Document:

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                                                                     Exhibit 4.2

                                ONVIA.COM, INC.

            SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
            -------------------------------------------------------

     This Onvia.com, Inc. Second Amended and Restated Investors' Rights
Agreement (this "Agreement") is made as of the 20/th/ day of December 1999, by
                 ---------
and among Onvia.com, Inc., a Washington corporation (the "Company"), the
                                                          -------
investors listed on Exhibit A hereto (each, an "Investor," and collectively, the
                                                --------
"Investors") and the holders of the Company's common stock (the "Common Stock")
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listed on Exhibit B hereto (each, a "Common Holder," and together, the "Common
          ---------                  -------------                      ------
Holders").
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                                   RECITALS
                                   --------

     A.  Certain of the Investors hold shares of the Company's Series A
Preferred Stock (the "Series A Preferred Stock"), the Company's Series B
                      ------------------------
Preferred Stock (the "Series B Preferred Stock") and/or shares of the Company's
                      ------------------------
Common Stock issued upon conversion thereof and possess registration rights,
information rights and other rights pursuant to that certain Onvia.com, Inc.,
Investors' Rights Agreement dated as of September 30, 1999 by and among the
Company and such certain Investors (the "Old Investors' Rights Agreement").
                                         -------------------------------

     B.  The Company and certain of the Investors have entered into that certain
Onvia.com, Inc. Series C Preferred Stock Purchase Agreement (the "Series C
                                                                  --------
Purchase Agreement") of even date herewith pursuant to which the Company desires
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to sell to such certain Investors, and such certain Investors desire to purchase
from the Company, shares of the Company's Series C Preferred Stock (the "Series
                                                                         ------
C Preferred Stock").
-----------------

     C.  A condition to such certain Investors' obligations under the Purchase
Agreement is that the Company, the Common Holders and the Investors enter into
this Agreement in order to provide the Investors with, among other things, (1)
certain rights to register shares of the Company's Common Stock issuable upon
conversion of the Series A Preferred Stock, the Series B Preferred Stock and the
Series C Preferred Stock held by the Investors, (2) certain rights to receive or
inspect information pertaining to the Company and (3) a right of first offer
with respect to certain issuances by the Company of its securities, all
according to the terms and conditions, but subject to the limitations, set forth
in this Agreement.

     D.  The Company, the Investors and the Common Holders desire (1) to induce
certain Investors to purchase shares of Series C Preferred Stock pursuant to the
Purchase Agreement and (2) to terminate the Old Investors' Rights Agreement and
to accept the rights and obligations set forth in this Agreement, by agreeing to
the terms and conditions set forth below.

                                   AGREEMENT
                                   ---------

     In consideration of the foregoing recitals and the mutual promises set
forth in this Agreement, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:
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     1.  Registration Rights.  The Company, the Investors and the Common Holders
         -------------------
hereby covenant and agree as follows:

         1.1  Definitions.  For purposes of this Section 1:

              (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 of 1933, as amended (the
"Securities Act"), and the declaration or ordering of effectiveness of such
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registration statement or document;

              (b) The term "Registrable Securities" means (i) the shares of
                            ----------------------
Common Stock issuable or issued upon conversion of the Series A Preferred Stock,
the Series B Preferred Stock and the Series C Preferred Stock, (ii) the shares
of Common Stock issued to the Common Holders (the "Common Holders' Stock");
                                                   ---------------------
provided, however, that for the purposes of Section 1.2, 1.4 or 1.13 the Common
Holders' Stock shall not be deemed Registrable Securities and the Common Holders
shall not be deemed Holders, (iii) any other shares of Common Stock of the
Company 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, the shares listed in
(i) and (ii) and (iv) the shares of Common Stock issued or issuable upon
conversion or exercise of securities purchased by Holders pursuant to any right
of first offer, right of first refusal or co-sale right set forth in the
Agreements; provided, however, that the foregoing definition shall exclude in
all cases any Registrable Securities sold by a person in a transaction in which
his or her rights under this Agreement are not assigned. Notwithstanding the
foregoing, Common Stock or other securities shall only be treated as Registrable
Securities if and so long as they have not been (A) sold to or through a broker
or dealer or underwriter in a public distribution or a public securities
transaction or (B) sold in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act under Section 4(1)
thereof so that all transfer restrictions, and restrictive legends with respect
thereto, if any, are removed upon the consummation of such sale;

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

              (d) The term "Holder" means any person owning or having the right
                            ------
to acquire Registrable Securities or any assignee thereof in accordance with
Section 1.12 of this Agreement;

              (e) The term "Form S-3" means such form under the Securities Act
                            --------
as in effect on the date hereof or any successor form under the Securities Act;

              (f) The term "SEC" means the Securities and Exchange Commission;
                            ---
and
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               (g)  The term "Qualified IPO" means a firm commitment
                              -------------
underwritten public offering by the Company of shares of its Common Stock
pursuant to a registration statement under the Securities Act, the public
offering price of which is not less than Twenty Dollars and Fifty-Seven Cents
($20.57) per share (appropriately adjusted for any stock split, dividend,
combination or other recapitalization) and which results in aggregate cash
proceeds to the Corporation of Thirty Million Dollars ($30,000,000) (net of
underwriting discounts and commissions).

          1.2  Request for Registration.
               ------------------------

               (a)  If the Company shall receive at any time after the earlier
of (i) February 24, 2003, or (ii) six (6) months after the effective date of the
first registration statement for a public offering of securities of the Company
(other than a registration statement relating either to the sale of securities
to employees of the Company pursuant to a stock option, stock purchase or
similar plan or an SEC Rule 145 transaction), a written request from the Holders
of a majority of the Registrable Securities then outstanding that the Company
file a registration statement under the Securities Act covering the registration
of the Registrable Securities having an aggregate public offering price not less
than Ten Million Dollars ($10,000,000) (net of underwriting discounts and
commissions). Then the Company shall, within ten (10) days of the receipt
thereof, give written notice of such request to all Holders and shall, subject
to the limitations of subsection 1.2(b), use its commercially reasonable best
efforts to effect as soon as practicable, and in any event within sixty (60)
days of the receipt of such request, the registration under the Securities Act
of all Registrable Securities which the Holders request to be registered within
twenty (20) days of the mailing of such notice by the Company in accordance with
Section 3.3.

               (b)  If the Holders initiating the registration request hereunder

("Initiating Holders") intend to distribute the Registrable Securities covered
--------------------
by their request by means of an underwriting, they shall so advise the Company
as a part of their request made pursuant to this Section 1.2 and the Company
shall include such information in the written notice referred to in subsection
1.2(a).  The underwriter will be selected by a majority in interest of the
Initiating Holders and shall be reasonably acceptable to the Company.  In such
event, the right of any Holder to include his Registrable Securities in such
registration shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable Securities in the
underwriting (unless otherwise mutually agreed by a majority in interest of the
Initiating Holders and such Holder) to the extent provided herein.  All Holders
proposing to distribute their securities through such underwriting shall
(together with the Company as provided in subsection 1.5(e)) enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting.  Notwithstanding any other provision of this
Section 1.2, if the underwriter advises the Initiating 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 be underwritten pursuant hereto,
and the number of shares of Registrable Securities that may be included in the
underwriting shall be allocated among all Holders thereof, including the
Initiating Holders, in proportion (as nearly as practicable) to the amount of
Registrable Securities of the Company owned by each Holder; provided, however,
that the number of shares of Registrable Securities to
<PAGE>

be included in such underwriting shall not be reduced unless all other
securities are first entirely excluded from the underwriting.

          (c) Notwithstanding the foregoing, if the Company shall furnish to
Holders requesting a registration statement pursuant to this Section 1.2, a
certificate signed by the President of the Company stating that in the good
faith judgment of the board of directors of the Company (the "Board of
                                                              --------
Directors") it would be seriously detrimental to the Company and its
---------
stockholders for such registration statement to be filed and it is therefore
essential to defer the filing of such registration statement, the Company shall
have the right to defer such filing for a period of not more than one hundred
twenty (120) days after receipt of the request of the Initiating Holders;
provided, however, that the Company may not utilize this right more than once in
any twelve-month period.

          (d) In addition, the Company shall not be obligated to effect, or to
take any action to effect, any registration pursuant to this Section 1.2:

              (i)    After the Company has effected two (2) registrations
pursuant to this Section 1.2 and such registrations have been declared or
ordered effective;

              (ii)   During the period starting with the date sixty (60) days
prior to the Company's good faith estimate of the date of filing of, and ending
on a date one hundred eighty (180) days after the effective date of, a
registration subject to Section 1.3 hereof; provided that the Company is
actively employing in good faith all reasonable efforts to cause such
registration statement to become effective; or

              (iii)  If the Initiating Holders propose to dispose of shares of
Registrable Securities that may be immediately registered on Form S-3 pursuant
to a request made pursuant to Section 1.4 below.

     1.3  Company Registration.   If (but without any obligation to do so)
          --------------------
the Company proposes to register (including for this purpose a registration
effected by the Company for stockholders other than the Holders) any of its
stock 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 Company stock plan or a transaction
covered by Rule 145 under the Securities Act, a registration in which the only
stock being registered is Common Stock issuable upon conversion of debt
securities which are also being registered, or any registration on any 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 Registrable
Securities), the Company shall, at such time, promptly give each Holder written
notice of such registration.  Upon the written request of each Holder given
within twenty (20) days after mailing of such notice by the Company in
accordance with Section 3.3, the Company shall, subject to the provisions of
Section 1.8, cause to be registered under the Securities Act all of the
Registrable Securities that each such Holder has requested to be registered.

          1.4  Form S-3 Registration.  In case the Company shall receive from
               ---------------------
any Holder or Holders a written request or requests that the Company effect a
registration on
<PAGE>

Form S-3 and any related qualification or compliance with respect to all or a
part of the Registrable Securities owned by such Holder or Holders, the Company
will:

          (a) promptly give written notice of the proposed registration, and any
related qualification or compliance, to all other Holders; and

          (b) as soon as practicable, effect such registration and all such
qualifications and compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Holder's or
Holders' Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any other Holder or Holders
joining in such request as are specified in a written request given within
fifteen (15) days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this Section 1.4: (i) if
Form S-3 is not available for such offering by the Holders, (ii) if the Holders,
together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) at an aggregate price to the public (net of any
underwriters' discounts or commissions) of less than Five Million Dollars
($5,000,000), (iii) if the Company shall furnish to the Holders a certificate
signed by the President of the Company stating that in the good faith judgment
of the Board of Directors, it would be seriously detrimental to the Company and
its stockholders for such Form S-3 Registration to be effected at such time, in
which event the Company shall have the right to defer the filing of the Form S-3
registration statement for a period of not more than one hundred twenty (120)
days after receipt of the request of the Holder or Holders under this Section
1.4; provided, however, that the Company shall not utilize this right more than
once in any twelve month period, (iv) if the Company has, within the twelve (12)
month period preceding the date of such request, already effected a registration
on Form S-3 for the Holders pursuant to this Section 1.4, (v) in any particular
jurisdiction in which the Company would be required to qualify to do business or
to execute a general consent to service of process in effecting such
registration, qualification or compliance or (vi) during the period ending one
hundred eighty (180) days after the effective date of a registration statement
subject to Section 1.3.

          (c) Subject to the foregoing, the Company shall file a registration
statement covering the Registrable Securities and other securities so requested
to be registered as soon as practicable after receipt of the request or requests
of the Holders.  Registrations effected pursuant to this Section 1.4 shall not
be counted as demands for registration or registrations effected pursuant to
Sections 1.2.

          1.5  Obligations of the Company.  Whenever required under this
               --------------------------
Section 1 to effect the registration of any Registrable Securities, the Company
shall use commercially reasonable best efforts to:

          (a) Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its commercially reasonable best
efforts to cause such registration statement to become effective, and, upon the
request of the Holders of a majority of the Registrable Securities registered
thereunder, keep such registration statement effective for up
<PAGE>

to one hundred twenty (120) days. The Company shall not be required to file,
cause to become effective or maintain the effectiveness of any registration
statement that contemplates a distribution of securities on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act.

          (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 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 for up to one hundred twenty (120) days.

          (c) Furnish to the 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 they may reasonably request in order
to facilitate the disposition of Registrable Securities owned by them.

          (d) 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 the Holders; provided, however, that the
Company shall not be required in connection therewith or as a condition thereto
to qualify to do business or to file a general consent to service of process in
any such states or jurisdictions.

          (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.  Each Holder participating
in such underwriting shall also enter into and perform its obligations under
such an agreement.

          (f) Notify each Holder of Registrable Securities covered by such
registration statement at any time when (i) 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, such obligation to continue for one hundred twenty (120) days, or (ii)
there is any stop order issued by the SEC suspending the effectiveness of such
registration statement or the initiation of any proceedings for that purpose and
the receipt by the Company of any notification with respect to the suspension of
the qualification of the Registrable Securities for sale in any jurisdiction or
the initiation or threatening of such procedure.

          (g) Cause all such Registrable Securities registered pursuant
hereunder to be listed on each securities exchange on which similar securities
issued by the Company are then listed.

          (h) Provide a transfer agent and registrar for all Registrable
Securities registered hereunder and a CUSIP number for all such Registrable
Securities, in each case not later than the effective date of such registration.
<PAGE>

               (i)  Furnish, at the request of any Holder requesting
registration of Registrable Securities pursuant to this Section 1, on the date
that such Registrable Securities are delivered to the underwriters for sale in
connection with a registration pursuant to this Section 1, if such securities
are being sold through underwriters, or, if such securities are not being sold
through underwriters, on the date that the registration statement with respect
to such securities becomes effective, (i) an opinion, dated such date, of the
counsel representing the Company for the purposes of such registration, in form
and substance as is customarily given to underwriters in an underwritten public
offering, addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities and (ii) a letter dated such date, from
the independent certified public accountants of the Company, in form and
substance as is customarily given by independent certified public accountants to
underwriters in an underwritten public offering, addressed to the underwriters,
if any, and to the Holders requesting registration of Registrable Securities.

          1.6  Furnish Information.  It shall be a condition precedent to the
               -------------------
obligations of the Company to take any action pursuant to this Section 1 with
respect to the Registrable Securities of any selling Holder that such Holder
shall furnish to the Company 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.  The Company shall have no obligation with respect to any
registration requested pursuant to Section 1.2 or Section 1.4 of this Agreement
if, as a result of the application of the preceding sentence, the number of
shares or the anticipated aggregate offering price of the Registrable Securities
to be included in the registration does not equal or exceed the number of shares
or the anticipated aggregate offering price specified in subsection 1.2(a) or
subsection 1.4(b)(2), whichever is applicable.

          1.7  Expenses of Registration.
               ------------------------

               (a)  Demand Registration.  All expenses (other than underwriting
                    -------------------
discounts and commissions incurred in connection with registrations, filings or
qualifications pursuant to Section 1.2), including without limitation, all
registration, filing and qualification fees, printers' and accounting fees, fees
and disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel for the selling Holders selected by them with the
approval of the Company, which approval shall not be unreasonably withheld,
shall be borne by the Company; provided, however, that the Company shall not be
required to pay for any expenses of any registration proceeding begun pursuant
to Section 1.2 if the registration request is subsequently withdrawn at the
request of the Holders of a majority of the Registrable Securities to be
registered (in which case all participating Holders shall bear such expenses),
unless the Holders of a majority of the Registrable Securities agree to forfeit
their right to one demand registration pursuant to Section 1.2.

               (b)  Company Registration and Registration on Form S-3.  All
                    -------------------------------------------------
expenses other than underwriting discounts and commissions incurred in
connection with registrations, filings or qualifications of Registrable
Securities pursuant to Section 1.3 and Section 1.4 for each Holder (which right
may be assigned as provided in Section 1.12), including (without limitation) all
registration, filing, and qualification fees, printers' and accounting fees,
<PAGE>

fees and disbursements of counsel for the Company and the reasonable fees and
disbursements of one counsel for the selling Holder or Holders selected by them
with the approval of the Company, which approval shall not be unreasonably
withheld, shall be borne by the Company.

          1.8  Underwriting Requirements.  In connection with any offering
               -------------------------
involving an underwriting of shares of the Company's capital stock, the Company
shall not be required under Section 1.3 to include any of the Holders'
securities in such underwriting unless they accept the terms of the underwriting
as agreed upon between the Company and the underwriters selected by it (or by
other persons entitled to select the underwriters), and then only in such
quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company.  If the total amount of
securities, including Registrable Securities, requested by stockholders to be
included in such offering exceeds the amount of securities sold other than by
the Company that the underwriters determine in their sole discretion is
compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including
Registrable Securities, which the underwriters determine in their sole
discretion will not jeopardize the success of the offering (the securities so
included to be apportioned pro rata among the selling stockholders according to
the total amount of securities entitled to be included therein owned by each
selling stockholder or in such other proportions as shall mutually be agreed to
by such selling stockholders) but in no event shall (i) any shares being sold by
a stockholder exercising a demand registration right similar to that granted in
Section 1.2 be excluded from such offering, (ii) the amount of securities of the
selling Holders included in the offering be reduced below thirty percent (30%)
of the total amount of securities included in such offering, unless such
offering is the initial public offering of the Company's securities, in which
case, except as provided in (i) the selling stockholders may be excluded if the
underwriters make the determination described above and no other stockholder's
securities are included or (iii) any securities held by a Common Holder be
included if any securities held by any selling Holder are excluded.  For
purposes of the preceding parenthetical concerning apportionment, for any
selling stockholder which is a holder of Registrable Securities and which is a
partnership or corporation, the partners, retired partners and stockholders 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 stockholder," and any pro-rata reduction with
                       -------------------
respect to such "selling stockholder" shall be based upon the aggregate amount
of shares carrying registration rights owned by all entities and individuals
included in such "selling stockholder," as defined in this sentence.

          1.9  Delay of Registration.  No Holder shall 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 1.

          1.10 Indemnification.  In the event any Registrable Securities are
               ---------------
included in a registration statement under this Section 1:

               (a) To the extent permitted by law, the Company 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 such Holder or
underwriter within the meaning of the
<PAGE>

Securities Act or the Securities Exchange Act of 1934, as amended (the "Exchange
                                                                        --------
Act"), against any losses, claims, damages, or liabilities (joint or several) to
---
which they may become subject under the Securities Act, the Exchange Act or
other federal or state 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
Company of the Securities Act, the Exchange Act, any state securities law or any
rule or regulation promulgated under the Securities Act, the Exchange Act or any
state securities law; and the Company will pay to each such 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 subsection 1.10(a) shall not apply to amounts paid
in settlement of any such loss, claim, damage, liability, or action if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable to any Holder,
underwriter or controlling person for any such loss, claim, damage, liability,
or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by any such Holder,
underwriter or controlling person.

          (b) To the extent permitted by law, each selling Holder will,
severally and not jointly, indemnify and hold harmless the Company, each of its
directors, each of its officers who has signed the registration statement, each
person, if any, who controls the Company within the meaning of the Securities
Act, any underwriter, any other Holder selling securities in such registration
statement and any controlling person of any such underwriter or other Holder,
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
Exchange Act or other federal or state 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 (and only to the extent)
that such Violation occurs in reliance upon and in conformity with written
information furnished by such Holder expressly for use in connection with such
registration; and each such Holder will pay, severally and not jointly, as
incurred, any legal or other expenses reasonably incurred by any person intended
to be indemnified pursuant to this subsection 1.10(b), in connection with
investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that the indemnity agreement contained in this subsection
1.10(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 the Holder, which consent shall not be unreasonably withheld; and provided
further, however, that in no event shall any indemnity under this subsection
1.10(b) exceed the net proceeds from the offering received by such Holder.

          (c) Promptly after receipt by an indemnified party under this Section
1.10 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
<PAGE>

party under this Section 1.10, deliver to the indemnifying party a written
notice of the commencement 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 with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party (together with all other indemnified parties
which may be represented without conflict by one counsel) shall have the right
to retain one separate counsel, with the reasonable 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 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 1.10, 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
1.10.

          (d) If the indemnification provided for in this Section 1.10 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, however, that in no event shall any contribution by a
Holder under this Subsection 1.10(d) exceed the net proceeds from the offering
received by such 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 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.

          (f) The obligations of the Company and Holders under this Section 1.10
shall survive the completion of any offering of Registrable Securities in a
registration statement under this Section 1, and otherwise.

    1.11  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 a Holder to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company agrees to:
<PAGE>

          (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 Company for the offering of its
securities to the general public;

          (b) take such action, including the voluntary registration of its
Common Stock under Section 12 of the Exchange Act, as is necessary to enable the
Holders to utilize Form S-3 for the sale of their Registrable Securities, such
action to be taken as soon as practicable after the end of the fiscal year in
which the first registration statement filed by the Company for the offering of
its securities to the general public is declared effective;

          (c) file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;
and

          (d) furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (i) a written statement by the Company 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 Company), the Securities Act and the Exchange 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 Company and such other reports and documents so filed by
the Company and (iii) such other information as may be reasonably requested in
availing any Holder of any rule or regulation of the SEC which permits the
selling of any such securities without registration or pursuant to such form.

     1.12 Assignment of Registration Rights.  The rights to cause the
          ---------------------------------
Company to register Registrable Securities pursuant to this Section 1 may be
assigned (but only with all related obligations) by a Holder to a transferee or
assignee of at least two hundred fifty thousand (250,000) shares of such
securities; provided, however, the Company 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; and provided further, however, that such
assignment shall be effective only if immediately following such transfer the
further disposition of such securities by the transferee or assignee is
restricted under the Securities Act.  The foregoing notwithstanding, any
Investor may assign its rights and obligations pursuant to this Section 1 to an
affiliate or successor so long as such affiliate or successor agrees to be bound
by the terms of this Agreement.  For the purposes of determining the number of
shares of Registrable Securities held by a transferee or assignee, the holdings
of transferees and assignees of a partnership who are partners or retired
partners of such partnership (including spouses and ancestors, lineal
descendants and siblings of such partners or spouses who acquire Registrable
Securities by gift, will or intestate succession) shall be aggregated together
and with the partnership; provided that all assignees and transferees who would
not qualify individually for assignment of registration rights shall have a
single attorney-in-fact for the purpose of exercising any rights, receiving
notices or taking any action under Section 1.

     1.13 Limitations on Subsequent Registration Rights.  From and after
          ---------------------------------------------
the date of this Agreement, the Company shall not, without the prior written
consent of the Holders of a majority of the outstanding Registrable Securities,
enter into any agreement with any holder
<PAGE>

or prospective holder of any securities of the Company which would allow such
holder or prospective holder (a) to include such securities in any registration
filed under Section 1.2 hereof, unless under the terms of such agreement, such
holder or prospective holder may include such securities in any such
registration only to the extent that the inclusion of his securities will not
reduce the amount of the Registrable Securities of the Holders which is included
or (b) to make a demand registration which could result in such registration
statement being declared effective prior to the earlier of either of the dates
set forth in subsection 1.2(a) or within one hundred twenty (120) days of the
effective date of any registration effected pursuant to Section 1.2.

     1.14 "Market Stand-Off" Agreement. Each Holder hereby agrees that, during
          ----------------------------
the period (up to, but not exceeding, one hundred eighty (180) days) specified
by the Company and an underwriter of Common Stock or other securities of the
Company, following the effective date of a registration statement of the Company
filed under the Securities Act, it shall not, to the extent requested by the
Company and such underwriter, 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 (other than to donees who
agree to be similarly bound) any securities of the Company held by it at any
time during such period except (i) Common Stock included in such registration,
(ii) securities acquired pursuant to such registration statement, or (iii)
securities acquired on the open market; provided, however, that:

               (a)  such agreement shall be applicable only the first such
registration statement of the Company which covers Common Stock (or other
securities) to be sold on its behalf to the public in an underwritten offering;
and

               (b)  all officers and directors of the Company, all one-percent
securityholders, and all other persons with registration rights (whether or not
pursuant to this Agreement) enter into similar agreements;

               (c)  such agreement shall be on customary terms.

     In order to enforce the foregoing covenant, the Company may impose stop-
transfer instructions with respect to the Registrable Securities of each Holder
(and the shares or securities of every other person subject to the foregoing
restriction) until the end of such period, and each Holder agrees that, if so
requested, such Holder will execute an agreement in the form provided by the
underwriter containing terms which are essentially consistent with the
provisions of this Section 1.14.

     Notwithstanding the foregoing, the obligations described in this Section
1.14 shall not apply to a registration relating solely to employee benefit plans
on Form S-1 or Form S-8 or similar forms which may be promulgated in the future,
or a registration relating solely to an SEC Rule 145 transaction on Form S-4 or
similar forms which may be promulgated in the future.

          1.15 Termination of Registration Rights.  No Holder shall be entitled
               ----------------------------------
to exercise any right provided for in this Section 1 after the earlier
of (i) five (5) years following the consummation of a Qualified IPO or (ii) such
time as Rule 144 or another similar exemption
<PAGE>

under the Securities Act is available for the sale of all of such Holder's
shares during a three (3)-month period without registration.

     2.   Covenants of the Company.
          ------------------------

          2.1  Delivery of Financial Statements.  The Company shall deliver to
               --------------------------------
each Holder of at least two hundred fifty thousand (250,000) shares of
Registrable Securities (other than a Holder reasonably deemed by the Company to
be a competitor of the Company):

               (a)  as soon as practicable, but in any event within ninety (90)
days after the end of each fiscal year of the Company, an income statement for
such fiscal year, a balance sheet of the Company and statement of stockholder's
equity as of the end of such year, and a statement of cash flows for such year,
such year-end financial reports to be in reasonable detail, prepared in
accordance with generally accepted accounting principles ("GAAP"), and audited
                                                           ----
and certified by an independent public accounting firm of nationally recognized
standing selected by the Company;

               (b)  as soon as practicable, but in any event within thirty (30)
days after the end of each of the first three (3) quarters of each fiscal year
of the Company, an unaudited income statement, a statement of cash flows for
such fiscal quarter and an unaudited balance sheet as of the end of such fiscal
quarter;

               (c)  within thirty (30) days of the end of each month, an
unaudited income statement and a statement of cash flows and balance sheet for
and as of the end of such month, in reasonable detail;

               (d)  as soon as practicable, but in any event thirty (30) days
prior to the end of each fiscal year, a budget and business plan as approved by
the board of directors for the next fiscal year, prepared on a monthly basis,
and, as soon as prepared, any other budgets or revised budgets prepared by the
Company;

               (e)  as soon as practicable after the Closing of the transactions
contemplated in the Purchase Agreement and related Agreements, a written plan
setting forth the Company's proposed use of the proceeds to be obtained from its
sale of the Series C Preferred Stock; and

               (f)  with respect to the financial statements called for in
subsections (b) and (c) of this Section 2.1, an instrument executed by the Chief
Financial Officer or President of the Company and certifying that such
financials were prepared in accordance with GAAP consistently applied with prior
practice for earlier periods (with the exception of footnotes that may be
required by GAAP) and fairly present the financial condition of the Company and
its results of operation for the period specified, subject to year-end audit
adjustment, provided that the foregoing shall not restrict the right of the
Company to change its accounting principles consistent with GAAP, if the Board
of Directors determines that it is in the best interests of the Company to do
so.
<PAGE>

          2.2  Right of First Offer.  Subject to the terms and conditions
               --------------------
specified in this Section 2.2, the Company hereby grants to each Major Investor
(as hereinafter defined) a right of first offer with respect to future sales by
the Company of its Shares (as hereinafter defined).  For purposes of this
Section 2.2, a "Major Investor" shall mean any person who holds at least two
                --------------
hundred fifty thousand (250,000) shares of the Series A Preferred Stock, Series
B Preferred Stock or Series C Preferred Stock (or the Common Stock issued or
issuable upon conversion thereof) issued pursuant to the Purchase Agreement.
For purposes of this Section 2.2, Major Investor includes any general partners
and affiliates of a Major Investor.  A Major Investor who chooses to exercise
the right of first offer may designate as purchasers under such right itself or
its partners or affiliates in such proportions as it deems appropriate.

          Each time the Company proposes to offer any shares of, or securities
convertible into or exercisable for any shares of, any class of its capital
stock ("Shares"), the Company shall first make an offering of such Shares to
        ------
each Major Investor in accordance with the following provisions:

               (a)  The Company shall deliver a notice by certified mail
("Notice") to the Major Investors stating (i) its bona fide intention to offer
  ------
such Shares, (ii) the number of such Shares to be offered and (iii) the price
and terms, if any, upon which it proposes to offer such Shares.

               (b)  Within fifteen (15) calendar days after delivery of the
Notice, the Major Investor may elect to purchase or obtain, at the price and on
the terms specified in the Notice, up to that portion of such Shares which
equals the proportion that the number of shares of Common Stock issued and held,
or issuable upon conversion and exercise of all convertible or exercisable
securities then held, by such Major Investor bears to the total number of shares
of Common Stock then outstanding (assuming full conversion and exercise of all
convertible or exercisable securities). The Company shall promptly, in writing,
inform each Major Investor that purchases all the shares available to it (each,
a "Fully-Exercising Investor") of any other Major Investor's failure to do
   -------------------------
likewise.  During the ten (10)-day period commencing after receipt of such
information, each Fully-Exercising Investor shall be entitled to obtain that
portion of the Shares for which Major Investors were entitled to subscribe but
which were not subscribed for by the Major Investors that is equal to the
proportion that the number of shares of Common Stock issued and held, or
issuable upon conversion and exercise of all convertible or exercisable
securities then held, by such Fully-Exercising Investor bears to the total
number of shares of Common Stock then outstanding and held by the Fully-
Exercising Investors (assuming full conversion and exercise of all convertible
or exercisable securities).

               (c)  The Company may, during the 45-day period following the
expiration of the period provided in subsection 2.2(b) hereof, offer the
remaining unsubscribed portion of the Shares to any person or persons at a price
not less than, and upon terms no more favorable to the offeree than those
specified in the Notice. If the Company does not enter into an agreement for the
sale of the Shares within such period, or if such agreement is not consummated
within sixty (60) days of the execution thereof, the right provided hereunder
shall be deemed to be revived and such Shares shall not be offered unless first
reoffered to the Major Investors in accordance herewith.
<PAGE>

               (d)  The right of first offer in this paragraph 2.2 shall not be
applicable (i) to the issuance or sale of Common Stock (or options therefor) to
employees, consultants and directors, pursuant to plans or agreements approved
by the Board of Directors for the primary purpose of soliciting or retaining
their services, (ii) to or after consummation of a Qualified IPO, (iii) to the
issuance of securities pursuant to the conversion or exercise of convertible or
exercisable securities, (iv) to the issuance of securities in connection with a
bona fide business acquisition of or by the Company, whether by merger,
consolidation, sale of assets, sale or exchange of stock or otherwise, (v) to
the issuance of securities to financial institutions, lessors or vendors in
connection with commercial credit arrangements, equipment financings, or similar
transactions, (vi) to the issuance or sale of the Series A Preferred Stock,
Series B Preferred Stock or Series C Preferred Stock or (vii) to the issuance of
securities that, with unanimous approval of the Board of Directors, are not
offered to any existing stockholder of the Company.

          2.3  Board Observer Seat.  For any meeting of the Board of Directors,
               -------------------
the Company shall allow one representative of GE Capital Equity Investments,
Inc. ("GE") (the "Representative") designated from time to time by GE to attend
       --         --------------
all meetings of the Board (and all committees thereof) in a non-voting observer
capacity; reimburse GE for the Representatives's out-of-pocket expenses in
connection with attending such meetings; provide to the Representative copies of
all notices, minutes, consents and other materials that the Company provides to
its directors in connection with meetings of the Board (or any committee
thereof, as the case may be) at the same time such is given to its directors;
and allow the Representative to participate in discussions of matters brought to
the Board. The rights in this Section 2.3 are personal to GE and its affiliates
and therefore may only be transferred or assigned with the prior consent of the
Company, which consent will not be unreasonably withheld.

          2.4  Use of Proceeds.  The Company will use the proceeds of its Series
               ---------------
C Preferred Stock financing for expansion of the Company sales efforts,
marketing efforts, general working capital purposes and retirement of debt.

          2.5  Termination of Covenants.
               ------------------------

               (a)  The covenants set forth in Sections 2.1, 2.2, 2.3 and 2.4
shall terminate as to each Holder and be of no further force or effect (i) as of
the closing date of a Qualified IPO or (ii) when the Company shall sell, convey,
or otherwise dispose of or encumber all or substantially all of its property or
business or merge into or consolidate with any other corporation (other than a
wholly-owned subsidiary corporation) or effect any other transaction or series
of related transactions in which more than fifty percent (50%) of the voting
power of the Company is disposed of, provided that this subsection (ii) shall
not apply to a merger effected exclusively for the purpose of changing the
domicile of the Corporation.

               (b)  The covenants set forth in Sections 2.1, 2.2, 2.3 and 2.4
shall terminate as to each Holder and be of no further force or effect when the
Company first becomes subject to the periodic reporting requirements of Sections
13 or 15(d) of the Exchange Act, if this occurs earlier than the events
described in Section 2.5(a) above.

     3.   Miscellaneous.
          -------------
<PAGE>

          3.1  Successors and Assigns.  Except as otherwise provided in this
               ----------------------
Agreement, the terms and conditions of this Agreement shall inure to the benefit
of and be binding upon the respective permitted successors and assigns of the
parties (including transferees of any of the Series A Preferred Stock, Series B
Preferred Stock, or Series C Preferred Stock or any Common Stock issued upon
conversion thereof).  Any Investor may assign its rights and obligations under
this Agreement to any of its affiliates or successors so long as such affiliate
or successor agrees to be bound by the terms of this Agreement.  Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

          3.2  Amendments and Waivers.  Any term of this Agreement may be
               ----------------------
amended or waived only with the written consent of (a) the Company, (b) the
holders of a majority of the Company's Series A Preferred Stock then
outstanding, (c) the holders of a majority of the Company's Series B Preferred
Stock and (d) the holders of a majority of the Company's Series C Preferred
Stock, not including the Common Holders' Stock; provided, however, that if such
amendment has the effect of affecting the Common Holders' Stock (i) in a manner
different than securities issued to the Investors and (ii) in a manner adverse
to the interests of the holders of the Common Holders' Stock, then such
amendment shall require the consent of the holder or holders of a majority of
the Common Holders' Stock.  Any amendment or waiver effected in accordance with
this paragraph shall be binding upon each holder of any Registrable Securities
then outstanding, each future holder of all such Registrable Securities, and the
Company.

          3.3  Notices.  Unless otherwise provided, any notice required or
               -------
permitted by this Agreement shall be in writing and shall be deemed sufficient
upon delivery, when delivered personally or by overnight courier or sent by
telegram or fax, or one hundred twenty (120) hours after being deposited in the
U.S. mail, as certified or registered mail, with postage prepaid, and addressed
to the party to be notified at such party's address or fax number as set forth
on the signature page on Exhibit A hereto or as subsequently modified by written
                         ---------
notice.

          3.4  Severability.  If one or more provisions of this Agreement are
               ------------
held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith.  In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of the Agreement shall be enforceable in accordance with its terms.

          3.5  Governing Law.  This Agreement and all acts and transactions
               -------------
pursuant hereto shall be governed, construed and interpreted in accordance with
the laws of the State of Delaware, without giving effect to principles of
conflicts of laws.

          3.6  Counterparts.  This Agreement may be executed in two or more
               ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
<PAGE>

          3.7  Titles and Subtitles.  The titles and subtitles used in this
               --------------------
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

          3.8  Aggregation of Stock.  All shares of the Preferred Stock held
               --------------------
or acquired by affiliated entities or persons shall be aggregated together for
the purpose of determining the availability of any rights under this Agreement.

          3.9  Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES ITS
               --------------------
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF ANY OF THE AGREEMENTS, THE STOCK OR THE COMMON STOCK, OR THE SUBJECT MATTER
HEREOF OR THEREOF.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING
OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS.  THIS SECTION 3.9 HAS BEEN FULLY DISCUSSED BY EACH OF THE
PARTIES HERETO AND THESE PROVISIONS SHALL NOT BE SUBJECT TO ANY EXCEPTIONS.
EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS
REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
SUPPLEMENTS OR MODIFICATIONS TO (OR ASSIGNMENTS OF) THIS AGREEMENT.  IN THE
EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL
(WITHOUT A JURY) BY THE COURT.

          3.10 Amendment and Restatement.  Effective upon the closing of the
               -------------------------
sale and issuance of the Series C Preferred Stock pursuant to the Purchase
Agreement, all provisions of, rights granted and covenants made in the Old
Investors' Rights Agreement are hereby waived, released and terminated in their
entirety and shall have no further force or effect whatsoever.  The rights and
covenants contained in this agreement set forth the sole and entire agreement
among the Company, the investors, and the common holders on the subject matter
hereof and supersede any and all rights granted or covenants made under any
prior agreement with respect to the subject matter hereof including the Old
Investors' Rights Agreement.  Notwithstanding the foregoing, this Amendment does
not supersede, and is subject to, any notice and waiver of notice of
registration rights executed by a party hereto before, on or after the date of
this Agreement.

          3.11 Attorneys' Fees.  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.
<PAGE>

                           [Signature Page Follows]
<PAGE>

     The parties have executed this Onvia.com, Inc. Second Amended and Restated
Investors' Rights Agreement as of the date first above written.

                                    COMPANY:

                                    ONVIA.COM, INC.,
                                    a Washington corporation

                                    By: /s/ Glenn Ballman
                                        ----------------------------

                                    Name: __________________________
                                                   (print)
                                    Title:__________________________

                                    Address: 1000 Dexter Avenue
                                             Suite 400
                                             Seattle, WA 98104

                [COUNTERPART SIGNATURE PAGE TO ONVIA.COM, INC.
           SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

                                    INVESTORS:

                                    MOHR, DAVIDOW VENTURES V, L.P.

                                    By: Fifth MDV Partners, LLC
                                        Its General Partner

                                    By: /s/
                                       ---------------------------------
                                                    Member

                                    MOHR, DAVIDOW VENTURES V, L.P. as nominee
                                    for MDV Entrepreneurs' Network Fund II (A),
                                    L.P. and MDV Entrepreneurs' Network Fund II
                                    (B), L.P.

                                    By: Fifth MDV Partners, LLC
                                        Its General Partner

                                    By: /s/
                                       ---------------------------------
                                                     Member

                [COUNTERPART SIGNATURE PAGE TO ONVIA.COM, INC.
           SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

                                    INVESTORS:

                                    INTERNET CAPITAL GROUP, INC.

                                    By: /s/
                                        -----------------------------------
                                          Kenneth A. Fox, Managing Director

                                    GE CAPITAL EQUITY
                                    INVESTMENTS, INC.

                                    By: /s/
                                        -----------------------------------

                                    Its: __________________________________

                                    RIT VENTURES I LLC

                                    By: /s/
                                        -----------------------------------

                                    Its: __________________________________

                [COUNTERPART SIGNATURE PAGE TO ONVIA.COM, INC.
           SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

                                    SERIES A INVESTORS:

                                    _______________________________________
                                    (Print Name of Purchaser)

                                    By: ___________________________________

                                    Name: _________________________________
                                                     (Print Name)

                                    Title: ________________________________

                                    Address: ______________________________
                                             ______________________________
                                             ______________________________

                [COUNTERPART SIGNATURE PAGE TO ONVIA.COM, INC.
           SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

                                    INVESTORS:

                                    _______________________________________
                                    (Print Name of Purchaser)

                                    By: ___________________________________

                                    Name: _________________________________
                                                     (Print Name)

                                    Title: ________________________________

                                    Address: ______________________________
                                             ______________________________
                                             ______________________________

                                    Fax:     ______________________________

                [COUNTERPART SIGNATURE PAGE TO ONVIA.COM, INC.
           SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

                                    COMMON HOLDERS:

                                    __________________________________________
                                    (Print Name of Common Holder)

                                    By: ______________________________________
                                                     Signature

                                    Address: _________________________________
                                             _________________________________
                                             _________________________________

                [COUNTERPART SIGNATURE PAGE TO ONVIA.COM, INC.
           SECOND AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT]
<PAGE>

                                   EXHIBIT A
                                   ---------

                                   INVESTORS
                                   ---------

Mohr, Davidow Ventures V, L.P.                 Arnold Blinn
2775 Sand Hill Road                            9401 N.E. 27/th/ Street
Suite 240                                      Bellevue, WA 98004
Menlo Park, CA 94025
                                               Will Poole
Mohr, Davidow Ventures V, L.P.                 4050 134/th/ Avenue N.E.
as nominee for MDV Entrepreneurs'              Bellevue, WA 98005
Network Fund II (A), L.P. and MDV
Entrepreneurs' Network Fund II (B), L.P.       David Bell
                                               Warburg Dillon & Read
Stanford University                            677 Washington Blvd.
Attn: Carol Gilmer                             Stamford, CT 06901
Stanford, CA 94305
                                               Allan Adler
Internet Capital Group, Inc.                   c/o MSI Consulting Group
44 Montgomery Street                           4700 42nd Avenue SW, Suite 400
Suite 3705                                     Seattle, WA 98116
San Francisco, CA 94104
                                               George Baker
GE Capital Equity Investments, Inc.            c/o Ovation Communications
120 Long Ridge Road                            Nicholson House
Stamford, CT 06927                             Nicholson Walk
                                               Maidenhead
Allen & Co.                                    Berkshire SL61RQ
711 5/th/ Avenue                               United Kingdom
New York, NY 10022
                                               Anson Brooks
Riverside Holdings II, L.P.                    2009 Broadmoor Drive East
One Atlantic Street, 4/th/ Floor               Seattle, WA 98112
Stamford, CT 06901
                                               Tim Buckley
Gary Meehan                                    c/o Visio
Suite 212 - 1008 Hower Street                  520 Pike Street, Ste. 1800
Vancouver, B.C.                                Seattle, WA 98101
V6B 2X1
                                               C&H Associates
Jayson Carmichael                              Clinton T. Mead, Manager
P.O. Box 38088                                 P.O. Box 3946
King Edward Mall                               Bellevue, WA 98009
Vancouver, BC
V5Z 4L9                                        Thomas Cable
                                               9623 S.E. 16/th/
Mark Calvert                                   Bellevue, WA 98004
Suite 302 - 209 1/2 1st Avenue
Seattle, WA 98104                              Jeff Canin
                                               9604 11/th/ Avenue N.E.
Brian Hilgendorf                               Kirkland, WA 98033
15412 29/th/ Avenue, S.E.
Mill Creek, WA 98012
<PAGE>

David W. Chase                       Cascadia Capital
6309 N.E. 138/th/ Place              5350 Carillon Point
Kirkland, WA 98034                   Kirkland, WA 98033

Charles deLaChappelle                William W. Ericson
3206 Home Drive                      4750 Carillon Point
Yakima, WA 98902                     Kirkland, WA 98033

Rowland Hanson                       Christopher J. Hurley
15127 N.E. 24/th/, Suite 111         4750 Carillon Point
Redmond, WA 98052                    Kirkland, WA 98033

Peter Joers                          Glenn Ballman
8819 N.E. 14/th/                     209 1/2 1/st/ Avenue, Ste. 302
Clyde Hill, WA 98004                 Seattle, WA 98104

Madrona Investment Group             Internet Capital Group
c/o Tom Alberg                       435 Devon Park Drive
1000 2/nd/ Avenue, Ste. 3700         800 Safeguard Bldg.
Seattle, WA 98104                    Wayne, PA 19087

Oki Enterprises, LLC                 Van Wagoner Funds
10838 Main Street                    345 California Street, Ste. 2450
Bellevue, WA 98004                   San Francisco, CA 94104

Mike Pickett                         Amerindo Technology Growth Fund II
4640 Admiralty Way, 5/th/ Fl         (c/o Amerindo Investments Advisors, Inc.)
Marina del Rey, CA 90292             43 Upper Grosvenor Street
                                     London W1X 9PG UK
Scott Sandell
Park Hyatt, S.F.                     Emeric McDonald
c/o NEA                              One Embarcadero, #2300
33 Batley Street                     San Francisco, CA 94104
San Francisco, CA 94111
                                     Aman Ventures
Martin Tobias                        10539 Bellagio Road
c/o Encoding.com                     Los Angeles, CA 90077
3406 Union E.
Seattle, WA 98122                    Comdisco, Inc.
                                     6111 North River Road
Grosvenor Select LP                  Rosemont, IL 60018
c/o C. Bowdoin Train                 Attn: Jill Hanses
1717 Pennsylvania Ave., Ste. 225
Washington D.C. 20006                Credit Suisse First Boston
                                     Venture Fund I, L.P.
Wally Walker                         2400 Hanover Street
c/o Seattle Sonics                   Palo Alto, CA 94304
490 Fifth Avenue, North
Seattle, WA 98109                    William Blair & Company
                                     222 W. Adams
VLGI 1999                            Chicago, IL 60606
2800 Sand Hill Road
Menlo Park, CA                       Vertex Capital II LLC
                                     150 W. Lake Street
                                     Wayzata, MN 55391
<PAGE>

Access Technology Partners, L.P.       Anthony Cuilla
One Bush Street, 12/th/ Floor          1080 Sunshine Circle
San Francisco, CA 94104                Danville, CA 94506

Bayview 99 I, L.P.                     James Stableford
555 California Street, Ste. 2600       (c/o Amerindo Investments Advisors, Inc.)
San Francisco, CA 94104                43 Upper Grosvenor Street
Attn: Jennifer Sherrill                London W1X 9PG UK

Bayview 99 II, L.P.                    H&Q EemployeeVenture Fund 2000, L.P.
555 California Street, Ste. 2600       One Bush Street, 12/th/ Floor
San Francisco, CA 94104                San Francisco, CA 94104
Attn: Jennifer Sherrill
                                       Joaquin Garcia-Larrieu
RIT Ventures, L.L.C.
1 Atomic Street, 4/th/ Floor           William S. Slattery
Stamford, CT 06901
                                       Gordon Empey
Matthew O. Fitzmaurice                 4750 Carillon Point
150 W. Lake Street                     Kirkland, WA 98033
Wayzata, MN 55391
J. Makr and Norma Calvert              Access Technology Partners Brokers Fund,
13208-136/th/ Avenue NE                L.P.
Kirkland, WA 98034                     One Bush Street, 12/th/ Floor
                                       San Francisco, CA 94104
Mark J. Handfelt
4750 Carillon Point                    Ivan Gaviria
Kirkland, WA 98033                     4750 Carillon Point
                                       Kirkland, WA 98033
Hambrecht & Quist California
One Bush Street, 12/th/ Floor
San Francisco, CA 94104

Van Wagoner Capital Partners
345 California Street, Ste. 2450
San Francisco, CA 94104
<PAGE>

                                   EXHIBIT B
                                   ---------

                                 COMMON HOLDERS
                                 --------------

Glenn Ballman                         Ben Richardson
c/o Onvia.com, Inc.                   1000 Dexter Avenue, Suite 400
1000 Dexter Avenue, Suite 400         Seattle, WA 98104
Seattle, WA 98104
                                      Trevor Orr
Rob Ayer                              1008 Homer Street
c/o Onvia.com, Inc.                   Suite 205
1000 Dexter Avenue, Suite 400         Vancouver, BC V6B 2X1
Seattle, WA 98104
                                      Linda Collings
Kent Patterson                        1008 Homer Street
c/o Onvia.com, Inc.                   Suite 205
1000 Dexter Avenue, Suite 400         Vancouver, BC V6B 2X1
Seattle, WA 98104
                                      Esko Heikkila
Ross Paul                             1008 Homer Street
c/o Onvia.com, Inc.                   Suite 205
1000 Dexter Avenue, Suite 400         Vancouver, BC V6B 2X1
Seattle, WA 98104
                                      Bliss Mott
Eden Clark                            1008 Homer Street
c/o Onvia.com, Inc.                   Suite 205
1000 Dexter Avenue, Suite 400         Vancouver, BC V6B 2X1
Seattle, WA 98104
                                      VLG Investments 1999
Kristen Hamilton                      2800 Sand Hill Road
c/o Onvia.com, Inc.                   Menlo Park, CA
1000 Dexter Avenue, Suite 400
Seattle, WA 98104                     William W. Ericson
                                      4750 Carillon Point
Darren Popoff                         Kirkland, WA 98033
c/o Onvia.com, Inc.
1000 Dexter Avenue, Suite 400         Scott Lees
Seattle, WA 98104                     1000 South Road, Unit 5
                                      Belmont, CA 94002
Andy Fedak
209 1/2 1/st/ Avenue                  Wendy Ayer
Suite 302                             1000 Dexter Avenue, Suite 400
Seattle, WA 98104                     Seattle, WA 98104

Gary Meehan                           Erica Lechner
1008 Homer Street                     1008 Homer Street
Suite 205                             Suite 205
Vancouver, BC V6B 2X1                 Vancouver, BC V6B 2X1

Jill Popoff
1000 Dexter Avenue, Suite 400
Seattle, WA 98104
<PAGE>

                               TABLE OF CONTENTS
                               -----------------
<TABLE>
<CAPTION>
                                                                   Page
                                                                   ----
<S>                                                                <C>
1.  REGISTRATION RIGHTS..........................................     2

  1.1   Definitions..............................................     2
  1.2   Request for Registration.................................     3
  1.3   Company Registration.....................................     4
  1.4   Form S-3 Registration....................................     5
  1.5   Obligations of the Company...............................     5
  1.6   Furnish Information......................................     7
  1.7   Expenses of Registration.................................     7
  1.8   Underwriting Requirements................................     8
  1.9   Delay of Registration....................................     8
  1.10  Indemnification..........................................     9
  1.11  Reports Under Securities Exchange Act of 1934............    11
  1.12  Assignment of Registration Rights........................    11
  1.13  Limitations on Subsequent Registration Rights............    12
  1.14  Market Stand-Off Agreement...............................    12
  1.15  Termination of Registration Rights.......................    13

2.  COVENANTS OF THE COMPANY.....................................    13

  2.1   Delivery of Financial Statements.........................    13
  2.2   Right of First Offer.....................................    14
  2.3   Board Observer Seat......................................    15
  2.4   Use of Proceeds..........................................    15
  2.5   Termination of Covenants.................................    15

3.  MISCELLANEOUS................................................    16

  3.1   Successors and Assigns...................................    16
  3.2   Amendments and Waivers...................................    16
  3.3   Notices..................................................    16
  3.4   Severability.............................................    17
  3.5   Governing Law............................................    17
  3.6   Counterparts.............................................    17
  3.7   Titles and Subtitles.....................................    17
  3.8   Aggregation of Stock.....................................    17
  3.9   Waiver of Jury Trial.....................................    17
  3.10  Amendment and Restatement................................    18
  3.11  Attorney's Fees..........................................    18
</TABLE>

                                       i
<PAGE>

                                ONVIA.COM, INC.

               AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

                               December 20, 1999
<PAGE>

                                ONVIA.COM, INC.
                                ---------------

                       AMENDMENT TO AMENDED AND RESTATED
                       ---------------------------------
                          INVESTORS' RIGHTS AGREEMENT
                          ---------------------------

     This Amendment (the "Amendment") to the Amended and Restated Investors'
                          ---------
Rights Agreement dated as of December 20, 1999 (the "Rights Agreement"), is made
                                                     ----------------
as of February 4, 2000, by and among Onvia.com, Inc., a Washington corporation
(the "Company"), Internet Capital Group, Inc. ("ICG") and the undersigned
      -------                                   ----
holders of shares of Common Stock, Series A Preferred Stock, Series B Preferred
Stock and Series C Preferred Stock of the Company (each a "Holder" and together
                                                           ------
the "Holders").  Capitalized terms not otherwise defined herein shall have the
     -------
meaning assigned to them in the Rights Agreement.

     WHEREAS, the Company has determined it to be in the best interest of the
Company to issue to ICG shares of its Common Stock pursuant to a Common Stock
Purchase Agreement dated as of February 4, 2000 (the "Purchase Agreement").
                                                      ------------------

     WHEREAS, pursuant to Section 3.2 of the Rights Agreement, the written
consent of the Company, the holders of a majority of the outstanding shares of
Series A Preferred Stock of the Company, the holders of a majority of the
outstanding shares of Series B Preferred Stock of the Company and the written
consent of a majority of the outstanding shares of Series C Preferred Stock of
the Company (collectively, the "Required Holders") is necessary to amend or
                                ----------------
waive any provision of the Rights Agreement;

     WHEREAS, the Company and the undersigned Holders, constituting the Required
Holders, desire to amend the Rights Agreement as set forth herein in order to
induce ICG to purchase shares of Common Stock of the Company pursuant to the
Purchase Agreement

     NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

     1.   Section 1.1(b) of the Rights Agreement is amended to read in its
entirety as follows:

          (b)  The term "Registrable Securities" means (i) the shares of Common
                         ----------------------
Stock issuable or issued upon conversion of the Series A Preferred Stock, the
Series B Preferred Stock and the Series C Preferred Stock, (ii) the shares of
Common Stock issued pursuant to the Common Stock Purchase Agreement dated as of
February 4, 2000 by and between the Company and Internet Capital Group, Inc.,
(iii) the shares of Common Stock issued to the Common Holders (the "Common
                                                                    ------
Holders' Stock"); provided, however, that for the purposes of Section 1.2, 1.4
--------------
or 1.13 the Common Holders' Stock shall not be deemed Registrable Securities and
the Common Holders shall not be deemed Holders, (iv) any other shares of Common
Stock of the Company 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, the
shares listed in (i), (ii) and (iii) and (v) the shares of Common Stock issued
or issuable upon conversion or exercise of securities purchased by Holders
pursuant to any
<PAGE>

right of first offer, right of first refusal or co-sale right set forth in the
Agreements; provided, however, that the foregoing definition shall exclude in
all cases any Registrable Securities sold by a person in a transaction in which
his or her rights under this Agreement are not assigned. Notwithstanding the
foregoing, Common Stock or other securities shall only be treated as Registrable
Securities if and so long as they have not been (A) sold to or through a broker
or dealer or underwriter in a public distribution or a public securities
transaction or (B) sold in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act under Section 4(1)
thereof so that all transfer restrictions, and restrictive legends with respect
thereto, if any, are removed upon the consummation of such sale;

     2.   Except as provided herein, the Rights Agreement shall remain in full
force and effect.  If one or more provisions of this Amendment are held to be
unenforceable under applicable law, such provision shall be excluded from this
Amendment and the balance of this Amendment shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

     3.   Nothing in this Amendment, express or implied, is intended to confer
upon any party, other than the parties hereto, and their respective successors
and assigns, any rights, remedies, obligations or liabilities under or by reason
of this Amendment, except as expressly provided herein.

     4.   This Amendment shall be governed by and construed under the laws of
the State of Delaware, without regard to its principles of conflict of laws.

     5.   This Amendment may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                           [Signature Page Follows]
<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date first above written.

                                    COMPANY:

                                    ONVIA.COM, INC.,
                                    a Washington corporation

                                    By: /s/ Mark T. Calvert
                                        --------------------------------------

                                    Name: ____________________________________
                                                         (print)
                                    Title: ___________________________________

                                    Address: 1000 Dexter Avenue
                                             Suite 400
                                             Seattle, WA 98109

                                    HOLDERS:

                                    __________________________________________
                                    Glenn Ballman

                                    __________________________________________
                                    Rob Ayer

                                    __________________________________________
                                    Kristen Hamilton

                        SIGNATURE PAGE TO AMENDMENT TO
                AMENDED AND RESTATED INVESTORS' RIGHT AGREEMENT
<PAGE>

                                    MOHR, DAVIDOW VENTURES V, L.P.

                                    By:Fifth MDV Partners, LLC
                                    Its General Partner

                                    By: /s/
                                        ----------------------------------------
                                    Member

                                    MOHR, DAVIDOW VENTURES V, L.P. as nominee
                                    for MDV Entrepreneurs' Network Fund II (A),
                                    L.P. and MDV Entrepreneurs' Network Fund II
                                    (B), L.P.

                                    By:Fifth MDV Partners, LLC
                                    Its General Partner

                                    By: /s/
                                        ----------------------------------------
                                    Member

                                    MOHR, DAVIDOW VENTURES V-L, L.P.

                                    By:Fifth MDV Partners, LLC
                                    Its General Partner

                                    By: /s/
                                        ----------------------------------------
                                    Member

                        SIGNATURE PAGE TO AMENDMENT TO
                AMENDED AND RESTATED INVESTORS' RIGHT AGREEMENT
<PAGE>

                                    INTERNET CAPITAL GROUP, INC.

                                    By: /s/
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                                    GE CAPITAL EQUITY INVESTMENTS, INC.

                                    By: /s/
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                                    VAN WAGONER FUNDS

                                    By: /s/
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                                    VAN WAGONER CAPITAL PARTNERS

                                    By: /s/
                                       -----------------------------------------

                                    Name:
                                         ---------------------------------------

                                    Title:
                                          --------------------------------------

                        SIGNATURE PAGE TO AMENDMENT TO
                AMENDED AND RESTATED INVESTORS' RIGHT AGREEMENT<PAGE>

                                                                     Exhibit 4.5

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED
WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO, (ii) AN OPINION
OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF NO-ACTION LETTERS FROM THE
APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING WITH THE PRO
VISIONS OF SECTION 7 OF THIS WARRANT.

                  ONVIA.COM, INC. (f/k/a Megadepot.com, Inc.)

                          WARRANT TO PURCHASE SHARES
                          OF SERIES A PREFERRED STOCK

     THIS CERTIFIES THAT, for value received, COMDISCO, INC. and its assignees
are entitled to subscribe for and purchase that number of the fully paid and
nonassessable shares of Series A Preferred Stock (as adjusted pursuant to
Section 4 hereof, the "Shares") of ONVIA.COM, INC. (f/k/a Megadepot.com, Inc.),
a Washington corporation (the "Company"), as is determined pursuant to the next
paragraph hereof at the price per share as is determined pursuant to the next
paragraph hereof (such price and such other price as shall result, from time to
time, from the adjustments specified in Section 4 hereof is herein referred to
as the "Warrant Price"), subject to the provisions and upon the terms and
conditions hereinafter set forth. As used herein, (a) the term "Series
Preferred" shall mean the Company's presently authorized Series A Preferred
Stock, and any stock into or for which such Series A Preferred Stock may
hereafter be converted or exchanged, and after the automatic conversion of the
Series A Preferred Stock to Common Stock shall mean the Company's Common Stock,
(b) the term "Date of Grant" shall mean August 5, 1999, and (c) the term "Other
Warrants" shall mean any other warrants issued by the Company in connection with
the transaction with respect to which this Warrant was issued, and any warrant
issued upon transfer or partial exercise of or in lieu of this Warrant. The term
"Warrant" as used herein shall be deemed to include Other Warrants unless the
context clearly requires otherwise.

          The number of Shares granted pursuant to this Warrant shall be the
nearest whole number obtained by dividing $600,000 by the Exercise Price. The
Exercise Price shall be determined according to subparagraphs (A), (B), (C) or
(D) below:

               (A)  Subject to subparagraphs (B), (C) and (D) below, if, on or
prior to October 31, 1999, the Company completes a private offering of its
equity securities, the aggregate gross proceeds from which exceed $5,000,000
(whether in one transaction or in a series of transactions after the date of
this Warrant and excluding the conversion of debt to equity) (a "Qualified
Financing"), then the Exercise Price shall be determined as follows:

                         Exercise Price = X + (A/B) (Y-X)

                         Y =  The product obtained by multiplying .80 times the
                              lesser of (i) the price per share of equity
                              securities (expected to be Series B Preferred
                              Stock) sold in the Qualified Financing (the
                              "Qualified Valuation") and (ii) the quotient
                              obtained by dividing 300,000,000 by the
<PAGE>

                              number of shares (on a common stock equivalent
                              basis) of the Company outstanding immediately
                              after the closing of the Qualified Financing
                              (assuming the exercise or conversion into common
                              stock of the Company of all outstanding warrants,
                              options, convertible securities, and other rights
                              to acquire common stock of the Company);

                         A=   2;and

                         B =  The number of months (rounded to the nearest whole
                              number) which have elapsed from May 1, 1999, to
                              the date of the closing of the Qualified
                              Financing.

               (B)  Notwithstanding subparagraph (A) above, if the Warrant is
     exercised after December 31, 1999 and if the Exercise Price calculated in
     subparagraph (A) exceeds the quotient obtained by dividing 100,000,000 by
     the number of shares (on a common stock equivalent basis) of the Company
     outstanding immediately after the closing of the Qualified Financing
     (assuming the exercise or conversion into common stock of the Company of
     all outstanding warrants, options, convertible securities, and other rights
     to acquire common stock of the Company) (the "Adjusted Valuation") and if
     the Company has not signed up at least 700,000 customer members by December
     31, 1999, then the Exercise Price shall be the Adjusted Valuation. The
     Company shall deliver to Comdisco, Inc. a certificate certifying as to the
     number of customer members as of December 31, 1999, as promptly as possible
     and in no event later than January 15, 2000.

               (C)  Notwithstanding subparagraph (A) above, if the Warrant is
     exercised (i) after the closing of a Qualified Financing, but on or prior
     to December 31, 1999, and (ii) in connection with a merger, acquisition or
     sale of all or substantially all of the assets of the Company (the "Merger
     Event") where the Acquisition Valuation (as defined below) is less than the
     Qualified Valuation, then the Exercise Price shall be the Adjusted
     Valuation. For purposes of this provision, the term "Acquisition Valuation"
     means the quotient obtained by dividing the aggregate consideration
     received by the Company in the Merger Event by the number of shares (on a
     common stock equivalent basis) of the Company outstanding immediately prior
     to the closing of such Merger Event (assuming the exercise or conversion
     into common stock of the Company of all outstanding warrants, options,
     convertible securities, and other rights to acquire common stock of the
     Company)

               (D)  If the Company does not complete the Qualified Financing on
or prior to October 31, 1999, or if this Warrant is exercised on or prior to
October 31, 1999 and the Company has not completed the Qualified Financing, then
the Exercise Price shall be $1.17.

     1.   Term. The purchase right represented by this Warrant is exercisable,
          ----
in whole or in part, at any time and from time to time from the Date of Grant
through the later of (i) ten (10) years after the Date of Grant or (ii) five (5)
years after the closing of the Company's initial public offering of its

                                      -2-
<PAGE>

Common Stock ("IPO") effected pursuant to a Registration Statement on Form S-i
(or its successor) filed under the Securities Act of 1933, as amended (the
"Act"), provided that if there is no IPO within ten (10) years of the Grant
Date, then this Warrant shall terminate ten (10) years after the Date of Grant.
This Warrant will automatically and without further action become a warrant to
purchase shares of the Company's Common Stock, subject to all of the terms and
provisions of this Warrant, upon the effectiveness of the Registration Statement
filed by the Company in connection with its IPO.

     2.   Method of Exercise; Payment; Issuance of New Warrant. Subject to
          ----------------------------------------------------
Section 1 hereof, the purchase right represented by this Warrant may be
exercised by the holder hereof, in whole or in part and from time to time, at
the election of the holder hereof, by (a) the surrender of this Warrant (with
the notice of exercise substantially in the form attached hereto as Exhibit A-i
duly completed and executed) at the principal office of the Company and by the
payment to the Company, by certified or bank check, or by wire transfer to an
account designated by the Company (a "Wire Transfer") of an amount equal to the
then applicable Warrant Price multiplied by the number of Shares then being
purchased; (b) if in connection with a registered public offering of the
Company's securities, the surrender of this Warrant (with the notice of exercise
form attached hereto as Exhibit A-2 duly completed and executed) at the
principal office of the Company together with notice of arrangements reasonably
satisfactory to the Company for payment to the Company either by certified or
bank check or by Wire Transfer from the proceeds of the sale of shares to be
sold by the holder in such public offering of an amount equal to the then
applicable Warrant Price per share multiplied by the number of Shares then being
purchased; or (c) exercise of the "net issuance" right provided for in Section
10.2 hereof. The person or persons in whose name(s) any certificate(s)
representing shares of Series Preferred shall be issuable upon exercise of this
Warrant shall be deemed to have become the holder(s) of record of, and shall be
treated for all purposes as the record holder(s) of, the shares represented
thereby (and such shares shall be deemed to have been issued) immediately prior
to the close of business on the date or dates upon which this Warrant is
exercised. In the event of any exercise of the rights represented by this
Warrant, certificates for the shares of stock so purchased shall be delivered to
the holder hereof as soon as possible and in any event within thirty (30) days
after such exercise and, unless this Warrant has been fully exercised or
expired, a new Warrant representing the portion of the Shares, if any, with
respect to which this Warrant shall not then have been exercised shall also be
issued to the holder hereof as soon as possible and in any event within such
thirty-day period; provided, however, at such time as the Company is subject to
the reporting requirements of the Securities Exchange Act of 1934, as amended,
if requested by the holder of this Warrant, the Company shall cause its transfer
agent to deliver the certificate representing Shares issued upon exercise of
this Warrant to a broker or other person (as directed by the holder exercising
this Warrant) within the time period required to settle any trade made by the
holder after exercise of this Warrant.

     3.   Stock Fully Paid; Reservation of Shares. All Shares that may be issued
          ---------------------------------------
upon the exercise of the rights represented by this Warrant will, upon issuance
pursuant to the terms and conditions herein, be fully paid and nonassessable,
and free from all taxes, liens and charges with respect to the issue thereof.
During the period within which the rights represented by this Warrant may be
exercised, the Company will at all times have authorized, and reserved for the
purpose of the issue upon exercise of the purchase rights evidenced by this
Warrant, a sufficient number of shares of its Series Preferred to provide for
the exercise of the rights represented by this Warrant and a sufficient number
of shares of its Common Stock to provide for the conversion of the Series
Preferred into Common Stock.

                                      -3-
<PAGE>

     4.   Adjustment of Warrant Price and Number of Shares. The number and kind
          ------------------------------------------------
of securities purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to adjustment from time to time upon the occurrence of
certain events, as follows:

          (a)  Reclassification or Merger. In case of any reclassification or
               --------------------------
change of securities of the class issuable upon exercise of this Warrant (other
than a change in par value, or from par value to no par value, or from no par
value to par value, or as a result of a subdivision or combination), or in case
of any merger of the Company with or into another corporation (other than a
merger with another corporation in which the Company is the acquiring and the
surviving corporation and which does not result in any reclassification or
change of outstanding securities issuable upon exercise of this Warrant), or in
case of any sale of all or substantially all of the assets of the Company, the
Company, or such successor or purchasing corporation, as the case may be, shall
duly execute and deliver to the holder of this Warrant a new Warrant (in form
and substance satisfactory to the holder of this Warrant), or the Company shall
make appropriate provision without the issuance of a new Warrant, so that the
holder of this Warrant shall have the right to receive, at a total purchase
price not to exceed that payable upon the exercise of the unexercised portion of
this Warrant, and in lieu of the shares of Series Preferred theretofore issuable
upon exercise of this Warrant, (i) the kind and amount of shares of stock, other
securities, money and property receivable upon such reclassification, change,
merger or sale by a holder of the number of shares of Series Preferred then
purchasable under this Warrant, or (ii) in the case of such a merger or sale in
which the consideration paid consists all or in part of assets other than
securities of the successor or purchasing corporation, at the option of the
Holder of this Warrant, the securities of the successor or purchasing
corporation having a value at the time of the transaction equivalent to the
valuation of the Series Preferred at the time of the transaction. Any new
Warrant shall provide for adjustments that shall be as nearly equivalent as may
be practicable to the adjustments provided for in this Section 4. The provisions
of this subparagraph (a) shall similarly apply to successive reclassifications,
changes, mergers and transfers.

          (b)  Subdivision or Combination of Shares. If the Company at any time
               ------------------------------------
while this Warrant remains outstanding and unexpired shall subdivide or combine
its outstanding shares of Series Preferred, the Warrant Price shall be
proportionately decreased and the number of Shares issuable hereunder shall be
proportionately increased in the case of a subdivision and the Warrant Price
shall be proportionately increased and the number of Shares issuable hereunder
shall be proportionately decreased in the case of a combination.

          (c)  Stock Dividends and Other Distributions. If the Company at any
               ---------------------------------------
time while this Warrant is outstanding and unexpired shall (i) pay a dividend
with respect to Series Preferred payable in Series Preferred, then the Warrant
Price shall be adjusted, from and after the date of determination of
shareholders entitled to receive such dividend or distribution, to that price
determined by multiplying the Warrant Price in effect immediately prior to such
date of determination by a fraction (A) the numerator of which shall be the
total number of shares of Series Preferred outstanding immediately prior to such
dividend or distribution, and (B) the denominator of which shall be the total
number of shares of Series Preferred outstanding immediately after such dividend
or distribution; or (ii) make any other distribution with respect to Series
Preferred (except any distribution specifically provided for in Sections 4(a)
and 4(b)), then, in each such case, provision shall be made by the Company such
that the holder of this

                                      -4-
<PAGE>

Warrant shall receive upon exercise of this Warrant a proportionate share of any
such dividend or distribution as though it were the holder of the Series
Preferred (or Common Stock issuable upon conversion thereof) as of the record
date fixed for the determination of the shareholders of the Company entitled to
receive such dividend or distribution.

          (d)  Adjustment of Number of Shares. Upon each adjustment in the
               ------------------------------
Warrant Price, the number of Shares of Series Preferred purchasable hereunder
shall be adjusted, to the nearest whole share, to the product obtained by
multiplying the number of Shares purchasable immediately prior to such
adjustment in the Warrant Price by a fraction, the numerator of which shall be
the Warrant Price immediately prior to such adjustment and the denominator of
which shall be the Warrant Price immediately thereafter.

          (e)  Antidilution Rights. The other antidilution rights, if any,
               -------------------
applicable to the Shares of Series Preferred purchasable hereunder are set forth
in the Company's articles of incorporation, as amended through the Date of
Grant, a true and complete copy of which is attached hereto as Exhibit B (the
"Charter"). Such antidilution rights shall not be restated, amended, modified or
waived in any manner that is adverse to the holder hereof without such holder's
prior written consent. The Company shall promptly provide the holder hereof with
any restatement, amendment, modification or waiver of the Charter promptly after
the same has been made.

     5.   Notice of Adjustments. Whenever the Warrant Price or the number of
          ---------------------
Shares purchasable hereunder shall be adjusted pursuant to Section 4 hereof, the
Company shall make a certificate signed by its chief financial officer setting
forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated, and the
Warrant Price and the number of Shares purchasable hereunder after giving effect
to such adjustment, and shall cause copies of such certificate to be mailed
(without regard to Section 13 hereof, by first class mail, postage prepaid) to
the holder of this Warrant. In addition, whenever the conversion price or
conversion ratio of the Series Preferred shall be adjusted, the Company shall
make a certificate signed by its chief financial officer setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the
conversion price or ratio of the Series Preferred after giving effect to such
adjustment, and shall cause copies of such certificate to be mailed (without
regard to Section 13 hereof, by first class mail, postage prepaid) to the holder
of this Warrant.

     6.   Fractional Shares. No fractional shares of Series Preferred will be
          -----------------
issued in connection with any exercise hereunder, but in lieu of such fractional
shares the Company shall make a cash payment therefor based on the fair market
value of the Series Preferred on the date of exercise as reasonably determined
in good faith by the Company's Board of Directors.

     7.   Compliance with Act; Disposition of Warrant or Shares of Series
          ---------------------------------------------------------------
Preferred.
---------

          (a)  Compliance with Act. The holder of this Warrant, by acceptance
               -------------------
hereof, agrees that this Warrant, and the shares of Series Preferred to be
issued upon exercise hereof and any Common Stock issued upon conversion thereof
are being acquired for investment and that such holder will not offer, sell or
otherwise dispose of this Warrant, or any shares of Series Preferred to be
issued upon

                                      -5-
<PAGE>

exercise hereof or any Common Stock issued upon conversion thereof except under
circumstances which will not result in a violation of the Act or any applicable
state securities laws. Upon exercise of this Warrant, unless the Shares being
acquired are registered under the Act and any applicable state securities laws
or an exemption from such registration is available, the holder hereof shall
confirm in writing that the shares of Series Preferred so purchased (and any
shares of Common Stock issued upon conversion thereof) are being acquired for
investment and not with a view toward distribution or resale in violation of the
Act and shall confirm such other matters related thereto as may be reasonably
requested by the Company. This Warrant and all shares of Series Preferred issued
upon exercise of this Warrant and all shares of Common Stock issued upon
conversion thereof (unless registered under the Act and any applicable state
securities laws) shall be stamped or imprinted with a legend in substantially
the following form:

"THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION
MAY BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO,
(ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE
COMPANY, THAT SUCH REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF NO-ACTION
LETTERS FROM THE APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE
COMPLYING WITH THE PROVISIONS OF SECTION 7 OF THE WARRANT UNDER WHICH THESE
SECURITIES WERE ISSUED, DIRECTLY OR INDIRECTLY."

     Said legend shall be removed by the Company, upon the request of a holder,
at such time as the restrictions on the transfer of the applicable security
shall have terminated. In addition, in connection with the issuance of this
Warrant, the holder specifically represents to the Company by acceptance of this
Warrant as follows:

          (1)  The holder is aware of the Company's business affairs and
financial condition, and has acquired information about the Company sufficient
to reach an informed and knowledgeable decision to acquire this Warrant. The
holder is acquiring this Warrant for its own account for investment purposes
only and not with a view to, or for the resale in connection with, any
"distribution" thereof in violation of the Act.

          (2)  The holder understands that this Warrant has not been registered
under the Act in reliance upon a specific exemption therefrom, which exemption
depends upon, among other things, the bona fide nature of the holder's
investment intent as expressed herein.

          (3)  The holder further understands that this Warrant must be held
indefinitely unless subsequently registered under the Act and qualified under
any applicable state securities laws, or unless exemptions from registration and
qualification are otherwise available. The holder is aware of the provisions of
Rule 144, promulgated under the Act.

          (4)  The holder is an "accredited investor" as such term is defined in
Rule 501 of Regulation D promulgated under the Act.

                                      -6-
<PAGE>

          (b)  Disposition of Warrant or Shares. With respect to any offer, sale
               --------------------------------
or other disposition of this Warrant or any shares of Series Preferred acquired
pursuant to the exercise of this Warrant prior to registration of such Warrant
or shares, the holder hereof agrees to give written notice to the Company prior
thereto, describing briefly the manner thereof, together with a written opinion
of such holder's counsel, or other evidence, if reasonably satisfactory to the
Company, to the effect that such offer, sale or other disposition may be
effected without registration or qualification (under the Act as then in effect
or any federal or state securities law then in effect) of this Warrant or such
shares of Series Preferred or Common Stock and indicating whether or not under
the Act certificates for this Warrant or such shares of Series Preferred to be
sold or otherwise disposed of require any restrictive legend as to applicable
restrictions on transferability in order to ensure compliance with such law.
Upon receiving such written notice and reasonably satisfactory opinion or other
evidence, the Company, as promptly as practicable but no later than fifteen (15)
days after receipt of the written notice, shall notify such holder that such
holder may sell or otherwise dispose of this Warrant or such shares of Series
Preferred or Common Stock, all in accordance with the terms of the notice
delivered to the Company. If a determination has been made pursuant to this
Section 7(b) that the opinion of counsel for the holder or other evidence is not
reasonably satisfactory to the Company, the Company shall so notify the holder
promptly with details thereof after such determination has been made.
Notwithstanding the foregoing, this Warrant or such shares of Series Preferred
or Common Stock may, as to such federal laws, be offered, sold or otherwise
disposed of in accordance with Rule 144 or I 44A under the Act, provided that
the Company shall have been furnished with such information as the Company may
reasonably request to provide a reasonable assurance that the provisions of Rule
144 or I44A have been satisfied. Each certificate representing this Warrant or
the shares of Series Preferred thus transferred (except a transfer pursuant to
Rule 144 or I44A) shall bear a legend as to the applicable restrictions on
transferability in order to ensure compliance with such laws, unless in the
aforesaid opinion of counsel for the holder, such legend is not required in
order to ensure compliance with such laws. The Company may issue stop transfer
instructions to its transfer agent in connection with such restrictions.

          (c)  Applicability of Restrictions. Neither any restrictions of any
               -----------------------------
legend described in this Warrant nor the requirements of Section 7(b) above
shall apply to any transfer of, or grant of a security interest in, this Warrant
(or the Series Preferred or Common Stock obtainable upon exercise thereof) or
any part hereof (i) to a partner of the holder if the holder is a partnership or
to a member of the holder if the holder is a limited liability company, (ii) to
a partnership of which the holder is a partner or to a limited liability company
of which the holder is a member, or (iii) to any affiliate of the holder if the
holder is a corporation; provided, however, in any such transfer, if applicable,
                         --------- -------
the transferee shall on the Company's request agree in writing to be bound by
the terms of this Warrant as if an original holder hereof.

     8.   Rights as Shareholders: Information. No holder of this Warrant, as
          -----------------------------------
such, shall be entitled to vote or receive dividends or be deemed the holder of
Series Preferred or any other securities of the Company which may at any time be
issuable on the exercise hereof for any purpose, nor shall anything contained
herein be construed to confer upon the holder of this Warrant, as such, any of
the rights of a shareholder of the Company or any right to vote for the election
of directors or upon any matter submitted to shareholders at any meeting
thereof, or to receive notice of meetings, or to receive dividends or
subscription rights or otherwise until this Warrant shall have been exercised
and the Shares purchasable upon the exercise hereof shall have become
deliverable, as provided herein. Notwithstanding

                                      -7-
<PAGE>

the foregoing, the Company will transmit to the holder of this Warrant such
information, documents and reports as are generally distributed to the holders
of any class or series of the securities of the Company concurrently with the
distribution thereof to the shareholders.

     9.    [Reserved]

     10.   Additional Rights.
           -----------------

     10.1  Acquisition Transactions. The Company shall provide the holder of
           ------------------------
this Warrant with at least twenty (20) days' written notice prior to closing
thereof of the terms and conditions of any of the following transactions (to the
extent the Company has notice thereof): (i) the sale, lease, exchange,
conveyance or other disposition of all or substantially all of the Company's
property or business, or (ii) its merger into or consolidation with any other
corporation (other than a wholly-owned subsidiary of the Company), or any
transaction (including a merger or other reorganization) or series of related
transactions, in which more than 50% of the voting power of the Company is
disposed of.

     10.2  Right to Convert Warrant into Stock: Net Issuance.
           --------------------------------------------------

           (a) Right to Convert. In addition to and without limiting the rights
               ----------------
of the holder under the terms of this Warrant, the holder shall have the right
to convert this Warrant or any portion thereof (the "Conversion Right") into
shares of Series Preferred (or Common Stock if the Series Preferred has been
automatically converted into Common Stock) as provided in this Section 10.2 at
any time or from time to time during the term of this Warrant. Upon exercise of
the Conversion Right with respect to a particular number of shares subject to
this Warrant (the "Converted Warrant Shares"), the Company shall deliver to the
holder (without payment by the holder of any exercise price or any cash or other
consideration) that number of shares of fully paid and nonassessable Series
Preferred (or Common Stock if the Series Preferred has been automatically
converted into Common Stock) as is determined according to the following
formula:

     X = B-A
         ---
          Y

     Where:   X =   the number of shares of Series Preferred (or Common Stock if
                    the Series Preferred has been automatically converted to
                    Common Stock) that shall be issued to holder

              Y =   the fair market value of one share of Series Preferred (or
                    Common Stock if the Series Preferred has been automatically
                    converted to Common Stock)

              A =   the aggregate Warrant Price of the specified number of
                    Converted Warrant Shares immediately prior to the exercise
                    of the Conversion Right (i.e., the number of Converted
                    Warrant Shares multiplied by the Warrant Price)

                                      -8-
<PAGE>

          B =       the aggregate fair market value of the specified number of
                    Converted Warrant Shares (i.e., the number of Converted
                    Warrant Shares   multiplied by the fair market value of one
                    Converted Warrant Share)

     No fractional shares shall be issuable upon exercise of the Conversion
Right, and, if the number of shares to be issued determined in accordance with
the foregoing formula is other than a whole number, the Company shall pay to the
holder an amount in cash equal to the fair market value of the resulting
fractional share on the Conversion Date (as hereinafter defined). For purposes
of Section 9 of this Warrant, shares issued pursuant to the Conversion Right
shall be treated as if they were issued upon the exercise of this Warrant.

          (b)  Method of Exercise. The Conversion Right may be exercised by the
               ------------------
holder by the surrender of this Warrant at the principal office of the Company
together with a written statement (which may be in the form of Exhibit A-l or
Exhibit A-2 hereto) specifying that the holder thereby intends to exercise the
Conversion Right and indicating the number of shares subject to this Warrant
which are being surrendered (referred to in Section 10.2(a) hereof as the
Converted Warrant Shares) in exercise of the Conversion Right. Such conversion
shall be effective upon receipt by the Company of this Warrant together with the
aforesaid written statement, or on such later date as is specified therein (the
"Conversion Date"), and, at the election of the holder hereof, may be made
contingent upon the closing of the sale of the Company's Common Stock to the
public in a public offering pursuant to a Registration Statement under the Act
(a "Public Offering"). Certificates for the shares issuable upon exercise of the
Conversion Right and, if applicable, a new warrant evidencing the balance of the
shares remaining subject to this Warrant, shall be issued as of the Conversion
Date and shall be delivered to the holder within thirty (30) days following the
Conversion Date.

          (c)  Determination of Fair Market Value. For purposes of this Section
               ----------------------------------
10.2, "fair market value" of a share of Series Preferred (or Common Stock if the
Series Preferred has been automatically converted into Common Stock) as of a
particular date (the "Determination Date") shall mean:

               (i)  If the Conversion Right is exercised in connection with and
contingent upon a Public Offering, and if the Company's Registration Statement
relating to such Public Offering ("Registration Statement") has been declared
effective by the Securities and Exchange Commission, then the initial "Price to
Public" specified in the final prospectus with respect to such offering.

               (ii) If the Conversion Right is not exercised in connection with
and contingent upon a Public Offering, then as follows:

          (A)  If traded on a securities exchange, the fair market value of the
Common Stock shall be deemed to be the average of the closing prices of the
Common Stock on such exchange over the 30-day period ending five business days
prior to the Determination Date, and the fair market value of the Series
Preferred shall be deemed to be such fair market value of the Common Stock
multiplied by the number of shares of Common Stock into which each share of
Series Preferred is then convertible;

          (B)  If traded on the Nasdaq Stock Market or other over-the-counter
system, the fair

                                      -9-
<PAGE>

market value of the Common Stock shall be deemed to be the average of the
closing bid prices of the Common Stock over the 30-day period ending five
business days prior to the Determination Date, and the fair market value of the
Series Preferred shall be deemed to be such fair market value of the Common
Stock multiplied by the number of shares of Common Stock into which each share
of Series Preferred is then convertible; and

           (C)  If there is no public market for the Common Stock, then fair
market value shall be determined by mutual agreement of the holder of this
Warrant and the Company.

     10.3  Exercise Prior to Expiration. To the extent this Warrant is not
           -------------- -------------
previously exercised as to all of the Shares subject hereto, and if the fair
market value of one share of the Series Preferred is greater than the Warrant
Price then in effect, this Warrant shall be deemed automatically exercised
pursuant to Section 10.2 above (even if not surrendered) immediately before its
expiration. For purposes of such automatic exercise, the fair market value of
one share of the Series Preferred upon such expiration shall be determined
pursuant to Section 10.2(c). To the extent this Warrant or any portion thereof
is deemed automatically exercised pursuant to this Section 10.3, the Company
agrees to promptly notify the holder hereof of the number of Shares, if any, the
holder hereof is to receive by reason of such automatic exercise.

     11.  Representations and Warranties. The Company represents and warrants to
          ------------------------------
the holder of this Warrant as follows:

           (a) This Warrant has been duly authorized and executed by the Company
and is a valid and binding obligation of the Company enforceable in accordance
with its terms, subject to laws of general application relating to bankruptcy,
insolvency and the relief of debtors and the rules of law or principles at
equity governing specific performance, injunctive relief and other equitable
remedies;

           (b) The Shares have been duly authorized and reserved for issuance by
the Company and, when issued in accordance with the terms hereof, will be
validly issued, fully paid and non-assessable;

           (c) The rights, preferences, privileges and restrictions granted to
or imposed upon the Series Preferred and the holders thereof are as set forth in
the Charter, and on the Date of Grant, each share of the Series Preferred
represented by this Warrant is convertible into one share of Common Stock;

           (d) The shares of Common Stock issuable upon conversion of the Shares
have been duly authorized and reserved for issuance by the Company and, when
issued in accordance with the terms of the Charter will be validly issued, fully
paid and nonassessable;

           (e) The execution and delivery of this Warrant are not, and the
issuance of the Shares upon exercise of this Warrant in accordance with the
terms hereof will not be, inconsistent with the Company's Charter or by-laws, do
not and will not contravene any law, governmental rule or regulation, judgment
or order applicable to the Company, and do not and will not conflict with or
contravene any provision of, or constitute a default under, any indenture,
mortgage, contract or other instrument of which the Company is a party or by
which it is bound or require the consent or approval of,

                                      -10-
<PAGE>

the giving of notice to, the registration or filing with or the taking of any
action in respect of or by, any Federal, state or local government authority or
agency or other person, except for the filing of notices pursuant to federal and
state securities laws, which filings will be effected by the time required
thereby; and

          (f)  There are no actions, suits, audits, investigations or
proceedings pending or, to the knowledge of the Company, threatened against the
Company in any court or before any governmental commission, board or authority
which, if adversely determined, will have a material adverse effect on the
ability of the Company to perform its obligations under this Warrant.

          (g)  The number of shares of Common Stock of the Company outstanding
on the date hereof, on a fully diluted basis (assuming the conversion of all
outstanding convertible securities and the exercise of all outstanding options
and warrants (other than a warrant to purchase Series A Preferred Stock issued
to Dominion Capital Management LLC)), does not exceed 27,718,604 shares.

     12.  Modification and Waiver. This Warrant and any provision hereof may be
          -----------------------
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

     13.  Notices. Any notice, request, communication or other document required
          -------
or permitted to be given or delivered to the holder hereof or the Company shall
be delivered, or shall be sent by certified or registered mail, postage prepaid,
to each such holder at its address as shown on the books of the Company or to
the Company at the address indicated therefor on the signature page of this
Warrant.

     14.  Binding Effect on Successors. This Warrant shall be binding upon any
          ----------------------------
corporation succeeding the Company by merger, consolidation or acquisition of
all or substantially all of the Company's assets, and all of the obligations of
the Company relating to the Series Preferred issuable upon the exercise or
conversion of this Warrant shall survive the exercise, conversion and
termination of this Warrant and all of the covenants and agreements of the
Company shall inure to the benefit of the successors and assigns of the holder
hereof.

     15.  Lost Warrants or Stock Certificates. The Company covenants to the
          -----------------------------------
holder hereof that, upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant or any
stock certificate and, in the case of any such loss, theft or destruction, upon
receipt of an indemnity reasonably satisfactory to the Company, or in the case
of any such mutilation upon surrender and cancellation of such Warrant or stock
certificate, the Company will make and deliver a new Warrant or stock
certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated
Warrant or stock certificate.

     16.  Descriptive Headings. The descriptive headings of the several
          --------------------
paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. The language in this Warrant shall be
construed as to its fair meaning without regard to which party drafted this
Warrant.

     17.  Governing Law. This Warrant shall be construed and enforced in
          -------------
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Washington.

                                      -11-
<PAGE>

     18.  Survival of Representations, Warranties and Agreements. All
          ------------------------------------------------------
representations and warranties of the Company and the holder hereof contained
herein shall survive the Date of Grant, the exercise or conversion of this
Warrant (or any part hereof) or the termination or expiration of rights
hereunder. All agreements of the Company and the holder hereof contained herein
shall survive indefinitely until, by their respective terms, they are no longer
operative.

     19.  Remedies. In case any one or more of the covenants and agreements
          --------
contained in this Warrant shall have been breached, the holders hereof (in the
case of a breach by the Company), or the Company (in the case of a breach by a
holder), may proceed to protect and enforce their or its rights either by suit
in equity and/or by action at law, including, but not limited to, an action for
damages as a result of any such breach and/or an action for specific performance
of any such covenant or agreement contained in this Warrant.

     20.  No Impairment of Rights. The Company will not, by amendment of its
          -----------------------
Charter or through any other means, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
action as may be necessary or appropriate in order to protect the rights of the
holder of this Warrant against impairment.

     21.  Severability. The invalidity or unenforceability of any provision of
          ------------
this Warrant in any jurisdiction shall not affect the validity or enforceability
of such provision in any other jurisdiction, or affect any other provision of
this Warrant, which shall remain in full force and effect.

     22.  Recovery of Litigation Costs. If any legal action or other proceeding
          ----------------------------
is brought for the enforcement of this Warrant, or because of an alleged
dispute, breach, default, or misrepresentation in connection with any of the
provisions of this Warrant, the successful or prevailing party or parties shall
be entitled to recover reasonable attorneys' fees and other costs incurred in
that action or proceeding, in addition to any other relief to which it or they
may be entitled.

     23.  Entire Agreement; Modification. This Warrant constitutes the entire
          ------------------------------
agreement between the parties pertaining to the subject matter contained in it
and supersedes all prior and contemporaneous agreements, representations, and
undertakings of the parties, whether oral or written, with respect to such
subject matter.

     24.  "Market Standoff' Agreement. Each holder of this Warrant hereby agrees
           --------------------------
that, during the period of duration (up to, but not exceeding, one hundred
eighty (180) days) specified by the Company and an underwriter of Common Stock
or other securities of the Company, following the effective date of a
registration statement of the Company filed under the Securities Act, it shall
not, to the extent requested by the Company and such underwriter, 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 (other than to donees who agree to be similarly bound) any securities of the
Company held by it at any time during such period except Common Stock included
in such registration; provided, however, that:

                                      -12-
<PAGE>

          (a)  such agreement shall be applicable only with respect to the first
such registration statement of the Company which covers Common Stock (or other
securities) to be sold on its behalf to the public in an underwritten offering;
and

          (b)  all officers and directors of the Company, all one-percent
securityholders, and all other persons with registration rights enter into
similar agreements.

          In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the shares of each Holder (and the
shares or securities of every other person subject to the foregoing restriction)
until the end of such period, and each holder of this Warrant agrees that, if so
requested, such holder will execute an agreement in the form provided by the
underwriter containing the terms which are essentially consistent with the
provisions of this Section 24.

          Notwithstanding the foregoing, the obligations described in this
Section 24 shall not apply to a registration relating solely to employee benefit
plans on Form S-I or Form S-8 or similar forms which may be promulgated in the
future, or a registration relating solely to an SEC Rule 145 transaction on Form
S-4 or similar forms which may be promulgated in the future.
[Signature page follows]

                                      -13-
<PAGE>

     The Company has caused this Warrant to be duly executed and delivered as of
the Date of Grant specified above.

                                   ONVIA.COM, INC. (f/k/a Megadepot.com. Inc.),
                                   a Washington corporation

                                   By  /s/ Mark Calvert
                                          --------------------------------------

                                   Title  CFO
                                          --------------------------------------
                                   Address: 209 1/2 First Avenue South Suite 302
                                            Seattle, WA 98104

<PAGE>

                                  EXHIBIT A-1

                              NOTICE OF EXERCISE

To:       ONVIA.COM, INC. (17k/a Megadepot.com, Inc.) (the "Company")

          1.   The undersigned hereby:

               [_]  elects to purchase________ shares of [Series A Preferred
Stock] [Common Stock] of the Company pursuant to the terms of the attached
Warrant, and tenders herewith payment of the purchase price of such shares in
full, or

               [_]  elects to exercise its net issuance rights pursuant to
Section 10.2 of the attached Warrant with respect to Shares of [Series A
Preferred Stock] [Common Stock].

          2.   Please issue a certificate or certificates representing _________
     the undersigned or in such other name or names as are specified below:

                    ______________________________________
                                    (Name)

                    ______________________________________

                    ______________________________________
                                   (Address)

     3.   The undersigned represents that the aforesaid shares are being
acquired for the account of the undersigned for investment and not with a view
to, or for resale in connection with, the distribution thereof and that the
undersigned has no present intention of distributing or reselling such shares,
all except as in compliance with applicable securities laws.

                                             ___________________________________
                                             (Signature)

_______________
(Date)
                                  (Signature)
<PAGE>

                                  EXHIBIT A-2

                              NOTICE OF EXERCISE

To:  ONVIA.COM, INC. (17k/a Megadepot.com, Inc.) (the "Company")

     1.     Contingent upon and effective immediately prior to the closing (the
"Closing") of the Company's public offering contemplated by the Registration
Statement on Form S_, filed ___________, 19__, the undersigned hereby:

     [_]  elects to purchase shares of [Series A Preferred Stock] [Common Stock]
of the Company (or such lesser number of shares as may be sold on behalf of the
undersigned at the Closing) pursuant to the terms of the attached Warrant, or

     [_]  elects to exercise its net issuance rights pursuant to Section 10.2 of
the attached Warrant with respect to ______ Shares of [Series A Preferred Stock]
[Common Stock].

     2.     Please deliver to the custodian for the selling shareholders a stock
certificate representing such shares.

     3.     The undersigned has instructed the custodian for the selling
shareholders to deliver to the Company $______or, if less, the net proceeds due
the undersigned from the sale of shares in the aforesaid public offering. If
such net proceeds are less than the purchase price for such shares, the
undersigned agrees to deliver the difference to the Company prior to the
Closing.

                                             ___________________________________
                                             (Signature)

_______________
(Date)
<PAGE>

                                   EXHIBIT B

                                    CHARTER

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