Document:

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                                                                   EXHIBIT 10.15

                          SECOND AMENDED AND RESTATED
                          INVESTORS' RIGHTS AGREEMENT

          This Second Amended And Restated Investors' Rights Agreement is made
as of February 25, 2000, by and among DoveBid, Inc., a Delaware corporation (the
"Company"), and the investors listed on Schedule A hereto, each of which is
                                        ----------
herein referred to as an "Investor" and collectively as the "Investors."

                                  BACKGROUND

          A.  The Company has issued 12,090,909 shares of the Company's Series A
Preferred Stock to one Investor pursuant to the Series A Preferred Stock
Purchase Agreement dated as of June 4, 1999 (the "Series A Purchase Agreement")
and has issued 16,830,635 shares of the Company's Series B Preferred Stock to
certain Investors pursuant to the Series B Preferred Stock Purchase Agreement
dated as of October 18, 1999 (the "Series B Purchase Agreement"). Such Investors
(the "Prior Investors") possesses certain rights pursuant to the Amended and
Restated Investors' Rights Agreement dated as of October 18, 1999 between the
Company and such Investor (the "Prior Agreement").

          B.  The Company and certain of the Investors (the "New Investors") are
parties to the Series C Preferred Stock Purchase Agreement of even date herewith
(the "Series C Purchase Agreement").

          C.  To induce the Company to enter into the Series C Purchase
Agreement and to induce the New Investors to invest funds in the Company
pursuant to the Series C Purchase Agreement, the Prior Investors and the Company
hereby agree that this Agreement shall govern the rights of all of the Investors
to cause the Company to register shares of Common Stock issuable to the
Investors and certain other matters as set forth herein and shall supercede the
Prior Agreement.

          Now, therefore, the parties hereby agree as follows:

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

              1.1   Definitions.  For purposes of this Agreement:
                    -----------

                    (a)  The term "Act" means the Securities Act of 1933, as
     amended.

                    (b)  The term "Form S-3" means such form under the Act as in
     effect on the date hereof or any registration form under the Act
     subsequently adopted by the Securities and Exchange Commission ("SEC")
     which permits inclusion or incorporation of substantial information by
     reference to other documents filed by the Company with the SEC.

                    (c)  The term "Holder" means any person, including the
     Investors, owning or having the right to acquire Registrable Securities or
     any assignee thereof in accordance with Section 1.13 hereof.
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               (d) The term "Initiating Holders" means Holders, who own at least
     fifty percent (50%) of the Registrable Securities then outstanding.

               (e) The term "1934 Act" means the Securities Exchange Act of
     1934, as amended.

               (f) "Qualifying Acquisition" means any merger or consolidation of
     the Company with or into another entity resulting in the stockholders of
     the Company holding less than a majority of the voting power of the
     surviving Company, or the sale by the Company's stockholders of more than
     50% of the voting power of the Company in one transaction or series of
     related transactions, other than (i) open market sales or (ii) any sale to
     a person or entity who is an affiliate of the Company within the meaning of
     the Act, that has not been approved by the Company's Board of Directors by
     unanimous vote.

               (g) A "Qualifying IPO" means the consummation of the sale of
     securities pursuant to a closing of a bona fide, firm-commitment,
     underwritten public offering of shares of Common Stock registered under the
     Act, raising gross proceeds of at least $50,000,000 in the aggregate;
     provided, that immediately after such closing the Company's Common Stock is
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     listed on a national securities exchange or over-the-counter market.

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

               (i) The term "Registrable Securities" means (i) the Common Stock
     issuable or issued upon conversion of (A) the Series A Preferred Stock
     issued pursuant to the Series A Purchase Agreement, (B) the Series B
     Preferred Stock issued pursuant to the Series B Purchase Agreement, (C) the
     Series C Preferred Stock issued pursuant to the Series C Purchase Agreement
     or (D) the Series C Preferred Stock issued or issuable pursuant to the
     Warrant issued under the Series C Purchase Agreement (the "Warrant"); and
     (ii) any Common Stock of the Company issued as (or issuable upon the
     conversion or exercise of any warrant, right or other security which is
     issued as) a split, dividend or other distribution with respect to, or in
     exchange for or in replacement of, such Series A, B or C Preferred Stock or
     Common Stock; excluding in all cases, however, any Registrable Securities
     sold by a person in a transaction in which such person's rights under this
     Section 1 are not assigned in accordance with this Agreement and any
     Registrable Securities sold to the public in registered public offering or
     sold in accordance with Rule 144 promulgated under the Securities Act.

               (j) The number of shares of "Registrable Securities then
     outstanding" shall mean the number of shares of Common Stock then
     outstanding which are, and the number of shares of Common Stock issuable
     pursuant to then exercisable or convertible securities which are,
     Registrable Securities.

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

               (a)  If the Company shall receive at any time after the earlier
of (i) November 30, 2001 or (ii) six (6) months after the effective date of the
first registration statement for a public offering of securities of the Company
(other than a registration statement relating to either the sale of securities
to employees of the Company pursuant to a stock option, stock purchase or
similar plan or a SEC Rule 145 transaction), a written request from the
Initiating Holders that the Company file a registration statement under the Act
covering the registration of at least twenty percent (20%) of the Registrable
Securities then outstanding (or a lesser percent if the anticipated aggregate
offering price, net of underwriting discounts and commissions, would exceed
$7,000,000), then the Company shall, within ten (10) days after the receipt
thereof, give written notice of such request to all Holders and shall, subject
to the limitations of subsection 1.2(b), use its best efforts to effect as soon
as practicable the registration under the Act of all Registrable Securities
which the Holders request to be registered within twenty (20) days after the
mailing of such notice by the Company in accordance with Section 3.5.

               (b)  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
this Section 1.2, and the Company shall include such information in the written
notice referred to in subsection 1.2(a). The underwriter will be selected by a
majority in interest of the Initiating Holders and shall be reasonably
acceptable to the Company. In such event, the right of any Holder to include
such Holder's Registrable Securities in such registration shall be conditioned
upon such Holder's participation in such underwriting and the inclusion of such
Holder's Registrable Securities in the underwriting (unless otherwise mutually
agreed by a majority in interest of the Initiating Holders and such Holder) to
the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall (together with the Company as provided in
subsection 1.4(e)) enter into an underwriting agreement in customary form with
the underwriter or underwriters selected for such underwriting by a majority in
interest of the Initiating Holders. Notwithstanding any other provision of this
Section 1.2, if the underwriter advises the Initiating Holders in writing that
marketing factors require a limitation of the number of shares to be
underwritten, then the Initiating Holders shall so advise all Holders of
Registrable Securities which would otherwise be underwritten pursuant hereto,
and the number of shares of Registrable Securities that may be included in the
underwriting shall be allocated among all Holders thereof, including the
Initiating Holders, in proportion (as nearly as practicable) to the amount of
Registrable Securities of the Company owned by each Holder; provided, however,
that the number of shares of Registrable Securities to be included in such
underwriting shall not be reduced unless all other securities are first entirely
excluded from the underwriting.

               (c)  The Company is obligated to effect only two (2) such
registrations pursuant to this Section 1.2.

               (d)  Notwithstanding the foregoing, if the Company shall furnish
to Holders requesting a registration statement pursuant to this Section 1.2, a
certificate signed by the Chief Executive Officer 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 and it is therefore essential to defer the filing of

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such registration statement, the Company shall have the right to defer taking
action with respect to such filing for a period of not more than one hundred
twenty (120) days after receipt of the request of the Initiating Holders;
provided, however, that the Company may not utilize this right more than once in
any twelve-month period.

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

                    (i)  During the period starting with the date thirty (30)
     days prior to the Company's good faith estimate of the date of filing of,
     and ending on a date one hundred eighty (180) days after the effective date
     of, a registration subject to Section 1.3 hereof, provided that the Company
     is actively employing in good faith all reasonable efforts to cause such
     registration statement to become effective; or

                    (ii) If the Initiating Holders propose to dispose of shares
     of Registrable Securities that may be immediately registered on Form S-3
     pursuant to a request made pursuant to Section 1.12 below.

          1.3  Company Registration.  If (but without any obligation to do so)
               --------------------
the Company proposes to register (including for this purpose a registration
effected by the Company for stockholders other than the Holders) any of its
stock or other securities under the Act in connection with the public offering
of such securities (other than a registration relating solely to the sale of
securities to participants in a Company stock plan, a SEC Rule 145 transaction
or a registration on any form which does not include substantially the same
information as would be required to be included in a registration statement
covering the sale of the Registrable Securities), the Company shall, at such
time, promptly give each Holder written notice of such registration.  Upon the
written request of each Holder given within twenty (20) days after mailing of
such notice by the Company in accordance with Section 3.5, the Company shall,
subject to the provisions of Section 1.8, cause to be registered under the Act
all of the Registrable Securities that each such Holder has requested to be
registered.

          1.4  Obligations of the Company.  Whenever required under this Section
               --------------------------
1 to effect the registration of any Registrable Securities, the Company shall,
as expeditiously as reasonably possible:

               (a)  Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its best efforts to cause such
registration statement to become effective, and, upon the request of the Holders
of a majority of the Registrable Securities registered thereunder, keep such
registration statement effective for up to one hundred twenty (120) days or
until the distribution contemplated in the Registration Statement has been
completed; provided, however, that (i) such 120-day period shall be extended for
a period of time equal to the period the Holder refrains from selling any
securities included in such registration (A) at the request of an underwriter of
Common Stock (or other securities) of the Company or (B) when a prospectus must
be updated pursuant to Section 1.4(f) below; and (ii) in the case of any
registration of Registrable Securities on Form S-3 which are intended to be
offered on a continuous or delayed basis, such 120-day period shall be extended,
if necessary, to keep the registration statement effective until all such
Registrable Securities are sold, provided that

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Rule 415, or any successor rule under the Act, permits an offering on a
continuous or delayed basis, and provided further that applicable rules under
the Act governing the obligation to file a post-effective amendment permit, in
lieu of filing a post-effective amendment which (1) includes any prospectus
required by Section 10(a)(3) of the Act or (2) reflects facts or events
representing a material or fundamental change in the information set forth in
the registration statement, the incorporation by reference of information
required to be included in (1) and (2) above to be contained in periodic reports
filed pursuant to Section 13 or 15(d) of the 1934 Act in the registration
statement.

          (b) Prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Act with respect to the disposition of all securities covered by such
registration statement.

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

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

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

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

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

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

          (i) Furnish, at the request of any Holder requesting registration of
Registrable Securities pursuant to this Section 1, on the date that such
Registrable Securities are

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

          1.5  Furnish Information.
               -------------------

               (a)  It shall be a condition precedent to the obligations of the
Company to take any action pursuant to this Section I with respect to the
Registrable Securities of any selling Holder that such Holder shall furnish to
the Company such information regarding itself, the Registrable Securities held
by it, and the intended method of disposition of such securities as shall be
required to effect the registration of such Holder's Registrable Securities.

               (b)  The Company shall have no obligation with respect to any
registration requested pursuant to Section 1.2 or Section 1.12 if, due to the
operation of subsection 1.5(a), the number of shares or the anticipated
aggregate offering price of the Registrable Securities to be included in the
registration does not equal or exceed the number of shares or the anticipated
aggregate offering price required to originally trigger the Company's obligation
to initiate such registration as specified in subsection 1.2(a) or subsection
1.12(b)(2), whichever is applicable.

          1.6  Expenses of Demand Registration.  All expenses other than
               -------------------------------
underwriting discounts and commissions incurred in connection with
registrations, filings or qualifications pursuant to Section 1.2, including
(without limitation) all registration, filing and qualification fees, printers'
and accounting fees, fees and disbursements of counsel for the Company, and the
reasonable fees and disbursements of one counsel for the selling Holders shall
be borne by the Company; provided, however, that the Company shall not be
required to pay for any expenses of any registration proceeding begun pursuant
to Section 1.2 if the registration request is subsequently withdrawn at the
request of the Holders of a majority of the Registrable Securities to be
registered (in which case each Holder shall bear a pro rata portion of such
expenses, based on the ratio of the number of Registrable Securities to have
been included in such registration by such Holder compared to the total number
of Registrable Securities to have been included by all Holders), unless the
Holders of a majority of the Registrable Securities agree to forfeit their right
to one demand registration pursuant to Section 1.2; provided further, however,
that if at the time of such withdrawal, the Holders have learned of a material
adverse change in the condition, business, or prospects of the Company from that
known to the Holders at the time of their request and have withdrawn the request
with reasonable promptness following disclosure by the Company of such material
adverse change, then the Holders shall not be required to pay any of such
expenses and shall retain their rights pursuant to Section 1.2.

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          1.7  Expenses of Company Registration.  The Company shall bear and pay
               --------------------------------
all expenses incurred in connection with any registration, filing or
qualification of Registrable Securities with respect to the company
registrations pursuant to Section 1.3 and the firsts two Form S-3 registrations
pursuant to Section 1.12 below, for each Holder, including (without limitation)
all registration, filing, and qualification fees, printers and accounting fees
relating or apportionable thereto, but excluding underwriting discounts and
commissions relating to Registrable Securities.  In addition, the Company shall
pay the reasonable fees and disbursements of one counsel for the selling
Holders.

          1.8  Underwriting Requirements.  In connection with any offering
               -------------------------
involving an underwriting of shares of the Company's capital stock, the Company
shall not be required under Section 1.3 to include any of the Holders'
securities in such underwriting unless they accept the terms of the underwriting
as agreed upon between the Company and the underwriters selected by it (or by
other persons entitled to select the underwriters), and then only in such
quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If the total amount of
securities, including Registrable Securities, requested by stockholders to be
included in such offering exceeds the amount of securities sold other than by
the Company that the underwriters determine in their sole discretion is
compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including
Registrable Securities, which the underwriters determine in their sole
discretion will not jeopardize the success of the offering (the securities so
included to be apportioned pro rata among the selling stockholders according to
the total amount of securities entitled to be included therein owned by each
selling stockholder or in such other proportions as shall mutually be agreed to
by such selling stockholders) but in no event shall:

               (i)  the amount of securities of the selling Holders included in
     the offering be reduced below thirty percent (30%) of the total amount of
     securities included in such offering, unless such offering is the initial
     public offering of the Company's securities in which case the selling
     stockholders may be excluded if the underwriters make the determination
     described above and no other stockholder's securities are included; or

               (ii) notwithstanding (i) above, any shares being sold by a
     stockholder exercising a demand registration right similar to that granted
     in Section 1.2 above be excluded from such offering.

For purposes of the preceding parenthetical concerning apportionment, for any
selling stockholder which is a holder of Registrable Securities and which is a
partnership or corporation, the partners, retired partners, members, retired
members and stockholders of such holder, or the estates and family members of
any such partners, retired partners, members, retired members and any trusts for
the benefit of any of the foregoing persons shall be deemed to be a single
"selling stockholder," and any pro-rata reduction with respect to such "selling
stockholder" shall be based upon the aggregate amount of shares carrying
registration rights owned by all entities and individuals included in such
"selling stockholder," as defined in this sentence.

          1.9  Delay of Registration.  No Holder shall have any right to obtain
               ---------------------
or seek an injunction restraining or otherwise delaying any such registration
filed with and declared effec-

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tive by the SEC as the result of any controversy that might arise with respect
to the interpretation or implementation of this Section 1.

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

               (a)  To the extent permitted by law, the Company will indemnify
and hold harmless each Holder, the partners, officers, directors, stockholders
and members of each Holder, any underwriter (as defined in the Act) for such
Holder and each person, if any, who controls such Holder or underwriter within
the meaning of the Act or the 1934 Act, against any losses, claims, damages or
liabilities (joint or several) to which they may become subject under the Act,
or the 1934 Act, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively a "Violation"):

                    (i)   any untrue statement or alleged untrue statement of a
     material fact contained in such registration statement, including any
     preliminary prospectus or final prospectus contained therein, or any
     amendments or supplements thereto,

                    (ii)  the omission or alleged omission to state therein a
     material fact required to be stated therein, or necessary to make the
     statements therein not misleading, or

                    (iii) any violation or alleged violation by the Company of
     the Act, the 1934 Act, any other federal or state law, or any rule or
     regulation promulgated under the Act or the 1934 Act;

and the Company will pay to each such Holder, underwriter or controlling person
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the indemnity agreement contained in this subsection
1.10(a) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable in any such case for any such loss, claim, damage, liability
or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by any such Holder,
underwriter or controlling person.

               (b)  To the extent permitted by law, each selling Holder will
indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the Act, any underwriter, any other
Holder selling securities in such registration statement and any controlling
person of any such underwriter or other Holder, against any losses, claims,
damages or liabilities (joint or several) to which any of the foregoing persons
may become subject, under the Act, or the 1934 Act or any other federal or state
law insofar as such losses, claims, damages or liabilities (or actions in
respect thereto) arise out of or are based upon any Violation, in each case to
the extent (and only to the extent) that such Violation occurs in reliance upon
and in con-

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formity with written information furnished by such Holder expressly for use in
connection with such registration; and each such Holder will pay any legal or
other expenses reasonably incurred by any person intended to be indemnified
pursuant to this subsection 1.10(b), in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the indemnity agreement contained in this subsection 1.10(b) shall not
apply to amounts paid in settlement of any such loss, claim, damage, liability
or action if such settlement is effected without the consent of the Holder,
which consent shall not be unreasonably withheld; provided, that, in no event
shall any indemnity under this subsection 1.10(b) exceed the net proceeds from
the offering received by such Holder.

          (c) Promptly after receipt by an indemnified party under this Section
1.10 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 1.10, deliver to the
indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties which may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
1.10, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 1.10.

          (d) If the indemnification provided for in this Section 1.10 is held
by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, liability, claim, damage or expense referred to
therein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or expense
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense as well as any other relevant equitable
considerations; provided that in no event shall any contribution by a Holder
under this Section 1.10(d) exceed the gross proceeds from the offering received
by such Holder. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission.

          (e) Notwithstanding the foregoing, to the extent that the provisions
on indemnification and contribution contained in the underwriting agreement
entered into in con-

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nection with the underwritten public offering are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall control, provided
that the Company shall use its reasonable efforts to cause such provisions to
conform to those set forth herein.

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

          1.11 Reports Under 1934 Act. With a view to making available to the
               ----------------------
Holders the benefits of Rule 144 promulgated under the Act and any other rule or
regulation of the SEC that may at any time permit a Holder to sell securities of
the Company to the public without registration or pursuant to a registration on
Form S-3, the Company agrees to:

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

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

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

          1.12 Form S-3 Registration.  In case the Company shall receive from a
               ---------------------
Holder or Holders a written request or requests that the Company effect a
registration on Form S-3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by such Holder or
Holders, the Company will:

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

               (b)  as soon as practicable, effect such registration and all
     such qualifications and compliances as may be so requested and as would
     permit or facilitate the sale and distribution of all or such portion of
     such Holder's or Holders' Registrable Securities as are specified in such
     request, together with all or such portion of the Registrable Securities of
     any other Holder or Holders joining such request as are specified in a
     written request given within 15 days after receipt of such written notice
     from the Com-

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     pany; provided, however, that the Company shall not be obligated to effect
     any such registration, qualification or compliance, pursuant to this
     Section 1.12: (i) if Form S-3 is not available for such offering by the
     Holders; (ii) if the Holders, together with the holders of any other
     securities of the Company entitled to inclusion in such registration,
     propose to sell Registrable Securities and such other securities (if any)
     at an aggregate price to the public (net of any underwriters' discounts or
     commissions) of less than $1,000,000; (iii) if the Company shall furnish to
     the Holders a certificate signed by the Chief Executive Officer 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
     stockholders for such Form S-3 Registration to be effected at such time, in
     which event the Company shall have the right to defer the filing of the
     Form S-3 registration statement for a period of not more than 90 days after
     receipt of the request of the Holder or Holders under this Section 1.12;
     provided, however, that the Company shall not utilize this right (A) more
     than once in any twelve month period or (B) if it has exercised the
     deferral right in Section 1.2(d) in the previous twelve month period; (iv)
     if the Company has, within the twelve (12) month period preceding the date
     of such request, already effected two registrations on Form S-3 for the
     Holders pursuant to this Section 1.12; or (v) in any particular
     jurisdiction in which the Company would be required to qualify to do
     business or to execute a general consent to service of process in effecting
     such registration, qualification or compliance.

Subject to the foregoing, the Company shall file a registration statement
covering the Registrable Securities and other securities so requested to be
registered as soon as practicable after receipt of the request or requests of
the Holders. All expenses incurred in connection with a registration requested
pursuant to Section 1.12, including (without limitation) all registration,
filing, qualification, printer's and accounting fees and the reasonable fees and
disbursements of one counsel for the selling Holder or Holders and counsel for
the Company, but excluding any underwriters' discounts or commissions associated
with Registrable Securities, shall for the first two such registrations be borne
by the Company and, thereafter shall be borne pro rata by the Holder or Holders
participating in the Form S-3 Registration. Registrations effected pursuant to
this Section 1.12 shall not be counted as demands for registration or
registrations effected pursuant to Sections 1.2 or 1.3, respectively.

          1.13 Assignment of Registration Rights.  The rights to cause the
               ---------------------------------
Company to register Registrable Securities pursuant to this Section 1 may be
assigned (but only with all related obligations) by a Holder to a wholly-owned
subsidiary of a corporate Holder or to a transferee or assignee of Registrable
Securities who, after such assignment or transfer, holds at least 10% of the
Registrable Securities (subject to appropriate adjustment for stock splits,
stock dividends, combinations and other recapitalizations), provided the Company
is, within a reasonable time after such transfer, furnished with written notice
of the name and address of such transferee or assignee and the securities with
respect to which such registration rights are being assigned; and provided,
further, that such assignment shall be effective only if immediately following
such transfer the further disposition of such securities by the transferee or
assignee is restricted under the Act. For the purposes of determining the number
of shares of Registrable Securities held by a transferee or assignee, the
holdings of transferees and assignees of a partnership or limited liability
company who are partners or members or retired partners or members of such
entity

                                       11
<PAGE>

(including spouses and ancestors, lineal descendants and siblings of such
partners or members or spouses who acquire Registrable Securities by gift, will
or intestate succession) shall be aggregated together and with the partnership
or limited liability company; provided that all assignees and transferees who
would not qualify individually for assignment of registration rights shall have
a single attorney-in-fact for the purpose of exercising any rights, receiving
notices or taking any action under this Section 1.

          1.14 Limitations on Subsequent Registration Rights.  From and after
               ---------------------------------------------
the date of this Agreement, the Company shall not, without the prior written
consent of the Holders of a majority of the outstanding Registrable Securities,
enter into any agreement with any holder or prospective holder of any securities
of the Company which would allow such holder or prospective holder (a) to obtain
registration rights superior to or on parity with the rights contained in this
Agreement, (b) to include such securities in any registration filed under
Section 1.2 hereof, unless under the terms of such agreement, such holder or
prospective holder may include such securities in any such registration only to
the extent that the inclusion of its securities will not reduce the amount of
the Registrable Securities of the Holders which is included or (c) to make a
demand registration which could result in such registration statement being
declared effective prior to the earlier of either of the dates set forth in
subsection 1.2(a) or within one hundred twenty (120) days of the effective date
of any registration effected pursuant to Section 1.2.

          1.15 Market Stand-Off Agreement.  Each Investor hereby agrees that,
               --------------------------
during the period of duration specified by the Company and an underwriter of
common stock or other securities of the Company, following the effective date of
a Qualifying IPO, such Investor shall not, to the extent requested by the
Company and such underwriter, directly or indirectly sell, offer to sell,
contract to sell (including, without limitation, any short sale), grant any
option to purchase or otherwise transfer or dispose of (other than to donees who
agree to be similarly bound) any securities of the Company held by it at any
time during such period except common stock included in such registration;
provided, however, that:

               (a)  Such agreement shall not exceed one hundred eighty (180)
     days; and

               (b)  An Investor shall not be subject to such agreement unless
     substantially all executive officers and directors of the Company enter
     into similar agreements and all other Investors and holders of other
     registration rights are subject to or obligated to enter into similar
     agreements.

In order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to all securities of the Company held by each Investor
(and the shares or securities of every other person subject to the foregoing
restriction) until the end of such period.

          1.16 Termination of Registration Rights.  No Holder shall be entitled
               ----------------------------------
to exercise any right provided for in this Section 1 after the earlier of (a)
five (5) years following a Qualifying IPO (b) after a Qualifying Acquisition or
(c) with respect to any Holder which then owns one percent (1%) or less of the
outstanding capital stock of the Company, such time as the Holder can sell all
such stock under Rule 144 (or any successor rule) without restriction (including
without being subject to any sales volume limitation).

                                       12
<PAGE>

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

          2.1  Delivery of Financial Statements.  The Company shall deliver to
               --------------------------------
each Investor, for so long as such Investor continues to own at least five
percent (5%) of the Company's outstanding capital stock, on an as-converted
basis, and the Warrant, as if exercised and the shares acquired thereunder
converted, or, if less than five percent (5%) of such securities are purchased
by an Investor pursuant to the Series C Agreement but the Investor has purchased
at least 3,745,000 shares of Series C Preferred Stock thereunder, for so long as
such Investor continues to own all of the shares of Series C Preferred Stock
purchased thereunder or the Common Stock into which such shares may be
converted:

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

               (b) as soon as practicable, but in any event within forty-five
     (45) days after the end of each of the quarters of each fiscal year of the
     Company, an unaudited statement of operations and cash flow statement, for
     such fiscal quarter and setting forth year-to-date financial information,
     and an unaudited balance sheet as of the end of such fiscal quarter;

               (c) within twenty (20) days after the end of each month, an
     unaudited statement of operations and cash flow statement for such month
     and setting forth year-to-date financial information, and an unaudited
     balance sheet as of the end of such month, all in reasonable detail;

               (d) as soon as practicable, but in any event thirty (30) days
     prior to the end of each fiscal year, a financial budget and business plan
     for the next fiscal year, prepared on a monthly and quarterly basis, in
     form and substance reasonably acceptable to Investors;

               (e) with respect to the financial statements called for in
     subsection (b) and (c) of this Section 2.1, an instrument executed by the
     Chief Financial Officer or Chief Executive Officer of the Company
     certifying that such financials were prepared in accordance with GAAP
     consistently applied with prior practice for earlier periods (with the
     exception of footnotes that may be required by GAAP) and fairly present the
     financial condition of the Company and its results of operations for the
     period specified, subject to the year-end audit adjustment; and

               (f) such other information relating to the financial condition,
     business, prospects or corporate affairs of the Company as the Investor may
     from time to time reasonably request; provided, however that the Company
                                           --------  -------
     shall not be obligated pursuant to

                                       13
<PAGE>

     this Section 2.1(f) to provide access to any information which it
     reasonably considers a trade secret or other proprietary intellectual
     property information, unless the Investor has agreed to maintain such
     information in confidence.

          2.2  Inspection.  The Company shall permit each Investor, at such
               ----------
Investor's expense, to visit and inspect the Company's properties, to examine
its books of account and records and to discuss the Company's affairs, finances
and accounts with its officers, all at such reasonable times as may be requested
by the Investor; provided, however, that the Company shall not be obligated
                 --------  -------
pursuant to this Section 2.2 to provide access to any trade secret or other
proprietary intellectual property information, unless the Investor has agreed to
maintain such information in confidence.

          2.3  Termination of Information and Inspection Covenants.  The
               ---------------------------------------------------
covenants set forth in Sections 2.1 and 2.2 shall terminate and be of no further
force or effect upon the earlier of (A) immediately prior to the first closing
of a Qualifying IPO, (B) the Company first becoming subject to the periodic
reporting requirements of Sections 12(g) or 15(d) of the 1934 Act or (C) after a
Qualifying Acquisition.

          2.4  Right of First Offer.  Subject to the terms and conditions
               --------------------
specified in this Section 2.4, the Company hereby grants to each Major Investor
(as hereinafter defined) a right of first offer with respect to future sales by
the Company of its Shares (as hereinafter defined). For purposes of this Section
2.4, a "Major Investor" means any Investor who holds at least 1,500,000 shares
of Series A or B Preferred Stock (or the Common Stock issued upon conversion
thereof) issued pursuant to the Series A or B Purchase Agreements or who holds
any number of shares of Series C Preferred Stock issued or issuable pursuant to
the Series C Purchase Agreement or the Warrant.  For purposes of this Section
2.4, Investor includes any general or limited partners, members or affiliates of
an Investor, and the shares held by such general or limited partners, members or
affiliates shall be aggregated for purposes of determining whether the Investor
is a Major Investor.  An Investor shall be entitled to apportion the right of
first offer hereby granted it among itself and its partners, members and
affiliates in such proportions as it deems appropriate.  Each time the Company
proposes to offer any shares of, or securities convertible into or exercisable
for any shares of, any class of its capital stock ("Shares"), the Company shall
first make an offering of such Shares to each Major Investor in accordance with
the following provisions.

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

               (b)  Within 10 business days after receipt of the Notice, the
Major Investors may elect to purchase or obtain, at the price and on the terms
specified in the Notice, up to that portion of such Shares which equals the
proportion that the number of shares of Common Stock issued and held, or
issuable upon conversion of the Series A, B and C Preferred Stock then held, by
such Major Investor bears to the total number of shares of Common Stock of the
Company then outstanding (assuming full conversion and exercise of all
convertible or exercisable securities outstanding) as of the date of the Notice.

                                       14
<PAGE>

          (c) If all Shares which the Major Investors are entitled to obtain
pursuant to Section 2.4(b) above are not elected to be obtained as provided
herein, the Company shall promptly following the expiration of the period
provided in such Section 2.4(b), deliver to each Major Investor who has elected
to purchase its full initial portion in accordance with Section 2.4(b) (a "Fully
Exercising Investor"), a written Notice of Unsubscribed Shares, which shall
specify the number of unsubscribed Shares remaining after application of Section
2.4(b). A Fully Exercising Investor may, during the ten calendar day period
after receipt of the Notice of Unsubscribed Shares, elect to purchase any such
unsubscribed Shares, up to each such Fully Exercising Investor's pro rata
portion, or such other proportion of all or any part of the unsubscribed Shares
as all Fully Exercising Investors may mutually agree upon.  A Fully Exercising
Investor's pro rata portion shall be equal to (i) the proportion that the number
of shares of Common Stock issued, or issuable upon conversion of Series A, B and
C Preferred Stock or upon exercise of the Warrant and conversion of the shares
of Series C Preferred Stock purchasable thereunder, then held by such Fully
Exercising Investor bears to (ii) the total number of shares of such stock then
held by all Fully Exercising Investors who wish to purchase some of the
unsubscribed Shares.

          (d) If all Shares referred to in the Notice are not elected to be
obtained as provided in subsections 2.4(b) and 2.4(c) hereof, the Company may,
during the 60-day period following the expiration of the period provided in
subsection 2.4(c) hereof, offer the remaining unsubscribed portion of such
Shares to any person or persons at a price not less than, and upon terms no more
favorable to the offeree than those specified in the Notice. If the Company does
not enter into an agreement for the sale of the Shares within such period, or if
such agreement is not consummated within 60 days of the execution thereof, the
right provided hereunder shall be deemed to be revived and such Shares shall not
be offered unless first reoffered to the Major Investors in accordance herewith.

          (e) The right of first offer in this Section 2.4 shall not be
applicable (i) to the issuance or sale of Common Stock (or options therefor) to
employees, consultants or directors of the Company directly or pursuant to a
stock option plan, restricted stock plan or similar benefit program or agreement
approved by the Board of Directors of the Company or by the Compensation
Committee thereof, (ii) to or after a Qualifying IPO, (iii) upon the exercise of
warrants or options, or upon the conversion of convertible securities,
outstanding on the date hereof or as to which the Major Investors have been
previously offered the right to participate as contemplated by this Section 2.4,
(iv) to the issuance of securities in connection with a bona fide business
acquisition by the Company, whether by merger, consolidation, sale of assets,
sale or exchange of stock or otherwise, (v) to the issuance of stock, warrants
or other securities or rights to persons or entities with which the Company has
business relationships provided such issuances are for other than primarily
equity financing, (vi) to the issuance of capital stock (or warrants therefor)
to a lending or leasing institution in connection with a debt or lease
financing, (vii) in connection with a stock split or dividend, or a
recapitalization or reorganization of the Company, (ix) securities issued in a
transaction registered under the Act (x) to the shares of Series A, B or C
Preferred Stock purchased pursuant to the Series A Purchase Agreement, the
Series B Purchase Agreement or the Series C Purchase Agreement or to the shares
of capital stock of the Company into which such shares of Preferred Stock may be
converted or (xi) upon a Qualifying Acquisition.

                                       15
<PAGE>

          2.5  Proprietary Information Agreements.  The Company agrees to use
               ----------------------------------
its best efforts to cause each officer and employee of the Company and its
subsidiaries to enter into, and maintain in effect, a proprietary information
and inventions agreement in a form that has been approved by the Investors.

          2.6  Key Man Life Insurance.  The Company shall maintain in full force
               ----------------------
and effect term life insurance in favor of the Company on the life of each of
Ross Dove and Kirk Dove in a coverage amount not less than $2 million in each
case, unless otherwise approved by the Company's Board of Directors.

          2.7  SBA Requirements.  The Company will promptly furnish to any
               ----------------
Investor, upon request from such Investor, all forms that may be required to be
filed with the Small Business Administration ("SBA") from time to time with
respect to the transactions contemplated by this Agreement and such Investor's
ownership of the Series A or B Preferred Stock, and will provide to such
Investor and the SBA such other information and forms as such Investor may
reasonably request or the SBA may from time to time request with respect to the
transactions contemplated by this Agreement and such Investor's ownership of
such shares.  The Company has not and will not directly or indirectly use the
proceeds from the issuance and sale of the shares of Series A Preferred Stock
pursuant to the Series A Purchase Agreement or the Series B Preferred Stock
pursuant to the Series B Purchase Agreement for any purpose for which a small
business investment company is prohibited from providing funds under 13 C.F.R.
(S)107.901.

          2.8  Termination of Certain Covenants.  The covenants set forth in
               --------------------------------
Sections 2.5 through 2.7 shall terminate and be of no further force or effect
immediately prior to the first closing of a Qualifying IPO or upon a Qualifying
Acquisition.

     3.   Miscellaneous.
          -------------

          3.1  Successors and Assigns.  Except as otherwise provided herein, 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 (including
transferees of any shares of Registrable Securities). Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

          3.2  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.

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

          3.4  Notices.  All notices, requests, consents and other
               -------
communications required or permitted hereunder shall be in writing and shall be
deemed to have been given for all purposes upon (i) personal delivery, (ii) one
day after being sent, when sent by professional

                                       16
<PAGE>

overnight courier service from and to locations within the United States, (iii)
five days after posting when sent by registered or certified mail, or (iv) on
the date of transmission when sent by facsimile and when receipt has been
confirmed, addressed (A) if to the Company at the address or facsimile number,
as applicable, set forth on the signature pages hereto; or (B) if to any
Investor, at the address or facsimile number, as applicable, as shown on the
stock register maintained by the Company. Any party hereto may from time to time
by notice in writing to the other parties as provided herein, designate a
different mailing address or a different person to which such notices or demands
are thereafter to be addressed or delivered.

          3.5  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 attorneys' fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

          3.6  Amendments and Waivers.   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 the Holders of
a majority of the Registrable Securities then outstanding.  Any amendment or
waiver effected in accordance with this paragraph shall be binding on each
Holder of any Registrable Securities then outstanding, each future holder of all
such Registrable Securities, and the Company.

          3.7  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.

          3.8  Aggregation of Stock.  All shares of Registrable Securities held
               --------------------
or acquired by affiliated entities or persons, including, in each case, general
or limited partners or members of such person, shall be aggregated together for
the purpose of determining the availability of any rights under this Agreement.

          3.9  Entire Agreement.  This Agreement (including the Exhibits hereto,
               ----------------
if any) constitutes the full and entire understanding and agreement between the
parties with regard to the subjects hereof and thereof and supersedes all prior
agreements or understandings between or among any of the parties hereto with
respect to the subject matter hereof, including the Prior Agreement.

          3.10 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.

                           [Signature Pages Follow]

                                       17
<PAGE>

  In Witness Whereof, the parties have executed this Agreement as of the date
first above written.

                              DOVEBID, INC.

                              By: /s/ Jeff Crowe
                                 ----------------------------------------
                              Its: President
                              Address: 1241 East Hillsdale Blvd.
                                       Foster City, CA 94404
                                       Facsimile No.: (650) 571-5980
                                       Attention: Chief Executive Officer

INVESTORS:                    BAIN & COMPANY, INC.
----------

                              By: /s/
                                 ----------------------------------------
                              Its: Vice President

                              COMDISCO, INC.

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

                              FREMONT VENTURES I, L.P.
                              a Delaware limited partnership
                              By: FV, L.P., its General Partner
                              By: Fremont Resources, Inc.
                                   its General Partner

                              By: /s/
                                 ----------------------------------------
                              Its: Vice President

                              F&W INVESTMENTS 2000

                              By: /s/
                                 ----------------------------------------
                              It's: General Partner

                                       18

<PAGE>

                    MAYFIELD X, L.P.
                    By:   Mayfield X Management, L.L.C.
                    Its:  General Partner

                    By: /s/ A. Grant Heidrich
                       ------------------------------------
                    Its:  Managing Director

                    MAYFIELD ASSOCIATES FUND V, L.P.
                    By:   Mayfield X Management, L.L.C.
                    Its:  General Partner

                    By: /s/ A. Grant Heidrich
                       ------------------------------------
                    Its:  Managing Director

                    MAYFIELD PRINCIPALS FUND, L.L.C.
                    By:   Mayfield X Management, L.L.C.
                       ------------------------------------
                    Its:  Managing Member

                    By: /s/ A. Grant Heidrich
                       ------------------------------------
                    Its:  Managing Director

                    SOFTBANK CAPITAL PARTNERS LP
                    a Delaware limited partnership
                    By: SOFTBANK Capital Partners LLC
                    its General Partner

                    By: /s/
                       ------------------------------------
                    Its: Admin. Member

                    SOFTBANK CAPITAL ADVISORS FUND LP
                    a Delaware limited partnership
                    By: SOFTBANK Capital Partners LLC
                    its General Partner

                    By: /s/
                       ------------------------------------
                    Its: Admin. Member

                    SUN MICROSYSTEMS, INC.

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

                                       19
<PAGE>

                    TPG PARTNERS III, L.P.
                    By: TPG GenPar III, L.P.
                    By: TPG Advisors III, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                    TPG PARALLEL III, L.P.
                    By: TPG GenPar III, L.P.
                    By: TPG Advisors III, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                    TPG INVESTORS III, L.P.
                    By: TPG GenPar III, L.P.
                    By: TPG Advisors III, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                    T/3/ PARTNERS, L.P.

                    By: T/3/ GenPar, L.P.
                    By: T/3/ Advisors, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                    T/3/ PARALLEL, L.P.
                    By: T/3/ GenPar, L.P.
                    By: T/3/ Advisors, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                                       20
<PAGE>

                    T/3/ INVESTORS, L.P.
                    By: T/3/ GenPar, L.P.
                    By: T/3/ Advisors, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                    FOF PARTNERS III, L.P.
                    By: TPG GenPar III, L.P.
                    By: TPG Advisors III, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                    FOF PARTNERS III-B, L.P.
                    By: TPG GenPar III, L.P.
                    By: TPG Advisors III, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                    TPG DUTCH PARALLEL III, C.V.
                    By: TPG GenPar III, L.P.
                    By: TPG Advisors III, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                    T/3/ DUTCH PARALLEL, C.V.
                    By: T/3/ GenPar, L.P.
                    By: T/3/ Advisors, Inc.

                    By: /s/ Richard Ekleberry
                       ------------------------------------
                    Title: Vice President
                          ---------------------------------

                                       21
<PAGE>

                    T.H. eVENTURE PTE LTD

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

                    YAHOO! INC.

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

                    DATA STREAM SYSTEMS, INC.

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

                                       22
<PAGE>

                                  SCHEDULE A
                                  ----------

                                   INVESTORS

                              Bain & Company, Inc.

                              Comdisco, Inc.

                              Data Stream Systems, Inc.

                              Fremont Ventures I, L.P.

                              F&W Investments 2000

                              Mayfield Associates Fund V, L.P.

                              Mayfield X, L.P.

                              Mayfield Principals Fund, L.L.C.

                              SOFTBANK Capital Partners LP

                              SOFTBANK Capital Advisors Fund LP

                              Sun Microsystems, Inc.

                              TPG Partners III, L.P.

                              TPG Parallel III, L.P.

                              TPG Investors III, L.P.

                              T/3/ Partners, L.P.

                              T/3/ Parallel, L.P.

                              T/3/ Investors, L.P.

                              FOF Partners III, L.P.

                              FOF Partners III-B, L.P.

                              TPG Dutch Parallel III, C.V.

                              T/3/ Dutch Parallel, C.V.

                              T.H. eVenture PTE LTD

                              Yahoo! Inc.

                                       23<PAGE>

                                                                   Exhibit 10.16

                  SERIES C PREFERRED STOCK PURCHASE AGREEMENT

     This Series C Preferred Stock Purchase Agreement (this "Agreement") is made
as of February 25, 2000, by and among DoveBid, Inc., a Delaware corporation (the
"Company"), and the investors listed on Schedule 1.1 hereto, each of which is
referred to herein as an "Investor" and collectively, the "Investors."

                                  BACKGROUND

     A.   The Company intends to authorize for issuance up to 43,000,000 shares
of Series C Preferred Stock (the "Series C Preferred Stock") having the rights,
preferences, privileges and restrictions set forth in the Company's Restated
Certificate of Incorporation, a copy of which is attached hereto as Exhibit A
                                                                    ---------
(the "Certificate of Incorporation").

     B.   The Company desires to issue and sell, and the Purchasers desire to
purchase, the shares of Series C Preferred Stock pursuant to the terms and
conditions set forth herein.

     NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS.

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

          1.1   Agreement to Purchase and Sell. Upon the terms and conditions of
                ------------------------------
this Agreement and subsequent to the filing of the Certificate of Incorporation
with the Delaware Secretary of State's Office, each Investor agrees, severally,
to purchase at the Closing, and the Company agrees to sell and issue to each
such Investor at the Closing, at a purchase price of $2.67 per share, that
number of shares of the Series C Preferred Stock set forth opposite each such
Investor's name on Schedule 1.1 hereto for the purchase price set forth therein
                   ------------
(the "Shares").  The purchase price shall be payable in cash, by check, by wire
transfer or cancellation of indebtedness of the Company to the Investor or by
any combination of the foregoing.  Notwithstanding the foregoing, Comdisco,
Inc., a Delaware corporation ("Comdisco"), Sun Microsystems, Inc., a Delaware
corporation ("Sun"), Data Stream Systems, Inc. ("Data Stream") and Yahoo! Inc.,
a Delaware corporation ("Yahoo"), or affiliates of either, are expected to enter
into this Agreement at any time prior to the end of the 30-day Additional
Closing period described in Section 1.3 below and are expected to participate in
the Closing or an Additional Closing (as defined below).  In such event:

          (a)   The purchase price paid by Comdisco may consist of assets
     acceptable to the Company, having a fair market value for resale agreed to
     by the Company and Comdisco that is equal to the purchase price to be paid
     for the Shares to be purchased by such entity and to the amount specified
     for Comdisco on Schedule 1.1; and

          (b)   As a part if its business transaction with the Company, Yahoo
     shall purchase the Shares specified on Schedule 1.1 and a warrant for the
     purchase of 1,405,000 Shares at an exercise price of $2.67 per share (the
     "Warrant"), the form of which shall be reasonably acceptable to the
     Company.
<PAGE>

          1.2   Closing; Delivery of Closing Documents.  The closing of the
                --------------------------------------
purchase and sale of the Shares shall be held at 10:00 a.m. on Thursday,
February 24, 2000 at the offices of Fenwick & West LLP, legal counsel to the
Company ("Fenwick & West"), Two Palo Alto Square, Palo Alto, California 94306,
or at such other time and date as the Company and Investors who are to purchase
a majority of the Shares at the Closing may agree (the "Closing").  At the
Closing, the Company shall deliver to each Investor the documents and
instruments otherwise required to be delivered by the Company at the Closing and
a certificate representing the Shares that such Investor has purchased at the
Closing (as set forth on Schedule 1.1) against delivery to the Company by such
Investor of checks or wire transfers in the amount of the aggregate Purchase
Price therefor paid by such Investor as set forth on Schedule 1.1 or a bill of
sale covering any assets permitted to be transferred as payment of the purchase
price (the "Purchase Price") and the documents and instruments otherwise
contemplated by this Agreement to be delivered at the Closing.

          1.3   Additional Closings.
                -------------------

                (a)   Conditions of Additional Closing(s). Subject to Section
                      -----------------------------------
1.4(b) below, at any time and from time to time during the 30-day period
immediately following the Closing (the "Additional Closing Period"), the Company
may, at one or more additional closings (each an "Additional Closing"), without
obtaining the signature, consent or permission of any of the Investors, offer
and sell additional shares of Series C Preferred Stock to other investors (the
"New Investors") in an amount equal to the number of such shares authorized in
the Certificate of Incorporation minus the Shares and the Shares subject to the
Warrant, if any, purchased at the Closing, under the terms and conditions set
forth in this Agreement. New Investors may include persons or entities who are
already Investors under this Agreement and may include any or all of Comdisco,
Sun, Data Stream or Yahoo.

                (b)   Amendments. The Company and the New Investors purchasing
                      ----------
Shares at each Additional Closing will execute counterpart signature pages to
this Agreement, the Second Amended and Restated Investors Rights Agreement dated
as of even date herewith (the "Investors' Rights Agreement") and the Second
Amended and Restated Stockholders' Agreement dated as of even date herewith (the
"Stockholders' Agreement," referred to with the Investors' Rights Agreement as
the "Ancillary Agreements"), and such New Investors will, upon delivery to the
Company of such signature pages, become parties to, and bound by, this Agreement
and the Ancillary Agreements to the same extent as if they had been Investors at
the Closing. Immediately after each Additional Closing, the Schedule of
Investors attached to this Agreement as Schedule 1.1 will be amended to list the
                                        ------------
New Investors purchasing Shares hereunder at each such Additional Closing. The
Company will promptly furnish to each Investor upon request a copy of the
amendments to Schedule 1.1 referred to in the preceding sentence.
              ------------

                (c)   Status of New Investors. Upon the completion of each
                      -----------------------
Additional Closing as provided in this Section 1, each New Investor will be
deemed to be an "Investor" for all purposes of this Agreement, and the Ancillary
Agreements described in the introductory paragraph of Section 2 below, and the
shares of Series C Preferred Stock purchased by such New Investors will be
considered "Shares" hereunder.

                                       2
<PAGE>

     2.   Representations and Warranties of the Company.  Except as set forth in
          ---------------------------------------------
the Certificate of Incorporation, the Ancillary Agreements and the disclosure
letter provided by the Company to the Investors on the date prior to the date
hereof, as such disclosure letter may be updated as of the Closing and each
Additional Closing, which update shall not disclose any material adverse change
from the disclosure letter provided on the date hereof (the "Disclosure
Schedule"), the Company hereby represents and warrants to each Investor as
follows, which representations and warranties shall be true and complete as of
the date hereof and as of the Closing or Additional Closing, as the case may be.

          2.1   Organization, Good Standing and Qualification.  The Company is a
                ---------------------------------------------
corporation duly organized, validly existing and in good standing under the laws
of Delaware and has all requisite corporate power and authority to carry on its
business as now conducted and as proposed to be conducted.  The Company has only
one direct subsidiary, DoveBid Valuation Services, Inc., a California
corporation (the "Subsidiary").   The Subsidiary is 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 conduct its business as now
conducted and as proposed to be conducted.  The Company has delivered to each
Investor complete and correct copies of the organizational documents of each of
the Company and the Subsidiary.  Each of the Company and the Subsidiary is duly
qualified to transact business and is in good standing in the State of
California.

          2.2   Capitalization, Voting Rights and Valid Issuance.
                ------------------------------------------------

                (a)   The authorized capital stock of the Company consists of
150,000,000 shares of Common Stock and 77,000,000 shares of Preferred Stock, of
which 13,000,000 shares have been designated Series A Preferred Stock,
18,000,000 shares have been designated Series B Preferred Stock and 43,000,000
shares have been designated Series C Preferred Stock, each of which has a par
value of $0.001.

                (b)   All of the outstanding shares of the Company are owned of
record as of the date hereof as set forth in Section 2.2 of the Disclosure
Schedule and Appendix A thereto. The outstanding shares of the Company's capital
stock are all duly and validly authorized and issued, fully paid and non-
assessable and were issued in accordance with the registration or qualification
provisions of the Securities Act of 1933, as amended (the "Securities Act"), and
any relevant state securities laws, or pursuant to valid exemptions therefrom.

                (c)   The Disclosure Schedule sets forth all options, warrants,
rights (including conversion or preemptive rights) or agreements that are
outstanding as of the date hereof for the purchase or acquisition from the
Company of any shares of the capital stock of the Company. The Company is not a
party or subject to any agreement or understanding, and, to the Company's
knowledge, there is no agreement or understanding between any persons and/or
entities, which affects or relates to the voting or giving of written consents
with respect to any security or by a director of the Company.

                (d)   The Series C Preferred Stock that is being purchased by
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 non-assessable and,

                                       3
<PAGE>

based in part upon the representations of the Investors in this Agreement, will
be issued in compliance with the registration and qualification requirements of
the Securities Act and all applicable state securities laws and will be free of
restrictions on transfer other than restrictions on transfer under this
Agreement, the Certificate of Incorporation, the Ancillary Agreements and
applicable securities laws. The Common Stock issuable upon conversion of the
Series C Preferred Stock purchased under this Agreement has been duly and
validly reserved for issuance and, upon issuance to the Investors in accordance
with the terms of the Certificate of Incorporation, will be duly and validly
issued, fully paid and non-assessable, issued in compliance with the
registration and qualification requirements of the Securities Act and all
applicable state securities laws and will be free of restrictions on transfer
other than restrictions on transfer under this Agreement, the Certificate of
Incorporation, the Ancillary Agreements and applicable securities laws, as
presently in effect, of the United States and each of the states whose
securities laws govern the issuance of any of the Series C Preferred Stock
hereunder.

          2.3   Subsidiaries.  As of the date hereof, the Subsidiary is the only
                ------------
entity of which the Company owns and controls more than 50% of the voting power.
Section 2.3 of the Disclosure Schedule is a complete and correct list setting
forth for the Subsidiary (a) the number of authorized equity securities, and (b)
the number of issued and outstanding equity securities, the names of the holders
thereof, and the number of equity securities held by each such holder as of the
date hereof.  All of the issued and outstanding equity securities of the
Subsidiary have been duly authorized and are validly issued, fully paid and non-
assessable.  There are no preemptive or similar rights on the part of any holder
of any class of equity securities of the Subsidiary, or options, warrants,
conversion or other rights, agreements, commitments of any kind obligating the
Subsidiary, contingently or otherwise, to issue, sell or otherwise cause to
become outstanding any of its equity securities or any other securities
convertible into or exchangeable for any such equity securities.  There are no
voting trusts, proxies, or other agreements or understandings with respect to
the voting, dividend rights or disposition of any equity security of the
Subsidiary.  Neither the Company nor the Subsidiary controls, directly or
indirectly, or has any direct or indirect equity participation in any
corporation, partnership, trust or other entity (other than the ownership of the
Subsidiary).

          2.4   Authorization. All corporate action on the part of the Company's
                -------------
directors and stockholders necessary for the authorization, execution and
delivery of this Agreement and the Ancillary Agreements, the performance of all
obligations of the Company hereunder and thereunder to be performed as of the
Closing or Additional Closing, as the case may be, the authorization, issuance
(or reservation for issuance), sale and delivery of the Series C Preferred Stock
being sold hereunder and the Common Stock issuable upon conversion of the Series
C Preferred Stock has been taken or will be taken prior to the Closing, and this
Agreement and the Ancillary Agreements, when executed and delivered at the
Closing, constitute valid and legally binding obligations of the Company,
enforceable against the Company in accordance with their respective terms,
except (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of
creditors' rights generally, (b) as limited by laws relating to the availability
of specific performance, injunctive relief, or other equitable remedies, and (b)
to the extent the indemnification provisions contained in the Investors' Rights
Agreement may be limited by applicable securities laws.

                                       4
<PAGE>

          2.5   Governmental Consents.  No consent, approval, order or
                ---------------------
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state, local or provincial governmental authority on
the part of the Company or Subsidiary is required in connection with the
consummation of the transactions described in this Agreement, except those as
shall have been obtained or made prior to the Closing.

          2.6   Customer Relations.  Since December 31, 1997, no significant
                ------------------
customer of the Company or Subsidiary that has been a party to a master national
auction contract with the Company has terminated its relationship with the
Company or Subsidiary or threatened to do so. Section 2.6 of the Disclosure
Schedule sets forth a complete and correct list of each such termination and the
reasons for such termination.

          2.7   Litigation. There is no action, suit, claim, dispute, proceeding
                ----------
or investigation pending or, to the knowledge of the Company, currently
threatened or involving an amount in excess of $100,000 (whether or not in
writing) against the Company or Subsidiary which questions the validity of this
Agreement or the right of the Company to enter into this Agreement, or to
consummate the transactions contemplated hereby or thereby, or which could
reasonably be expected to result, either individually or in the aggregate, in
any material adverse changes in the assets, condition or business of the Company
and the Subsidiary taken as a whole, financially or otherwise (a "Material
Adverse Effect"), or any change in the current equity ownership of the Company
or Subsidiary. The foregoing includes, without limitation, actions pending or
threatened or involving an amount in excess of $100,000 (whether or not in
writing) involving the prior employment of any of the Company's or Subsidiary's
employees, their use in connection with the Company's or Subsidiary's business
of any information or techniques allegedly proprietary to any of their former
employers, or their obligations under any agreements with prior employers. There
is no action, suit, claim, dispute, proceeding or investigation pending or, to
the knowledge of the Company, currently threatened against the Company by any
stockholder of the Company, against any stockholder of the Company by the
Company or, to the Company's knowledge, between any of the stockholders of the
Company relating to the Company. There is no action, suit, claim, dispute,
proceeding or investigation pending or, to the knowledge of the Company,
currently threatened against the Subsidiary by any equity holder of the
Subsidiary, against any equity holder of the Subsidiary by the Subsidiary or to
the Company or the Subsidiary's knowledge, between any of the equity holders of
the Subsidiary relating to the Subsidiary. Neither the Company nor the
Subsidiary is a party to or, to the Company's knowledge, 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 or the Subsidiary currently pending or which the
Company or Subsidiary intends to initiate.

          2.8   Patents and Trademarks.  The Company and the Subsidiary has
                ----------------------
sufficient title and ownership of, or rights to use, all patents, trademarks,
service marks, trade names, copyrights, trade secrets and proprietary rights and
processes (collectively, "Intellectual Property Rights") necessary for its
business as now conducted and as proposed to be conducted, without, to the
knowledge of Company and the Subsidiary, any conflict with or infringement of
the rights of others.  The Company and the Subsidiary own or have currently
effective licenses to use all Intellectual Property Rights the absence of which
could materially impair the Company's or Subsidiary's ability to carry out its
business as now conducted and as proposed to be conducted.

                                       5
<PAGE>

Section 2.8 of the Disclosure Schedule is a correct and complete list of all of
the patents, trademarks, service marks, trade names and copyrights of the
Company and the Subsidiary and all royalties payable by the Company or
Subsidiary in connection with its current or currently planned products,
processes and technologies identifying the payee, the royalty rate and the
product, process or technology to which the royalty relates. There are no
pending or threatened claims or disputes regarding royalties payable by the
Company or Subsidiary under currently existing licenses or otherwise. There are
no outstanding options, licenses or agreements of any kind relating to the
foregoing, nor is the Company or Subsidiary bound by or a party to any options,
licenses or agreements of any kind with respect to the patents, trademarks,
service marks, trade names, copyrights, trade secrets, licenses, information,
proprietary rights and processes of any other person or entity. The execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby, do not breach, violate or conflict with any
instrument or agreement governing any Intellectual Property Right of the Company
or Subsidiary, do not cause any forfeiture or termination or give rise to a
right of forfeiture or termination of any Intellectual Property Right of the
Company or Subsidiary or in any way impair the right of the Company or
Subsidiary to use, sell, license or dispose of or bring any action for the
infringement of, any Intellectual Property Right of the Company or Subsidiary or
portion thereof. There are no pending claims nor any claims threatened in
writing or otherwise known to management of the Company or Subsidiary, or
litigation contesting the validity, ownership or right to use, sell, license or
dispose of any of the Company's or Subsidiary's Intellectual Property Rights,
nor is the Company or Subsidiary aware of any reasonable basis for any such
claim, nor has the Company or Subsidiary received any communications alleging
that the Company or Subsidiary have violated or, by conducting its business as
proposed, would violate any of the patents, trademarks, service marks, trade
names, copyrights or trade secrets or other proprietary rights of any other
person or entity. Neither the Company nor the Subsidiary is aware that any of
its employees or consultants is obligated under any contract (including
licenses, covenants or commitments of any nature) or other agreement, or subject
to any judgment, decree or order of any court or administrative agency, that
would interfere with the use of his or her best efforts to promote the interests
of the Company or Subsidiary or that would conflict with the Company's or
Subsidiary's business as conducted. Neither the execution nor delivery of this
Agreement nor the carrying on of the Company's or Subsidiary's business by the
employees or consultants of the Company or Subsidiary, nor the conduct of the
Company's or Subsidiary's business as proposed, to the knowledge of the Company,
conflict with or result in a breach of the terms, conditions or provisions of,
or constitute a default under, any contract, covenant or instrument under which
any of such employees or consultants is now obligated. Neither the Company nor
Subsidiary believes it is or will be necessary to utilize any inventions of any
of its employees (or people it currently intends to hire) made prior to their
employment by the Company or Subsidiary.

          2.9   Compliance with Other Instruments.  The Company is not in
                ---------------------------------
violation or default of any provisions of its Certificate of Incorporation or
Bylaws or of any judgment, order, writ or decree to which it is a party or, to
its knowledge, by which it is bound.  The Company is not in violation or default
of any instrument or contract to which it is a party, of any provision of any
federal or state statute, rule or regulation applicable to the Company, except
for violations or defaults of any contract, statute, rule or regulation that,
individually or in the aggregate, would not have a Material Adverse Effect.  The
Subsidiary is not in violation or default of any provisions of its
organizational documents or of any judgment, order, writ or decree to which it
is a

                                       6
<PAGE>

party or, to its knowledge, by which it is bound.  The Subsidiary is not in
violation or default of any instrument or, contract to which it is a party or of
any provision of any federal or state statute, rule or regulation applicable to
Subsidiary, except for violations or defaults of any contract, statute, rule or
regulation that, individually or in the aggregate, would not have a Material
Adverse Effect.  The execution, delivery and performance of this Agreement, and
the consummation of the transactions contemplated hereby do not result in any
such violation and are not 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 or contract or an event which results
in the creation of any lien, charge or encumbrance upon any assets of the
Company or Subsidiary or the suspension, revocation, impairment, forfeiture, or
non-renewal of any material permit, license, authorization, or approval
applicable to the Company or Subsidiary, their respective businesses or
operations or any of their respective assets or properties.

          2.10  Agreements: Action.
                ------------------

                (a)   Except for agreements explicitly contemplated hereby,
there are no agreements, understandings or proposed transactions between the
Company and any of its stockholders, directors, officers, affiliates, or any
affiliate thereof, or between the Subsidiary and any of its members,
stockholders, directors, officers, affiliates, or any affiliate thereof.

                (b)   There are no agreements, understandings, instruments,
contracts, proposed transactions, judgments, orders, writs or decrees to which
the Company or Subsidiary is a party or by which either of them is bound which
may involve (i) obligations (contingent or otherwise) of the Company or
Subsidiary in excess of $100,000 (excluding net auction proceeds payable by the
Company to customers and maintained in the Company's trust account or auction or
other sale proceeds payable pursuant to the contracts set forth in Section
2.3(d) of the Disclosure Schedule), or payments to the Company or Subsidiary in
excess of $100,000 (excluding gross auction revenues payable to the Company in
connection with concluded auction sales), or (ii) the license of any patent,
copyright, trade secret or other proprietary right to or from the Company or
Subsidiary or (iii) provisions restricting or affecting the development,
manufacture or distribution of the Company's or Subsidiary's products or
services, or (iv) indemnification by the Company or Subsidiary with respect to
infringement of proprietary rights.

                (c)   The Company has not, except as expressly contemplated by
this Agreement or disclosed in the financial statements delivered to the
Investors or set forth in Section 2.10 of the Disclosure Schedule, (i) since
December 31, 1999, authorized or made any distribution upon or with respect to
any class of shares, (ii) incurred any outstanding indebtedness for money
borrowed or any other outstanding fixed, non-contingent liabilities, other than
in the ordinary course of business, individually in excess of $100,000 or, in
the case of such indebtedness and/or such liabilities individually less than
$100,000, in excess of $200,000 in the aggregate, (iii) made any outstanding
loans or advances to any person, other than ordinary advances for business-
related expenses, or (iv) since December 31, 1999, sold, exchanged or otherwise
disposed of any of its assets or rights, other than in the ordinary course of
business.

                (d)   The Subsidiary has not, except as disclosed in the
financial statements delivered to the Investors or set forth in Section 2.10 of
the Disclosure Schedule, (i) since December 31, 1999, declared or paid any
dividends, or authorized or made any distribution upon

                                       7
<PAGE>

or with respect to any class or series of its equity interests, in each case
other than to the Company, (ii) incurred any outstanding indebtedness for money
borrowed or any other outstanding fixed, non-contingent liabilities individually
in excess of $100,000 or, in the case of such indebtedness and/or such
liabilities individually less than $100,000, in excess of $200,000 in the
aggregate, (iii) made any outstanding loans or advances to any person, other
than ordinary advances for business related expenses, or (iv) since December 31,
1999, sold, exchanged or otherwise disposed of any of its assets or rights,
other than in the ordinary course of business.

                (e)   For the purposes of subsections (b), (c) and (d) above,
all applicable indebtedness, liabilities, agreements, understandings,
instruments, contracts and proposed transactions involving the same person or
entity (including persons or entities the Company or Subsidiary have reason to
believe are affiliated therewith) shall be aggregated for the purpose of meeting
the individual minimum dollar amounts of such subsections.

                (f)   Neither the Company nor the Subsidiary has engaged in the
past six months in any discussion regarding the liquidation, dissolution, or
winding up of the Company or the Subsidiary.

          2.11  Related Party Transactions.  No stockholder, director, officer
                --------------------------
or employee of the Company or the Subsidiary or member of his or her immediate
family is indebted to the Company or the Subsidiary, nor is the Company or the
Subsidiary indebted (or committed to make loans or extend or guarantee credit)
to any of them.  To the Company's knowledge, none of such persons has any direct
or indirect ownership interest in any firm or corporation with which the Company
or the Subsidiary is affiliated or with which the Company or the Subsidiary has
a business relationship, or any firm or corporation that competes with the
Company or the Subsidiary, except that such persons and members of their
immediate families may own stock in publicly traded companies that may compete
with the Company or the Subsidiary.  No member of the immediate family of any
such person is directly or indirectly interested in any material contract with
the Company or the Subsidiary.

          2.12  Permits.  The Company and the Subsidiary have all franchises,
                -------
permits, licenses, and any similar authority necessary for the conduct of their
business as now being conducted by it, the lack of which could reasonably be
expected to have a Material Adverse Effect, and the Company believes it or
Subsidiary can obtain, without undue burden or expense, any similar authority
for the conduct of its business as planned to be conducted.  Neither the Company
nor Subsidiary is in default in any material respect under any of such
franchises, permits, licenses, or other similar authority.

          2.13  Environmental and Safety Laws.  To the Company's knowledge,
                -----------------------------
neither the Company nor Subsidiary is in violation of any statute, law or
regulation relating to the environment or occupational health and safety, where
such violation could reasonably be expected to have a Material Adverse Effect
and to the Company's knowledge, no material expenditures are or will be required
of the Company or Subsidiary in order to comply with any such existing statute,
law or regulation, where the violation of, or non-compliance with, such statute,
law or regulation could reasonably be expected to have a Material Adverse
Effect.

                                       8
<PAGE>

          2.14  Marketing Rights.  Neither the Company nor Subsidiary has
                ----------------
granted rights to license, market, or sell its services to any other person or
is bound by any agreement that affects the Company's or Subsidiary's exclusive
right to develop, distribute, market, license or sell its services.

          2.15  Disclosure.  The Company's business plan dated January 10, 2000,
                ----------
to its knowledge, and the written information provided by the Company and the
Subsidiary to the Investors (including any supplemental written information
provided to the Investors prior to the execution of this Agreement), to the
knowledge of the Company, and the representations and warranties of the Company
and the Subsidiary contained in this Agreement, taken as a whole, do not contain
any untrue statement of a material fact or omit to state a fact necessary in
order to make the statements contained therein not misleading as of the date
made and in light of the circumstances in which the same were made.  As of the
date hereof, there are no facts known (or which should upon the reasonable
exercise of diligence be known) to the Company (other than matters of a general
economic nature) that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect and that have not been provided to
the Investors.

          2.16  Registration Rights.  Except as set forth in the Investors'
                -------------------
Rights Agreement, the Company has not granted or agreed to grant any
registration or other rights of any nature, including piggyback rights, to any
person or entity.

          2.17  Financial Statements.  The Company has delivered to the
                --------------------
Investors unaudited, consolidated financial statements (balance sheet and profit
and loss statement, including notes thereto) for the Company at December 31,
1999 and for the period then ended (each a "Financial Statement" and
collectively the "Financial Statements").  The Financial Statements have been
prepared in accordance with generally accepted accounting principles
consistently applied, except that the Financial Statements may not contain all
footnotes required by generally accepted accounting principles.  The Financial
Statements fairly present the financial condition and operating results of the
Company on a consolidated basis as of the date, and for the period, indicated
therein.  Except as set forth in the Financial Statements, the Company has no
liabilities, contingent or otherwise, other than (a) liabilities incurred in the
ordinary course of business subsequent to December 31, 1999 and (b) obligations
under contracts and commitments incurred in the ordinary course of business and
not required under generally accepted accounting principles to be reflected in
the Financial Statements, which, in both cases, individually or in the
aggregate, are not material to the financial condition or operating results of
the Company and the Subsidiary, taken as a whole.  Except as disclosed in the
Financial Statements, neither the Company nor Subsidiary is a guarantor or
indemnitor of any indebtedness of any other person, firm or corporation.  The
Company and Subsidiary maintain and will continue to maintain a standard system
of accounting established and administered in accordance with generally accepted
accounting principles.

          2.18  Changes.  Since December 31, 1999 there has not been:
                -------

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

                                       9
<PAGE>

                (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 and the Subsidiary taken as a whole (as such business is presently
     conducted and as it is proposed to be conducted);

                (c)   any waiver by the Company or Subsidiary 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 or Subsidiary,
     except in the ordinary course of business and that is not material to the
     assets, properties, financial condition, operating results or business of
     the Company and the Subsidiary taken as a whole (as such business is
     presently conducted and as it is proposed to be conducted);

                (e)   any material change or amendment to a material contract or
     material arrangement by which either Subsidiary or any of its respective
     assets or properties is bound or subject other than in connection with the
     transactions expressly contemplated hereby;

                (f)   any sale, assignment or transfer of any patents,
     trademarks, copyrights, trade secrets or other intangible assets of the
     Company or Subsidiary;

                (g)   any resignation or termination of employment of any key
     officer of the Company or Subsidiary; and the Company does not know of the
     impending resignation or termination of employment of any such officer;

                (h)   any mortgage, pledge, transfer of a security interest in,
     or lien, created by the Company or Subsidiary, with respect to any of its
     material properties or assets, except liens for taxes not yet due or
     payable;

                (i)   any declaration, setting aside or payment or other
     distribution in respect of any of the Company's capital stock or
     Subsidiary's equity interests (other than to the Company), or any direct or
     indirect redemption, purchase or other acquisition of any of such equity
     interest by the Company or Subsidiary;

                (j)   to the Company's knowledge, any other event or condition
     of any character that could reasonably be expected to have a Material
     Adverse Effect; or

                (k)   any agreement or commitment by the Company or Subsidiary
     to do any of the things described in this Section 2.18, except in
     connection with the transactions expressly contemplated hereby.

          2.19  Organizational Documents.  Except for amendments necessary to
                ------------------------
satisfy representations and warranties or conditions contained herein (the form
of which amendments has been approved by the Investors), the organizational
documents of the Company and Subsidiary are in the form previously provided to
the Investors.

                                       10
<PAGE>

          2.20  Title to Property and Assets.  The Company and Subsidiary has
                ----------------------------
good and marketable title to their properties and assets and have good title to
all of their leasehold interests. The Company and Subsidiary own their property
and assets free and clear of all mortgages, liens, loans and encumbrances of any
kind, except for (a) any liens arising by operation of law, and (b) any
encumbrances and liens which arise in the ordinary course of business and do not
materially impair the Company's or Subsidiary's ownership or use of such
property or assets including, without limitation, any liens granted to third
parties on assets acquired by the Company or the Subsidiary (a) for resale in
the ordinary course of business or (b) pursuant to a lease or purchase money
financing for use in the ordinary course of business, provided that in each case
such liens do not relate to any assets of the Company or Subsidiary other than
the assets so acquired.  With respect to the property and assets it leases, the
Company and Subsidiary are in compliance with such leases in all material
respects and, to the Company's knowledge, hold a valid leasehold interest free
of any liens, claims or encumbrances.

          2.21  Employee Benefit Plans.  Neither the Company nor Subsidiary has
                ----------------------
any Employee Benefit Plan as defined in the Employee Retirement Income Security
Act of 1974.

          2.22  Tax Matters.
                -----------

                (a)   The Company and Subsidiary have filed all tax returns as
required by law. All such tax returns are correct and complete in all material
respects. The Company and Subsidiary have paid all taxes and other assessments
due (whether or not shown on any tax return). The provisions for taxes of the
Company and Subsidiary as shown in the Financial Statements are adequate for
taxes due or accrued as of the date thereof. Neither the Company nor Subsidiary
currently is the beneficiary of any extension of time within which to file any
tax return. No claim has ever been made by an authority in a jurisdiction where
either the Company or Subsidiary does not file tax returns that the Company or
Subsidiary is or may be subject to taxation by that jurisdiction. There are no
security interests on any of the assets of the Company or Subsidiary that arose
in connection with any failure (or alleged failure) to pay any tax.

                (b)   The Company and Subsidiary have withheld and paid all
taxes required to have been withheld and paid in connection with amounts paid or
owing to any employee, independent contractor, creditor, stockholder, or other
third party.

                (c)   No director or officer (or employee responsible for tax
matters) of the Company or Subsidiary expects any authority to assess any
additional taxes for any period for which tax returns have been filed. There is
no dispute or claim concerning any taxes of any of the Company and Subsidiary
either (i) claimed or raised by any authority in writing or (ii) as to which any
of the directors and officers (and employees responsible for tax matters) of the
Company or Subsidiary have knowledge based upon personal contact with any agent
of such authority. The Company has delivered or made available to the Investors
correct and complete copies of all federal income tax returns, examination
reports, and statements of deficiencies assessed against or agreed to by either
the Company or Subsidiary since December 31, 1994.

                (d)   Neither the Company nor Subsidiary has waived any statute
of limitations in respect of taxes or agreed to any extension of time with
respect to a tax assessment or deficiency. Neither the Company nor Subsidiary
has elected to be treated as a Subchapter S

                                       11
<PAGE>

corporation or a collapsible corporation pursuant to Section 1362(a) or Section
341(f) of the Internal Revenue Code of 1986, as amended (the "Code"), nor has it
made any other elections pursuant to the Code (other than elections which relate
solely to methods of accounting, depreciation, or amortization) which would have
a material effect on the Company, Subsidiary, their respective financial
condition, their respective business as presently conducted or proposed to be
conducted or any of their respective properties or material assets. Subsidiary
has not made any payments, is not obligated to make any payments, and is not a
party to any agreement that under certain circumstances could obligate it to
make any payments that will not be deductible under Code (S)280G. Neither the
Company nor Subsidiary is party to any tax allocation or sharing agreement.
Subsidiary has not been a member of an affiliated group (within the meaning of
Section 1504 of the Code) filing a consolidated federal income tax return, and
neither the Company nor Subsidiary has any liability for the taxes of any person
(other than the Company or Subsidiary) under Treasury Regulation (S)1.1502-6 (or
any similar provision of state, local, or foreign law), as a transferee or
successor, by contract, or otherwise.

          2.23  Insurance.  The Company and Subsidiary have in full force and
                ---------
effect public liability insurance and fire and standard casualty insurance
policies (excluding earthquake and flood insurance), with extended coverage,
sufficient in amount (subject to reasonable deductibles) to allow it to replace
any of its properties that might be damaged or destroyed by fire or any covered
casualty.

          2.24  Books and Records.  The books and records of the Company and
                -----------------
Subsidiary provided to Investors reflect all transactions referred to in such
books and records accurately in all material respects, and reflect all
transactions in the equity securities of the Company since their dates of
organization.

          2.25  Labor Agreements and Actions.  Neither the Company nor
                ----------------------------
Subsidiary is 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 or Subsidiary.  There is no
strike or other labor dispute involving the Company or Subsidiary pending, or to
the knowledge of the Company threatened, which could reasonably be expected to
have a Material Adverse Effect, nor is the Company aware of any labor
organization activity involving the employees of the Company or Subsidiary.  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 or Subsidiary,
nor does the Company or Subsidiary have a present intention to terminate the
employment of any of the foregoing.  Subject to general principles related to
wrongful termination of employees, the employment of each officer and employee
of the Company and Subsidiary is terminable at the will of the Company or
Subsidiary.

          2.26  Assumptions or Guaranties of Indebtedness of Other Persons.
                ----------------------------------------------------------
Neither the Company nor Subsidiary is directly or contingently liable on
(including, without limitation liability by way of agreement, contingent or
otherwise, to purchase, to provide funds for payment, to supply funds to or
otherwise invest in any person or otherwise to assure any creditor against loss)
any indebtedness of any other person.

                                       12
<PAGE>

          2.27  Stockholder Agreements.  Except for the Ancillary Agreements,
                ----------------------
there are no agreements or arrangements between the Company and any of the
Company's stockholders, or to the Company's knowledge, between or among any of
the Company's stockholders, which grant voting or other rights with respect to
any Company shares or which affect any stockholder's ability or right freely to
alienate or vote such interests.  There are no agreements or arrangements
between Subsidiary and any of its shareholders, or to the Company's knowledge,
between or among any of the shareholders of Subsidiary, that grant voting or
other rights with respect to any equity interests of the Subsidiary or that
affect any shareholder's ability or right freely to alienate or vote such equity
interests.

          2.28  Year 2000 Readiness.  To the Company's knowledge and belief, all
                -------------------
of its accounting software is, and has been represented by its vendor(s) to be,
Year 2000 compliant.  The Company does not believe that it has any hardware or
software or electronically controlled system whose failure to be Year 2000
compliant would have a Material Adverse Effect.  The Company has not undertaken
any testing or independent verification of the status of any of the third party
systems with which it interfaces or upon which it is otherwise dependent.  The
Company will make appropriate inquiries of all such third parties to the extent
the failure of such third parties' systems to be Year 2000 compliant could
reasonably be expected to have a Material Adverse Effect, and the Company will
develop appropriate contingency plans to address such potential failures, which
the parties acknowledge could occur notwithstanding the assurances such third
parties may provide.  The term "Year 2000 compliant," as used herein in
reference to any hardware, software, or other system, shall mean that such
hardware, software, or system will (a) correctly handle and process date
information before, during and after January 1, 2000, accepting date input, and
performing calculations, including but not limited to sorting and sequencing, on
dates and portions of dates, (b) function according to the documentation during
and after January 1, 2000, without changes in operation resulting from the
advent of the new century, (c) where appropriate, respond to two digit date
input in a way that resolves any ambiguity as to the century in a disclosed,
defined and predetermined manner, (d) store and provide output of date
information in ways that are unambiguous as to the century and (e) properly
manage the leap year occurring in the year 2000.

          2.29  Market Stand-Off Agreements.  The Company has obtained
                ---------------------------
agreements from each of its stockholders whereby such stockholder has agreed
that, during the period of duration (not to exceed 180 days) specified by the
Company and an underwriter of common stock or other securities of the Company,
following the effective date of a registration statement of the Company filed
under the Securities Act, such stockholder will not, to the extent requested by
the Company and the underwriter, directly or indirectly sell, offer to sell,
contract to sell (including, without limitation, any short sale), grant any
option to purchase or otherwise transfer or dispose of (other than to donees who
agree to be similarly bound) any securities of the Company held by such
stockholder at any time during such period except common stock, if any, included
in such registration statement.

     3.   Representations and Warranties of the Investors.  Each Investor hereby
          -----------------------------------------------
severally represents and warrants to the Company as follows, which
representation and warranties will be true and complete as of the date hereof
and as of the date of the Closing or Additional Closing in which such Investor
participates.

                                       13
<PAGE>

          3.1   Binding Effect. This Agreement constitutes its valid and legally
                --------------
binding obligation, enforceable in accordance with its terms except (a) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and
other laws of general application affecting enforcement of creditors' rights
generally, (b) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, and (c) to the
extent the indemnification provisions contained in the Investors' Rights
Agreement may be limited by applicable federal or state securities laws.

          3.2   Purchase Entirely for Own Account.  This Agreement is made with
                ---------------------------------
each Investor in reliance upon such Investor's representation to the Company,
which such Investor hereby confirms, that the Series C Preferred Stock to be
received by such Investor, the Common Stock issuable upon conversion thereof,
and, for Yahoo, the Warrant, the Shares purchasable upon exercise of the Warrant
and the Common Stock issuable upon conversion thereof (collectively, the
"Securities") will be acquired for investment for such 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 such Investor has no present intention of selling,
granting any participation in, or otherwise distributing the same.  Each
Investor further represents that such Investor does not 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
Securities.  Each Investor represents that it has full power and authority to
enter into this Agreement.

          3.3   Disclosure of Information.  It believes it has received all the
                -------------------------
information it considers necessary or appropriate for deciding whether to
purchase the Securities.  Each 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 Securities.  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 Investors to rely thereon.  At
no time was Investor presented with an advertisement nor did Investor receive
any written solicitation distributed generally to the public to acquire the
Securities hereunder.

          3.4   Investment Experience.  Each Investor is an investor in
                ---------------------
securities of companies in the development stage and acknowledges that it can
bear the economic risk of its investment and has such knowledge and experience
in financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Securities.  If other than an individual,
Investor also represents it has not been organized for the purpose of acquiring
the Securities.

          3.5   Accredited Investor.  Each Investor is an "accredited investor"
                -------------------
within the meaning of Securities and Exchange Commission (the "Commission") Rule
501 of Regulation D, as presently in effect.

          3.6   Restricted Securities.  It understands that the Securities it is
                ---------------------
purchasing 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 securities may be resold without registration under
the Securities Act only in certain limited circumstances.  In this connection,
each Investor represents

                                       14
<PAGE>

that it is familiar with Rule 144, as presently in effect, and understands the
resale limitations imposed thereby and by the Securities Act.

          3.7   Further Limitations on Disposition.  Without in any way limiting
                ----------------------------------
the representations set forth above, each Investor further agrees not to make
any disposition of all or any portion of the Securities unless and until such
portion of the Securities is freely transferable pursuant to Rule 144, or the
transferee has agreed in writing for the benefit of the Company to be bound by
this Section 3.7, provided and to the extent such Section is then applicable,
and by the Investors' Rights Agreement and:

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

                (b)   Such 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 if
     reasonably requested by the Company, such Investor shall have furnished the
     Company with an opinion of counsel, reasonably satisfactory to the Company,
     that such disposition will not require registration of such shares under
     the Securities Ac t.

Notwithstanding the provisions of paragraphs (a) and (b) above, no such
registration statement or opinion of counsel shall be necessary for a transfer
by an Investor that is a corporation, without payment of additional
consideration, to the corporation's wholly-owned subsidiary or that is a
partnership or limited liability company, without payment of additional
consideration, to a partner or member thereof or a retired partner or member
thereof who retires after the date hereof, or to the estate of any such partner
or member or retired partner or member or the transfer by gift, will or in
testate succession of any partner or member to his spouse or to the siblings,
lineal descendants or ancestors of such partner or member or his spouse, if the
                                                                         --
transferee agrees in writing to be subject to the terms hereof to the same
extent as if the transferee were an original Investor hereunder.

          3.8   Legends.  It is understood that the certificates or other
                -------
documents evidencing the Securities may bear one or all of the following
legends.

                (a)   "These securities have not been registered under the
     Securities Act of 1933.  They may not be sold, offered for sale, pledged or
     hypothecated in the absence of a registration statement in effect with
     respect to the securities under such Act or an opinion of counsel
     satisfactory to the Company that such registration is not required or
     unless sold pursuant to Rule 144 of such Act."

                (b)   Any legend required by the laws of the State of California
     or any other applicable state.

          3.9   Risks.  Each Investor acknowledges that (a) this investment
                -----
involves substantial risks; (b) any and all projections for the Company are
based upon good faith estimates and assumptions believed by the Company to be
reasonable at the time made, it being recognized

                                       15
<PAGE>

by the Investors that such projections as to future events are not to be viewed
as facts and that actual results during the period or periods covered by any
such projections may differ from the projected results; and (c) to succeed, the
Company may need to attract additional capital and additional personnel, and
there can be no assurances that the Company will be able to attract such capital
or personnel.

          3.10  No Representations.  Each Investor acknowledges that there have
                ------------------
been no representations, guarantees or warranties made to it by the Company, its
agents or employees, or by any other person with respect to (a) the approximate
length of time that such Investor will be required to remain as the owner of the
Securities; or (b) the percentage of profit or amount of profit to be realized,
if any, as a result of its investment.

     4.   Conditions to Closing.
          ---------------------

          4.1   Conditions to the Investors' Obligations at the Closing or
                ----------------------------------------------------------
Additional Closing.  The obligations of each Investor under Section 1 of this
------------------
Agreement are subject to the fulfillment at or before the Closing or Additional
Closing in which such Investor is to participate of each of the following
conditions, the waiver of which shall not be effective against any Investor who
does not consent thereto.

                (a)   Representations and Warranties.  The representations and
                      ------------------------------
warranties of the Company contained in Section 2 of this Agreement shall be true
at the Closing or Additional Closing, as applicable, with the same effect as
though such representations and warranties had been made at such time.

                (b)   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 or
Additional Closing, as applicable, including but not limited to delivery by the
Company of certificates representing the Shares to be purchased and sold on the
date thereof.

                (c)   Compliance Certificates. The Chief Operating Officer of
                      -----------------------
the Company shall deliver to each Investor at the Closing or Additional Closing,
as applicable, a certificate certifying that the conditions specified in
Sections 4.1(a) and 4.1(b) have been fulfilled and stating that there shall have
been no change causing a Material Adverse Effect since December 31, 1999.

                (d)   Regulatory Requirements. The Commissioner of Corporations
                      -----------------------
of the State of California shall have issued a permit qualifying the offer and
sale of the Series C Preferred Stock and the underlying Common Stock to the
Investors pursuant to this Agreement, or such offer and sales shall be exempt
from such qualification under the California Corporate Securities Law of 1968,
as amended. Any other authorizations, approvals, or permits, if any, of any
governmental authority or regulatory body of the United States or of any state
that are required to be obtained by the Company in connection with the lawful
issuance and sale of the securities pursuant to this Agreement shall be duly
obtained and effective as of the Closing or Additional Closing, as applicable.

                                       16
<PAGE>

                (e)   Board of Directors. Concurrently with the Closing, the
                      ------------------
Board of Directors of the Company shall be increased to nine directors and the
directors of the Company immediately after the Closing Date shall consist of the
following persons: Ross Dove, Kirk Dove, Blake Winchell, David Pottruck, Grant
Heidrich, Todd Rulon-Miller, Jeffrey Crowe, William Burnham and William S. Price
III.

                (f)   Certificate of Incorporation. The Certificate of
Incorporation shall have been filed with the Delaware Secretary of State's
Office and the Investors shall have received a certified copy of the Company's
Certificate of Incorporation, substantially in the form attached hereto as
Exhibit A.
---------

                (g)   Investors' Rights Agreement. The Company and each other
                      ---------------------------
Investor shall have executed the Investors' Rights Agreement, substantially in
the form attached as Exhibit B.
                     ---------

                (h)   Stockholders' Agreement. The stockholders of the Company
                      -----------------------
and the other Investors shall have executed the Stockholders' Agreement,
substantially in the form of Exhibit C hereto.
                             ---------

                (i)   Amendment of Put/Call Agreement.  The Amended and Restated
                      -------------------------------
Put/Call Agreement, dated October 18, 1999 between The Dove Holdings Corporation
and Fremont Ventures I, L.P. (the "Put/Call Agreement") shall have been amended
to provide that the put and call provided for therein must be exercised, if at
all, prior to the initial public offering of the Company's Common Stock, as
defined therein.

                (j)   Stock Repurchase Agreement. Ross Dove, Kirk Dove, The Dove
                      --------------------------
Holdings Corporation ("Holdings") and the Company shall have entered into and
delivered Stock Repurchase Agreements providing for the re-vesting of 50% of the
shares held by Holdings over a three-year period commencing June 14, 1999 at a
repurchase price of $0.33 per share; provided that the vesting of such shares
                                     --------
shall accelerate upon an acquisition of the Company or upon termination of Ross
Dove or Kirk Dove, as the case may be, without cause or for good reason (the
"Stock Repurchase Agreements").

                (k)   Opinion of Company Counsel. The Investors shall have
                      --------------------------
received from Fenwick & West an opinion dated as of the Closing or Additional
Closing, as the case may be, substantially in the form of Exhibit D hereto.
                                                          ---------

                (l)   Confidentiality Agreements. The Company shall have used
                      --------------------------
its best efforts to enter into Employee Confidentiality and Proprietary
Information Agreement, in the form delivered to counsel for the lead Investors
and customarily used by the Company, with each officer and employee of the
Company.

                (m)   Proceedings and Documents. All corporate and other
                      -------------------------
proceedings in connection with the transactions contemplated at the Closing, and
all documents incident thereto shall be reasonably satisfactory in form and
substance to the Investors, and they shall have received all such counterpart
original and certified or other copies of such documents as they may reasonably
request.

                                       17
<PAGE>

          4.2   Conditions to the Company's Obligations at the Closing.  The
                ------------------------------------------------------
obligations of the Company to each Investor under this Agreement are subject to
the fulfillment at or before the Closing or Additional Closing in which such
Investor is to participate of each of the following conditions.

                (a)   Representations and Warranties.  The representations and
                      ------------------------------
warranties of such Investors contained in Section 3 of this Agreement shall be
true at and as of the Closing or Additional Closing, as the case may be, with
the same effect as though such representations and warranties had been made at
and as of that time.

                (b)   Performance. Each such Investor 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 or Additional Closing, as applicable, including but not limited to
delivery by such Investor of the Purchase Price for the Shares to be purchased
and sold by such Investor on the date thereof. The Company's Board of Directors
and stockholders shall have approved the terms of the Certificate of
Incorporation and the Board of Directors shall have authorized the filing
thereof with the Office of the Delaware Secretary of State.

                (c)   Regulatory Requirements. The Commissioner of Corporations
                      -----------------------
of the State of California shall have issued a permit qualifying the offer and
sale of the Series C Preferred Stock and the underlying Common Stock to the
Investors pursuant to this Agreement, or such offer and sales shall be exempt
from such qualification under the California Corporate Securities Law of 1968,
as amended. Any other authorizations, approvals, or permits, if any, of any
governmental authority or regulatory body of the United States or of any state
that are required to be obtained by any of the Investors in connection with the
lawful issuance and sale of the securities pursuant to this Agreement shall be
duly obtained and effective as of the Closing or Additional Closing, as
applicable.

                (d)   Investors' Rights Agreement.  The each Investor shall have
                      ---------------------------
executed the Investors' Rights Agreement, substantially in the form attached as
Exhibit B.
---------

                (e)   Stockholders' Agreement. The stockholders of the Company
                      -----------------------
and each Investor shall have executed the Stockholders' Agreement, substantially
in the form of Exhibit C hereto.
               ---------

                (f)   Amendment of Put/Call Agreement.  The Amended and Restated
                      -------------------------------
Put/Call Agreement, dated October 18, 1999 between The Dove Holdings Corporation
and Fremont Ventures I, L.P. (the "Put/Call Agreement") shall have been amended
to provide that the put and call provided for therein must be exercised, if at
all, prior to the initial public offering of the Company's Common Stock, as
defined therein.

                (g)   Stock Repurchase Agreements. Ross Dove, Kirk Dove and
                      ---------------------------
Holdings shall have entered into and delivered the Stock Repurchase Agreements.

                (h)   Board of Directors. At or before with the Closing, the
                      ------------------
following individuals shall have consented to serve as members of Board of
Directors of the Company:

                                       18
<PAGE>

Ross Dove, Kirk Dove, Blake Winchell, David Pottruck, Grant Heidrich, Todd
Rulon-Miller, Jeffrey Crowe, William Burnham and William S. Price, III.

          4.3   Conditions to the Company's Obligations to Comdisco, Sun and
                ------------------------------------------------------------
Yahoo.  The obligations of the Company to each of Comdisco, Sun, Data Stream and
-----
Yahoo under this Agreement are also subject to the fulfillment of the following
conditions at or before the Closing or Additional Closing in which such party is
to participate as an Investor:

                (a)   The Company and such party shall have entered into and
     delivered at the Closing or Additional Closing, as the case may be, such
     additional agreements regarding the Company's business relationship with
     such Investor as shall be acceptable to the Company in its sole discretion;

                (b)   With respect to Comdisco, Comdisco shall have executed and
     delivered to the Company an Asset Purchase and Co-Marketing Agreement
     satisfactory to the Company and such bills of sale and other documents of
     title or assignment as the Company shall have reasonably requested and
     shall have delivered possession of the assets to be transferred in return
     for the Shares;

                (c)   With respect to Sun or Data Stream, such party shall have
     executed and delivered to the Company a commercial agreement satisfactory
     to the Company; and

                (d)   With respect to Yahoo, Yahoo shall have executed and
     delivered to the Company an Advertising and Promotion Agreement
     satisfactory to the Company and the Warrant in a form reasonably acceptable
     to the Company.

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

          5.1   Survival of Warranties.  The warranties, representations and
                ----------------------
covenants of the Company and Investors contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement, the
Closing and each Additional 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.

          5.2   Successors and Assigns.  Any Investor may assign, in whole or in
                ----------------------
part, its rights and delegate its obligations hereunder (including, without
limitation, the rights to purchase any or all of the Shares and the obligation
to pay all or any portion of the purchase price for the Shares) to any of its
affiliates, including, without limitation, any wholly-owned subsidiary of an
Investor, any partner, partnership or other entity of which any affiliate of
such Investor is a general partner or has investment discretion, or any
employees of any of the foregoing, provided that the assignee is an "accredited
                                   --------
investor" within the meaning of Regulation D promulgated by the Comission under
the Securities Act; provided, further, that any such assignee that acquires any
                    --------  -------
Shares shall, as a condition to acquiring such Shares, agree to be bound by the
provisions of any agreement applicable to the Shares.  Except as otherwise
provided herein, 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 (including transferees of any shares of Series C Preferred Stock sold
hereunder or any Common Stock issued upon conversion thereof).  Nothing in this

                                       19
<PAGE>

Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

          5.3   Governing Law.  This Agreement shall be governed by, and
                -------------
construed in accordance with, the laws of the State of California as applied to
contracts entered into in California by California residents to be entirely
performed in such State.

          5.4   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.

          5.5   Notices.  All notices, requests, consents and other
                -------
communications required or permitted hereunder shall be in writing and shall be
deemed to have been given for all purposes upon (a) personal delivery, (b) one
day after being sent, when sent by professional overnight courier service from
and to locations within the United States, (c) five days after posting when sent
by registered or certified mail, or (d) on the date of transmission when sent by
facsimile and when receipt has been confirmed, addressed (i) if to the Company
at the address or facsimile number, as applicable set forth on the signature
pages hereto; or (ii) if to any Investor, addressed to such Investor at its
address or facsimile number, as applicable, as shown on the signature pages
hereto.   Any party hereto may from time to time by notice in writing to the
other parties as provided herein, designate a different mailing address or a
different person to which such notices or demands are thereafter to be addressed
or delivered.

          5.6   Finder's Fee.  Each party represents that it neither is nor will
                ------------
be obligated for any finder's fee or commission in connection with this
transaction.  Each party to this Agreement agrees to indemnify and to hold
harmless each other party to this Agreement 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
such party or any of its officers, partners, employees, members or
representatives is responsible.

          5.7   Expenses.  If the Closing is effected, the Company shall, at the
                --------
Closing, reimburse the reasonable fees and expenses of Sullivan & Cromwell,
counsel for SOFTBANK Capital Partners LP and SOFTBANK Capital Advisors Fund LP
in an amount up to $20,000.  If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement or the Certificate of
Incorporation, the prevailing party shall be entitled to reasonable attorney's
fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

          5.8   Amendments and Waivers.  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 holders of
Series C Preferred Stock then owning a majority of the Series C Preferred Stock
and the Common Stock issued upon conversion of the Series C Preferred Stock
issued pursuant to this Agreement.  Any amendment or waiver effected in
accordance with this Section shall be binding upon each holder of any securities
purchased under this Agreement at

                                       20
<PAGE>

the time outstanding (including securities into which such securities are
convertible), each future holder of all such securities, and the Company.

          5.9   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 this Agreement shall be interpreted as if
such provision were so excluded and shall be enforceable in accordance with its
terms.

          5.10  Entire Agreement.  Except for the non-disclosure obligations of
                ----------------
Section 4 of that certain letter of intent, dated January 10, 2000, between
SOFTBANK Capital Partners LP and the Company and any other agreement between the
Company and any Investor regarding the confidentiality of information delivered
by the Company to such Investor prior to the Closing or Additional Closing in
which such Investor has participated, this Agreement and the documents referred
to herein constitute the entire agreement among the parties and no party shall
be liable or bound to any other party in any manner by any warranties,
representations, or covenants except as specifically set forth herein or
therein.

          5.11  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 agreement.

          5.12  California Commissioner of Corporations.  THE SALE OF THE
                ---------------------------------------
SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH
THE COMMSSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND 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 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.

                            [Signature Pages Follow]

                                       21
<PAGE>

     In Witness Whereof, the parties hereto have executed this Agreement with
the intent and agreement that the same shall be effective as of the day and year
first above written.

        THE COMPANY:              DOVEBID, INC.
        -----------

                                  By:__________________________________________
                                  Its:  President

                                  Address: 1241 East Hillsdale Blvd.
                                           Foster City, CA  94404
                                           Facsimile No.: 650-571-5980
                                           Attention: Chief Executive   Officer

        INVESTORS:                COMDISCO, INC.
        ----------

                                  By:__________________________________________
                                  Its:

                                  Address: 6111 North River Road
                                           Rosemont, IL 60018
                                           Attn: Frank Cirone
                                           Facsimile:  (847) 518-5334

                                  Copy to:  General Counsel (same address)
                                            Facsimile:  (847) 518-5088

                                  FREMONT VENTURES I, L.P.

                                  a Delaware limited partnership
                                  By:  FV, L.P., its General Partner
                                  By:  Fremont Resources, Inc.
                                       its General Partner

                                  By:__________________________________________
                                  Its:

                                  Address:  50 Fremont Street, Suite 3500
                                            San Francisco, CA  94105
                                            Facsimile:  (415) 284-8102
                                            Attention:  W. Blake Winchell

                                       22
<PAGE>

                                  F&W INVESTMENTS 2000

                                  By:__________________________________________
                                  It's:  General Partner

                                  Address:  Two Palo Alto Square
                                            Palo Alto, CA 94306
                                            Facsimile: (650) 494-1417

                                  MAYFIELD X, L.P.
                                  By:  Mayfield X Management, L.L.C.
                                  Its:  General Partner

                                  By:__________________________________________
                                  Its:  Managing Director

                                  MAYFIELD ASSOCIATES FUND V, L.P.
                                  By:  Mayfield X Management, L.L.C.
                                  Its:  General Partner

                                  By:__________________________________________
                                  Its:  Managing Director

                                  MAYFIELD PRINCIPALS FUND, L.L.C.
                                  By:  Mayfield X Management, L.L.C.
                                  Its:  Managing Member

                                  By:__________________________________________
                                  Its:  Managing Director

                                  Address:  (for all three Mayfield entities):
                                            2800 Sand Hill Road, Suite 250
                                            Menlo Park, CA  94025
                                            Facsimile:  650-854-5712
                                            Attention:  Mr. Grant Heidrich

                                  SOFTBANK CAPITAL PARTNERS LP
                                  a Delaware limited partnership
                                  By: SOFTBANK Capital Partners LLC
                                      its General Partner

                                  By:__________________________________________
                                  Its:

                                       23
<PAGE>

                                  SOFTBANK CAPITAL ADVISORS FUND LP
                                  a Delaware limited partnership
                                  By: SOFTBANK Capital Partners LLC
                                      its General Partner

                                  By:__________________________________________
                                  Its:

                                  Address:  (for both SOFTBANK entities):
                                            10 Langely Road, Suite 403
                                            Newton Center, MA 02459
                                            Facsimile:  617-928-9304
                                            Attention:  Mr. Steve Murray

                                  SUN MICROSYSTEMS, INC.

                                  By:__________________________________________
                                  Its:

                                  Address:  901 San Antonio Road
                                            Palo Alto, CA 94303
                                            Attn:  Mr. Jonathan Swartz
                                            Cc:  General Counsel
                                            Cc:  Elizabeth Kurr, Esq.
                                            Facsimile:__________________________

                                  TPG PARTNERS III, L.P.
                                  By:   TPG GenPar III, L.P.
                                  By:   TPG Advisors III, Inc.

                                  By:__________________________________________

                                  Title:________________________________________

                                  TPG PARALLEL III, L.P.
                                  By:   TPG GenPar III, L.P.
                                  By:   TPG Advisors III, Inc.

                                  By:__________________________________________

                                  Title:_______________________________________

                                       24
<PAGE>

                                  TPG INVESTORS III, L.P.
                                  By:   TPG GenPar III, L.P.
                                  By:   TPG Advisors III, Inc.

                                  By:__________________________________________

                                  Title:_______________________________________

                                  T/3/ PARTNERS, L.P.
                                  By:   T/3/ GenPar, L.P.
                                  By:   T/3/ Advisors, Inc.

                                  By:__________________________________________

                                  Title:_______________________________________

                                  T/3/ PARALLEL, L.P.
                                  By:   T/3/ GenPar, L.P.
                                  By:   T/3/ Advisors, Inc.

                                  By:__________________________________________

                                  Title:_______________________________________

                                  T/3/ INVESTORS, L.P.
                                  By:   T/3/ GenPar, L.P.
                                  By:   T/3/ Advisors, Inc.

                                  By:__________________________________________

                                  Title:_______________________________________

                                       25
<PAGE>

                                  FOF PARTNERS III, L.P.
                                  By:   TPG GenPar III, L.P.
                                  By:   TPG Advisors III, Inc.

                                  By:__________________________________________

                                  Title:_______________________________________

                                  FOF PARTNERS III-B, L.P.
                                  By:   TPG GenPar III, L.P.
                                  By:   TPG Advisors III, Inc.

                                  By:__________________________________________

                                  Title:_______________________________________

                                  TPG DUTCH PARALLEL III, C.V.
                                  By:   TPG GenPar III, L.P.
                                  By:   TPG Advisors III, Inc.

                                  By:___________________________________________

                                  Title:_______________________________________

                                  T/3/ DUTCH PARALLEL, C.V.
                                  By:   T/3/ GenPar, L.P.
                                  By:   T/3/ Advisors, Inc.

                                  By:__________________________________________

                                  Title:_______________________________________
                                  Address:  (for all TPG entities):
                                            c/o TPG Partners III, L.P.
                                            201 Main Street, Suite 2420
                                            Fort Worth, Texas 76102
                                            Facsimile:  (817) 871-4010
                                            Attention:  James J. O'Brien,
                                                        Chief Financial Officer

                                       26
<PAGE>

                                  T.H. eVENTURE PTE LTD

                                  By:__________________________________________
                                  Its:

                                  Address:  8 Shenton Way
                                            #38-03 Temasek Tower
                                            Singapore 068811
                                            Attention:  Dennis Siew
                                                        Vice President
                                            Facsimile:  (65) 2214-870

                                  YAHOO! INC.

                                  By:__________________________________________
                                  Its:

                                  Address:   3420 Central Expressway
                                             Santa Clara, California 95051
                                             Attn:  Senior Vice President,
                                                    Corporate Development
                                             Facsimile:________________________

                                  DATASTREAM SYSTEMS, INC.

                                  By:__________________________________________
                                  Its: Chief Executive Officer

                                  Address: 50 Datastream Plaza
                                  Greenville, South Carolina 29605
                                  Attn: Mr. Greg Jackson
                                  Facsimile:___________________________________

                                       27
<PAGE>

                                 Schedule 1.1
                                 ------------

                             Schedule of Investors

<TABLE>
<CAPTION>
                                                  Number                   Total                   Closing
Name of Investor                                of Shares              Purchase Price                Date
---------------------------------------    ------------------    -----------------------       --------------
<S>                                        <C>                   <C>                           <C>

Comdisco, Inc..........................             3,745,319            $ 10,000,001.73*              3/6/00
DataStream Systems, Inc................               749,064               2,000,000.88               3/7/00
Fremont Ventures I, L.P................             1,123,596               3,000,001.32              2/25/00
F&W Investments 2000...................               187,266                 500,000.22              2/25/00
Mayfield Associates Fund V, L.P........               134,832                 360,001.44              2/25/00
Mayfield X, L.P........................             3,910,113              10,440,001.71              2/25/00
Mayfield Principals Fund, L.L.C........               449,439               1,200,002.13              2/25/00
SOFTBANK Capital Partners LP...........            14,767,042              39,428,002.14              2/25/00
SOFTBANK Capital Advisors Fund LP......               214,232                 571,999.44              2/25/00
Sun Microsystems, Inc..................             3,745,319              10,000,001.73               3/3/00
TPG Partners III, L.P..................             5,188,952              13,854,501.84              2/25/00
TPG Parallel III, L.P..................               674,148               1,799,975.16              2/25/00
TPG Dutch Parallel, C.V................               135,693                 362,300.31              2/25/00
TPG Investor III, L.P..................               312,865                 835,349.55              2/25/00
T3 Partners, L.P.......................             2,405,487               6,422,650.29              2/25/00
T3 Parallel, L.P.......................               181,704                 485,149.68              2/25/00
T3 Dutch Parallel, C.V.................               139,775                 373,199.25              2/25/00
T3 Investors, L.P......................               134,700                 359,649.00              2/25/00
FOF Partners III, L.P..................                 8,184                  21,851.28              2/25/00
FOF Partners III-B, L.P................               181,788                 485,373.96              2/25/00
T.H. eVenture Pte Ltd..................             1,872,660               5,000,002.20              2/28/00
Yahoo! Inc.............................               749,064               2,000,000.88               3/8/00
                                           ------------------    -----------------------

                Total..................            41,011,242            $109,500,016.08
</TABLE>

______________________________
* Paid by delivery of assets for resale acceptable to the Company at an agreed
  upon fair market value.

                                       28

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