Agreement, and during term hereof, Replay Networks grants to MKE a [***]
license, to use the Replay Software contained in the Products (in object code
form only) solely in conjunction with such Products. Except for the license
granted in this Section 9(b), all right, title and interest in the Replay
Software shall remain the exclusive property of Replay Networks or its
licensors. Noting in this Agreement entitles MKE to the receipt or use of, or
access to, Replay Software source code or any right to reproduce the Replay
Software. The Products are offered for sale and are sold by Replay Networks
subject in every case to the condition that such sale does not convey any
license, expressly or by implication, to modify, improve, manufacture,
reproduce, decompile, disassemble, compile or reverse engineer the Replay
Software. MKE acknowledges and agrees that it (i) may not modify the Replay
Software, and (ii) receives no title or ownership rights to such Replay
Software.

          (c)  Intellectual Property Rights.
               ----------------------------

                  (i) Replay Networks shall retain sole right, title and
interest in and to all Intellectual Property owned as of the date hereof and
solely developed by Replay Networks thereafter.

                 (ii) MKE shall retain sole right?title and interest in and to
all Intellectual Property owned as of the date hereof and solely developed by
MKE thereafter.

                (iii) Replay Networks and MKE shall retain undivided and equal
right, title and interest to all Intellectual Property jointly developed by
Replay Networks and MKE hereunder. The parties do not currently contemplate any
jointly developed Intellectual Property being developed pursuant to this
Agreement.

     10.  Confidential Information.
          ------------------------

          (a)  Nondisclosure and Nonuse. Each party shall treat as confidential
               ------------------------
all Confidential Information of the other party for a period of [***] after
termination of this Agreement, shall not use such Confidential Information
except as set forth in this Agreement, and shall use reasonable efforts not to
disclose such Confidential Information to any third party, without the prior
written consent of the disclosing party. Each party shall promptly notify the
other party of any actual or suspected misuse or unauthorized disclosure of the
other party's Confidential Information.

          (b)  Exceptions. Notwithstanding the above, neither party shall have
               ----------
liability to the other with regard to any Confidential Information of the other
which the receiving party can prove: (i) was in the public domain at the time it
was disclosed or has entered the public domain through no fault of the receiving
party; (ii) was known to the receiving party, without restriction, at the time
of disclosure, as demonstrated by files in existence at the time of disclosure;
(iii) is disclosed with the prior written approval of the disclosing party;(iv)
is disclosed by the disclosing party to a third party without restriction on
such third party's rights to disclose or use the same, (v) is independently
developed by the receiving party, or (vi) is disclosed pursuant to the order or
requirement of a court, administrative agency, or other governmental body;
provided, however, that the receiving party shall provide prompt notice of such
court order or requirement to the disclosing party to enable the disclosing
party to seek a protective order or otherwise prevent or restrict such
disclosure.

          (c)  Return of Confidential Information. Upon expiration or
               ----------------------------------
termination of this Agreement, each party shall promptly return all Confidential
Information of the other party.

          (d)  Remedies. Any breach of the restrictions contained in this
               --------
Section 10 is a breach of this Agreement which may cause irreparable harm to the
nonbreaching party. Any such breach shall entitle the nonbreaching party to
injunctive relief in addition to all legal remedies.

          (e)  Confidentiality of Agreement. Each party agrees that the
               ----------------------------
existence and the terms and conditions of this Agreement shall be treated as
Confidential Information and shall not be

[***]=CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

disclosed to any third party; provided, however, that each party may disclose
the terms and conditions of this Agreement:(i) as required by any court or other
governmental body; (ii) as otherwise required by law; (iii) to legal counsel of
the parties; (iv) in confidence, to accountants, banks, and financing sources
and their advisors; (v) in connection with the enforcement of this Agreement or
rights under this Agreement; or (vi) in confidence, in connection with an actual
or proposed merger, acquisition, or similar transaction.

     11.  Indemnity.
          ---------

          (a)  By Replay Networks. Except for any indemnification obligation of
               ------------------
of MKE pursuant to Section 11(b) below, Replay Networks shall defend, indemnify
and hold harmless MKE from all claims, costs, damages, judgments and attorney's
fees resulting from or arising out of any third party claim alleging that the
Products infringe any valid U.S. and Japanese patents, patent rights,
trademarks, trademark rights, trade name rights, copyrights, trade secrets,
proprietary rights and processes or other intellectual property right. MKE shall
promptly notify Replay Networks in writing of the initiation of such claims. In
addition, Replay Networks shall have sole control of the defense and any
settlement of any such claim, and MKE shall provide reasonable assistance in
connection with the defense or settlement of any such claim. In the event of
infringement on third party's intellectual property rights, Replay Networks
shall, at its option, and subject to MKE's consultation: (i) procure for MKE the
right to continue the use or sale of the Products, (ii) provide Products which
do not infringe such intellectual property right or (iii) accept return of such
Products and refund the amounts paid by MKE therefore.

          (b)  By MKE. MKE shall defend, indemnify and hold harmless Replay
               ------
Networks from all claims, costs, damages, judgments and attorney's fees
resulting from or arising out of any third party claim that any MKE Requested
Change, alone or in combination with any Product, infringes any valid U.S. and
Japanese patents, patent rights, trademarks, trademark rights, trade name
rights, copyrights, trade secrets, proprietary rights and processes or other
such intellectual property right. Replay Networks shall promptly notify MKE in
writing of the initiation of such claims. In addition, MKE shall have sole
control of the defense and any settlement of any such claim, and Replay Networks
shall reasonably cooperate and provide reasonable assistance in connection with
the defense or settlement of any such claim.

          (c)  Limitations. THE FOREGOING STATES THE ENTIRE LIABILITY AND
               -----------
OBLIGATIONS OF, AND THE EXCLUSIVE REMEDY OF, THE PARTIES, WITH RESPECT TO ANY
ALLEGED OR ACTUAL INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADE SECRETS, TRADEMARKS
OR OTHER INTELLECTUAL PROPERTY RIGHTS.

          (d)  Product Liability. Replay Networks agrees that, if notified
               -----------------
promptly in writing and given sole control of the defense and all related
settlement negotiations, it will defend MKE from any claim or action and will
hold MKE harmless for any property damage or personal injury, including death,
which arises from any alleged defect of any Products, other than for any claim
or action resulting from or arising out of any modification, enhancement, or
change in specifications of the Product specified in any written MKE design
instructions or drawings. Replay Networks shall name MKE as an additional
insured under Replay Networks' product liability policies for any Products.

     12.  No Other Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN,
          ------------------
NEITHER PARTY NOR ITS AGENT(S), REPRESENTATIVE(S) OR EMPLOYEE(S) SHALL BE LIABLE
TO THE OTHER PURSUANT TO THIS AGREEMENT FOR AMOUNTS REPRESENTING LOSS OF
REVENUES, LOSS OF PROFITS, LOSS OF BUSINESS OR INDIRECT, CONSEQUENTIAL, SPECIAL
OR PUNITIVE DAMAGES OF THE OTHER PARTY, HOWEVER CAUSED AND ON ANY THEORY OF
LIABILITY, EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.

     EXCEPT FOR EACH PARTY'S OBLIGATIONS UNDER SECTION 11 (INDEMNITY) AND
SECTION 10 (CONFIDENTIALITY), EACH PARTY'S TOTAL LIABILITY, AND THE LIABILITY OF
ITS AGENT(S), REPRESENTATIVE(S) AND EMPLOYEE(S), FOR DAMAGES OR ALLEGED DAMAGES,
WHETHER IN CONTRACT OR TORT (INCLUDING STRICT LIABILITY AND NEGLIGENCE) WITH
RESPECT TO THIS AGREEMENT IS LIMITED TO AND SHALL NOT
<PAGE>

EXCEED THE TOTAL AMOUNTS PAID BY MKE TO REPLAY NETWORKS UNDER THIS AGREEMENT.

     13.  Warranty and Disclaimer; Returns.
          --------------------------------

          (a)  Warranty and Disclaimer. Replay Networks warrants that the
               -----------------------
Products will conform to Specifications and will be free from defects in
material and workmanship for a period of [***] from the date of sales to
end-users from PCEC subject to repair with no charge of labor costs, and
[***] from the date of sales to end-users from PCEC, subject to repair with
no charge for materials, parts and components; provided, however, that in no
                                               --------  --------
event shall Replay Networks have any warranty obligation for (i) labor costs
more than [***] after shipment to PCEC, or (ii) materials, parts and components
more than [***] after shipment to PCEC. This express limited warranty does not
apply to (a) materials consigned or supplied by MKE to Replay Networks or the
Contract Manufacturers, (b) defects resulting from MKE's contributions to the
design of the Products or from MKE Requested Changes; or (c) Product that has
been abused, damaged, altered or misused by any person or entity after the title
passes to MKE. With respect to first articles, prototypes, pre-production units,
test units or similar Products, Replay Networks makes no representations or
warranties whatsoever. Upon any failure of Product to comply with the above
warranty, Replay Network's sole obligation and MKE's sole remedy, is for Replay
Networks to have the Contract Manufacturer (or Replay Networks' designated
repair vendor), at Replay Networks' option, promptly repair or replace such
Product pursuant to the provisions of Section 13(b). EXCEPT FOR THE FOREGOING
EXPRESSLY STATED WARRANTIES, REPLAY NETWORKS MAKES NO EXPRESS OR IMPLIED
WARRANTIES RELATING TO THE PRODUCTS COVERED BY THIS AGREEMENT. REPLAY NETWORKS
EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

          (b)  Returns.
               -------

               Products (or subassemblies thereof) in breach of warranty to
Section 13(a) shall be returned by MKE directly to the Contract Manufacturer (or
other point of repair specified by Replay Networks), freight pre-paid, subject
to (a) MKE notifying Replay Networks of MKE's intention to return such Products
(or subassemblies thereof), (b) MKE's completion of a failure report and (c) MKE
obtaining a return material authorization number from Replay Networks to be
displayed on the shipping container. Shipment of such repaired or replaced
Products (or subassemblies thereof) shall be at Replay Networks' expense, except
that MKE shall bear all shipping costs for Products (or subassemblies thereof)
that MKE, Replay Networks and Contract Manufacturer determine after testing are
not defective and conform to Specifications.

               Alternatively, MKE may to repair such defective Products itself
at Replay Networks' cost and expense. The detailed procedure, conditions, and
acceptable costs for such warranty return, repair and replacement by MKE shall
be mutually agreed upon by the parties in writing.

     14.  Term and Termination.
          --------------------

          (a)  Term. This Agreement shall become effective on the date of this
               ----
Agreement and shall continue  until April 1, 2001.

          (b)  Termination. This Agreement may be terminated at any time with or
               -----------
without cause by either party upon the giving of not less than [***] written
notice by registered mail to the other party. Either party may terminate this
Agreement at any time if the other party breaches any material term or condition
hereof and fails to cure such breach within [***] after notice of such breach in
the case of a default in any payment, or [***] after notice of such breach in
the case of any breach of any other material term or condition of this
Agreement, or if the other party shall be or becomes insolvent, or if either
party makes an assignment for the benefit of creditors, or if there are
instituted by or against either party proceedings in bankruptcy or under any
insolvency or similar law or for reorganization, receivership or dissolution.

[***]=CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
<PAGE>

          (c)  Termination Liability. Neither party shall be liable in any
               ---------------------
manner on account of the termination or cancellation of this Agreement. The
rights of termination and cancellation as set forth herein are absolute. Both
MKE and Replay Networks are aware of the possibility of expenditures necessary
in preparing for performance hereunder and the possible losses and damages that
may occur to each in the event of termination or cancellation. Both parties
clearly understand that neither shall be liable for damages of any kind
(including but not limited to special, incidental or consequential damages) by
reason of the termination or cancellation of this Agreement except as otherwise
expressly provided herein.

          (d)  Obligations Upon Termination. The termination or expiration of
               ----------------------------
this Agreement shall in no way relieve either party from its obligations to pay
the other any sums accrued hereunder and to fulfill the performance under any
accepted Purchase Order regarding the Products in existence prior to such
termination or expiration.

          (e)  Survival of Certain Provisions. Notwithstanding anything to the
               ------------------------------
contrary in this Agreement, the following sections shall survive termination of
this Agreement:  1, 8, 9, 10, 11, 12, 13, 14 and 15.

     15.  Miscellaneous.
          -------------

          (a)  Amendments and Waivers. Any term of this Agreement may be amended
               ----------------------
or waived only with the written consent of the parties or their respective
successors and assigns. Any amendment or waiver effected in accordance with this
Section 15(a) shall be binding upon the parties and their respective successors
and assigns.

          (b)  Successors and Assigns. Neither party shall have the right to
               ----------------------
assign or otherwise transfer its rights or obligations under this Agreement
except with the prior written consent of the other party, not to be unreasonably
withheld. Subject to the foregoing, the terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective permitted
successors and assigns of the parties. 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.

          (c)  Governing Law; Jurisdiction. This Agreement and all acts and
               ---------------------------
transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws
of the State of California and the United States, without giving effect to
principles of conflicts of law and without regard to the United Nations
Convention on Contracts for the International Sale of Goods. Each of the parties
to this Agreement consents to the exclusive jurisdiction and venue of the courts
of the state and federal courts of Santa Clara County, California for actions
related to the subject matter of this Agreement.

          (d)  Counterparts. This Agreement may be executed in two or more
               ------------
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

          (e)  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.

          (f)  Notices. Any notice required or permitted by this Agreement shall
               -------
be in writing and shall be deemed sufficient upon receipt, when delivered
personally or by overnight delivery service with tracking capabilities with
costs prepaid, or three (3) days after being deposited in the regular mail as
certified or registered mail (airmail if sent internationally) with postage
prepaid and return receipt requested, if such notice is addressed to the party
to be notified at such party's address or facsimile number as set forth below,
or as subsequently modified by written notice:

       If to Replay Networks:
          Replay Networks, Inc.
<PAGE>

          1945 Charleston Road
          Mountain View, California 94303
          Atten: Legal Department
          Tel. 650-210-1000
          Fax  650-964-4847

       If to MKE:
          Matsushita-Kotobuki Electronics Industries, Ltd.
          8-1 Furujin-machi
          Takamatsu
          Kagawa prefecture
          Japan
          Attn: Legal Department
          Tel. 81-87-851-7228
          Fax. 81-87-851-1047

          (g)  Severability. If one or more provisions of this Agreement are
               ------------
held to be illegal or unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith, in order to maintain the economic
position enjoyed by each party as close as possible to that under the provision
rendered unenforceable. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision within five (5)
business days, then (i) such provision shall be limited or eliminated to the
minimum extent necessary to be enforceable, (ii) the balance of the Agreement
shall be interpreted as if such provision were limited or eliminated as the case
may be and (iii) the balance of the Agreement shall be enforceable in accordance
with its terms.

          (h)  Entire Agreement. This Agreement  is the product of both of the
               ----------------
parties hereto, and constitutes the entire agreement between such parties
pertaining to the subject matter hereof, and merges all prior negotiations and
drafts of the parties with regard to the transactions contemplated herein. Any
and all other written or oral agreements existing between the parties hereto
regarding such transactions are expressly canceled.

          (i)  Independent Contractors. The relationship of Replay Networks and
               -----------------------
MKE established by this Agreement is that of independent contractors, and
nothing contained in this Agreement will be construed (i) to give either party
the power to direct and control the day-to-day activities of the other, (ii) to
constitute the parties as partners, joint ventures, co-owners or otherwise as
participants in a joint or common undertaking, or (iii) to allow either party to
create or assume any obligation on behalf of the other for any purpose
whatsoever.

          (j)  Force Majeure. If the performance of this Agreement or any
               -------------
obligations hereunder is prevented, restricted or interfered with by reason of
fire or other casualty or accident, strikes or labor disputes, war or other
violence, any law, order, proclamation, regulation, ordinance, demand or
requirement of any government agency, or any other act or condition beyond the
reasonable control of the parties hereto, the party so affected upon giving
prompt notice to the other parties shall be excused from such performance during
such prevention, restriction or interference.

          (k)  Advice of Legal Counsel. Each party acknowledges and represents
               -----------------------
that, in executing this Agreement, it has had the opportunity to seek advice as
to its legal rights from legal counsel and that the person signing on its behalf
has read and understood all of the terms and provisions of this Agreement.  This
Agreement shall not be construed against any party by reason of the drafting or
preparation thereof.

     The parties have executed this Agreement as of the date first set forth
above.
<PAGE>

MATSUSHITA-KOTOBUKI                     REPLAY NETWORKS, INC.
ELECTRONIC INDUSTRIES, LTD.

By:    /s/ Takao Kanamura               By:    /s/ Kim LeMasters
       ---------------------------             ---------------------------

Name:  Takao Kanamura                   Name:  Kim LeMasters
       --------------------------              ---------------------------
               (print)                                   (print)
Title: Senior Management Director       Title: Chief Executive Officer
       --------------------------              ---------------------------

Date:  December 20, 1999                Date:  December 20, 1999
       --------------------------              ---------------------------
<PAGE>

                                   Exhibit A
                                   ---------

                             Products and Pricing

I.   First Period - Products shipped from [***] to [***]

Product                                          Price           Projected MSRP
-------                                          -----           --------------

PV-HS1000 (20 GB Hard Drive)                     [***]                [***]

PV-HS2000 (30 GB Hard Drive)*                    [***]                [***]

Guaranteed Minimum Purchase Volume:               [***] Product units**
Target Maximum Purchase Volume:                   [***] Product units**

* This Product will be available on [***].

**Guarantee minimum and target maximum volumes apply to all Products and any
products manufactured by MKE containing Replay Software that support the Replay
Network Service ("MKE Products").

II.  Second Period - Products shipped from [***] to [***]

MKE and Replay Networks will meet prior to [***] to negotiate in good
faith the pricing and guaranteed minimum and maximum purchase volumes for each
Product or MKE Product to be sold during the second period. In determining such
pricing, the parties shall consider, for each Product or MKE Product: (a) [***],
(b) [***], and (c) [***]. The agreed upon pricing, minimum and maximum purchase
volumes for each Product or MKE Product shall be attached to this Exhibit A upon
the completion of such negotiations.

[***]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                                   Exhibit B
                                   ---------

                            Form of Purchase Order
<PAGE>

                                   Exhibit C
                                   ---------

                        Acceptable Quality Levels (AQL)

     1.1. Defect Classifications

The following definitions and defect classifications shall be used when defining
a Hard Disk Recorder (hereinafter called HDR) defect:

Defect                A definite HDR characteristic one or more defect.

Defective HDR         A HDR containing one or more Defect.

                      Note:   A HDR containing Defects in more than one (1)
                      category shall be classified as being defective in the
                      most severe classification.

Fitness for Use       To be fit for use, a HDR must be free of Safety, Critical
                      and Major Defects.

Safety Defect [***]   A Defect that would cause the HDR to be unsafe, in
                      violation of an applicable safety code or which, when
                      connected with another piece of equipment (e.g., video
                      source or monitor), would materially damage said connected
                      equipment.

Critical Defect [***] A Defect that would cause the HDR to be inoperative.

Major Defect [***]    A Defect which reduces materially the usability of the
                      HDR, yields unsatisfactory results or detracts from the
                      appearance of the HDR and is likely to leave customer
                      dissatisfied.

Minor Defect [***]    A Defect which does not affect fitness for use, but one
                      which should be noted for corrective action by the
                      Supplier.

2.   Lot Acceptance

     (a) Lot size:  [***] units typical
     (b) Lots rejected for Major Defects may be reconsidered for acceptance upon
         notification of MKE and remedial action implemented by Replay
         Networks, Inc.

[***]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

        TABLE FOR INSPECTION FOR OUT-GOING PRODUCT       MODEL;PV-HS1000
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                ITEMS                                    CRITERIA                            DECISION                NOTES
                                                                                       ----------------------
                                                                                       CRITICAL  MAJOR  MINOR
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>                                <C>       <C>    <C>           <C>
1.   PACKING                                                                                                         A
 1-1 PACKING CASE                                  NOTICEABLE DAMAGES                          [***]

                                                   INCORRECT INDICATIONS                       [***]
 1-2 PACKING SPEC
                                                   MIS-PRINTINGS                               [***]

                                                   OUT-OF-SPEC ISSUES                          [***]

                                                   MIXTURE OF ALIEN OBJECTS                    [***]
---------------------------------------------------------------------------------------------------------------------------------
2.   INCLUDED ACCESSORIES                                                                                            A
 2-1 SUPPLIED ACCESSORIES                          SHORTAGE, MIS-INSERTION, MIXTURE            [***]
                                                   OF ALIEN OBJECTS

                                                   DIRT OR STAIN
---------------------------------------------------------------------------------------------------------------------------------
3.   OUTER APPEARANCE                                                                                                A
 3-1 GENERAL OUTER APPEARANCE                      NOTICEABLE DIRT OR STAIN, DAMAGES           [***]

 3-2 LABEL                                         SHORTAGE, MIS-LOCATION                      [***]

                                                   MIS-PRINTING, DIRT OR STAIN                 [***]
---------------------------------------------------------------------------------------------------------------------------------
4.   FUNCTION
 4-1 POWER ON/OFF BUTTON                           NO FUNCTION                                 [***]
 4-2 REMOTE HDR FUNCTION                           NO FUNCTION                                 [***]
 4-3 REMOTE OTHER FUNCTION                         NO FUNCTION                                 [***]
---------------------------------------------------------------------------------------------------------------------------------
5.   LED INDICATION
 5-1 POWER (G)                                     INCORRECT INDICATION                        [***]
 5-2 RECORDING (R)                                 INCORRECT INDICATION                        [***]
 5-3 NEW CONTENT                                   INCORRECT INDICATION                        [***]
---------------------------------------------------------------------------------------------------------------------------------
6.   INPUT/OUTPUT TERMINALS                                                                                          A
 6-1 ANT/CATV IN                                   NO VIDEO, OR NO COLOR, OR NO AUDIO          [***]

                                                   TROUBLES ON VIDEO OR AUDIO                  [***]
                                                   (POOR, EXCESSIVE, NOISY, DISTORTED)

 6-2 LINE1, LIN2, S-VIDEO                          NO VIDEO, OR NO COLOR, OR NO AUDIO          [***]

                                                   TROUBLES ON VIDEO OR AUDIO                  [***]
                                                   (POOR, EXCESSIVE, NOISY, DISTORTED)
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

<TABLE>
---------------------------------------------------------------------------------------------------------
<S>                              <C>                                 <C>
7. CONTROL TERMINALS
 7-1 IR BLASTER PORT             NO FUNCTION (NO CONTROLLING         [***]
                                 A DBS AND CABLE BOX WITH IR
                                 CONTROL)

 7-2 SERIAL CONTROL              NO FUNCTION (NO LINKING A DSS)      [***]

 7-3 TEL LINE                    NO FUNCTION (NO CONNECTING TO
                                 THE REPLAY NETWORKS SERVICE)        [***]
---------------------------------------------------------------------------------------------------------
</TABLE>

A = Classification subject to mutually agreed upon specification.

[***] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

<PAGE>

                                   EXHIBIT D
                                   ---------

                               LETTER AGREEMENT

This Letter Agreement is entered into as of        , 1999 by and among Replay
Networks Inc. ("Replay Networks"), Matsushita-Kotobuki Electronics Industries,
Ltd. ("MKE"), and Flextronics International ("Flextronics").

Replay Networks and MKE have entered into the OEM Distribution Agreement ("OEM
Agreement") in which MKE will purchase ReplayTV 3000 ("Products") manufactured
by Flextronics from Replay Networks.

Replay Networks, MKE and Flextronics desire to establish certain procedure and
conditions with respect to the cancellation of purchase orders for the Products
under the OEM Agreement.

The parties undersigned acknowledge and agree as follows:

1.    MKE may not cancel any part of any purchase order of Products issued by
      MKE and accepted by Replay Networks under the OEM Agreement ("Purchase
      Order") without Replay Networks' prior written consent, which consent will
      not be unreasonably withheld.

2.    In the event MKE cancels any Purchase Order, MKE will reimburse reasonable
      cancellation charges directly to Flextronics. Flectronics shall invoice
      MKE such cancellation charges based on actual costs supported by
      documentation, which costs will be identified by Flextronics within [***]
      after said cancellation. For the purpose of this Addendum, said actual
      costs are defined as the costs of materials, together with related
      restocking charges, which have been procured specifically for Products and
      expected to be built for MKE on any MKE Purchase Order(s) accepted by
      Replay Networks, and any production related charges due to cancellation of
      such Purchase Order(s). Upon determination of the cancellation charges,
      MKE may accept delivery of Products under the terms of the Purchase Order
      in lieu of paying such cancellation charges.

3.    MKE shall promptly notify Flextronics and Replay Networks in the event of
      any cancellation of any Purchase Order. MKE shall not be responsible for
      any portion of such cancellation charge arising from any delay by
      Flextronics in stopping or ceasing procurement of any materials, or
      manufacturing of the Products, and Flextronics shall bear such costs.

Replay Networks, Inc.      Matsushita-Kotobuki Electronics
                           Industries, Ltd.

By:____________________              By:_________________________

Title:                               Title:

Flextronics International

By:____________________                                          .

Title:

[***]= CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}]]