Document:

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                                                                   Exhibit 10.1A

                                REPLAYTV, INC.

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

     This Seventh Amended and Restated Investors' Rights Agreement (the
"Agreement") is entered into as of the 10th day of March, 2000, by and among
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ReplayTV, Inc., a California corporation (the "Company"), persons holding at
                                               -------
least a majority of the Registrable Securities under the Sixth Amended and
Restated Investors' Rights Agreement dated January 25, 2000 (the "Existing
                                                                  --------
Rights Agreement") (as "Registrable Securities" is defined under the Existing
----------------        ----------------------
Rights Agreement) (the "Prior Holders") and the Purchasers under the Series G
                        -------------
Preferred Stock Purchase Agreement (the "Series G Agreement") of even date
                                         ------------------
herewith (the "Series G Purchasers" and collectively with the Prior Holders, the
               -------------------
"Investors").
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                                   RECITALS

     WHEREAS, the Company wishes to raise additional capital by issuing Series G
Preferred Stock with the rights, privileges and preferences set forth in the
Seventh Amended and Restated Articles of Incorporation attached to the Series G
Agreement.

     WHEREAS, pursuant to Section 3.7 of the Existing Rights Agreement, the
Existing Rights Agreement may be amended by written consent of the holders of a
majority of the outstanding shares of the Registrable Securities and the
Company; and

     WHEREAS, a condition to the Series G  Purchasers' obligations under the
Series G Agreement is that the Company and the Investors enter into this
Agreement in order to provide the Series G Purchasers with (i) certain rights to
register shares of the Company's Common Stock issuable upon conversion of the
Series G Preferred Stock purchased by the Series G Purchasers, (ii) certain
rights to receive or inspect information pertaining to the Company, and (iii) a
right of first offer with respect to certain issuances by the Company of its
securities.  The Company and the Investors each desire to induce the Series G
Purchasers to purchase shares of Series G Preferred Stock pursuant to the Series
G Agreement by agreeing to the terms and conditions set forth herein.

     NOW, THEREFORE, the parties hereby agree that the Existing Rights Agreement
is amended and restated in its entirety as follows:

                                   AGREEMENT
                                   ---------

     1.   Registration Rights. The Company and the Investors covenant and agree
          -------------------
as follows:

               1.1  Definitions.  For purposes of this Section 1:
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                    (a)  The terms "register," "registered," and "registration"
                                    --------    ----------        ------------
refer to a registration effected by preparing and filing a registration
statement or similar document in
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compliance with the Securities Act of 1933, as amended (the "Act"), and the
                                                             ---
declaration or ordering of effectiveness of such registration statement or
document;

                    (b)  The term "Registrable Securities" means (i) the shares
                                   ----------------------
of Common Stock issuable or issued upon conversion of the Series A Preferred
Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred
Stock, Series E Preferred Stock (including any such shares of Series E Preferred
Stock that may be issued upon exercise of outstanding warrants to purchase
Series E Preferred Stock held by Imperial Bancorp (the "Warrant Stock")), Series
                                                        -------------
F Preferred Stock and Series G Preferred Stock (such shares of Common Stock are
collectively referred to hereinafter as the "Stock"); provided, however, that,
                                             -----    --------  -------
for the purposes of Sections 1.2, 1.4 or 1.13 hereof, the Warrant Stock (and the
Common Stock issuable upon conversion thereof) shall not be deemed Registrable
Securities or Stock and a holder of Warrant Stock shall not be deemed a Holder,
and (ii) any other shares of Common Stock of the Company issued as (or issuable
upon the conversion or exercise of any warrant, right or other security which is
issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of, the Stock; provided, however, that the foregoing
                                 --------  -------
definition shall exclude in all cases any Registrable Securities sold by a
person in a transaction in which his or her rights under this Agreement are not
assigned. Notwithstanding the foregoing, Common Stock or other securities shall
only be treated as Registrable Securities if and so long as they have not been
(A) sold to or through a broker or dealer or underwriter in a public
distribution or a public securities transaction, or (B) sold in a transaction
exempt from the registration and prospectus delivery requirements of the Act
under Section 4(1) thereof so that all transfer restrictions, and restrictive
legends with respect thereto, if any, are removed upon the consummation of such
sale;

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

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

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

                    (f)  The term "SEC" means the Securities and Exchange
                                   ---
Commission.

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

                    (a)  If the Company shall receive at any time after the
earlier of (i) February 1, 2003, or (ii) six (6) months after the effective date
of the first registration statement for a public offering of securities of the
Company (other than a registration statement relating either to the sale of
securities to employees of the Company pursuant to a stock option,

                                      -2-
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stock purchase or similar plan or an SEC Rule 145 transaction pursuant to which
the Company's securities are not listed on a national exchange or an over-the-
counter market), a written request from Holders of not less than 35% of the
Registrable Securities then outstanding that the Company file a registration
statement under the Act covering the registration of Registrable Securities with
an anticipated aggregate offering price, net of underwriting discounts and
commissions, of not less than $5,000,000, then the Company shall, within ten
(10) days of the receipt thereof, give written notice of such request to all
Holders and shall, subject to the limitations of subsection 1.2(b), use its best
efforts to effect as soon as practicable, and in any event within sixty (60)
days of the receipt of such request, the registration under the Act of all
Registrable Securities which the Holders request to be registered within twenty
(20) days of the mailing of such notice by the Company in accordance with
Section 3.5.

                    (b)  If the Holders initiating the registration request
hereunder ("Initiating Holders") intend to distribute the Registrable Securities
            ------------------
covered by their request by means of an underwriting, they shall so advise the
Company as a part of their request made pursuant to this Section 1.2 and the
Company shall include such information in the written notice referred to in
subsection 1.2(a). The underwriter will be selected by a majority in interest of
the Initiating Holders and shall be reasonably acceptable to the Company. In
such event, the right of any Holder to include his or her Registrable Securities
in such registration shall be conditioned upon such Holder's participation in
such underwriting and the inclusion of such Holder's Registrable Securities in
the underwriting (unless otherwise mutually agreed by a majority in interest of
the Initiating Holders and such Holder) to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall
(together with the Company as provided in subsection 1.5(e)) enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting by a majority in interest of the Initiating
Holders. Notwithstanding any other provision of this Section 1.2, if the
underwriter advises the Initiating Holders in writing that marketing factors
require a limitation of the number of shares to be underwritten, then the
Initiating Holders shall so advise all Holders of Registrable Securities which
would otherwise be underwritten pursuant hereto, and the number of shares of
Registrable Securities that may be included in the underwriting shall be
allocated among all Holders thereof, including the Initiating Holders, in
proportion (as nearly as practicable) to the amount of Registrable Securities
requested for inclusion in the registration by each Holder; provided, however,
                                                            --------  -------
that the number of shares of Registrable Securities to be included in such
underwriting shall not be reduced unless all other securities are first entirely
excluded from the underwriting.

                    In the event that the underwriter informs the Initiating
Holders that marketing factors require a reduction in the number of shares to be
underwritten of greater than 50% of the aggregate number of shares requested for
inclusion by the Initiating Holders, then a majority in interest of the
Initiating Holders may notify the Company and the underwriters in writing that
they elect to withdraw their request for registration, provided that such notice
                                                       --------
is given no later than 10 business days following the underwriter's written
notice of the reduction in the number of shares to be registered. In the event
of such withdrawal, the request for registration shall not be considered as a
request for registration for purposes of Sections 1.2(d) and 1.7(a).

                                      -3-
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                    (c)  Notwithstanding the foregoing, if the Company shall
furnish to Holders requesting a registration statement pursuant to this Section
1.2, a certificate signed by the President of the Company stating that in the
good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its shareholders for such registration
statement to be filed and it is therefore essential to defer the filing of such
registration statement, the Company shall have the right to defer such filing
for a period of not more than 90 days after receipt of the request of the
Initiating Holders; provided, however, that the Company may not utilize this
                    --------  -------
right more than once in any twelve-month period.

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

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

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

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

               1.3  Company Registration. If (but without any obligation to do
                    --------------------
so) the Company proposes to register (including for this purpose a registration
effected by the Company for shareholders other than the Holders) any of its
stock under the Act in connection with the public offering of such securities
solely for cash (other than a registration relating solely to the sale of
securities to participants in a Company stock plan or a transaction covered by
Rule 145 under the Act, a registration in which the only stock being registered
is Common Stock issuable upon conversion of debt securities which are also being
registered, or any registration on any form which does not include substantially
the same information as would be required to be included in a registration
statement covering the sale of the Registrable Securities), the Company shall,
at such time, promptly give each Holder written notice of such registration.
Upon the written request of each Holder given within twenty (20) days after
mailing of such notice by the Company in accordance with Section 3.5, the
Company shall, subject to the provisions of Section 1.8, cause to be registered
under the Act all of the Registrable Securities that each such Holder has
requested to be registered. If shares are withdrawn from the registration, the
Company shall then offer to all persons who have retained the right to include
securities in the registration the right to include additional securities in the
registration in an aggregate amount equal to the number of shares so withdrawn,
with such shares to be allocated among the persons requesting additional
inclusion in accordance with Section 1.8 hereof.

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               1.4  Form S-3 Registration. In case the Company shall receive
                    ---------------------
from any Holder or Holders of not less than 20% of the Registrable Securities
then outstanding a written request or requests that the Company effect a
registration on Form S-3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by such Holder or
Holders, the Company will:

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

                    (b)  as soon as practicable, effect such registration and
all such qualifications and compliances as may be so requested and as would
permit or facilitate the sale and distribution of all or such portion of such
Holder's or Holders' Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any other
Holder or Holders joining in such request as are specified in a written request
given within 15 days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this Section 1.4: (1) if
Form S-3 is not available for such offering by the Holders; (2) 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
$500,000; (3) if the Company shall furnish to the Holders a certificate signed
by the President of the Company stating that in the good faith judgment of the
Board of Directors of the Company, it would be seriously detrimental to the
Company and its shareholders 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
1.4; provided, however, that the Company shall not utilize this right more than
once in any twelve month period; (4) if the Company has, within the twelve (12)
month period preceding the date of such request, already effected two (2)
registrations on Form S-3 for the Holders pursuant to this Section 1.4; or (5)
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
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 but not more than sixty (60) days after the
receipt of such request. Registrations effected pursuant to this Section 1.4
shall not be counted as demands for registration or registrations effected
pursuant to Sections 1.2 or 1.3, respectively.

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

                    (a)  Prepare and file with the SEC a registration statement
with respect to such Registrable Securities and use its best efforts to cause
such registration statement

                                      -5-
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to become effective, and, upon the request of the Holders of a majority of the
Registrable Securities registered thereunder, keep such registration statement
effective for up to one hundred twenty (120) days, provided, however, that (1)
such 120-day period shall be extended for a period of time equal to the period
the Holder refrains from selling any securities included in such registration at
the request of the underwriter or the Company; (2) such 120-day period shall be
extended to the extent reasonably necessary to respond to or incorporate
comments provided by counsel to the Holders, as set forth below, and (3) in the
case of any registration of Registrable Securities on Form S-3 which are
intended to be offered on a continuous or delayed basis, such 120-day period
shall be extended, if necessary, to keep the registration statement effective
until all such Registrable Securities are sold, provided that Rule 415, or any
successor rule under the Securities Act, permits an offering on a continuous or
delayed basis. Prior to filing such registration statement or any amendment
thereto, if requested in writing by the Holders, the Company shall also deliver
copies of the registration statement to one special counsel designated by the
Holders and permit a reasonable opportunity for such counsel to provide comments
prior to filing.

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

                    (c)  Furnish to the Holders such numbers of copies of a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Act, and such other documents as they may reasonably request
in order to facilitate the disposition of Registrable Securities owned by them.
The Company shall also make available to the Holders copies of the registration
statement and any amendments thereto.

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

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

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

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

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

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

               1.6  Furnish Information. It shall be a condition precedent to
                    -------------------
the obligations of the Company to take any action pursuant to this Section 1
with respect to the Registrable Securities of any selling Holder that such
Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder's
Registrable Securities. The Company shall have no obligation with respect to any
registration requested pursuant to Section 1.2 or Section 1.4 of this Agreement
if, as a result of any Holder or Holders failing to provide the information set
forth in the preceding sentence, the number of shares or the anticipated
aggregate offering price of the Registrable Securities to be included in the
registration does not equal or exceed the number of shares or the anticipated
aggregate offering price required to originally trigger the Company's obligation
to initiate such registration as specified in subsection 1.2(a) or subsection
1.4(b)(2), whichever is applicable.

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

                    (a)  Demand Registration. All expenses other than stock
                         -------------------
transfer taxes and underwriting discounts and commissions incurred in connection
with registrations, filings or qualifications pursuant to Section 1.2, including
(without limitation) all registration, filing and qualification fees, printers'
and accounting fees, fees and disbursements of counsel for the Company, and the
reasonable fees and disbursements of one (1) counsel for the selling Holders
selected by them with the approval of the Company, which approval shall not be
unreasonably withheld, shall be borne by the Company; provided, however, that
the Company shall not be required to pay for any expenses of any registration
proceeding begun pursuant to Section 1.2 if the registration request is
subsequently withdrawn at the request of the Holders of a

                                      -7-
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majority of the Registrable Securities to be registered (in which case all
withdrawing Holders shall bear such expenses), unless (i) the Holders of a
majority of the Registrable Securities agree to forfeit their right to one (1)
demand registration pursuant to Section 1.2 (ii) the withdrawal is due to the
occurrence of a material adverse effect regarding the Company or its business
which was not known by the Initiating Holders prior to their request for
registration, (iii) the withdrawal is due to the Company exercising its right to
defer the registration pursuant to Section 1.2(c), Section 1.2(d)(ii) or Section
1.4(b)(3), or (iv) the Initiating Holders withdraw the registration following a
limitation by the underwriter in the number of shares to be underwritten
pursuant to Section 1.2(b).

                    (b)  Company Registration. The Company shall bear and pay
                         --------------------
all expenses incurred in connection with any registration, filing or
qualification of Registrable Securities with respect to the registrations
pursuant to Section 1.3 for each Holder (which right may be assigned as provided
in Section 1.12), including (without limitation) all registration, filing and
qualification fees, printers' and accounting fees relating or apportionable
thereto and the reasonable fees and disbursements of one (1) counsel for the
selling Holders selected by them with the approval of the Company, which
approval shall not be unreasonably withheld, but excluding stock transfer taxes
and underwriting discounts and commissions relating to Registrable Securities.

                    (c)  Registration on Form S-3. All expenses incurred in
                         ------------------------
connection with a registration requested pursuant to Section 1.4, including
(without limitation) all registration, filing, qualification, printers' and
accounting fees and the reasonable fees and disbursements of one counsel for the
selling Holder or Holders selected by them with the approval of the Company,
which approval shall not be unreasonably withheld, and counsel for the Company,
and any underwriters' discounts or commissions associated with Registrable
Securities, shall be borne, for the first two registrations pursuant to Section
1.4, by the Company, and for any registrations pursuant to Section 1.4
thereafter, pro rata by the Holder or Holders participating in the Form S-3
Registration.

               1.8  Underwriting Requirements.  In connection with any offering
                    -------------------------
involving an underwriting of shares of the Company's capital stock, the Company
shall not be required under Section 1.3 to include any of the Holders'
securities in such underwriting unless they accept the terms of the underwriting
as agreed upon between the Company and the underwriters selected by it (or by
other persons entitled to select the underwriters), and then only in such
quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If the total amount of
securities, including Registrable Securities and shares of Common Stock of the
Company with registration rights (if any), requested by shareholders to be
included in such offering exceeds the amount of securities sold other than by
the Company that the underwriters determine in their sole discretion is
compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including
Registrable Securities, which the underwriters determine in their sole
discretion will not jeopardize the success of the offering (the securities so
included to be apportioned pro rata among the selling shareholders according to
the total amount of securities entitled to be included therein owned by each
selling shareholder or in such other

                                      -8-
<PAGE>

proportions as shall mutually be agreed to by such selling shareholders) but in
no event shall (i) the amount of securities of the selling Holders included in
the offering be reduced below twenty-five percent (25%) of the total amount of
securities included in such offering, unless such offering is the initial public
offering of the Company's securities in which case the selling shareholders may
be excluded if the underwriters make the determination described above and no
other shareholder's securities are included or (ii) notwithstanding (i) above,
any shares being sold by a shareholder exercising a demand registration right
similar to that granted in Section 1.2 be excluded from such offering. For
purposes of the preceding provision concerning apportionment, for any selling
shareholder which is a holder of Registrable Securities and which is a
partnership or corporation, the partners, retired partners and shareholders of
such holder, or the estates and family members of any such partners and retired
partners and any trusts for the benefit of any of the foregoing persons shall be
deemed to be a single "selling shareholder," and any pro-rata reduction with
                       -------------------
respect to such "selling shareholder" shall be based upon the aggregate amount
of shares carrying registration rights owned by all entities and individuals
included in such "selling shareholder," as defined in this sentence. With
further regard to allocation, if any Holder or other selling shareholder does
not request inclusion of the maximum number of shares of Registrable Securities
and other shares of Common Stock with registration rights allocated to him
pursuant to the above-described procedure, the remaining portion of his
allocation shall be reallocated among those requesting Holders and other selling
shareholders whose allocation did not satisfy their requests pro rata on the
basis of the number of shares of Registrable Securities and other shares of
Common Stock with registration rights which would be held by such Holders and
other selling shareholders, assuming conversion, and this procedure shall be
repeated until all of the shares of Registrable Securities and other shares of
Common Stock with registration rights which may be included in the registration
on behalf of the Holders and other selling shareholders have been so allocated.

               1.9  Delay of Registration.  No Holder shall have any right to
                    ---------------------
obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 1.

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

                    (a)  To the extent permitted by law, the Company will
indemnify and hold harmless each Holder, each of such Holder's officers,
directors, partners and agents, any underwriter (as defined in the Act) for such
Holder and each person, if any, who controls such Holder or underwriter within
the meaning of the Act or the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), against any losses, claims, damages or liabilities (joint or
 ------------
several) to which they may become subject under the Act, the Exchange Act or
other federal or state law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
of the following statements, omissions or violations (collectively a
"Violation"): (i) any untrue statement or alleged untrue statement of a material
 ---------
fact contained in such registration statement, including any preliminary
prospectus or final prospectus contained therein or any amendments or
supplements thereto, (ii) the omission or

                                      -9-
<PAGE>

alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any
violation or alleged violation by the Company of the Act, the Exchange Act, any
state securities law or any rule or regulation promulgated under the Act, the
Exchange Act or any state securities law; and the Company will pay to each such
Holder, underwriter or controlling person, as incurred, any legal or other
expenses reasonably incurred by them in connection with investigating, defending
and settling any such loss, claim, damage, liability or action; provided,
however, that the indemnity agreement contained in this subsection 1.10(a) shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable in any such case for any such loss, claim, damage, liability
or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by any such Holder,
underwriter or controlling person.

                    (b)  To the extent permitted by law, each selling Holder
will indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, its agents, each person, if
any, who controls the Company within the meaning of the Act, any underwriter,
any other Holder selling securities in such registration statement and any
controlling person of any such underwriter or other Holder, against any losses,
claims, damages or liabilities (joint or several) to which any of the foregoing
persons may become subject, under the Act, the Exchange Act or other federal or
state law, insofar as such losses, claims, damages or liabilities (or actions in
respect thereto) arise out of or are based upon any Violation, in each case to
the extent (and only to the extent) that such Violation occurs in reliance upon
and in conformity with written information furnished by such Holder expressly
for use in connection with such registration; and each such Holder will pay, as
incurred, any legal or other expenses reasonably incurred by any person intended
to be indemnified pursuant to this subsection 1.10(b) in connection with
investigating, defending and settling any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained in this
subsection 1.10(b) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Holder, which consent shall not be unreasonably withheld;
provided, that, in no event shall any indemnity under this subsection 1.10(b)
exceed the net proceeds from the offering received by such Holder, except in the
case of willful fraud by such Holder.

                    (c)  Promptly after receipt by an indemnified party under
this Section 1.10 of notice of the commencement of any action (including any
governmental action) or the receipt of actual knowledge of any claim as to which
indemnity may be sought, such indemnified party will, if a claim for
indemnification in respect thereof is to be made against any indemnifying party
under this Section 1.10, deliver to the indemnifying party a written notice of
the commencement thereof, and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party (together with all other indemnified parties which may
be represented without conflict by one counsel) shall have the right to retain
one separate

                                      -10-
<PAGE>

counsel, with the reasonable fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by
the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party
represented by such counsel in such proceeding.  The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of
any such action, if prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under
this Section 1.10, but the omission so to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 1.10.

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

                    (e) Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

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

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

                    (a) make and keep public information available, as those
terms are understood and defined in SEC Rule 144, at all times following the
effective date of the first

                                      -11-
<PAGE>

registration statement under the Act filed by the Company for the offering of
its securities to the general public;

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

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

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

               1.12 Assignment of Registration Rights. The rights to cause the
                    ---------------------------------
assigned (but only with all related obligations) by a Holder to (i) any partner
or retired partner of any Holder that is a partnership, (ii) any member or
former member of any Holder that is a limited liability company, (iii) any
family member or trust or other entity primarily for the benefit of any
individual Holder (iv) any transferee or assignee that controls, is controlled
by or is under common control with any Holder that is a corporation or a limited
liability company (with "control" defined for the purposes of this Section 1.12
as beneficial ownership of voting securities that constitute at least 50% of the
voting power of the entity), or (v) a transferee or assignee of at least 100,000
shares (as appropriately adjusted for stock splits, stock dividends,
combinations and the like) of such securities, provided the Company is, within a
reasonable time after such transfer, furnished with written notice of the name
and address of such transferee or assignee and the securities with respect to
which such registration rights are being assigned; and provided, further, that
such assignment shall be effective only if immediately following such transfer
the further disposition of such securities by the transferee or assignee is
restricted under the Act. The provisions of Section 3.9 of this Agreement shall
govern for the purposes of determining the number of shares of Registrable
Securities held by a transferee or assignee; provided that all assignees and
transferees who would not qualify individually for assignment of registration
rights shall have a single attorney-in-fact for the purpose of exercising any
rights, receiving notices or taking any action under Section 1.

                                      -12-
<PAGE>

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

               1.14 "Market Stand-Off" Agreement. Each Holder hereby agrees
                     ---------------------------
that, during the period of duration (up to, but not exceeding, 180 days)
specified by the Company and an underwriter of Common Stock or other securities
of the Company, following the effective date of a registration statement of the
Company filed under the Act, it shall not, to the extent requested by the
Company and such underwriter, directly or indirectly sell, offer to sell,
contract to sell (including, without limitation, any short sale), grant any
option to purchase or otherwise transfer or dispose of (other than to donees who
agree to be similarly bound) any securities of the Company held by it at any
time during such period except Common Stock included in such registration;
provided, however, that:

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

                    (b) all officers and directors of the Company and all one-
percent (1%) securityholders are bound by and have entered into similar
agreements; and

                    (c) to the extent that the Company and the underwriter of
the Company's Common Stock or other securities of the Company releases any
Registrable Securities from the obligations of this Section 1.14, such release
shall apply on a pro-rata basis such that each Holder is entitled to release
from the restrictions imposed by this Section 1.14 that number of Registrable
Securities obtained by multiplying (i) the proportion of Registrable Securities
held by such Holder to the total number of Registrable Securities then
outstanding by (ii) the aggregate number of Registrable Securities released.

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

                                      -13-
<PAGE>

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

               1.15 Termination of Registration Rights. No Holder shall be
                    ----------------------------------
entitled to exercise any right provided for in this Section 1 after the earlier
of (i) five (5) years following the consummation of the sale of securities
pursuant to a registration statement filed by the Company under the Act in
connection with the initial firm commitment underwritten offering of its
securities to the general public, or (ii) such time as Rule 144 or another
similar exemption under the Act is available for the sale of all of such
Holder's shares during a three (3)-month period without registration.

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

               2.1  Delivery of Financial Statements. The Company shall deliver
                    --------------------------------
to each Investor holding not less than 200,000 shares of Registrable Securities
(as determined in accordance with Section 3.9 of this Agreement and as adjusted
for recapitalizations, stock splits, stock dividends and the like):

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

                    (b) as soon as practicable, but in any event within forty-
five (45) days after the end of each of the first three (3) quarters of each
fiscal year of the Company, an unaudited profit or loss statement, a statement
of cash flows for such fiscal quarter and an unaudited balance sheet as of the
end of such fiscal quarter; and

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

               2.2  Additional Information. As long as an Investor holds not
                    ----------------------
less than 200,000 shares of Registrable Securities (as determined in accordance
with Section 3.9 of

                                      -14-
<PAGE>

this Agreement), as adjusted for recapitalizations, stock splits, stock
dividends and the like, upon request, the Company will deliver the following
reports to such Investor:

               (a) as soon as practicable after the end of each fiscal month,
and in any event within thirty (30) days thereafter, an unaudited consolidated
balance sheet of the Company as at the end of such month, and unaudited
consolidated statements of income and unaudited consolidated statements of cash
flows for such month and for the current fiscal year to date. Such financial
statements shall be prepared in accordance with generally accepted accounting
principles consistently applied (other than accompanying notes), all in
reasonable detail and shall include a comparison against plan;

               (b) as soon as practicable, but in any event prior to the end of
each fiscal year, a budget for the next fiscal year, prepared on a monthly
basis, including balance sheets, income statements and statements of cash flows
for such months and, as soon as prepared, any other budgets or revised budgets
prepared by the Company;

               (c) such other information relating to the financial condition,
business, prospects or corporate affairs of the Company as the Investor or any
assignee of the Investor may from time to time reasonably request (including,
without limitation, making available copies of registration statements on Form
S-1 filed by the Company), provided, however, that the Company shall not be
obligated under this subsection (c) to provide information which it deems in
good faith to be a trade secret or similar confidential information.

          2.3  Inspection.  The Company shall permit each Investor who holds
               ----------
not less than 200,000 shares of Registrable Securities (as determined in
accordance with Section 3.9 of this Agreement and as adjusted for
recapitalizations, stock splits, stock dividends and the like), at such
Investor's expense, to visit and inspect the Company's properties, to examine
its books of account and records and to discuss the Company's affairs, finances
and accounts with its officers, all at such reasonable times as may be requested
by the Investor; provided, however, that the Company shall not be obligated
pursuant to this Section 2.3 to provide access to any information which it
reasonably considers to be a trade secret or similar confidential information.

          2.4  Termination of Information and Inspection Covenants.  The
               ---------------------------------------------------
covenants set forth in Sections 2.1, 2.2 and 2.3 shall terminate as to Investors
and be of no further force or effect upon the earlier of  (i) the consummation
of the Company's sale of its Common Stock in an underwritten public offering
pursuant to an effective registration statement filed under the Securities Act
or  (ii) the registration by the Company of a class of its equity securities
under Section 12(b) or 12(g) of the Exchange Act.

          2.5  Right of First Offer.  Subject to the terms and conditions
               --------------------
specified in this Section 2.5, the Company hereby grants to each Major Investor
(as hereinafter defined) a right of first offer with respect to future sales by
the Company of its Shares (as hereinafter defined).  For purposes of this
Section 2.5, a "Major Investor" shall mean any person who holds at least 200,000
                --------------
shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred
Stock, Series D Preferred Stock, Series E Preferred Stock, Series F Preferred
Stock  or

                                      -15-
<PAGE>

Series G Preferred Stock (or the Common Stock issued upon conversion thereof)
(as determined in accordance with Section 3.9 of this Agreement and as adjusted
for recapitalizations, stock splits, stock dividends and the like). A Major
Investor who chooses to exercise the right of first offer may designate as
purchasers under such right itself or its partners or affiliates in such
proportions as it deems appropriate.

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

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

                    (b) Within twenty (20) calendar days after delivery of the
Notice, the Major Investor may elect to purchase or obtain, at the price and on
the terms specified in the Notice, up to that portion of such Shares which
equals the proportion that the number of shares of Common Stock issued and held,
or issuable upon conversion and exercise of all convertible or exercisable
securities then held, by such Major Investor bears to the total number of shares
of Common Stock then outstanding (assuming full conversion and exercise of all
convertible or exercisable securities).  The Company shall promptly, in writing,
inform each Major Investor that purchases all the shares available to it (each,
a "Fully-Exercising Investor") of any other Major Investor's failure to do
   -------------------------
likewise.  During the ten (10)-day period commencing after receipt of such
information, each Fully-Exercising Investor shall be entitled to obtain that
portion of the Shares for which Major Investors were entitled to subscribe but
which were not subscribed for by the Major Investors that is equal to the
proportion that the number of shares of Common Stock issued and held, or
issuable upon conversion and exercise of all convertible or exercisable
securities then held, by such Fully-Exercising Investor bears to the total
number of shares of Common Stock then held by all Fully-Exercising Investors
(assuming full conversion and exercise of all convertible or exercisable
securities).

                    (c) The Company may, during the 45-day period following the
expiration of the period provided in subsection 2.5(b) hereof, offer the
remaining unsubscribed portion of the Shares to any person or persons at a price
not less than, and upon terms no more favorable to the offeree than those
specified in the Notice. If the Company does not enter into an agreement for the
sale of the Shares within such period, or if such agreement is not consummated
within sixty (60) days of the execution thereof, the right provided hereunder
shall be deemed to be revived and such Shares shall not be offered unless first
reoffered to the Major Investors in accordance herewith.

                    (d) The right of first offer in this paragraph 2.5 shall not
be applicable (i) to the issuance or sale of securities (or options therefor) to
employees, consultants or directors pursuant to plans or agreements approved by
the Board of Directors for the primary

                                      -16-
<PAGE>

purpose of soliciting or retaining their services, (ii) to the issuance of up to
100,000 shares of Common Stock to vendors of the Company, (iii) to the issuance
of securities in connection with strategic partnering arrangements approved by
the Board of Directors (iv) to or after consummation of a bona fide, firmly
underwritten public offering of shares of Common Stock registered under the Act
pursuant to a registration statement, (v) to the issuance of securities pursuant
to the conversion or exercise of convertible or exercisable securities
previously subject to, or exempt from, this Section 2.5, (vi) to the issuance of
securities in connection with a bona fide business acquisition of or by the
Company, whether by merger, consolidation, sale of assets, sale or exchange of
stock or otherwise, the terms of which are approved by the Board of Directors of
the Company, (vii) to the issuance of securities to financial institutions or
lessors in connection with commercial credit arrangements, equipment financings
or similar transactions, the terms of which are approved by the Board of
Directors of the Company, (viii) to the issuance or sale of the Series G
Preferred Stock or Common Stock issued upon conversion of the Preferred Stock,
(ix) to the issuance of securities that, with unanimous approval of the Board of
Directors of the Company (including a director elected by the holders of Series
D Preferred Stock), are not offered to any existing shareholder of the Company,
or (x) to stock splits, stock dividends or like transactions.

               2.6. Lock-Up Agreements.   The Company covenants that it will,
                    ------------------
subsequent to the Closing (as defined in the Series G Agreement), use its best
efforts to have all officers and directors of the Company, and all one-percent
(1%) securityholders, enter into lock-up agreements with Morgan Stanley & Co.
Incorporated, substantially in the form attached to the Series G Agreement as
Exhibit G.

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

               3.1  Successors and Assigns. Except as otherwise provided herein,
                    ----------------------
the terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties (including
transferees of any of the Preferred Stock or any Common Stock issued upon
conversion thereof). Nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations or liabilities under or
by reason of this Agreement, except as expressly provided in this Agreement.

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

               3.3  Counterparts.  This Agreement may be executed in two (2) or
                    ------------
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

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

                                      -17-
<PAGE>

               3.5  Notices.  Unless otherwise provided, any notice required or
                    -------
permitted by this Agreement shall be in writing and shall be deemed sufficient
upon delivery, when delivered personally or by overnight courier or sent by
telegram or confirmed fax, or (in the case of domestic recipients) five business
days after being deposited in the U.S. mail, as certified or registered mail,
with postage prepaid, and addressed to the party to be notified at such party's
address as set forth below or on Exhibit A hereto or as subsequently modified by
                                 ---------
written notice.

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

               3.7  Entire Agreement; Amendments and Waivers. This Agreement
                    ----------------------------------------
(including the Exhibits hereto) constitutes the full and entire understanding
and agreement between the parties with respect to the subjects hereof and
thereof. Any term of this Agreement may be amended and the observance of any
term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written
consent of the Company and the holders of a majority of the Registrable
Securities then outstanding. Any amendment or waiver effected in accordance with
this paragraph shall be binding upon each holder of any Registrable Securities
then outstanding, each future holder of all such Registrable Securities and the
Company, but in no event shall the obligations or rights of any Holder hereunder
be materially increased or decreased, as applicable, in a manner different from
all other Holders, except upon written consent of such Holder.

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

               3.9  Aggregation of Stock.  For the purpose of determining the
                    --------------------
availability of any rights under this Agreement, the number of shares of
Preferred Stock or Registrable Securities held by (i) affiliated entities or
persons, (ii) any partner or retired partner of any Holder or Investor that is a
partnership, (iii) any member or former member of any Holder or Investor that is
a limited liability company, or (iv) any family member or trust or other entity
primarily for the benefit of any individual Holder or Investor, shall be
aggregated together.

               3.10 Indemnification.  The Company will indemnify members of the
                    ---------------
Board of Directors to the broadest extent permitted by applicable law and will
indemnify each Investor for any claims brought against such Investor by any
third party (including any other shareholder of the Company) as a result of the
Company's Series E Preferred Stock financing, Series F Preferred Stock financing
or Series G Preferred Stock financing.

                                      -18-
<PAGE>

               3.11 Waiver of Right of First Offer. By execution of this
                    ------------------------------
Agreement below, the holders of the Company's Series A Preferred Stock, Series B
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E
Preferred Stock and Series F Preferred Stock, and each of them, hereby consent
to the issuance of the shares of Series G Preferred Stock to the Series G
Purchasers as contemplated by the Series G Agreement and waive any rights to
notice or to acquire shares of Series G Preferred Stock to which they may be
entitled, including but not limited to those provided in Section 2.5 of the
Existing Rights Agreement (such waiver intended to apply to all holders of
Registrable Securities under the Existing Rights Agreement).

               3.12 Waiver of Registration Rights for Proposed Initial Public
                    ---------------------------------------------------------
Offering.   By execution of this Agreement below, the Holders and each of them,
---------
hereby acknowledge that the Company is considering an underwritten initial
public offering of its Common Stock, which would involve the registration of a
certain number of shares of such Common Stock with the SEC (the "Proposed
                                                                 --------
Offering"), and hereby agree and consent (such agreement and consent intended to
--------
apply to all holders of Registrable Securities under this Agreement), provided
that the Proposed Offering is completed prior to June 30, 2000, to each of the
following matters:

                    (a) The Holder hereby elects not to register or sell any of
Holder's shares of Common Stock of the Company in connection with the Proposed
Offering;

                    (b) The Holder hereby agrees to waive any registration
rights and any notice requirements under Section 1.3 of this Agreement with
respect to, or arising out of the sale of, the shares of Common Stock proposed
to be offered by the Company in the Proposed Offering; and

                    (c) The Holder hereby agrees to waive any rights of first
offer and any notice requirements under Section 2.5 of this Agreement with
respect to, or arising out of the sale of, the shares of Common Stock proposed
to be offered by the Company in the Proposed Offering.

                           [Signature Page Follows]

                                      -19-
<PAGE>

     The parties have executed this Seventh Amended and Restated Investors'
Rights Agreement as of the date first above written.

COMPANY:                                     INVESTORS:

REPLAYTV, INC.
                                             __________________________________
                                             (Investor)

By: /s/ Earle H. LeMasters, III              By:_______________________________
    ---------------------------
    Earle H. LeMasters III,
    Chief Executive Officer                  Name:_____________________________
                                                   (print name of signatory)

    Address:
                                             Title:____________________________

1945 Charleston Road
Mountain View, CA 94043-1201
<PAGE>

                                   EXHIBIT A
                                   ---------

                               Series G Investors

<TABLE>
<CAPTION>
                Name/Address                   No. of Shares
                ------------                   -------------
<S>                                            <C>
News America Incorporated                         454,545
1211 Avenue of the Americas
New York, NY 10036
Attn: Janet Nova (Fax 212-852-7214)
      Steven Kuo (Fax 310-369-2443)

Adelphia Communications Corporation               454,545
One North Main Street
Coudersport, PA 16915
Attn: Colin Higgin
Facsimile:  814-274-6586
Chiggin@adelphia.net

Comcast Interactive Capital, LP                   454,545
1201 Market Street, Suite 2201
Wilmington, DE 19801
Telephone: 302-594-8700
Facsimile:  302-658-1600

Motorola, Inc.                                    272,727
Broadband Communications Sector
101 Tournament Drive
Horsham, PA 19044
Attn: Corporate Vice President and
      Director Business Development
      (Fax: 215-323-1111)
with a copy to General Counsel
  (Fax: 215-323-1300)

CSK Venture Capital Co., Ltd.                     454,545
7fl., Kenchiky-Kaikan Bldg., 5-6-20, Shiba,
Minato-ku, Tokyo 108, Japan
Telephone: 81-3-3457-5588
Facsimile: 81-3-3457-7070

With notice also to:
Sega of America Dreamcast, Inc.
650 Townsend Street
San Francisco, CA
Leonard Slootmaker
Facsimile: 415-701-6099
Slootml@sega.com
----------------

---------------------------------------------------------
TOTAL                                           2,090,907
</TABLE>
<PAGE>

                              Series A-F Investors

<TABLE>
<CAPTION>
       Name/Address                                        No. of Shares
       ------------                                        -------------
<S>                                                        <C>
Marc Andreessen or Michael Mohr, Trustees                  1,265,036  (Series C)
The Andreessen 1996 Living Trust,                             51,612  (Series D)
16615 Lark Avenue                                             26,667  (Series E)
Suite 101
Los Gatos, CA 95032

Benedek Family Trust dated 1/20/89                             5,333  (Series E)
c/o Peter Benedek
United Talent Agency
9560 Wilshire Blvd.
Beverly Hills, CA 90212

James Berkus                                                   5,333  (Series E)
United Talent Agency
9560 Wilshire Blvd.
Beverly Hills, CA 90212

Armyan Bernstein                                               6,667  (Series E)
c/o Tony LeWinter
LeWinter & Ross
16255 Ventura Blvd. Suite 600
Encino, CA 91436

Charles G. Betty                                               6,667  (Series E)
c/o Earthlink Network
3100 New York Drive
Pasadena, CA 91007

Kevin and Carol Bohren                                       645,160  (Series B)
P.O. Box 6632                                                395,324  (Series C)
Avon, CO 81620                                                51,612  (Series D)

Layne Leslie Britton                                           8,394  (Series E)
Replay Networks, Inc.
1945 Charleston Road
Mountain View, CA 94043-1201
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                                        No. of Shares
       ------------                                        -------------
<S>                                                        <C>
John Mark Box, Trustee                                       80,644  (Series B)
Mark Box Living Trust U/A 12/5/95
125 Fawn Lane
Portola Valley, CA 94028

J. David Cabello                                             46,666  (Series E)
18207 Theiss Mail Rt. Rd.
Spring, TX 77379

Catalyst Investments L.L.C.                               1,333,334  (Series E)
c/o Michael Dean
The Walt Disney Company
Vice President, Strategic Planning
500 S. Buena Vista Street
Burbank, CA 91521-0774

with a copy to:
   David K. Thompson
   The Walt Disney Company
   500 S. Buena Vista Street
   Burbank, CA 91521-0774

Gary Cosay                                                    5,333  (Series E)
United Talent Agency
9560 Wilshire Blvd.
Beverly Hills, CA 90212

CTV Inc.                                                    266,667  (Series E)
Attention:  Henry Eaton
9 Channel Nine Court
Scarborough, Ontario, Canada
M1S 4B5

with a copy to:  David Matlow (outside counsel)
 Goodman Phillips & Vineberg
 250 Yonge Street, Suite 2400
 Toronto, Ontario, Canada
 M5B 2M6
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                                      No. of Shares
       ------------                                      -------------
<S>                                                      <C>
Sky Dayton                                                 790,648  (Series C)
c/o Earthlink Network                                       13,333  (Series E)
3100 New York Drive
Pasadena, CA 91107

The Endeavor Agency                                         26,666  (Series E)
Ari Emanuel
cc:  Marty Adelstein
9701 Wilshire Blvd., 10th Floor
Beverly Hills, CA 90212

J. William Gurley                                          158,128  (Series C)
Benchmark Capital
2480 Sand Hill Road, Suite 200
Menlo Park, CA 94025

Kenneth B. Hertz                                             6,667  (Series E)
Hanson Jacobson Teller
450 N. Roxburty Drive 8th Floor
Beverly Hills, CA 90210

Tom Kartsotis                                              564,516  (Series B)
c/o Fossil Watch                                            26,667  (Series E)
2280 North Greenville
Richardson, TX 75082

Edward M. Kessler                                          453,470  (Series A)
14505 Arnerich Hill Road                                    80,644  (Series B)
Los Gatos, CA 95032                                         20,000  (Series E)

Anthony Kiedis                                              13,333  (Series E)
c/o Bill Vuylsteke
Provident Financial Management
10345 W. Olympic Blvd.
Los Angeles, CA 90064

KPCB Holdings Inc., as nominee                           7,870,968  (Series D)
2750 Sand Hill Road
Menlo Park, CA 94025
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                                      No. of Shares
       ------------                                      -------------
<S>                                                      <C>
Daniel J. Levin                                             13,333  (Series E)
Replay Networks, Inc.
1945 Charleston Road
Mountain View, CA 94043-1201

Liberty Media Corporation                                  533,334  (Series E)
c/o Joan Black
Sherman & Howard
633 Seventeenth Street, Suite 300
Denver, CO 80202

Matsushita-Kotobuki Electronics Industries               1,333,334  (Series E)
Ltd.                                                       909,091  (Series F)
Takuji Oishi
Mitsutomi Matsumoto
8-1 Furujin-machi, Takamatsu
Kagawa 760-0025
Japan
(Fax: 0897 53-5598)

with a copy to (outside counsel):
  Richard S. Millard
  Weil, Gotshal & Manges
  2882 Sand Hill Road
  Suite 280
  Menlo Park, CA 94025

Mark A. Medearis                                             7,906  (Series C)
Venture Law Group                                              933  (Series E)
2800 Sand Hill Road
Menlo Park, CA 94025

William Morris Agency, Inc.                                 33,333  (Series E)
Paul Bricault
cc:  Jerry Katzman
151 South El Camino Drive
Beverly Hills, CA 90212-2775
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                                      No. of Shares
       ------------                                      -------------
<S>                                                      <C>
Murdock Venture Partners                                  15,812   (Series C)
Attn.:  Claire Martell                                     4,667   (Series E)
2041 Mission College Blvd., Suite 159
Santa Clara, CA 95054

NBC Multimedia, Inc.                                     666,666   (Series E)

Aviv Nevo                                                 33,333   (Series E)
9440 Santa Monica Blvd. #600
Beverly Hills, CA 90210

Kevin O'Donnell                                           32,258   (Series D)
P.O. Box 10448                                            20,000   (Series E)
Beverly Hills, CA 90213

Guy Oseary                                                38,710   (Series D)
9348 Civic Center Drive                                   40,000   (Series E)
Beverly Hills, CA 90210

Ramsey Bierne Investment Partners, LLC                    20,000   (Series E)
c/o James H. Chung
Ramsey Beirne Associates, Inc.
500 Executive Blvd.
Ossining, NY 10562

Theodore H. Schell                                         6,667   (Series E)
c/o Sprint
2330 Shawnee Mission Parkway
Westwood, KS 66205

Showtime Networks, Inc.                                  266,667   (Series E)
Tom Hayden
1633 Broadway
New York, NY 10019

with a copy to:
  Viacom International Inc.
  1515 Broadway
  New York, NY 10036
  Attn:  General Counsel
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                              No. of Shares
       ------------                              -------------
<S>                                              <C>
Reed Slatkin                                        32,258  (Series D)
890 N. Kellogg Avenue
Santa Barbara, CA 93111

Robert W. Stearns                                  355,790  (Series C)
38 Palmer Woods Drive                               25,806  (Series D)
The Woodlands, TX 77381                             33,333  (Series E)

Nicholas Stevens                                     5,333  (Series E)
United Talent Agency
9560 Wilshire Blvd.
Beverly Hills, CA 90212

Time Warner Inc.                                 1,333,334  (Series E)
c/o Clarissa C. Weirich
4000 Warner Boulevard
Burbank, CA 91522

with a copy to: Kevin Tsujihara
  Warner Brothers
  4000 Warner Boulevard
  Burbank, CA 91522

Tribune Company                                    645,160  (Series D)
Attn.: Lisa Wiersma                                666,667  (Series E)
435 North Michigan Avenue, Suite 600
Chicago, IL 60610

with a copy to (inhouse counsel):
  Daniel G. Kazan
  Tribune Company
  435 N. Michigan Avenue Suite 600
  Chicago, IL 60611

United Television, Inc.                            266,667  (Series E)
c/o John Siegel
650 California Avenue
7th Floor
San Francisco, CA 94108
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                                   No. of Shares
       ------------                                   -------------
<S>                                                   <C>
VLG Investments 1998                                      7,906  (Series C)
Attn. Elias J. Blawie
Venture Law Group
2800 Sand Hill Road
Menlo Park, CA 94025

VLG Investments 1999                                      2,667  (Series E)
Attn: Elias J. Blawie
Venture Law Group
2800 Sand Hill Road
Menlo Par, CA 94025

James R. Von Her                                        645,160  (Series B)
c/o Zyvex LLC                                            25,806  (Series D)
251 W. Renner Parkway, Suite 166                         26,667  (Series E)
Richardson, TX 75080

Vulcan Ventures Incorporated                          1,290,322  (Series D)
Attn: Ed Harris / Scott Falls                           346,667  (Series E)
110--110/th/ Avenue, N.E.                               245,454  (Series F)
Suite 650
Bellevue, WA 98004-5862

Bill Vuylsteke                                            6,667  (Series E)
Provident Financial Management
10345 W. Olympic Blvd.
Los Angeles, CA 90064

Happy David Walters                                       6,667  (Series E)
Immortal Records
1650 21st Street
Santa Monica, CA 90404

Anthony J. Wood                                       2,040,600  (Series A)
                                                        241,934  (Series B)
                                                        158,128  (Series C)
                                                        103,226  (Series D)
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                                      No. of Shares
       ------------                                      -------------
<S>                                                      <C>
Donald R. Woodward and Annette M.                         10,000   (Series E)
Woodward, Trustees Under the Woodward
Family Trust dated 12/21/98
c/o Donald R. Woodward
610 Nandell Lane
Los Altos, CA 94024

Don Woodward                                              25,806   (Series D)
610 Nandell Lane
Los Altos, CA 94024

Barry Wood                                                 1,582   (Series C)

Donna Wood                                                 1,580   (Series C)

Grant Wood                                                 1,580   (Series C)

Lynn Wood                                                  1,582   (Series C)

Nicholas Wood                                              1,582   (Series C)

Jeremy Zimmer                                              5,333   (Series E)
United Talent Agency
9560 Wilshire Blvd.
Beverly Hills, CA 90212
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                                      No. of Shares
       ------------                                      -------------
<S>                                                      <C>
862686 Alberta Ltd.                                      454,545 (Series F)
Attn.: President
c/o Shaw Communications Inc.
Suite 900, 630 - 3/rd/ Avenue S.W.
Calgary, Alberta, Canada
T2P 4L4
Fax No.: 403-750-4506

copy to:
General Counsel and Secretary
Fax. No.: 403-750-7466

At Home Corporation                                      454,545 (Series F)
440 Broadway Street
Redwood City, CA 94063
Attn: General Counsel

copy to:
At Home Corporation
Mark Stevens
Executive Vice President,
Business Development
450 Broadway Street
Redwood City, CA 94063

Communicade Inc.                                         272,727 (Series F)
Attn.: Chief Financial Officer
c/o Omnicom Group Inc.
437 Madison Avenue
New York, NY 10022

Echostar                                                 909,090 (Series F)
5701 Santa Fe Drive
Littleton, CO 80120
Attn.: Mark Jackson
Ph.: 303-723-2600
Fax: 303-723-3902
Mark.jackson@echostar.com
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                                      No. of Shares
       ------------                                      -------------
<S>                                                      <C>
Grey Ventures, Inc.                                       90,909 (Series F)
777 3/rd/ Avenue
New York, NY 10017
Attn.: Lance Maerov

The Interpublic Group of Companies, Inc.                 272,727 (Series F)
1271 Avenue of the Americas
44/th/ Floor
New York, NY 10020
Attn: Nicholas Camera
Ph.: 212-399-8021
Fax: 212-399-8021
Gilbert Fuchsberg
Ph. 212-399-8134
Fax: 212-399-8285

Rogers Communications                                    454,544 (Series F)
c/o David Miller
333 Bloor Street East
Toronto Ontario
Canada
M4W1G9
Ph. 416-935-3546
Fax: 416-935-4600
Dmiller@rci.rogers.com

Scientific-Atlanta, Inc.                                 200,000 (Series F)
One Technology Parkway
Norcross, GA 30092
Attn.: Chris Arndt

Sharp Electronics Corporation                            454,545 (Series F)
P.O. Box 650
Sharp Plaza
Mahwah, NJ 07430-2135
Attention: Toshiyuki Tajima, Chairman of
the Board
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
       Name/Address                             No. of Shares
       ------------                             -------------
<S>                                             <C>
Universal Music Group, Inc.                     909,090 (Series F)
10 Universal City Plaza
Universal City, CA 91608
Attn.: President

Imperial Bancorp                                Warrant to Purchase 6,666 shares
2460 Sand Hill Road, Suite 102                  of Series E Preferred Stock
Menlo Park, CA 94025
</TABLE><PAGE>

                                                                    EXHIBIT 10.4

                                 REPLAYTV, INC.

                                1999 STOCK PLAN
                         (As Amended January 21, 2000)

     1.  Purposes of the Plan.  The purposes of this 1999 Stock Plan are to
         --------------------
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants and
to promote the success of the Company's business.  Options granted under the
Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined
by the Administrator at the time of grant of an Option and subject to the
applicable provisions of Section 422 of the Code and the regulations promulgated
thereunder.  Stock Purchase Rights may also be granted under the Plan.

     2.  Definitions.  As used herein, the following definitions shall apply:
         -----------

         (a) "Administrator" means the Board or its Committee appointed
              -------------
pursuant to Section 4 of the Plan.

         (b) "Affiliate" means an entity other than a Subsidiary (as defined
              ---------
below) in which the Company owns an equity interest or which, together with the
Company, is under common control of a third person or entity.

         (c) "Applicable Laws" means the legal requirements relating to the
              ---------------
administration of stock option and restricted stock purchase plans under
applicable U.S. state corporate laws, U.S. federal and applicable state
securities laws, the Code, any Stock Exchange rules or regulations and the
applicable laws of any other country or jurisdiction where Options or Stock
Purchase Rights are granted under the Plan, as such laws, rules, regulations and
requirements shall be in place from time to time.

         (d) "Board" means the Board of Directors of the Company.
              -----

         (e) "Change in Control" means a sale of all or substantially all of
              -----------------
the Company's assets, or a merger, consolidation or other capital reorganization
of the Company with or into another corporation; provided however that a merger,
consolidation or other capital reorganization in which the holders of more than
50% of the shares of capital stock of the Company outstanding immediately prior
to such transaction continue to hold (either by the voting securities remaining
outstanding or by being converted into voting securities of the surviving
entity) more than 50% of the total voting power represented by the voting
securities of the Company, or such surviving entity, outstanding immediately
after such transaction shall not constitute a Change in Control.

         (f) "Code" means the Internal Revenue Code of 1986, as amended.
              ----

         (g) "Committee" means one or more committees or subcommittees of the
              ---------
Board appointed by the Board to administer the Plan in accordance with Section 4
below.

         (h) "Common Stock" means the Common Stock of the Company.
              ------------

                                       1
<PAGE>

          (i) "Company" means ReplayTV, Inc., a California corporation.
               -------

          (j) "Consultant" means any person, including an advisor, who is
               ----------
engaged by the Company or any Parent, Subsidiary or Affiliate to render services
and is compensated for such services, and any director of the Company whether
compensated for such services or not.

          (k) "Continuous Service Status" means the absence of any interruption
               -------------------------
or termination of service as an Employee or Consultant.  Continuous Service
Status shall not be considered interrupted in the case of:  (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Administrator,
provided that such leave is for a period of not more than ninety (90) days,
unless reemployment upon the expiration of such leave is guaranteed by contract
or statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; or (iv) in the case of transfers between locations of the Company
or between the Company, its Parents, Subsidiaries, Affiliates or their
respective successors.  A change in status from an Employee to a Consultant or
from a Consultant to an Employee will not constitute an interruption of
Continuous Service Status.

          (l) "Corporate Transaction" means a sale of all or substantially all
               ---------------------
of the Company's assets, or a merger, consolidation or other capital
reorganization of the Company with or into another corporation.

          (m) "Director" means a member of the Board.
               --------

          (n) "Employee" means any person (including, if appropriate, any Named
               --------
Executive, officer or Director) employed by the Company or any Parent,
Subsidiary or Affiliate of the Company, with the status of employment determined
based upon such minimum number of hours or periods worked as shall be determined
by the Administrator in its discretion, subject to any requirements of the Code.
The payment by the Company of a director's fee to a Director shall not be
sufficient to constitute "employment" of such Director by the Company.

          (o) "Exchange Act" means the Securities Exchange Act of 1934, as
               ------------
amended.

          (p) "Fair Market Value" means, as of any date, the fair market value
               -----------------
of Common Stock as determined by the Administrator in good faith on such basis
as it deems appropriate and applied consistently with respect to Participants.
Whenever possible, the determination of Fair Market Value shall be based upon
the closing price for the Shares as reported in the Wall Street Journal for the
applicable date.

          (q) "Incentive Stock Option" means an Option intended to qualify as an
               ----------------------
incentive stock option within the meaning of Section 422 of the Code, as
designated in the applicable Option Agreement.

          (r) "Listed Security" means any security of the Company that is listed
               ---------------
or approved for listing on a national securities exchange or designated or
approved for designation as a national market system security on an interdealer
quotation system by the National Association of Securities Dealers, Inc.

                                      -2-
<PAGE>

          (s) "Named Executive" means any individual who, on the last day of the
               ---------------
Company's fiscal year, is the chief executive officer of the Company (or is
acting in such capacity) or among the four most highly compensated officers of
the Company (other than the chief executive officer).  Such officer status shall
be determined pursuant to the executive compensation disclosure rules under the
Exchange Act.

          (t) "Nonstatutory Stock Option" means an Option not intended to
               -------------------------
qualify as an Incentive Stock Option, as designated in the applicable Option
Agreement.

          (u) "Option" means a stock option granted pursuant to the Plan.
               ------

          (v) "Option Agreement" means a written document, the form(s) of which
               ----------------
shall be approved from time to time by the Administrator, reflecting the terms
of an Option granted under the Plan and includes any documents attached to or
incorporated into such Option Agreement, including, but not limited to, a notice
of stock option grant and a form of exercise notice.

          (w) "Option Exchange Program" means a program approved by the
               -----------------------
Administrator whereby outstanding Options are exchanged for Options with a lower
exercise price.

          (x) "Optioned Stock" means the Common Stock subject to an Option or a
               --------------
Stock Purchase Right.

          (y) "Optionee" means an Employee or Consultant who receives an Option.
               --------

          (z) "Parent" means a "parent corporation," whether now or hereafter
               ------
existing, as defined in Section 424(e) of the Code, or any successor provision.

          (aa) "Participant" means any holder of one or more Options or Stock
                -----------
Purchase Rights, or the Shares issuable or issued upon exercise of such awards,
under the Plan.

          (bb) "Plan" means this 1999 Stock Plan.
                ----

          (cc) "Reporting Person" means an officer, Director, or greater than
                ----------------
ten percent stockholder of the Company within the meaning of Rule 16a-2 under
the Exchange Act, who is required to file reports pursuant to Rule 16a-3 under
the Exchange Act.

          (dd) "Restricted Stock" means Shares of Common Stock acquired pursuant
                ----------------
to a grant of a Stock Purchase Right under Section 11 below.

          (ee) "Restricted Stock Purchase Agreement" means a written document,
                -----------------------------------
the form(s) of which shall be approved from time to time by the Administrator,
reflecting the terms of a Stock Purchase Right granted under the Plan and
includes any documents attached to such agreement.

          (ff) "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act,
                ----------
as amended from time to time, or any successor provision.

                                      -3-
<PAGE>

          (gg) "Share" means a share of the Common Stock, as adjusted in
                -----
accordance with Section 14 of the Plan.

          (hh) "Stock Exchange" means any stock exchange or consolidated stock
                --------------
price reporting system on which prices for the Common Stock are quoted at any
given time.

          (ii) "Stock Purchase Right" means the right to purchase Common Stock
                --------------------
pursuant to Section 11 below.

          (jj) "Subsidiary" means a "subsidiary corporation," whether now or
                ----------
hereafter existing, as defined in Section 424(f) of the Code, or any successor
provision.

          (kk) "Ten Percent Holder" means a person who owns stock representing
                ------------------
more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary.

     3.  Stock Subject to the Plan.  Subject to the provisions of Section 14 of
         -------------------------
the Plan, the maximum aggregate number of Shares that may be sold under the Plan
is 9,700,000 Shares of Common Stock, plus (i) up to an aggregate of 7,600,000
Shares that (a) return to the Company's 1997 Stock Option Plan upon cancellation
of outstanding options issued under that plan and (b) were Shares issued under
the 1997 Stock Option Plan that the Company repurchases when the holder thereof
terminates his or her service relationship with the Company, and (ii) an annual
increase on the first day of each of the Company's fiscal years beginning in
2001 through 2009 equal to the greater of  (x) 4,000,000 Shares, or (y) six
percent (6%) of the Shares outstanding on the last day of the immediately
preceding fiscal year.  Notwithstanding the above, the maximum aggregate number
of Shares that may be sold under the Plan during its term (as set forth in
Section 6 below) is 62,300,000 Shares.

     The Shares may be authorized, but unissued, or reacquired Common Stock.  If
an award should expire or become unexercisable for any reason without having
been exercised in full, or is surrendered pursuant to an Option Exchange
Program, the unpurchased Shares that were subject thereto shall, unless the Plan
shall have been terminated, become available for future grant under the Plan.
In addition, any Shares of Common Stock which are retained by the Company upon
exercise of an Option or Stock Purchase Right in order to satisfy the exercise
or purchase price for such Option or Stock Purchase Right or any withholding
taxes due with respect to such exercise or purchase shall be treated as not
issued and shall continue to be available under the Plan.  Shares issued under
the Plan and later repurchased by the Company pursuant to any repurchase right
which the Company may have shall not be available for future grant under the
Plan.

     4.  Administration of the Plan.
         --------------------------

         (a) General.  The Plan shall be administered by the Board or a
              -------
Committee, or a combination thereof, as determined by the Board.  The Plan may
be administered by different administrative bodies with respect to different
classes of Participants and, if permitted by the Applicable Laws, the Board may
authorize one or more officers to grant Options or Stock Purchase Rights to
Employees and Consultants.

                                      -4-
<PAGE>

          (b) Committee Composition.  If a Committee has been appointed pursuant
              ---------------------
to this Section 4, such Committee shall continue to serve in its designated
capacity until otherwise directed by the Board.  From time to time the Board may
increase the size of any Committee and appoint additional members thereof,
remove members (with or without cause) and appoint new members in substitution
therefor, fill vacancies (however caused) and remove all members of a Committee
and thereafter directly administer the Plan, all to the extent permitted by the
Applicable Laws and, in the case of a Committee administering the Plan in
accordance with the requirements of Rule 16b-3 or Section 162(m) of the Code, to
the extent permitted or required by such provisions.

          (d) Powers of the Administrator.  Subject to the provisions of the
              ---------------------------
Plan and in the case of a Committee, the specific duties delegated by the Board
to such Committee, the Administrator shall have the authority, in its
discretion:

              (i)    to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(p) of the Plan;

              (ii)   to select the Employees and Consultants to whom Options and
Stock Purchase Rights or any combination thereof may from time to time be
granted;

              (iii)  to determine whether and to what extent Options and Stock
Purchase Rights or any combination thereof are granted;

              (iv)   to determine the number of Shares of Common Stock to be
covered by each such award granted;

              (v)    to approve forms of agreement for use under the Plan;

              (vi)   to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder, which terms and
conditions include but are not limited to the exercise or purchase price, the
time or times when Options or Stock Purchase Rights may be exercised (which may
be based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Option,
Optioned Stock, Stock Purchase Right or Restricted Stock, based in each case on
such factors as the Administrator, in its sole discretion, shall determine;

              (vii)  to determine whether and under what circumstances an Option
may be settled in cash under Section 10(f) instead of Common Stock;

              (viii) to implement an Option Exchange Program on such terms and
conditions as the Administrator in its discretion deems appropriate, provided
however that no amendment or adjustment to an Option that would materially and
adversely affect the rights of any Optionee shall be made without the prior
written consent of the Optionee;

              (ix)   to determine the terms and restrictions applicable to Stock
Purchase Rights and the Restricted Stock purchased by exercising such Stock
Purchase Rights;

                                      -5-
<PAGE>

              (x)    to construe and interpret the terms of the Plan and awards
granted under the Plan, which constructions, interpretations, and decisions
shall be final and binding on all Participants; and

              (xi)   in order to fulfill the purposes of the Plan and without
amending the Plan, to modify grants of Options or Stock Purchase Rights to
Participants who are foreign nationals or employed outside of the United States
in order to recognize differences in local law, tax policies or customs.

     5.  Eligibility.
         -----------

         (a) Recipients of Grants.  Nonstatutory Stock Options and Stock
             --------------------
Purchase Rights may be granted to Employees and Consultants.  Incentive Stock
Options may be granted only to Employees, provided however that Employees of
Affiliates shall not be eligible to receive Incentive Stock Options.

         (b) Type of Option.  Each Option shall be designated in Option
             --------------
Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designations, to the extent that the aggregate
Fair Market Value of Shares with respect to which Options designated as
Incentive Stock Options are exercisable for the first time by any Optionee
during any calendar year (under all plans of the Company or any Parent or
Subsidiary) exceeds $100,000, such excess Options shall be treated as
Nonstatutory Stock Options.  For purposes of this Section 5(b), Incentive Stock
Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of the Shares subject to an Incentive Stock Option shall
be determined as of the date of the grant of such Option.

         (c) No Employment Rights.  The Plan shall not confer upon any
             --------------------
Participant any right with respect to continuation of an employment or
consulting relationship with the Company, nor shall it interfere in any way with
such Participant's right or the Company's right to terminate his or her
employment or consulting relationship at any time, with or without cause.

     6.  Term of Plan.  The Plan shall become effective upon its adoption by the
         ------------
Board.  It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 15 of the Plan.

     7.  Term of Option.  The term of each Option shall be the term stated in
         --------------
the Option Agreement; provided however that the term shall be no more than ten
(10) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement and provided further that, in the case of an
Incentive Stock Option granted to a person who at the time of such grant is a
Ten Percent Holder, the term of the Option shall be five (5) years from the date
of grant thereof or such shorter term as may be provided in the Option
Agreement.

     8.  Limitation on Grants to Employees.  Subject to adjustment as provided
         ---------------------------------
in Section 14 below, the maximum number of Shares that may be subject to Options
and Stock Purchase Rights granted to any one Employee under the Plan during a
single fiscal year of the Company shall be 5,000,000.

                                      -6-
<PAGE>

     9.  Option Exercise Price and Consideration.
         ---------------------------------------

         (a) Exercise Price.  The per Share exercise price for the Shares to be
             --------------
issued pursuant to exercise of an Option shall be such price as is determined by
the Administrator and set forth in the Option Agreement, but shall be subject to
the following:

             (i)   In the case of an Incentive Stock Option

                   (A) granted to an Employee who at the time of grant is a Ten
Percent Holder, the per Share exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of grant; or

                   (B) granted to any other Employee, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date
of grant.

             (ii)  In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be such price as is determined by the Administrator;
provided however that in the case of a Nonstatutory Stock option granted to a
person who, at the time of the grant of such Option, is a Named Executive of the
Company, the per Share Exercise Price shall be no less than 100% of the Fair
Market Value on the date of grant if such Option is intended to qualify as
performance-based compensation under Section 162(m) of the Code and if not so
intended shall be such price as is determined by the Administrator.

             (iii) Notwithstanding the foregoing, Options may be granted with a
per Share exercise price other than as required above pursuant to a merger or
other corporate transaction.

         (b) Permissible Consideration.  The consideration to be paid for the
             -------------------------
Shares to be issued upon exercise of an Option, including the method of payment,
shall be determined by the Administrator (and, in the case of an Incentive Stock
Option, shall be determined at the time of grant) and may consist entirely of
(1) cash; (2) check; (3) delivery of Optionee's promissory note with such
recourse, interest, security and redemption provisions as the Administrator
determines to be appropriate (subject, if applicable, to the provisions of
Section 153 of the Delaware General Corporation Law); (4) cancellation of
indebtedness; (5) other Shares that (x) in the case of Shares acquired upon
exercise of an Option either have been owned by the Optionee for more than six
months on the date of surrender (or such other period as may be required to
avoid a charge to the Company's earnings) or were not acquired, directly or
indirectly, from the Company, and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which the
Option is exercised; (6) delivery of a properly executed exercise notice
together with such other documentation as the Administrator and the broker, if
applicable, shall require to effect exercise of the Option and prompt delivery
to the Company of the sale or loan proceeds required to pay the exercise price
and any applicable withholding taxes; or (7) any combination of the foregoing
methods of payment.  In making its determination as to the type of consideration
to accept, the Administrator shall consider if acceptance of such consideration
may be reasonably expected to benefit the Company and the Administrator may
refuse to accept a particular form of consideration at the time of any Option

                                      -7-
<PAGE>

exercise if, in its sole discretion, acceptance of such form of consideration is
not in the best interests of the Company at such time.

     10.  Exercise of Option.
          ------------------

          (a)  General.
               -------

               (i)   Exercisability. Any Option granted hereunder shall be
                     --------------
exercisable at such times and under such conditions as determined by the
Administrator, consistent with the terms of the Plan, and reflected in the
Option Agreement, including vesting requirements and/or performance criteria
with respect to the Company and/or the Optionee. The Administrator shall have
the discretion to determine whether and to what extent the vesting of Options
shall be tolled during any unpaid leave of absence; provided that in the absence
of such determination, vesting shall be tolled during an unpaid leave.

               (ii)  Fractional Shares.  An Option may not be exercised for a
                     -----------------
fraction of a Share.

               (iii) Procedures for and Results of Exercise.  An Option shall be
                     --------------------------------------
deemed exercised when written notice of such exercise has been given to the
Company in accordance with the terms of the Option by the person entitled to
exercise the Option and the Company has received full payment for the Shares
with respect to which the Option is exercised.  Full payment may, as authorized
by the Administrator, consist of any consideration and method of payment
allowable under Section 9(b) of the Plan; provided that the Administrator may
refuse to accept any form of consideration if, at the time of exercise, the
Administrator determines in its sole discretion that acceptance of such form of
consideration is not in the best interests of the Company at that time.

     Exercise of an Option in any manner shall result in a decrease in the
number of Shares that thereafter may be available, both for purposes of the Plan
and for sale under the Option, by the number of Shares as to which the Option is
exercised.

               (iv)  Rights as Stockholder. Until the issuance (as evidenced by
                     ---------------------
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) of the Shares, no right to vote or receive
dividends or any other rights as a stockholder shall exist with respect to the
Optioned Stock, notwithstanding the exercise of the Option. No adjustment will
be made for a dividend or other right for which the record date is prior to the
date the stock certificate is issued, except as provided in Section 14 of the
Plan.

           (b) Termination of Employment or Consulting Relationship.  In the
               ----------------------------------------------------
event of termination of an Optionee's Continuous Service Status, such Optionee
may, but only within three (3) months (or such other period of time as is
determined by the Administrator, with such determination in the case of an
Incentive Stock Option being made at the time of grant of the Option) after the
date of such termination (but in no event later than the expiration date of the
term of such Option as set forth in the Option Agreement), exercise his or her
Option to the extent that the Optionee was entitled to exercise it at the date
of such termination.  To the extent that the Optionee was not entitled to
exercise the Option at the date of such termination, or if the

                                      -8-
<PAGE>

Optionee does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate. No termination shall be deemed to
occur and this Section 10(b) shall not apply if (i) the Optionee is a Consultant
who becomes an Employee; or (ii) the Optionee is an Employee who becomes a
Consultant.

          (c) Disability of Optionee.   Notwithstanding Section 10(b) above, in
              ----------------------
the event of termination of an Optionee's Continuous Service Status as a result
of his or her total and permanent disability (within the meaning of Section
22(e)(3) of the Code), Optionee may, but only within twelve (12) months (or such
other period of time as is determined by the Administrator, with such
determination in the case of an Incentive Stock Option made at the time of grant
of the Option) from the date of such termination (but in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), exercise the Option to the extent otherwise entitled to exercise it
at the date of such termination.  To the extent that Optionee was not entitled
to exercise the Option at the date of termination, or if Optionee does not
exercise such Option to the extent so entitled within the time specified herein,
the Option shall terminate.

          (d) Death of Optionee.  Notwithstanding Section 10(b) above, in the
              -----------------
event of the death of an Optionee during the period of Continuous Service Status
since the date of grant of the Option, or within thirty (30) days following
termination of Optionee's Continuous Service Status, the Option may be
exercised, at any time within twelve (12) months (or such other period of time
as is determined by the Administrator, with such determination in the case of an
Incentive Stock Option made at the time of grant of the Option) following the
date of death (but in no event later than the expiration date of the term of
such Option as set forth in the Option Agreement), by Optionee's estate or by a
person who acquired the right to exercise the Option by bequest or inheritance,
but only to the extent of the right to exercise that had accrued at the date of
death or, if earlier, the date of termination of Optionee's Continuous Service
Status.  To the extent that Optionee was not entitled to exercise the Option at
the date of death or termination, as the case may be, or if the person entitled
to exercise the Option does not exercise such Option to the extent so entitled
within the time specified herein, the Option shall terminate.

          (e) Extension of Exercise Period.  The Administrator shall have full
              ----------------------------
power and authority to extend the period of time for which an Option is to
remain exercisable following termination of an Optionee's Continuous Service
Status from the periods set forth in Sections 10(b), 10(c) and 10(d) above or in
the Option Agreement to such greater time as the Administrator shall deem
appropriate, provided that in no event shall such Option be exercisable later
than the date of expiration of the term of such Option as set forth in the
Option Agreement.

          (f) Buyout Provisions.  The Administrator may at any time offer to buy
              -----------------
out for a payment in cash or Shares an Option previously granted under the Plan
based on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

     11.  Stock Purchase Rights.
          ---------------------

          (a) Rights to Purchase.  After the Administrator determines that it
              ------------------
will offer Stock Purchase Rights under the Plan, it shall advise the offeree in
writing of the terms,

                                      -9-
<PAGE>

conditions and restrictions related to the offer, including the number of Shares
that such person shall be entitled to purchase, the price to be paid, and the
time within which such person must accept such offer. The purchase price of
Shares subject to Stock Purchase Rights shall be as determined by the
Administrator in accordance with the Applicable Laws. The offer to purchase
Shares subject to Stock Purchase Rights shall be accepted by execution of a
Restricted Stock Purchase Agreement in the form determined by the Administrator.

          (b) Repurchase Option.  Unless the Administrator determines otherwise,
              -----------------
the Restricted Stock Purchase Agreement shall grant the Company a repurchase
option exercisable upon the voluntary or involuntary termination of the
purchaser's employment or consulting relationship with the Company for any
reason (including death or disability).  The purchase price for Shares
repurchased pursuant to the Restricted Stock Purchase Agreement shall be the
original purchase price paid by the purchaser and may be paid by cash or
cancellation of any indebtedness of the purchaser to the Company. The repurchase
option shall lapse at such rate as the Administrator may determine in accordance
with the Applicable Laws.

          (c) Other Provisions.  The Restricted Stock Purchase Agreement shall
              ----------------
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.  In
addition, the provisions of Restricted Stock Purchase Agreements need not be the
same with respect to each purchaser.

          (d) Rights as a Stockholder.  Once the Stock Purchase Right is
              -----------------------
exercised, the purchaser shall have the rights equivalent to those of a
stockholder, and shall be a stockholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company.  No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 14
of the Plan.

     12.  Taxes.
          -----

          (a) As a condition of the exercise of an Option or Stock Purchase
Right granted under the Plan, the Participant (or in the case of the
Participant's death, the person exercising the Option or Stock Purchase Right)
shall make such arrangements as the Administrator may require for the
satisfaction of any applicable federal, state, local or foreign withholding tax
obligations that may arise in connection with the exercise of Option or Stock
Purchase Right and the issuance of Shares.  The Company shall not be required to
issue any Shares under the Plan until such obligations are satisfied.  If the
Administrator allows the withholding or surrender of Shares to satisfy a
Participant's tax withholding obligations under this Section 12 (whether
pursuant to Section 12(c), (d) or (e), or otherwise), the Administrator shall
not allow Shares to be withheld in an amount that exceeds the minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes.

          (b) In the case of an Employee and in the absence of any other
arrangement, the Employee shall be deemed to have directed the Company to
withhold or collect from his or her compensation an amount sufficient to satisfy
such tax obligations from the next payroll payment otherwise payable after the
date of an exercise of the Option or Stock Purchase Right.

                                      -10-
<PAGE>

          (c) This Section 12(c) shall apply only after the date, if any, upon
which the Common Stock becomes a Listed Security.  In the case of Participant
other than an Employee (or in the case of an Employee where the next payroll
payment is not sufficient to satisfy such tax obligations, with respect to any
remaining tax obligations), in the absence of any other arrangement and to the
extent permitted under the Applicable Laws, the Participant shall be deemed to
have elected to have the Company withhold from the Shares to be issued upon
exercise of the Option or Stock Purchase Right that number of Shares having a
Fair Market Value determined as of the applicable Tax Date (as defined below)
equal to the amount required to be withheld.  For purposes of this Section 12,
the Fair Market Value of the Shares to be withheld shall be determined on the
date that the amount of tax to be withheld is to be determined under the
Applicable Laws (the "Tax Date").
                      --------

          (d) If permitted by the Administrator, in its discretion, a
Participant may satisfy his or her tax withholding obligations upon exercise of
an Option or Stock Purchase Right by surrendering to the Company Shares that
have a Fair Market Value determined as of the applicable Tax Date equal to the
amount required to be withheld.  In the case of Shares previously acquired from
the Company that are surrendered under this Section 12(d), such Shares must have
been owned by the Participant for more than six (6) months on the date of
surrender.

          (e) Any election or deemed election by a Participant to have Shares
withheld to satisfy tax withholding obligations under Section 12(c) or (d) above
shall be irrevocable as to the particular Shares as to which the election is
made and shall be subject to the consent or disapproval of the Administrator.
Any election by a Participant under Section 12(d) above must be made on or prior
to the applicable Tax Date.

          (f) In the event an election to have Shares withheld is made by a
Participant and the Tax Date is deferred under Section 83 of the Code because no
election is filed under Section 83(b) of the Code, the Participant shall receive
the full number of Shares with respect to which the Option or Stock Purchase
Right is exercised but such Participant shall be unconditionally obligated to
tender back to the Company the proper number of Shares on the Tax Date.

     13.  Non-Transferability of Options and Stock Purchase Rights.  Options and
          --------------------------------------------------------
Stock Purchase Rights may not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or by the laws of
descent or distribution; provided that the Administrator may in its discretion
and to the extent permitted by the Applicable Laws grant transferable
Nonstatutory Stock Options pursuant to Option Agreements specifying (i) the
manner in which such Nonstatutory Stock Options are transferable and (ii) that
any such transfer shall be subject to the Applicable Laws.  The designation of a
beneficiary by an Optionee will not constitute a transfer.  An Option or Stock
Purchase Right may be exercised, during the lifetime of the holder of Option or
Stock Purchase Right, only by such holder or a transferee permitted by this
Section 13.

     14.  Adjustments Upon Changes in Capitalization, Merger or Certain Other
          -------------------------------------------------------------------
Transactions.
------------

                                      -11-
<PAGE>

          (a) Changes in Capitalization.  Subject to any required action by the
              -------------------------
stockholders of the Company, the number of Shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, each of the Share numbers set
forth in Sections 3 and 8 above, and the number of Shares of Common Stock that
have been authorized for issuance under the Plan but as to which no Options or
Stock Purchase Rights have yet been granted or that have been returned to the
Plan upon cancellation or expiration of an Option or Stock Purchase Right, as
well as the price per Share of Common Stock covered by each such outstanding
Option or Stock Purchase Right, shall be proportionately adjusted for any
increase or decrease in the number of issued Shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination,
recapitalization or reclassification of the Common Stock, or any other increase
or decrease in the number of issued Shares of Common Stock effected without
receipt of consideration by the Company; provided however that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration."  Such adjustment shall be made by the
Administrator, whose determination in that respect shall be final, binding and
conclusive.  Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of Shares of Common Stock subject to an Option
or Stock Purchase Right.

          (b) Dissolution or Liquidation.  In the event of the proposed
              --------------------------
dissolution or liquidation of the Company, the Board shall notify the Optionee
at least fifteen (15) days prior to such proposed action.  To the extent it has
not been previously exercised, the Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

          (c) Corporate Transaction.  In the event of a Corporate Transaction,
              ---------------------
each outstanding Option or Stock Purchase Right shall be assumed or an
equivalent option or right shall be substituted by the Company's successor
corporation or a parent or subsidiary of such successor corporation (the
"Successor Corporation"), unless the successor corporation does not agree to
----------------------
assume the Options or Stock Purchase Rights or to substitute an equivalent
option or right, in which case such Options or Stock Purchase Rights shall
terminate upon the consummation of the transaction.

          For purposes of this Section 14(c), an Option or a Stock Purchase
Right shall be considered assumed, without limitation, if, at the time of
issuance of the stock or other consideration upon a Corporate Transaction or a
Change of Control, as the case may be, each holder of an Option or Stock
Purchase Right would be entitled to receive upon exercise of the award the same
number and kind of shares of stock or the same amount of property, cash or
securities as such holder would have been entitled to receive upon the
occurrence of the transaction if the holder had been, immediately prior to such
transaction, the holder of the number of Shares of Common Stock covered by the
award at such time (after giving effect to any adjustments in the number of
Shares covered by the Option or Stock Purchase Right as provided for in this
Section 14); provided that if such consideration received in the transaction is
not solely common stock of the Successor Corporation, the Administrator may,
with the consent of the Successor Corporation, provide for the consideration to
be received upon exercise of the award to be solely common stock of the
Successor Corporation equal to the Fair Market Value of the per Share
consideration received by holders of Common Stock in the transaction.

                                      -12-
<PAGE>

          (d) Certain Distributions.  In the event of any distribution to the
              ---------------------
Company's stockholders of securities of any other entity or other assets (other
than dividends payable in cash or stock of the Company) without receipt of
consideration by the Company, the Administrator may, in its discretion,
appropriately adjust the price per Share of Common Stock covered by each
outstanding Option or Stock Purchase Right to reflect the effect of such
distribution.

     15.  Time of Granting Options and Stock Purchase Rights.  The date of grant
          --------------------------------------------------
of an Option or Stock Purchase Right shall, for all purposes, be the date on
which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator;
provided however that in the case of any Incentive Stock Option, the grant date
shall be the later of the date on which the Administrator makes the
determination granting such Incentive Stock Option or the date of commencement
of the Optionee's employment relationship with the Company.  Notice of the
determination shall be given to each Employee or Consultant to whom an Option or
Stock Purchase Right is so granted within a reasonable time after the date of
such grant.

     16.  Amendment and Termination of the Plan.
          -------------------------------------

          (a) Authority to Amend or Terminate.  The Board may at any time amend,
              -------------------------------
alter, suspend or discontinue the Plan, but no amendment, alteration, suspension
or discontinuation (other than an adjustment pursuant to Section 14 above) shall
be made that would materially and adversely affect the rights of any
Participant, without his or her consent.  In addition, to the extent necessary
and desirable to comply with the Applicable Laws, the Company shall obtain
stockholder approval of any Plan amendment in such a manner and to such a degree
as required.

          (b) Effect of Amendment or Termination.  No amendment or termination
              ----------------------------------
of the Plan shall materially and adversely affect Options or Stock Purchase
Rights already granted, unless mutually agreed otherwise between the Participant
and the Administrator, which agreement must be in writing and signed by the
Participant and the Company.

     17.  Conditions Upon Issuance of Shares.  Notwithstanding any other
          ----------------------------------
provision of the Plan or any agreement entered into by the Company pursuant to
the Plan, the Company shall not be obligated, and shall have no liability for
failure, to issue or deliver any Shares under the Plan unless such issuance or
delivery would comply with the Applicable Laws, with such compliance determined
by the Company in consultation with its legal counsel.  As a condition to the
exercise of an Option or Stock Purchase Right, the Company may require the
person exercising such Option or Stock Purchase Right to represent and warrant
at the time of any such exercise that the Shares are being purchased only for
investment and without any present intention to sell or distribute such Shares
if, in the opinion of counsel for the Company, such a representation is required
by law.

     18.  Reservation of Shares.  The Company, during the term of this Plan,
          ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

                                      -13-
<PAGE>

     19.  Agreements.  Options and Stock Purchase Rights shall be evidenced by
          ----------
Option Agreements and Restricted Stock Purchase Agreements, respectively, in
such form(s) as the Administrator shall from time to time approve.

     20.  Stockholder Approval.  If required by the Applicable Laws, continuance
          --------------------
of the Plan shall be subject to approval by the stockholders of the Company
within twelve (12) months before or after the date the Plan is adopted.  Such
stockholder approval shall be obtained in the manner and to the degree required
under the Applicable Laws.

                                      -14-
<PAGE>

                                                                    EXHIBIT 10.4

                             REPLAY NETWORKS, INC.

                                1999 STOCK PLAN

                         NOTICE OF STOCK OPTION GRANT
                         ----------------------------

((Optionee))

     You have been granted an option to purchase Common Stock "Common Stock" of
                                                               ------------
Replay Networks, Inc. (the "Company") as follows:
                            -------

     Board Approval Date:               ((Board Approval Date))

     Date of Grant (Later of Board
     Approval Date or Commence-
     ment of Employment/Consulting):    ((Grant Date))

     Vesting Commencement Date:         ((Vesting Commence Date))

     Exercise Price per Share:          $((Exercise Price))

     Total Number of Shares Granted:    ((No of Shares))

     Total Exercise Price:              $((Total Exercise Price))

     Type of Option:                    ((ISO Amount)) Incentive Stock Option

                                        ((NSO Amount)) Nonstatutory Stock Option

     Term/Expiration Date:              ((Expir Date))

     Vesting Schedule:                  This Option may be exercised, in whole
                                        or in part, in accordance with the
                                        following schedule: ((Cliff Vest
                                        Amount)) of the Shares subject to the
                                        Option shall vest on the ((Cliff Month
                                        Number)) month anniversary of the
                                        Vesting Commencement Date and 1/((Total
                                        Vesting Months)) of the total number of
                                        Shares subject to the Option shall vest
                                        each month thereafter.

                                        Certain provisions of ((Optionee))'s
                                        offer letter dated
                                        ((Vesting Commence Date)) shall apply to
                                        this Option Agreement.

     Termination Period:                This Option may be exercised for 30 days
                                        after termination of employment or
                                        consulting relationship except as set
                                        out in Sections 6 and 7 of the Stock
<PAGE>

                                        Option Agreement (but in no event later
                                        than the Expiration Date).

                                      -2-
<PAGE>

     By your signature and the signature of the Company's representative below,
you and the Company agree that this Option is granted under and governed by the
terms and conditions of the 1999 Stock Plan and the Stock Option Agreement, both
of which are attached and made a part of this document.

((Optionee)):                           Replay Networks, Inc.

_________________________________       By:_______________________________
Signature

_________________________________          _______________________________
Print Name                                 Print Name and Title

                                      -3-
<PAGE>

                             REPLAY NETWORKS, INC.

                                1999 STOCK PLAN

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

     1.   Grant of Option.  Replay Networks, Inc., a California corporation (the
          ---------------
"Company"), hereby grants to ((Optionee)) ("Optionee"), an option (the "Option")
 -------                                    --------                    ------
to purchase a total number of shares of Common Stock (the "Shares") set forth in
the Notice of Stock Option Grant, at the exercise price per share set forth in
the Notice of Stock Option Grant (the "Exercise Price") subject to the terms,
                                       --------------
definitions and provisions of the Replay Networks, Inc.1999 Stock Plan (the
"Plan") adopted by the Company, which is incorporated herein by reference.
 ----
Unless otherwise defined herein, the terms defined in the Plan shall have the
same defined meanings in this Option.

     If designated an Incentive Stock Option, this Option is intended to qualify
as an Incentive Stock Option as defined in Section 422 of the Code.

     2.   Exercise of Option.  This Option shall be exercisable during its Term
          ------------------
in accordance with the Vesting Schedule set out in the Notice of Stock Option
Grant and with the provisions of Section 9 of the Plan as follows:

          (a)  Right to Exercise.
               -----------------

               (i)   This Option may not be exercised for a fraction of a share.

               (ii)  In the event of Optionee's death, disability or other
termination of employment, the exercisability of the Option is governed by
Sections 5, 6 and 7 below, subject to the limitation contained in Section
2(a)(i).

               (iii) In no event may this Option be exercised after the
Expiration Date of this Option as set forth in the Notice of Stock Option Grant.

          (b)  Method of Exercise.  This Option shall be exercisable by
               ------------------
execution and delivery of the Exercise Notice and Restricted Stock Purchase
Agreement attached hereto as Exhibit A (the "Exercise Agreement") or of any
                             ---------       ------------------
other form of written notice approved for such purpose by the Company which
shall state the election to exercise the Option, the number of Shares in respect
of which the Option is being exercised, and such other representations and
agreements as to the holder's investment intent with respect to such shares of
Common Stock as may be required by the Company pursuant to the provisions of the
Plan. Such written notice shall be signed by Optionee and shall be delivered in
person or by certified mail to the Secretary of the Company. The written notice
shall be accompanied by payment of the Exercise Price. This Option shall be
deemed to be exercised upon receipt by the Company of such written notice
accompanied by the Exercise Price.
<PAGE>

     No Shares will be issued pursuant to the exercise of an Option unless such
issuance and such exercise shall comply with all relevant provisions of
applicable law and the requirements of any stock exchange upon which the Shares
may then be listed.  Assuming such compliance, for income tax purposes the
Shares shall be considered transferred to Optionee on the date on which the
Option is exercised with respect to such Shares.

     3.   Method of Payment.  Payment of the Exercise Price shall be by cash,
          -----------------
check or any other method permitted under the Plan; provided however that the
Administrator may refuse to allow Optionee to tender a particular form of
payment (other than cash or check) if, in the Administrator's sole discretion,
acceptance of such form of consideration would not be in the best interests of
the Company at such time.

     4.   Restrictions on Exercise.  This Option may not be exercised until such
          ------------------------
time as the Plan has been approved by the shareholders of the Company, or if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any applicable
federal or state securities or other law or regulation, including any rule under
Part 207 of Title 12 of the Code of Federal Regulations as promulgated by the
Federal Reserve Board.  As a condition to the exercise of this Option, the
Company may require Optionee to make any representation and warranty to the
Company as may be required by any applicable law or regulation.

     5.   Termination of Relationship.  In the event of termination of
          ---------------------------
Optionee's Continuous Status as an Employee or Consultant, Optionee may, to the
extent otherwise so entitled at the date of such termination (the "Termination
                                                                   -----------
Date"), exercise this Option during the Termination Period set forth in the
----
Notice of Stock Option Grant.  To the extent that Optionee was not entitled to
exercise this Option at such Termination Date, or if Optionee does not exercise
this Option within the Termination Period, the Option shall terminate.

     6.   Disability of Optionee.
          ----------------------

          (a) Notwithstanding the provisions of Section 5 above, in the event of
termination of Optionee's Continuous Status as an Employee or Consultant as a
result of Optionee's total and permanent disability (as defined in Section
22(e)(3) of the Code), Optionee may, but only within twelve months from the
Termination Date (but in no event later than the Expiration Date set forth in
the Notice of Stock Option Grant), exercise this Option to the extent Optionee
was entitled to exercise it as of such Termination Date.  To the extent that
Optionee was not entitled to exercise the Option as of the Termination Date, or
if Optionee does not exercise such Option (to the extent so entitled) within the
time specified in this Section 6(a), the Option shall terminate.

          (b) Notwithstanding the provisions of Section 5 above, in the event of
termination of Optionee's consulting relationship or Continuous Status as an
Employee as a result of disability not constituting a total and permanent
disability (as set forth in Section 22(e)(3) of the Code), Optionee may, but
only within six months from the Termination Date (but in no event later than the
Expiration Date set forth in the Notice of Stock Option Grant), exercise the
Option to the extent Optionee was entitled to exercise it as of such Termination
Date;

                                      -2-
<PAGE>

provided, however, that if this is an Incentive Stock Option and Optionee fails
to exercise this Incentive Stock Option within three months from the Termination
Date, this Option will cease to qualify as an Incentive Stock Option (as defined
in Section 422 of the Code) and Optionee will be treated for federal income tax
purposes as having received ordinary income at the time of such exercise in an
amount generally measured by the difference between the Exercise Price for the
Shares and the Fair Market Value of the Shares on the date of exercise.  To the
extent that Optionee was not entitled to exercise the Option at the Termination
Date, or if Optionee does not exercise such Option to the extent so entitled
within the time specified in this Section 6(b), the Option shall terminate.

     7.   Death of Optionee.   In the event of the death of Optionee (a) during
          -----------------
the Term of this Option and while an Employee or Consultant of the Company and
having been in Continuous Status as an Employee or Consultant since the date of
grant of the Option, or (b) within 30 days after Optionee's Termination Date,
the Option may be exercised at any time within six months following the date of
death (but in no event later than the Expiration Date set forth in the Notice of
Stock Option Grant), by Optionee's estate or by a person who acquired the right
to exercise the Option by bequest or inheritance, but only to the extent of the
right to exercise that had accrued at the Termination Date.

     8.   Non-Transferability of Option.  This Option may not be transferred in
          -----------------------------
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by him or her.  The terms
of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of Optionee.

     9.   Term of Option.  This Option may be exercised only within the Term set
          --------------
forth in the Notice of Stock Option Grant, subject to the limitations set forth
in Section 7 of the Plan.

     10.  Tax Consequences.  Set forth below is a brief summary as of the date
          ----------------
of this Option of certain of the federal and California tax consequences of
exercise of this Option and disposition of the Shares under the laws in effect
as of the Date of Grant.  THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX
LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  OPTIONEE SHOULD CONSULT A TAX
ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

          (a) Exercise of Incentive Stock Option.  If this Option qualifies as
              ----------------------------------
an Incentive Stock Option, there will be no regular federal or California income
tax liability upon the exercise of the Option, although the excess, if any, of
the Fair Market Value of the Shares on the date of exercise over the Exercise
Price will be treated as an adjustment to the alternative minimum tax for
federal tax purposes and may subject Optionee to the alternative minimum tax in
the year of exercise.

          (b) Exercise of Nonstatutory Stock Option.  If this Option does not
              -------------------------------------
qualify as an Incentive Stock Option, there may be a regular federal income tax
liability and a California income tax liability upon the exercise of the Option.
Optionee will be treated as having received compensation income (taxable at
ordinary income tax rates) equal to the excess, if any, of the Fair Market Value
of the Shares on the date of exercise over the Exercise Price.  If Optionee is
an

                                      -3-
<PAGE>

employee, the Company will be required to withhold from Optionee's compensation
or collect from Optionee and pay to the applicable taxing authorities an amount
equal to a percentage of this compensation income at the time of exercise.

          (c) Disposition of Shares.  In the case of a Nonstatutory Stock
              ---------------------
Option, if Shares are held for more than one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
and California income tax purposes.  In the case of an Incentive Stock Option,
if Shares transferred pursuant to the Option are held for more than one year
after exercise and are disposed of at least two years after the Date of Grant,
any gain realized on disposition of the Shares will also be treated as long-term
capital gain for federal and California income tax purposes.  In either case,
the long-term capital gain will be taxed for federal income tax and alternative
minimum tax purposes at a maximum rate of 20% if the Shares are held more than
one year after exercise.  If Shares purchased under an Incentive Stock Option
are disposed of within one year after exercise or within two years after the
Date of Grant, any gain realized on such disposition will be treated as
compensation income (taxable at ordinary income rates) to the extent of the
difference between the Exercise Price and the lesser of (i) the Fair Market
Value of the Shares on the date of exercise, or (ii) the sale price of the
Shares.

          (d) Notice of Disqualifying Disposition of Incentive Stock Option
              -------------------------------------------------------------
Shares.  If the Option granted to Optionee herein is an Incentive Stock Option,
------
and if Optionee sells or otherwise disposes of any of the Shares acquired
pursuant to the Incentive Stock Option on or before the later of (i) the date
two years after the Date of Grant, or (ii) the date one year after the date of
exercise, Optionee shall immediately notify the Company in writing of such
disposition.  Optionee acknowledges and agrees that he or she may be subject to
income tax withholding by the Company on the compensation income recognized by
Optionee from the early disposition by payment in cash or out of the current
earnings paid to Optionee.

     11.  Withholding Tax Obligations.
          ---------------------------

          (a) General Withholding Obligations.  As a condition to the exercise
              -------------------------------
of Option granted hereunder, Optionee shall make such arrangements as the
Administrator may require for the satisfaction of any federal, state, local or
foreign withholding tax obligations that may arise in connection with the
exercise, receipt or vesting of the Option.  The Company shall not be required
to issue any Shares under the Plan until such obligations are satisfied.
Optionee understands that, upon exercising a Nonstatutory Stock Option, he or
she will recognize income for tax purposes in an amount equal to the excess of
the then Fair Market Value of the Shares over the Exercise Price.  If Optionee
is an employee, the Company will be required to withhold from Optionee's
compensation, or collect from Optionee and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income.
Additionally, Optionee may at some point be required to satisfy tax withholding
obligations with respect to the disqualifying disposition of an Incentive Stock
Option. Optionee shall satisfy his or her tax withholding obligation arising
upon the exercise of this Option by one or some combination of the following
methods:  (i) by cash or check payment, (ii) out of Optionee's current
compensation, (iii) if permitted by the Administrator, in its discretion, by
surrendering to the Company Shares which (A) in the case of Shares previously
acquired from the Company, have

                                      -4-
<PAGE>

been owned by Optionee for more than six months on the date of surrender, and
(B) have a Fair Market Value determined as of the applicable Tax Date (as
defined in Section 11(c) below) on the date of surrender equal to the amount
required to be withheld, or (iv) by electing to have the Company withhold from
the Shares to be issued upon exercise of the Option that number of Shares having
a Fair Market Value determined as of the applicable Tax Date equal to the amount
required to be withheld.

          (b)  Stock Withholding to Satisfy Withholding Tax Obligations.  In the
               --------------------------------------------------------
event the Administrator allows Optionee to satisfy his or her tax withholding
obligations as provided in Section 11(a)(iii) or (iv) above, such satisfaction
must comply with the requirements of this Section (11)(b) and all applicable
laws.  All elections by Optionee to have Shares withheld to satisfy tax
withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions:

               (i)   the election must be made on or prior to the applicable Tax
Date (as defined in Section 11(c) below);

               (ii)  once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made; and

               (iii) all elections shall be subject to the consent or
disapproval of the Administrator.

     In the event the election to have Shares withheld is made by Optionee and
the Tax Date is deferred under Section 83 of the Code because no election is
filed under Section 83(b) of the Code, Optionee shall receive the full number of
Shares with respect to which the Option is exercised but Optionee shall be
unconditionally obligated to tender back to the Company the proper number of
Shares on the Tax Date.

          (c)  Definitions.  For purposes of this Section 11, the Fair Market
               -----------
Value of the Shares to be withheld shall be determined on the date that the
amount of tax to be withheld is to be determined under the applicable laws (the
"Tax Date").
 --------

     12.  Market Standoff Agreement.  In connection with the initial public
          -------------------------
offering of the Company's securities and upon request of the Company or the
underwriters managing such underwritten offering of the Company's securities,
Optionee agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any securities of the Company (other
than those included in the registration) without the prior written consent of
the Company or such underwriters, as the case may be, for such period of time
(not to exceed 180 days) from the effective date of such registration as may be
requested by the Company or such managing underwriters and to execute an
agreement reflecting the foregoing as may be requested by the underwriters at
the time of the Company's initial public offering.

                           [Signature Page Follows]

                                      -5-
<PAGE>

     This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which together shall constitute one
document.

                                        REPLAY NETWORKS, INC.

                                        By:_______________________________

                                           _______________________________
                                           (Print name and title)

     OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE
OPTION HEREOF IS EARNED ONLY BY CONTINUING EMPLOYMENT OR CONSULTANCY AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR
ACQUIRING SHARES HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT
NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY'S STOCK OPTION PLAN WHICH IS
INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL
IT INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO
TERMINATE OPTIONEE'S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT
CAUSE.

     Optionee acknowledges receipt of a copy of the Plan and represents that he
or she is familiar with the terms and provisions thereof, and hereby accepts
this Option subject to all of the terms and provisions thereof.  Optionee has
reviewed the Plan and this Option in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option.  Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Option.

Dated: ________________________         __________________________________
                                        ((Optionee))

                                      -6-
<PAGE>

                                   EXHIBIT A
                                   ---------

                             REPLAY NETWORKS, INC.

                                1999 STOCK PLAN

            EXERCISE NOTICE AND RESTRICTED STOCK PURCHASE AGREEMENT
            -------------------------------------------------------

     This Agreement ("Agreement") is made as of ______________, by and between
                      ---------
Replay Networks, Inc., a California corporation (the "Company"), and
                                                      -------
((Optionee)) ("Purchaser"). To the extent any capitalized terms used in this
               ---------
Agreement are not defined, they shall have the meaning ascribed to them in the
1999 Stock Plan.

     1.   Exercise of Option.  Subject to the terms and conditions hereof,
          ------------------
Purchaser hereby elects to exercise his or her option to purchase __________
shares of the Common Stock (the "Shares") of the Company under and pursuant to
                                 ------
the Company's 1999 Stock Plan (the "Plan") and the Stock Option Agreement dated
                                    ----
______________, (the "Option Agreement").  The purchase price for the Shares
                      ----------------
shall be $((Exercise Price)) per Share for a total purchase price of
$_______________.  The term "Shares" refers to the purchased Shares and all
                             ------
securities received in replacement of the Shares or as stock dividends or
splits, all securities received in replacement of the Shares in a
recapitalization, merger, reorganization, exchange or the like, and all new,
substituted or additional securities or other properties to which Purchaser is
entitled by reason of Purchaser's ownership of the Shares.

     2.   Time and Place of Exercise. The purchase and sale of the Shares under
          --------------------------
this Agreement shall occur at the principal office of the Company simultaneously
with the execution and delivery of this Agreement in accordance with the
provisions of Section 2(b) of the Option Agreement.  On such date, the Company
will deliver to Purchaser a certificate representing the Shares to be purchased
by Purchaser (which shall be issued in Purchaser's name) against payment of the
exercise price therefor by Purchaser by (a) check made payable to the Company,
(b) cancellation of indebtedness of the Company to Purchaser, (c) delivery of
shares of the Common Stock of the Company in accordance with Section 3 of the
Option Agreement, or (d) a combination of the foregoing.

     3.   Limitations on Transfer.  In addition to any other limitation on
          -----------------------
transfer created by applicable securities laws, Purchaser shall not assign,
encumber or dispose of any interest in the Shares except in compliance with the
provisions below and applicable securities laws.

          (a) Right of First Refusal.  Before any Shares held by Purchaser or
              ----------------------
any transferee of Purchaser (either being sometimes referred to herein as the
"Holder") may be sold or otherwise transferred (including transfer by gift or
-------
operation of law), the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this
Section 3(a) (the "Right of First Refusal").
                   ----------------------

              (i) Notice of Proposed Transfer.  The Holder of the Shares shall
                  ---------------------------
deliver to the Company a written notice (the "Notice") stating:  (i) the
                                              ------
Holder's bona fide
<PAGE>

intention to sell or otherwise transfer such Shares; (ii) the name of each
proposed purchaser or other transferee ("Proposed Transferee"); (iii) the number
                                         -------------------
of Shares to be transferred to each Proposed Transferee; and (iv) the terms and
conditions of each proposed sale or transfer. The Holder shall offer the Shares
at the same price (the "Offered Price") and upon the same terms (or terms as
                        -------------
similar as reasonably possible) to the Company or its assignee(s).

               (ii)   Exercise of Right of First Refusal.  At any time within 30
                      ----------------------------------
days after receipt of the Notice, the Company and/or its assignee(s) may, by
giving written notice to the Holder, elect to purchase all, but not less than
all, of the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection
(iii) below.

               (iii)  Purchase Price.  The purchase price ("Purchase Price") for
                      --------------                        --------------
the Shares purchased by the Company or its assignee(s) under this Section 3(a)
shall be the Offered Price.  If the Offered Price includes consideration other
than cash, the cash equivalent value of the non-cash consideration shall be
determined by the Board of Directors of the Company in good faith.

               (iv)   Payment.  Payment of the Purchase Price shall be made, at
                      -------
the option of the Company or its assignee(s), in cash (by check), by
cancellation of all or a portion of any outstanding indebtedness of the Holder
to the Company (or, in the case of repurchase by an assignee, to the assignee),
or by any combination thereof within 30 days after receipt of the Notice or in
the manner and at the times set forth in the Notice.

               (v)    Holder's Right to Transfer.  If all of the Shares proposed
                      --------------------------
in the Notice to be transferred to a given Proposed Transferee are not purchased
by the Company and/or its assignee(s) as provided in this Section 3(a), then the
Holder may sell or otherwise transfer such Shares to that Proposed Transferee at
the Offered Price or at a higher price, provided that such sale or other
transfer is consummated within 60 days after the date of the Notice and provided
further that any such sale or other transfer is effected in accordance with any
applicable securities laws and the Proposed Transferee agrees in writing that
the provisions of this Section 3 shall continue to apply to the Shares in the
hands of such Proposed Transferee.  If the Shares described in the Notice are
not transferred to the Proposed Transferee within such period, or if the Holder
proposes to change the price or other terms to make them more favorable to the
Proposed Transferee, a new Notice shall be given to the Company, and the Company
and/or its assignees shall again be offered the Right of First Refusal before
any Shares held by the Holder may be sold or otherwise transferred.

               (vi)   Exception for Certain Family Transfers.  Anything to the
                      --------------------------------------
contrary contained in this Section 3(a) notwithstanding, the transfer of any or
all of the Shares during Purchaser's lifetime or on Purchaser's death by will or
intestacy to Purchaser's Immediate Family (as defined below) or a trust for the
benefit of Purchaser's Immediate Family shall be exempt from the provisions of
this Section 3(a). "Immediate Family" as used herein shall mean spouse, lineal
                    ----------------
descendant or antecedent, father, mother, brother or sister. In such case, the
transferee or other recipient shall receive and hold the Shares so transferred
subject to the

                                      -2-
<PAGE>

provisions of this Section, and there shall be no further transfer of such
Shares except in accordance with the terms of this Section 3.

          (b)  Involuntary Transfer.
               --------------------

               (i)    Company's Right to Purchase upon Involuntary Transfer.  In
                      -----------------------------------------------------
the event, at any time after the date of this Agreement, of any transfer by
operation of law or other involuntary transfer (including divorce or death, but
excluding, in the event of death, a transfer to Immediate Family as set forth in
Section 3(a)(vi) above) of all or a portion of the Shares by the record holder
thereof, the Company shall have the right to purchase all of the Shares
transferred at the greater of the purchase price paid by Purchaser pursuant to
this Agreement or the Fair Market Value of the Shares on the date of transfer.
Upon such a transfer, the person acquiring the Shares shall promptly notify the
Secretary of the Company of such transfer.  The right to purchase such Shares
shall be provided to the Company for a period of 30 days following receipt by
the Company of written notice by the person acquiring the Shares.

               (ii)   Price for Involuntary Transfer.  With respect to any stock
                      ------------------------------
to be transferred pursuant to Section 3(b)(i), the price per Share shall be a
price set by the Board of Directors of the Company that will reflect the current
value of the stock in terms of present earnings and future prospects of the
Company.  The Company shall notify Purchaser or his or her executor of the price
so determined within 30 days after receipt by it of written notice of the
transfer or proposed transfer of Shares.  However, if the Purchaser does not
agree with the valuation as determined by the Board of Directors of the Company,
the Purchaser shall be entitled to have the valuation determined by an
independent appraiser to be mutually agreed upon by the Company and the
Purchaser and whose fees shall be borne equally by the Company and the
Purchaser.

          (c)  Assignment.  The right of the Company to purchase any part of the
               ----------
Shares may be assigned in whole or in part to any shareholder or shareholders of
the Company or other persons or organizations.

          (d)  Restrictions Binding on Transferees.  All transferees of Shares
               -----------------------------------
or any interest therein will receive and hold such Shares or interest subject to
the provisions of this Agreement.  Any sale or transfer of the Shares shall be
void unless the provisions of this Agreement are satisfied.

          (e)  Termination of Rights.  The Right of First Refusal and the
               ---------------------
Company's right to repurchase the Shares in the event of an involuntary transfer
pursuant to Section 3(b) above shall terminate upon the first sale of Common
Stock of the Company to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Securities Act").
                                                   --------------

          (f)  Market Standoff Agreement.  In connection with the initial public
               -------------------------
offering of the Company's securities and upon request of the Company or the
underwriters managing such underwritten offering of the Company's securities,
Purchaser agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any

                                      -3-
<PAGE>

securities of the Company (other than those included in the registration)
without the prior written consent of the Company or such underwriters, as the
case may be, for such period of time (not to exceed 180 days) from the effective
date of such registration as may be requested by the Company or such managing
underwriters and to execute an agreement reflecting the foregoing as may be
requested by the underwriters at the time of the Company's initial public
offering.

     4.   Investment and Taxation Representations.  In connection with the
          ---------------------------------------
purchase of the Shares, Purchaser represents to the Company the following:

          (a) Purchaser is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Shares.  Purchaser is
purchasing the Shares for investment for his or her own account only and not
with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act.

          (b) Purchaser understands that the Shares have not been registered
under the Securities Act by reason of a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of Purchaser's
investment intent as expressed herein.

          (c) Purchaser understands that the Shares are "restricted securities"
under applicable U.S. federal and state securities laws and that, pursuant to
these laws, Purchaser must hold the Shares indefinitely unless they are
registered with the Securities and Exchange Commission and qualified by state
authorities, or an exemption from such registration and qualification
requirements is available.  Purchaser acknowledges that the Company has no
obligation to register or qualify the Shares for resale.  Purchaser further
acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and
requirements relating to the Company which are outside of the Purchaser's
control, and which the Company is under no obligation and may not be able to
satisfy.

          (d) Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser's purchase or disposition of the Shares.
Purchaser represents that Purchaser has consulted any tax consultants Purchaser
deems advisable in connection with the purchase or disposition of the Shares and
that Purchaser is not relying on the Company for any tax advice.

     5.   Restrictive Legends and Stop-Transfer Orders.
          --------------------------------------------

          (a) Legends.  The certificate or certificates representing the Shares
              -------
shall bear the following legends (as well as any legends required by applicable
state and federal corporate and securities laws):

              (i) THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN
                  ACQUIRED FOR INVESTMENT AND NOT WITH A

                                      -4-
<PAGE>

                     VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
                     THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED
                     WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO
                     OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE
                     COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
                     SECURITIES ACT OF 1933.

               (ii)  THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE
                     TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN
                     AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY
                     OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

               (iii) IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS
                     SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY
                     CONSIDERATION THEREFOR, WITHOUT THE PRIOR WRITTEN CONSENT
                     OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF
                     CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER'S
                     RULES.

     Purchaser understands that transfer of the Shares may be restricted by
Section 260.141.11 of the Rules of the California Corporations Commissioner, a
copy of which is attached to this Agreement.

          (b)  Stop-Transfer Notices.  Purchaser agrees that, in order to ensure
               ---------------------
compliance with the restrictions referred to herein, the Company may issue
appropriate "stop transfer" instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

          (c)  Refusal to Transfer.  The Company shall not be required (i) to
               -------------------
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

          (d)  Removal of Legend.  When all of the following events have
               -----------------
occurred, the Shares then held by Purchaser will no longer be subject to the
legend referred to in Section 5(a)(ii):  (i) the termination of the Right of
First Refusal; and (ii) the expiration or termination of the market standoff
provisions of Section 3(f) (and of any agreement entered pursuant to Section
3(f)).  After such time, and upon Purchaser's request, a new certificate or
certificates representing

                                      -5-
<PAGE>

the Shares not repurchased shall be issued without the legend referred to in
Section 5(a)(ii), and delivered to Purchaser.

     6.   No Employment Rights.  Nothing in this Agreement shall affect in any
          --------------------
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Purchaser's employment or consulting relationship,
for any reason, with or without cause.

     7.   Miscellaneous.
          -------------

          (a) Governing Law.  This Agreement and all acts and transactions
              -------------
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.

          (b) Entire Agreement; Enforcement of Rights.  This Agreement sets
              ---------------------------------------
forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them.  No
modification of or amendment to this Agreement, nor any waiver of any rights
under this Agreement, shall be effective unless in writing signed by the parties
to this Agreement.  The failure by either party to enforce any rights under this
Agreement shall not be construed as a waiver of any rights of such party.

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

          (d) Construction.  This Agreement is the result of negotiations
              ------------
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

          (e) Notices.  Any notice required or permitted by this Agreement shall
              -------
be in writing and shall be deemed sufficient when delivered personally or sent
by telegram or fax or 48 hours after being deposited in the U.S. mail, as
certified or registered mail, with postage prepaid, and addressed to the party
to be notified at such party's address as set forth below or as subsequently
modified by written notice.

          (f) Counterparts.  This Agreement may be executed in two or more
              ------------
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

          (g) Successors and Assigns.  The rights and benefits of this Agreement
              ----------------------
shall inure to the benefit of, and be enforceable by the Company's successors
and assigns.  The rights

                                      -6-
<PAGE>

and obligations of Purchaser under this Agreement may only be assigned with the
prior written consent of the Company.

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

                           [Signature Page Follows]

                                      -7-
<PAGE>

     The parties have executed this Exercise Notice and Restricted Stock
Purchase Agreement as of the date first set forth above.

                                        COMPANY:

                                        Replay Networks, Inc.

                                        By: ________________________________

                                        Name: ______________________________
                                             (print)

                                        Title: _____________________________

                                        1945 Charleston Road
                                        Mountain View, CA 94043-1201

                                        PURCHASER:

                                        ((OPTIONEE))

                                        ____________________________________
                                        (Signature)

                                        Address:

                                        ____________________________________
                                        ____________________________________

I, ______________________, spouse of ((Optionee)), have read and hereby approve
the foregoing Agreement. In consideration of the Company's granting my spouse
the right to purchase the Shares as set forth in the Agreement, I hereby agree
to be bound irrevocably by the Agreement and further agree that any community
property or similar interest that I may have in the Shares shall hereby be
similarly bound by the Agreement. I hereby appoint my spouse as my attorney-in-
fact with respect to any amendment or exercise of any rights under the
Agreement.

                                        ____________________________________
                                        Spouse of ((Optionee))

                                      -8-
<PAGE>

                STATE OF CALIFORNIA - CALIFORNIA ADMINISTRATIVE CODE
                ----------------------------------------------------

        Title 10. Investment - Chapter 3. Commissioner of Corporations

     260.141.11:  Restriction on Transfer.
     ----------   -----------------------

     (a) The issuer of any security upon which a restriction on transfer has
been imposed pursuant to Sections 260.102.6, 260.141.10 or 260.534 shall cause a
copy of this section to be delivered to each issuee or transferee of such
security at the time the certificate evidencing the security is delivered to the
issuee or transferee.

     (b) It is unlawful for the holder of any such security to consummate a sale
or transfer of such security, or any interest therein, without the prior written
consent of the Commissioner (until this condition is removed pursuant to Section
260.141.12 of these rules), except:

         (1)  to the issuer;
         (2)  pursuant to the order or process of any court;
         (3)  to any person described in Subdivision (i) of Section 25102 of the
Code or Section 260.105.14 of these rules;
         (4)  to the transferor's ancestors, descendants or spouse, or any
custodian or trustee for the account of the transferor or the transferor's
ancestors, descendants, or spouse; or to a transferee by a trustee or custodian
for the account of the transferee or the transferee's ancestors, descendants or
spouse;
         (5)  to holders of securities of the same class of the same issuer;
         (6)  by way of gift or donation inter vivos or on death;
         (7)  by or through a broker-dealer licensed under the Code (either
acting as such or as a finder) to a resident of a foreign state, territory or
country who is neither domiciled in this state to the knowledge of the broker-
dealer, nor actually present in this state if the sale of such securities is not
in violation of any securities law of the foreign state, territory or country
concerned;
         (8)  to a broker-dealer licensed under the Code in a principal
transaction, or as an underwriter or member of an underwriting syndicate or
selling group;
         (9)  if the interest sold or transferred is a pledge or other lien
given by the purchaser to the seller upon a sale of the security for which the
Commissioner's written consent is obtained or under this rule not required;
         (10) by way of a sale qualified under Sections 25111, 25112, 25113 or
25121 of the Code, of the securities to be transferred, provided that no order
under Section 25140 or Subdivision (a) of Section 25143 is in effect with
respect to such qualification;
         (11) by a corporation to a wholly owned subsidiary of such corporation,
or by a wholly owned subsidiary of a corporation to such corporation;
         (12) by way of an exchange qualified under Section 25111, 25112 or
25113 of the Code, provided that no order under Section 25140 or Subdivision (a)
of Section 25143 is in effect with respect to such qualification;
         (13) between residents of foreign states, territories or countries who
are neither domiciled nor actually present in this state;
         (14) to the State Controller pursuant to the Unclaimed Property Law or
to the administrator of the unclaimed property law of another state;
         (15) by the State Controller pursuant to the Unclaimed Property Law or
by the administrator of the unclaimed property law of another state if, in
either such case, such person (i) discloses to potential purchasers at the sale
that transfer of the securities is restricted under this rule, (ii) delivers to
each purchaser a copy of this rule, and (iii) advises the Commissioner of the
name of each purchaser;
         (16) by a trustee to a successor trustee when such transfer does not
involve a change in the beneficial ownership of the securities; or
         (17) by way of an offer and sale of outstanding securities in an issuer
transaction that is subject to the qualification requirement of Section 25110 of
the Code but exempt from that qualification requirement by subdivision (f) of
Section 25102;

provided that any such transfer is on the condition that any certificate
evidencing the security issued to such transferee shall contain the legend
required by this section.

     (c) The certificates representing all such securities subject to such a
restriction on transfer, whether upon initial issuance or upon any transfer
thereof, shall bear on their face a legend, prominently stamped or printed
thereon in capital letters of not less than 10-point size, reading as follows:

               "IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS
SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR,
WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE
STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER'S RULES."
<PAGE>

                                REPLAYTV, INC.

                                1999 STOCK PLAN

                      RESTRICTED STOCK PURCHASE AGREEMENT
                      -----------------------------------

     This Restricted Stock Purchase Agreement (the "Agreement") is made as of
                                                    ---------
______________, __________, by and between ReplayTV, Inc ., a Delaware
corporation (the "Company"), and ((Purchaser)) ("Purchaser") pursuant to the
                  -------                        ---------
Company's 1999 Stock Plan.  To the extent any capitalized terms used in this
Agreement are not defined, they shall have the meaning ascribed to them in the
1999 Stock Plan.

     1.  Sale of Stock.  Subject to the terms and conditions of this Agreement,
         -------------
on the Purchase Date (as defined below) the Company will issue and sell to
Purchaser, and Purchaser agrees to purchase from the Company, ((NoofShares))
shares of the Company's Common Stock (the "Shares") at a purchase price of
                                           ------
$((PriceperShare)) per Share for a total purchase price of
$((TotalPurchasePrice)). The term "Shares" refers to the purchased Shares and
                                   ------
all securities received in replacement of or in connection with the Shares
pursuant to stock dividends or splits, all securities received in replacement of
the Shares in a recapitalization, merger, reorganization, exchange or the like,
and all new, substituted or additional securities or other properties to which
Purchaser is entitled by reason of Purchaser's ownership of the Shares.

     2.  Purchase.  The purchase and sale of the Shares under this Agreement
         --------
shall occur at the principal office of the Company simultaneously with the
execution of this Agreement by the parties, or on such other date as the Company
and Purchaser shall agree (the "Purchase Date").  On the Purchase Date, the
                                -------------
Company will deliver to Purchaser a certificate representing the Shares to be
purchased by Purchaser (which shall be issued in Purchaser's name) against
payment of the purchase price therefor by Purchaser by (a) check made payable to
the Company, (b) cancellation of indebtedness of the Company to Purchaser, (c)
cancellation of amounts due to Purchaser for prior services rendered to the
Company, or (d) by a combination of the foregoing.

     3.  Limitations on Transfer.  In addition to any other limitation on
         -----------------------
transfer created by applicable securities laws, Purchaser shall not assign,
encumber or dispose of any interest in the Shares while the Shares are subject
to the Company's Repurchase Option (as defined below).  After any Shares have
been released from such Repurchase Option, Purchaser shall not assign, encumber
or dispose of any interest in such Shares except in compliance with the
provisions below and applicable securities laws.

         (a)  Repurchase Option.
              -----------------

              (i) In the event of the voluntary or involuntary termination of
Purchaser's employment or consulting relationship with the Company for any
reason (including death or disability), with or without cause, the Company shall
upon the date of such termination (the "Termination Date") have an irrevocable,
                                        ----------------
exclusive option (the "Repurchase Option") for a period of 90 days from such
                       -----------------
date to repurchase all or any portion of the Shares held by Purchaser
<PAGE>

as of the Termination Date which have not yet been released from the Company's
Repurchase Option at the original purchase price per Share specified in Section
1 (adjusted for any stock splits, stock dividends and the like).

               (ii)  Unless the Company notifies Purchaser within 90 days from
the date of termination of Purchaser's employment or consulting relationship
that it does not intend to exercise its Repurchase Option with respect to some
or all of the Shares, the Repurchase Option shall be deemed automatically
exercised by the Company as of the 90th day following such termination, provided
that the Company may notify Purchaser that it is exercising its Repurchase
Option as of a date prior to such 90th day. Unless Purchaser is otherwise
notified by the Company pursuant to the preceding sentence that the Company does
not intend to exercise its Repurchase Option as to some or all of the Shares to
which it applies at the time of termination, execution of this Agreement by
Purchaser constitutes written notice to Purchaser of the Company's intention to
exercise its Repurchase Option with respect to all Shares to which such
Repurchase Option applies. The Company, at its choice, may satisfy its payment
obligation to Purchaser with respect to exercise of the Repurchase Option by
either (A) delivering a check to Purchaser in the amount of the purchase price
for the Shares being repurchased, or (B) in the event Purchaser is indebted to
the Company, canceling an amount of such indebtedness equal to the purchase
price for the Shares being repurchased, or (C) by a combination of (A) and (B)
so that the combined payment and cancellation of indebtedness equals such
purchase price. In the event of any deemed automatic exercise of the Repurchase
Option pursuant to this Section 3(a)(ii) in which Purchaser is indebted to the
Company, such indebtedness equal to the purchase price of the Shares being
repurchased shall be deemed automatically canceled as of the 90th day following
termination of Purchaser's employment or consulting relationship unless the
Company otherwise satisfies its payment obligations. As a result of any
repurchase of Shares pursuant to this Section 3(a), the Company shall become the
legal and beneficial owner of the Shares being repurchased and shall have all
rights and interest therein or related thereto, and the Company shall have the
right to transfer to its own name the number of Shares being repurchased by the
Company, without further action by Purchaser.

               (iii) 100 % of the Shares shall initially be subject to the
Repurchase Option.  1/4th of the total number of shares shall be released from
the Repurchase Option on the twelve month anniversary of the Vesting
Commencement Date (as set forth on the signature page of this Agreement), and an
additional 1/48th of the total number of Shares shall be released from the
Repurchase Option each month after the date of issuance of the Shares on the
Monthly Vesting Date (as set forth on the signature page of this Agreement),
until all Shares are released from the Repurchase Option.  Fractional shares
shall be rounded to the nearest whole share.

          (b)  Right of First Refusal.  Before any Shares held by Purchaser or
               ----------------------
any transferee of Purchaser (either being sometimes referred to herein as the
"Holder") may be sold or otherwise transferred (including transfer by gift or
-------
operation of law), the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this
Section 3(b) (the "Right of First Refusal").
                   ----------------------

                                      -2-
<PAGE>

          (i)   Notice of Proposed Transfer.  The Holder of the Shares shall
                ---------------------------
deliver to the Company a written notice (the "Notice") stating:  (A) the
                                              ------
Holder's bona fide intention to sell or otherwise transfer such Shares; (B) the
name of each proposed purchaser or other transferee ("Proposed Transferee"); (C)
                                                      -------------------
the number of Shares to be transferred to each Proposed Transferee; and (D) the
terms and conditions of each proposed sale or transfer.  The Holder shall offer
the Shares at the same price (the "Offered Price") and upon the same terms (or
                                   -------------
terms as similar as reasonably possible) to the Company or its assignee(s).

          (ii)  Exercise of Right of First Refusal.  At any time within 30 days
                ----------------------------------
after receipt of the Notice, the Company and/or its assignee(s) may, by giving
written notice to the Holder, elect to purchase all, but not less than all, of
the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection
(iii) below.

          (iii) Purchase Price.  The purchase price ("Purchase Price") for the
                --------------                        --------------
Shares purchased by the Company or its assignee(s) under this Section 3(b) shall
be the Offered Price.  If the Offered Price includes consideration other than
cash, the cash equivalent value of the non-cash consideration shall be
determined by the Board of Directors of the Company in good faith.

          (iv)  Payment.  Payment of the Purchase Price shall be made, at the
                -------
option of the Company or its assignee(s), in cash (by check), by cancellation of
all or a portion of any outstanding indebtedness of the Holder to the Company
(or, in the case of repurchase by an assignee, to the assignee), or by any
combination thereof within 30 days after receipt of the Notice or in the manner
and at the times set forth in the Notice.

          (v)   Holder's Right to Transfer. If all of the Shares proposed in the
                --------------------------
Notice to be transferred to a given Proposed Transferee are not purchased by the
Company and/or its assignee(s) as provided in this Section 3(b), then the Holder
may sell or otherwise transfer such Shares to that Proposed Transferee at the
Offered Price or at a higher price, provided that such sale or other transfer is
consummated within 60 days after the date of the Notice and provided further
that any such sale or other transfer is effected in accordance with any
applicable securities laws and the Proposed Transferee agrees in writing that
the provisions of this Section 3 shall continue to apply to the Shares in the
hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, or if the Holder
proposes to change the price or other terms to make them more favorable to the
Proposed Transferee, a new Notice shall be given to the Company, and the Company
and/or its assignees shall again be offered the Right of First Refusal before
any Shares held by the Holder may be sold or otherwise transferred.

          (vi)  Exception for Certain Family Transfers. Anything to the contrary
                --------------------------------------
contained in this Section 3(b) notwithstanding, the transfer of any or all of
the Shares during Purchaser's lifetime or on Purchaser's death by will or
intestacy to Purchaser's Immediate Family (as defined below) or to a trust for
the benefit of Purchaser's Immediate Family shall be exempt from the provisions
of this Section 3(b).  "Immediate Family" as used herein shall mean
                        ----------------

                                      -3-
<PAGE>

spouse, lineal descendant or antecedent, father, mother, brother or sister. In
such case, the transferee or other recipient shall receive and hold the Shares
so transferred subject to the provisions of this Section 3, and there shall be
no further transfer of such Shares except in accordance with the terms of this
Section 3.

          (c)  Involuntary Transfer.
               --------------------

               (i)  Company's Right to Purchase upon Involuntary Transfer. In
                    -----------------------------------------------------
the event, at any time after the date of this Agreement, of any transfer by
operation of law or other involuntary transfer (including divorce or death, but
excluding, in the event of death, a transfer to Immediate Family as set forth in
Section 3(b)(vi) above) of all or a portion of the Shares by the record holder
thereof, the Company shall have the right to purchase all of the Shares
transferred at the greater of the purchase price paid by Purchaser pursuant to
this Agreement or the Fair Market Value of the Shares on the date of transfer.
Upon such a transfer, the person acquiring the Shares shall promptly notify the
Secretary of the Company of such transfer. The right to purchase such Shares
shall be provided to the Company for a period of 30 days following receipt by
the Company of written notice by the person acquiring the Shares.

               (ii) Price for Involuntary Transfer. With respect to any stock to
                    ------------------------------
be transferred pursuant to Section 3(c)(i), the price per Share shall be a price
set by the Board of Directors of the Company that will reflect the current value
of the stock in terms of present earnings and future prospects of the Company.
The Company shall notify Purchaser or his or her executor of the price so
determined within 30 days after receipt by it of written notice of the transfer
or proposed transfer of Shares. However, if Purchaser does not agree with the
valuation as determined by the Board of Directors of the Company, Purchaser
shall be entitled to have the valuation determined by an independent appraiser
to be mutually agreed upon by the Company and Purchaser and whose fees shall be
borne equally by the Company and Purchaser.

          (d)  Assignment.  The right of the Company to purchase any part of the
               ----------
Shares may be assigned in whole or in part to any stockholder or stockholders of
the Company or other persons or organizations.

          (e)  Restrictions Binding on Transferees. All transferees of Shares or
               -----------------------------------
any interest therein will receive and hold such Shares or interest subject to
the provisions of this Agreement, including, insofar as applicable, the
Repurchase Option. In the event of any purchase by the Company hereunder where
the Shares or interest are held by a transferee, the transferee shall be
obligated, if requested by the Company, to transfer the Shares or interest to
the Purchaser for consideration equal to the amount to be paid by the Company
hereunder. In the event the Repurchase Option is deemed exercised by the Company
pursuant to Section 3(a)(ii) hereof, the Company may deem any transferee to have
transferred the Shares or interest to Purchaser prior to their purchase by the
Company, and payment of the purchase price by the Company to such transferee
shall be deemed to satisfy Purchaser's obligation to pay such transferee for
such Shares or interest, and also to satisfy the Company's obligation to pay
Purchaser for such Shares or interest. Any sale or transfer of the Shares shall
be void unless the provisions of this Agreement are satisfied.

                                      -4-
<PAGE>

          (f) Termination of Rights.  The Right of First Refusal and the
              ---------------------
Company's right to repurchase the Shares in the event of an involuntary transfer
pursuant to Section 3(c) above shall terminate upon the first sale of Common
Stock of the Company to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Securities Act").  Upon
                                                   --------------
termination of the Right of First Refusal and the expiration or exercise of the
Repurchase Option, a new certificate or certificates representing the Shares not
repurchased shall be issued, on request, without the legend referred to in
Section 6(a)(ii) below and delivered to Purchaser.

     4.   Escrow of Unvested Shares.  For purposes of facilitating the
          -------------------------
enforcement of the provisions of Section 3 above, Purchaser agrees, immediately
upon receipt of the certificate(s) for the Shares subject to the Repurchase
Option, to deliver such certificate(s), together with an Assignment Separate
from Certificate in the form attached to this Agreement as Exhibit A executed by
                                                           ---------
Purchaser and by Purchaser's spouse (if required for transfer), in blank, to the
Secretary of the Company, or the Secretary's designee, to hold such
certificate(s) and Assignment Separate from Certificate in escrow and to take
all such actions and to effectuate all such transfers and/or releases as are in
accordance with the terms of this Agreement.  Purchaser hereby acknowledges that
the Secretary of the Company, or the Secretary's designee, is so appointed as
the escrow holder with the foregoing authorities as a material inducement to
make this Agreement and that said appointment is coupled with an interest and is
accordingly irrevocable.  Purchaser agrees that said escrow holder shall not be
liable to any party hereof (or to any other party).  The escrow holder may rely
upon any letter, notice or other document executed by any signature purported to
be genuine and may resign at any time.  Purchaser agrees that if the Secretary
of the Company, or the Secretary's designee, resigns as escrow holder for any or
no reason, the Board of Directors of the Company shall have the power to appoint
a successor to serve as escrow holder pursuant to the terms of this Agreement.

     5.   Investment and Taxation Representations.  In connection with the
          ---------------------------------------
purchase of the Shares, Purchaser represents to the Company the following:

          (a) Purchaser is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Shares.  Purchaser is
purchasing the Shares for investment for his or her own account only and not
with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act.  Purchaser does not have any present
intention to transfer the Shares to any other person or entity.

          (b) Purchaser understands that the Shares have not been registered
under the Securities Act by reason of a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of Purchaser's
investment intent as expressed herein.

          (c) Purchaser understands that the Shares are "restricted securities"
under applicable U.S. federal and state securities laws and that, pursuant to
these laws, Purchaser must hold the Shares indefinitely unless they are
registered with the Securities and Exchange Commission and qualified by state
authorities, or an exemption from such registration and

                                      -5-
<PAGE>

qualification requirements is available. Purchaser acknowledges that the Company
has no obligation to register or qualify the Shares for resale. Purchaser
further acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and
requirements relating to the Company which are outside of Purchaser's control,
and which the Company is under no obligation and may not be able to satisfy.

          (d)  Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser's purchase or disposition of the Shares.
Purchaser represents that Purchaser has consulted any tax consultants Purchaser
deems advisable in connection the purchase or disposition of the Shares and that
Purchaser is not relying on the Company for any tax advice.

     6.   Restrictive Legends and Stop-Transfer Orders.
          --------------------------------------------

          (a)  Legends.  The certificate or certificates representing the Shares
               -------
shall bear the following legends (as well as any legends required by applicable
state and federal corporate and securities laws):

               (i)   THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                     REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN
                     ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
                     CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH
                     SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE
                     REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF
                     COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH
                     REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
                     1933.

               (ii)  THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE
                     TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN
                     AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY
                     OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

               (iii) IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS
                     SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY
                     CONSIDERATION THEREFOR, WITHOUT THE PRIOR WRITTEN CONSENT
                     OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF
                     CALIFORNIA,

                                      -6-
<PAGE>

                     EXCEPT AS PERMITTED IN THE COMMISSIONER'S RULES.

     Purchaser understands that transfer of the Shares may be restricted by
Section 260.141.11 of the Rules of the California Corporations Commissioner, a
copy of which is attached to this Agreement.

          (b) Stop-Transfer Notices.  Purchaser agrees that, in order to ensure
              ---------------------
compliance with the restrictions referred to herein, the Company may issue
appropriate "stop transfer" instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

          (c) Refusal to Transfer.  The Company shall not be required (i) to
              -------------------
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

     7.   No Employment Rights.  Nothing in this Agreement shall affect in any
          --------------------
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Purchaser's employment or consulting relationship,
for any reason, with or without cause.

     8.   Section 83(b) Election.  Purchaser understands that Section 83(a) of
          ----------------------
the Internal Revenue Code of 1986, as amended (the "Code"), taxes as ordinary
                                                    ----
income the difference between the amount paid for the Shares and the Fair Market
Value of the Shares as of the date any restrictions on the Shares lapse.  In
this context, "restriction" means the right of the Company to buy back the
               -----------
Shares pursuant to the Repurchase Option set forth in Section 3(a) of this
Agreement.  Purchaser understands that Purchaser may elect to be taxed at the
time the Shares are purchased, rather than when and as the Repurchase Option
expires, by filing an election under Section 83(b) (an "83(b) Election") of the
                                                        --------------
Code with the Internal Revenue Service within 30 days from the date of purchase.
Even if the Fair Market Value of the Shares at the time of the execution of this
Agreement equals the amount paid for the Shares, the election must be made to
avoid income under Section 83(a) in the future.  Purchaser understands that
failure to file such an election in a timely manner may result in adverse tax
consequences for Purchaser.  Purchaser further understands that an additional
copy of such election form should be filed with his or her federal income tax
return for the calendar year in which the date of this Agreement falls.
Purchaser acknowledges that the foregoing is only a summary of the effect of
United States federal income taxation with respect to purchase of the Shares
hereunder, and does not purport to be complete.  Purchaser further acknowledges
that the Company has directed Purchaser to seek independent advice regarding the
applicable provisions of the Code, the income tax laws of any municipality,
state or foreign country in which Purchaser may reside, and the tax consequences
of Purchaser's death.

          Purchaser agrees that he will execute and deliver to the Company with
this executed Agreement a copy of the Acknowledgment and Statement of Decision
Regarding

                                      -7-
<PAGE>

Section 83(b) Election (the "Acknowledgment"), attached hereto as Exhibit B.
                             --------------                       ---------
Purchaser further agrees that Purchaser will execute and submit with the
Acknowledgment a copy of the 83(b) Election, attached hereto as Exhibit C, if
                                                                ---------
Purchaser has indicated in the Acknowledgment his or her decision to make such
an election.

     9.   Market Standoff Agreement.  In connection with the initial public
          -------------------------
offering of the Company's securities and upon request of the Company or the
underwriters managing such underwritten offering of the Company's securities,
Purchaser agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any Shares (other than those included
in the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed 180
days) from the effective date of such registration as may be requested by the
Company or such managing underwriters and to execute an agreement reflecting the
foregoing as may be requested by the underwriters at the time of the Company's
initial public offering.

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

          (a)  Governing Law.  This Agreement and all acts and transactions
               -------------
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.

          (b)  Entire Agreement; Enforcement of Rights.  This Agreement sets
               ---------------------------------------
forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them. No
modification of or amendment to this Agreement, nor any waiver of any rights
under this Agreement, shall be effective unless in writing signed by the parties
to this Agreement. The failure by either party to enforce any rights under this
Agreement shall not be construed as a waiver of any rights of such party.

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

          (d)  Construction.  This Agreement is the result of negotiations
               ------------
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

          (e)  Notices. Any notice required or permitted by this Agreement shall
               -------
be in writing and shall be deemed sufficient when delivered personally or sent
by telegram or fax or 48 hours after being deposited in the U.S. mail, as
certified or registered mail, with postage prepaid, and addressed to the party
to be notified at such party's address as set forth below or as subsequently
modified by written notice.

                                      -8-
<PAGE>

          (f)  Counterparts.  This Agreement may be executed in two or more
               ------------
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

          (g)  Successors and Assigns. The rights and benefits of this Agreement
               ----------------------
shall inure to the benefit of, and be enforceable by the Company's successors
and assigns. The rights and obligations of Purchaser under this Agreement may
only be assigned with the prior written consent of the Company.

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

                           [Signature Page Follows]

                                      -9-
<PAGE>

     The parties have executed this Agreement as of the date first set forth
above.

                                             REPLAYTV, INC.

                                             By:________________________________

                                             Title:_____________________________

                                             Address:
                                             1945 Charleston Road
                                             Mt. View, CA 94043

                                             PURCHASER:

                                             ((PURCHASER))

                                             ___________________________________
                                             (Signature)

                                             Address:
                                             ((PurchaserAddress1))
                                             ((PurchaserAddress2))

Vesting Commencement
Date: ((VestingCommenceDate))

Monthly Vesting
Date: ((MonthlyVestingDate))

I, ________________________________, spouse of ((Purchaser)), have read and
hereby approve the foregoing Agreement. In consideration of the Company's
granting my spouse the right to purchase the Shares as set forth in the
Agreement, I hereby agree to be irrevocably bound by the Agreement and further
agree that any community property or similar interest that I may have in the
Shares shall be similarly bound by the Agreement. I hereby appoint my spouse as
my attorney-in-fact with respect to any amendment or exercise of any rights
under the Agreement.

                                             ___________________________________
                                             Spouse of ((Purchaser))

                                      -10-
<PAGE>

                                   EXHIBIT A
                                   ---------

                     ASSIGNMENT SEPARATE FROM CERTIFICATE
                     ------------------------------------

     FOR VALUE RECEIVED and pursuant to that certain Restricted Stock Purchase
Agreement between the undersigned ("Purchaser") and ReplayTV, Inc. (the
                                    ---------
"Company") dated _______________, ____ (the "Agreement"), Purchaser hereby
 -------                                     ---------
sells, assigns and transfers unto the Company _________________________________
(________) shares of the Common Stock of the Company, standing in Purchaser's
name on the books of the Company and represented by Certificate No. ____, and
hereby irrevocably constitutes and appoints
________________________________________________ to transfer said stock on the
books of the Company with full power of substitution in the premises.  THIS
ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND THE EXHIBITS
THERETO.

Dated: ______________________

                                        Signature:

                                        ________________________________________
                                        ((Purchaser))

                                        ________________________________________
                                        Spouse of ((Purchaser)) (if applicable)

Instruction: Please do not fill in any blanks other than the signature line. The
purpose of this assignment is to enable the Company to exercise its repurchase
option set forth in the Agreement without requiring additional signatures on the
part of Purchaser.
<PAGE>

                                   EXHIBIT B
                                   ---------

                   ACKNOWLEDGMENT AND STATEMENT OF DECISION
                   ----------------------------------------
                       REGARDING SECTION 83(b) ELECTION
                       --------------------------------

     The undersigned (which term includes the undersigned's spouse), a purchaser
of ((NoofShares)) shares of Common Stock of ReplayTV, Inc., a Delaware
corporation (the "Company") by exercise of stock purchase right (the "Right")
                  -------                                             -----
granted pursuant to the Company's 1999 Stock Plan (the "Plan"), hereby states as
                                                        ----
follows:

     1.   The undersigned acknowledges receipt of a copy of the Plan relating to
the offering of such shares. The undersigned has carefully reviewed the Plan and
the stock purchase agreement pursuant to which the Right was granted.

     2.   The undersigned either [check and complete as applicable]:

     (a) ____ has consulted, and has been fully advised by, the undersigned's
          own tax advisor, __________________________, whose business address is
          _____________________________, regarding the federal, state and local
          tax consequences of purchasing shares under the Plan, and particularly
          regarding the advisability of making elections pursuant to Section
          83(b) of the Internal Revenue Code of 1986, as amended (the "Code")
                                                                       ----
          and pursuant to the corresponding provisions, if any, of applicable
          state law; or

     (b) ____ has knowingly chosen not to consult such a tax advisor.

     3.   The undersigned hereby states that the undersigned has decided [check
as applicable]:

     (a) ____ to make an election pursuant to Section 83(b) of the Code, and is
          submitting to the Company, together with the undersigned's executed
          Restricted Stock Purchase Agreement, an executed form entitled
          "Election Under Section 83(b) of the Internal Revenue Code of 1986;"
          or

     (b) ____ not to make an election pursuant to Section 83(b) of the Code.
<PAGE>

     4.  Neither the Company nor any subsidiary or representative of the Company
has made any warranty or representation to the undersigned with respect to the
tax consequences of the undersigned's purchase of shares under the Plan or of
the making or failure to make an election pursuant to Section 83(b) of the Code
or the corresponding provisions, if any, of applicable state law.

Date:_____________________                   ___________________________________
                                             ((Purchaser))

Date:_____________________                   ___________________________________
                                             Spouse of ((Purchaser))
<PAGE>

                                   EXHIBIT C
                                   ---------

                         ELECTION UNDER SECTION 83(b)
                         ----------------------------
                     OF THE INTERNAL REVENUE CODE OF 1986
                     ------------------------------------

     The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the
Internal Revenue Code, to include in taxpayer's gross income for the current
taxable year, the amount of any compensation taxable to taxpayer in connection
with taxpayer's receipt of the property described below:

1.   The name, address, taxpayer identification number and taxable year of the
     undersigned are as follows:

     NAME OF TAXPAYER: ((Purchaser))

     NAME OF SPOUSE: ________________

     ADDRESS:            ((PurchaserAddress1))
                         ((PurchaserAddress2))

     IDENTIFICATION NO. OF TAXPAYER: _______________

     IDENTIFICATION NO. OF SPOUSE: _______________

     TAXABLE YEAR: _______________

2.   The property with respect to which the election is made is described as
     follows:

     _______________ shares of the Common Stock of ReplayTV, Inc., a Delaware
     corporation (the "Company").
                       -------

3.   The date on which the property was transferred is:  _______________

4.   The property is subject to the following restrictions:

     Repurchase option at cost in favor of the Company upon termination of
     taxpayer's employment or consulting relationship.

5.   The fair market value at the time of transfer, determined without regard to
     any restriction other than a restriction which by its terms will never
     lapse, of such property is: $_______________.

6.   The amount (if any) paid for such property: $______________

The undersigned has submitted a copy of this statement to the person for whom
the services were performed in connection with the undersigned's receipt of the
above-described property. The transferee of such property is the person
performing the services in connection with the transfer of said property.

The undersigned understands that the foregoing election may not be revoked
--------------------------------------------------------------------------
except with the consent of the Commissioner.
-------------------------------------------

Dated: ___________________              ________________________________________
                                        ((Purchaser))

Dated: ___________________              ________________________________________
                                        Spouse of ((Purchaser))
<PAGE>

             STATE OF CALIFORNIA - CALIFORNIA ADMINISTRATIVE CODE
             ----------------------------------------------------
        Title 10. Investment - Chapter 3. Commissioner of Corporations

                     260.141.11: Restriction on Transfer.
                     ----------  -----------------------

     (a)  The issuer of any security upon which a restriction on transfer has
been imposed pursuant to Sections 260.102.6, 260.141.10 or 260.534 shall cause a
copy of this section to be delivered to each issuee or transferee of such
security at the time the certificate evidencing the security is delivered to the
issuee or transferee.

     (b)  It is unlawful for the holder of any such security to consummate a
sale or transfer of such security, or any interest therein, without the prior
written consent of the Commissioner (until this condition is removed pursuant to
Section 260.141.12 of these rules), except:

          (1)  to the issuer;
          (2)  pursuant to the order or process of any court;
          (3)  to any person described in Subdivision (i) of Section 25102 of
     the Code or Section 260.105.14 of these rules;
          (4)  to the transferor's ancestors, descendants or spouse, or any
     custodian or trustee for the account of the transferor or the transferor's
     ancestors, descendants, or spouse; or to a transferee by a trustee or
     custodian for the account of the transferee or the transferee's ancestors,
     descendants or spouse;
          (5)  to holders of securities of the same class of the same issuer;
          (6)  by way of gift or donation inter vivos or on death;
          (7)  by or through a broker-dealer licensed under the Code (either
     acting as such or as a finder) to a resident of a foreign state, territory
     or country who is neither domiciled in this state to the knowledge of the
     broker-dealer, nor actually present in this state if the sale of such
     securities is not in violation of any securities law of the foreign state,
     territory or country concerned;
          (8)  to a broker-dealer licensed under the Code in a principal
     transaction, or as an underwriter or member of an underwriting syndicate or
     selling group;
          (9)  if the interest sold or transferred is a pledge or other lien
     given by the purchaser to the seller upon a sale of the security for which
     the Commissioner's written consent is obtained or under this rule not
     required;
          (10) by way of a sale qualified under Sections 25111, 25112, 25113 or
     25121 of the Code, of the securities to be transferred, provided that no
     order under Section 25140 or Subdivision (a) of Section 25143 is in effect
     with respect to such qualification;
          (11) by a corporation to a wholly owned subsidiary of such
     corporation, or by a wholly owned subsidiary of a corporation to such
     corporation;
          (12) by way of an exchange qualified under Section 25111, 25112 or
     25113 of the Code, provided that no order under Section 25140 or
     Subdivision (a) of Section 25143 is in effect with respect to such
     qualification;
          (13) between residents of foreign states, territories or countries who
     are neither domiciled nor actually present in this state;
          (14) to the State Controller pursuant to the Unclaimed Property Law or
     to the administrator of the unclaimed property law of another state;
          (15) by the State Controller pursuant to the Unclaimed Property Law or
     by the administrator of the unclaimed property law of another state if, in
     either such case, such person (i) discloses to potential purchasers at the
     sale that transfer of the securities is restricted under this rule, (ii)
     delivers to each purchaser a copy of this rule, and (iii) advises the
     Commissioner of the name of each purchaser;
          (16) by a trustee to a successor trustee when such transfer does not
     involve a change in the beneficial ownership of the securities; or
          (17) by way of an offer and sale of outstanding securities in an
     issuer transaction that is subject to the qualification requirement of
     Section 25110 of the Code but exempt from that qualification requirement by
     subdivision (f) of Section 25102;

provided that any such transfer is on the condition that any certificate
evidencing the security issued to such transferee shall contain the legend
required by this section.

     (c)  The certificates representing all such securities subject to such a
restriction on transfer, whether upon initial issuance or upon any transfer
thereof, shall bear on their face a legend, prominently stamped or printed
thereon in capital letters of not less than 10-point size, reading as follows:

               "IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS
SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR,
WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE
STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER'S RULES."

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