Document:

<PAGE>

                                                                    EXHIBIT 10.8

                                  PeoplePC Inc.

                              AMENDED AND RESTATED

                            INVESTOR RIGHTS AGREEMENT

                                  April 5, 2000
<PAGE>

                                TABLE OF CONTENTS

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SECTION 1 GENERAL......................................................   2

1.1   Definitions......................................................   2

SECTION 2 REGISTRATION; RESTRICTIONS ON TRANSFER                          3

2.1   Restrictions on Transfer.........................................   3
2.2   Demand Registration..............................................   4
2.3   Piggyback Registrations..........................................   6
2.4   Form S-3 Registration............................................   7
2.5   Expenses of Registration.........................................   8
2.6   Obligations of the Company.......................................   9
2.7   Termination of Registration Rights...............................  10
2.8   Delay of Registration; Furnishing Information....................  10
2.9   Indemnification..................................................  11
2.10  Assignment of Registration Rights................................  13
2.11  Amendment of Registration Rights.................................  13
2.12  Limitation on Subsequent Registration Rights.....................  13
2.13  "Market Stand-Off" Agreement; Agreement to Furnish Information...  13
2.14  Rule 144 Reporting...............................................  14

SECTION 3 COVENANTS OF THE COMPANY.....................................  15

3.1   Basic Financial Information and Reporting........................  15
3.2   Inspection Rights................................................  15
3.3   Confidentiality of Records.......................................  16
3.4   Reservation of Common Stock......................................  16
3.5   Stock Vesting....................................................  16
3.6   Proprietary Information and Inventions Agreement.................  16
3.7   Directors' Liability and Indemnification; Expenses...............  16
3.8   Qualified Small Business.........................................  17
3.9   Insurance........................................................  17
3.10  Obligations of Management........................................  17
3.11  International Joint Venture......................................  17
3.12  Dissolution or Liquidation.......................................  17
3.13  Termination of Covenants.........................................  17

SECTION 4 RIGHTS OF FIRST REFUSAL......................................  18

4.1   Waiver of Right..................................................  18
4.2   Subsequent Offerings.............................................  18
4.3   Exercise of Rights...............................................  18
4.4   Sale Without Notice..............................................  18
4.5   Termination and Waiver of Rights of First Refusal................  19
4.6   Transfer of Rights of First Refusal..............................  19
4.7   Excluded Securities..............................................  19
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SECTION 5 MISCELLANEOUS................................................  20

5.1   Governing Law....................................................  20
5.2   Survival.........................................................  20
5.3   Successors and Assigns...........................................  20
5.4   Entire Agreement.................................................  20
5.5   Severability.....................................................  20
5.6   Amendment and Waiver.............................................  21
5.7   Delays or Omissions..............................................  21
5.8   Notices..........................................................  21
5.9   Attorneys' Fees..................................................  21
5.10  Titles and Subtitles.............................................  22
5.11  Additional Investors.............................................  22
5.12  Counterparts.....................................................  22
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                                      -ii-
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                                PEOPLEPC, INC.

                             AMENDED AND RESTATED
                           INVESTOR RIGHTS AGREEMENT

     This Amended and Restated Investor Rights Agreement (the "Agreement") is
entered into as of the ________ day of April 2000 by and among PeoplePC Inc., a
Delaware corporation (the "Company"), the holders of the Company's Series A
Preferred Stock ("Series A Stock") set forth on Exhibit A hereto, Nick Grouf,
                                                ---------
Max Metral and David Waxman (collectively, the "Stockholders" and each
individually a "Stockholder"), the holders of the Company's Series B Preferred
Stock ("Series B Stock") set forth on Exhibit B hereto and the purchasers of the
                                      ---------
Company's Series C Preferred Stock ("Series C Stock") pursuant to the Series C
Preferred Stock Purchase Agreement of even date herewith (the "Purchase
Agreement") and set forth on Exhibit C hereto.  The holders of the Series A
                             ---------
Stock shall be referred to hereinafter as the "Series A Investors," the holders
of the Series B Stock shall be referred to hereinafter as the "Series B
Investors" and the purchasers of the Series C Stock shall be referred to
hereinafter as to "Series C Investors" (collectively as the "Investors" and each
individually as an "Investor").

                                    Recitals

     Whereas, the Company proposes to sell and issue shares of its Series C
Stock pursuant to the Purchase Agreement; and

     Whereas, as a condition of entering into the Purchase Agreement, the Series
C Investors have requested that the Company extend to them registration rights,
information rights and other rights as set forth below.

     Whereas, the Series A Investors and the Series B Investors possess
registration rights, information rights and other rights pursuant to that
certain Amended and Restated Investor Rights Agreement dated as of October 25,
1999, by and among the Company, the Series A Investors, the Series B Investors
and Stockholders (the "Prior Agreement");

     Whereas, the Company's and the Series C Investors' obligations under the
Purchase Agreement are conditioned upon the execution and delivery of this
Agreement by such Series C Investors, the Company and the holders of at least a
majority of the Series A Stock, Series B Stock, and Common Stock held by the
Stockholders;

     Now, Therefore, in consideration of the mutual promises, representations,
warranties, covenants and conditions set forth in this Agreement and in the
Purchase Agreement, the Series A Investors, Series B Investors and the
Stockholders who are parties to the Prior Agreement, hereby agree that the Prior
Agreement shall be superseded and replaced in its entirety by this Agreement,
and the parties hereto further agree as follows:
<PAGE>

                                  SECTION 1

                                   GENERAL

     1.1 Definitions. As used in this Agreement the following terms shall have
the following respective meanings:

     "Change of Control" means (a) the sale, lease or other disposition of all
or substantially all of the assets of the Company or (b) an acquisition of the
Company by another corporation or entity by consolidation, merger or other
reorganization in which the holders of the Company's outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing less than fifty percent (50%) of the voting power of the
corporation or other entity surviving such transaction, or any transaction or
series of related transactions to which the Company is a party in which more
than fifty percent (50%) of the Company's voting power is transferred, provided
that a Change of Control shall not include a merger effected exclusively for the
purpose of changing the domicile of the Company.

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

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

     "Holder" means any person owning of record Registrable Securities that have
not been sold to the public or any assignee of record of such Registrable
Securities in accordance with Section 2.10 hereof.

     "Initial Offering" means the Company's first firm commitment underwritten
public offering of its Common Stock registered under the Securities Act.

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

     "Registrable Securities" means (a) Common Stock of the Company issued or
issuable upon conversion of the Shares; (b) 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 dividend or other distribution with respect
to, or in exchange for or in replacement of, such above-described securities;
(c) any Private Placement Shares of the Company purchased by Ford Motor Company
and its affiliates ("Ford") pursuant to the Letter Agreement dated of even date
herewith between the Company and Ford (the "Letter Agreement"); and (d) any
Common Stock issued or issuable upon the exercise of the warrant that may be
issued to Ford pursuant to the Letter Agreement.  Notwithstanding the foregoing,
Registrable Securities shall not include any securities sold by a person to the
public pursuant to an effective registration statement or available for sale
under Rule 144(k) pursuant to the Securities Act (or any successor provision).

                                       2
<PAGE>

     "Registrable Securities then outstanding" shall be the number of shares
determined by calculating the total number of shares of the Company's Common
Stock that are Registrable Securities and either (a) are then issued and
outstanding or (b) are issuable pursuant to then exercisable or convertible
securities.

     "Registration Expenses" shall mean all expenses incurred by the Company in
complying with Sections 2.2, 2.3, 2.4 and 2.5 hereof, including, without
limitation, all registration and filing fees, printing expenses, accounting
fees, fees and disbursements of counsel for the Company, reasonable fees and
disbursements of a single special counsel for the Holders, blue sky fees and
expenses and the expense of any special audits incident to or required by any
such registration (but excluding the compensation of regular employees of the
Company which shall be paid in any event by the Company).

     "SEC" or "Commission" means the Securities and Exchange Commission.

     "Securities Act" shall mean the Securities Act of 1933, as amended.

     "Selling Expenses" shall mean all underwriting discounts and selling
commissions applicable to the sale and stock transfer taxes.

     "Shares" shall mean (i) the Company's Series A Stock held by the Series A
Investors listed on Exhibit A hereto and their permitted assigns, (ii) the
                    ---------
Company's Series B Stock held by the Series B Investors listed on Exhibit B
                                                                  ---------
hereto and their permitted assigns, (iii) the Company's Series C Stock, issued
pursuant to the Purchase Agreement and held by the Series C Investors listed on

Exhibit C hereto and their permitted assigns, and (iv) the Company's Common
---------
Stock held by Nick Grouf, Max Metral and David Waxman listed on Exhibit D hereto
                                                                ---------
and their permitted assigns.

                                   SECTION 2

                     REGISTRATION; RESTRICTIONS ON TRANSFER

     2.1  Restrictions on Transfer.

          (a) Each Holder agrees not to make any disposition of all or any
portion of the Shares or Registrable Securities unless and until:

              (i) 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

              (ii) (A) The transferee has agreed in writing to be bound by the
terms of this Agreement, (B) such Holder 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 (C) if
reasonably requested by the Company, such Holder 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

                                       3
<PAGE>

Securities Act. It is agreed that the Company will not require opinions of
counsel for transactions made pursuant to Rule 144.

              (iii) Notwithstanding the provisions of paragraphs (i) and (ii)
above, no such registration statement or opinion of counsel shall be necessary
for a transfer by a Holder which is (A) a partnership to its partners or former
partners in accordance with partnership interests, (B) a corporation to its
stockholders in accordance with their interest in the corporation, (C) a limited
liability company to its members or former members in accordance with their
interest in the limited liability company, (D) to the Holder's family member or
trust for the benefit of an individual Holder or (E) an affiliate (as defined in
Rule 405 pursuant to the Securities Act) or donee of a Holder or (F) as
contemplated under Section 4 of the Purchase Agreement; provided that in each
case the transferee will be subject to the terms of this Agreement to the same
extent as if he were an original Holder hereunder.

          (b) Each certificate representing Shares or Registrable Securities
shall (unless otherwise permitted by the provisions of the Agreement) be stamped
or otherwise imprinted with a legend substantially similar to the following (in
addition to any legend required under applicable state securities laws):

              THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
              THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED,
              SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED
              UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY
              HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND
              ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

          (c) The Company shall be obligated to reissue promptly unlegended
certificates at the request of any holder thereof if the holder shall have
obtained an opinion of counsel (which counsel may be counsel to the Company)
reasonably acceptable to the Company to the effect that the securities proposed
to be disposed of may lawfully be so disposed of without registration,
qualification or legend.

          (d) Any legend endorsed on an instrument pursuant to applicable state
securities laws and the stop-transfer instructions with respect to such
securities shall be removed upon receipt by the Company of an order of the
appropriate blue sky authority authorizing such removal.

     2.2  Demand Registration

          (a) Subject to the conditions of this Section 2.2, if the Company
shall receive a written request from the Holders of thirty percent (30%) of the
Registrable Securities then outstanding (the "Initiating Holders") that the
Company file a registration statement under the Securities Act covering the
registration of at least twenty percent (20%) of the Registrable Securities then
outstanding (or any lesser percent if the anticipated aggregate offering price,
net

                                       4
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of underwriting discounts and commissions, would exceed $50,000,000 (a
"Qualified Public Offering")), then the Company shall, within thirty (30) days
of the receipt thereof, give written notice of such request to all Holders, and
subject to the limitations of this Section 2.2, use its best efforts to effect,
as soon as practicable, and in any event within 60 days of the receipt of such
request the registration under the Securities Act of such Registrable Securities
that the Holders request to be registered.

          (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 2.2
or any request pursuant to Section 2.4 and the Company shall include such
information in the written notice referred to in Section 2.2 (a) or Section
2.4(a), as applicable. In such event, the right of any Holder to include its
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 to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall
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 (which underwriter or underwriters shall be reasonably
acceptable to the Company). Notwithstanding any other provision of this Section
2.2 or Section 2.4, if the underwriter advises the Company that marketing
factors require a limitation of the number of securities to be underwritten
(including Registrable Securities) then the Company shall so advise all Holders
of Registrable Securities that would otherwise be underwritten pursuant hereto,
and the number of shares that may be included in the underwriting shall be
allocated to the Holders of such Registrable Securities on a pro rata basis
based on the number of Registrable Securities held by all such Holders
(including the Initiating Holders); provided, however, that the number of shares
of Registrable Securities to be included in such underwriting and registration
shall not be reduced unless all other securities of the Company are first
entirely excluded from the underwriting and registration. Any Registrable
Securities excluded or withdrawn from such underwriting shall be withdrawn from
the registration.

           (c) The Company shall not be required to effect a registration
pursuant to this Section 2.2:

               (i) prior to the earlier of (A) the third anniversary of the date
of this Agreement or (B) six (6) months following the effective date of the
registration statement pertaining to the Initial Offering;

               (ii) after the Company has effected three (3) registrations
pursuant to this Section 2.2, and such registrations have been declared or
ordered effective;

               (iii) during the period starting with the date of filing of, and
ending on the date one hundred eighty (180) days following the effective date of
the registration statement pertaining to the Initial Offering; provided that the
Company makes reasonable good faith efforts to cause such registration statement
to become effective;

               (iv) if within thirty (30) days of receipt of a written request
from the Initiating Holders pursuant to Section 2.2 (a), the Company gives
notice to the Holders of the

                                       5
<PAGE>

Company's intention file a registration statement relating to its Initial
Offering within ninety (90) days (and such filing is made within such ninety
(90) day period);

               (v) if the Company shall furnish to Holders requesting a
registration statement pursuant to this Section 2.2 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 stockholders for such registration statement to be effected
at such time, in which event the Company shall have the right to defer such
filing for a period of not more than ninety (90) days after receipt of the
request of the Initiating Holders; provided that such right to delay a request
shall be exercised by the Company not more than once in any twelve (12) month
period and provided further the Company shall not register any other capital
stock during such ninety (90) day period; or

               (vi) if the Company is eligible to register the Registrable
Securities on Form S-3 under the Securities Act of 1933; or

               (vii) 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 2.4 below.

     2.3  Piggyback Registrations. The Company shall notify all Holders of
Registrable Securities in writing at least thirty (30) days prior to the filing
of any registration statement under the Securities Act for purposes of a public
offering of securities of the Company (including, but not limited to,
registration statements to be filed pursuant to Section 2.2 and registration
statements relating to secondary offerings of securities of the Company, but
excluding registration statements relating to employee benefit plans or with
respect to corporate reorganizations or other transactions under Rule 145 of the
Securities Act) and will afford each such Holder an opportunity to include in
such registration statement all or part of such Registrable Securities held by
such Holder. Each Holder desiring to include in any such registration statement
all or any part of the Registrable Securities held by it shall, within fifteen
(15) days after the above-described notice from the Company, so notify the
Company in writing. Such notice shall state the intended method of disposition
of the Registrable Securities by such Holder. If a Holder decides not to include
all of its Registrable Securities in any registration statement thereafter filed
by the Company, such Holder shall nevertheless continue to have the right to
include any Registrable Securities in any subsequent registration statement or
registration statements as may be filed by the Company with respect to offerings
of its securities, all upon the terms and conditions set forth herein.

          (a) Underwriting. If the registration statement under which the
Company gives notice under this Section 2.3 is for an underwritten offering, the
Company shall so advise the Holders of Registrable Securities. In such event,
the right of any such Holder to be included in a registration pursuant to this
Section 2.3 shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable Securities in the
underwriting to the extent provided herein. All Holders proposing to distribute
their Registrable Securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting by the Company. Notwithstanding any other
provision of the Agreement, if the underwriter determines

                                       6
<PAGE>

in good faith that marketing factors require a limitation of the number of
shares to be underwritten, the number of shares that may be included in the
underwriting shall be allocated, first, to the Company; second, to the Holders
on a pro rata basis based on the total number of Registrable Securities held by
the Holders; and third, to any stockholder of the Company (other than a Holder)
on a pro rata basis. No such reduction shall (i) reduce the securities being
offered by the Company for its own account to be included in the registration
and underwriting, or (ii) reduce the amount of securities of the selling Holders
included in the registration below thirty percent (30%) of the total amount of
securities included in such registration, unless such offering is the Initial
Offering and such registration does not include shares of any other selling
stockholders, in which event any or all of the Registrable Securities of the
Holders may be excluded in accordance with the immediately preceding sentence.
In no event will shares of any other selling stockholder be included in such
registration that would reduce the number of shares that may be included by
Holders without the written consent of Holders of not less than a majority of
the Registrable Securities proposed to be sold in the offering. If any Holder
disapproves of the terms of any such underwriting, such Holder may elect to
withdraw therefrom by written notice to the Company and the underwriter,
delivered at least ten (10) business days prior to the effective date of the
registration statement. Any Registrable Securities excluded or withdrawn from
such underwriting shall be excluded and withdrawn from the registration. For any
Holder that is a partnership or corporation, the partners, retired partners and
stockholders of such Holder, or the estates and family members of any such
partners and retired partners and any trusts for the benefit of any of the
foregoing person shall be deemed to be a single "Holder", and any pro rata
reduction with respect to such "Holder" shall be based upon the aggregate amount
of shares carrying registration rights owned by all entities and individuals
included in such "Holder," as defined in this sentence.

          (b) Right to Terminate Registration. The Company shall have the right
to terminate or withdraw any registration initiated by it under this Section 2.3
prior to the effectiveness of such registration whether or not any Holder has
elected to include securities in such registration. The Registration Expenses of
such withdrawn registration shall be borne by the Company in accordance with
Section 2.5 hereof.

     2.4  Form S-3 Registration. In case the Company shall receive from any
Holder or Holders of Registrable Securities a written request or requests that
the Company effect a registration on Form S-3 (or any successor to Form S-3) or
any similar short-form registration statement 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 of Registrable
Securities; and

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

                                       7
<PAGE>

the Company shall not be obligated to effect any such registration,
qualification or compliance pursuant to this Section 2.4:

              (i)   if Form S-3 (or any successor or similar form) is not
available for such offering by the Holders, or

              (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 of less than five million dollars ($5,000,000), or

              (iii) if within thirty (30) days of receipt of a written request
from the Initiating Holders pursuant to Section 2.2(a), the Company gives notice
to the Holders of the Company's intention to file a registration statement
within sixty (60) days and such registration statements is filed within such
sixty (60) day period;

              (iv)  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 ninety (90) days after receipt of the request of the Holder or Holders
under this Section 2.4; provided, that such right to delay a request shall be
exercised by the Company not more than once in any twelve (12) month period and
provided further the Company shall not register any other capital stock during
such ninety (90) day period, or

               (v)  if the Company has, within the six (6) month period
preceding the date of such request, already effected one (1) registration on
Form S-3 for the Holders pursuant to this Section 2.4, or

               (vi) 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.

     (c) Subject to the foregoing, the Company shall file a Form S-3
registration statement covering the Registrable Securities and other securities
so requested to be registered as soon as practicable after receipt of the
request or requests of the Holders. Registrations effected pursuant to this
Section 2.4 shall not be counted as demands for registration or registrations
effected pursuant to Section 2.2.

     2.5  Expenses of Registration. Except as specifically provided herein, all
Registration Expenses incurred in connection with any registration,
qualification or compliance pursuant to Section 2.2, Section 2.3 or Section 2.4
herein shall be borne by the Company. All Selling Expenses incurred in
connection with any registrations hereunder, shall be borne by the holders of
the securities so registered pro rata on the basis of the number of shares so
registered. The Company shall not, however, be required to pay for expenses of
any registration proceeding begun pursuant to Section 2.2, or Section 2.4, the
request of which has been subsequently withdrawn by the Initiating Holders
unless (a) the withdrawal is based upon material adverse

                                       8
<PAGE>

information concerning the Company of which the Initiating Holders were not
aware at the time of such request or (b) a majority of the Initiating Holders
agree to forfeit their right to one requested registration pursuant to Section
2.2, or Section 2.4, as applicable, in which event such right shall be forfeited
by all Holders). If the Holders are required to pay the Registration Expenses,
such expenses shall be borne by the holders of securities (including Registrable
Securities) requesting such registration in proportion to the number of shares
for which registration was requested. If the Company is required to pay the
Registration Expenses of a withdrawn offering pursuant to clause (a) above, then
the Holders shall not forfeit their rights pursuant to Section 2.2, or Section
2.4 to a demand registration.

     2.6  Obligations of the Company. Whenever required 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 all reasonable 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 ninety (90) days or, if earlier,
until the Holder or Holders have completed the distribution related thereto. The
Company shall not be required to file, cause to become effective or maintain the
effectiveness of any registration statement that contemplates a distribution of
securities on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act.

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

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

          (d) Use its reasonable 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(s) 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 Securities Act of the happening of any event
as a result of which the prospectus included in such

                                       9
<PAGE>

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) Use its best efforts to furnish, on the date that such Registrable
Securities are delivered to the underwriters for sale, 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 as of 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 (ii) a letter dated
as of 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.

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

     2.7  Termination of Registration Rights. All registration rights granted
under this Section 2 shall terminate and be of no further force and effect five
(5) years after the date of the Company's Initial Offering. In addition, a
Holder's registration rights shall expire if (x) (i) the Company has completed
its Initial Offering and is subject to the provisions of the Exchange Act, (ii)
such Holder (together with its affiliates, partners and former partners) holds
less than 1% of the Company's outstanding Common Stock (treating all shares of
convertible Preferred Stock on an as converted basis) and (iii) all Registrable
Securities held by and issuable to such Holder (and its affiliates, partners,
former partners, members and former members) may be sold under Rule 144 during
any ninety (90) day period or (y) upon the effective date of a Change of Control
of the Company.

     2.8  Delay of Registration; Furnishing Information.

          (a) No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any such registration as the result of any
controversy that might arise with respect to the interpretation or
implementation of this Section 2.

          (b) It shall be a condition precedent to the obligations of the
Company to take any action pursuant to Sections 2.2, 2.3 or 2.4 that the selling
Holders shall furnish to the Company such information regarding themselves, the
Registrable Securities held by them and the intended method of disposition of
such securities as shall be required to effect the registration of their
Registrable Securities.

          (c) The Company shall have no obligation with respect to any
registration requested pursuant to Sections 2.2 or 2.4, if, due to the operation
of subsection 2.2(b), 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

                                      10
<PAGE>

aggregate offering price required to originally trigger the Company's obligation
to initiate such registration as specified in Sections 2.2 or 2.4 whichever is
applicable.

     2.9  Indemnification. In the event any Registrable Securities are included
in a registration statement under Sections 2.2, 2.3 or 2.4:

         (a) To the extent permitted by law, the Company will indemnify and hold
harmless each Holder, the partners, officers and directors of each Holder, any
underwriter (as defined in the Securities Act) for such Holder and each person,
if any, who controls such Holder or underwriter within the meaning of the
Securities Act or the Exchange Act, against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any of the following statements, omissions or violations
(collectively a "Violation") by the Company: (i) any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state
securities law or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities law in connection with the offering
covered by such registration statement; and the Company will pay as incurred to
each such Holder, partner, officer, director, underwriter or controlling person
for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided however, that the indemnity agreement contained in this Section 2.9(a)
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
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 such Holder, partner, officer,
director, underwriter or controlling person of such Holder.

          (b) To the extent permitted by law, each Holder will, if Registrable
Securities held by such Holder are included in the securities as to which such
registration qualifications or compliance is being effected, indemnify and hold
harmless the Company, each of its directors, its officers and each person, if
any, who controls the Company within the meaning of the Securities Act, any
underwriter and any other Holder selling securities under such registration
statement or any of such other Holder's partners, directors or officers or any
person who controls such Holder, against any losses, claims, damages or
liabilities (joint or several) to which the Company or any such director,
officer, controlling person, underwriter or other such Holder, or partner,
director, officer or controlling person of such other Holder may become subject
under the Securities Act, the Exchange Act or other federal or state law,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereto) arise out of or are based upon any Violation, in each case to the
extent (and only to the extent) that such Violation occurs in reliance upon and
in conformity with written information furnished by such Holder under an
instrument duly executed by such Holder and stated to be specifically for use in
connection with such

                                      11
<PAGE>

registration; and each such Holder will pay as incurred any legal or other
expenses reasonably incurred by the Company or any such director, officer,
controlling person, underwriter or other Holder, or partner, officer, director
or controlling person of such other Holder in connection with investigating or
defending any such loss, claim, damage, liability or action if it is judicially
determined that there was such a Violation; provided, however, that the
indemnity agreement contained in this Section 2.9(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Holder, which consent shall
not be unreasonably withheld; provided further, that in no event shall any
indemnity under this Section 2.9 exceed the net proceeds from the offering
received by such Holder.

           (c) Promptly after receipt by an indemnified party under this Section
2.9 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 2.9, 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 indemnified party; provided, however, that an indemnified
party shall have the right to retain its own counsel, with the fees and expenses
to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would 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 materially prejudicial to its ability to
defend such action, shall relieve such indemnifying party of any liability to
the indemnified party under this Section 2.9, but the omission so to deliver
written notice to the indemnifying party will not relieve it of any liability
that it may have to any indemnified party otherwise than under this Section 2.9.

          (d) If the indemnification provided for in this Section 2.9 is held by
a court of competent jurisdiction to be unavailable to an indemnified party with
respect to any losses, claims, damages or liabilities referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other
in connection with the Violation(s) that resulted in such loss, claim, damage or
liability, as well as any other relevant equitable considerations. The relative
fault of the indemnifying party and of the indemnified party shall be determined
by a court of law by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission to state a material
fact relates to information supplied by the indemnifying party or by the
indemnified party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission;
provided, that in no event shall any contribution by a Holder hereunder exceed
the net proceeds from the offering received by such Holder.

          (e) The obligations of the Company and Holders under this Section 2.9
shall survive completion of any offering of Registrable Securities in a
registration statement and the

                                      12
<PAGE>

termination of this Agreement. No Indemnifying Party, in the defense of any such
claim or litigation, shall, except with the consent of each Indemnified Party,
consent to entry of any judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party of a release from all liability in respect to such
claim or litigation.

     2.10  Assignment of Registration Rights. The rights to cause the Company to
register Registrable Securities pursuant to this Section 2 may be assigned by a
Holder to a transferee or assignee of Registrable Securities which (a) is a
subsidiary, parent, general partner, limited partner, retired partner, member or
retired member of a Holder, or is an affiliate or donee of such Holder,
including without limitations, any partnership or other entity of which any
affiliate of such Holder is a general partner or over which such Holder has
investment discretion, or any employee of any of the foregoing, (b) is a
Holder's family member or trust for the benefit of an individual Holder, or (c)
acquires at least ten percent (10%) of the Registrable Securities (as adjusted
for stock splits and combinations); provided, however, (i) the transferor shall,
within ten (10) days after such transfer, furnish to the Company 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 (ii) such
transferee shall agree to be subject to all restrictions set forth in this
Agreement.

     2.11 Amendment of Registration Rights. Any provision of this Section 2 may
be amended and the observance thereof 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 at least a majority in
interest of the Registrable Securities then outstanding; provided, however, that
if such amendment adversely affects the Registrable Securities held by a non-
consenting Holder in a manner different than that of a consenting Holder, then
such amendment or waiver shall require the consent of such adversely affected
non-consenting party; provided, further, that any waiver or amendment of this
Section 2.11 shall require the consent of all parties to this Agreement. Any
amendment or waiver effected in accordance with this Section 2.11 shall be
binding upon each Holder and the Company. By acceptance of any benefits under
this Section 2, Holders of Registrable Securities hereby agree to be bound by
the provisions hereunder.

     2.12  Limitation 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 Registrable Securities then outstanding, enter
into any agreement with any holder or prospective holder of any securities of
the Company that would grant such holder registration rights pari passu or
senior to those granted to the Holders hereunder.

     2.13 "Market Stand-Off" Agreement; Agreement to Furnish Information. Each
Holder hereby agrees (the "Lockup Agreement") that such Holder shall not sell,
transfer, make any short sale of, grant any option for the purchase of, or enter
into any hedging or similar transaction with the same economic effect as a sale,
any Common Stock (or other securities) of the Company held by such Holder (other
than those included in the registration) for a period specified by the
representative of the underwriters of Common Stock (or other securities) of the
Company not to exceed one hundred eighty (180) days following the effective date
of the Initial Offering registration statement of the Company filed under the
Securities Act (the "Lockup

                                      13
<PAGE>

Period"); provided that all officers and directors of the Company and all
holders of at least one percent (1%) of the Company's voting securities are
subject to similar restrictions or enter into similar agreements and such
agreements shall be applicable only to the Initial Offering. Notwithstanding the
foregoing, during the Lockup Period, a Holder may sell or transfer Common Stock
(or other securities) of the Company held by such Holder to affiliates and
donees; provided that such affiliates and donees shall agree to be subject to
all restrictions set forth in this agreement, including entering into a Lockup
Agreement as specified by the representatives of the underwriters of Common
Stock (or other securities).

     Each Holder, affiliate and donee agrees to execute and deliver such other
agreements as may be reasonably requested by the Company or the underwriter
which are consistent with the foregoing and which are necessary to give further
effect thereto. In addition, if requested by the Company or the representative
of the underwriters of Common Stock (or other securities) of the Company, each
Holder, affiliate and donee shall provide, within ten business (10) days of such
request, such information as may be required by the Company or such
representative in connection with the completion of any public offering of the
Company's securities pursuant to a registration statement filed under the
Securities Act.  The obligations described in this Section 2.13 shall not apply
to a registration relating solely to employee benefit plans on Form S-1 or Form
S-8 or similar forms that may be promulgated in the future, or a registration
relating solely to a Commission Rule 145 transaction on Form S-4 or similar
forms that may be promulgated in the future.  The Company may impose stop-
transfer instructions with respect to the shares of Common Stock (or other
securities) subject to the foregoing restriction until the end of said one
hundred eighty (180) day period;

     2.14 Rule 144 Reporting. With a view to making available to the Holders the
benefits of certain rules and regulations of the SEC which may permit the sale
of the Registrable Securities to the public without registration, the Company
agrees to use its best efforts to:

          (a) Make and keep public information available, as those terms are
understood and defined in SEC Rule 144 or any similar or analogous rule
promulgated under the Securities Act, at all times after the effective date of
the first registration filed by the Company for an 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 Exchange Act; and

          (c) So long as a Holder owns any Registrable Securities, furnish to
such Holder forthwith upon request: a written statement by the Company as to its
compliance with the reporting requirements of said Rule 144 of the Securities
Act, and of the Exchange Act (at any time after it has become subject to such
reporting requirements); a copy of the most recent annual or quarterly report of
the Company; and such other reports and documents as a Holder may reasonably
request in availing itself of any rule or regulation of the SEC allowing it to
sell any such securities without registration.

                                      14
<PAGE>

                                   SECTION 3

                           COVENANTS OF THE COMPANY

     3.1  Basic Financial Information and Reporting.

          (a) The Company will maintain true books and records of account in
which full and correct entries will be made of all its business transactions
pursuant to a system of accounting established and administered in accordance
with generally accepted accounting principles consistently applied, and will set
aside on its books all such proper accruals and reserves as shall be required
under generally accepted accounting principles consistently applied.

          (b) As soon as practicable after the end of each fiscal year of the
Company, and in any event within ninety (90) days thereafter, to the extent
requested by an Investor the Company will furnish each Investor a balance sheet
of the Company, as at the end of such fiscal year, and a statement of income and
a statement of cash flows of the Company, for such year, all prepared in
accordance with generally accepted accounting principles consistently applied
and setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail. Such financial statements shall be
accompanied by a report and opinion thereon by independent public accountants of
national standing selected by the Company's Board of Directors.

          (c) The Company will furnish each Investor, as soon as practicable
after the end of the first, second and third quarterly accounting periods in
each fiscal year of the Company, and in any event within forty-five (45) days
thereafter, to the extent requested by such Investor a balance sheet of the
Company as of the end of each such quarterly period, and a statement of income
and a statement of cash flows of the Company for such period and for the current
fiscal year to date, prepared in accordance with generally accepted accounting
principles, with the exception that no notes need be attached to such statements
and year-end audit adjustments may not have been made.

          (d) So long as an Investor (with its affiliates) shall own not less
than fifty percent (50%) of the Registrable Securities originally purchased
(subject to a minimum of 1,900,000 shares) (as adjusted for stock splits and
combinations) (a "Major Investor"), to the extent requested by such Major
Investor the Company will furnish each such Major Investor (i) at least thirty
(30) days prior to the beginning of each fiscal year an annual budget and
operating plans for such fiscal year (and as soon as available, any subsequent
revisions thereto); and (ii) as soon as practicable after the end of each month,
and in any event within twenty (20) days thereafter, a balance sheet of the
Company as of the end of each such month, and a statement of income and a
statement of cash flows of the Company for such month and for the current fiscal
year to date, including a comparison to plan figures for such period, prepared
in accordance with generally accepted accounting principles consistently
applied, with the exception that no notes need be attached to such statements
and year-end audit adjustments may not have been made.

     3.2  Inspection Rights.  Each Major Investor shall have the right to visit
and inspect any of the properties of the Company or any of its subsidiaries, and
to discuss the affairs,

                                       15
<PAGE>

finances and accounts of the Company or any of its subsidiaries with its
officers, and to review and request copies of such information as is reasonably
requested all at such reasonable times and as often as may be reasonably
requested; provided, however, that the Company shall not be obligated under this
Section 3.2 with respect to information which the Board of Directors determines
in good faith is confidential and should not, therefore, be disclosed.

     3.3  Confidentiality of Records.  Each Investor agrees to use, and to use
its best efforts to insure that its authorized representatives use, the same
degree of care as such Investor uses to protect its own confidential information
to keep confidential any information furnished to it which the Company
identifies as being confidential or proprietary (so long as such information is
not in the public domain), except that such Investor may disclose such
proprietary or confidential information to any partner, subsidiary or parent of
such Investor for the purpose of evaluating its investment in the Company as
long as such partner, subsidiary or parent is advised of the confidentiality
provisions of this Section 3.3.

     3.4  Reservation of Common Stock.  The Company will at all times reserve
and keep available, solely for issuance and delivery upon the conversion of the
Preferred Stock (as defined in the Company's Amended and Restated Certificate of
Incorporation), all Common Stock issuable from time to time upon such
conversion.

     3.5  Stock Vesting.  Unless otherwise approved by a majority of the
directors (including therein at least one of the two directors appointed by the
Investors), all stock options and other stock equivalents issued after the date
of this Agreement to employees, directors, consultants and other service
providers shall be subject to vesting as follows: (a) twenty-five percent (25%)
of such stock shall vest at the end of the first year following the earlier of
the date of issuance or such person's services commencement date with the
Company and (b) seventy-five percent (75%) of such stock shall vest monthly over
the remaining three (3) years; provided, however, that upon a Change in Control,
an additional six (6) months of service shall be credited to each optionee and
the number of vested stock options for such optionee shall be calculated based
on the aggregate months of service of such optionee (including such additional 6
months, and irrespective of any cliff vesting not yet achieved), and vesting
shall continue on a monthly basis thereafter. With respect to any shares of
stock purchased by any such person, the Company's repurchase option shall
provide that upon such person's termination of employment or service with the
Company, with or without cause, the Company or its assignee (to the extent
permissible under applicable securities laws and other laws) shall have the
option to purchase at cost any unvested shares of stock held by such person.

     3.6  Proprietary Information and Inventions Agreement.  The Company shall
require all employees and consultants to execute and deliver a Proprietary
Information and Inventions Agreement in substantially the form attached to the
Purchase Agreement, unless otherwise agreed by a majority of the Board of
Directors, including at least one of the two directors appointed by the
Investors.

     3.7  Directors' Liability and Indemnification; Expenses.  The Company's
Amended and Restated Certificate of Incorporation and Bylaws shall provide (a)
for elimination of the liability of directors to the maximum extent permitted by
law and (b) for indemnification of directors for acts on behalf of the Company
to the maximum extent permitted by law. The

                                       16
<PAGE>

Company shall reimburse expenses of members of the Board of Directors, and their
affiliates and employees, incurred in connection with meetings of the Board of
Directors any committee thereof and any other Company meeting.

     3.8  Qualified Small Business.  The Company will use reasonable efforts to
comply with the reporting and recordkeeping requirements of Section 1202 of the
Code, any regulations promulgated thereunder and any similar state laws and
regulations, and agrees not to repurchase any stock of the Company if such
repurchase would cause the Shares not to so qualify as "Qualified Small Business
Stock," so long as the Company's Board of Directors determines that it is in the
best interests of and not unduly burdensome to the Company to comply with the
provisions of Section 1202 of the Code. The Company further covenants to submit
to its stockholders and to state and federal taxation authorities such form and
filings as may be required to document such compliance, including the California
Franchise Tax Board Form 3565, Small Business Stock Questionnaire, with its
franchise or income tax return for the current income year.

     3.9  Insurance.  The Company will obtain promptly following the Closing and
maintain fire, casualty and other liability insurance policies with coverage
customary for companies similarly situated to the Company.

     3.10 Obligations of Management.  Except as approved by vote of a majority
of the Board of Directors, each officer shall devote one hundred percent (100%)
of his or her business time to the conduct of the business of the Company.

     3.11 International Joint Venture.  SOFTBANK Corp., a Series B Investor,
shall have a right of first refusal, directly or through one or more of its
affiliates, to participate in any joint venture relating to the Company's
operations outside the United States (excepting Japan), on substantially the
same terms and conditions as the Company offers or intends to offer to any
third-party. It is agreed that the Company shall receive an equity interest in
an entity formed or to be formed by SOFTBANK Corp. to operate a business in
Japan with a substantially similar business model to that of the Company, on
terms to be mutually agreed.

     3.12 Dissolution or Liquidation.  For so long as Ford holds at least
500,000 shares of Registrable Securities (as adjusted for any stock splits,
combinations, recapitalizations and the like occurring after the date hereof)
and has a contractual relationship with the Company, the Company may not undergo
any voluntary dissolution or liquidation without the prior written consent of
Ford. This provision may not be amended without the prior written consent of
Ford.

     3.13 Termination of Covenants.  All covenants of the Company contained in
Section 3 of this Agreement shall expire and terminate as to each Investor upon
the earlier of (i) the effective date of the registration statement pertaining
to the Initial Offering, which results in the Preferred Stock being converted
into Common Stock or (ii) upon the effective date of a Change of Control of the
Company.

                                       17
<PAGE>

                                   SECTION 4

                            RIGHTS OF FIRST REFUSAL

     4.1  Waiver of Right.  The Major Investors and Stockholders under the Prior
Agreement waive their Right of First Refusal, including any notice rights
pertaining thereto, under the Prior Agreement to purchase the shares of Series C
Preferred Stock being issued and sold under the Purchase Agreement. Such waiver
shall be effective upon the execution of this Agreement by (i) the Company, (ii)
the Major Investors who hold at least a majority of the Registrable Securities
held by all Major Investors and (iii) the Stockholders who hold at least a
majority of the Registrable Securities held by all Stockholders.

     4.2  Subsequent Offerings.  Each Major Investor and Stockholder shall have
a right of first refusal to purchase its pro rata share of all Equity Securities
(as defined below) that the Company may, from time to time, propose to sell and
issue after the date of this Agreement, other than the Equity Securities
excluded by Section 4.6 hereof. Each such Investor's or Stockholder's pro rata
share is equal to the ratio of (a) the number of shares of the Company's Common
Stock (including all shares of Common Stock issued or issuable upon conversion
of the Shares) which such Investor or Stockholder is deemed to be a holder
immediately prior to the issuance of such Equity Securities to (b) the total
number of shares of the Company's outstanding Common Stock (including all shares
of Common Stock issued or issuable upon conversion of the Shares or upon the
exercise of any outstanding warrants or options) immediately prior to the
issuance of the Equity Securities. The term "Equity Securities" shall mean (i)
any Common Stock, Preferred Stock or other security of the Company, (ii) any
security convertible, with or without consideration, into any Common Stock,
Preferred Stock or other security (including any option to purchase such a
convertible security), (iii) any security carrying any warrant or right to
subscribe to or purchase any Common Stock, Preferred Stock or other security or
(iv) any such warrant or right. To the extent Ford Motor Company ("Ford") has
the right to purchase shares of the Company pursuant to the Purchase Agreement,
such rights may not be amended nor waived without Ford's consent.

     4.3  Exercise of Rights.  If the Company proposes to issue any Equity
Securities, it shall give each Major Investor and Stockholder written notice of
its intention, describing the Equity Securities, the price and the terms and
conditions upon which the Company proposes to issue the same. Each Major
Investor and Stockholder shall have fifteen (15) days from the giving of such
notice to agree to purchase its pro rata share of the Equity Securities for the
price and upon the terms and conditions specified in the notice by giving
written notice to the Company and stating therein the quantity of Equity
Securities to be purchased. Notwithstanding the foregoing, the Company shall not
be required to offer or sell such Equity Securities to any Major Investor or
Stockholder who would cause the Company to be in violation of applicable federal
securities laws by virtue of such offer or sale.

     4.4  Sale Without Notice.  In lieu of giving notice to the Major Investors
and Stockholders prior to the issuance of Equity Securities as provided in
Section 4.2, the Company may elect to give notice to the Major Investors and
Stockholders within thirty (30) days after the issuance of Equity Securities.
Such notice shall describe the type, price and terms of the Equity Securities.
Each Major Investor and Stockholder shall have twenty (20) days from the date of

                                       18
<PAGE>

receipt of such notice to elect to purchase its pro rata share of Equity
Securities (as defined in Section 4.1, and calculated before giving effect to
the sale of the Equity Securities to the purchasers thereof at the price and
terms being offered). The closing of such sale shall occur within sixty (60)
days of the date of notice to the Major Investors and Stockholders.

     4.5  Termination and Waiver of Rights of First Refusal.  The rights of
first refusal established by this Section 4 shall not apply to, and shall
terminate upon the earlier of (i) effective date of the registration statement
pertaining to the Company's Initial Offering or (ii) the effective date of a
Change in Control of the Company. Notwithstanding Section 4.6 or anything else
herein to the contrary, the rights of first refusal established by this Section
4 may be amended, or any provision waived only with the written consent of the
(i) Major Investors holding a majority of the Registrable Securities held by all
Major Investors and (ii) in the event such proposed amendment or waiver
adversely impacts the Stockholders, Stockholders holding a majority of the
Registrable Securities held by all Stockholders; provided, however that Ford's
rights contained in this Section 4 may only be amended with the prior written
consent of Ford.

     4.6  Transfer of Rights of First Refusal.  The rights of first refusal of
each Major Investor and Stockholder under this Section 4 may be transferred to
the same parties, subject to the same restrictions as any transfer of
registration rights pursuant to Section 2.10.

     4.7  Excluded Securities.  The rights of first refusal established by this
Section 4 shall have no application to any of the following Equity Securities:

          (a) Shares of Common Stock (and/or options, warrants or other Common
Stock purchase rights issued pursuant to such options, warrants or other rights)
as adjusted for any stock dividends, combinations, splits, recapitalizations and
the like issued or to be issued after the Original Issue Date (as defined in the
Company's Amended and Restated Certificate of Incorporation), to employees,
officers or directors of, or consultants or advisors to the Company or any
subsidiary, pursuant to stock purchase or stock option plans or other
arrangements that are approved by the Board of Directors);

          (b) stock issued pursuant to any rights or agreements outstanding as
of the date of this Agreement, options and warrants outstanding as of the date
of this Agreement; and stock issued pursuant to any such rights or agreements
granted after the date of this Agreement; provided that the rights of first
refusal established by this Section 4 applied with respect to the initial sale
or grant by the Company of such rights or agreements;

          (c) any Equity Securities issued for consideration other than cash
pursuant to a merger, consolidation, acquisition or similar business combination
approved by the Board of Directors;

          (d) shares of Common Stock issued in connection with any stock split,
stock dividend or recapitalization by the Company;

          (e) shares of Common Stock issued upon conversion of the Shares;

                                       19
<PAGE>

          (f) any Equity Securities issued pursuant to any equipment leasing or
loan arrangement, or debt financing from a bank or similar financial or lending
institution approved by the Board of Directors;

          (g) any Equity Securities that are issued by the Company pursuant to a
registration statement filed under the Securities Act; and

          (h) shares of the Company's Common Stock or Preferred Stock issued in
connection with strategic transactions involving the Company and other entities,
including (i) joint ventures, manufacturing, marketing or distribution
arrangements or (ii) technology transfer or development arrangements; provided
that such strategic transactions and the issuance of shares therein, has been
approved by a majority of the Company's Board of Directors.

                                   SECTION 5

                                 MISCELLANEOUS

     5.1  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.

     5.2  Survival.  The representations, warranties, covenants, and agreements
made herein shall survive any investigation made by any Holder and the closing
of the transactions contemplated hereby. All statements as to factual matters
contained in any certificate or other instrument delivered by or on behalf of
the Company pursuant hereto in connection with the transactions contemplated
hereby shall be deemed to be representations and warranties by the Company
hereunder solely as of the date of such certificate or instrument.

     5.3  Successors and Assigns.  Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors, and administrators of the
parties hereto and shall inure to the benefit of and be enforceable by each
person who shall be a holder of Registrable Securities from time to time;
provided, however, that prior to the receipt by the Company of adequate written
notice of the transfer of any Registrable Securities specifying the full name
and address of the transferee, the Company may deem and treat the person listed
as the holder of such shares in its records as the absolute owner and holder of
such shares for all purposes, including the payment of dividends or any
redemption price.

     5.4  Entire Agreement.  This Agreement, the Exhibits and Schedules hereto,
the Purchase Agreement and the other documents delivered pursuant thereto
constitute the full and entire understanding and agreement between the parties
with regard to the subjects hereof and no party shall be liable or bound to any
other in any manner by any representations, warranties, covenants and agreements
except as specifically set forth herein and therein.

     5.5  Severability.  In the event one or more of the provisions of this
Agreement should, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provisions of this Agreement,

                                       20
<PAGE>

and this Agreement shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.

     5.6  Amendment and Waiver.

          (a) Except as otherwise expressly provided, this Agreement may be
amended or modified only upon the written consent of the Company and the holders
of at least a majority of the Registrable Securities; provided, however, that if
any amendment or modification has the effect of adversely affecting the
interests of a non-consenting party in a manner different than the interests of
the consenting parties, then such amendment or modification shall also require
the consent of the adversely affected non-consenting party.

          (b) Except as otherwise expressly provided, the obligations of the
Company and the rights of the Holders under this Agreement may be waived only
with the written consent of the holders of at least a majority of the
Registrable Securities; provided, however, that if any amendment or modification
has the effect of adversely affecting the interests of a non-consenting party in
a manner different than the interests of the consenting parties, then such
amendment or modification shall also require the consent of the adversely
affected non-consenting party.

     5.7  Delays or Omissions.  It is agreed that no delay or omission to
exercise any right, power, or remedy accruing to any Holder, upon any breach,
default or noncompliance of the Company under this Agreement shall impair any
such right, power, or remedy, nor shall it be construed to be a waiver of any
such breach, default or noncompliance, or any acquiescence therein, or of any
similar breach, default or noncompliance thereafter occurring. It is further
agreed that any waiver, permit, consent, or approval of any kind or character on
any Holder's part of any breach, default or noncompliance under the Agreement or
any waiver on such Holder's part of any provisions or conditions of this
Agreement must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this
Agreement, by law, or otherwise afforded to Holders, shall be cumulative and not
alternative.

     5.8  Notices.  All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the
party to be notified, (b) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient; if not, then on the next business
day, (c) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one (1) day after deposit with
a nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent to the party
to be notified at the address as set forth on the signature pages hereof or
Exhibits A, B, C and D hereto or at such other address as such party may
----------- -- -     -
designate by ten (10) days advance written notice to the other parties hereto.

     5.9  Attorneys' Fees.  In the event that any suit or action is instituted
to enforce any provision in this Agreement, the prevailing party in such dispute
shall be entitled to recover from the losing party all fees, costs and expenses
of enforcing any right of such prevailing party under or with respect to this
Agreement, including without limitation, such reasonable fees and expenses of
attorneys and accountants, which shall include, without limitation, all fees,
costs and expenses of appeals.

                                       21
<PAGE>

     5.10 Titles and Subtitles.  The titles of the sections and subsections of
this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

     5.11 Additional Investors.  Notwithstanding anything to the contrary
contained herein, if the Company shall issue additional shares of its Series C
Preferred Stock pursuant to the Purchase Agreement, any purchaser of such shares
of Series C Preferred Stock may become a party to this Agreement by executing
and delivering an additional counterpart signature page to this Agreement and
shall be deemed an "Investor" hereunder.

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

                                       22
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                              Company:

                              PeoplePC Inc.

                              By: /s/ NICHOLAS GROUF
                                  --------------------------------------
                                      Nicholas Grouf
                              Title:  Chief Executive Officer

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Stockholder:

                                    /s/ NICK GROUF
                                    --------------------------------------
                                    NICK GROUF

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                Access Technology Partners Brokers Fund, L.P.
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ THOMAS SZYMONIAK
                                   ------------------------------------------
                                     (Signature)

                                Name: Thomas Szymoniak
                                     ----------------------------------------
                                     (Print Name)

                                Title: Attorney-in-Fact
                                      ---------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                Access Technology Partners, L.P.
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ THOMAS SZYMONIAK
                                   ------------------------------------------
                                     (Signature)

                                Name: Thomas Szymoniak
                                     ----------------------------------------
                                     (Print Name)

                                Title: Attorney-in-Fact
                                      ---------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    Benake LP
                                    -------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ LYNN FORESTER
                                    -------------------------------------
                                        (Signature)

                                    Name: Lynn Forester
                                    -------------------------------------
                                        (Print Name)

                                    Title: General Partner
                                    -------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    Meredith Berger
                                    -------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ MEREDITH BERGER
                                    -------------------------------------
                                        (Signature)

                                    Name:
                                    -------------------------------------
                                        (Print Name)

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

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    Ford Motor Company
                                    -------------------------------------

                                    By: Kathryn S. Lamping
                                    -------------------------------------

                                    Title: Assistant Secretary
                                    -------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    Jon Grouf
                                    -------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ JON GROUF
                                    -------------------------------------
                                        (Signature)

                                    Name:
                                    -------------------------------------
                                        (Print Name)

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

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    H & Q PeoplePC Investors, L.P.
                                    -------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ JACKIE BERTERRECHE
                                    -------------------------------------
                                        (Signature)

                                    Name: Jackie Berterreche
                                    -------------------------------------
                                        (Print Name)

                                    Title: Attorney in Fact
                                    -------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    Hambrecht & Quist California
                                    -------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ THOMAS SZYMONIAK
                                    -------------------------------------
                                        (Signature)

                                    Name: Thomas Szymoniak
                                    -------------------------------------
                                        (Print Name)

                                    Title: Attorney-in-Fact
                                    -------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    H & Q Employee Venture Fund 2000, L.P.
                                    --------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ THOMAS SZYMONIAK
                                    --------------------------------------
                                        (Signature)

                                    Name: Thomas Szymoniak
                                    --------------------------------------
                                        (Print Name)

                                    Title: Attorney-in-Fact
                                    --------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                              Investor:

                              Jimmie Lee Hoagland/Jane Stanton Hitchcock
                              --------------------------------------------------
                                        (Print Name of Purchaser)

                              By: /s/ JIMMIE LEE HOAGLAND/JANE STANTON HITCHCOCK
                                  ----------------------------------------------
                                      (Signature)

                              Name:
                                  ---------------------------------------------
                                      (Print Name)

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

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    Donald M. Kendall, Jr.
                                    --------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ DONALD M. KENDALL, JR.
                                    --------------------------------------
                                        (Signature)

                                    Name: Donald M. Kendall, Jr.
                                    --------------------------------------
                                        (Print Name)

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

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    Maveron Equity Partners, L.P.
                                    --------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ DAN LEVITAN
                                    --------------------------------------
                                        (Signature)

                                    Name: Dan Levitan
                                    --------------------------------------
                                        (Print Name)

                                    Title: Managing Partner
                                    --------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    Robin Neustein
                                    --------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ ROBIN NEUSTEIN
                                    --------------------------------------
                                        (Signature)

                                    Name:
                                    --------------------------------------
                                        (Print Name)

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

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                             Investor:

                             NEXUS CAPITAL PARTNERS II, L.P.
                             ---------------------------------------------------
                                    (Print Name of Purchaser)

                             By: /s/ WILL WEATHERSBY
                                 -----------------------------------------------
                                     (Signature)

                             Name: Will Weathersby
                                   ---------------------------------------------
                                     (Print Name)

                            Title: Principal, Nexus Group, LLC - General Partner
                                   ---------------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    PPC Holdings, LLC
                                    ---------------------------------------
                                        (Print Name of Purchaser)

                                    By: /s/ MICHAEL J. PRICE
                                    ---------------------------------------
                                        (Signature)

                                    Name: Michael J. Price
                                    ---------------------------------------
                                        (Print Name)

                                    Title: General Partner - Class A Member
                                    ---------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    ROSEWOOD CAPITAL III, L.P.

                                    By: Rosewood Capital Associates, LLC,
                                        Its General partner

                                        By: /s/ ROBERT A. KELLER
                                           ----------------------------------
                                           Robert A. Keller, Managing Member

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    RVG IV, L.P.

                                    By: Rosewood Venture Associates IV, LLC,
                                        Its General partner

                                        By: /s/ ROBERT A. KELLER
                                           ----------------------------------
                                           Robert A. Keller, Managing Member

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                    Investor:

                                    RWD PARTNERS FUND, LLC

                                    By: /s/ SHAWN CONWAY
                                       -------------------------------------
                                       Shawn Conway, Chief Financial Officer

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                Sculley Brothers LLC
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ ARTHUR B. SCULLEY
                                   ------------------------------------------
                                     (Signature)

                                Name: Arthur B. Sculley
                                     ----------------------------------------
                                     (Print Name)

                                Title: Manager
                                      ---------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                Softbank Venture Capital
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ BRADLEY FELD
                                   ------------------------------------------
                                     (Signature)

                                Name: Bradley Feld
                                     ----------------------------------------
                                     (Print Name)

                                Title: Managing Member
                                      ---------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                Softbank Capital Partners LP
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ STEVEN J. MURRAY
                                   ------------------------------------------
                                     (Signature)

                                Name: Steven J. Murray
                                     ----------------------------------------
                                     (Print Name)

                                Title: Admin Member
                                      ---------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                Softbank Capital Advisors Fund LP
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ STEVEN J. MURRAY
                                   ------------------------------------------
                                     (Signature)

                                Name: Steven J. Murray
                                     ----------------------------------------
                                     (Print Name)

                                Title: Admin Member
                                      ---------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                Upendra Shardanand
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ UPENDRA SHARDANAND
                                   ------------------------------------------
                                     (Signature)

                                Name: Upendra Shardanand
                                     ----------------------------------------
                                     (Print Name)

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

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                WS Investment Company 2000A
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ NEIL WOLFF
                                   ------------------------------------------
                                     (Signature)

                                Name: Neil Wolff
                                     ----------------------------------------
                                     (Print Name)

                                Title: Partner
                                      ---------------------------------------

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE
<PAGE>

     In Witness Whereof, the parties hereto have executed this Investor Rights
Agreement as of the date set forth in the first paragraph hereof.

                                Investor:

                                Peter Zebroff
                                ---------------------------------------------
                                     (Print Name of Purchaser)

                                By: /s/ PETER ZEBROFF
                                   ------------------------------------------
                                     (Signature)

                                Name:
                                     ----------------------------------------
                                     (Print Name)

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

                AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
                                SIGNATURE PAGE<PAGE>

                                                                   EXHIBIT 10.10

                         CORPORATE CUSTOMER AGREEMENT

     This Corporate Customer Agreement (the "Agreement") is made effective as of
January 31, 2000 (the "Effective Date") by and between PeoplePC Inc., a Delaware
corporation having a place of business at 100 Pine Street, 11/th/ Floor, San
Francisco, California 94111 ("PeoplePC"), and Delta Air Lines, Inc., a Delaware
corporation having a place of business at 1030 Delta Blvd., Atlanta, Georgia
30320 ("Customer"). PeoplePC and Customer are referred to herein collectively as
the "Parties" and each individually as a "Party."

                                   Recitals

     A.   PeoplePC is engaged in the business of, among other things, providing
corporations with a customized Internet-access offering package (which may
include personal computer hardware and software, Internet access, extended
hardware service, customer support and promotional offers from third-party
merchants) for use by a corporation's employees (the "PeoplePC Corporate Plan").

     B.   Customer desires to make the PeoplePC Corporate Plan, excluding
connectivity services, which will be obtained by Customer separately, available
to its employees for use in connection with their employment by Customer.

     C.   PeoplePC and Customer desire to enter into a relationship whereby
Customer can offer the PeoplePC Corporate Plan to Employees as customized as set
forth herein.

                                   Agreement

                            Article I -- Definitions

As used in this Agreement:

     "Affiliate" means any individual, corporation, partnership, association, or
business that directly or indirectly through intermediaries, controls, is
controlled by or is under common control with a party. "Control", for the
purpose of this definition, shall mean an ownership, voting or similar interest
(including any right or option to obtain such an interest) representing at least
50% of the total interests then outstanding of the pertinent entity.

     "Connectivity Vendor" shall mean the company that provides Internet
connectivity (including, connectivity to Customer's VPN facility) to Employees
(as defined herein) for use with the Corporate Offering (as defined herein) (the
"Connectivity Services").

     "Corporate Offering" shall mean the combination of products and services
for Employees, as described in the Corporate Offering Description set forth in

Exhibit C ("Corporate Offering Description") hereto, as such exhibit shall be
---------
developed and refined as required by this Agreement and updated from time to
time by written agreement of the Parties. "Corporate Offering Website" means the
website whose home page is currently (as of the Effective Date) located at the
URL "[http://delta.peoplepc.com]", as such website may be modified or updated by
PeoplePC from time to time.

     "Customer Marks" means the trademarks, service marks, trade names, and
logos of Customer listed in Exhibit A-1 ("Customer Marks"), as such list may be
                            -----------
updated from time to time by Customer.

1

Confidential treatment has been requested with respect to the omitted portions
of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [*]. A complete version of
this exhibit has been filed separately with the Securities and Exchange
Commission.
<PAGE>

     "Employee" shall mean an employee of Customer or, as to those Affiliates
mutually agreed to by PeoplePC and Customer from time to time, an employee of
any such Affiliate.

     "Employee Service Term" shall have the meaning set forth in Exhibit C.
                                                                 ---------

     "Intellectual Property Rights" means all current and future worldwide
copyrights, trade secrets, patents and other patent rights, utility models,
moral rights, trademarks, trade names, service marks, and all other intellectual
property rights, including all applications and registrations with respect
thereto.

     "Launch Date" means the date on which the Corporate Offering and the
Connectivity Services are first made generally available to employees of
Customer.

     "Link" means a hypertext link, in a textual or graphical form, from one
website to another website.

     "Participating Employee" means an Employee who places an order for products
or services under the Corporate Offering.

     "Participating Employee Order" means the specific applicable information
provided to PeoplePC necessary for PeoplePC to process an order for an Employee
under the Corporate Offering, including, employee name, selection of computer
hardware/software packages, optional equipment, delivery address and, if
provided for in the Corporate Offering, credit card information.

     "PeoplePC Marks" means the trademarks, service marks, trade names, and
logos of PeoplePC listed in Exhibit A-2, as such list may be updated from time
                            -----------
to time by PeoplePC.

     "Target Dates" means the target dates listed in Exhibit B for completion of
                                                     ---------
various aspects of the work to be undertaken by the Parties pursuant to this
Agreement, as such list may be modified and updated from time to time by written
agreement of the Parties.

                        Article II - Corporate Offering

     2.1  Design and Development.  The Parties shall use good faith efforts to
design and develop their respective components of the Corporate Offering by the
applicable Target Dates.  It is understood and agreed that neither Party can
guarantee the results or success of these efforts, the Target Dates are subject
to change as circumstances warrant, and neither Party will have liability for
any change in the Target Dates, or any failure to complete any portion of this
work by the applicable Target Date, as long as such Party is using good faith,
commercially reasonable efforts to fulfill its responsibilities in performing
this work.  This work is expected to include, among other things, (a) the
elaboration of technical specifications and interfaces requires to implement the
Corporate Offering; (b) the interface and coordination with the Connectivity
Vendor; (c) the modification or adaptation of existing infrastructure to support
the Corporate Offering; (d) the development of technical and functional
specifications for such features, based on the specifications for the Corporate
Offering, when completed; and (e) the evaluation and testing of the Corporate
Offering until both Parties are satisfied with its quality and reliability and
suitability for general release.  Customer acknowledges that the geographic
availability of the Corporate Offering may be limited by the Connectivity
Vendor.  The Parties shall cooperate to plan and coordinate geographic roll-out.

2
<PAGE>

     2.2  Marketing and Applications. Customer shall provide promotional
literature to and shall actively solicit the participation of all current
Employees and future Employees in using the products and services available
through the Corporate Offering. Specifically, Customer shall (i) provide each
Non-Participating Employee with literature describing such products and
services, (ii) provide information meetings to all Non-Participating Employees
to explain such products and services and (iii) designate a program liaison to
its Employees and to PeoplePC, who shall be responsible for coordinating all
internal marketing of such products and services at the Customer. PeoplePC shall
provide a dedicated toll-free number and Internet application page for
processing Employee applications for such products and services and shall
cooperate with Customer in the development of descriptive literature,
informational displays and other marketing related marketing collateral (the
"Marketing Materials"). If required by the Corporate Offering, PeoplePC shall
confirm all equipment upgrade requests from employees with Customer prior to
shipment, unless Customer has pre-authorized such requests. During the first
year of the Term, Customer shall spend at least [*] on marketing expenses for
the Corporate Offering (including internal marketing expense and marketing
payments to other parties). Six months following the parties' satisfaction of
the contingencies set forth in Sections 2.5(c) and 2.5(d), the parties shall
measure the number of then-current Participating Employees, and Customer shall
be required to spend an additional amount on marketing expenses during the first
year of the Term equal to [*] minus the then-current number of Participating
Employees ([*] -- then-current number of Participating Employees)), up to a
maximum additional amount of [*]. During each subsequent year during the term,
Customer shall be required to spend a minimum of [*] per non-Participating
Employee on marketing expenses, up to a maximum [*].

     2.3  Terminating Employees. Customer shall promptly notify PeoplePC when
Participating Employees terminate employment with Customer (a "Terminating
Employee").  The Parties shall cooperate to develop a transition process under
the Corporate Offering for Terminating Employees and Customer shall remain
responsible for payments to PeoplePC related to such Employee through the end of
any applicable Employee Service Term (notwithstanding termination of employment
or this Agreement) until such transition is completed.  Customer shall cause the
Connectivity Vendor to terminate Internet Connectivity Services for Terminating
Employees. Customer shall remain responsible for payments to PeoplePC as
described in Exhibit C.
             ---------

     2.4  Launch Date and Supply Forecast.  The Parties shall cooperate to
establish a Launch Date, rollout schedule and rolling-demand forecast for the
Corporate Offering, all of which shall be based on and consistent with the
applicable Target Date and the availability of equipment and services from
third-party vendors (including the Connectivity Vendor).

     2.5  Provision of Corporate Offering.

          (a)  PeoplePC shall make available, manage, and provide the Corporate
Offering to Participating Employees throughout the Term, in substantial
accordance with the terms of this Agreement, Exhibit C, and the Service Level
Agreement, expect for those aspects of the Corporate Offering which the parties
determine to be the responsibility of Customer.  PeoplePC will have sole
responsibility for first-line customer support of Participating Employees for
the Corporate Offering and shall host and maintain the operation of the
Corporate Website (excluding any Customer or third-party Links therefrom).

3

*****Certain information on this page has been omitted and filed separately with
     the Securities and Exchange Commission. Confidential treatment has been
     requested with respect to the omitted portions.
<PAGE>

          (b)  PeoplePC shall be responsible for the management and coordination
of the delivery of the Corporate Offering, including the Connectivity Services.
Notwithstanding the foregoing, or anything to the contrary in the Agreement,
PeoplePC shall not be responsible for performance or non-performance of the
Connectivity Vendor's obligations to Customer.

          (c)  This Agreement shall be contingent on Customer and the
Connectivity Vendor entering into an agreement for Connectivity Services,
including relevant service level agreements, within thirty (30) days of the
Effective Date (the "Connectivity Agreement").    The Connectivity Agreement
will require the Connectivity Vendor to reasonably cooperate with PeoplePC in
the delivery of the Corporate Offering and in PeoplePC's coordination role.

          (d)  This Agreement shall be contingent upon a third party agreeing to
make a loan [to PeoplePC] on the basis of the Corporate Offering on terms
similar to the terms that a company with Delta's credit rating could obtain.

     2.6  Fees and Payment; Shipment and Delivery

          (a)  Development Costs.  Each party shall be responsible for its
respective costs associated with the design, development and deployment of the
Corporate Offering.

          (b)  Fees.  PeoplePC will send a monthly invoice for (i) the payments
required from Customer for the provision of the Corporate Offering at the rates
set forth in Exhibit D (including, without limitation, Monthly Payment, Shipping
             ---------
Charges and Upgrade Fees (unless PeoplePC has directly billed an Employee's
credit card for such amounts) and (ii) all payments then due to the Connectivity
Vendor for the provision of Connectivity Services (the "Connectivity Payment").
Customer shall not make Connectivity Payments directly to the Connectivity
Vendor but shall instead make all such payments to PeoplePC for the account of
the Connectivity Vendor. On receipt from Customer, PeoplePC shall pay to the
Connectivity Vendor all Connectivity Payments, without setoff or reduction for
any reason.  Such invoice shall be due and payable thirty (30) days after the
invoice date and, to the extent the invoice remains unpaid after the due date,
it shall accrue a late payment fee of 1.5% per month or the maximum rate allowed
by law, whichever is less.

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          (c)  Shipping. All products shall be shipped to the destination
indicated in the applicable order in accordance the terms of this Agreement.
Terms are EXW PeoplePC's original equipment manufacturer's distribution
facility. PeoplePC shall establish and conform to packaging standards which will
protect shipments in accordance with established industry practices.  PeoplePC
shall mark shipping containers or packages with the order number, contact
person, and address of the destination and the shipper applicable to a
particular Participating Employee Order. A complete packing list containing
order number, contact person, quantity of product, configuration and
specifications for products, date shipped, and requested destination shall be
enclosed with all shipments.

          (d)  Title; Risk of Loss.  Title to personal computer hardware
products and software media provided by PeoplePC under a Participating Employee
Order shall pass to Customer upon delivery [free of liens, encumbrances, and
claims of any type]. The risk of loss of such products shall remain with
PeoplePC until delivery to Customer, at the address specified in the
Participating Employee Order or other specified destination. As set forth in the
Corporate Offering, Customer or its Employees shall pay all freight and
insurance en route.

     2.7  Deliverables and Licenses.

          (a)  Customer Deliverables.  Customer will timely deliver to PeoplePC
those components and information specified in the Corporate Offering for
PeoplePC to develop, operate and maintain the Corporate Offering and to perform
its obligations hereunder (which may include, but not necessarily be limited to,
employee pre-registration information, employee lists, employee list updates and
employee application confirmation) (collectively, the "Customer Deliverables").
PeoplePC will have a non-exclusive, non-transferable, royalty-free, limited
license during the term of this Agreement to use and reproduce the Customer
Deliverables, solely for the purpose of PeoplePC's performing its obligations
hereunder. The Customer Deliverables will be considered Confidential Information
of Customer subject to the provisions of Section 3.2.  PeoplePC shall be excused
from performance of its obligations under this Agreement to the extent such
performance is prevented by Customer's failure to provide accurate Customer
Deliverables.

          (b)  PeoplePC Deliverables.  PeoplePC will timely deliver to Customer
those components and information specified in the Corporate Offering for
Customer to perform its obligations hereunder (collectively, the "People PC
Deliverables").  Customer will have a non-exclusive, non-transferable, royalty-
free, limited license during the term of this Agreement to use and reproduce the
PeoplePC Deliverables, solely for the purpose of Customer performing its
obligations hereunder. The PeoplePC Deliverables will be considered Confidential
Information of PeoplePC subject to the provisions of Section 3.2. Customer shall
be excused from performance of its obligations under this Agreement to the
extent such performance is prevented by PeoplePC's failure to provide accurate
Customer Deliverables.

     2.8  Warrant.  As soon as practicable, but in any event within ten (10)
business days after the Effective Date, PeoplePC shall issue to Customer a
warrant exerciseable for 250,000 shares of PeoplePC Common Stock at an exercise
price per share equal to $12.45 (subject to adjustment, for stock splits, stock
dividends, merger, reclassification and the like).   Such warrant shall vest
immediately upon issuance and (i) expire six (6) months after the Closing of the
initial public offering of the Company's common stock (the "IPO"), or three (3)
years after the Effective

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Date, whichever occurs first and (ii) contain a cash-less exercise feature if
the warrant is exercised at or after the IPO.

     2.9  Revenue-Sharing.  PeoplePC shall credit against any payments due from
Customer (i) [*] of the revenue recognized by PeoplePC from commerce activities
from Employees originating from the Corporate Offer of the Day (as described in
Exhibit C) and (ii) [*] of the revenue
---------
recognized by PeoplePC from Employees' participation in the Corporate Offering
Buyer's Club to the extent such revenue exceeds PeoplePC's expenses attributable
to such club and is fairly allocated to Customer in proportion to PeoplePC's
entire consumer and corporate customer base (including, without limitation,
maintenance, operational, marketing and promotional expenses).  For a period of
one year after the Effective Date (with the exception of Company A), should
PeoplePC  enter into a revenue-sharing arrangement that is economically more
favorable to any third-party corporate customer at comparable volume levels,
PeoplePC will make such terms available to Customer retroactive to the date such
terms were extended to such third-party corporate customer.

     2.10 Management Access.  PeoplePC will make its management available to
confer with Customer on other e-business issues as part of their overall
relationship, including discussions with the Chief Executive Officer and the
Director of Online Communications for website operations as Customer may
reasonably request from time to time.  PeoplePC will use good faith efforts to
provide introductions of Customer to Softbank portfolio companies as Customer
may reasonably request from time to time.

     2.11 Title. All products and services rendered by PeoplePC pursuant to this
agreement shall be deemed to be offered and delivered solely to Customer and
Customer shall be responsible for payment for all products and services of
Employees through the full service term.  Customer shall retain title to all
computer hardware products and software media delivered under the Corporate
Offering irrespective of whether these products are shipped directly to an
Employee. Notwithstanding the foregoing, title to, and responsibility for
payment for, peripherals and upgrades will be as set forth in the Corporate
Offering.

     2.12 Service Levels. Performance levels relating to the Corporate Offering,
including, but not limited to, those respecting order taking, fulfillment, and
end-user call center support for the Corporate Offering, shall be as mutually
agreed and set forth in a Service Level Agreement that will be incorporated as
                                                                            --
Exhibit G to this Agreement.  The Service Level Agreement shall also contain
---------
mutually-agreeable financial consequences for PeoplePC's failure to achieve
required service levels, once the number of Participating Employees exceeds
40,000. PeoplePC shall support and maintain the Corporate Offering at the
highest of the standard that it uses to support and maintains it general
consumer offering, other corporate offerings at comparable volumes, or the
standards required by this Agreement. PeoplePC shall not be responsible for
support of the Connectivity Vendor or the Connectivity Service, except as
specifically set forth in Exhibit G. The parties shall substantially achieve the
service level targets set forth in Exhibit E, or such other targets that the
                                   ---------
parties agree to from time to time.

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                             Article III - General

     3.1  Trademark License.

          (a)  Customer. Subject to the terms and conditions set forth in this
paragraph, Customer grants to PeoplePC a limited, non-exclusive, non-
transferable license during the term of this Agreement to use the Customer Marks
in connection with the marketing, operation, promotion and administration of the
Corporate Offering.  PeoplePC's use of the Customer Marks other than in
accordance with the Customer Trademark Usage Guidelines shall in each instance
be subject to Customer's prior written authorization and approval.   In
addition, PeoplePC will comply with Customer's then-current, trademark usage
guidelines or policies that Customer may furnish to PeoplePC in writing from
time to time concerning use of the Customer Marks (the "Customer Trademark Usage
Guidelines").  A copy of such guidelines presently in effect is set forth in

Exhibit E-1 attached hereto.  All use of the Customer Marks hereunder will inure
-----------
to the benefit of Customer.  Customer has and will retain exclusive ownership of
the Customer Marks, and PeoplePC will not contest or challenge, or do anything
inconsistent with, Customer's exclusive ownership of the Customer Marks.

          (b)  PeoplePC. Subject to the terms and conditions set forth in this
paragraph, PeoplePC grants to Customer a limited, non-exclusive, non-
transferable license during the term of this Agreement to use the PeoplePC Marks
in connection with the marketing, operation, promotion and administration of the
Corporate Offering. Customer's use of the PeoplePC Marks other than in
accordance with the PeoplePC Trademark Usage Guidelines shall in each instance
be subject to PeoplePC's prior written authorization and approval.   In
addition, Customer will comply with PeoplePC's then-current, trademark usage
guidelines or policies that PeoplePC may furnish to Customer in writing from
time to time concerning use of the PeoplePC Marks (the "PeoplePC Trademark Usage
Guidelines").  A copy of such guidelines presently in effect is set forth in

Exhibit E-2 attached hereto.  All use of the PeoplePC Marks hereunder will inure
-----------
to the benefit of PeoplePC.  PeoplePC has and will retain exclusive ownership of
the PeoplePC Marks, and Customer will not contest or challenge, or do anything
inconsistent with, PeoplePC's exclusive ownership of the PeoplePC Marks.

     3.2  Confidentiality

          (a)  Definition of Confidential Information.  For purposes of this
Agreement, "Confidential Information" of a Party means the information and
documents identified in this Agreement as confidential information of such
Party, as well as any and all other information (whether in writing or retained
as mental impressions) that (i) such Party considers to be confidential or
proprietary to its business (including trade secrets, technical information
relating to ongoing research and development, business strategies, marketing
plans, customer lists, and financial data).

          (b)  General Confidentiality Obligations.  Each Party agrees that it
will (i) not disclose the other Party's Confidential Information to any third
party (other than independent contractors as provided below); (ii) use the other
Party's Confidential Information only to the extent necessary to perform its
obligations or exercise its rights under this Agreement; (iii) disclose the
other Party's Confidential Information only to those of its employees and
independent contractors who need to know such information for purposes of this
Agreement and who are bound by confidentiality agreements containing terms no
less restrictive than those in this Section 3.2; and (iv) protect all
Confidential Information of the other Party from

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<PAGE>

unauthorized use, access, or disclosure in the same manner as it protects its
own confidential information of a similar nature, and in no event with less than
reasonable care.

          (c)  Exceptions. "Confidential Information" does not include
information the receiving Party can document (i)  was in the public domain at
the time it was communicated to the receiving Party by the disclosing Party;
(ii) entered the public domain after it was communicated to the receiving Party
by the disclosing Party through no fault of the receiving Party; (iii) was in
the receiving Party's possession free of any obligation of confidence at the
time it was communicated to the receiving Party by the disclosing Party; or (iv)
was developed by employees or agents of the receiving Party independently of and
without reference to any Confidential Information communicated to the receiving
Party by the disclosing Party.  In addition, Section 3.2(b) will not be
construed to prohibit any disclosure that is (A) necessary to establish the
rights of either Party under this Agreement, (B) required by applicable law or
(C) required by a valid court order or subpoena, provided that, in each case,
the Party required to make such disclosure notifies the other Party (whose
Confidential Information is to be disclosed) thereof promptly and in writing and
cooperates with the other Party if the other Party seeks to contest or limit the
scope of such disclosure.

          (d)  Terms of Agreement.  Neither Party will disclose the existence or
any terms of this Agreement to anyone other than its attorneys, accountants, and
other professional advisors, except (i) pursuant to a mutually acceptable press
release or otherwise approved by the other Party in writing; (ii) in connection
with a contemplated change of control of such Party or sale of such Party's
business (provided that any third party to whom the terms of this Agreement are
to be disclosed signs a confidentiality agreement reasonably satisfactory to the
other Party hereto before such disclosure is made); or (iii) as may be required
by law.

     3.3  Ownership of Intellectual Property Rights. As between Customer and
PeoplePC, ownership of the Intellectual Property Rights under this Agreement are
as follows.

          (a)  Customer will retain exclusive ownership of all Intellectual
Property Rights in the Customer Marks, the Customer Deliverables, and any
Customer contributions to the web pages in the Corporate Offering Website (the
"Customer Website Contributions") and any modifications, improvements,
enhancements, and derivatives made to or from any of the foregoing by either
Party in connection with this Agreement ("Customer's Intellectual Property
Rights").  Subject to any restrictions otherwise set forth in this Agreement,
Customer grants to PeoplePC a limited, non-exclusive, non-transferable license
during the term of this Agreement to use Customer's Intellectual Property Rights
in connection with the marketing, operation, promotion and administration of the
Corporate Offering.

          (b)  PeoplePC will retain exclusive ownership of all Intellectual
Property Rights in the PeoplePC Corporate Program and any generally applicable
aspects of the Corporate Offering, the Corporate Offering Website and the
Marketing Materials and any modifications, improvements, enhancements, and
derivatives made to or from any of the foregoing by either Party in connection
with this Agreement ("PeoplePC's Intellectual Property Rights"). Subject to any
restrictions otherwise set forth in this Agreement, PeoplePC grants to Customer
a limited, non-exclusive, non-transferable license during the term of this
Agreement to use PeoplePC's Intellectual Property Rights in connection with the
marketing, operation, promotion and administration of the Corporate Offering.

8
<PAGE>

          (c)  Each Party agrees to cooperate with the other Party in executing
and filing any documents and taking any other action necessary or reasonably
requested by the other Party in order to give effect to the foregoing allocation
of Intellectual Property Rights.

     3.4  Indemnification

     (a)  By Customer.  Customer will defend, at its own expense, all suits or
actions against PeoplePC brought by third parties, and indemnify and hold
PeoplePC harmless against costs and damages incurred, including reasonable
attorney's fees, based upon claims arising from (A) any use by PeoplePC of
Customer's Intellectual Property Rights in connection with the Corporate
Offering infringes the intellectual property rights of third parties, (B)
PeoplePC's use of the Customer Deliverables as permitted hereunder or (C)
Employee's or Customer's violation of any law, regulation, public policy or end
user agreement as permitted in connection with the Corporate Offering and
Customer will pay all amounts agreed to in a monetary settlement of such claims
and all damages awarded as a final judgment by a court of competent
jurisdiction. PeoplePC shall give Customer prompt written notice of the claim,
give Customer sole control of the defense and settlement of the claim, and
cooperate with Customer, at Customer's reasonable request and expense, in the
defense or settlement of the claim.  PeoplePC may, at its own expense,
participate in any such suit or action with counsel of its own choice.

     (b)  By PeoplePC.  PeoplePC will defend, at its own expense, all suits or
actions against Customer brought by third parties, and indemnify and hold
Customer harmless against costs and damages incurred, including reasonable
attorney's fees, based upon claims that (A) any use by Customer of PeoplePC's
Intellectual Property Rights as permitted in connection with the Corporate
Offering infringes the intellectual property rights of third parties, (B)
prohibited use by PeoplePC of the Customer Deliverables or (C) PeoplePC's
violation of any law, regulation, public policy or end user agreement in
connection with the Corporate Offering and PeoplePC will pay all amounts agreed
to in a monetary settlement of such claims and all damages awarded as a final
judgment by a court of competent jurisdiction. Customer shall give PeoplePC
prompt written notice of the claim, give PeoplePC sole control of the defense
and settlement of the claim, and cooperate with PeoplePC, at PeoplePC's
reasonable request and expense, in the defense or settlement of the claim.
Customer may, at its own expense, participate in any such suit or action with
counsel of its own choice.

     (c)  End-User Agreements. The parties shall work together to define in the
Corporate Offering those aspects of PeoplePC's end-user agreements which will be
applicable to Employees.

     3.5  Audit Rights.

          (a)  Each Party will keep complete and accurate records used to
determine the payments requested from the other Party hereunder or, in the case
of Customer, the amount of and payments by Customer attributed to the Minimum
Annual Marketing Commitment, for a period of at least three (3) years after any
such obligation accrues.  During the term of this Agreement and for two (2)
years thereafter, each Party will have the right to have an inspection and audit
of the other Party's relevant books and records (an "Audit") with respect
thereto.  The Party requiring an Audit shall be referred to as the Auditing
Party and the party that is the subject of such Audit shall be referred to as
the Audited Party.  An Audit shall be conducted by an independent audit
professional chosen by the Auditing Party (subject to the Audited Party's

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<PAGE>

reasonable acceptance) and paid by the Auditing Party, no more often than once
every twelve (12) months, during regular business hours at the Audited Party's
offices and in a manner that does not unduly interfere with the Audited Party's
business operations.  If, in the case of payments between the Parties, an Audit
reveals that the Audited Party has underpaid the amounts owed to the Auditing
Party, the Audited Party will promptly pay to the Auditing Party the amounts
underpaid.  If, in the case of payments between the Parties, an Audit reveals
that the Auditing Party has overpaid the amounts owed to the Audited Party, the
Audited Party will promptly reimburse the Auditing Party the amount overpaid.
In either event, but not with respect to Customer's marketing obligations, if
such audit indicates an overpayment by the Auditing Party or an underpayment by
the Audited Party of more than five percent (5%) of the actual amount determined
by such Audit, then the Audited Party shall reimburse the Auditing Party the
reasonable costs of such Audit.

          (b)  In addition, each Party shall have the right, upon at least seven
(7) days prior written notice, to audit (during regular business hours at the
other Party's offices and in a manner that does not unduly interfere with the
other Party's business operations) at the auditing party's sole expense the
other party's compliance with the confidentiality obligations under this
Agreement, at any time a Party has reasonable and credible evidence of the other
Party's violation of such obligations.

     3.6  Taxes.    Customer shall be responsible for the payment of any and all
sales, use, customs, excise, value added, ad valorem or other similar tax,
assessment, duty or similar governmental charge or fee chargeable on account of
any amounts from Customer to PeoplePC for the provision of goods, services or
facilities by PeoplePC to Customer pursuant to the Agreement, but excluding any
tax measured by the net or gross income or excess profits, receipts, capital,
franchise, net worth or business privilege of PeoplePC ("Taxes"). In
jurisdictions where PeoplePC is registered to collect sales and use taxes,
PeoplePC shall invoice Customer for applicable sales and use taxes, unless
Customer delivers to PeoplePC a valid exemption certificate prior to the
delivery of subject property.  Charges to Customer under this Agreement are
exclusive of Taxes; all such Taxes shall be separately stated on the invoice. If
a claim is made against PeoplePC for Taxes with respect to which Customer is
responsible for payment hereunder, PeoplePC will notify Customer immediately
upon receipt of said notice. If requested by Customer, PeoplePC shall, at
Customer's expense, take such action as Customer may reasonably direct with
respect to such asserted claim or permit Customer to contest in the name of
PeoplePC the validity, applicability or amount of such claim. If all or any part
of any Taxes are refunded or credited, PeoplePC shall repay Customer such part
thereof that were paid by Customer, including any interest received thereon.
Each party shall bear sole responsibility for all taxes, assessments and other
real property-related levies on its owned or leased property. The parties shall
cooperate in good faith to determine accurately each party's tax liability and
to minimize such liability to the extent legally permissible.  PeoplePC makes no
representation to Customer as to the tax consequences of the Corporate Offering
to Employees.

     3.7  Warranties

          (a)  Services.  PeoplePC warrants that all services it renders under
this Agreement shall be performed in a good and workmanlike and professional
manner, and in conformance with this Agreement, and that all personnel employed
by PeoplePC to perform such

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<PAGE>

services shall have the appropriate skill to enable them to perform their duties
in a workmanlike manner in accordance with then-current industry standards.

          (b)  Good Title. PeoplePC warrants that Customer will acquire good
title to the personal computer hardware products and software media distributed
by PeoplePC under a Participating Employee Order, free and clear of all liens
and security interests, as set forth in Section 2.6(d). PeoplePC represents and
warrants that it has the right to distribute to Customer the personal computer
hardware, third-party software, and third-party extended hardware service
contract, as applicable, under a Participating Employee Order.

          (c)  Product Warranties.  PeoplePC warrants that Customer will receive
all manufacturer's end user warranties, as set forth in the Corporate Offering,
for the personal computer hardware products and software titles distributed by
PeoplePC under a Participating Employee Order upon delivery of such products.

          (d)  Intellectual Property Rights. Each party warrants that it has the
     right to grant to the other party the license right granted under this
     Agreement to the granting party's intellectual property, including the
     party's marks.

          (e)  Disclaimers.  EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 3.7,
NEITHER PARTY MAKES ANY WARRANTIES TO THE OTHER PARTY, EXPRESS OR IMPLIED,
REGARDING SUCH PARTY'S PRODUCTS, SERVICES, DELIVERABLES, OR TECHNOLOGY, AND EACH
PARTY DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, AND NON-INFRINGEMENT WITH RESPECT TO THE FOREGOING.  IN
PARTICULAR, AND NOT BY WAY OF LIMITATION, NEITHER PARTY WARRANTS THAT ITS
COMPONENTS OF THE CORPORATE OFFERING WILL OPERATE ERROR-FREE OR WITHOUT
INTERRUPTION.

     3.8  Limitation of Liability; Insurance.

          (a)  Limitation of Liability.  NEITHER PARTY WILL BE LIABLE TO THE
OTHER PARTY FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL, OR SPECIAL DAMAGES,
INCLUDING LOST PROFITS, IN CONNECTION WITH THIS AGREEMENT.  NOTWITHSTANDING
ANYTHING CONTAINED HEREIN, EXCEPT FOR PAYMENTS OWED BY CUSTOMER TO PEOPLEPC, THE
TOTAL, CUMULATIVE LIABILITY OF EACH PARTY TO THE OTHER PARTY FOR ANY AND ALL
CLAIMS AND CAUSES OF ACTION ARISING FROM OR RELATING TO THIS AGREEMENT UNDER ANY
THEORY OF LIABILITY, WHETHER IN CONTRACT, IN TORT, OR OTHERWISE, WILL NOT EXCEED
[*] ([*]); PROVIDED HOWEVER, THAT THE FOREGOING LIMITATIONS OF LIABILITY SHALL
NOT APPLY IN THE EVENT OF: CLAIMS FOR BODILY INJURY (INCLUDING LOSS OF LIFE) OR
DAMAGE TO REAL PROPERTY OR TANGIBLE PERSONAL PROPERTY TO THE EXTENT CAUSED BY
THE NEGLIGENCE OR WILLFUL MISCONDUCT OF EITHER PARTY; EITHER PARTY'S
INDEMNIFICATION OBLIGATIONS AS TO THIRD PARTIES UNDER SECTION 3.4 OF THIS
AGREEMENT; OR BREACH BY EITHER PARTY OF THE CONFIDENTIALITY OBLIGATIONS SET
FORTH IN THIS AGREEMENT.

          (b)  Insurance. PeoplePC shall maintain throughout the term of this
Agreement: workers' compensation insurance with statutory limits and employer's
liability

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<PAGE>

insurance in an amount not less than $500,000; Comprehensive General Liability
insurance with a combined single limit for bodily injury and property damage of
not less than $5,000,000 per occurrence. All insurance policies shall be
primary, without contribution from any other insurance carried by the Customer.
All policies shall provide for contractual liability and shall include a
standard cross-liability clause or endorsement. Upon Customer's request,
PeoplePC shall provide Customer with a certificate evidencing this coverage,
naming the Customer as an additional insured (except for workers' compensation)
and providing not less than thirty (30) days prior written notice of
cancellation, termination or material change. PeoplePC's liability under this
Agreement shall not be limited by the amount or type of insurance required under
this paragraph.

     3.9  Term and Termination.

          (a)  The term of this Agreement will begin as of the Effective Date
and will continue for a period ending three (3) years after the Launch Date (the
"Term"). If PeoplePC chooses not to renew the Agreement at the end of the Term,
the Term shall be extended to the extent necessary to allow the completion of
all outstanding Employee Service Terms existing on the date they would otherwise
expire and the parties shall continue to comply with their obligations hereunder
until all Employee Service Terms have been completed, provided that Section 2.2
shall not apply during the extension period. If Customer chooses not to renew
the Agreement at the end of the Term, Customer shall have the option to: (a) pay
to PeoplePC the present value of all Monthly Payment obligations remaining as of
the expiration of the Term; or (b) extend the Term of the Agreement to the
extent necessary to allow the completion of all outstanding Employee Service
Terms existing on the date it would otherwise expire and the parties shall
continue to comply with their obligations hereunder until all Employee Service
Terms have been completed, provided that Section 2.2 shall not apply during the
extension period.

          (b)  Each Party will have the right to terminate this Agreement upon
written notice to the other Party if (i) the other Party has committed a
material breach of this Agreement, (ii) the other Party has not cured such
breach within thirty (30) days after receipt of written notice of such breach
from the other Party, and (iii) such breach remains uncured as of the effective
date of termination.

          (c)  Upon termination of this Agreement for any reason and upon
Customer's request, PeoplePC may convert any Participating Employees to general
PeoplePC members and any subsequent payments for service shall be made directly
by such users to PeoplePC.  Customer shall have no liability with respect to
such converted users that accrues after the date of such conversion.

          (d)  Upon termination of this Agreement for any reason (i) each Party
will promptly return all Confidential Information of the other Party, (ii)
Customer will pay all outstanding amounts owed to PeoplePC under this Agreement
within forty-five (45) days after the effective date of such termination,
subject to any right of setoff and (iii) the following provisions will
nonetheless remain in effect: Article I ("Definitions"), all of Article III
("General") (exception Section 3.1) and the payment obligations of Customer
under Section 2.6 with respect to any remaining portions of any Employee Service
Terms.

     3.10 Relationship of Parties.  Nothing in this Agreement will be construed
as creating any agency, partnership, or other form of joint enterprise between
the Parties.  Neither Party will

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have the authority to act or create any binding obligation on behalf of the
other Party, and neither Party will represent to any third party that it has the
authority to act or create any binding obligation on behalf of the other Party.
Nothing in this Agreement shall be construed to create an exclusive relationship
between the parties or prevent either party from entering into agreements or
providing or participating in programs, on similar or dissimilar terms, with any
other party.

     3.11 Notices.  All notices, consents, waivers, and other communications
intended to have legal effect under this Agreement must be in writing, must be
delivered to the other Party at the address set forth at the top of this
Agreement, attention: Chief Financial Officer, by personal delivery, certified
mail (postage pre-paid), or a nationally recognized overnight courier, and will
be effective upon receipt (or when delivery is refused). Each Party may change
its address for receipt of notices by giving notice of the new address to the
other Party.

     3.12 Governing Law.  This Agreement will be governed by and interpreted in
accordance with the laws of the State of California as such laws apply to
contracts made between California residents to be performed entirely within
California.  The United Nations Convention for the Sale of International Goods
will not apply to this Agreement.

     3.13 Injunctive Relief.  It is understood and agreed that, notwithstanding
any other provision of this Agreement, any breach of Section 3.2 by either Party
will cause irreparable damage for which recovery of money damages would be
inadequate, and that the non-breaching Party will therefore be entitled to seek
timely injunctive relief to protect such Party's rights under this Agreement in
addition to any and all remedies available at law.

     3.14 Waiver.  The failure of either Party to require performance by the
other Party of any provision of this Agreement will not affect the full right to
require such performance at any time thereafter; nor will the waiver by either
Party of a breach of any provision of this Agreement be taken or held to be a
waiver of the provision itself.

     3.15 Severability.  If any provision of this Agreement is unenforceable or
invalid under any applicable law or is so held by applicable court decision,
such unenforceability or invalidity will not render this Agreement unenforceable
or invalid as a whole, and such provision will be changed and interpreted so as
to best accomplish the objectives of such unenforceable or invalid provision
within the limits of applicable law or applicable court decisions.

     3.16 Assignment.  Neither this Agreement nor any rights or obligations of
either Party under this Agreement may be assigned in whole or in part without
the prior written consent of the other Party except in connection with a merger
or sale of all or substantially all of the business or assets of the assigning
Party.  Any attempted assignment in violation of the preceding sentence will be
void.  This Agreement will bind and inure to the benefit of the respective
successors and permitted assigns of the Parties.  Notwithstanding the foregoing,
nothing shall preclude either party from sub-contracting or out-sourcing any of
its obligations hereunder; provided, however that such sub-contracting or out-
sourcing shall not relieve the party sub-contracting or out-sourcing from any of
its obligations under this Agreement.

     3.17 Force Majeure.  Neither Party will be liable for any failure to
fulfill its obligations hereunder due to acts or omissions of government or
military authority, acts of God, general shortages of materials  and general
transportation delays that could not have been avoided through alternative
sources of supply or transport, earthquakes, fires, general power and
communications network failures, floods, labor disturbances (other than those by
PeoplePC's own employees or those of its contractors), riots, or wars, or other
similar causes beyond the

13
<PAGE>

reasonable control of a party and not the fault of a party or the fault of those
for whom a party is responsible.

     3.18 Full Power.  Each Party represents that it has full power to enter
into and perform this Agreement, and the person signing this Agreement on such
Party's behalf has been duly authorized and empowered to enter into this
Agreement.

     3.19 Construction.  The section headings appearing in this Agreement are
inserted only as a matter of convenience and in no way define, limit, construe,
or describe the scope or extent of such section or in any way affect this
Agreement.  Unless otherwise expressly stated, when used in this Agreement the
word "including" means "including but not limited to."

     3.20 Entire Agreement and Amendment.  This Agreement together with the
Exhibits completely and exclusively states the agreement of the Parties
regarding its subject matter.  It supersedes, and its terms govern, all prior
understandings, agreements, or other communications between the Parties, oral or
written, regarding such subject matter.  This Agreement may be executed in
counterparts (each of which will be deemed an original and all of which will be
deemed to be one instrument) and may be amended only in a document signed by
both Parties.

     3.21 Publicity. Neither party shall publish or use the other party's or
          ---------
such party's Affiliates' names, or its or their trademarks or product names in
any advertising, sales promotion (other than customer lists) or publicity matter
without the other's prior written approval.

     3.22 Export Control.  PeoplePC agrees to comply with all export control
          --------------
regulations in respect of shipment of products by PeoplePC to Customer outside
the United States.  Customer will reimburse PeoplePC for all reasonable fees
incurred by PeoplePC as a result of PeoplePC's compliance with the export
control regulations on Customer's behalf and at Customer's request.

     3.23 Supplier Performance.  PeoplePC will participate in Customer's
Supplier Performance Program (the "Program") which monitors, evaluates and
scores suppliers in accordance with Program objectives.  Should any part of the
Program conflict with the terms of this Agreement, this Agreement shall prevail.
Nothing in the Program shall be construed to affect either party's rights or
obligations under this Agreement.

     3.24 Supplier Diversity.  To the extent applicable, PeoplePC agrees to
include the provisions under FAR 52.219-8, "Utilization of a Small Business
Concerns and Small Disadvantaged Business Concerns," (if applicable) in all
subcontracts that offer further subcontracting opportunities.  All
subcontractors, except small business concerns, that receive contracts in excess
of $500,000 ($1,000,000 for construction) must adopt and comply with a plan
similar to the plan required by FAR 52.219-9, "Small Business and Disadvantaged
Business Subcontracting Plan." (FAR 19.704 (a) (4)).  For the purposes of this
Agreement and clause, PeoplePC shall not be deemed to be a subcontractor.

     3.25 Disputes.  The parties agree that all disputes arising out of or
relating to this Agreement shall be resolved in accordance with the Dispute
Resolution Procedures set forth in Exhibit F to this Agreement.
                                   ---------

14
<PAGE>

     In Witness Whereof, the Parties have executed this Corporate Customer
Agreement as of the Effective Date.

CUSTOMER:                                    PEOPLEPC:

DELTA AIR LINES, INC.                        PEOPLEPC INC.

By: /s/ M. Michele Burns                     By: /s/ Nick Grouf

Name: M. Michele Burns                       Name: Nick Grouf

Title: Vice President and Treasurer          Title: President

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<PAGE>

                                  Exhibit A-1

                                 Customer Marks

                          [to be provided by Customer]

16
<PAGE>

                                  Exhibit A-2

                                PeoplePC Marks

                         [to be provided by PeoplePC]

17
<PAGE>

                                   Exhibit B

                                 Target Dates

                          [to be mutually determined]

18
<PAGE>

                                   Exhibit C

                        Corporate Offering Description

                             Delta Air Lines, Inc.

 EMPLOYEE PACKAGES AND PRICING:

 Package A.  PC+ISP (excluding connectivity)

 Personal Computer Options (Minimum Specifications):

 Table 1:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
 PC Option 1 (Desktop) (2):                         PC Option 3 (Laptop):
--------------------------------------------------------------------------------
<S>                                <C>              <C>
 Monthly Payment: [*]                               Monthly Payment: [*]
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 OEM - Toshiba                                      Toshiba Model #PS210U-T2CW8
 366 MHz Celeron                                    Satellite 2100CDT
 64 MB Memory (1)                                   AMD
 6 GB Hard Drive                                    64 MB Memory
 Keyboard                                           4.3 GB HD
 Mouse                                              12.1 TFT
 1.44 MB floppy drive                               24x CD-ROM
 40x CD-ROM                                         56k modem
 15" monitor (diagonal)
 Speakers
 56k modem
 Tower Cabinet
--------------------------------------------------------------------------------
</TABLE>

 (1)  8 MB Video Ram shared from DRAM Memory

 (2)  PeoplePC will also develop a desktop product specification for another
 major vendor OEM personal computer package with competitive pricing and shall
 deliver a supplement to this Exhibit A containing the specification and pricing
 of such package to Customer prior to the Launch Date. Such supplement shall be
 deemed to be incorporated into this Exhibit A. Customer and PeoplePC will work
 together to modify the specifications and pricing levels of other personal
 computer options to be included in the Corporate Offering from time to time as
 appropriate.

 Standard Software and Hardware Support for Package A Systems:

<TABLE>
<CAPTION>

   Standard Software                  Service and Support
------------------------------------------------------------------------------------------
<S>                                   <C>
   Windows 98                         On-site parts and labor extended service warranty
   Quicken                            against hardware defects for the System Service Term
   MS Works
   Norton Antivirus
   Net2PhoneInternet telephony
   Connected data backup
   Windows Media Player
------------------------------------------------------------------------------------------
</TABLE>

19

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     the Securities and Exchange Commission. Confidential treatment has been
     requested with respect to the omitted portions.

<PAGE>

During the provisioning process PeoplePC will include MS Office as an upgrade
option at Employee's expense for Delta's current rate with Microsoft.

Package A does not include Connectivity Services, which shall be obtained by
Customer at Customer's additional expense.

Hardware Upgrades for Package A Systems:

Employees can request peripheral upgrades through the Corporate Offering
application process as follows:
     a.   Upgrade from 15" monitor to 17" monitor (diagonal measure) for an
          Upgrade Fee of [*]
     b.   Add Epson color printer (Model __________) for an Upgrade Fee of [*]

Package B. ISP-only (excluding connectivity)

For Employees that already have suitable computers, PeoplePC will provide a co-
branded ISP-only version of the Corporate Service (not including connectivity).
PeoplePC will provide the General Employee Services without a Personal Computer
for a Monthly Payment of [*].  Package B does not include the Connectivity
Services, which shall be obtained by Customer at Customer's additional expense.

a.   Pricing:

The Monthly Payment amounts set forth in this Exhibit A are the current amounts
PeoplePC expects to charge.  These amounts are subject to adjustment to reflect
changes in PeoplePC's financing costs directly attributable to hardware and
software provided in connection with the Corporate Offering, which changes are
more than 100 basis points from the rate that a company with Delta's credit
rating could obtain as of the Effective Date; provided, however, that the
Monthly Payment respecting any Employee order shall not change during the
applicable Employee Service Term.

Customer shall be obligated to pay a Monthly Payment corresponding to each
Package A or Package B ordered for each month in the thirty-six (36) period
commencing on the date the order is processed by PeoplePC (the "Employee Service
Term").  The Monthly Payment obligation shall accrue at the beginning of each
month in such period.  PeoplePC will provide the hardware and extended hardware
warranty packages per Package A system for the respective Employee Service Term.
PeoplePC will provide the General Employee Services for each Package A or
Package B system for the respective Employee Service Term.

The Monthly Payment does not include charges for Connectivity Services. Charges
from Connectivity Services are additional and will be borne directly by Delta
but shall be paid to the Connectivity Provider through PeoplePC.

20

*****Certain information on this page has been omitted and filed separately with
     the Securities and Exchange Commission. Confidential treatment has been
     requested with respect to the omitted portions.

<PAGE>

PeoplePC's standard Shipping Charge for a Package A system is [*] in the 48-
contiguous United States. Additional shipping charges related to the geographic
distribution of Delta's employees may also apply.  The Parties will cooperate to
attempt to lower shipping costs.

GENERAL EMPLOYEE SERVICES:

Customer Support:

PeoplePC will operate a 24 x 7 support desk for its general membership (except
issues related to VPN or second level of support for connectivity issues) which
Employees can access through a toll-free (48 states) telephone number provided
by PeoplePC. This call center processes support inquires for hardware (currently
provided both by Sykes International and OEM partners), software, registration,
Internet connectivity, and other membership-related issues.

PeoplePC will also provide a dedicated Delta support cell to respond to Delta
employee inquiries.  PeoplePC will support "warm transfers" to forward calls
regarding (i) the Delta VPN directly to the Connectivity Vendor subject to
agreement with the Connectivity Vendor and (ii) other Employee inquires to
appropriate Delta departments.

E-mail Service:

PeoplePC's e-mail service for each Employee will include at a minimum:
     .    2 e-mail addresses
     .    5 MB storage space per mailbox
     .    10 MB web hosting space
     .    Website building tools through Trellix

CORPORATE CUSTOMIZATIONS:

          a.   Placement of two Delta icons on the computer system Employee
               desktop:  Delta intranet (VPN) and Delta website (or other
               destination of Delta's choosing).  When one of these icons is
               clicked, the user will be dialed into the appropriate network and
               connected to the designated destination.

          b.   Permanent presence on the Welcome Page that launches whenever a
               customer dials into the Internet.  This will include a Delta
               content module linking to designated Delta content (e.g.
               benefits, company news, etc.) as well as one "offer of the day"
               banner on the lower right of the Welcome Page (the "Corporate
               Offer of the Day") for promotion of unique offers for Delta
               employees.  Control of this banner will be solely at the
               discretion of Delta.  PeoplePC will maintain control of an
               additional "offer of the day" banner and will promote offers to
               Delta employees.  Delta will have the right of refusal for
               placement of specific offers, such as those made by competitors,
               from being promoted by PeoplePC to Delta employees.

          c.   Placement of a Delta button on the Welcome Page that when clicked
               takes the user directly to the Delta website

21

*****Certain information on this page has been omitted and filed separately with
     the Securities and Exchange Commission. Confidential treatment has been
     requested with respect to the omitted portions.

<PAGE>

          e.   A dedicated keyboard button that links directly to the Delta
               intranet.  Delta recognizes that while PeoplePC shall use good
               faith efforts to load the keyboard button onto the Computers,
               conditions exist outside PeoplePC control, which may delay the
               loading of the keyboard button.

          f.   Placement of a Delta button on the top of the co-branded
               Microsoft/PeoplePC Internet browser that when clicked will link
               the user to the Deltaweb site

          g.   A co-branded Delta/My Yahoo! page as the default page for the
               Internet browser.  This default page will include a Delta content
               module in the page's top center section with relevant content
               links.

          h.   Access to general benefits provided by the PeoplePC Buyer's Club.
               Delta may exclude any merchants from display in Corporate
               Offering.

   Ongoing services provided as part of the Corporate Offering.  PeoplePC will
   provide the following services to Delta at no additional charge.

          .    Web and call-center based order provisioning

          .    Oversight of ordering and individual order fulfillment to Delta
               employees (e.g. individual ship-to's)

          .    A PeoplePC startup guide and Welcome Packet to assist in
               installation

          .    Consolidated monthly billing to Delta

     Incremental services provided as part of the Corporate Offering.  PeoplePC
     will provide the following services to Delta at no additional charge.

          .    Customization of various "real estate" throughout the consumer
               experience, including: Desktop, Welcome Page, Browser, Default
               Home Page, Keyboard

          .    Pre-loading of the software for customized software for the
               Corporate Program on computer systems

          .    Incremental account management resources dedicated to this
               program to manage implementation and provide overall program
               management

          .    Dedicated PeoplePC call center personnel to process Delta support
               inquiries.

22
<PAGE>

                                   Exhibit D

                          Corporate Offering Pricing

                                 See Exhibit C

23
<PAGE>

                                  Exhibit E-1

                         Customer Trademark Guidelines

                          [to be provided by Customer]

24
<PAGE>

                                  Exhibit E-2

                         PeoplePC Trademark Guidelines

                          [to be provided by PeoplePC]

25
<PAGE>

                                   Exhibit F

                          Call Center Support Targets

Call center:
[*]

26

*****Certain information on this page has been omitted and filed separately with
     the Securities and Exchange Commission. Confidential treatment has been
     requested with respect to the omitted portions.

<PAGE>

                                   Exhibit F

                           Dispute Resolution Process
                           --------------------------

1.   The parties agree, either with respect to the interpretation of any
provision of this Agreement, or with respect to the performance by PeoplePC or
by Customer hereunder, to resolve any such dispute by the procedure as specified
in this Exhibit. Upon the written request of either party, each of the parties
will appoint a designated representative who does not devote substantially all
of his or her time to performance under this Agreement, whose task it will be to
meet for the purpose of endeavoring to resolve such dispute. Such
representatives shall discuss the problem and negotiate in good faith in an
effort to resolve the dispute without the necessity of any formal proceeding
relating thereto.

2.   If the designated representatives do not resolve the dispute within five
(5) days after the date of the other party's receipt of a request to appoint a
designated representative as described in Section, then the dispute shall be
escalated to an Officer (Vice President or higher) of Customer and an Officer
(Vice President or higher) of PeoplePC, for their review and resolution within
five (5) days after the initial receipt of the request to appoint a designated
representative. If the dispute is not resolved by the parties' designated
Officers with five (5) days, then the matter shall be referred to Customer's
C.F.O. and PeoplePC's C.E.O., within ten (10) days, for a final resolution (or
final attempt at resolution) prior to the parties initiating formal proceedings.

3.   Notwithstanding anything to the contrary in this Section, at the end of
such ten (10) day period, if the Officer of PeoplePC and Officer of Customer
described in this Section, mutually agree, they shall have the authority to stay
the time periods set forth in this Section. If Customer's C.F.O. and PeoplePC's
C.E.O. cannot reach a mutually agreeable resolution of the dispute, then either
party may resort to litigation.

4.   Unless the Service Agreement with respect to which the dispute has arisen
has expired in accordance with its provisions or is terminated pursuant to the
Agreement, the parties agree to continue performing their respective obligations
under this Agreement and the applicable Service Level Agreement while the
dispute is being resolved [PeoplePC to review all SLA provisions]

27
<PAGE>

                                   Exhibit G

                            Service Level Agreement

                        [to be attached upon completion]

28

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