Document:

<PAGE>

                                                                     EXHIBIT 4.4

                                   AMENDMENT
                                    TO THE
                           1995 DIRECTOR OPTION PLAN
                           OF ARTHROCARE CORPORATION

     Pursuant to the authority reserved to the Board of Directors (the "Board")
of ArthroCare Corporation, a corporation organized under the laws of the State
of Delaware (the "Company"), under Section 11(a) of the Company's 1995 Director
Option Plan (the "Plan"), the Board hereby amends the Plan as follows:

     1.  Definitions.  Section 2 of the Plan is amended to add the following
         -----------
definition of "Change of Control" as subsection (r):

         "(r)  "Change of Control" means (i) any consolidation or merger of the
Company with or into any other corporation or other entity or person in which
the stockholders of the Company prior to such consolidation or merger own less
than fifty percent (50%) of the voting power of the Company (or any successor
entity) immediately after such consolidation or merger; or (ii) a sale of all or
substantially all of the assets of the Company."

     2.  Stock Subject to the Plan.  The first sentence of Section 3 of the Plan
         -------------------------
is amended to read in its entirety as follows:

         "Subject to the provisions of Section 10 of the Plan, the maximum
aggregate number of Shares which may be optioned and sold under the Plan is
245,000 (without giving effect to the two-for-one stock split of the Company's
Common Stock approved by the Board on March 24, 2000) Shares (the "Pool") of
Common Stock."

     3.  Administration of and Grants of Options Under the Plan.
         ------------------------------------------------------

         (a)  Subsection 4(a)(ii) is amended to read in its entirety as
follows:  "Each Outside Director who becomes a Director following the date of
this Amendment shall be automatically granted an Option to purchase 25,000
Shares (without giving effect to the two-for-one stock split of the Company's
Common Stock approved by the Board on March 24, 2000) (the "First Option") on
the date on which such person first becomes a Director, whether through election
by the shareholders of the Company or appointment by the Board to fill a
vacancy."

         (b)  Subsection 4(b)(iii) is amended to read in its entirety as
follows:  "Each Outside Director shall be automatically granted an Option to
purchase 7,500 Shares (without giving effect to the two-for-one stock split of
the Company's Common Stock approved by the Board on March 24, 2000) (a
"Subsequent Option") on the date of the Company's Annual Meeting of Shareholders
upon such Outside Director's Re-election, if on such date, he shall have served
on the Board for at least six (6) months."

                                       1

<PAGE>

     4.  Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset
         ----------------------------------------------------------------------
Sale of Change of Control.
-------------------------

         (i) Subsection 10(c) is amended to read in its entirety as follows:

        "(c)  Change of Control.  In the event of a Change of Control, then
              -----------------
(i) with respect to Options held by participants in the Plan whose status as a
Director has not terminated prior to such event, the vesting of such Options
shall be accelerated and made fully exercisable at least ten (10) days prior to
the effective time of the Change of Control (and the Options shall be terminated
if not exercised prior to the effective time of such Change of Control), and
(ii) any other Options outstanding under the Plan shall be terminated if not
exercised prior to the effective time of the Change of Control."

               (ii) The following Subsection 10(d) is added to Section 10 of the
          Plan as follows:

               "(d)  Pooling of Interests Transactions.  Notwithstanding the
                     ---------------------------------
          foregoing, in the event that the Company becomes a party to a
          transaction that is intended to qualify for "pooling of interests"
          accounting treatment and, but for one or more of the provisions of
          this Plan would so qualify, then this Plan shall be interpreted so as
          to preserve such accounting treatment, and to the extent that any
          provision of the Plan would disqualify the transaction from pooling of
          interests accounting treatment, then such provision shall be null and
          void. All determinations to be made in connection with the preceding
          sentence shall be made by the independent accounting firm whose
          opinion with respect to "pooling of interests" treatment is required
          as a condition to the Company's consummation of such transaction."

                    5.  This Amendment shall be submitted for approval at the
          annual meeting of shareholders of the Company scheduled to be held on
          June 5, 2000, or any postponement or adjournment thereof.  Such
          shareholder approval shall be obtained in the degree and manner
          required under applicable state and federal law.

                              * * * * * * * * * *

     I hereby certify that the foregoing Amendment to the Plan was duly adopted
by the Board of Directors of ArthroCare Corporation, effective as of March 24,
2000.

     Executed on this 27 day of July, 2000.

                                    /s/ Michael W. Hall
                                    -------------------
                                    Secretary

                                       2<PAGE>

                                                                    EXHIBIT 4.04
                                                                    ------------

                               EGGHEAD.COM, INC.

                          2000 EQUITY INCENTIVE PLAN

                           As adopted March 13, 2000

          1.       PURPOSE.  The purpose of this Plan is to provide incentives
                   -------
to attract, retain and motivate eligible persons whose present and potential
contributions are important to the success of the Company, its Parent and
Subsidiaries, by offering them an opportunity to participate in the Company's
future performance through awards of Options, Restricted Stock and Stock
Bonuses.  Capitalized terms not defined in the text are defined in Section 23.

          2.       SHARES SUBJECT TO THE PLAN.
                   --------------------------

                   2.1      Number of Shares Available.  Subject to Sections 2.2
                            --------------------------
and 18, the total number of Shares reserved and available for grant and issuance
pursuant to this Plan will be 1,000,000 Shares. Subject to Sections 2.2 and 18
hereof, Shares that: (a) are subject to issuance upon exercise of an Option
granted under this Plan that cease to be subject to such Option for any reason
other than exercise of such Option; (b) are subject to an Award granted under
this Plan, that are forfeited or are repurchased by the Company at the original
issue price; or (c) are subject to any other Award granted under this Plan that
otherwise terminates without Shares being issued, will again be available for
grant and issuance in connection with future Awards under this Plan. At all
times the Company shall reserve and keep available a sufficient number of Shares
as shall be required to satisfy the requirements of all outstanding Options
granted under this Plan and all other outstanding but unvested Awards granted
under this Plan.

                   2.2      Adjustment of Shares.  In the event that the number
                            --------------------
of outstanding Shares is changed by a stock dividend, recapitalization, stock
split, reverse stock split, subdivision, combination, reclassification or
similar change in the capital structure of the Company without consideration,
then (a) the number of Shares reserved for issuance under this Plan, (b) the
Exercise Prices of and number of Shares subject to outstanding Options, and (c)
the number of Shares subject to other outstanding Awards will be proportionately
adjusted, subject to any required action by the Board or the stockholders of the
Company and compliance with applicable securities laws; provided, however, that
                                                        --------  -------
fractions of a Share will not be issued but will either be replaced by a cash
payment equal to the Fair Market Value of such fraction of a Share or will be
rounded up to the nearest whole Share, as determined by the Committee.

          3.       ELIGIBILITY.  Awards may be granted to employees, directors,
                   -----------
consultants, independent contractors and advisors of the Company or any Parent
or Subsidiary of the Company; provided such consultants, contractors and
                              --------
advisors render bona fide services not in connection with the offer and sale of
securities in a capital-raising transaction.  A person may be granted more than
one Award under this Plan.  None of the Shares that are reserved for
<PAGE>

issuance under this Plan may be issued pursuant to Awards granted to the chief
executive officer, the chief operating officer, executive vice presidents,
senior vice presidents or vice presidents of the Company.

          4.      ADMINISTRATION.
                  --------------

                  4.1      Committee Authority.  This Plan will be administered
                           -------------------
by the Committee or by the Board acting as the Committee. Subject to the general
purposes, terms and conditions of this Plan, and to the direction of the Board,
the Committee will have full power to implement and carry out this Plan. Without
limitation, the Committee will have the authority to:

          (a)     construe and interpret this Plan, any Award Agreement and any
                  other agreement or document executed pursuant to this Plan;

          (b)     prescribe, amend and rescind rules and regulations relating to
                  this Plan or any Award;

          (c)     select persons to receive Awards;

          (d)     determine the form and terms of Awards;

          (e)     determine the number of Shares or other consideration subject
                  to Awards;

          (f)     determine whether Awards will be granted singly, in
                  combination with, in tandem with, in replacement of, or as
                  alternatives to, other Awards under this Plan or any other
                  incentive or compensation plan of the Company or any Parent or
                  Subsidiary of the Company;

          (g)     grant waivers of Plan or Award conditions;

          (h)     determine the vesting, exercisability and payment of Awards;

          (i)     correct any defect, supply any omission or reconcile any
                  inconsistency in this Plan, any Award or any Award Agreement;

          (j)     determine whether an Award has been earned; and

          (k)     make all other determinations necessary or advisable for the
                  administration of this Plan.

                  4.2      Committee Discretion.  Any determination made by the
                           --------------------
Committee with respect to any Award will be made in its sole discretion at the
time of grant of the Award or, unless in contravention of any express term of
this Plan or Award, at any later time, and such determination will be final and
binding on the Company and on all persons having an interest in any Award under
this Plan.  The Committee may delegate to one or more officers of the
<PAGE>

Company the authority to grant an Award under this Plan to Participants who are
not Insiders of the Company.

          5.       OPTIONS.  Only nonqualified stock options that do not qualify
                   -------
as incentive stock options within the meaning of Code Section 422(b) may be
granted under this Plan.  The Committee may grant Options to eligible persons
and will determine the number of Shares subject to the Option, the Exercise
Price of the Option, the period during which the Option may be exercised, and
all other terms and conditions of the Option, subject to the following:

                   5.1     Form of Option Grant.  Each Option granted under this
                           --------------------
Plan will be evidenced by an Award Agreement ("Stock Option Agreement") that
will be in such form and contain such provisions (which need not be the same for
each Participant) as the Committee may from time to time approve, and which will
comply with and be subject to the terms and conditions of this Plan.

                   5.2     Date of Grant.  The date of grant of an Option will
                           -------------
be the date on which the Committee makes the determination to grant such Option,
unless otherwise specified by the Committee. The Stock Option Agreement and a
copy of this Plan will be delivered to the Participant within a reasonable time
after the granting of the Option.

                   5.3     Exercise Period.  Options may be exercisable within
                           ---------------
the times or upon the events determined by the Committee as set forth in the
Stock Option Agreement governing such Option; provided, however, that no Option
                                              --------  -------
will be exercisable after the expiration of ten (10) years from the date the
Option is granted. The Committee also may provide for Options to become
exercisable at one time or from time to time, periodically or otherwise, in such
number of Shares or percentage of Shares as the Committee determines.

                   5.4     Exercise Price.  The Exercise Price of an Option
                           --------------
will be determined by the Committee when the Option is granted. Payment for the
Shares purchased may be made in accordance with Section 8 of this Plan.

                   5.5     Method of Exercise.  Options may be exercised only by
                           ------------------
delivery to the Company of a written stock option exercise agreement  (the
"Exercise Agreement") in a form approved by the Committee (which need not be the
same for each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price for the number of Shares being
purchased.

                   5.6     Termination.  Notwithstanding the exercise periods
                           -----------
set forth in the Stock Option Agreement, exercise of an Option will always be
subject to the following:

          (a)     If the Participant is Terminated for any reason except death
                  or Disability,
<PAGE>

                  then the Participant may exercise such Participant's Options
                  only to the extent that such Options would have been
                  exercisable upon the Termination Date no later than three (3)
                  months after the Termination Date (or such shorter or longer
                  time period not exceeding five (5) years as may be determined
                  by the Committee), but in any event, no later than the
                  expiration date of the Options.

          (b)     If the Participant is Terminated because of Participant's
                  death or Disability (or the Participant dies within three (3)
                  months after a Termination other than because of Participant's
                  death or Disability), then Participant's Options may be
                  exercised only to the extent that such Options would have been
                  exercisable by Participant on the Termination Date and must be
                  exercised by Participant (or Participant's legal
                  representative or authorized assignee) no later than twelve
                  (12) months after the Termination Date (or such shorter or
                  longer time period not exceeding five (5) years as may be
                  determined by the Committee), but in any event no later than
                  the expiration date of the Options.

          (c)     Notwithstanding the provisions in paragraph 5.6(a) above, if a
                  Participant is terminated for Cause, neither the Participant,
                  the Participant's estate nor such other person who may then
                  hold the Option shall be entitled to exercise any Option with
                  respect to any Shares whatsoever, after termination of
                  service, whether or not after termination of service the
                  Participant may receive payment from the Company or Subsidiary
                  for vacation pay, for services rendered prior to termination,
                  for services rendered for the day on which termination occurs,
                  for salary in lieu of notice, or for any other benefits.  In
                  making such determination, the Board shall give the
                  Participant an opportunity to present to the Board evidence on
                  his behalf.  For the purpose of this paragraph, termination of
                  service shall be deemed to occur on the date when the Company
                  dispatches notice or advice to the Participant that his
                  service is terminated.

                  5.7    Limitations on Exercise.  The Committee may specify a
                         -----------------------
reasonable minimum number of Shares that may be purchased on any exercise of an
Option, provided that such minimum number will not prevent Participant from
exercising the Option for the full number of Shares for which it is then
exercisable.

                  5.8    Modifications, Extension or Renewal.  The Committee may
                         -----------------------------------
modify, extend or renew outstanding Options and authorize the grant of new
Options in substitution therefor, provided that any such action may not, without
the written consent of a Participant, impair any of such Participant's rights
under any Option previously granted.  The Committee may reduce the Exercise
Price of outstanding Options without the consent of Participants affected by a
written notice to them; provided, however, that the Exercise Price may not be
                        --------  -------
reduced below the minimum Exercise Price that would be permitted under Section
5.4 of this Plan for Options granted on the date the action is taken to reduce
the Exercise Price.
<PAGE>

          6.      RESTRICTED STOCK.  A Restricted Stock Award is an offer by
                  ----------------
the Company to sell to an eligible person Shares that are subject to
restrictions.  The Committee will determine to whom an offer will be made, the
number of Shares the person may purchase, the price to be paid (the "Purchase
Price"), the restrictions to which the Shares will be subject, and all other
terms and conditions of the Restricted Stock Award, subject to the following:

                  6.1    Form of Restricted Stock Award.  All purchases under a
                         ------------------------------
Restricted Stock Award made pursuant to this Plan will be evidenced by an Award
Agreement ("Restricted Stock Purchase Agreement") that will be in such form
(which need not be the same for each Participant) as the Committee will from
time to time approve, and will comply with and be subject to the terms and
conditions of this Plan.  The offer of Restricted Stock will be accepted by the
Participant's execution and delivery of the Restricted Stock Purchase Agreement
and full payment for the Shares to the Company within thirty (30) days from the
date the Restricted Stock Purchase Agreement is delivered to the person.  If
such person does not execute and deliver the Restricted Stock Purchase Agreement
along with full payment for the Shares to the Company within thirty (30) days,
then the offer will terminate, unless otherwise determined by the Committee.

                  6.2    Purchase Price.  The Purchase Price of Shares sold
                         --------------
pursuant to a Restricted Stock Award will be determined by the Committee on the
date the Restricted Stock Award is granted and may be less than Fair Market
Value, except in the case of a sale to a to a person who directly or by
attribution owns more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any Parent or Subsidiary of the
Company, in which case the Purchase Price will be 100% of the Fair Market Value.
Payment of the Purchase Price may be made in accordance with Section 8 of this
Plan.

                  6.3    Terms of Restricted Stock Awards.  Restricted Stock
                         --------------------------------
Awards shall be subject to such restrictions as the Committee may impose.  These
restrictions may be based upon completion of a specified number of years of
service with the Company or upon completion of the performance goals as set out
in advance in the Participant's individual Restricted Stock Purchase Agreement.
Restricted Stock Awards may vary from Participant to Participant and between
groups of Participants.  Prior to the grant of a Restricted Stock Award, the
Committee shall:  (a) determine the nature, length and starting date of any
Performance Period for the Restricted Stock Award; (b) select from among the
Performance Factors to be used to measure performance goals, if any; and (c)
determine the number of Shares that may be awarded to the Participant.  Prior to
the payment of any Restricted Stock Award, the Committee shall determine the
extent to which such Restricted Stock Award has been earned.  Performance
Periods may overlap and Participants may participate simultaneously with respect
to Restricted Stock Awards that are subject to different Performance Periods and
having different performance goals and other criteria.

                  6.4    Termination During Performance Period.  If a
                         -------------------------------------
Participant is Terminated during a Performance Period for any reason, then such
Participant will be entitled to payment (whether in Shares, cash or otherwise)
with respect to the Restricted Stock Award only
<PAGE>

to the extent earned as of the date of Termination in accordance with the
Restricted Stock Purchase Agreement, unless the Committee will determine
otherwise.

          7.      STOCK BONUSES.
                  -------------

                  7.1    Awards of Stock Bonuses.  A Stock Bonus is an award of
                         -----------------------
Shares (which may consist of Restricted Stock) for services rendered to the
Company or any Parent or Subsidiary of the Company.  A Stock Bonus may be
awarded for past services already rendered to the Company, or any Parent or
Subsidiary of the Company pursuant to an Award Agreement (the "Stock Bonus
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan.  A Stock Bonus may
be awarded upon satisfaction of such performance goals as are set out in advance
in the Participant's individual Award Agreement (the "Performance Stock Bonus
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan.  Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company, Parent or Subsidiary and/or
individual performance factors or upon such other criteria as the Committee may
determine.

                  7.2    Terms of Stock Bonuses.  The Committee will determine
                         ----------------------
the number of Shares to be awarded to the Participant.  If the Stock Bonus is
being earned upon the satisfaction of performance goals pursuant to a
Performance Stock Bonus Agreement, then the Committee will: (a)  determine the
nature, length and starting date of any Performance Period for each Stock Bonus;
(b) select from among the Performance Factors to be used to measure the
performance, if any; and (c) determine the number of Shares that may be awarded
to the Participant.  Prior to the payment of any Stock Bonus, the Committee
shall determine the extent to which such Stock Bonuses have been earned.
Performance Periods may overlap and Participants may participate simultaneously
with respect to Stock Bonuses that are subject to different Performance Periods
and different performance goals and other criteria.  The number of Shares may be
fixed or may vary in accordance with such performance goals and criteria as may
be determined by the Committee.  The Committee may adjust the performance goals
applicable to the Stock Bonuses to take into account changes in law and
accounting or tax rules and to make such adjustments as the Committee deems
necessary or appropriate to reflect the impact of extraordinary or unusual
items, events or circumstances to avoid windfalls or hardships.

                  7.3    Form of Payment.  The earned portion of a Stock Bonus
                         ---------------
may be paid currently or on a deferred basis with such interest or dividend
equivalent, if any, as the Committee may determine.  Payment may be made in the
form of cash or whole Shares or a combination thereof, either in a lump sum
payment or in installments, all as the Committee will determine.

          8.      PAYMENT FOR SHARE PURCHASES.
                  ---------------------------

                  8.1    Payment.  Payment for Shares purchased pursuant to this
                         -------
Plan may
<PAGE>

be made in cash (by check) or, where expressly approved for the
Participant by the Committee and where permitted by law:

          (a)     by cancellation of indebtedness of the Company to the
                  Participant;

          (b)     by surrender of shares that either:  (1) have been owned by
                  Participant for more than six (6) months and have been paid
                  for within the meaning of SEC Rule 144 (and, if such shares
                  were purchased from the Company by use of a promissory note,
                  such note has been fully paid with respect to such shares); or
                  (2) were obtained by Participant in the public market;

          (c)     by tender of a full recourse promissory note having such terms
                  as may be approved by the Committee and bearing interest at a
                  rate sufficient to avoid imputation of income under Sections
                  483 and 1274 of the Code; provided, however, that Participants
                                            --------  -------
                  who are not employees or directors of the Company will not be
                  entitled to purchase Shares with a promissory note unless the
                  note is adequately secured by collateral other than the
                  Shares;

          (d)     by waiver of compensation due or accrued to the Participant
                  for services rendered;

          (e)     with respect only to purchases upon exercise of an Option, and
                  provided that a public market for the Company's stock exists:

                   (1)     through a "same day sale" commitment from the
                           Participant and a broker-dealer that is a member of
                           the National Association of Securities Dealers (an
                           "NASD Dealer") whereby the Participant irrevocably
                           elects to exercise the Option and to sell a portion
                           of the Shares so purchased to pay for the Exercise
                           Price, and whereby the NASD Dealer irrevocably
                           commits upon receipt of such Shares to forward the
                           Exercise Price directly to the Company; or

                   (2)     through a "margin" commitment from the Participant
                           and a NASD Dealer whereby the Participant irrevocably
                           elects to exercise the Option and to pledge the
                           Shares so purchased to the NASD Dealer in a margin
                           account as security for a loan from the NASD Dealer
                           in the amount of the Exercise Price, and whereby the
                           NASD Dealer irrevocably commits upon receipt of such
                           Shares to forward the Exercise Price directly to the
                           Company; or

          (f)     by any combination of the foregoing.

                  8.2    Loan Guarantees.  The Committee may help the
                         ---------------
Participant pay for Shares purchased under this Plan by authorizing a guarantee
by the Company of a third-party loan to the Participant.
<PAGE>

          9.      WITHHOLDING TAXES.
                  -----------------

                  9.1    Withholding Generally.  Whenever Shares are to be
                         ---------------------
issued in satisfaction of Awards granted under this Plan, the Company may
require the Participant to remit to the Company an amount sufficient to satisfy
federal, state and local withholding tax requirements prior to the delivery of
any certificate or certificates for such Shares. Whenever, under this Plan,
payments in satisfaction of Awards are to be made in cash, such payment will be
net of an amount sufficient to satisfy federal, state, and local withholding tax
requirements.

                  9.2    Stock Withholding.  When, under applicable tax laws, a
                         -----------------
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined.  All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee and be in writing in a form acceptable to the
Committee.

          10.     PRIVILEGES OF STOCK OWNERSHIP.
                  -----------------------------

                  10.1   Voting and Dividends.  No Participant will have any of
                         --------------------
the rights of a stockholder with respect to any Shares until the Shares are
issued to the Participant.  After Shares are issued to the Participant, the
Participant will be a stockholder and have all the rights of a stockholder with
respect to such Shares, including the right to vote and receive all dividends or
other distributions made or paid with respect to such Shares; provided, that if
                                                              --------
such Shares are Restricted Stock, then any new, additional or different
securities the Participant may become entitled to receive with respect to such
Shares by virtue of a stock dividend, stock split or any other change in the
corporate or capital structure of the Company will be subject to the same
restrictions as the Restricted Stock; provided, further, that the Participant
                                      --------  -------
will have no right to retain such stock dividends or stock distributions with
respect to Shares that are repurchased at the Participant's original Purchase
Price pursuant to Section 12.

                  10.2   Financial Statements.  The Company will provide
                         --------------------
financial statements to each Participant prior to such Participant's purchase of
Shares under this Plan, and to each Participant annually during the period such
Participant has Awards outstanding; provided, however, the Company will not be
                                    --------  -------
required to provide such financial statements to Participants whose services in
connection with the Company assure them access to equivalent information.

          11.     TRANSFERABILITY.  Awards granted under this Plan, and any
                  ---------------
interest therein, will not be transferable or assignable by Participant, and may
not be made subject to execution, attachment or similar process, otherwise than
by will or by the laws of descent and
<PAGE>

distribution or as determined by the Committee and set forth in the Award
Agreement. During the lifetime of the Participant an Award will be exercisable
only by the Participant, and any elections with respect to an Award may be made
only by the Participant unless otherwise determined by the Committee and set
forth in the Award Agreement.

          12.     RESTRICTIONS ON SHARES.  At the discretion of the Committee,
                  ----------------------
the Company may reserve to itself and/or its assignee(s) in the Award Agreement
a right to repurchase a portion of or all Unvested Shares held by a Participant
following such Participant's Termination at any time within ninety (90) days
after the later of Participant's Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or cancellation of purchase money
indebtedness, at the Participant's Exercise Price or Purchase Price, as the case
may be.

          13.     CERTIFICATES.  All certificates for Shares or other
                  ------------
securities delivered under this Plan will be subject to such stock transfer
orders, legends and other restrictions as the Committee may deem necessary or
advisable, including restrictions under any applicable federal, state or foreign
securities law, or any rules, regulations and other requirements of the SEC or
any stock exchange or automated quotation system upon which the Shares may be
listed or quoted.

          14.     ESCROW; PLEDGE OF SHARES.  To enforce any restrictions on a
                  ------------------------
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates.  Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant's obligation to the
Company under the promissory note; provided, however, that the Committee may
                                   --------  -------
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of
the Participant's Shares or other collateral.  In connection with any pledge of
the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve.  The
Shares purchased with the promissory note may be released from the pledge on a
pro rata basis as the promissory note is paid.

          15.     EXCHANGE AND BUYOUT OF AWARDS.  The Committee may, at any
                  -----------------------------
time or from time to time, authorize the Company, with the consent of the
respective Participants, to issue new Awards in exchange for the surrender and
cancellation of any or all outstanding Awards.  The Committee may at any time
buy from a Participant an Award previously granted with payment in cash, Shares
(including Restricted Stock) or other consideration, based on such terms and
conditions as the Committee and the Participant may agree.
<PAGE>

          16.     SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.  An Award
                  ----------------------------------------------
will not be effective unless such Award is in compliance with all applicable
federal and state securities laws, rules and regulations of any governmental
body, and the requirements of any stock exchange or automated quotation system
upon which the Shares may then be listed or quoted, as they are in effect on the
date of grant of the Award and also on the date of exercise or other issuance.
Notwithstanding any other provision in this Plan, the Company will have no
obligation to issue or deliver certificates for Shares under this Plan prior to:
(a) obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable; and/or (b) completion of any registration
or other qualification of such Shares under any state or federal law or ruling
of any governmental body that the Company determines to be necessary or
advisable.  The Company will be under no obligation to register the Shares with
the SEC or to effect compliance with the registration, qualification or listing
requirements of any state securities laws, stock exchange or automated quotation
system, and the Company will have no liability for any inability or failure to
do so.

          17.     NO OBLIGATION TO EMPLOY.  Nothing in this Plan or any Award
                  -----------------------
granted under this Plan will confer or be deemed to confer on any Participant
any right to continue in the employ of, or to continue any other relationship
with, the Company or any Parent or Subsidiary of the Company or limit in any way
the right of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

          18.     CORPORATE TRANSACTIONS.
                  ----------------------

                  18.1   Assumption or Replacement of Awards by Successor.  In
                         ------------------------------------------------
the event of (a) a dissolution or liquidation of the Company, (b) a merger or
consolidation in which the Company is not the surviving corporation (other than
a merger or consolidation with a wholly-owned subsidiary, a reincorporation of
the Company in a different jurisdiction, or other transaction in which there is
no substantial change in the stockholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (d) the sale of substantially
all of the assets of the Company, or (e) the acquisition, sale, or transfer of
more than 50% of the outstanding shares of the Company by tender offer or
similar transaction, any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption, conversion or
replacement will be binding on all Participants.  In the alternative, the
successor corporation may substitute equivalent Awards or provide substantially
similar consideration to Participants as was provided to stockholders (after
taking into account the existing provisions of the Awards).  The successor
corporation may also issue, in place of outstanding Shares of the Company held
by the Participant, substantially similar shares or other property subject to
repurchase restrictions no less favorable to the Participant.  In the event such
successor corporation (if any) refuses to assume or substitute Awards, as
provided above,
<PAGE>

pursuant to a transaction described in this Subsection 18.1, the vesting of all
Awards will accelerate and the Options will become exercisable in full prior to
the consummation of such event at such times and on such conditions as the
Committee determines, and if such Options are not exercised prior to the
consummation of the corporate transaction, they shall terminate in accordance
with the provisions of this Plan.

                  18.2   Other Treatment of Awards.  Subject to any greater
                         -------------------------
rights granted to Participants under the foregoing provisions of this Section
18, in the event of the occurrence of any transaction described in Section 18.1,
any outstanding Awards will be treated as provided in the applicable agreement
or plan of merger, consolidation, dissolution, liquidation, or sale of assets.

                  18.3   Assumption of Awards by the Company.  The Company, from
                         -----------------------------------
time to time, also may substitute or assume outstanding awards granted by
another company, whether in connection with an acquisition of such other company
or otherwise, by either; (a) granting an Award under this Plan in substitution
of such other company's award; or (b) assuming such award as if it had been
granted under this Plan if the terms of such assumed award could be applied to
an Award granted under this Plan.  Such substitution or assumption will be
permissible if the holder of the substituted or assumed award would have been
eligible to be granted an Award under this Plan if the other company had applied
the rules of this Plan to such grant.  In the event the Company assumes an award
granted by another company, the terms and conditions of such award will remain
unchanged (except that the exercise price and the number and nature of Shares
           ------
issuable upon exercise of any such option will be adjusted appropriately
pursuant to Section 424(a) of the Code).  In the event the Company elects to
grant a new Option rather than assuming an existing option, such new Option may
be granted with a similarly adjusted Exercise Price.

          19.     ADOPTION.  This Plan became effective on the date on which it
                  --------
was adopted by the Board.

          20.     TERM OF PLAN/GOVERNING LAW.  Unless earlier terminated as
                  --------------------------
provided herein, this Plan will terminate ten (10) years from the date this Plan
is adopted by the Board.  This Plan and all agreements hereunder shall be
governed by and construed in accordance with the laws of the State of
California.

          21.     AMENDMENT OR TERMINATION OF PLAN.  The Board may at any time
                  --------------------------------
terminate or amend this Plan in any respect, including without limitation
amendment of any form of Award Agreement or instrument to be executed pursuant
to this Plan.

          22.     NONEXCLUSIVITY OF THE PLAN.  Neither the adoption of this
                  --------------------------
Plan by the Board, the submission of this Plan to the stockholders of the
Company for approval, nor any provision of this Plan will be construed as
creating any limitations on the power of the Board to adopt such additional
compensation arrangements as it may deem desirable, including, without
limitation, the granting of stock options and bonuses otherwise than under this
Plan, and such arrangements may be either generally applicable or applicable
only in specific cases.
<PAGE>

          23.     DEFINITIONS.  As used in this Plan, the following terms will
                  -----------
have the following meanings:

                  "Award" means any award under this Plan, including any
Option, Restricted Stock or Stock Bonus.

                  "Award Agreement" means, with respect to each Award, the
signed written agreement between the Company and the Participant setting forth
the terms and conditions of the Award.

                  "Board" means the Board of Directors of the Company.

                  "Cause" means the commission of an act of theft, embezzlement,
fraud, dishonesty or a breach of fiduciary duty to the Company or a Parent or
Subsidiary of the Company.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Committee" means the Compensation Committee of the Board.

                  "Company" means Egghead.com, Inc. or any successor
corporation.

                  "Disability" means a disability, whether temporary or
permanent, partial or total, within the meaning of Section 22(e)(3) of the Code,
as determined by the Committee.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Exercise Price" means the price at which a holder of an
Option may purchase the Shares issuable upon exercise of the Option.

                  "Fair Market Value" means, as of any date, the value of a
share of the Company's Series A Common Stock determined as follows:

          (a)     if such Series A Common Stock is then quoted on the Nasdaq
                  National Market, its closing price on the Nasdaq National
                  Market on the date of determination as reported in The Wall
                                                                     --------
                  Street Journal;
                  --------------

          (b)     if such Series A Common Stock is publicly traded and is then
                  listed on a national securities exchange, its closing price on
                  the date of determination on the principal national securities
                  exchange on which the Series A Common Stock is listed or
                  admitted to trading as reported in The Wall Street Journal;
                                                     -----------------------

          (c)     if such Series A Common Stock is publicly traded but is not
                  quoted on the
<PAGE>

                  Nasdaq National Market nor listed or admitted to trading on a
                  national securities exchange, the average of the closing bid
                  and asked prices on the date of determination as reported in
                  The Wall Street Journal; or
                  -----------------------

          (d)     if none of the foregoing is applicable, by the Committee in
                  good faith.

                  "Insider" means an officer or director of the Company or any
other person whose transactions in the Company's Common Stock are subject to
Section 16 of the Exchange Act.

                  "Option" means an award of an option to purchase Shares
pursuant to Section 5.

                  "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if each of such
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

                  "Participant" means a person who receives an Award under this
Plan.

                  "Performance Factors" means the factors selected by the
Committee from among the following measures to determine whether the performance
goals established by the Committee and applicable to Awards have been satisfied:

                  (a)   Net revenue and/or net revenue growth;

                  (b)   Earnings before income taxes and amortization and/or
earnings before income taxes and amortization growth;

                  (c)   Operating income and/or operating income growth;

                  (d)   Net income and/or net income growth;

                  (e)   Earnings per share and/or earnings per share growth;

                  (f)   Total shareholder return and/or total shareholder return
growth;

                  (g)   Return on equity;

                  (h)   Operating cash flow return on income;

                  (i)   Adjusted operating cash flow return on income;

                  (j)   Economic value added; and
<PAGE>

                  (k)  Individual confidential business objectives.

                  "Performance Period" means the period of service determined by
the Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Bonuses.

                  "Plan" means this Egghead.com, Inc. 2000 Equity Incentive
Plan, as amended from time to time.

                  "Restricted Stock Award" means an award of Shares pursuant to
Section 6.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Shares" means shares of the Company's Series A Common Stock
reserved for issuance under this Plan, as adjusted pursuant to Sections 2 and
18, and any successor security.

                  "Stock Bonus" means an award of Shares, or cash in lieu of
Shares, pursuant to Section 7.

                  "Subsidiary" means any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

                  "Termination" or "Terminated" means, for purposes of this Plan
with respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, director, consultant, independent contractor,
or advisor to the Company or a Parent or Subsidiary of the Company. An employee
will not be deemed to have ceased to provide services in the case of (i) sick
leave, (ii) military leave, or (iii) any other leave of absence approved by the
Committee, provided, that such leave is for a period of not more than 90 days,
unless reemployment upon the expiration of such leave is guaranteed by contract
or statute or unless provided otherwise pursuant to formal policy adopted from
time to time by the Company and issued and promulgated to employees in writing.
In the case of any employee on an approved leave of absence, the Committee may
make such provisions respecting suspension of vesting of the Award while on
leave from the employ of the Company or a Subsidiary as it may deem appropriate,
except that in no event may an Option be exercised after the expiration of the
term set forth in the Stock Option Agreement. The Committee will have sole
discretion to determine whether a Participant has ceased to provide services and
the effective date on which the Participant ceased to provide services (the
"Termination Date").

                  "Unvested Shares" means "Unvested Shares" as defined in the
Award Agreement.

                  "Vested Shares" means "Vested Shares" as defined in the Award
Agreement.
<PAGE>

                               EGGHEAD.COM, INC.

                          2000 EQUITY INCENTIVE PLAN

                            STOCK OPTION AGREEMENT
                            ----------------------

          This Stock Option Agreement (this "Agreement") is made and entered
into as of the Date of Grant set forth below (the "Date of Grant") by and
between Egghead.com, Inc., a Delaware corporation (the "Company"), and the
Optionee named below ("Optionee").  Capitalized terms not defined herein shall
have the meaning ascribed to them in the Company's 2000 Equity Incentive Plan
(the "Plan").

Optionee:                     _______________________________________________

Social Security Number:       _______________________________________________

Optionee's Address:           _______________________________________________

                              _______________________________________________

Total Option Shares:          _______________________________________________

Exercise Price Per Share:     _______________________________________________

Date of Grant:                _______________________________________________

Expiration Date:              _______________________________________________
                             (unless earlier terminated under Section 3 hereof)

Type of Stock Option:         Nonqualified Stock Option
                              _______________________________________________

          1.      Grant of Option.  The Company hereby grants to Optionee a
                  ---------------
nonqualified stock option (this "Option") to purchase up to the total number of
shares of Common Stock of the Company set forth above as Total Option Shares
(collectively, the "Shares") at the Exercise Price Per Share set forth above
(the "Exercise Price"), subject to all of the terms and conditions of this
Agreement and the Plan.

          2.      Vesting; Exercise Period.
                  ------------------------

                  2.1    Vesting of Shares.  This Option shall be exercisable as
                         -----------------
it vests.  Subject to the terms and conditions of the Plan and this Agreement,
this Option shall vest and become exercisable as to portions of the Shares as
follows:  (a) this Option shall not be exercisable with respect to any of the
Shares until _________________, (the "First Vesting Date"); (b) if Optionee has
continuously provided services to the Company, or any Parent or Subsidiary of
the Company, then on the First Vesting Date, this Option shall become
exercisable as to _______________% of the Shares; and (c) thereafter this Option
shall become exercisable as to an additional _____________% of the Shares on
each monthly anniversary of the First Vesting Date, provided that Optionee has
continuously provided services to the Company, or any Parent or Subsidiary of
the Company, at all times during the relevant month.   This Option shall
<PAGE>

cease to vest upon Optionee's Termination and Optionee shall in no event be
entitled under this Option to purchase a number of shares of the Company's
Common Stock greater than the "Total Option Shares."

                  2.2    Vesting of Options.  Shares that are vested pursuant to
                         ------------------
the schedule set forth in Section 2.1 hereof are "Vested Shares."  Shares that
are not vested pursuant to the schedule set forth in Section 2.1 hereof are
"Unvested Shares."

                  2.3    Expiration.  This Option shall expire on the Expiration
                         ----------
Date set forth above and must be exercised, if at all, on or before the earlier
of the Expiration Date or the date on which this Option is earlier terminated in
accordance with the provisions of Section 3 hereof.

          3.      Termination.
                  -----------

                  3.1    Termination for Any Reason Except Death, Disability or
                         ------------------------------------------------------
Cause.  If Optionee is Terminated for any reason except Optionee's death,
-----
Disability or Cause, then this Option, to the extent (and only to the extent)
that it is vested in accordance with the schedule set forth in Section 2.1
hereof on the Termination Date, may be exercised by Optionee no later than three
(3) months after the Termination Date, but in any event no later than the
Expiration Date.

                  3.2    Termination Because of Death or Disability.  If
                         ------------------------------------------
Optionee is Terminated because of death or Disability of Optionee (or the
Optionee dies within three (3) months after Termination other than for Cause
or because of Disability), then this Option, to the extent that it is vested
in accordance with the schedule set forth in Section 2.1 hereof on the
Termination Date, may be exercised by Optionee (or Optionee's legal
representative or authorized assignee) no later than twelve (12) months after
the Termination Date, but in any event no later than the Expiration Date. Any
exercise after three months after the Termination Date when the Termination is
for any reason other than Optionee's death or disability, within the meaning
of Code Section 22(e)(3), shall be deemed to be the exercise of a nonqualified
stock option.

                  3.3    Termination for Cause.  If Optionee is Terminated for
                         ---------------------
Cause, this Option will expire on the Optionee's date of Termination.

                  3.4    No Obligation to Employ.  Nothing in the Plan or this
                         -----------------------
Agreement shall confer on Optionee any right to continue in the employ of, or
other relationship with, the Company or any Parent or Subsidiary of the Company,
or limit in any way the right of the Company or any Parent or Subsidiary of the
Company to terminate Optionee's employment or other relationship at any time,
with or without Cause.

          4.      Manner of Exercise.
                  ------------------

                  4.1    Stock Option Exercise Agreement.  To exercise this
                         -------------------------------
Option, Optionee (or in the case of exercise after Optionee's death, Optionee's
executor, administrator, heir or legatee, as the case may be) must deliver to
the Company an executed stock option
<PAGE>

exercise agreement in the form attached hereto as Exhibit A, or in such other
                                                  ---------
form as may be approved by the Company from time to time (the "Exercise
Agreement"), which shall set forth, inter alia, Optionee's election to
                                    ----- ----
exercise this Option, the number of shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements
regarding Optionee's investment intent and access to information as may be
required by the Company to comply with applicable securities laws. If someone
other than Optionee exercises this Option, then such person must submit
documentation reasonably acceptable to the Company that such person has the
right to exercise this Option.

                  4.2    Limitations on Exercise.  This Option may not be
                         -----------------------
exercised unless such exercise is in compliance with all applicable federal and
state securities laws, as they are in effect on the date of exercise.  This
Option may not be exercised as to fewer than 100 Shares unless it is exercised
as to all Shares as to which this Option is then exercisable.

                  4.3    Payment.  The Exercise Agreement shall be accompanied
                         -------
by full payment of the Exercise Price for the Shares being purchased in cash
(by check), or where permitted by law:

        (a)   by cancellation of indebtedness of the Company to the Optionee;

        (b)   by surrender of shares of the Company's Common Stock that
              either: (1) have been owned by Optionee for more than six (6)
              months and have been paid for within the meaning of SEC Rule 144
              (and, if such shares were purchased from the Company by use of a
              promissory note, such note has been fully paid with respect to
              such shares); or (2) were obtained by Optionee in the open
              public market; and (3) are clear of all liens, claims,
                             ---
              encumbrances or security interests;

        (c)   by waiver of compensation due or accrued to Optionee for services
              rendered;

        (d)   provided that a public market for the Company's stock exists:
              (1) through a "same day sale" commitment from Optionee and a
              broker-dealer that is a member of the National Association of
              Securities Dealers (an "NASD Dealer") whereby Optionee
              irrevocably elects to exercise this Option and to sell a portion
              of the Shares so purchased to pay for the Exercise Price and
              whereby the NASD Dealer irrevocably commits upon receipt of such
              Shares to forward the exercise price directly to the Company; or
                                                                            --
              (2) through a "margin" commitment from Optionee and an NASD
              Dealer whereby Optionee irrevocably elects to exercise this
              Option and to pledge the Shares so purchased to the NASD Dealer
              in a margin account as security for a loan from the NASD Dealer
              in the amount of the Exercise Price, and whereby the NASD Dealer
              irrevocably commits upon receipt of such Shares to forward the
              Exercise Price directly to the Company; or

        (e)   by any combination of the foregoing.

                  4.4    Tax Withholding.  Prior to the issuance of the Shares
                         ---------------
upon exercise
<PAGE>

of this Option, Optionee must pay or provide for any applicable federal or
state withholding obligations of the Company. If the Committee permits,
Optionee may provide for payment of withholding taxes upon exercise of this
Option by requesting that the Company retain Shares with a Fair Market Value
equal to the minimum amount of taxes required to be withheld. In such case,
the Company shall issue the net number of Shares to the Optionee by deducting
the Shares retained from the Shares issuable upon exercise.

                  4.5    Issuance of Shares.  Provided that the Exercise
                         ------------------
Agreement and payment are in form and substance satisfactory to counsel for the
Company, the Company shall issue the Shares registered in the name of Optionee,
Optionee's authorized assignee, or Optionee's legal representative, and shall
deliver certificates representing the Shares with the appropriate legends
affixed thereto.

          5.       Compliance with Laws and Regulations.  The exercise of this
                   ------------------------------------
Option and the issuance and transfer of Shares shall be subject to compliance by
the Company and Optionee with all applicable requirements of federal and state
securities laws and with all applicable requirements of any stock exchange on
which the Company's Common Stock may be listed at the time of such issuance or
transfer.  Optionee understands that the Company is under no obligation to
register or qualify the Shares with the SEC, any state securities commission or
any stock exchange to effect such compliance.

          6.       Nontransferability of Option.  This Option may not be
                   ----------------------------
transferred in any manner other than under the terms and conditions of the Plan
or by will or by the laws of descent and distribution and may be exercised
during the lifetime of Optionee only by Optionee.  The terms of this Option
shall be binding upon the executors, administrators, successors and assigns of
Optionee.

          7.       Tax Consequences.  Set forth below is a brief summary as of
                   ----------------
the date the Board adopted the Plan of some of the federal tax consequences of
exercise of this Option and disposition of the Shares.  THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THIS OPTION OR DISPOSING
OF THE SHARES.

                  8.1    Exercise of Nonqualified Stock Option.  There may be a
                         -------------------------------------
regular federal income tax liability upon the exercise of this Option.  Optionee
will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the fair market value of the
Shares on the date of exercise over the Exercise Price.  The Company may be
required to withhold from Optionee's compensation or collect from Optionee and
pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income at the time of exercise.

                  8.2    Disposition of Shares.  If the Shares are held for more
                         ---------------------
than twelve (12) months after the date of the transfer of the Shares pursuant to
the exercise of an NQSO, any gain realized on disposition of the Shares will be
treated as long-term capital gain.  The
<PAGE>

Company may be required to withhold from Optionee's compensation or collect
from the Optionee and pay to the applicable taxing authorities an amount equal
to a percentage of this compensation income.

          8.      Privileges of Stock Ownership.  Optionee shall not have any
                  -----------------------------
of the rights of a stockholder with respect to any Shares until the Shares are
issued to Optionee.

          9.      Interpretation.  Any dispute regarding the interpretation of
                  --------------
this Agreement shall be submitted by Optionee or the Company to the Committee
for review.  The resolution of such a dispute by the Committee shall be final
and binding on the Company and Optionee.

          10.     Entire Agreement.  The Plan is incorporated herein by
                  ----------------
reference.  This Agreement and the Plan and the Exercise Agreement constitute
the entire agreement and understanding of the parties hereto with respect to the
subject matter hereof and supersede all prior understandings and agreements with
respect to such subject matter.

          11.     Notices.  Any notice required to be given or delivered to the
                  -------
Company under the terms of this Agreement shall be in writing and addressed to
the Corporate Secretary of the Company at its principal corporate offices.  Any
notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated above or to such other address as
such party may designate in writing from time to time to the Company.  All
notices shall be deemed to have been given or delivered upon:  personal
delivery; three (3) days after deposit in the United States mail by certified or
registered mail (return receipt requested); one (1) business day after deposit
with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile.

          12.     Successors and Assigns.  The Company may assign any of its
                  ----------------------
rights under this Agreement.  This Agreement shall be binding upon and inure to
the benefit of the successors and assigns of the Company.  Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding upon
Optionee and Optionee's heirs, executors, administrators, legal representatives,
successors and assigns.

          13.     Governing Law.  This Agreement shall be governed by and
                  -------------
construed in accordance with the internal laws of the State of California,
without regard to that body of law pertaining to choice of law or conflict of
law.

          14.     Acceptance.  Optionee hereby acknowledges receipt of a copy
                  ----------
of the Plan and this Agreement.  Optionee has read and understands the terms and
provisions thereof, and accepts this Option subject to all the terms and
conditions of the Plan and this Agreement.  Optionee acknowledges that there may
be adverse tax consequences upon exercise of this Option or disposition of the
Shares and that the Company has advised Optionee to consult a tax advisor prior
to such exercise or disposition.
<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in duplicate by its duly authorized representative and Optionee has
executed this Agreement in duplicate as of the Date of Grant.

EGGHEAD.COM, INC.                        OPTIONEE

By:  ________________________________    ____________________________________
                                         (Signature)

_____________________________________    ____________________________________
(Please print name)                      (Please print name)

_____________________________________
(Please print title)
<PAGE>

                                   Exhibit A
                                   ---------

                               EGGHEAD.COM, INC.
                    2000 EQUITY INCENTIVE PLAN (the "Plan")
                        STOCK OPTION EXERCISE AGREEMENT
                        -------------------------------

          I hereby elect to purchase the number of shares of Common Stock of
Egghead.com, Inc. (the "Company") as set forth below:

<TABLE>
<CAPTION>
<S>                                                       <C>
Optionee ______________________________________________   Number of Shares Purchased: _________________________________________
Social Security Number: _______________________________   Purchase Price per Share: ___________________________________________
Address: ______________________________________________   Aggregate Purchase Price: ___________________________________________
               ________________________________________   Date of Option Agreement: ___________________________________________
               ________________________________________
Type of Option:        [   ]  Incentive Stock Option      Exact Name of Title to Shares: ______________________________________
                       [   ]  Nonqualified Stock Option   _____________________________________________________________________
</TABLE>

1.        Delivery of Purchase Price.  Optionee hereby delivers to the Company
the Aggregate Purchase Price, to the extent permitted in the Option Agreement
(the "Option Agreement") as follows (check as applicable and complete):

[   ]     in cash (by check) in the amount of $_____________________, receipt of
          which is acknowledged by the Company;

[   ]     by cancellation of indebtedness of the Company to Optionee in the
          amount of $___________________________________;

[   ]     by delivery of ______________________________ fully-paid,
          nonassessable and vested shares of the Common Stock of the Company
          owned by Optionee for at least six (6) months prior to the date hereof
          (and which have been paid for within the meaning of SEC Rule 144), or
          obtained by Optionee in the open public market, and owned free and
          clear of all liens, claims, encumbrances or security interests, valued
          at the current Fair Market Value of $____________________ per share;

[   ]     by the waiver hereby of compensation due or accrued to Optionee for
          services rendered in the amount of $_______________________________ ;

[   ]     through a "same-day-sale" commitment, delivered herewith, from
          Optionee and the NASD Dealer named therein, in the amount of
          $_______________________________; or

[   ]     through a "margin" commitment, delivered herewith from Optionee and
          the NASD Dealer named therein, in the amount of
          $_________________________________________.

2.        Market Standoff Agreement.  Optionee, if requested by the Company and
an underwriter of Common Stock (or other securities) of the Company, agrees not
to sell or otherwise transfer or dispose of any Common Stock (or other
securities) of the Company held by Optionee during the period requested by the
managing underwriter following the effective date of a registration statement of
the Company filed under the Securities Act, provided that all officers and
directors of the Company are required to enter into similar agreements.  Such
agreement shall be in writing in a form satisfactory to the Company and such
underwriter.  The Company may impose stop-transfer instructions with respect to
the shares (or other securities) subject to the foregoing restriction until the
end of such period.

3.        Tax Consequences.  OPTIONEE UNDERSTANDS THAT OPTIONEE MAY SUFFER
ADVERSE TAX CONSEQUENCES AS A RESULT OF OPTIONEE'S PURCHASE OR DISPOSITION OF
THE SHARES.  OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH ANY TAX
CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR
DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE.

4.        Entire Agreement.  The Plan and Option Agreement are incorporated
herein by reference.  This Exercise Agreement, the Plan and the Option Agreement
constitute the entire agreement and understanding of the parties and
<PAGE>

supersede in their entirety all prior understandings and agreements of the
Company and Optionee with respect to the subject matter hereof, and are governed
by California law except for that body of law pertaining to choice of law or
conflict of law.

Date: ___________________________      _______________________________________
                                       Signature of Optionee
<PAGE>

                                Spousal Consent

          I acknowledge that I have read the foregoing Stock Option Exercise
Agreement (the "Agreement") and that I know its contents.  I hereby consent to
and approve all of the provisions of the Agreement, and agree that the shares of
the Common Stock of Egghead.com, Inc. purchased thereunder (the "Shares") and
any interest I may have in such Shares are subject to all the provisions of the
Agreement.  I will take no action at any time to hinder operation of the
Agreement on these Shares or any interest I may have in or to them.

     ___________________________________    Date:__________________
     Signature of Optionee's Spouse

     ___________________________________
     Spouse's Name - Typed or Printed

     ___________________________________
     Optionee's Name - Typed or Printed

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}]]