Document:

EXHIBIT 10.1

         These  Warrants have not been  registered  under the  Securities Act of
         1933,  as  amended  (the  "Act"),  and  may not be  sold,  transferred,
         assigned  or  otherwise  disposed of unless the person  requesting  the
         transfer  of the  Warrants  shall  provide  an  opinion  of  counsel to
         Preferred  Voice,  Inc. (the "Company") (both counsel and opinion to be
         satisfactory  to the  Company) to the effect that such sale,  transfer,
         assignment  or  disposition  will  not  involve  any  violation  of the
         registration  provisions  of  the  Act or any  similar  or  superseding
         statute.

No.                                                                   Warrants
    --------------                                  ----------------

                              PREFERRED VOICE, INC.

                               WARRANT CERTIFICATE

         This warrant  certificate  ("Warrant  Certificate")  certifies that for
value received ____________ (the "Initial Warrant Holder") or registered assigns
is the owner of the number of warrants  specified above,  each of which entitles
the holder  thereof to purchase,  at any time on or before the  Expiration  Date
hereinafter  provided,  one fully paid and non-assessable share of common Stock,
$0.001 par value per share,  of Preferred  Voice,  Inc., a Delaware  corporation
(the "Company"),  at a purchase price of $____ per share of Common Stock payable
in lawful money of the United  States of America,  in cash,  by official bank or
certified check, or by wire transfer ("Warrants").

1.       Warrant; Purchase Price

         Each Warrant shall entitle the holder  thereof to purchase one share of
Common Stock, $0.001 par value per share, of the Company ("Common Stock") during
the period  commencing on the date hereof and ending on the Expiration Date. The
purchase  price payable upon exercise of a Warrant shall be $____ (the "Purchase
Price").  The  Purchase  Price and number of Warrants  evidenced by this Warrant
Certificate  are subject to  adjustment  as provided in Article 7. Common  Stock
purchased  or subject  to  purchase  pursuant  to the  Warrants  shall be called
"Warrant Shares" herein.

2.       Exercise; Expiration Date

         2.1 Each Warrant is  exercisable,  at the option of the holder,  at any
time  after  issuance  and on or  before  the  Expiration  Date.  In the case of
exercise of less than all the Warrants represented by a Warrant Certificate, the
Company  shall cancel the Warrant  Certificate  upon the  surrender  thereof and
shall  execute  and deliver a new  Warrant  Certificate  for the balance of such
Warrants.

         2.2 The term "Expiration Date" shall mean 5:00 p.m. Dallas time on ____
__, _____,  or if such date shall in the State of Texas be a holiday or a day on
which  banks are  authorized  to close,  then  5:00  p.m.  Dallas  time the next
following  day which in the  State of Texas is not a  holiday  or a day on which
banks are authorized to close.

<PAGE>

3.       Registration and Transfer on Company Books

         3.1 The Company shall maintain books for the  registration and transfer
of Warrant Certificates.

         3.2 Prior to due  presentment  for  registration  of  transfer  of this
Warrant Certificate, the Company may deem and treat the registered holder as the
absolute owner thereof.

         3.3 The Company shall register upon its books any transfer of a Warrant
Certificate upon surrender of same to the Company accompanied (if so required by
the Company) by a written instrument of transfer duly executed by the registered
holder or by a duly authorized attorney. Upon any such registration of transfer,
new  Warrant  Certificate(s)  shall  be  issued  to the  transferee(s)  and  the
surrendered  Warrant  Certificate  shall be cancelled by the Company.  A Warrant
Certificate may also be exchanged,  at the option of the holder, for new Warrant
Certificates  representing in the aggregate the number of Warrants  evidenced by
the Warrant Certificate surrendered.

4.       Securities Law Registration

         4.1 The Warrant Shares will not be registered  under the Securities Act
or any state securities law and shall not be transferrable  unless registered or
an exemption from  registration is available.  A legend to the foregoing  effect
will be placed on any certificate representing such shares.

         4.2 If, at any time ____________________, the Company  proposes for any
reason to register any of its  securities  under the Securities Act other than a
registration  on Form S-8 relating  solely to employee  stock option or purchase
plans,  on Form S-4  relating  solely to an SEC Rule 145  transaction  or on any
other form which does not include substantially the same information as would be
required to be included in a  registration  statement  covering  the sale of the
Warrant  Shares,  it shall each such time give  written  notice to the holder of
these Warrants or the Warrant  Shares  ("Holder" for purposes of this Section 4)
of the Company's  intention to register such  securities,  and, upon the written
request,  given within thirty (30) days after receipt of any such notice, of the
Holders of the Warrants and Warrant Shares  outstanding,  to register any of the
Warrant  Shares,  the Company shall cause the Warrant Shares so requested by the
Holder to be registered,  whether such Warrant Shares are outstanding or subject
to purchase hereby, to be registered under the Securities Act, all to the extent
requisite to permit the sale or other  disposition  by the Holder of the Warrant
Shares so  registered;  provided,  however,  that the Warrant Shares as to which
registration had been requested need not be included in such  registration if in
the opinion of counsel  for the Company and counsel for the Holder the  proposed
transfer by the Holder may be effected without registration under the Securities
Act and any  certificate  evidencing  the  Warrant  Shares  need  not  bear  any
restrictive legend. In the event that any registration  pursuant to this Section
4.2 shall be, in whole or in part, an underwritten offering of securities of the
Company,  then (i) any request  pursuant to this Section 4.2 to register Warrant
Shares may specify  that such shares are to be included in the  underwriting  on
the same terms and  conditions  as the  shares of the  Company's  capital  stock
otherwise being sold through  underwriters under such registration,  (ii) if the
managing underwriter of such offering determines that the number of shares to be
offered by

                                       -2-

<PAGE>

all selling shareholders must be reduced,  then the Company shall have the right
to reduce the number of shares registered on behalf of the Holder, provided that
the  number of  shares to be  registered  on behalf of the  Holder  shall not be
reduced  to such an extent  that the  ratio of the  shares  which the  Holder is
permitted to register to the total number of shares the Holder owns is less than
that ratio for any other selling shareholder, and (iii) the Holder will be bound
by the terms of the  underwriting  agreement and the  conditions  imposed by the
underwriter on selling shareholders.

         4.3 If and whenever the Company is under an obligation  pursuant to the
provisions  of this  Warrant  Certificate  to register any Warrant  Shares,  the
Company shall, as expeditiously as practicable:

                  (a)  prepare  and  file  with  the   Securities  and  Exchange
         Commission (the "Commission") a registration  statement with respect to
         such  shares  and use its  best  efforts  to  cause  such  registration
         statement to become and remain effective for at least nine (9) months;

                  (b) prepare and file with the Commission  such  amendments and
         supplements to such  registration  statement and the prospectus used in
         connection  therewith  as may be  necessary  to keep such  registration
         statement  effective  for at least nine  months and to comply  with the
         provisions  of the  Securities  Act with  respect  to the sale or other
         disposition  of  all  Warrant  Shares  covered  by  such   registration
         statement;

                  (c)  furnish to the Holder a suitable  number of copies of all
         preliminary and final  prospectuses to enable the Holder to comply with
         the requirements of the Securities Act, and such other documents as the
         Holder may reasonably request in order to facilitate the public sale or
         other disposition of the Warrant Shares;

                  (d) use its best  efforts to  register  or qualify the Warrant
         Shares covered by such registration  statement under such securities or
         blue sky laws of such  jurisdictions  as the  Holder  shall  reasonably
         request  and  where  registration  or  qualification  will not  involve
         unreasonable expense or delay and provided,  however,  that the Company
         will not have to  register  or  qualify  in any  state in which  solely
         because of such  registration or qualification it would have to qualify
         to do business;  and the Company shall do any and all other  reasonable
         acts and  things  which may be  necessary  or  advisable  to enable the
         Holder  to  consummate  the  public  sale or other  disposition  of the
         Warrant Shares in such jurisdiction;

                  (e) notify the Holder, at any time when a prospectus  relating
         to the Warrant Shares is required to be delivered  under the Securities
         Act  within  the  appropriate  period  mentioned  in clause (b) of this
         Section  4.3,  of the  happening  of any event as a result of which the
         prospectus included in such registration  statement, as then in effect,
         includes  an untrue  statement  of a material  fact or omits to state a
         material  fact  required to be stated  therein or necessary to make the
         statements  therein not  misleading  in the light of the  circumstances
         then existing,  and at the request of the Holder prepare and furnish to
         the  Holder a  reasonable  number of copies  of a  supplement  to or an
         amendment of such prospectus as may be necessary so that, as thereafter
         delivered to the  purchasers  of the Warrant  Shares,  such  prospectus
         shall not include an untrue statement of a material fact or

                                       -3-

<PAGE>

         omit to  state  a  material  fact  required  to be  stated  therein  or
         necessary to make the statements therein not misleading in the light of
         the circumstances then existing; and

                  (f) exercise  its best  efforts to furnish,  at the request of
         the Holder on the date that the  Warrant  Shares are  delivered  to the
         underwriters for sale pursuant to such  registration or, if the Warrant
         Shares are not being sold  through  underwriters,  on the date that the
         registration  statements  with  respect  to  such  Warrant  Shares  are
         declared  effective,  (1) an opinion,  dated such date,  of the counsel
         representing  the  Company  for  the  purposes  of  such  registration,
         addressed to the Holder,  stating that such registration  statement has
         become  effective  under the Securities Act and that (i) to the best of
         the  knowledge  of  such  counsel,   no  stop  order   suspending   the
         effectiveness  thereof  has been  issued  and no  proceedings  for that
         purpose have been instituted or are pending or  contemplated  under the
         Securities   Act;  (ii)  the   registration   statement,   the  related
         prospectus, and each amendment or supplement thereto, comply as to form
         in all material  respects with the  requirements  of the Securities Act
         and the applicable  rules and regulations of the Commission  thereunder
         (except  that such  counsel  need  express no  opinion as to  financial
         statements and other financial data contained therein);  and (iii) such
         counsel has no reason to believe that either the registration statement
         or the prospectus, or any amendment or supplement thereto, contains any
         untrue  statement of a material  fact or omits to state a material fact
         required  to be stated  therein  or  necessary  to make the  statements
         therein  not  misleading;  and (2) a letter  dated such date,  from the
         independent  certified public accountants of the Company,  stating that
         they are independent certified public accountants within the meaning of
         the  Securities  Act and the rules and  regulations  of the  Commission
         thereunder and that in the opinion of such  accountants,  the financial
         statements  and other  financial  data of the  Company  included in the
         registration   statement  or  the  prospectus,   or  any  amendment  or
         supplement thereof, comply as to form in all material respects with the
         applicable accounting  requirements of the Securities Act and the rules
         and  regulations  of the  Commission  thereunder.  Such letter from the
         independent  certified public accountants shall additionally cover such
         other financial matters (including information as to periods ending not
         more than five  business  days prior to the date of such letter) as the
         Holder may reasonably request.

         If  the  Holder  exercises  its  rights  to  have  the  Warrant  Shares
registered,  it is understood  that the Holder shall furnish to the Company such
information  regarding  the  securities  held by it and the  intended  method of
disposition  thereof as the  Company  shall  reasonably  request and as shall be
required in connection with the action to be taken by the Company.

         4.4  All  Registration   Expenses   incurred  in  connection  with  any
registration pursuant to this Warrant Certificate shall be borne by the Company.
All  Selling  Expenses  in  connection  with any  registration  pursuant to this
Warrant Certificate shall be borne by the Holder.

         For purposes of Section  4.4,  all expenses  incurred by the company in
complying with Section 4.3, including,  without limitation, all registration and
filing fees,  fees and expenses of complying with  securities and blue sky laws,
printing  expenses,  and fees and  disbursements  of counsel and of  independent
public  accountants for the Company (including the expense of any special audits
in  connection  with any such  registration),  are herein  called  "Registration
Expenses",

                                       -4-

<PAGE>

and all underwriting discounts and selling commissions applicable to the Warrant
Shares  covered  by any such  registration  and all fees  and  disbursements  of
counsel for the Holder are herein called "Selling Expenses".

         4.5 In the event of any  registration  of any Warrant  Shares under the
Securities Act pursuant to this Warrant Certificate, the Company shall indemnify
and hold  harmless the Holder,  each  underwriter  of such shares,  if any, each
broker,  and any other person, if any, who controls any of the foregoing persons
within the meaning of the Securities Act, against any losses, claims, damages or
liabilities,  joint or several, to which any of the foregoing persons may become
subject under the Securities Act or otherwise,  insofar as such losses,  claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon an  untrue  statement  or  alleged  untrue  statement  of a  material  fact
contained  in any  registration  statement  under which the Warrant  Shares were
registered  under  the  Securities  Act,  any  preliminary  prospectus  or final
prospectus  contained therein,  or any amendment or supplement  thereto,  or any
document  incident  to  registration  or  qualification  of any  Warrant  Shares
pursuant  to  paragraph  4.3(d)  above,  or arise out of or are  based  upon the
omission or alleged  omission to state  therein a material  fact  required to be
stated  therein or necessary to make the  statements  therein not misleading or,
with respect to any prospectus, necessary to make the statements therein, in the
light of the  circumstances  under which they were made, not misleading,  or any
violation by the Company of the Securities  Act or state  securities or blue sky
laws  applicable  to the Company and relating to action or inaction  required of
the  company  in  connection   with  such   registration   or   registration  or
qualification  under such state securities or blue sky laws; and shall reimburse
the Holder and such underwriter,  broker or other person acting on behalf of the
Holder  and each such  controlling  person  for any legal or any other  expenses
reasonably incurred by any of them in connection with investigating or defending
any such loss, claim, damage, liability or action;  provided,  however, that the
Company  shall not be liable in any such case to the extent  that any such loss,
claim,  damage,  or liability arises out of or is based upon an untrue statement
or alleged  untrue  statement or omission or alleged  omission  made in reliance
upon and in conformity with written  information  furnished to the Company in an
instrument duly executed by the Holder or such underwriter  specifically for use
in the preparation  thereof.  The indemnity  agreement set forth in this Section
4.5,  insofar as it  relates  to any such  omission,  alleged  omission,  untrue
statement or alleged  untrue  statement  made in a  preliminary  prospectus  but
eliminated or remedied in the final  prospectus,  shall not inure to the benefit
of any of the  beneficiaries  named in this Section 4.5 whose  responsibility it
was to  send,  furnish  or  give a copy  of the  final  prospectus  to a  person
asserting a claim for which  indemnification is sought (the "Claimant") unless a
copy of the final prospectus was so sent,  furnished or given to the Claimant at
or prior to the time such action is required by the Act.

         Before  Warrant  Shares  held or  purchasable  by the  Holder  shall be
included in any registration  pursuant to this Warrant  Certificate,  the Holder
and any underwriter acting on its behalf shall have agreed to indemnify and hold
harmless  (in the  same  manner  and to the  same  extent  as set  forth  in the
preceding paragraph) the Company,  each director of the Company, each officer of
the  Company  who shall  sign such  registration  statement  and any  person who
controls the Company within the meaning of the  Securities  Act, with respect to
any failure of the Holder or such underwriter to comply with all laws, rules and
regulations  in  connection  with the offer and sale of Warrant  Shares,  or any
statement  or  omission  from  such  registration  statement,   any  preliminary
prospectus or final prospectus contained therein, or any amendment or supplement

                                       -5-

<PAGE>

thereto,  if such  statement  or  omission  was  made in  reliance  upon  and in
conformity  with written  information  furnished to the Company in an instrument
duly  executed  by the Holder or such  underwriter  specifically  for use in the
preparation  of  such  registration  statement,  preliminary  prospectus,  final
prospectus or amendment or supplement.

         Promptly  after  receipt  by an  indemnified  party  of  notice  of the
commencement  of any  action  involving  a claim  referred  to in the  preceding
paragraphs  of this  Section 4.5,  such  indemnified  party will,  if a claim in
respect thereof is to be made against an indemnifying party, give written notice
to the indemnifying  party of the commencement of such action.  In case any such
action is brought against an indemnified  party, the indemnifying  party will be
entitled to participate in and to assume the defense  thereof,  jointly with any
other indemnifying party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such indemnified party, and after notice from
the indemnifying  party to such  indemnified  party of its election so to assume
the  defense  thereof,  the  indemnifying  party  will  not be  liable  to  such
indemnified party for any legal or other expenses  subsequently  incurred by the
latter in connection with the defense thereof.

5.       Reservation of Warrant Shares

         The  Company  covenants  that it will at all  times  reserve  and  keep
available out of its  authorized  Common Stock,  solely for the purpose of issue
upon  exercise of the  Warrants,  such number of shares of Common Stock as shall
then be issuable  upon the  exercise of all  outstanding  Warrants.  The Company
covenants  that all shares of Common Stock which shall be issuable upon exercise
of  the  Warrants   shall  be  duly  and  validly  issued  and  fully  paid  and
non-assessable  and free from all taxes,  liens and charges  with respect to the
issue thereof.

6.       Loss or Mutilation

         Upon receipt by the Company of reasonable  evidence of the ownership of
and the loss, theft,  destruction or mutilation of any Warrant  Certificate and,
in the case of loss, theft or destruction,  of indemnity reasonably satisfactory
to the Company,  or, in the case of mutilation,  upon surrender and cancellation
of the mutilated Warrant  Certificate,  the Company shall execute and deliver in
lieu thereof a new Warrant Certificate representing an equal number of Warrants.

7.       Adjustment of Purchase Price and Number of Warrant Shares Deliverable

         7.1 The  Purchase  Price and the  number  of  shares  of  Common  Stock
purchasable pursuant to this Warrant shall be subject to adjustment from time to
time as hereinafter  set forth in this Article 7. Whenever  reference is made in
this Article 7 to the issue or sale of shares of Common Stock, or simply shares,
such term shall mean any stock of any class of the Company other than  preferred
stock with a fixed limit on dividends and a fixed amount payable in the event of
any  voluntary  or  involuntary  liquidation,  dissolution  or winding up of the
Company.  The shares  issuable  upon  exercise of the Warrants  shall however be
shares  of  Common  Stock  of the  Company,  par  value  $0.001  per  share,  as
constituted at the date hereof, except as otherwise provided in Sections 7.3 and
7.4.

                                       -6-

<PAGE>

         7.2 In case  the  Company  shall  at any time  change  as a  whole,  by
subdivision or  combination in any manner or by the making of a stock  dividend,
the number of  outstanding  shares  into a different  number of shares,  with or
without  par value,  (i) the number of shares  which  immediately  prior to such
change the holder of each Warrant shall have been entitled to purchase  pursuant
to this Warrant  shall be increased  or  decreased in direct  proportion  to the
increase  or  decrease,  respectively,  in  the  number  of  shares  outstanding
immediately  prior  to such  change,  and  (ii) the  Purchase  Price  in  effect
immediately  prior to such change  shall be  increased  or  decreased in inverse
proportion to such increase or decrease in the number of such shares outstanding
immediately  prior to such  change.  For the purpose of this  Section  7.2,  the
number of shares  outstanding  at any given time shall not include shares in the
treasury of the Company.

         7.3 In case of any capital  reorganization or any  reclassification  of
the capital  stock of the Company or in case of the  consolidation  or merger of
the Company with another corporation,  or in case of any sale, transfer or other
disposition  to another  corporation of all or  substantially  all the property,
assets,  business and good will of the Company, the holder of each Warrant shall
thereafter  be  entitled  to  purchase  (and  it  shall  be a  condition  to the
consummation  of  any  such  reorganization,  reclassification,   consolidation,
merger, sale, transfer or other disposition that appropriate  provision shall be
made so that such holder shall  thereafter be entitled to purchase) the kind and
amount of shares of stock and other  securities and property  receivable in such
transaction  which a  shareholder  receives who holds the number of shares which
the Warrant  entitled the holder to purchase  immediately  prior to such capital
reorganization,  reclassification of capital stock, consolidation, merger, sale,
transfer  or other  disposition;  and in any such case  appropriate  adjustments
shall  be made in the  application  of the  provisions  of this  Article  7 with
respect to rights and interests  thereafter of the holder of the Warrants to the
end that the  provisions of this Article 7 shall  thereafter be  applicable,  as
nearly  as  reasonably  may be, in  relation  to any  shares  or other  property
thereafter purchasable upon the exercise of the Warrants.

         7.4 In the event the Company  shall  declare a dividend upon the Common
Stock payable otherwise than out of earnings or earned surplus or otherwise than
in shares of Common  Stock or in stock or  obligations  directly  or  indirectly
convertible  into or  exchangeable  for such shares,  the holder of each Warrant
shall, upon exercise of the Warrant, be entitled to purchase, in addition to the
number of shares deliverable upon such exercise,  against payment of the Warrant
Price  therefor  but without  further  consideration,  the cash,  stock or other
securities  or property  which the holder of the Warrant  would have received as
dividends  (otherwise  than out of such earnings or earned surplus and otherwise
than in shares or in obligations  convertible  into or  exchangeable  for Common
Stock) if continuously since the date hereof such holder (i) had been the holder
of record of the number of shares  deliverable  upon such  exercise and (ii) had
retained all dividends in stock or other  securities  (other than shares or such
convertible or exchangeable  stock or obligations) paid or payable in respect of
said  number of shares or in respect of any such  stock or other  securities  so
paid or payable as such dividends.

         7.5 No  certificate  for  fractional  shares  shall be issued  upon the
exercise of the  Warrants,  but in lieu thereof the Company  shall  purchase any
such fractional interest calculated to the nearest cent.

                                       -7-

<PAGE>

         7.6  Whenever the Purchase  Price is adjusted as herein  provided,  the
Company shall forthwith deliver to each Warrant holder a statement signed by the
President of the Company and by its Treasurer or Secretary  stating the adjusted
Purchase  Price and  number  of shares  determined  as  herein  specified.  Such
statement shall show in detail the facts requiring such adjustment,  including a
statement of the consideration  received by the Company for any additional stock
issued.

         7.7      In the event at any time:

                  (i) The Company  shall pay any dividend  payable in stock upon
                  its Common  Stock or make any  distribution  (other  than cash
                  dividends) to the holders of its Common Stock; or

                  (ii) The Company shall offer for  subscription pro rata to the
                  holders of its Common Stock any additional  shares of stock of
                  any class or any other rights; or

                  (iii) The Company shall effect any capital  reorganization  or
                  any  reclassification  of or change in the outstanding capital
                  stock of the Company  (other than a chance in par value,  or a
                  change from par value to no par value, or a change from no par
                  value  to par  value,  or a  change  resulting  solely  from a
                  subdivision  or combination  of  outstanding  shares),  or any
                  consolidation  or  merger,  or any  sale,  transfer  or  other
                  disposition of all or substantially all its property,  assets,
                  business  and good will as an  entirety,  or the  liquidation,
                  dissolution or winding up of the Company; or

                  (iv) The  Company  shall  declare a  dividend  upon its Common
                  Stock payable otherwise than out of earnings or earned surplus
                  or otherwise  than in Common Stock or any stock or obligations
                  directly or indirectly  convertible  into or exchangeable  for
                  Common Stock;

then,  in any such case,  the Company  shall cause at least  thirty  days' prior
notice to be mailed to the  registered  holder of each Warrant at the address of
such holder  shown on the books of the  Company.  Such notice shall also specify
the date on which the books of the Company  shall  close,  or a record be taken,
for such stock dividend,  distribution or  subscription  rights,  or the date on
which  such  reclassification,   reorganization,  consolidation,  merger,  sale,
transfer, disposition,  liquidation, dissolution, winding up or dividend, as the
case may be,  shall take  place,  and the date of  participation  therein by the
holders of shares if any such date is to be fixed, and shall also set forth such
facts with  respect  thereto as shall be  reasonably  necessary  to indicate the
effect of such action on the rights of the holders of the Warrants.

                                       -8-

<PAGE>

8.       Governing Law

         8.1 This  Warrant  Certificate  shall be governed by and  construed  in
accordance with the laws of the State of Delaware.

         IN WITNESS WHEREOF,  the Company has caused this Warrant Certificate to
be duly executed by its officers  thereunto  duly  authorized  and its corporate
seal to be affixed hereon as of the ___ day of _________, ____.

                                                      PREFERRED VOICE, INC.

                                                      BY:
                                                           ---------------------
                                                           Chairman of the Board

Attest:

------------------------
Secretary

                                       -9-

<PAGE>

<TABLE>
<CAPTION>

                                    Schedule to Exhibit 10.1

WARRANT                                                                                                  Piggyback Registration
  NO.            Warrant Holder                      Price      Shares        Expiration Date              Rights Terminology
-------          --------------                      -----      ------        ---------------            -----------------------
<S>       <C>                                        <C>       <C>           <C>                          <C>
  67      Mary Merritt                               $1.00     100,000       January 5, 2001              Within Three (3) Years
  68      G. Ray Miller                              $1.00     200,000       January 5, 2001              Within Three (3) Years
  69      C. H. Fallon                               $1.25      20,000       February 11, 2001            Within Three (3) Years
  70      Capital Growth Fund Ltd.                   $1.25     200,000       February 11, 2001            None
  71      Bisbro Investments Company, Ltd.           $1.25     200,000       November 12, 2000            Before November 12, 2000
  72      Invest, Inc.                               $1.25     100,000       November 12, 2000            Before November 12, 2000
  74      Eugene Starr                               $3.00       5,000       July 19, 2000                Before July 19, 2000
  75      JMG Capital Partners, L.P.                 $1.00      25,000       September 30, 2001           Within Five (5) Years
  76      Triton Capital Investment, Ltd.            $1.00      25,000       September 30, 2001           Within Five (5) Years
  77      Lawrence E. Steinberg                      $1.00     100,000       October 16, 2001             Within Five (5) Years
  78      J. Steven Emerson                          $1.00      50,000       November 25, 2001            Within Five (5) Years
  79      In Touch Solutions, LLC                    $1.00      25,000       December 30, 2000            Within Four (4) Years
  80      Answering Service, Inc.                    $1.00      30,000       December 30, 2000            Within Four (4) Years
  81      Amerivoice Telecommunications, Inc.        $1.00      40,000       December 30, 2000            Within Four (4) Years
  82      Voicenet New Media, Inc.                   $1.00      25,000       December 30, 2000            Within Four (4) Years
  83      Best Voice, Inc.                           $1.00      25,000       December 30, 2000            Within Four (4) Years
  84      Nomis Communications                       $1.00      25,000       December 30, 2000            Within Four (4) Years
  85*     Edwin G. Bowles d/b/a Data Management      $1.00      25,000       February 10, 2001            Within Five (5) Years
                 Services
  86      G. Tyler Runnels                           $0.50      43,000       March 31, 2004               Within Five (5) Years
  87      John B. Davies                             $0.50      50,000       March 31, 2004               Within Five (5) Years
  88      Jacqueline Knapp                           $0.50      75,000       March 31, 2004               Within Five (5) Years
  89      Larry Kupferberg                           $0.50      75,000       March 31, 2004               Within Five (5) Years
  90      G. Ray Miller                              $0.84     250,000       March 31, 2004               Within Five (5) Years
  91      Mary Merritt                               $0.84     250,000       March 31, 2004               Within Five (5) Years
  92      Kathryn Jergens                            $0.84      25,000       March 31, 2004               Within Five (5) Years
<FN>
*        The Warrant Certificate contains an extra provision (Section 2.3) which
         provides  that the Warrant  Holder may only use funds  designated  from
         such Warrant Holder's  deferred  compensation  pool as indicated on the
         books and records of the Company at the time of exercise.
</FN>
</TABLE><PAGE>

                                                                     EXHIBIT 4.3

                             AMENDED AND RESTATED

                    SERIES D AND SERIES E RIGHTS AGREEMENT

     This AMENDED AND RESTATED SERIES D AND SERIES E RIGHTS AGREEMENT (this
"Rights Agreement") is made as of February 7, 2000 by and among Netpliance, Inc.
(the "Corporation"), the holders of the Corporation's Series D Convertible
Preferred Stock ("Series D Preferred") and the holders of the Corporation's
Series E Convertible Preferred Stock ("Series E Preferred" and, together with
the Series D Preferred, the "Shares").  The holders of the Shares are listed on
the signature pages hereto and are referred to collectively herein as the
"Holders".  This Rights Agreement amends, restates, and supercedes entirely the
Series D Rights Agreement dated January 5, 2000 by and among the Corporation and
the holders of the Corporation's Series D Convertible Preferred Stock.

     WHEREAS, the Corporation issued and sold the Series D Preferred to each of
the holders of the Series D Preferred, and the Corporation now wishes to issue
and sell the Series E Preferred to the remaining Holders; and

     WHEREAS, in connection with the issuance and sale of the Shares and in
consideration for the Corporation's sale of Shares pursuant to the Series D
Preferred Stock Purchase Agreement and the Series E Preferred Stock Purchase
Agreement relating to such Shares, the Corporation agreed to grant certain
rights to the Holders as set forth in this Rights Agreement.

     NOW, THEREFORE, the parties hereby agree as follows:

1.   Information Rights.

     1.1   Inspection and Observation. The Corporation will permit each Holder,
           --------------------------
so long as such Holder holds at least 100,000 Shares, as adjusted for any stock
splits, stock dividends, recapitalizations or similar events, or any authorized
representative of such Holder to visit and inspect the properties of the
Corporation, including its corporate and financial records, and to discuss its
business and finances with officers of the Corporation, during normal business
hours following reasonable notice, without interference to the conduct of the
Corporation's business and as often as may be reasonably requested.

     1.2   Delivery of Financial Statements. The Corporation shall deliver to
           --------------------------------
each Holder, so long as such Holder holds at least ninety percent (90%) of the
Shares originally purchased by such Holder:

           (a)   as soon as practicable after the end of each fiscal year, but
in any event within ninety (90) days thereafter, audited, consolidated balance
sheets and statements of operations and cash flow for such fiscal year, prepared
in accordance with generally accepted accounting principles ("GAAP"), except for
the accompanying notes, and setting forth in each case in comparative form the
figures for the previous fiscal year; and

           (b)   within forty-five (45) days of the end of each fiscal quarter
of the Corporation, an unaudited statement of operations and balance sheet for
and as of the end of such

                                       1
<PAGE>

quarter, in reasonable detail and prepared in accordance with GAAP, subject to
year end audit adjustments and the absence of footnotes.

     1.3   Termination of Information Rights.  The covenants set forth in
           ---------------------------------
Section 1.2 shall terminate as to each Holder and be of no further force and
-----------
effect upon the consummation of the sale of securities pursuant to a
registration statement filed by the Corporation under the Securities Act of
1933, as amended (the "Securities Act"), in connection with the initial firm
commitment underwritten offering of its securities to the general public with
gross proceeds to the Corporation of at least $25,000,000 (a "Qualifying Public
Offering").

2.   Composition of Board of Directors.  The holders of the outstanding shares
     ---------------------------------
of Series D Preferred shall have the right to elect or cause to be elected to
the Corporation's Board of Directors one (1) director (the "Series D Director")
and agree to vote all securities of the Corporation over which such holder has
voting control and to take all other Necessary or desirable actions within its
control (whether as a shareholder, director or officer of the Corporation or
otherwise, and including without limitation attendance at meetings in person or
by proxy for purposes of obtaining a quorum and execution of written consents in
lieu of meetings) to elect the designee nominated by US WEST, Inc.  The right
under this Section 2 to designate the Series D Director shall expire upon the
           ---------
earlier of:  (i) such time as less than fifty (50%) of the shares of Series D
Preferred are outstanding and (ii) the consummation of the Corporation's sale of
its Common Stock in a Qualifying Public Offering.

3.   Market Standoff.  Following the effective date of a registration statement
     ---------------
of the Corporation filed under the Securities Act, for the duration specified by
and to the extent requested by the Corporation or an underwriter of the
Corporation's securities, but in no event for a period in excess of 180 days,
each Holder covenants and agrees it shall not directly or indirectly sell, offer
to sell, contract to sell (including, without limitation, any short sale), grant
any option to purchase or otherwise transfer or dispose of the Shares or any
other securities of the Corporation acquired by such Holder; and each Holder
agrees to execute an agreement to such effect if and when requested by the
Corporation; provided, that each officer, director and shareholder who owns more
than five percent (5%) of the Corporation's voting power agrees to be similarly
bound.  In order to enforce the foregoing covenant, the Corporation may impose
stop-transfer instructions with respect to the securities of a Holder (and the
shares or securities of every other person subject to the foregoing restriction)
until the end of such period.

4.   Registration Rights.  The Corporation covenants and agrees as follows:
     -------------------

     4.1   Definitions.  For purposes of this Section 4:
           ------------                       ---------

           (a)   The terms "register," "registered," and "registration" refer to
a registration effected by preparing and filing a registration statement or
similar document in compliance with the Securities Act, and the declaration or
ordering of effectiveness of such registration statement or document;

           (b)   The term "Registrable Securities" means the Common Stock, (i)
issuable or issued upon conversion of the Series D Preferred issued pursuant to
the Series D Preferred Stock Purchase Agreement of dated January 5, 2000
("Series D Purchase Agreement"),

                                       2
<PAGE>

(ii) issuable or issued upon conversion of the Series E Preferred issued
pursuant to the Series E Preferred Stock Purchase Agreement of even date
herewith ("Series E Purchase Agreement") and (iii) any Common Stock of the
Corporation issued as (or issuable upon the conversion or exercise of any
warrant, right or other security which is issued as) a dividend or other
distribution with respect to, or in exchange for or in replacement of, such
Series D Preferred or Series E Preferred, excluding in all cases, however, (A)
any Registrable Securities sold by a person in a transaction in which such
person's rights under this Section 4 are not assigned, (B) any Registrable
Securities sold to or through a broker or dealer or underwriter in a public
distribution or a public securities transaction, or (C) any Registrable
Securities that are eligible for resale under Rule 144(k) promulgated by the
Securities and Exchange Commission (the "SEC") under the Securities Act;

           (c)   The number of shares of "Registrable Securities then
outstanding" shall be determined by the number of shares of Common Stock
outstanding that are, and the number of shares of Common Stock issuable pursuant
to then exercisable or convertible securities that are, Registrable Securities;
and

           (d)   The term "Holder" means any person owning or having the right
to acquire Registrable Securities or any assignee permitted under Section 4.12
                                                                  ------------
hereof.

     4.2   Request for Registration.
           ------------------------

           (a)   If the Corporation shall receive, at any time after the earlier
of (i) January 5, 2003 or (ii) six (6) months after the effective date of the
first registration statement for a public offering of securities of the
Corporation to the general public, a written request from the Holders of
nineteen percent (19%) of the Registrable Securities then outstanding (the
"Initiating Holders") that the Corporation file a registration statement (other
than on Form S-3) under the Securities Act covering the registration of at least
nineteen percent (19%) of the Registrable Securities (or any lesser percentage
if the aggregate proposed offering price to the public (before deduction of
underwriting discounts and commissions) would be at least $5,000,000), then the
Corporation shall, within ten (10) days after the receipt of such request, give
written notice of such request to all Holders and shall, subject to the
limitations set forth below, use commercially reasonable efforts to effect as
soon as practicable the registration under the Act of all Registrable Securities
that the Holders request to be registered in a written request to be given
within thirty (30) days of receipt of such notice by the Corporation.

           (b)   The Corporation is obligated to effect only two (2)
registrations pursuant to Section 4.2 (a).
                          ---------------

           (c)   After the Corporation has qualified for the use of Form S-3, in
addition to the rights contained in Section 4.2(a), the Holders of at least
                                    --------------
nineteen percent (19%) of the Registrable Securities (provided, in any event,
that the aggregate estimated offering price of the shares included in such
registration must be at least $1,000,000) will have the right at any time and
from time to time to request up to two (2) registrations on Form S-3; provided,
                                                                      --------
that the Corporation will not be required to effect a registration on Form S-3
pursuant to this Section 4.2(c) more frequently than once during any period of
                 --------------
12 consecutive months. Such requests

                                       3
<PAGE>

must be in writing and must state the number of Registrable Securities proposed
to be disposed of and the intended method of distribution of such Registrable
Securities by such Holders.

           (d)   Notwithstanding the foregoing, if the Corporation shall furnish
to the Initiating Holders, or the Holders requesting a registration on Form S-3,
requesting a registration pursuant to this Section 4.2 within thirty (30) days
                                           -----------
of receiving such request:  (i) a certificate signed by the President of the
Corporation stating that in the good faith judgment of the Board of Directors of
the Corporation it would be seriously detrimental to the Corporation and its
shareholders for such registration statement to be filed and it is therefore
essential to defer the filing of such registration statement, or (ii) a
certificate signed by the President of the Corporation stating that the
Corporation intends within ninety (90) days after the date of such certificate
to file a registration statement for a public offering of securities of the
Corporation to the general public, the Corporation shall not be obligated to
effect the registration requested pursuant to this Section 4.2; provided,
                                                   -----------  --------
however, that the Corporation shall promptly notify the Initiating Holders, or
-------
the Holders requesting a registration on Form S-3, requesting a registration
pursuant to this Section 4.2 of any decision by the Corporation to abandon or
                 -----------
indefinitely delay such public offering.  The Corporation shall have the right
to defer such filing for up to two (2) periods of not more than ninety (90) days
each after receipt of the request of the Initiating Holders or the Holders
requesting a registration on Form S-3; provided, however, that the Corporation
may not use this right more than once (for a total of up to one hundred eighty
(180) days) in any twelve (12)-month period.

     4.3   Corporation Registration.  If (but without any obligation to do so),
           ------------------------
at any time after the effective date of the Corporation's initial public
offering, the Corporation proposes to register any of its stock or other
securities under the Securities Act in connection with the public offering of
such securities solely for cash (other than a registration relating solely to
the sale of securities to participants in a Corporation stock plan, or a
registration on any form that does not include substantially the same
information as would be required to be included in a registration statement
covering the sale of the Registrable Securities), the Corporation shall, at such
time, promptly give each Holder written notice of such registration.  Upon the
written request of a Holder given within twenty (20) days after mailing of
written notice by the Corporation, the Corporation shall, subject to the
provisions of Section 4.7, use commercially reasonable efforts to cause to be
              -----------
registered under the Securities Act all of the Registrable Securities that such
Holder has requested to be registered.

     4.4   Obligations of the Corporation.  Whenever the Corporation registers
           ------------------------------
under the Securities Act any Registrable Securities in accordance with this

Section 4, the Corporation shall, as expeditiously as reasonably possible:
---------

           (a)   Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its commercially reasonable
efforts to cause such registration statement to become effective, and, upon the
request of a Holder, keep such registration statement effective until the
earlier of ninety (90) days after the effective date and the day the
distribution described in the registration statement has been completed.

           (b)   Prepare and file with the SEC such amendments and supplements
to such registration statement and the prospectus used in connection with such
registration statement as

                                       4
<PAGE>

may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration
statement.

           (c)   Furnish to Holders such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as it may reasonably request in order
to facilitate the disposition of Registrable Securities owned by it.

           (d)   Use its best efforts to register and qualify the securities
covered by such registration statement under such other securities or blue sky
laws of such jurisdictions as shall be reasonably requested by a Holder,
provided that the Corporation shall not be required in connection therewith or
as a condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions, excluding any consent to
service of process required by such securities or blue sky laws.

           (e)   In the event of any underwritten public offering, enter into
and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Any Holder, if
participating in such underwriting, shall also enter into and perform its
obligations under such an agreement.

           (f)   Notify Holders if covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the
Securities Act of the happening of any event as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing.

     4.5   Furnish Information.  It shall be a condition precedent to the
           -------------------
obligations of the Corporation to take any action pursuant to this Section 4
                                                                   ---------
with respect to the Registrable Securities of a Holder that such Holder shall
furnish to the Corporation such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such securities
as shall be required to effect the registration of such Holder's Registrable
Securities.

     4.6   Expenses of Corporation Registration.  The Corporation shall bear and
           ------------------------------------
pay all expenses incurred in connection with any registration, filing or
qualification of Registrable Securities with respect to the registrations
pursuant to Section 4 for Holders, including (without limitation) all
            ---------
registration, filing, and qualification fees, printers and accounting fees
relating or apportionable thereto, and the reasonable fees and disbursements of
one counsel for the Holders collectively (not to exceed $10,000 in the
aggregate), but excluding underwriting discounts and commissions relating to
Registrable Securities.

     4.7   Underwriting Requirements.
           -------------------------

           (a)   The Holders under Section 4.2 must distribute the Registrable
                                   -----------
Securities covered by their request by means of a public offering underwritten
by a reputable national or regional underwriter.  The right of any Holder to
include its Registrable Securities in such registration under Section 4.2 shall
                                                              -----------
be conditioned upon such Holder's participation in such

                                       5
<PAGE>

underwriting and the inclusion of such Holder's Registrable Securities in the
underwriting to the extent provided herein. All Holders proposing to distribute
their Registrable Securities through such underwriting shall (together with the
Corporation as provided in Section 4.4(e)) enter into an underwriting agreement
in customary form with the underwriter or underwriters selected for such
underwriting by a majority in interest of the Holders and reasonably acceptable
to the Corporation. Notwithstanding any other provisions of Section 4.2, if the
underwriter advises the Holders in writing that marketing factors require a
limitation of the number of shares to be underwritten, then the Initiating
Holders shall so advise all Holders of Registrable Securities which would
otherwise have been underwritten pursuant to Section 4.2, and the number of
shares of Registrable Securities that may be included in the registration shall
be apportioned first pro rata among the selling Holders, including the
Initiating Holders, according to the total amount of Registrable Securities held
by such Holders at the time of registration, then to the Corporation and then
pro rata among any other selling shareholders according to the total amount of
securities otherwise entitled to be included therein owned by each such selling
shareholder, or in such other proportions as shall mutually be agreed to by such
selling shareholders.

           (b)   In connection with any offering involving an underwriting of
shares being issued by the Corporation, the Corporation shall not be required
under Section 4.3 to include any of the Holders' securities in such underwriting
      -----------
unless such Holder accepts the terms of the underwriting as agreed upon between
the Corporation and the underwriters selected by it (or by other persons
entitled to select the underwriters), and then only in such quantity as will
not, in the opinion of the underwriters, jeopardize the success of the offering
by the Corporation.  If the underwriters advise the Corporation that marketing
factors require a limitation of the number of shares to be underwritten, then
the number of shares that may be included in the underwriting shall be allocated
first to the Corporation, which shall have priority as to registration,
placement, allocation and otherwise in such event, and then pro rata among the
selling Holders according to the total amount of Registrable Securities held by
such Holders at the time of such registration, and then among all other holders
of shares to be underwritten.  For purposes of apportionment, Holders and any
selling shareholder that is a partnership or corporation, the partners, retired
partners and shareholders of such Holder, or the estates and family members of
any such partners and retired partners and any trusts for the benefit of any of
the foregoing persons shall be deemed to be a single "selling shareholder," and
any pro rata reduction with respect to such "selling shareholder" shall be based
upon the aggregate amount of shares carrying registration rights owned by all
entities and individuals included in such "selling shareholder," as defined in
this sentence.  In no event will shares of any other selling shareholders be
included in any registration which would reduce the number of shares which may
be included by the Holders without the written consent of the Holders of at
least a majority of the Registrable Securities included in such registration.

     4.8   Delay of Registration.  Holders shall not have any right to obtain or
           ---------------------
seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 4.
                                         ---------

     4.9   Indemnification. In the event any Registrable Securities are included
           ---------------
in a registration statement under this Section 4:
                                       ---------

                                       6
<PAGE>

           (a)   To the extent permitted by law, the Corporation will indemnify
and hold harmless each Holder, any underwriter (as defined in the Securities
Act) for such Holder and each person, if any, who controls a Holder or
underwriter within the meaning of the Securities Act or the Securities Exchange
Act of 1934, amended (the "1934 Act"), against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject under the
Securities Act, the 1934 Act or other federal, state or provincial law, insofar
as such losses, claims, damages, or liabilities (or actions in respect thereof)
arise out of or are based upon any of the following statements, omissions or
violations (collectively a "Violation"): (i) any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Corporation of the Securities Act, the 1934 Act, any state
securities law or any rule or regulation promulgated under the Securities Act,
the 1934 Act or any state or provincial securities law; and the Corporation will
pay to a Holder, underwriter or controlling person, as incurred, any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability, or action; provided, however,
that the indemnity agreement contained in this Section 4.9(a) shall not apply to
                                               --------------
amounts paid in settlement of any such loss, claim, damage, liability, or action
if such settlement is effected without the consent of the Corporation, which
consent shall not be unreasonably withheld, conditioned or delayed.

           (b)   To the extent permitted by law, each Holder, severally and not
jointly, will indemnify and hold harmless the Corporation, each of its
directors, each of its officers who has signed the registration statement, each
person, if any, who controls the Corporation within the meaning of the
Securities Act, any underwriter, any other shareholder selling securities in
such registration statement and any controlling person of any such underwriter
or other shareholder, against any losses, claims, damages, or liabilities (joint
or several) to which any of the foregoing persons may become subject, under the
Securities Act, the 1934 Act or other federal, state or provincial law, insofar
as such losses, claims, damages, or liabilities (or actions in respect thereto)
arise out of or are based upon any Violation, in each case to the extent that
such Violation occurs in reliance upon and in conformity with written
information furnished by such Holder expressly for use in such registration
statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto; and such Holder will pay, as
incurred, any legal or other expenses reasonably incurred by any person intended
to be indemnified pursuant to this Section 4.9(b), in connection with
                                   --------------
investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that the indemnity agreement contained in this Section 4.9(b)
                                                                  --------------
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of such
Holder, which consent shall not be unreasonably withheld, conditioned or
delayed; and further provided, that, in no event shall any indemnity under this
Section 4.9(b) exceed the net proceeds from the offering received by such
--------------
Holder.

           (c)   Promptly after receipt by an indemnified party under this
Section 4.9 of notice of the commencement of any action (including any
-----------
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 4.9, deliver to
                                                        -----------
the indemnifying party a written notice of the commencement

                                       7
<PAGE>

thereof and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense thereof if (a) the
indemnifying party acknowledges its obligation to indemnify the indemnified
party for any losses, damages or liabilities resulting from such claim and
provide reasonable evidence to the indemnified party of its financial ability to
satisfy such obligation; (b) the claim does not seek to impose any liability or
obligation on the indemnified party other than for money damages; and (c) the
claim does not relate to the indemnified party's relationship with its customers
or employees. If such conditions are satisfied and the indemnifying party elects
to assume and control the defense of a claim, then (i) the indemnified party
will not be liable for any settlement of such claim effected without the consent
of the indemnified party, which consent will not be unreasonably withheld,
conditioned or delayed; and (ii) the indemnifying party may settle such claim
without the consent of the indemnified party; provided, however, that an
indemnified party shall have the right to retain its own counsel, with the fees
and expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would, in
the opinion of such counsel, be inappropriate due to actual or potential
differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of
any such action, if prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under
this Section 4.9, but the omission so to deliver written notice to the
     -----------
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 4.9.
                                            -----------

           (d)   If the indemnification provided for in this Section 4.9 is held
                                                             -----------
by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, liability, claim, damage or expense referred to
therein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or expense
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense as well as any other relevant equitable
considerations; provided, that, in no event shall any contribution by a Holder
under this Section 4.9(d) exceed the net proceeds from the offering received by
           --------------
a Holder, except in the case of willful fraud by a Holder. The relative fault of
the indemnifying party and of the indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission to state a material fact relates to
information was supplied by the indemnifying party or by the indemnified party
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

           (e)   Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control. Notwithstanding the foregoing, no Holder shall be
required to participate in a registration pursuant to Section 4.3 which would
                                                      -----------
require it to execute an underwriting agreement in connection with a
registration that imposes indemnification or contribution obligations on such
Holder more onerous than those imposed

                                       8
<PAGE>

hereunder; provided, however, that the Corporation shall not be deemed to breach
           --------  -------
the provisions of Section 4.3 if a Holder is not permitted to participate in a
                  -----------
registration on account of such Holder's refusal to execute an underwriting
agreement on the basis of this Section 4.9(e).
                               --------------

           (f)   The obligations of the Corporation and Holders under this
Section 4.9 shall survive the completion of any offering of Registrable
-----------
Securities in a registration statement under this Section 4 and otherwise.
                                                  ---------

     4.10  Reports Under Securities Exchange Act of 1934.  With a view to making
           ---------------------------------------------
available to the Holders the benefits of Rule 144 promulgated under the
Securities Act and any other rule or regulation of the SEC that may at any time
permit Holders to sell securities of the Corporation to the public without
registration, the Corporation agrees to use its best efforts to:

           (a)   make and keep public information available, as those terms are
understood and defined in SEC Rule 144, at all times after the effective date of
the first registration statement filed by the Corporation for the offering of
its securities to the general public;

           (b)   file with the SEC in a timely manner all reports and other
documents required of the Corporation under the Securities Act and the 1934 Act;
and

           (c)   furnish to each Holder, so long as such Holder owns any
Registrable Securities, forthwith upon request (i) a written statement by the
Corporation that it has complied with the reporting requirements of SEC Rule 144
(at any time after ninety (90) days after the effective date of the first
registration statement filed by the Corporation), the Securities Act and the
1934 Act (at any time after it has become subject to such reporting
requirements), or that it qualifies as a registrant whose securities may be
resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of
the most recent annual or quarterly report of the Corporation and such other
reports and documents so filed by the Corporation, and (iii) such other
information as may be reasonably requested in availing a Holder of any rule or
regulation of the SEC which permits the selling of any such securities without
registration or pursuant to such form.

     4.11  Termination of Registration Rights.  Holders shall not be entitled to
           ----------------------------------
exercise any right provided for in this Section 4 when such Holder can sell all
                                        ---------
of such Holder's Registrable Securities in a ninety (90) day period pursuant to
Rule 144 promulgated under the Securities Act.

     4.12  Assignment of Rights.  The right to cause the Corporation to register
           --------------------
Registrable Securities pursuant to this Section 4 may be assigned (but only with
                                        ---------
all related obligations) by a Holder to a transferee of at least 100,000 shares
of Registrable Securities, provided the Corporation is, within a reasonable time
                           --------
after such transfer, furnished with written notice of the name and address of
such transferee or assignee and the securities with respect to which such
registration rights are being assigned; provided, further, that such assignment
                                        --------  -------
shall be effective only if (i) the transferee agrees to be bound by the terms
hereof and (ii) immediately following such transfer the further disposition of
such securities by the transferee or assignee is restricted under the Securities
Act.

                                       9
<PAGE>

5.   Miscellaneous Provisions.
     ------------------------

     5.1   Waivers and Amendments. Any term of this Agreement may be amended and
           ----------------------
the observance of any term of this Agreement may be waived (either generally or
in a particular instance and either retroactively or prospectively), only with
the written consent of the Corporation and each Holder. Any amendment or waiver
effected in accordance with this Section 5.1 shall be binding upon Holders and
                                 -----------
the Corporation.

     5.2   Notices.  All notices and other communications required or permitted
           -------
hereunder shall be in writing and, except as otherwise noted herein, shall be
deemed effectively given upon personal delivery, delivery by nationally
recognized courier or upon deposit with the United States Post Office or Canada
Post, (by first class mail, postage prepaid) addressed as follows:

           (a)   if to the Corporation, to:

                 Netpliance, Inc.
                 7600A N. Capital of Texas Highway
                 Austin, Texas 78731
                 Attention:  Jim Cahill, Vice President and General Counsel
                 Fax:  (512) 493-8499

           with a copy to:

                 Hughes & Luce, L.L.P.
                 1717 Main Street, Suite 2800
                 Dallas, Texas 75201
                 Attention:  R. Clayton Mulford
                 Fax:  (214) 939-5849

           (b)   if to any Holder, at the address shown on Schedule A
                                                           ----------
                 attached hereto, marked for attention as there indicated, to:

or to such other address as the party to whom notice is to be given may have
furnished to the other in writing in accordance with the provisions of this
Section 5.2.  Any such notice or communication shall be deemed to have been
-----------
received: (i) in the case of telecopy or personal delivery, on the date of such
delivery; (ii) in the case of nationally-recognized overnight courier, on the
next business day after the date sent; and (iii) if by registered or certified
mail, on the third business day following the date postmarked.

     5.3   Descriptive Headings.  The descriptive headings herein have been
           --------------------
inserted for convenience only and shall not be deemed to limit or otherwise
affect the construction of any provisions hereof.

     5.4   Governing Law.  This Agreement shall be governed by and
           -------------
interpreted under the laws of the State of Texas as applied to agreements among
Texas residents, made and to be performed entirely within the State of Texas.

                                       10
<PAGE>

     5.5   Counterparts.  This Agreement may be executed in one or more
           ------------
counterparts, each of which shall for all purposes be deemed to be an original
and all of which shall constitute the same instrument, but only one of which
need be produced.

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

     5.7   Successors and Assigns.  Except as otherwise expressly provided in
           ----------------------
this Agreement, this Agreement shall benefit and bind the successors, assigns,
heirs, executors and administrators of the parties to this Agreement.

     5.8   Entire Agreement.  This Agreement constitutes the full and entire
           ----------------
understanding and agreement between the parties with regard to the subject
matter of this Agreement.

     5.9   Separability; Severability.  Unless expressly provided in this
           --------------------------
Agreement, the rights of each Holder under this Agreement are several rights,
not rights jointly held with any other Holders.  Any invalidity, illegality or
limitation on the enforceability of this Agreement with respect to any Holder
shall not affect the validity, legality or enforceability of this Agreement with
respect to the other Holders.  If any provision of this Agreement is judicially
determined to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not be affected or impaired.

     5.10  Stock Splits.  All references to numbers of shares in this Agreement
           ------------
shall be appropriately adjusted to reflect any stock dividend, split,
combination or other recapitalization of shares by the Corporation occurring
after the date of this Agreement.

                           [SIGNATURE PAGES FOLLOW]

                                       11
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Rights Agreement on the
day and year first set forth  above.

                             NETPLIANCE, INC.

                             By:
                                ---------------------------------------------
                                 Kent A. Savage,
                                 President and Chief Executive Officer

                             HOLDERS:

                             US WEST INTERNET VENTURES, INC.

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

                             CATALYST INVESTMENTS, L.L.C.

                             By: The Walt Disney Company,
                                 its sole member

                                 By:
                                    -----------------------------------------
                                     Peter E. Murphy,
                                     Senior Executive Vice President and
                                     Chief Strategic Officer

                             SSBC II - NP LLC

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

                             ------------------------------------------------
                             AVIV NEVO
<PAGE>

                             DLJ FUND INVESTMENT PARTNERS II, L.P.

                             By: DLJ LBO Plans Management Corporation

                                 By:
                                    -----------------------------------------
                                     Ivy Dodes,
                                     Vice President

                             DLJ PRIVATE EQUITY EMPLOYEES FUND, L.P.

                             By: DLJ LBO Plans Management Corporation

                                 By:
                                    -----------------------------------------
                                     Ivy Dodes,
                                     Vice President

                             DLJ PRIVATE EQUITY PARTNERS FUND, L.P.

                             By: WSW Capital, Inc.

                                 By:
                                    -----------------------------------------
                                     Ivy Dodes,
                                     Vice President

                             DLJ CAPITAL CORPORATION

                             By:
                                ---------------------------------------------
                                 Ivy Dodes,
                                 Vice President

                             THOMSON CONSUMER ELECTRONICS, INC.

                             By:
                                ---------------------------------------------
                             Name:
                                  -------------------------------------------
                             Title:
                                   ------------------------------------------
<PAGE>

                             862686 ALBERTA LTD.

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

                             ROGERS COMMUNICATIONS INC.

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

                             WATERSHED CAPITAL I, L.P.

                             By:  Watershed Capital G.P. I, L.P.
                                  Its General Partner

                                  By: Watershed Capital G.P. I, L.L.C.,
                                      Its General Partner

                                      By:
                                         ------------------------------------
                                         David S. Lundeen,
                                         Managing Member
<PAGE>

                    SCHEDULE A TO SERIES D RIGHTS AGREEMENT

                        Names and Addresses of Holders
                        ------------------------------

1.   US WEST Internet Ventures, Inc.
     1999 Broadway
     Denver, Colorado  80202
     Attn:  Vice President, Business Development
     Facsimile:  (303) 298-0031

     With copy to:

     US WEST, Inc.
     1801 California Street, Suite 5100
     Denver, Colorado  80202
     Attn:  Strategic Transactions Group,
            Law Department
     Facsimile:  (303) 308-0835

2.   Catalyst Investments, L.L.C.
     500 South Buena Vista Street
     Burbank, California  91521
     Attn:  Chief Strategic Officer
     Phone:  (818) 560-1421
     Facsimile:  (818) 846-8726

     With copy to:

     The Walt Disney Company
     500 South Buena Vista Street
     Burbank, California  91521
     Attn:  Corporate Legal
     Phone:  (818) 560-1618
     Facsimile:  (818) 563-3366

3.   SSBC II - NP LLC
     c/o Rizvi Interests, Inc.
     124 West 60th Street, Suite 49A
     New York, New York  10023
     Phone:  (212) 581-0001
     Facsimile:  (212) 246-3770

<PAGE>

4.   Aviv Nevo
     9440 Santa Monica Blvd., Suite 600
     Beverly Hills, California  90067

5.   DLJ Capital Corporation
     277 Park Avenue, 23rd Floor
     New York, New York  10172
     Phone:  (212) 892-3948
     Facsimile:  (212) 892-2689

6.   DLJ Fund Investment Partners II, L.P.
     277 Park Avenue, 23rd Floor
     New York, New York  10172
     Phone:  (212) 892-3948
     Facsimile:  (212) 892-2689

7.   DLJ Private Equity Employees Fund, L.P.
     277 Park Avenue, 23rd Floor
     New York, New York  10172
     Phone:  (212) 892-3948
     Facsimile:  (212) 892-2689

8.   DLJ Private Equity Partners Fund, L.P.
     277 Park Avenue, 23rd Floor
     New York, New York  10172
     Phone:  (212) 892-3948
     Facsimile:  (212) 892-2689

9.   862686 Alberta Ltd.
     c/o Shaw Communications Inc.
     Suite 900, 630 - 3rd Avenue S.W.
     Calgary, Alberta, Canada
     T2P 4L4
     Attn: President
     Facsimile:  (403) 750-4506

     With copy to:

     Attn: General Counsel & Secretary
     Facsimile:  (403) 750-7466

                                      -2-
<PAGE>

10.  Rogers Communications Inc.
     333 Bloor Street East
     Toronto, Ontario, Canada
     Attn: David Miller
     Facsimile: (416) 935-3548

11.  Thomson Consumer Electronics, Inc.
     10330 North Meridian Street
     Indianapolis, Indiana  46290-1024
     Attn: George J. Lawrence, VP and General Counsel
     Facsimile: (317) 587-6727

12.  Watershed Capital I, L.P.
     650 Castro Street, Suite 2000
     Mountain View, California  94041
     Attn: David S. Lundeen
     Facsimile: (650) 404-9425

                                      -3-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}]]