Document:

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                                                                     EXHIBIT 4.2

              AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

     This Amended and Restated Registration Rights Agreement (the "Agreement"),
dated as of January 26, 2000 is entered into by and among Inventa Corporation, a
California corporation (the "Company") and the holders of the Company's Series A
Preferred Stock listed on Exhibit A attached hereto (collectively, the "Series A
                          ---------
Holders"), the holders of the Company's Series B Preferred Stock listed on
Exhibit B attached hereto (collectively, the "Series B Holders"), the holders of
---------
the Company's Series C Preferred Stock listed on Exhibit C attached hereto
                                                 ---------
(collectively, the "Series C Holders") the holders of the Company's Series D
Preferred Stock listed on Exhibit D attached hereto (collectively, the "Series D
                          ---------
Holders")and the Xtend-Tech Shareholders listed on Exhibit E attached hereto
                                                   ---------
(collectively, the "Xtend-Tech Holders") (the Series A Holders, the Series B
Holders, the Series C Holders, the Series D Holders and the Xtend-Tech Holders
shall collectively be referred to as "Shareholders").

                                R E C I T A L S
                                ---------------

     A.   The Series A Holders, the Series B Holders, the Series C Holders, the
Series D Holders and the Company are parties to the Restated Registration Rights
Agreement dated January 19, 2000.

     B.   The Xtend-Tech Holders and the Company are parties to the Agreement
and Plan of Reorganization as of the date hereof (the "Reorganization
Agreement").

     C.   The execution of this Agreement is in connection with the closing of
the transactions contemplated by the Reorganization Agreement.

     D.   The Shareholders and the Company desire that the transactions
contemplated by the Reorganization Agreement be consummated.

     E.   The Series A Holders, the Series B Holders, the Series C Holders, the
Series D Holders and the Company desire that this Agreement supersede the
Restated Registration Rights Agreement dated January 19, 2000 in its entirety.

     NOW THEREFORE, in consideration of the mutual promises and covenants
hereinafter set forth, the parties hereto agree as follows:

     1.   Certain Definitions. As used in this Agreement, the following terms
          -------------------
shall have the following respective meanings:

          "Commission" shall mean the Securities and Exchange Commission or any
other federal agency at the time administering the Securities Act.

          "Common Stock" shall mean the common stock of the Company.
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          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

          "Holder" shall mean any holder, or an assignee under Section 15
hereof, of outstanding Registrable Securities.

          "Initiating Holders" shall mean any Holders who in the aggregate are
Holders of more than fifty percent (50%) of the outstanding Registrable
Securities.

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

          "Registrable Securities", subject to Sections 5(b) and 6(b) hereof,
shall mean shares of Common Stock (i) issued or issuable pursuant to the
conversion of the Shares, and (ii) issued in respect of securities issued
pursuant to the conversion of the Shares upon any stock split, stock dividend,
recapitalization, substitution, or similar event, and (iii) issued in respect to
securities issued to Xtend-Tech Holders pursuant to the stock exchange
transaction consummated in the Reorganization Agreement; provided, however, that
Registrable Securities shall not include any (a) shares of Common Stock which
have previously been registered, (b) shares of Common Stock which have
previously been sold to the public, or (c) securities which would otherwise be
Registrable Securities held by a Holder who is then permitted to sell all of
such securities within any three (3) month period following the Company's
initial public offering pursuant to Rule 144 if such securities then held by
such Holder constitute less than one percent of the Company's outstanding equity
securities.

          "Registration Expenses" shall mean all expenses (excluding
underwriting discounts and selling commissions) incurred in connection with a
registration under Sections 5, 6 and 8 hereof, including, without limitation,
all registration and filing fees, printing expenses, fees and disbursements of
counsel for the Company, blue sky fees and expenses, and the expense of any
special audits incident to or required by any such registration, and the
reasonable fees and expenses of one counsel for the selling Shareholders (but
excluding the compensation of regular employees of the Company, which shall be
paid in any event by the Company).

          "Restricted Securities" shall mean the securities of the Company
required to bear or bearing the legend set forth in Section 3 hereof.

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

          "Selling Expenses" shall mean all underwriting discounts and selling
commissions applicable to the sale of Registrable Securities.

          "Shares" shall mean shares of the Company's Series A Preferred Stock,
Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and
shares of the Company's Common Stock held by Xtend-Tech Holders.

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     2.   Restrictions on Transferability.  The Restricted Securities held by
          -------------------------------
the Shareholders shall not be transferred except upon the conditions specified
in this Agreement, which conditions are intended to insure compliance with the
provisions of the Securities Act or, in the case of Section 16 hereof, to assist
in an orderly distribution. Each Shareholder will cause any proposed transferee
of Restricted Securities held by that Shareholder to agree to take and hold
those securities subject to the provisions and upon the conditions specified in
this Agreement.

     3.   Restrictive Legend.  Each certificate representing (i) the Shares,
          ------------------
and (ii) shares of the Company's Common Stock issued upon conversion of the
Shares, and (iii) any other securities issued in respect of the Shares, or the
Common Stock issued upon conversion of the Shares, upon any stock split, stock
dividend, recapitalization, merger, consolidation or similar event, shall
(unless otherwise permitted or unless the securities evidenced by such
certificate shall have been registered under the Securities Act) be stamped or
otherwise imprinted with a legend substantially in the following form (in
addition to any legend required under applicable state securities laws):

          THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
          INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
          1933, AS AMENDED, (THE "ACT") OR ANY STATE SECURITIES LAWS.  SUCH
          SHARES MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF SUCH
          REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND
          ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT.
          COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SHARES AND
          RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN
          REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE
          SECRETARY OF THE CORPORATION AT THE PRINCIPAL EXECUTIVE OFFICE OF THE
          CORPORATION.

          Upon request of a holder of such a certificate, the Company shall
remove the foregoing legend from the certificate or issue to such holder a new
certificate therefor free of any transfer legend, if, with such request, the
Company shall have received either the opinion referred to in Section 4(i) or
the "no-action" letter referred to in Section 4(ii) to the effect that any
transfer by such holder of the securities evidenced by such certificate will not
violate the Securities Act and applicable state securities laws, unless any such
transfer legend may be removed pursuant to Rule 144(k), in which case no such
opinion or "no-action" letter shall be required, and provided that the Company
shall not be obligated to remove any such legends prior to the date of the
initial public offering of the Company's Common Stock under the Securities Act.

     4.   Notice of Proposed Transfers.  The holder of each certificate
          ----------------------------
representing Restricted Securities by acceptance thereof agrees to comply in all
respects with the provisions of this Section 4. Prior to any proposed transfer
of any Restricted Securities (other than under circumstances described in
Sections 5, 6 and 8 hereof), the holder thereof shall give written notice to the
Company of such holder's intention to effect such transfer.  Each such notice
shall describe the manner and circumstances of the proposed transfer in
sufficient detail, and shall be accompanied (except in transactions in
compliance with Rule 144 promulgated under the Securities Act or for a transfer
to a holder's spouse, ancestors, descendants or a trust for any of their
benefit, or in

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transactions involving the distribution without consideration of Restricted
Securities by a holder that is a partnership to any of its partners or retired
partners or to the estate of any of its partners or retired partners, or by a
holder that is a trust to any successor trust or successor trustee) by either
(i) a written opinion of legal counsel to the holder who shall be reasonably
satisfactory to the Company, addressed to the Company and reasonably
satisfactory in form and substance to the Company's counsel, to the effect that
the proposed transfer of the Restricted Securities may be effected without
registration under the Securities Act or (ii) a "no-action" letter from the
Commission to the effect that the distribution of such securities without
registration will not result in a recommendation by the staff of the Commission
that action be taken with respect thereto, whereupon the holder of such
Restricted Securities shall be entitled to transfer such Restricted Securities
in accordance with the terms of the notice delivered by such holder to the
Company. Each certificate evidencing the Restricted Securities transferred as
above provided shall bear the restrictive legend set forth in Section 3 above,
except that such certificate shall not bear such restrictive legend after the
date of the Company's initial public offering under the Securities Act if the
opinion of counsel or "no-action" letter referred to above expressly indicates
that such legend is not required in order to establish compliance with the
Securities Act or if such legend is no longer required pursuant to Rule 144(k).

     5.   Demand Registration.
          -------------------

          (a)  Request for Registration.  If the Company shall receive from
               ------------------------
Initiating Holders a written request that the Company effect any registration
with respect to the Registrable Securities, the Company will:

               (i)  promptly given written notice of the proposed registration
to all other Holders; and

               (ii) as soon as practicable, use its diligent best efforts to
effect such registration after January 1, 2000 (including, without limitation,
the execution of an undertaking to file post effective amendments, appropriate
qualification under applicable blue sky or other state securities laws and
appropriate compliance with applicable regulations issued under the Securities
Act) as may be so requested and as would permit or facilitate the sale and
distribution of all or such portion of such Registrable Securities as are
specified in such request, together with all or such portion of the Registrable
Securities of any Holder or Holders joining in such request as are specified in
a written request delivered to the Company within fifteen (15) days after
receipt of such written notice from the Company; provided that the Company shall
not be obligated to effect, or to take any action to effect, any such
registration pursuant to this Section 5:

                    (A)  In any particular jurisdiction in which the Company
would be required to execute a general consent to service of process in
effecting such registration, qualification or compliance, unless the Company is
already subject to service in such jurisdiction and except as may be required by
the Securities Act;

                    (B)  After the Company has effected two (2) such
registrations pursuant to this Section 5(a) and such registrations have been
declared or ordered effective, or withdrawn at the request of the majority of
the Initiating Holders, and the sales of such Registrable Securities have
closed; or

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                    (C)  Within one hundred eighty (180) days of the effective
date of any other registration statement on Form S-1.

          Subject to the foregoing clauses (A), (B) and (C), the Company shall
file a registration statement covering the Registrable Securities so requested
to be registered as soon as practicable, after receipt of the request or
requests of the Initiating Holders; provided, however, that if the Company shall
furnish to such Holders a certificate signed by the President of the Company
stating that in the good faith judgment of the Board of Directors of the
Company, it would be seriously detrimental to the Company and its shareholders
for such registration statement to be filed on or before the time filing would
be required and it is therefore essential to defer the filing of such
registration statement, the Company shall have the right to defer such filing
(but not more than once during any twelve month period) for a period of not more
than ninety (90) days after receipt of the request of the Initiating Holders.

          The registration statement filed pursuant to the request of the
Initiating Holders, may, subject to the provisions of Section 5(b) below,
include other securities of the Company which are held by officers or directors
of the Company or which are held by persons who, by virtue of agreements with
the Company, are entitled to include their securities in any such registration,
but the Company shall have no right to include any of its securities in any such
registration except as provided in Section 5(b) below.

          (b)  Underwriting.  If the 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
Section 5, and the Company shall include such information in the written notice
referred to in Section 5(a)(i) above. The right of any Holder to registration
pursuant to Section 5 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 with respect to such participation and
inclusion) to the extent provided herein. A Holder may elect to include in such
underwriting all or a part of the Registrable Securities he holds.

          If officers or directors of the Company shall request inclusion of
securities of the Company other than Registrable Securities in any registration
pursuant to Section 5, or if holders of securities of the Company who are
entitled by contract with the Company to have securities included in such a
registration (such officers, directors, and other shareholders being
collectively referred to as the "Other Shareholders") request such inclusion,
the Initiating Holders shall, on behalf of all Holders, offer to include the
securities of such Other Shareholders in the underwriting and may condition such
offer on their acceptance of the further applicable provisions of this
Agreement. The Company shall (together with all Holders and Other Shareholders
proposing to distribute their securities through such underwriting) enter into
an underwriting agreement in customary form with the representative of the
underwriter or underwriters (the "Underwriter") selected for such underwriting
by more than fifty percent (50%) of the Initiating Holders and reasonably
acceptable to the Company. Notwithstanding any other provision of this Section
5, if the Underwriter determines that marketing factors require a limitation on
the number of shares to be underwritten, the Underwriter may (subject to the
allocation priority set forth below) limit the number of Registrable Securities
to be included in the registration and underwriting to not less than fifty
percent (50%) of

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the securities which Holders have requested be included therein. The Company
shall so advise all holders of securities requesting registration, and the
number of shares of securities that are entitled to be included in the
registration and underwriting shall be allocated in the following priority:
first, among all Holders of Registrable Securities requesting inclusion (and pro
rata among such holders on the basis of all Registrable Securities then held by
such holders); and second, among all Other Shareholders in proportion, as nearly
as practicable, to the respective amounts of securities which they had requested
to be included in such registration at the time of filing the registration
statement. If any Holder or Other Shareholder disapproves of the terms of any
such underwriting, such holder may elect to withdraw therefrom by written notice
to the Company and the Underwriter. Any Registrable Securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration. If
the Underwriter has not limited the number of Registrable Securities or other
securities to be underwritten, the Company may include its securities for its
own account in such registration if the underwriter so agrees and if the number
of Registrable Securities and other securities which would otherwise have been
included in such registration and underwriting will not thereby be limited.

     6.   Company Registration.
          --------------------

          (a)  If the Company shall determine to register any of its securities
either for its own account or for the account of a security holder or holders
exercising their respective demand registration rights, other than a
registration relating solely to employee benefit plans or a registration
relating solely to a Commission Rule 145 transaction or a registration on any
registration form which does not permit secondary sales or does not include
substantially the same information as would be required to be included in a
registration statement covering the sale of Registrable Securities, the Company
will:

               (i)  promptly give to each Holder written notice thereof (which,
to the extent then known, shall include a list of the jurisdictions in which the
Company intends to attempt to qualify such securities under the applicable blue
sky or other state securities laws); and

               (ii) include in such registration (and any related qualification
under blue sky laws or other compliance), and in any underwriting involved
therein, all of the Registrable Securities specified in a written request or
requests made by any Holder within fifteen (15) days after receipt of the
written notice from the Company described in clause (i) above, except as set
forth in Section 6(b) below. Such written request may specify all or a part of a
Holder's Registrable Securities.

          (b)  Underwriting.  If the registration of which the Company gives
               ------------
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 6(a)(i). In such event the right of any Holder to
registration pursuant to Section 6 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall
(together with the Company and the Other Shareholders distributing their
securities through such underwriting) enter into an underwriting agreement in
customary form with the Underwriter selected for underwriting by the Company.
Notwithstanding any other provision of

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this Section 6, if the Underwriter determines that marketing factors require a
limitation on the number of shares to be underwritten, and (a) if such
registration is the first registered offering of the Company's securities to the
public, the Underwriter may (subject to the allocation priority set forth below)
exclude from such registration and underwriting some or all of the Registrable
Securities which would otherwise be underwritten pursuant hereto, and (b) if
such registration is other than the first registered offering of the sale of the
Company's securities to the public, the Underwriter may (subject to the
allocation priority set forth below) limit the number of Registrable Securities
to be included in the secondary portion of the registration and underwriting to
not less than fifty percent (50%) of the securities which Holders have requested
be included therein. The Company shall so advise all holders of securities
requesting registration, and the number of shares of securities that are
entitled to be included in the registration and underwriting by persons other
than the Company shall be allocated in the following priority: first, to Holders
of Registrable Securities (and pro rata among such holders on the basis of all
Registrable Securities then held by such holders); and second, among all Other
Shareholders in proportion, as nearly as practicable, to the respective amounts
of securities which they had requested to be included in such registration at
the time of filing the registration statement. If any Holder or Other
Shareholder disapproves of the terms of any such underwriting, he may elect to
withdraw therefrom by written notice to the Company and the Underwriter. Any
Registrable Securities or other securities excluded or withdrawn from such
underwriting shall be withdrawn from such registration.

     7.   Expenses of Registration.  All Registration Expenses incurred in
          ------------------------
connection with any registration, qualification or compliance pursuant to this
Agreement shall be borne by the Company, and all Selling Expenses shall be borne
by the holders of the securities so registered pro rata on the basis of the
number of their shares so registered; provided, however, that the Company shall
not be required to pay any Registration Expenses if, as a result of the
withdrawal of a request for registration by Initiating Holders, the registration
statement does not become effective, unless such withdrawal is caused by a
material adverse change in the business or operations of the Company after such
request for registration, or unless the Initiating Holders agree to have such
registration considered a registration pursuant to Section 5(a)(ii)(B). If the
Company is not required to pay any Registration Expenses, then the Holders and
Other Shareholders requesting registration shall bear such Registration Expenses
pro rata on the basis of the number of their shares so included in the
registration request, and such registration shall not be considered a
registration for purposes of Section 5(a)(ii)(B).

     8.   Registration on Form S-3.  The Company shall use its best efforts to
          ------------------------
qualify for registration on Form S-3, and to that end, the Company shall comply
with the reporting requirements of the Exchange Act following the effective date
of the first registration of any securities of the Company for a registered
public offering. After the Company has qualified for the use of Form S-3,
Initiating Holders shall have the right to request four (4) registrations on
Form S-3 (such requests shall be in writing and shall state the number of shares
of Registrable Securities to be disposed of and the intended method of
disposition of such shares by each such holder), subject only to the following
limitations:

          (a)  The Company shall not be obligated to cause a registration on
Form S-3 to become effective prior to one hundred eighty (180) days following
the effective date of a Company-

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initiated registration (other than a registration effected solely to qualify an
employee benefit plan or to effect a business combination pursuant to Rule 145),
provided that notice of such Company-initiated registration is given to Holders
prior to receipt of a request from a holder of Registrable Securities for
registration on Form S-3, and provided that the Company shall use its best
efforts to achieve such effectiveness promptly following such one hundred eighty
(180) day period;

          (b)  The Company shall not be obligated to cause a registration on
Form S-3 to become effective prior to expiration of one hundred eighty (180)
days following the effective date of the most recent registration pursuant to a
request by a holder of Registrable Securities under this Agreement or pursuant
to a request by a holder of registration rights under any other agreement of the
Company granting Form S-3 demand registration rights; provided, however, that
the Company shall use its best efforts to achieve such effectiveness promptly
following such one hundred eighty (180) day period;

          (c)  The Company shall not be required to effect a registration
pursuant to this Section 8 more than once in any twelve (12) month period;

          (d)  The Company shall not be required to maintain and keep any such
registration on Form S-3 effective for a period exceeding one hundred eighty
(180) days from the effective date thereof. The Company shall give notice to all
Holders and all holders of registration rights under any other agreement of the
Company granting Form S-3 or similar demand registration rights of the receipt
of a request for registration pursuant to this Section 8 and shall provide a
reasonable opportunity for all such other holders to participate in the
registration. Subject to the foregoing, the Company will use its best efforts to
effect promptly the registration of all shares of Registrable Securities on Form
S-3 to the extent requested by the Holder or Holders thereof for purposes of
disposition. In the event the Underwriter, in the case of an underwritten
offering, determines that market factors require a limitation on the number of
shares to be underwritten, then shares shall be excluded from such registration
and underwriting pursuant to the method described in Section 6(b); and

          (e)  The value of the aggregate shares of Registrable Securities to be
registered on Form S-3 for each such right of registration shall be at least
$500,000.

     9.   Registration Procedures.  In the case of each registration effected by
          -----------------------
the Company pursuant to this Agreement, the Company will keep each Holder
advised in writing as to the initiation of such registration and as to the
completion thereof. At its expense, the Company will:

          (a)  Keep such registration effective for a period of ninety (90) days
(except as set forth in Section 8(d)) or until the Holder or Holders have
completed the distribution described in the registration statement relating
thereto, whichever first occurs; and

          (b)  Furnish such number of prospectuses and other documents incident
thereto as a Holder from time to time may reasonably request; and

          (c)  In connection with any underwritten offering pursuant to a
registration statement filed pursuant to Section 5 or 8 hereof, the Company will
enter into any underwriting

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agreement reasonably necessary to effect the offer and sale of Common Stock,
provided such underwriting agreement contains customary underwriting provisions,
and provided further that if the underwriter so requests the underwriting
agreement will contain customary indemnification and contribution provisions,
and provided further that the Underwriter is reasonably acceptable to the
Company.

     10.  Indemnification.
          ---------------

          (a)  The Company will indemnify each Holder, each of its officers,
directors and partners, and each person controlling such Holder, if Registrable
Securities held by such Holder are included in the securities with respect to
which registration, qualification or compliance has been effected pursuant to
this Agreement, and each underwriter, if any, and each person who controls any
underwriter, against all claims, losses, damages and liabilities (or actions in
respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any prospectus, offering
circular or other document (including any related registration statement,
notification or the like) incident to any such registration, qualification or
compliance, or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading,
or any violation by the Company of the Securities Act including any rule or
regulation thereunder applicable to the Company relating to action or inaction
required of the Company in connection with any such registration, qualification
or compliance, and will reimburse each such Holder, each of its officers,
directors and partners, and each person controlling such Holder, each such
underwriter and each person who controls any such underwriter, for any legal and
any other expenses reasonably incurred in connection with investigating and
defending any such claim, loss, damage, liability or action, provided that the
Company will not be liable in any such case to the extent that any such claim,
loss, damage, liability or expense arises out of or is based on any untrue
statement (or alleged untrue statement) or omission (or alleged omission) based
upon written information furnished to the Company by such Holder or underwriter
and stated to be specifically for use therein.

          (b)  Each Holder will, if Registrable Securities or other securities
held by such Holder are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify the
Company, each of its directors, officers and agents and each underwriter, if
any, of the Company's securities covered by such a registration statement, each
person who controls the Company or such underwriter within the meaning of the
Securities Act and the rules and regulations thereunder, each other such Holder
and each of their officers, directors and partners, and each person controlling
such Holder, against all claims, losses, damages and liabilities (or actions in
respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading, and will reimburse the Company and such
Holders, directors, officers, agents, partners, persons, underwriters or control
persons for any legal or any other expenses reasonably incurred in connection
with investigating or defending any such claim, loss, damage, liability or
action, in each case to the extent, but only to the extent, that such

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untrue statement (or alleged untrue statement) or omission (or alleged omission)
is made in such registration statement, prospectus, offering circular or other
document in reliance upon and in conformity with written information furnished
to the Company by such Holder and stated to be specifically for use therein;
provided, however, that the obligations of such Holders hereunder shall be
limited to an amount equal to the net proceeds to each such Holder of securities
sold as contemplated herein.

          (c)  Each party entitled to indemnification under this Section 10 (the
"Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or any litigation resulting
therefrom, shall be approved by the Indemnified Party (whose approval shall not
unreasonably be withheld), and the Indemnified Party may participate in such
defense at such party's expense, and provided further that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Agreement. An indemnified party
shall have the right to retain its own counsel, with the fees and expenses to be
paid by the indemnifying party, if representation of such indemnified party by
the counsel retained by the indemnifying party would be inappropriate due to
actual or potential differing interests between such indemnified party and any
other party represented by such counsel in such proceeding. No Indemnifying
Party in the defense of any such claim or litigation shall, except with the
consent of each Indemnified Party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Party of a release from
all liability in respect to such claim or litigation. Each Indemnified Party
shall furnish such information regarding itself or the claim in question as an
Indemnifying Party may reasonably request in writing and as shall be reasonably
required in connection with defense of such claim and litigation resulting
therefrom.

          (d)  If the indemnification provided for in this Section 10 is held by
a court of competent jurisdiction to be unavailable to an indemnified party with
respect to any losses, claims, damages or liabilities referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or
liability 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 any untrue or alleged untrue statement of a material fact or
the omission to state a material fact that resulted in such loss, claim, damage
or liability, as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and of the indemnified party shall be
determined by a court of law 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;
provided, that in no event shall any contribution by a Holder thereunder exceed
the proceeds from the offering received by such Holder.

                                       10
<PAGE>

          (e)  The obligations of the Company and Holders under this Section 10
shall survive completion of any offering of Registrable Securities in a
registration statement and the termination of this agreement.

     11.  Information by Holder.  Each Holder holding securities included in any
          ---------------------
registration shall furnish to the Company such information regarding such Holder
as the Company may reasonably request in writing and as shall be reasonably
required in connection with any registration, qualification or compliance
referred to in this Agreement.

     12.  Limitations on Registration of Issues of Securities.  From and
          ---------------------------------------------------
after the date of this Agreement, the Company shall not enter into any agreement
with any holder or prospective holder of any securities of the Company giving
such holder or prospective holder the right to require the Company to initiate
any registration of any securities of the Company, provided that this Section 12
shall not limit the right of the Company to enter any agreements with any holder
or prospective holder of any securities of the Company giving such holder or
prospective holder the right to require the Company, upon any registration of
any of its securities, to include, among the securities which the Company is
then registering, securities owned by such holder. Any right given by the
Company to any holder or prospective holder of the Company's securities in
connection with the registration of securities shall be conditioned such that it
shall be consistent with the provisions of this Agreement and with the rights of
the Holders provided in this Agreement.

     13.  Rule 144 Reporting.  With a view to making available the benefits of
          ------------------
certain rules and regulations of the Commission which may permit the sale of the
Restricted Securities to the public without registration, the Company agrees to:

          (a)  Make and keep public information available as those terms are
understood and defined in Rule 144 under the Securities Act, at all times from
and after ninety (90) days following the effective date of the first
registration under the Securities Act filed by the Company for an offering of
its securities to the general public;

          (b)  Use its best efforts to file with the Commission in a timely
manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act at any time after it has become subject to
such reporting requirements;

          (c)  So long as a Shareholder owns any Restricted Securities, furnish
to the Shareholder forthwith upon request a written statement by the Company as
to its compliance with the reporting requirements of Rule 144 (at any time from
and after ninety (90) days following the effective date of the first
registration statement filed by the Company for an offering of its securities to
the general public), and of the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), a copy of the most
recent annual or quarterly report of the Company, and such other reports and
documents so filed as a Shareholder may reasonably request in availing itself of
any rule or regulation of the Commission allowing a Shareholder to sell any such
securities without registration.

     14.  No-Action Letter or Opinion of Counsel in Lieu of Registration.
          --------------------------------------------------------------
Notwithstanding anything in this Agreement to the contrary, if at any time after
the date of the Company's initial

                                       11
<PAGE>

public offering of its securities under the Securities Act the Company shall
have obtained from the Commission a "no-action" letter in which the Commission
has indicated that it will take no action if, without registration under the
Securities Act, any Holder disposes of Registrable Securities covered by any
request for registration made under this Agreement in the manner in which such
Holder proposes to dispose of the Registrable Securities included in such
request, or if in the opinion of counsel for the Company concurred in by counsel
for such Holder no registration under the Securities Act is required in
connection with such disposition, the Registrable Securities included in such
request shall not be eligible for registration under this Agreement; provided,
however, with respect to any Holder who may deemed to be an "affiliate," as that
term is defined under Rule 144, if, notwithstanding the opinion of such counsel,
the Holder is unable to dispose of all of the Registrable Securities included in
his request in the manner in which such Holder so proposes without registration,
the Registrable Securities included in such request shall be eligible for
registration under this Agreement.

     15.  Transfer or Assignment of Registration Rights.  The rights to cause
          ---------------------------------------------
the Company to register a Shareholder's securities granted to such Shareholder
by the Company under Sections 5, 6 and 8 hereof may be transferred or assigned
by the Shareholder to a transferee or assignee of at least 100,000 shares of the
Restricted Securities; provided, however, that a Shareholder may transfer or
assign such rights to a partner or shareholder of Shareholder or to a successor
trust or successor trustee without restriction as to minimum shareholding. The
Company shall be given written notice by Shareholder at the time of said
transfer or assignment, stating the name and address of said transferee or
assignee and identifying the securities with respect to which such registration
rights are being transferred or assigned, and provided further that the
transferee or assignee of such rights is not deemed by the Board of Directors of
the Company, in its reasonable judgment, to be a competitor of the Company; and
provided further that the transferee or assignee of such rights assumes the
obligations of a Shareholder under this Agreement.

     16.  "Market Stand-off" Agreement.  Each Shareholder agrees, if requested
          ----------------------------
by the Company and an underwriter of Common Stock (or other securities) of the
Company, not to sell or otherwise transfer or dispose of any Common Stock (or
other securities) of the Company held by Shareholder during a period of time
determined by the Company and its underwriters (not to exceed 180 days)
following the effective date of the Company's initial public offering of its
capital stock, provided that all officers, directors and employees of the
Company holding stock or stock options of at least one (1%) percent of the
Company's outstanding stock prior to the initial public offering of the Company
enter into similar agreements; provided, further, that with respect to the
Series C Holders and Series D Holders, the prohibition against the sale,
transfer or other dispostions of any Common Stock (or other securities) of the
Company held by them pursuant to this Section 16 shall not prohibit (i) the sale
of any shares of Common Stock purchased by such Series C Holder or Series D
Holder pursuant to a directed share program or otherwise in the Company's
initial public offering, or (ii) the sale, in the open market, of any shares of
Common Stock by such Series C Holder or Series D Holder provided that such
shares are purchased in the open market after the completion of the Company's
initial public offering.

                                       12
<PAGE>

          Such agreement shall be in writing in a form satisfactory to the
Company and such underwriter. The Company may impose stop-transfer instructions
with respect to the Shares (or securities) subject to the foregoing restriction
until the end of said period.

     17.  Governing Law.  This Agreement and the legal relations between the
          -------------
parties arising hereunder shall be governed by and interpreted in accordance
with the laws of the State of California. The parties hereto agree to submit to
the jurisdiction of the federal and state courts of the State of California with
respect to the breach or interpretation of this Agreement or the enforcement of
any and all rights, duties, liabilities, obligations, powers, and other
relations between the parties arising under this Agreement.

     18.  Entire Agreement.  This Agreement constitutes the full and entire
          ----------------
understanding and agreement between the parties regarding rights to
registration. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors and administrators of the parties hereto.

     19.  Notices, Etc. All notices and other communications required or
          -------------
permitted hereunder shall be in writing and shall be mailed by first-class mail,
postage prepaid, or otherwise delivered by hand or by messenger, addressed (a)
if to a Shareholder, at the address or addresses set forth on Exhibit A, Exhibit
                                                              ---------  -------
B, Exhibit C, Exhibit D or Exhibit E attached hereto, or at such other address
-  ---------  ---------    ---------
or addresses as the Shareholder shall have furnished to the other parties hereto
in writing, or (b) if to any other holder of any securities, at such address as
such holder shall have furnished the other parties hereto in writing, or, until
any such holder so furnishes an address to the Company, then to and at the
address of the last holder of such Shares who has so furnished an address to the
Company, or (c) if to the Company, at the address of its principal offices set
forth on the signature page of this Agreement, or at such other address as the
Company shall have furnished to the other parties hereto in writing.

     20.  Other Registration Rights.  This Agreement supersedes any previous
          -------------------------
agreement between the Company and any party with respect to the grant by the
Company of registration rights, including but not limited to Registration Rights
Agreement dated February 14, 1997.

     21.  Counterparts.  This Agreement may be executed in any number of
          ------------
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

     22.  Amendments.  Any provision of this Agreement may be amended, waived or
          ----------
modified upon the written consent of the Company, and the Shareholders (or their
assignees to whom Shareholders have expressly assigned their rights in
compliance with Section 15 hereof) who then hold more than fifty percent (50%)
of the Registrable Securities then held by persons entitled to registration
rights hereunder, provided further, any such amendment, waiver or modification
applies by its terms to each applicable Shareholder and each such assignee and,
provided further, that a Shareholder or such assignee hereunder may waive any of
such Holder's rights or the Company's obligations hereunder without obtaining
the consent of any other Shareholder or assignee.

               (Remainder of this page left intentionally blank)

                                       13
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Registration Rights Agreement as of the date first above written.

"INVENTA CORPORATION"

By:_____________________________________
   David A. Lavanty, President

    [Signature Page to Amended and Restated Registration Rights Agreement]
<PAGE>

"SHAREHOLDERS"

________________________________________
Stephen T. Barry

BANCBOSTON VENTURES INC.

By:_____________________________________
Name:  Maia D. Heymann
Title: Director

BATTERY VENTURES III, L.P.
By: Battery Partners III, L.P.

By:_____________________________________
Name:
Title:

BOSTON MILLENNIA PARTNERS
LIMITED PARTNERSHIP
By: Glen Partners Limited Partnership,
    its General Partner

By:_____________________________________
    General Partner

________________________________________
Dana Callow, Jr.

________________________________________
Harry A. Caunter

    [Signature Page to Amended and Restated Registration Rights Agreement]

<PAGE>

THE CHASE MANHATTAN BANK AS TRUSTEE FOR
FIRST PLAZA GROUP TRUST

By:_____________________________________

Title:__________________________________

________________________________________
Electra D. DePeyster

________________________________________
Robert Ducommun

Palmer G. and Charles E. Ducommun
Charitable Annuity Trust, u/d/t

________________________________________
Robert Ducommun, Trustee

________________________________________
Christian Dubiel

ESSEX PRIVATE PLACEMENT FUND II, LIMITED PARTNERSHIP
By: Essex Investment Mgt. Company LLC
    Its General Partner

By:_____________________________________

Its:____________________________________

________________________________________
Maya S. Hattangady

    [Signature Page to Amended and Restated Registration Rights Agreement]

                                      2
<PAGE>

________________________________________
Martin J. Hernon

________________________________________
Robert W. Jevon

________________________________________
Frank P. Pinto

________________________________________
Andrew Potter

PRIVATE EQUITY PORTFOLIO II, LLC

By:_____________________________________
Name:  Glen Holland
Title: Vice President

________________________________________
Suresh Shanmugham

________________________________________
Santhanam C. Shekar

________________________________________
Bruce R. Tiedemann

TCV II (Q), L.P.
a Delaware Limited Partnership

By:  Technology Crossover Management II, L.L.C.,
Its: General Partner

By:_____________________________________
     Name: Robert C. Bensky
     Title: Chief Financial Officer

    [Signature Page to Amended and Restated Registration Rights Agreement]

                                       3
<PAGE>

TCV II STRATEGIC PARTNERS, L.P.
a Delaware Limited Partnership

By:  Technology Crossover Management II, L.L.C.,
Its: General Partner

By:_____________________________________
     Name: Robert C. Bensky
     Title: Chief Financial Officer

TCV II, V.O.F.
a Netherlands Antilles General Partnership
By:  Technology Crossover Management II, L.L.C.,
Its: Investment General Partner

By:_____________________________________
     Name: Robert C. Bensky
     Title: Chief Financial Officer

TECHNOLOGY CROSSOVER VENTURES II, C.V.
a Netherlands Antilles Limited Partnership
By:  Technology Crossover Management II, L.L.C.,
Its: Investment General Partner

By:_____________________________________
     Name: Robert C. Bensky
     Title: Chief Financial Officer

TECHNOLOGY CROSSOVER VENTURES II, L.P.
a Delaware Limited Partnership
By:  Technology Crossover Management II, L.L.C.
Its: General Partner

By:_____________________________________
     Name: Robert C. Bensky
     Title: Chief Financial Officer

    [Signature Page to Amended and Restated Registration Rights Agreement]

                                       4

<PAGE>

________________________________________
Ramesh Vasudevan

________________________________________
Gomati Venkateswaran

________________________________________
Usha Vijayarajan

    [Signature Page to Amended and Restated Registration Rights Agreement]

                                       5
<PAGE>

     IN WITNESS WHEREOF, the Parties hereto have executed this Amended and
Restated Registration Rights Agreement as of the date first above written.

INVENTA:                                SHAREHOLDERS:

INVENTA CORPORATION
                                        ____________________________
                                        Richard M. Cerwonka

By:______________________________

Title:___________________________       ____________________________
                                        Mark Breznak

                                        ____________________________
                                        John Pike

                                        ____________________________
                                        Scott Gray

                                        ____________________________
                                        John McVicker

                                        ____________________________
                                        Michael Swafford

                                        ____________________________
                                        Derek Nash

                                        (Shareholder Signatures Continued
                                        Next Page)

    [Signature Page to Amended and Restated Registration Rights Agreement]

<PAGE>

                              ___________________________________
                              James Z. Peepas

                              ___________________________________
                              Frank Russin

                              ___________________________________
                              Joseph A.DeCapuq

                              ___________________________________
                              Gordon Kuhn

                              International Database Communication
                              Systems, Inc./IDCS

                              By:________________________________
                              James Z. Peepas
                              Chairman/CEO

    [Signature Page to Amended and Restated Registration Rights Agreement]
<PAGE>

                              INVENTA CORPORATION

                         ______________________________

                              AMENDED AND RESTATED
                         REGISTRATION RIGHTS AGREEMENT
                         ______________________________

                                January 26, 2000
<PAGE>

                                   EXHIBIT A
                                   ---------
                              SCHEDULE OF HOLDERS
                          OF SERIES A PREFERRED STOCK

Name and Address
--------------------------------------------------------------------------------

Harry A. Caunter                         Ramesh Vasudevan
675 North Court                          1369 Camwell Drive
Suites 225 & 230                         West Vancouver, BC, V7S2M6
Palatine, IL 60067                       Canada

Electra D. De Peyster                    Gomati Venkateswaran
2000 Redwood Hill Court                  26 South Baog Road
Santa Rosa, CA 95404                     A2 Anand Bhavan
                                         Madras, 600017
                                         INDIA

Robert Ducommun                          Usha Vijayarajan
1155 Park Ave.                           2/7 12th Cross
Apt. 1 SW                                Rajmahal Extension
New York, NY 10128                       Bangalore, 560080
                                         INDIA
Maya S. Hattangady
414 E. Lansing Way
Fresno, CA 93704

Palmer G. and Charles E. Ducommun
Charitable Annuity Trust, u/d/t
Robert Ducommun, trustee
1155 Park Ave.
Apt. 1 SW
New York, N.Y. 10128

Andrew Potter
401 Vine Street
Menlo Park, CA 94025

Santhanam C. Shekar
349 G Street
San Rafael, CA 94901
<PAGE>

                                   EXHIBIT B
                                   ---------
                              SCHEDULE OF HOLDERS
                          OF SERIES B PREFERRED STOCK

Name and Address
--------------------------------------------------------------------------------

Battery Ventures L.P.
20 William Street
Wellesley, MA 01282

Harry A. Caunter
675 North Court
Suites 225 & 230
Palatine, IL 60067

Robert Ducommun
1155 Park Ave.
Apt. 1 SW
New York, N.Y. 10128

Palmer G. and Charles E. Ducommun
Charitable Annuity Trust, u/d/t
Robert Ducommun, trustee
1155 Park Ave.
Apt. 1 SW
New York, N.Y. 10128

Andrew Potter
401 Vine Street
Menlo Park, CA 94025

Ramesh Vasudevan
1369 Camwell Drive
West Vancouver, BC, V7S2M6
Canada
<PAGE>

                                   EXHIBIT C
                                   ---------
                              SCHEDULE OF HOLDERS
                          OF SERIES C PREFERRED STOCK

Name and Address
--------------------------------------------------------------------------------

Battery Ventures III, L.P.                Suresh Shanmugham
20 William Street                         c/o Boston Millennia Partners
Wellesley, MA 0128230                     Rose Wharf, Ste. 330
                                          Boston, MA 02110

Boston Millennia Partners                 Bruce R. Tiedemann
30 Rose Wharf, Ste. 330                   c/o Boston Millennia Partners
Boston, MA 02110                          30 Rose Wharf, Ste. 330
                                          Boston, MA 02110

Stephen T. Barry                          Harry A. Caunter
c/o Boston Millennia Partners             675 North Court
30 Rose Wharf, Ste. 330                   Suites 225 & 230
Boston, MA 02110                          Palatine, IL 60067

A. Dana Callow, Jr.                       Maya S. Hattangady
c/o Boston Millennia Partners             414 E. Lansing Way
30 Rose Wharf, Ste. 330                   Fresno, CA 93704
Boston, MA 02110

Christian Dubiel                          Santhanam C. Shekar
c/o Boston Millennia Partners             349 G Street
30 Rose Wharf, Ste. 330                   San Rafael, CA 94901
Boston, MA 02110

Martin J. Hernon                          TCV II (Q), L.P.
c/o Boston Millennia Partners             c/o Technology Crossover Ventures
30 Rose Wharf, Ste. 330                   56 Main Street, Suite 210
Boston, MA 02110                          Millburn, NJ 07041
                                          Attention: Robert C. Bensky

Robert W. Jevon
c/o Boston Millennia Partners             with a copy to:
30 Rose Wharf, Ste. 330                   c/o Technology Crossover Ventures
Boston, MA 02110                          575 High Street, Suite 400
                                          Palo Alto, CA 94301
                                          Attention: Jay C. Hoag
<PAGE>

Frank P. Pinto
c/o Boston Millennia Partners
30 Rose Wharf, Ste. 330
Boston, MA 02110

TCV II Strategic Partners, L.P.           TCV II, V.O.F.
c/o Technology Crossover Ventures         c/o Technology Crossover Ventures
56 Main Street, Suite 210                 56 Main Street, Suite 210
Millburn, NJ 07041                        Millburn, NJ 07041
Attention: Robert C. Bensky               Attention: Robert C. Bensky

with a copy to:                           with a copy to:
c/o Technology Crossover Ventures         c/o Technology Crossover Ventures
575 High Street, Suite 400                575 High Street, Suite 400
Palo Alto, CA 94301                       Palo Alto, CA 94301
Attention: Jay C. Hoag                    Attention: Jay C. Hoag.

Technology Crossover Ventures II, C.V.    Technology Crossover Ventures II, C.V.
c/o Technology Crossover Ventures         c/o Technology Crossover Ventures
56 Main Street, Suite 210                 56 Main Street, Suite 210
Millburn, NJ 07041                        Millburn, NJ 07041
Attention: Robert C. Bensky               Attention: Robert C. Bensky

with a copy to:                           with a copy to:
c/o Technology Crossover Ventures         c/o Technology Crossover Ventures
575 High Street, Suite 400                575 High Street, Suite 400
Palo Alto, CA 94301                       Palo Alto, CA 94301
Attention: Jay C. Hoag                    Attention: Jay C. Hoag.
<PAGE>

                                   EXHIBIT D
                                   ---------
                              SCHEDULE OF HOLDERS
                          OF SERIES D PREFERRED STOCK

<TABLE>
<CAPTION>
Name and Address
-----------------------------------------------------------------------------------------
<S>                                               <C>
BancBoston Ventures Inc.                          The Chase Manhattan Bank,
435 Tasso Street, Suite 250                       As Trustee for First Plaza Group Trust
Palo Alto, CA 94301                               Global Investor Services
Attn:  Maia Heymann                               4 Chase Metro Tech Center, 18/th/ Floor
                                                  Brooklyn, NY 11245
                                                  Attn:  John F. Weeda

Private Equity Portfolio II, LLC                  Technology Crossover Ventures II, L.P.
175 Federal Street, 10/th/ Floor                  56 Main Street, Suite 210
Boston, MA 02110                                  Millburn, NJ 07041
Attn:  Glen Holland                               Attn:  Robert C. Bensky

Battery Ventures III, L.P.                        TCV II (Q), L.P.
20 William Street                                 56 Main Street, Suite 210
Wellesley, MA 01282                               Millburn, NJ 07041
Attn:  Rick Frisbie                               Attn:  Robert C. Bensky

Boston Millennia Partners Limited Partnership     Technology Crossover Ventures II, C.V.
30 Rowes Wharf                                    56 Main Street, Suite 210
Boston, MA 02110                                  Millburn, NJ 07041
Attn:  Martin J. Hernon                           Attn:  Robert C. Bensky

Robert Ducommun                                   TCV II Strategic Partners L.P.
1155 Park Avenue, Apt. 1 SW                       56 Main Street, Suite 210
New York, NY 10128                                Millburn, NJ 07041
                                                  Attn:  Robert C. Bensky

Palmer G. & Charles E. Ducommun                   TCV II, V.O.F.
  Charitable Annuity Trust                        56 Main Street, Suite 210
1155 Park Avenue, Apt. 1 SW                       Millburn, NJ 07041
New York, NY 10128                                Attn:  Robert C. Bensky

Essex Private Placement Fund II,
  Limited Partnership                             Boston Millennia Associates I, Limited
c/o Essex Investment Mgt. Company                 Partnership
125 High Street                                   30 Rowes Wharf
Boston, MA 02110                                  Boston, MA 02110
Attn:  Susan Stickells                            Attn:  Martin J. Hernon
</TABLE>
<PAGE>

                                   EXHIBIT E

                         SCHEDULE OF XTEND-TECH HOLDERS<PAGE>

                                                                    EXHIBIT 10.1

                              INVENTA CORPORATION

                  SERIES A PREFERRED STOCK PURCHASE AGREEMENT
                  -------------------------------------------

                                 July 8, 1994
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                              Page
                                                              ----
<S> <C>                                                      <C>

1.   Purchase and Sale of Series A Preferred Stock ..........     1

     1.1     Sale and Issuance of Common Stock ..............     1
     1.2     Closing ........................................     1
     1.3     Warrants .......................................     1

2.   Representations and Warranties of the Company ..........     1

     2.1     Organization, Good Standing and Qualification ..     2
     2.2     Capitalization .................................     2
     2.3     Subsidiaries ...................................     2
     2.4     Authorization ..................................     2
     2.5     Valid Issuance of Securities ...................     2
     2.6     Governmental Consents ..........................     3
     2.7     Litigation .....................................     3
     2.8     Intangible Property ............................     3
     2.9     Compliance with Other Instruments ..............     4
     2.10    Disclosure .....................................     4
     2.11    Registration Rights ............................     4
     2.12    Title to Property and Assets ...................     4
     2.13    Financial Statements ...........................     5
     2.14    Changes ........................................     5
     2.15    Minute Books ...................................     6
     2.16    Labor Agreements and Actions ...................     6

3.   Representations and Warranties of the Investors ........     7

     3.1     Authorization ..................................     7
     3.2     Purchase Entirely for Own Account ..............     7
     3.3     Disclosure of Information ......................     7
     3.4     Economic Risk ..................................     7
     3.5     Restricted Securities ..........................     8
     3.6     Further Limitations on Disposition .............     8
     3.7     Legends ........................................     8

4.   California Commissioner of Corporations ................     9

     4.1     Corporate Securities Law .......................     9

5.   Conditions of Investor's Obligations at Closing ........     9

     5.1     Representations and Warranties .................     9
     5.2     Performance ....................................     9
     5.3     Articles of Incorporation ......................     9
     5.4     Compliance Certificate .........................     9
</TABLE>

                                     -i-
<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                              Page
                                                              ----
<S>  <C>                                                      <C>
6.   Conditions of the Company's Obligations at Closing .....     9

     6.1     Representations and Warranties .................     9
     6.2     Payment of Purchase Price ......................    10
     6.3     Legal Matters ..................................    10

7.   Registration Rights ....................................    10

     7.1     Definitions ....................................    10
     7.2     Restrictive Legend .............................    11
     7.3     Notice of Proposed Transfers ...................    11
     7.4     Demand Registration ............................    12
     7.5     Piggyback Registration .........................    12
     7.6     Underwriting ...................................    13
     7.7     Blue Sky .......................................    14
     7.8     Expenses of Registration .......................    15
     7.9     Registration Procedures ........................    15
     7.10    Information Furnished by Holder ................    15
     7.11    Indemnification ................................    15
     7.12    Rule 144 Reporting .............................    17
     7.13    Transfer of Registration Rights ................    18

8.   Right of First Refusal .................................    18

     8.1     Grant of Right .................................    18
     8.2     New Securities .................................    18
     8.3     Notice .........................................    19
     8.4     Sale after Notice ..............................    19
     8.5     Expiration .....................................    19
     8.6     Assignment .....................................    20

9.   Covenants of the Company ...............................    20

     9.1     Delivery of Financial Statements ...............    20
     9.2     Termination of Information Covenant ............    21
     9.3     Key Man Life Insurance .........................    21
     9.4     Board of Directors .............................    21

10.  Miscellaneous ..........................................    21

     10.1    Survival of Warranties .........................    21
     10.2    Transfer; Successors and Assigns ...............    21
     10.3    Governing Law ..................................    22
     10.4    Counterparts ...................................    22
     10.5    Titles and Subtitles ...........................    22
</TABLE>

                                     -ii-
<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                              Page
                                                              ----

<S>  <C>                                                     <C>
     10.6    Notices ........................................    22
     10.7    Finder's Fee ...................................    22
     10.8    Expenses .......................................    22
     10.9    Amendments and Waivers .........................    22
     10.10   Severability ...................................    23
     10.11   Aggregation of Stock ...........................    23
     10.12   Entire Agreement ...............................    23

EXHIBIT A    Schedule of Investors

EXHIBIT B    Amended and Restated Articles of Incorporation

EXHIBIT C    Schedule of Exceptions to Representations and Warranties

EXHIBIT D    Form of Warrant

EXHIBIT E    List of Registrable Securities

EXHIBIT F    Form of Proprietary Information Agreement
</TABLE>

                                     -iii-
<PAGE>

                  SERIES A PREFERRED STOCK PURCHASE AGREEMENT
                  -------------------------------------------

     THIS SERIES A PREFERRED STOCK PURCHASE AGREEMENT ("Agreement") is made as
of the 8th day of July 1994 by and between Inventa Corporation, a California
corporation (the "Company"), and the persons and entities listed on the Schedule
of Investors attached hereto as Exhibit A (the "Investors").

     THE PARTIES HEREBY AGREE AS FOLLOWS:

     1.   Purchase and Sale of Series A Preferred Stock
          ---------------------------------------------

          1.1.   Sale and Issuance of Common Stock.
                 ---------------------------------

                 (a)   The Company shall adopt and file with the Secretary of
State of California on or before the Closing (as defined below) the Amended and
Restated Articles of Incorporation in the form attached hereto as Exhibit B.

                 (b)   Subject to the terms and conditions of this Agreement,
the Investors agree to purchase at the Closing and the Company agrees to sell
and issue to the Investors at the Closing that number of shares of the Company's
Series A Preferred Stock (the "Stock") for the aggregate purchase price set
forth opposite each Investor's name on Exhibit A attached hereto, at a purchase
price of $1.00 per share.

          1.2    Closing   Date; Delivery.  The purchase and sale of the Stock
                 ------------------------
shall take place at the offices of Wilson, Sonsini, Goodrich & Rosati, 650 Page
Mill Road, Palo Alto, California, at 9:00 a.m., on July 8, 1994, or at such
other time and place as the Company and the Investors mutually agree upon,
orally or in writing (which time and place are designated as the "Closing"). At
the Closing, the Company shall deliver to each Investor a certificate
representing the Stock which such Investor is purchasing against delivery to the
Company by such Investor of a check made payable to the Company or wire transfer
of the aggregate purchase price therefor.

          1.3.   Warrants.  At the Closing, the Company shall issue to each
                 --------
Investor a Warrant ("Warrant") in the form attached hereto as Exhibit D. Each
Warrant shall be exercisable at the Investor's option for that number of shares
of Series A Preferred Stock of the Company equal to one-fourth of the number of
shares of Stock purchased by such Investor at the Closing, at an exercise price
of $1.00 per share. The Warrants shall expire at the earlier of (i) December 31,
1999, (ii) a registered public offering of the Company's securities, or (iii) a
merger, reorganization or sale of all or substantially all of the Company's
assets.

     2.   Representations and Warranties of the Company.  The Company hereby
          ---------------------------------------------
represents and warrants to the Investors that,
<PAGE>

except as set forth on a Schedule of Exceptions attached hereto as Exhibit C,
specifically identifying the relevant subparagraph hereof, which exceptions
shall be deemed to be representations and warranties as if made hereunder:

          2.1.   Organization, Good Standing and Qualification.  The Company is
                 ---------------------------------------------
a corporation duly organized, validly existing and in good standing under the
laws of the State of California and has all requisite corporate power and
authority to carry on its business as now conducted and as proposed to be
conducted. The Company is duly qualified to transact business and is in good
standing in each jurisdiction in which the failure so to qualify would have a
material adverse effect on its business or properties.

          2.2    Capitalization.
                 --------------

                 (a)   The authorized capital of the Company will consist,
immediately prior to the Closing, of (i) 500,000 shares of Preferred Stock, all
of which are designated Series A Preferred Stock, and none of which are issued
and outstanding, and (ii) 10,000,000 shares of Common Stock, of which 2,250,000
shares are issued and outstanding. The Company has reserved 675,000 shares of
its Common Stock for issuance pursuant to its 1993 Stock Option Plan. Except as
set forth in the Schedule of Exceptions attached as Exhibit C hereto, there are
no outstanding options, warrants, rights (including conversion or preemptive
rights) or agreements, orally or in writing, for the purchase or acquisition
from the Company of any shares of its capital stock.

          2.3    Subsidiaries.  The Company does not presently own or control,
                 ------------
directly or indirectly, any interest in any other corporation, association, or
other business entity.

          2.4    Authorization.  All corporate action on the part of the
                 -------------
Company, its officers, directors and shareholders necessary for the
authorization, execution and delivery of this Agreement, the performance of all
obligations of the Company hereunder and the authorization, issuance and
delivery of the Stock has been taken or will be taken prior to the Closing, and
this Agreement constitutes a valid and legally binding obligation of the
Company, enforceable in accordance with its terms.

          2.5    Valid Issuance of Securities.
                 ----------------------------

                 (a)   The Stock that is being issued to the Investors
hereunder, when issued, sold and delivered in accordance with the terms hereof
for the consideration expressed herein, will be duly and validly issued, fully
paid and nonassessable. Based in part upon the representations of the Investors
in this Agreement, the Stock will be issued in compliance with all applicable
federal and state securities laws.

                                      -2-
<PAGE>

                 (b)   The shares of Common Stock outstanding prior to the
Closing are all duly and validly authorized and issued, fully paid and
nonassessable, and were issued in compliance with all applicable federal and
state securities laws.

                 (c)   The Warrants to be issued to the Investors in
connection with the transactions contemplated by this Agreement will be duly and
validly authorized and issued, fully paid and nonassessable, and will be issued
in compliance with all applicable federal and state securities laws.

          2.6    Governmental Consents.  No consent, approval, order or
                 ---------------------
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
the Company is required in connection with the consummation of the transactions
contemplated by this Agreement, except for (a) the filing pursuant to Section
25102(f) of the California Corporate Securities Law of 1968, as amended, and the
rules thereunder, which filing will be effected in accordance with such section,
and (b) compliance with the Blue Sky Laws of the various states in which the
Investors may reside, which compliance will be effected in accordance with such
laws. The Company currently holds all licenses, permits, franchises,
registrations and qualifications which may be required to conduct its business,
and all such licenses, permits, franchises, registrations and qualifications are
valid and in full force and effect.

          2.7    Litigation.  There is no action, suit, proceeding or
                 ----------
investigation pending or currently threatened against the Company that questions
the validity of this Agreement or the right of the Company to enter into it, or
to consummate the transactions contemplated hereby, or that might result, either
individually or in the aggregate, in any material adverse changes in the assets,
condition, affairs or prospects of the Company, financially or otherwise, or any
change in the current equity ownership of the Company, nor is the Company aware
that there is any basis for the foregoing. The foregoing includes, without
limitation, actions pending or threatened (or any basis therefor known to the
Company) involving the prior employment of any of the Company's employees, their
use in connection with the Company's business of any information or techniques
allegedly proprietary to any of their former employers, or their obligations
under any agreements with prior employers. The Company is not a party or subject
to the provisions of any order, writ, injunction, judgment or decree of any
court or government agency or instrumentality. There is no action, suit,
proceeding or investigation by the Company currently pending or which the
Company intends to initiate.

          2.8    Intangible Property.  The Company, to its knowledge after due
                 -------------------
inquiry, and that of its officers after due inquiry, has all right, title and
interest in and to all intangible property and

                                      -3-
<PAGE>

technology or is able to obtain on reasonable terms, all permits, licenses and
other authority necessary to conduct its business as presently conducted. The
Company, and, to the knowledge of the Company, its officers and employees, have
not improperly used and are not making improper use of any confidential
information or trade secrets of others, including those of any former employer
of an officer or employee.

          2.9    Compliance with Other Instruments.
                 ---------------------------------

                 (a)   The Company is not in violation or default of any
provisions of its Amended and Restated Articles of Incorporation or Bylaws or of
any instrument, judgment, order, writ, decree or contract to which it is a party
or by which it is bound or, to its knowledge, of any provision of federal or
state statute, rule or regulation applicable to the Company. The execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby will not result in any such violation or be in
conflict with or constitute, with or without the passage of time and giving of
notice, either a default under any such provision, instrument, judgment, order,
writ, decree, contract, rule, or statute, or of the Company's Restated Articles
of Incorporation or Bylaws, or an event which results in the creation of any
lien, charge or encumbrance upon any assets of the Company.

                 (b)   The Company has avoided every condition, and has not
performed any act, the occurrence of which would result in the Company's loss of
any right granted under any license, distribution or other agreement.

          2.10   Disclosure.  The Company has fully provided the Investors with
                 ----------
all the information which the Investors have requested for deciding whether to
acquire the Stock and all information which the Company believes is reasonably
necessary to enable the Investors to make such decision. Neither this Agreement
nor any other statements or certificates made or delivered in connection
herewith contains any untrue statement of a material fact or omits to state a
material fact necessary to make the statements herein or therein not misleading,
except that, with respect to financial projections, the Company represents only
that such projections were prepared in good faith and that the Company believes
there is a reasonable basis for such projections.

          2.11   Registration Rights.  Except as provided in Section 7 of this
                 -------------------
Agreement, the Company has not granted or agreed to grant any registration
rights, including piggyback rights, to any person or entity.

          2.12   Title to Property and Assets.  The Company owns its property
                 ----------------------------
and assets free and clear of all mortgages, liens, loans

                                      -4-
<PAGE>

and encumbrances, except such encumbrances and liens which arise in the ordinary
course of business and do not materially impair the Company's ownership or use
of such property or assets. With respect to the property and assets it leases,
the Company is in compliance with such leases and, to the best of its knowledge,
holds a valid leasehold interest free of any liens, claims or encumbrances.

          2.13   Financial Statements.  The Company has delivered to the
                 --------------------
Investor its financial statements (balance sheet and profit and loss statement
and statement of shareholders equity) (i) at April 30, 1994 and the four (4)
month period then ended and (ii) at December 31, 1993 and for the fiscal year
then ended (collectively, the "Financial Statements"). The Financial Statements
are complete and correct in all material respects and have been prepared in
accordance with generally accepted accounting principles applied on a consistent
basis throughout the periods indicated and with each other. The Financial
Statements accurately set out and describe the financial condition and operating
results of the Company as of the dates, and for the periods, indicated therein.
Except as set forth in the Financial Statements, the Company has no liabilities,
contingent or otherwise, of a nature required by generally accepted accounting
principles to be reflected in a balance sheet or disclosed in the notes thereto,
other than liabilities incurred in the ordinary course of business subsequent to
April 30, 1994.

          2.14   Changes.  Since April 30, 1994 there has not been:
                 -------

                 (a)   any change in the assets, liabilities, financial
condition or operating results of the Company from that reflected in the
Financial Statements, except changes in the ordinary course of business which
have not been, in the aggregate, materially adverse.

                 (b)   any damage, destruction or loss, whether or not covered
by insurance, materially and adversely affecting the assets, properties,
financial condition, operating results, prospects or business of the Company (as
such business is presently conducted and as it is proposed to be conducted);

                 (c)   any waiver by the Company of a valuable right or of a
material debt owed to it;

                 (d)   any satisfaction or discharge of any lien, claim or
encumbrance or payment of any obligation by the Company, except in the ordinary
course of business and which is not material to the assets, properties,
financial condition, operating results or business of the Company (as such
business is presently conducted and as it is proposed to be conducted);

                                      -5-
<PAGE>

                 (e)   any change or amendment to a material contract or
arrangement by which the Company or any of its assets or properties is bound or
to which the Company or any of such assets or properties is subject;

                 (f)   any material change in any compensation arrangement or
agreement with any employee; or

                 (g)   to the Company's knowledge, any other event or condition
of any character which might materially and adversely affect the assets,
properties, financial condition, operating results or business of the Company
(as such business is presently conducted and as it is proposed to be conducted).

          2.15   Minute Books.  The Company has offered to provide to the
                 ------------
Investors the minute books of the Company, which contain a complete summary of
all meetings of directors and shareholders since the time of incorporation and
reflect all transactions referred to in such minutes accurately in all material
respects.

          2.16   Labor Agreements and Actions.  The Company is not bound by or
                 ----------------------------
subject to (and none of its assets or properties is bound by or subject to) any
written or oral, express or implied, contract, commitment or arrangement with
any labor union, and no labor union has requested or, to the knowledge of the
Company, has sought to represent any of the employees, representatives or agents
of the Company.  There is no strike or other labor dispute involving the Company
pending, or to the knowledge of the Company threatened, which could have a
material adverse effect on the assets, properties, financial condition,
operating results, or business of the Company (as such business is presently
conducted and as it is proposed to be conducted), nor is the Company aware of
any labor organization activity involving its employees.  The Company is not
aware that any officer or key employee, or that any group of key employees,
intends to terminate their employment with the Company, nor does the Company
have a present intention to terminate the employment of any of the foregoing.
The employment of each officer and employee of the Company is terminable at the
will of the Company.

          2.17   Employee Plans.  The Company has no "employee welfare benefit
                 --------------
plans" as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974 ("ERISA"). The Company (i) has not been required to contribute to, (ii)
has not terminated or withdrawn from, and (iii) is not aware of any withdrawal
liability assessed against the Company with respect to any defined benefit plan
as defined in Section 3(35) of ERISA or multiemployer plan as defined in Section
4001 of ERISA in which employees or former employees of the Company have
participated.

                                      -6-
<PAGE>

          2.18   Employees.  The Company has not knowingly violated any
                 ---------
employment-related laws, including, without limitation, laws relating to equal
employment opportunity, overtime pay and collective bargaining.  To the
Company's knowledge, no key employee or sales representative of the Company, and
no group of employees, has any plans to terminate his or her employment with the
Company.  Each United States employee of the Company with access to confidential
or proprietary information has executed a Proprietary Information Agreement, the
form of which is attached hereto as Exhibit F.

     3.   Representations and Warranties of the Investors.  Each Investor  for
          -----------------------------------------------
itself hereby represents and warrants to the Company that:

          3.1    Authorization.  This Agreement constitutes its valid and
                 -------------
legally binding obligation, enforceable in accordance with its terms.

          3.2    Purchase Entirely for Own Account.  This Agreement is made
                 ---------------------------------
with the Investor in reliance upon the Investor's representation to the Company,
which by the Investor's execution of this Agreement the Investor hereby
confirms, that the Stock will be acquired for investment for the Investor's own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Investor has no present intention
of selling, granting any participation in, or otherwise distributing the same.
By executing this Agreement, the Investor further represents that the Investor
does not presently have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participations to such person or to any
third person, with respect to any of the Stock. The Investor represents that it
has full power and authority to enter into this Agreement.

          3.3    Disclosure of Information.  The Investor believes it has
                 -------------------------
received information that it considers necessary or appropriate for deciding
whether to acquire the Stock.  The Investor further represents that it has had
an opportunity to ask questions and receive answers from the Company regarding
the terms and conditions of the offering of the Stock.  The foregoing, however,
does not limit or modify the representations and warranties of the Company in
Section 2 of this Agreement or the right of the Investor to rely thereon.

          3.4    Economic Risk.  The Investor has the capacity to protect his
                 -------------
own interests in connection with the purchase of the Stock, is capable of
evaluating the merits and risks of investment in the Company, can make an
informed investment decision by reason of (i) his preexisting personal or
business relationship with the Company or any of its officers, directors, or
control persons, or (ii) his business and financial knowledge and experience or
the

                                      -7-
<PAGE>

business and financial knowledge and experience of my professional advisers,
and is able to bear the substantial economic risks of an investment in the Stock
for an indefinite period of time.

          3.5    Restricted Securities.  It understands that the shares of
                 ---------------------
Common Stock sold hereunder are characterized as "restricted securities" under
the federal securities laws inasmuch as they are being acquired from the Company
in a transaction not involving a public offering and that under such laws and
applicable regulations such shares may be resold without registration under the
Securities Act of 1933, as amended (the "Act"), only in certain limited
circumstances. In this connection, the Investor represents that it is familiar
with SEC Rule 144, as presently in effect, and understands the resale
limitations imposed thereby and by the Act.

          3.6    Further Limitations on Disposition.  Without in any way
                 ----------------------------------
limiting the representations set forth above, the Investor further agrees not to
make any disposition of all or any portion of the Stock unless and until:

                 (a)   There is then in effect a Registration Statement under
the Act covering such proposed disposition and such disposition is made in
accordance with such Registration Statement; or

                 (b)   (i) The Investor shall have notified the Company of the
proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and (ii) if
reasonably requested by the Company, the Investor shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that
such disposition will not require registration under the Act.

                 (c)   Notwithstanding the provisions of paragraphs (a) and
(b) above, no such registration statement or opinion of counsel shall be
necessary for a transfer by the Investor to a shareholder, partner or other
affiliate of the Investor, if the transferee or transferees agree in writing to
be subject to the terms hereof to the same extent as if they were the Investor
hereunder.

          3.7    Legends.  It is understood that the Stock, and the shares of
                 -------
Common Stock issuable upon conversion thereof and any securities issued in
respect thereof or exchange therefor may bear one or all of the following
legends:

                 (a)   The legend set forth in Section 7.2 hereof.

                 (b)   Any legend required by the laws of the State of
California, including any legend required by the California Department of
Corporations.

                                      -8-
<PAGE>

          (c)    Any legend required by the Blue Sky laws of any other state
to the extent such laws are applicable to the shares represented by the
certificate so legended.

     4.   California Commissioner of Corporations.
          ---------------------------------------

          4.1    Corporate Securities Law.  THE SALE OF THE SECURITIES THAT IS
                 ------------------------
THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF
CORPORATIONS OF THE STATE OF CALIFORNIA, THE ISSUANCE OF SUCH SECURITIES OR THE
PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION FOR SUCH SECURITIES PRIOR TO
SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE
QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS
CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON
SUCH QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT.

     5.   Conditions of Investor's Obligations at Closing.  The obligations  of
          -----------------------------------------------
the Investors under Section 1.1 of this Agreement are subject to the
fulfillment, on or before the First Closing, of each of the following
conditions:

          5.1    Representations and Warranties.  The representations and
                 ------------------------------
warranties of the Company contained in Section 2 shall be true and correct in
all material respects as of the Closing.

          5.2    Performance.  The Company shall have performed and complied
                 -----------
with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing.

          5.3    Articles of Incorporation.  The Company shall have filed with,
                 -------------------------
and have had accepted for filing by, the California Secretary of State the
Amended and Restated Articles of Incorporation of the Company attached as
Exhibit B hereto.

          5.4    Compliance Certificate.  The President of the Company shall
                 ----------------------
deliver to the Investors at the Closing a certificate certifying that the
conditions specified in Sections 5.1 and 5.2 have been fulfilled.

     6.   Conditions of the Company's Obligations at Closing.  The
          --------------------------------------------------
obligations of the Company to the Investors under this Agreement are subject to
the fulfillment, on or before the Closing, of each of the following conditions
by the Investor:

          6.1    Representations and Warranties.  The representations and
                 ------------------------------
warranties of the Investors contained in Section 3 shall be true and correct in
all material respects as of the Closing.

                                      -9-
<PAGE>

          6.2    Payment of Purchase Price.  The Investors shall have delivered
                 -------------------------
to the Company the purchase price specified in Section 1.1 hereof.

          6.3    Legal Matters.  All material matters of a legal nature which
                 -------------
pertain to this Agreement, and the transactions contemplated hereby, shall have
been reasonably approved by counsel to the Company.

     7.   Registration Rights.  The Company covenants and agrees as follows:
          -------------------

          7.1    Definitions.  For purposes of this Section 7:
                 -----------

                 (a)   "Commission" shall mean the Securities and Exchange
                        ----------
Commission or any other federal agency at the time administering the Securities
Act.

                 (b)   "Holder" shall mean any holder of outstanding
                        ------
Registrable Securities which have not been sold to the public or an assignee or
transferee of Registration rights as permitted by Section 7.13.

                 (c)   "Initiating Holders" shall mean Holders who in the
                        ------------------
aggregate hold at least forty percent (40%) of the Registrable Securities.

                 (d)   The terms "Register", "Registered" and "Registration"
                                  --------    ----------       ------------
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act ("Registration Statement"), and
the declaration or ordering of the effectiveness of such Registration Statement.

                 (e)   "Registrable Securities" shall mean any Common Stock
                        ----------------------
held by the Holder as set forth on Exhibit E attached hereto, or other
securities issued as a dividend or other distribution with respect to, in
exchange for or in replacement of Registrable Securities.

                 (f)   "Registration Expenses" shall mean all expenses incurred
                        ---------------------
by the Company in complying with Section 7.4 or 7.5 of this Agreement,
including, without limitation, all federal and state registration, qualification
and filing fees, printing expenses, fees and disbursements of counsel for the
Company and of special counsel for the Holders (if different from the Company),
blue sky fees and expenses, and the expense of any special audits incident to or
required by any such registration and excluding any Selling Expenses.

                 (g)   "Securities Act" shall mean the Securities Act of 1933,
                        --------------
as amended, or any similar federal statute, and the

                                      -10-
<PAGE>

rules and regulations of the Commission thereunder, all as the same shall be in
effect at the time.

                 (h)   "Selling Expenses" shall mean all underwriting discounts
                        ----------------
and selling commissions applicable to the sale of Registrable Securities
pursuant to this Agreement.

          7.2    Restrictive Legend  .  Each certificate representing (i)
                 ------------------
the Registrable Securities and (ii) any other securities issued in respect of
the Registrable Securities upon any stock split, stock dividend,
recapitalization, merger, consolidation or similar event, shall (unless
otherwise permitted by the provisions of Section 7.3 below) be stamped or
otherwise imprinted with a legend in the following form (in addition to any
legend under applicable state securities laws):

     THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
     INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
     SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
     REGISTRATION OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL
     REASONABLY ACCEPTABLE TO IT STATING THAT SUCH SALE OR TRANSFER IS EXEMPT
     FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.
     COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SHARES AND
     RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST
     MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE
     CORPORATION AT THE PRINCIPAL EXECUTIVE OFFICES OF THE CORPORATION.

          The Investor and each Holder consents to the Company making a notation
on its records and giving instructions to any transfer agent of the Common Stock
in order to implement the restrictions on transfer established in this Section
7.

          7.3    Notice of Proposed Transfers  .  The holder of each
                 ----------------------------
certificate representing restricted securities as that term is defined in Rule
144 by acceptance thereof agrees to comply in all respects with the provisions
of this Section 7.3.  Prior to any proposed sale, assignment, transfer or pledge
of any restricted securities (other than (i) a transfer not involving a change
in beneficial ownership or (ii) in transactions involving the distribution
without consideration of restricted securities by any of the Holders to any of
its partners, retired partners) unless there is in effect a registration
statement under the Securities Act covering the proposed transfer, the holder
thereof shall give written notice to the Company of such holder's intention to
effect such transfer, sale, assignment or pledge.  Each such notice shall
describe the manner and circumstances of the proposed transfer, sale, assignment
or pledge in sufficient detail, and shall be accompanied, at such holder's
expense by either (i) a written opinion, addressed to the Company, of legal
counsel who shall be,

                                      -11-
<PAGE>

and whose legal opinion shall be, reasonably satisfactory to the Company
(provided that no such opinion shall be required for transfers pursuant to Rule
144), to the effect that the proposed transfer of the restricted securities may
be effected without registration under the Securities Act, or (ii) a "no action"
letter from the Commission to the effect that the transfer of such securities
without registration will not result in a recommendation by the staff of the
Commission that action be taken with respect thereto, whereupon the holder of
such restricted securities shall be entitled to transfer such restricted
securities in accordance with the terms of the notice delivered by the holder to
the Company. Each certificate evidencing the restricted securities transferred
as above provided shall bear, except if such transfer is made pursuant to Rule
144, the appropriate restrictive legend set forth in Section 7.2 above, except
that such certificate shall not bear such restrictive legend if in the opinion
of counsel for such holder and the Company such legend, is not required in order
to establish compliance with any provision of the Securities Act.

          7.4    Demand Registration.
                 -------------------

                 (a)   Request for Registration on Form S-3.  Subject to the
                       ------------------------------------
terms of this Agreement, in the event that the Company shall receive from the
Initiating Holders a written request that the Company effect any Registration on
Form S-3 (or any successor form to Form S-3 regardless of its designation) for
an offering of Registrable Securities the reasonably anticipated aggregate
offering price to the public of which would exceed $1,000,000, the Company
shall: (i) promptly give written notice of the proposed Registration to all
other Holders; and (ii) as soon as practicable, use its best efforts to effect
Registration of the Registrable Securities specified in such request, together
with any Registrable Securities of any Holder joining in such request as are
specified in a written request made within twenty (20) days after the written
notice from the Company. The Company shall not be obligated to effect more than
four such Registrations under this Section 7.4(a), nor more than one such
Registration in any twelve-month period.

                 (b)   Registration of Other Securities.  Any Registration
                       --------------------------------
Statement filed pursuant to the request of the Initiating Holders under this
Section 7.4 shall only include Registrable Securities.

          7.5    Piggyback Registration.  Subject to the terms of this
                 ----------------------
Agreement, if at any time or from time-to-time, the Company shall determine to
register any of its securities, either for its own account or the account of a
security holder or holders, other than a registration on Form S-8 relating
solely to employee stock option or purchase plans, a registration on Form S-4
relating solely to an SEC Rule 145 transaction, a registration on any other

                                      -12-
<PAGE>

form (other than Form S-1 or S-3) which does not include substantially the same
information as would be required to be included in a Registration Statement
covering the sale of Registrable Securities, the Company will: (i) promptly give
each Holder written notice thereof (which shall include a list of the
jurisdictions in which the Company intends to attempt to qualify such securities
under the applicable Blue Sky or other state securities laws) and (ii) include
in such Registration (and any related registration and/or qualification under
Blue Sky laws or other compliance), and in any underwriting involved therein,
all the Registrable Securities specified in a written request delivered to the
Company by any Holder within 30 days after delivery of such written notice from
the Company.

          7.6    Underwriting.
                 ------------

                 (a)   Notice of Underwriting.  If a Registration of which the
                       ----------------------
Company gives notice is for a Registered public offering involving an
underwriting, the Company shall so advise the Holders as a part of the written
notice given pursuant to Section 7.4(a) or 7.5. In such event, the right of any
Holder to Registration shall be conditioned upon such underwriting and the
inclusion of such Holder's Registrable Securities in such underwriting to the
extent provided in this Section 7.6. All Holders proposing to distribute their
securities through such underwriting shall (together with the Company and any
other holders distributing their securities through such underwriting) enter
into an underwriting agreement with the Underwriter's Representative for such
offering. The Holders shall have no right to participate in the selection of the
underwriters for an offering pursuant to this Section 7.6.

                 (b)   Marketing Limitation.  In the event the Underwriter's
                       --------------------
Representative advises the Holders seeking Registration of Registrable
Securities in writing that market factors (including, without limitation, the
aggregate number of shares of Common Stock requested to be Registered, the
general condition of the market, and the status of the persons proposing to sell
securities pursuant to the Registration) require a limitation of the number of
shares to be underwritten, the Underwriter's Representative may limit, but not
to less than 10% of the total number of shares proposed to be registered under
this Section 7.6 (unless such Registration is the Company's initial public
offering, in which case no limitation on reduction shall be imposed), the number
of shares of Registrable Securities to be included in such Registration and
underwriting; provided however, that any Registrable Securities so excluded
shall retain any and all Registration rights set forth in this Section.

                 (c)   Allocation of Shares.  In the event that the
                       --------------------
Underwriter's Representative limits the number of shares to be included in a
Registration pursuant to Section 7.4(b), the number

                                      -13-
<PAGE>

of shares to be included in such Registration shall be allocated in the
following manner:

                       (i)  in the case of a Registration pursuant to
Section 7.5, shares held by persons who are not legally entitled to include
shares in such Registration shall first be excluded from such Registration and
underwriting to the extent required by such limitation.  If a limitation of the
number of shares is still required after such exclusion, shares of Registrable
Securities shall next be excluded from such Registration and underwriting to the
extent required by such limitation, all prior to any limitation on the shares to
be Registered by the Company.

                       The number of shares that may be included in the
Registration and underwriting by selling shareholders shall be allocated among
all Holders thereof and other holders of securities other than Registrable
Securities requesting and legally entitled to include shares in such
Registration, in proportion, as nearly as practicable, to the respective amounts
of securities (including Registrable Securities) which such Holders and such
other holders would otherwise be entitled to include in such Registration. No
Registrable Securities or other securities excluded from the underwriting by
reason of this Section 7.6(c) shall be included in the Registration Statement.

                 (d)   Withdrawal.  If any Holder disapproves of the terms of
                       ----------
any such underwriting, he may elect to withdraw therefrom by written notice to
the Company and the underwriter delivered at least seven days prior to the
effective date of the Registration Statement. Any Registrable Securities or
other securities excluded or withdrawn from such underwriting shall be withdrawn
from such Registration.

          7.7    Blue Sky.  In the event of any Registration of Registrable
                 --------
Securities pursuant to Section 7.4 or 7.5, the Company will exercise its best
efforts to register and/or qualify the securities covered by the Registration
Statement under such other securities or Blue Sky laws of such jurisdictions
(not exceeding 20 unless otherwise agreed to by the Company) as shall be
reasonably appropriate for the distribution of such securities; provided,
however, that (i) the Company shall not be required to qualify to do business or
to file a general consent to service of process in any such states or
jurisdictions, and (ii) notwithstanding anything in this Agreement to the
contrary, in the event any jurisdiction in which the securities shall be
qualified imposes a non-waivable requirement that expenses incurred in
connection with the qualification of the securities be borne by selling
shareholders, such expenses shall be payable pro rata by selling shareholders.

                                      -14-
<PAGE>

          7.8    Expenses of Registration.  Registration expenses incurred  with
                 ------------------------
no more than two Registrations pursuant to Section 7.4, and all Registration
Expenses incurred in connection with Registrations pursuant to Section 7.5,
shall be borne by the Company, excluding underwriting discounts and commissions.
All Selling Expenses shall be borne by the holders of the securities Registered
pro rata on the basis of the number of shares registered.

          7.9    Registration Procedures.  The Company will keep each Holder
                 -----------------------
whose Registrable Securities are included in any Registration pursuant to this
Agreement advised as to the initiation and completion of such Registration. The
Company shall: (a) keep such Registration effective for a period of 120 days or
until the Holder or Holders have completed the distribution described in the
Registration Statement relating thereto, whichever first occurs; and (b) furnish
such number of prospectuses (including preliminary prospectuses) and other
documents as a Holder from time to time reasonably may request.

          7.10   Information Furnished by Holder.  It shall be a condition
                 -------------------------------
precedent of the Company's obligations under this Section that each Holder of
Registrable Securities included in any Registration furnish to the Company such
information regarding such Holder and the distribution proposed by such Holder
or Holders as the Company may reasonably request.

          7.11   Indemnification.
                 ---------------

                 (a)   Company's Indemnification of Holders.  To the extent
                       ------------------------------------
permitted by law, the Company shall indemnify each Holder, each of its officers,
directors and constituent partners, legal counsel for the Holders, and each
person controlling such Holder, with respect to which Registration,
qualification or compliance of Registrable Securities has been effected pursuant
to this Agreement against all claims, losses, damages or liabilities (or actions
in respect thereof) to the extent such claims, losses, damages or liabilities
arise out of or are based upon any untrue statement (or alleged untrue
statement) of a material fact contained in any prospectus or other document
(including any related Registration Statement) incident to any such
Registration, qualification or compliance, or are based on any 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 any violation by
the Company of any rule or regulation promulgated under the Securities Act
applicable to the Company and relating to action or inaction required of the
Company in connection with any such Registration, qualification or compliance;
and the Company will reimburse each such Holder, such directors, officers,
partners or law firm, each such underwriter and each person who controls any
such Holder or underwriter, for any legal and any other expenses

                                      -15-
<PAGE>

reasonably incurred in connection with investigating or defending any such
claim, loss, damage, liability or action; provided, however, that the indemnity
contained in this Section 7.11 shall not apply to amounts paid in settlement of
any such claim, loss, damage, liability or action if settlement is effected
without the consent of the Company (which consent shall not unreasonably be
withheld); and provided, further, that the Company will not be liable in any
such case to the extent that any such claim, loss, damage, liability or expense
arises out of or is based upon any untrue statement or omission based upon
written information furnished to the Company by such Holder, officer, director,
partner, counsel or controlling person and stated to be specifically for use in
connection with the Registration and offering of securities of the Company.

          (b)    Holder's Indemnification of Company.  To the extent permitted
                 -----------------------------------
by law, each Holder shall, if Registrable Securities held by such Holder are
included in the securities as to which such Registration, qualification or
compliance is being effected pursuant to this Agreement, indemnify the Company,
each of its directors and officers, each legal counsel and independent
accountant of the Company, each underwriter, if any, of the Company's securities
covered by such a Registration Statement, each person who controls the Company
or such underwriter within the meaning of the Securities Act, and each other
such Holder, each of its officers, directors and constituent partners and each
person controlling such other Holder, against all claims, losses, damages and
liabilities (or actions in respect thereof) arising out of or based upon any
untrue statement (or alleged untrue statement) of a material fact contained in
any such Registration Statement, prospectus, offering circular or other
document, or any 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 any violation by such Holder of any rule or regulation
promulgated under the Securities Act applicable to such Holder and relating to
action or inaction required of such Holder in connection with any such
Registration, qualification or compliance; and will reimburse the Company, such
Holders, such directors, officers, partners, persons, law and accounting firms,
underwriters and control persons for any legal and any other expenses reasonably
incurred in connection with investigating or defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such Registration Statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company by such Holder, or an officer, director, constituent
partner, counsel or controlling persons of such Holder, and stated to be
specifically for use in connection with the Registration and offering of
securities of the Company.

                                      -16-
<PAGE>

                    (c)   Indemnification Procedure. Promptly after receipt by
                          -------------------------
an indemnified party under this Section 7.11 of notice of the commencement of
any action, such indemnified party will, if a claim in respect thereof is to be
made against an indemnifying party under this Section 7.11 notify the
indemnifying party in writing of the commencement thereof and generally
summarize such action. The indemnifying party shall have the right to
participate in and to assume the defense of such claim; provided, however, that
the indemnifying party shall be entitled to select counsel for the defense of
such claim with the approval of any parties entitled to indemnification, which
approval shall not be unreasonably withheld; provided further, however, that if
either party reasonably determines that there may be a conflict between the
position of the Company and the Holders in conducting the defense of such
action, suit or proceeding by reason of recognized claims for indemnity under
this Section 7.11 then counsel for such party shall be entitled to conduct the
defense to the extent reasonably determined by such counsel to be necessary to
protect the interest of such party. The failure to notify an indemnifying party
promptly of the commencement of any such action, if prejudicial to the ability
of the indemnifying party to defend such action, shall relieve such indemnifying
party, to the extent so prejudiced, of any liability to the indemnified party
under this Section 7.11 but the omission so to notify the indemnifying party
will not relieve such party of any liability that such party may have to any
indemnified party otherwise other than under this Section 7.11.

          7.12      Rule 144 Reporting. With a view to making available the
                    ------------------
benefits of certain rules and regulations of the Commission which may at any
time permit the sale of the restricted securities to the public without
registration, after such time as a public market exists for the Common Stock of
the Company, the Company agrees to use its best efforts to:

                    (a)    Make and keep public information available, as those
terms are understood and defined in Rule 144 under the Securities Act, at all
times after the effective date that the Company becomes subject to the reporting
requirements of the Securities Act or the Securities Exchange Act of 1934, as
amended.

                    (b)    Use its best efforts to file with the Commission in a
timely manner all reports and other documents required of the Company under the
Securities Act and the Securities Exchange Act of 1934, as amended (at any time
after it has become subject to such reporting requirements);

                    (c)    So long as a Purchaser owns any restricted securities
to furnish to the Purchaser forthwith upon request a written statement by the
Company as to its compliance with the reporting requirements of said Rule 144
(at any time after 90 days after the effective date of the first registration
statement filed

                                      -17-
<PAGE>

by the Company for an offering of its securities to the general public), and of
the Securities Act and the Securities Exchange Act of 1934 (at any time after it
has become subject to such reporting requirements), a copy of the most recent
annual or quarterly report of the Company, and such other reports and documents
of the Company and other information in the possession of or reasonably
obtainable by the Company as a Purchaser may reasonably request in availing
itself of any rule or regulation of the Commission allowing a Purchaser to sell
any such securities without registration.

          7.13      Transfer of Registration Rights. The rights to cause the
                    -------------------------------
Company to register securities granted Holders under Sections 7.4 and 7.5 may be
assigned to a transferee or assignee reasonably acceptable to the Company in
connection with any transfer or assignment of Registrable Securities by a Holder
provided that (i) such transfer may otherwise be effected in accordance with
applicable securities laws, and (ii) such assignee or transferee acquires either
(A) at least 50,000 shares of Registrable Securities or (B) all Registrable
Securities held by such transferring or assigning Holder. Notwithstanding the
foregoing, the rights to cause the Company to register securities may be
assigned to any constituent partner of a Holder, without compliance with item
(ii) above, provided written notice thereof is promptly given to the Company.

     8.   Right of First Refusal.
          ----------------------

          8.1  Grant of Right.  Except as set forth in Section 8.5, the
               --------------
Company hereby grants to each Investor who continues to hold Stock the right of
first refusal to purchase all or any part of such Investor's Pro Rata Share (as
hereinafter defined) of the New Securities (as defined in Section 8.2) which the
Company may, from time to time, propose to sell and issue.  The Investors may
purchase said New Securities on the same terms and at the same price at which
the Company proposes to sell the New Securities.  The "Pro Rata Share" of each
Investor, for purposes of this right of first refusal, is the ratio of the total
number of shares of Common Stock held by such Investor, including (i) any shares
of Common Stock into which shares of Preferred Stock held by such Investor are
convertible, and (ii) any shares deliverable upon the exercise of options of
other rights to purchase Common Stock held by such Investor, to the total number
of shares of Common Stock outstanding immediately prior to the issuance of the
New Securities (including (i) any shares of Common Stock into which outstanding
shares of Preferred Stock are convertible and (ii) any shares deliverable upon
the exercise of options of other rights to purchase Common Stock held by such
Investor).

          8.2  New Securities.   "New Securities" shall mean any capital
               --------------
stock of the Company, whether now authorized or not, and any rights, options or
warrants to purchase said capital stock, and

                                      -18-
<PAGE>

securities of any type whatsoever that are, or may become, convertible into said
capital stock; provided, however, that "New Securities" does not include (i) the
               --------  -------
shares of Stock purchased pursuant to this Agreement or other securities issued
or issuable upon conversion of the Stock ("Conversion Shares"), (ii) securities
offered pursuant to a registration statement filed under the Securities Act of
1933 ("Securities Act"), (iii) securities issued pursuant to the acquisition of
another corporation by the Company by merger, purchase of substantially all of
the assets or other reorganization, (iv) shares offered pursuant to lease
financing transactions or bank or lending institution financing transactions,
and (v) all securities hereafter issued or issuable to officers, directors,
employees or consultants of the Company (for the primary purpose of soliciting
or retaining their employment or services) pursuant to any employee or
consultant stock offering, plan or arrangement approved by the Board of
Directors.

          8.3  Notice.  In the event the Company proposes to undertake
               ------
an issuance of New Securities, it shall give to the Investors written notice
(the "Notice") of its intention, describing the type of New Securities, number
of shares, the price, the terms upon which the Company proposes to issue the
same, and notice to the effect that each Investor must respond to such Notice
within thirty (30) days after the date thereof.  The Investors shall have thirty
(30) days from the date of such Notice to purchase any or all of the New
Securities for the price and upon the terms specified in the Notice by giving
written notice to the Company and stating therein the quantity of New Securities
to be purchased and forwarding payment for such New Securities to the Company if
immediate payment is required by such terms, or in any event no later than
forty-five (45) days after the date of the Notice.

          8.4  Sale after Notice.  In the event any Investor fails to
               -----------------
exercise in full the right of first refusal within said thirty (30) day period,
the Company shall have ninety (90) days thereafter to sell or enter into an
agreement (pursuant to which the sale of New Securities covered thereby shall be
closed, if at all, within thirty (30) days from the date of said agreement) to
sell the New Securities respecting which such Investor's rights were not
exercised, at a price and upon general terms no more favorable to the Investors
thereof than specified in the Notice.  In the event the Company has not sold the
New Securities within said ninety (90) day period (or sold and issued New
Securities in accordance with the foregoing within thirty (30) days from the
date of said agreement), the Company shall not thereafter issue or sell any New
Securities without first offering such securities to the Investors in the manner
provided above.

          8.5  Expiration.  The right of first refusal granted under this
               ----------
Section 8 shall expire upon the earlier of:

                                      -19-
<PAGE>

          (a)  The closing of the Company's sale of its Common Stock in a
bona fide, firm commitment underwritten public offering pursuant to a
registration statement declared effective by the Securities and Exchange
Commission under the Securities Act of 1933.; or

          (b)  The date on which the Company is acquired by another entity by
merger, purchase of substantially all of its assets or other reorganization.

          8.6  Assignment. The right of first refusal granted under this
               ----------
Section 8 is assignable by the Investors to any transferee of a minimum of Fifty
Thousand (50,000) shares of Preferred Stock or the Common Stock into which it
has been converted.

     9.   Covenants of the Company.
          ------------------------

          9.1  Delivery of Financial Statements. The Company shall deliver to
               --------------------------------
the Investors:

               (a)  as soon as practicable after the end of each fiscal year of
the Company an income statement for such fiscal year, a balance sheet of the
Company as of the end of such year, and a schedule as to the sources and
applications of funds for such year, such year-end financial reports to be
audited and in reasonable detail, prepared in accordance with generally accepted
accounting principles ("GAAP");

               (b)  as soon as practicable after the end of each month of each
fiscal quarter of the Company an unaudited profit or loss statement and schedule
as to the sources and application of funds for each quarterly reporting period
and an unaudited balance sheet as of the end of such quarter in reasonable
detail;

               (c)  within ten (10) days of the end of each month, an unaudited
balance sheet as of the end of such month, including a comparison to plan, in
reasonable detail; provided, however, that the Company shall be required to
deliver such documents as required under this Section 9.1(c) only to Investors
(and affiliates of each Investor whose shares shall be aggregated with each such
Investor for purposes of this section), continuing to hold at least 100,000
shares of Series A Preferred Stock or Common Stock of the Company; and

               (d)  as soon as practicable after the end of each fiscal year of
the Company an annual business plan and budget; provided, however, that the
Company shall be required to deliver such documents as required under this
Section 9.1(d) only to Investors (and affiliates of each Investor whose shares
shall be aggregated with each such Investor for purposes of this section)

                                      -20-
<PAGE>

continuing to hold at least 100,000 shares of Series A Preferred Stock or Common
Stock of the Company.

          9.2  Termination of Information Covenant. The covenant set forth in
               -----------------------------------
Section 9.1 shall terminate as to the Investors and be of no further force or
effect upon the initial sale of securities pursuant to a registration statement
filed by the Company under the Securities Act in connection with the firm
commitment underwritten offering of its securities to the general public is
consummated.

          9.3  Key Man Life Insurance. Within thirty (30) days after the date of
               ----------------------
the Closing the Company shall obtain key man life insurance in an amount not
less than $2,000,000, with proceeds payable to the Company, on the life of Ashok
Santhanam.

          9.4  Board of Directors.
               ------------------

               (a)  If upon the Closing, the number of authorized directors of
the Company is three, then as soon as practicable after the Closing, the Company
shall cause to be elected to its Board of Directors (i) one representative
elected by the Investors, and (ii) two representatives elected by the holders of
Common Stock of the Company, at least one of which shall be reasonably
acceptable to the Investors.

               (b)  If upon the Closing, the number of authorized directors of
the Company is five, then as soon as practicable after the Closing, the Company
shall cause to be elected to its Board of Directors (i) one representative
elected by the Investors, (ii) two representatives elected by the holders of
Common Stock of the Company, at least one of which shall be reasonably
acceptable to the Investors, and (iii) two representatives elected by the
Investors and the holders of Common Stock of the Company voting together as a
single class.

     10.  Miscellaneous.
          -------------

          10.1 Survival of Warranties. The warranties, representations and
               ----------------------
covenants of the Company and the Investors contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement and the
Closing and shall in no way be affected by any investigation of the subject
matter thereof made by or on behalf of the Investors or the Company.

          10.2 Transfer; Successors and Assigns. The terms and conditions of
               --------------------------------
this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obliga-

                                      -21-
<PAGE>

tions, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement.

          10.3    Governing Law. This Agreement shall be governed by and
                  -------------
construed under the laws of the State of California as applied to agreements
among California residents entered into and to be performed entirely within
California.

          10.4    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.

          10.5    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.

          10.6    Notices. Unless otherwise provided, any notice required or
                  -------
permitted under this Agreement shall be given in writing and shall be deemed
effectively given upon personal delivery to the party to be notified or upon
deposit with the United States Post Office, by registered or certified mail,
postage prepaid and addressed to the party to be notified at the address
indicated for such party on the signature page hereof, or at such other address
as such party may designate by ten (10) days' advance written notice to the
other parties.

          10.7    Finder's Fee. Except as elsewhere disclosed in this Agreement,
                  ------------
or in Exhibit C hereto, each party represents that it neither is nor will be
obligated for any finder's fee or commission in connection with this
transaction. The Investor agrees to indemnify and to hold harmless the Company
from any liability for any commission or compensation in the nature of a
finder's fee (and the costs and expenses of defending against such liability or
asserted liability) for which the Investor or any of its officers, employees, or
representatives are responsible.

          The Company agrees to indemnify and hold harmless the Investor from
any liability for any commission or compensation in the nature of a finder's fee
(and the costs and expenses of defending against such liability or asserted
liability) for which the Company or any of its officers, employees or
representatives is responsible.

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

                                      -22-
<PAGE>

          10.9    Amendments and Waivers. Other than as provided in Section 7
                  ----------------------
hereof, any term of this Agreement may be amended and the observance of any term
of this Agreement may be waived (either generally or in a particular instance
and either retroactively or prospectively), only with the written consent of the
Company and a majority of the Investors, provided that any term of Section 7 may
be amended and the observance of any term of Section 7 may be waived (either
generally or in a particular instance and either retroactively or prospectively)
only with the written consent of the Company and the holders of a majority of
the then-outstanding Registrable Securities. Any amendment or waiver effected in
accordance with this Section shall be binding upon each transferee of any Stock
or Registrable Securities, each future holder of all such securities, and the
Company.

          10.10   Severability. If one or more provisions of this Agreement are
                  ------------
held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if
such provision were so excluded and shall be enforceable in accordance with its
terms.

          10.11   Aggregation of Stock. All shares of Common Stock held or
                  --------------------
acquired by affiliated entities or person shall be aggregated for the purpose of
determining the availability of any rights under Section 7 of this Agreement.

          10.12   Entire Agreement. This Agreement constitutes the entire
                  ----------------
agreement between the parties hereto pertaining to the subject matter hereof,
and any and all other written or oral agreements existing between the parties
hereto are expressly canceled.

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

INVENTA CORPORATION

By:                    /s/ Ashok K. Santhanam
                       --------------------------------
                       Ashok K. Santhanam,
                       President

                       Address:   2620 Augustine Drive, Suite 225
                                  Santa Clara, CA 95054

                                      -23-
<PAGE>

INVESTORS:

 /s/ Robert Ducommun                    /s/ Harry A. Caunter
---------------------------            ---------------------------
 ROBERT DUCOMMUN                        HARRY A. CAUNTER

 /s/ Ramesh Vasudevan                   /s/ Santhanam C. Shekar
---------------------------            ---------------------------
 RAMESH VASUDEVAN                       SANTHANAM C. SHEKAR

 /s/ Gomati Venkateswaran               /s/ Usha Vijayarajan
---------------------------            ---------------------------
 GOMATI VENKATESWARAN                   USHA VIJAYARAJAN

 /s/ Maya S. Hattangady                 /s/ Andrew Potter
---------------------------            ---------------------------
 MAYA S. HATTANGADY                     ANDREW POTTER

 /s/ Electra D. de Peyster              PALMER G. AND CHARLES E.
---------------------------             DUCOMMUN CHARITABLE ANNUITY
 ELECTRA D. de PEYSTER                  TRUST, u/d/t dated 7/21/83

                                        By: /s/ Robert Ducommun
                                           -----------------------

                                        Title: Trustee
                                              --------------------

                                      -24-
<PAGE>

                                   EXHIBIT A
                                   ---------

                             SCHEDULE OF INVESTORS

<TABLE>
<CAPTION>
                 Name and Address                            Shares                  Amount
          ----------------------------                   --------------           ------------
<S>                                                      <C>                      <C>
Robert Ducommun...................................           60,000                 $ 60,000
P. O. Box 1042
Ross, CA  94957

Palmer G. and Charles E. Ducommun Charitable
Annuity Trust, u/d/t 7/21/83.....................            60,000                   60,000
P.O. Box 1562
Ross, CA  94957
Attn:  Robert Ducommun

Electra D. de Peyster.............................           60,000                   60,000
2000 Redwood Hill Court
Santa Rosa, CA  95404

Harry A. Caunter..................................           25,000                   25,000
162 Fincharn Lane
Inverness, IL  60067

Ramesh Vasudevan..................................          100,000                  100,000
10 Tangreen Court #2105
Willowdale, Ontario
CANADA

Santhanam C. Shekar...............................           25,000                   25,000
331 Blackfield Drive
Tiburon, CA  94920

Gomati Venkateswaran..............................           15,000                   15,000
A-1 Anand Bhavan
Alacrity Flats
South Bhog Road
T. Nagar Madras 600017
INDIA

Usha Vijayarajan..................................           25,000                   25,000
2/7 12th Cross
Rajmahal Extension
Bangalore  560080
INDIA

Maya S. Hattangady................................           10,000                   10,000
414 E. Lansing Way
Fresno, CA  93704

Andrew Potter.....................................           20,000                   20,000
923 Cowper                                                  -------                 --------
Palo Alto, CA  94301
                         TOTAL....................          400,000                 $400,000
</TABLE>

                                      -25-

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