Document:

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                                                                EXHIBIT 10.7

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of November
10, 2000, by and among busybox.com inc, a Delaware corporation, with its
principal office located at 1900 Avenue of the Stars, Suite 680, Century City,
California 90067 (the "COMPANY"), and the undersigned investors (each, an
"INVESTOR" and collectively, the "INVESTORS").

         WHEREAS:

         A. In connection with the Equity Line of Credit Agreement by and among
the parties hereto of even date herewith (the "CREDIT AGREEMENT"), the Company
has agreed, upon the terms and subject to the conditions of the Credit
Agreement, to issue and sell to the Investors that number of shares of the
Company's common stock, par value $0.01 per share (the "COMMON STOCK"), which
can be purchased pursuant to the terms of the Credit Agreement for an aggregate
purchase price of up to $5,000,000. Capitalized terms not defined herein shall
have the meaning ascribed to them in the Credit Agreement.

         B. To induce the Investors to execute and deliver the Credit Agreement,
the Company has agreed to provide certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations there under,
or any similar successor statute (collectively, the "1933 ACT"), and applicable
state securities laws.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Investors hereby agree as follows:

          1. DEFINITIONS.

          As used in this Agreement, the following terms shall have the
following meanings:

          a. "INVESTOR" means an Investor and any transferee or assignee thereof
to whom an Investor assigns its rights under this Agreement and who agrees to
become bound by the provisions of this Agreement in accordance with Section 9.

          b. "PERSON" means a corporation, a limited liability company, an
association, a partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental agency.

          c. "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
3registration effected by preparing and filing one or more Registration
Statements (as defined below) in compliance with the 1933 Act and pursuant to
Rule 415 under the 1933 Act or any successor rule providing for offering
securities on a continuous or delayed basis ("RULE 415"), and the declaration or
ordering of

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effectiveness of such Registration Statement(s) by the United States Securities
and Exchange Commission (the "SEC").

          d. "REGISTRABLE SECURITIES" means the shares of Common Stock issuable
to Investors pursuant to the Credit Agreement.

          e. "REGISTRATION STATEMENT" means a registration statement under the
1933 Act which covers the Registrable Securities.

     2.   REGISTRATION.

          a. MANDATORY REGISTRATION. The Company shall prepare and file with the
SEC a Registration Statement on Form S-3 covering the resale of all of the
Registrable Securities. In the event that Form S-3 is unavailable for such a
registration, the Company shall use such other form as is available for such a
registration, subject to the provisions of Section 2(d). The Company shall cause
such Registration Statement to be declared effective by the SEC prior to the
first sale to Investors of the Company's Common Stock pursuant to the Credit
Agreement.

          b. INELIGIBILITY FOR FORM S-3. In the event that Form S-3 is not
available for the registration of Registrable Securities hereunder, the Company
shall (i) register the sale of the Registrable Securities on another appropriate
form and (ii) undertake to register the Registrable Securities on Form S-3 as
soon as such form is available, provided that the Company shall maintain the
effectiveness of the Registration Statement then in effect until such time as a
Registration Statement on Form S-3 covering the Registrable Securities has been
declared effective by the SEC.

          c. SUFFICIENT NUMBER OF SHARES REGISTERED. In the event the number of
shares available under a Registration Statement filed pursuant to Section 2(a)
is insufficient to cover all of the Registrable Securities which Investors have
purchased pursuant to the Credit Agreement, the Company shall amend the
Registration Statement, or file a new Registration Statement (on the short form
available therefore, if applicable), or both, so as to cover all of such
Registrable Securities which Investors have purchased pursuant to the Credit
Agreement as soon as practicable, but in any event not later than fifteen (15)
days after the necessity therefore arises. The Company shall use it best efforts
to cause such amendment and/or new Registration Statement to become effective as
soon as practicable following the filing thereof. For purposes of the foregoing
provision, the number of shares available under a Registration Statement shall
be deemed "insufficient to cover all of the Registrable Securities" if at any
time the number of Registrable Securities issuable on an Advance Notice Date is
greater than the number of shares available for resale under such Registration
Statement.

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     3.   RELATED OBLIGATIONS.

          a. The Company shall keep the Registration Statement effective
pursuant to Rule 415 at all times until the date on which the Investor shall
have sold all the Registrable Securities covered by such Registration Statement
(the "REGISTRATION PERIOD"), which Registration Statement (including any
amendments or supplements thereto and prospectuses contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statements therein, in
light of the circumstances in which they were made, not misleading.

          b. The Company shall prepare and file with the SEC such amendments
(including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration
Statement, which prospectus is to be filed pursuant to Rule 424 promulgated
under the 1933 Act, as may be necessary to keep such Registration Statement
effective at all times during the Registration Period, and, during such period,
comply with the provisions of the 1933 Act with respect to the disposition of
all Registrable Securities of the Company covered by such Registration Statement
until such time as all of such Registrable Securities shall have been disposed
of in accordance with the intended methods of disposition by the seller or
sellers thereof as set forth in such Registration Statement. In the case of
amendments and supplements to a Registration Statement which are required to be
filed pursuant to this Agreement (including pursuant to this Section 3(b)) by
reason of the Company's filing a report on Form 10-K, Form 10-Q or Form 8-K or
any analogous report under the Securities Exchange Act of 1934, as amended (the
"1934 ACT"), the Company shall have incorporated such report by reference into
the Registration Statement, if applicable, or shall file such amendments or
supplements with the SEC on the same day on which the 1934 Act report is filed
which created the requirement for the Company to amend or supplement the
Registration Statement.

          c. The Company shall furnish to each Investor whose Registrable
Securities are included in any Registration Statement, without charge, (i) at
least one copy of such Registration Statement as declared effective by the SEC
and any amendment(s) thereto, including financial statements and schedules, all
documents incorporated therein by reference, all exhibits and each preliminary
prospectus, (ii) ten (10) copies of the final prospectus included in such
Registration Statement and all amendments and supplements thereto (or such other
number of copies as such Investor may reasonably request) and (iii) such other
documents as such Investor may reasonably request from time to time in order to
facilitate the disposition of the Registrable Securities owned by such Investor.

          d. The Company shall use its best efforts to (i) register and qualify
the Registrable Securities covered by a Registration Statement under such other
securities or "blue sky" laws of such jurisdictions in the United States as any
Investor reasonably requests, (ii) prepare and file in those jurisdictions, such
amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period, (iii) take such other
actions as may be necessary to maintain such

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registrations and qualifications in effect at all times during the Registration
Period, and (iv) take all other actions reasonably necessary or advisable to
qualify the Registrable Securities for sale in such jurisdictions; provided,
however, that the Company shall not be required in connection therewith or as a
condition thereto to (w) make any change to its certificate of incorporation or
by-laws, (x) qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(d), (y) subject itself
to general taxation in any such jurisdiction, or (z) file a general consent to
service of process in any such jurisdiction. The Company shall promptly notify
each Investor who holds Registrable Securities of the receipt by the Company of
any notification with respect to the suspension of the registration or
qualification of any of the Registrable Securities for sale under the securities
or "blue sky" laws of any jurisdiction in the United States or its receipt of
actual notice of the initiation or threat of any proceeding for such purpose.

          e. As promptly as practicable after becoming aware of such event or
development, the Company shall notify each Investor in writing of the happening
of any event as a result of which the prospectus included in a Registration
Statement, as then in effect, includes an untrue statement of a material fact or
omission to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading (provided that in no event shall such notice contain any
material, nonpublic information), and promptly prepare a supplement or amendment
to such Registration Statement to correct such untrue statement or omission, and
deliver ten (10) copies of such supplement or amendment to each Investor. The
Company shall also promptly notify each Investor in writing (i) when a
prospectus or any prospectus supplement or post-effective amendment has been
filed, and when a Registration Statement or any post-effective amendment has
become effective (notification of such effectiveness shall be delivered to each
Investor by facsimile on the same day of such effectiveness), (ii) of any
request by the SEC for amendments or supplements to a Registration Statement or
related prospectus or related information, and (iii) of the Company's reasonable
determination that a post-effective amendment to a Registration Statement would
be appropriate.

          f. The Company shall use its best efforts to prevent the issuance of
any stop order or other suspension of effectiveness of a Registration Statement,
or the suspension of the qualification of any of the Registrable Securities for
sale in any jurisdiction within the United States of America and, if such an
order or suspension is issued, to obtain the withdrawal of such order or
suspension at the earliest possible moment and to notify each Investor who holds
Registrable Securities being sold of the issuance of such order and the
resolution thereof or its receipt of actual notice of the initiation or threat
of any proceeding for such purpose.

          g. At the reasonable request of any Investor, the Company shall
furnish to such Investor, on the date of the effectiveness of the Registration
Statement and thereafter from time to time on such dates as an Investor may
reasonably request (i) a letter, dated such date, from the Company's independent
certified public accountants in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten
public offering, and (ii) an opinion, dated as of such date, of counsel
representing the Company for purposes of such Registration Statement, in form,
scope and substance as is customarily given in an underwritten public offering,
addressed to the Investors.

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          h. The Company shall make available for inspection by (i) any Investor
and (ii) one firm of accountants or other agents retained by the Investors
(collectively, the "INSPECTORS") all pertinent financial and other records, and
pertinent corporate documents and properties of the Company (collectively, the
"RECORDS"), as shall be reasonably deemed necessary by each Inspector, and cause
the Company's officers, directors and employees to supply all information which
any Inspector may reasonably request; provided, however, that each Inspector
shall agree, and each Investor hereby agrees, to hold in strict confidence and
shall not make any disclosure (except to an Investor) or use of any Record or
other information which the Company determines in good faith to be confidential,
and of which determination the Inspectors are so notified, unless (a) the
disclosure of such Records is necessary to avoid or correct a misstatement or
omission in any Registration Statement or is otherwise required under the 1933
Act, (b) the release of such Records is ordered pursuant to a final,
non-appealable subpoena or order from a court or government body of competent
jurisdiction, or (c) the information in such Records has been made generally
available to the public other than by disclosure in violation of this or any
other agreement of which the Inspector and the Investor has knowledge. Each
Investor agrees that it shall, upon learning that disclosure of such Records is
sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt notice to the Company and allow the Company, at
its expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, the Records deemed confidential.

          i. The Company shall hold in confidence and not make any disclosure of
information concerning an Investor provided to the Company unless (i) disclosure
of such information is necessary to comply with federal or state securities
laws, (ii) the disclosure of such information is necessary to avoid or correct a
misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other final,
non-appealable order from a court or governmental body of competent
jurisdiction, or (iv) such information has been made generally available to the
public other than by disclosure in violation of this Agreement or any other
agreement. The Company agrees that it shall, upon learning that disclosure of
such information concerning an Investor is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt
written notice to such Investor and allow such Investor, at the Investor's
expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

          j. The Company shall use its best efforts either to cause all the
Registrable Securities covered by a Registration Statement (i) to be listed on
each securities exchange on which securities of the same class or series issued
by the Company are then listed, if any, if the listing of such Registrable
Securities is then permitted under the rules of such exchange or (ii) secure
designation and quotation of all the Registrable Securities covered by the
Registration Statement on the Nasdaq National Market or The Nasdaq SmallCap
Market or, if, despite the Company's best efforts to satisfy the preceding
clause (i) or (ii), the Company is unsuccessful in satisfying the preceding
clause (i) or (ii), to secure the inclusion for quotation on the National
Association of Securities Dealers, Inc. OTC Bulletin Board for such Registrable
Securities. The Company shall pay all fees and expenses in connection with
satisfying its obligation under this Section 3(j).

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          k. The Company shall cooperate with the Investors who hold Registrable
Securities being offered and, to the extent applicable, to facilitate the timely
preparation and delivery of certificates (not bearing any restrictive legend)
representing the Registrable Securities to be offered pursuant to a Registration
Statement and enable such certificates to be in such denominations or amounts,
as the case may be, as the Investors may reasonably request and registered in
such names as the Investors may request.

          l. The Company shall use its best efforts to cause the Registrable
Securities covered by the applicable Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary to consummate the disposition of such Registrable Securities.

          m. The Company shall make generally available to its security holders
as soon as practical, but not later than 90 days after the close of the period
covered thereby, an earnings statement (in form complying with the provisions of
Rule 158 under the 1933 Act) covering a twelve-month period beginning not later
than the first day of the Company's fiscal quarter next following the effective
date of the Registration Statement.

          n. The Company shall otherwise use its best efforts to comply with all
applicable rules and regulations of the SEC in connection with any registration
hereunder.

          o. Within two (2) business days after a Registration Statement which
covers Registrable Securities is ordered effective by the SEC, the Company shall
deliver, and shall cause legal counsel for the Company to deliver, to the
transfer agent for such Registrable Securities (with copies to the Investors
whose Registrable Securities are included in such Registration Statement)
confirmation that such Registration Statement has been declared effective by the
SEC in the form attached hereto as EXHIBIT A.

          p. The Company shall take all other reasonable actions necessary to
expedite and facilitate disposition by the Investors of Registrable Securities
pursuant to a Registration Statement.

     4.   OBLIGATIONS OF THE INVESTORS.

         Each Investor agrees that, upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 3(f) or the first
sentence of 3(e), such Investor will immediately discontinue disposition of
Registrable Securities pursuant to any Registration Statement(s) covering such
Registrable Securities until such Investor's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(e) or receipt of
notice that no supplement or amendment is required. Notwithstanding anything to
the contrary, the Company shall cause its transfer agent to deliver unlegended
certificates for shares of Common Stock to a transferee of an Investor in
accordance with the terms of the Credit Agreement in connection with any sale of
Registrable Securities with respect to which an Investor has entered into

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a contract for sale prior to the Investor's receipt of a notice from the Company
of the happening of any event of the kind described in Section 3(f) or the first
sentence of 3(e) and for which the Investor has not yet settled.

     5.   EXPENSES OF REGISTRATION.

         All expenses incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printers, legal and accounting
fees shall be paid by the Company.

     6.   INDEMNIFICATION.

         With respect to Registrable Securities which are included in a
Registration Statement under this Agreement:

         a. To the fullest extent permitted by law, the Company will, and hereby
does, indemnify, hold harmless and defend each Investor, the directors,
officers, partners, employees, agents, representatives of, and each Person, if
any, who controls any Investor within the meaning of the 1933 Act or the 1934
Act (each, an "INDEMNIFIED PERSON"), against any losses, claims, damages,
liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys'
fees, amounts paid in settlement or expenses, joint or several (collectively,
"CLAIMS") incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal taken from the foregoing by
or before any court or governmental, administrative or other regulatory agency,
body or the SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("INDEMNIFIED DAMAGES"), to which any of them
may become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered ("BLUE SKY FILING"), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading; (ii) any untrue statement or alleged untrue statement of
a material fact contained in any final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC)
or the omission or alleged omission to state therein any material fact necessary
to make the statements made therein, in light of the circumstances under which
the statements therein were made, not misleading; or (iii) any violation or
alleged violation by the Company of the 1933 Act, the 1934 Act, any other law,
including, without limitation, any state securities law, or any rule or
regulation there under relating to the offer or sale of the Registrable
Securities pursuant to a Registration Statement (the matters in the foregoing
clauses (i) through (iii) being, collectively, "VIOLATIONS"). The Company shall
reimburse the Investors and each such controlling person promptly as such
expenses are incurred and are due and payable, for any legal fees or
disbursements or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this
Section 6(a): (x) shall not apply to a Claim by an

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Indemnified Person arising out of or based upon a Violation which occurs in
reliance upon and in conformity with information furnished in writing to the
Company by such Indemnified Person expressly for use in connection with the
preparation of the Registration Statement or any such amendment thereof or
supplement thereto; (y) shall not be available to the extent such Claim is based
on a failure of the Investor to deliver or to cause to be delivered the
prospectus made available by the Company, if such prospectus was timely made
available by the Company pursuant to Section 3(d); and (z) shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of the Company, which consent shall not be
unreasonably withheld. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person
and shall survive the transfer of the Registrable Securities by the Investors
pursuant to Section 9.

          b. In connection with a Registration Statement, each Investor agrees
to severally and not jointly indemnify, hold harmless and defend, to the same
extent and in the same manner as is set forth in Section 6(a), the Company, each
of its directors, each of its officers who signs the Registration Statement and
each Person, if any, who controls the Company within the meaning of the 1933 Act
or the 1934 Act (each an "INDEMNIFIED PARTY"), against any Claim or Indemnified
Damages to which any of them may become subject, under the 1933 Act, the 1934
Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or
is 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 to the Company by such Investor expressly for use in
connection with such Registration Statement; and, subject to Section 6(d), such
Investor will reimburse any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such Claim; provided, however,
that the indemnity agreement contained in this Section 6(b) and the agreement
with respect to contribution contained in Section 7 shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior
written consent of such Investor, which consent shall not be unreasonably
withheld; provided, further, however, that the Investor shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified Damages as does
not exceed the net proceeds to such Investor as a result of the sale of
Registrable Securities pursuant to such Registration Statement. Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified Party and shall survive the transfer of the
Registrable Securities by the Investors pursuant to Section 9. Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(b) with respect to any prospectus shall not inure to
the benefit of any Indemnified Party if the untrue statement or omission of
material fact contained in the prospectus was corrected and such new prospectus
was delivered to each Investor prior to such Investor's use of the prospectus to
which the Claim relates.

          c. Promptly after receipt by an Indemnified Person or Indemnified
Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim,
such Indemnified Person or Indemnified Party shall, if a Claim in respect
thereof is to be made against any indemnifying party under this Section 6,
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

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desires, jointly with any other indemnifying party similarly noticed, to assume
control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses of not
more than one counsel for such Indemnified Person or Indemnified Party to be
paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the
Indemnified Person or Indemnified Party and the indemnifying party would be
inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. In the case of an Indemnified Person, legal counsel
referred to in the immediately preceding sentence shall be selected by the
Investors holding a majority in interest of the Registrable Securities included
in the Registration Statement to which the Claim relates. The Indemnified Party
or Indemnified Person shall cooperate fully with the indemnifying party in
connection with any negotiation or defense of any such action or claim by the
indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or claim. The indemnifying party shall keep the
Indemnified Party or Indemnified Person fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto. No
indemnifying party shall be liable for any settlement of any action, claim or
proceeding effected without its prior written consent, provided, however, that
the indemnifying party shall not unreasonably withhold, delay or condition its
consent. No indemnifying party shall, without the prior written consent of the
Indemnified Party or Indemnified Person, consent to entry of any judgment or
enter into any settlement or other compromise which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party or Indemnified Person of a release from all liability in
respect to such claim or litigation. Following indemnification as provided for
hereunder, the indemnifying party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made.
The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the indemnifying party is
prejudiced in its ability to defend such action.

          d. The indemnification required by this Section 6 shall be made by
periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

          e. The indemnity agreements contained herein shall be in addition to
(i) any cause of action or similar right of the Indemnified Party or Indemnified
Person against the indemnifying party or others, and (ii) any liabilities the
indemnifying party may be subject to pursuant to the law.

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     7.   CONTRIBUTION.

         To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable Securities guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any seller of Registrable Securities who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds received by
such seller from the sale of such Registrable Securities.

     8.   REPORTS UNDER THE 1934 ACT.

         With a view to making available to the Investors the benefits of Rule
144 promulgated under the 1933 Act or any similar rule or regulation of the SEC
that may at any time permit the Investors to sell securities of the Company to
the public without registration ("RULE 144") the Company agrees to:

          a. make and keep public information available, as those terms are
understood and defined in Rule 144;

          b. file with the SEC in a timely manner all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company remains subject to such requirements (it being understood that
nothing herein shall limit the Company's obligations under Section 4(c) of the
Credit Agreement) and the filing of such reports and other documents is required
for the applicable provisions of Rule 144; and

          c. furnish to each Investor so long as such Investor owns Registrable
Securities, promptly upon request, (i) a written statement by the Company that
it has complied with the reporting requirements of Rule 144, the 1933 Act and
the 1934 Act, (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 to permit the Investors to
sell such securities pursuant to Rule 144 without registration.

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     9.   ASSIGNMENT OF REGISTRATION RIGHTS.

         The rights under this Agreement shall be automatically assignable by
the Investors to any transferee of all or any portion of Registrable Securities
if: (i) the Investor agrees in writing with the transferee or assignee to assign
such rights, and a copy of such agreement is furnished to the Company within a
reasonable time after such assignment; (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (a) the
name and address of such transferee or assignee, and (b) the securities with
respect to which such registration rights are being transferred or assigned;
(iii) at or before the time the Company receives the written notice contemplated
by clause (ii) of this sentence the transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein; and (iv)
such transfer shall have been made in accordance with the applicable
requirements of the Credit Agreement.

     10.  AMENDMENT OF REGISTRATION RIGHTS.

         Provisions of this Agreement may be amended and the observance thereof
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and Investors who then hold at least two-thirds (2/3) of the Registrable
Securities. Any amendment or waiver effected in accordance with this Section 10
shall be binding upon each Investor and the Company. No such amendment shall be
effective to the extent that it applies to fewer than all of the holders of the
Registrable Securities. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of this
Agreement unless the same consideration also is offered to all of the parties to
this Agreement.

     11.  MISCELLANEOUS.

          a. A Person is deemed to be a holder of Registrable Securities
whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

         b. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in writing and
will be deemed to have been delivered: (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one business day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such
communications shall be:

         If to the Company:

            BUSYBOX.COM  INC.

                                       11
<PAGE>

            Telephone:  (410) 820-0626
            Facsimile:  (410) 770-9150
            Attention:  Patrick A. Grotto, Chairman & Chief Executive Officer

If to an Investor, to its address and facsimile number on the Schedule of
Investors attached hereto, with copies to such Investor's representatives as set
forth on the Schedule of Investors or to such other address and/or facsimile
number and/or to the attention of such other person as the recipient party has
specified by written notice given to each other party five days prior to the
effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B)
mechanically or electronically generated by the sender's facsimile machine
containing the time, date, recipient facsimile number and an image of the first
page of such transmission or (C) provided by a courier or overnight courier
service shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

         c. Failure of any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

         d. The corporate laws of the State of Delaware shall govern all issues
concerning the relative rights of the Company and the Investors as its
stockholders. All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of New York or
any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of New York. Each party hereby irrevocably
submits to the non-exclusive jurisdiction of the state and federal courts
sitting in the City of New York, Borough of Manhattan, for the adjudication of
any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. If any provision of this Agreement shall
be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER

                                       12
<PAGE>

OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

         e. This Agreement, the Credit Agreement and the Escrow Agreement
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement, the Credit Agreement and the Escrow Agreement supersede
all prior agreements and understandings among the parties hereto with respect to
the subject matter hereof and thereof.

         f. Subject to the requirements of Section 9, this Agreement shall inure
to the benefit of and be binding upon the permitted successors and assigns of
each of the parties hereto.

         g. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

         h. This Agreement may be executed in identical counterparts, each of
which shall be deemed an original but all of which shall constitute one and the
same agreement. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement
bearing the signature of the party so delivering this Agreement.

         i. Each party shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.

         j. All consents and other determinations to be made by the Investors
pursuant to this Agreement shall be made, unless otherwise specified in this
Agreement, by Investors holding a majority of the Registrable Securities.

         k. The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent and no rules of
strict construction will be applied against any party.

         l. This Agreement is intended for the benefit of the parties hereto and
their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person.

                                       13
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be duly executed as of day and year first above written.

                                 BUSYBOX.COM  INC.

                                 By: /S/ PATRICK A. GROTTO
                                     ------------------------------------
                                     Name: Patrick A. Grotto
                                     Title: Chairman & Chief Executive Officer

                                 INVESTOR

                                 By: /s/ Diego Davis
                                     ------------------------------------
                                     Name: Diego Davis
                                     Title:

                                       14
<PAGE>

                              SCHEDULE OF INVESTORS

<TABLE>
<CAPTION>
                                          INVESTOR ADDRESS                   INVESTOR'S REPRESENTATIVES' ADDRESS
        INVESTOR NAME                   AND FACSIMILE NUMBER                         AND FACSIMILE NUMBER
-------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                                  <C>
GMF Holdings

</TABLE>

                                       15
<PAGE>

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
ATTN:
        -----------------------------
         Re: BUSYBOX.COM INC.

Ladies and Gentlemen:

         We are counsel to busybox.com Inc., a Delaware corporation (the
"COMPANY"), and have represented the Company in connection with that certain
Equity Line of Credit Agreement (the "CREDIT AGREEMENT") entered into by and
among the Company and the investors named therein (collectively, the
"INVESTORS") pursuant to which the Company issued to the Investors shares of its
Common Stock, par value $0.01 per share (the "COMMON STOCK"). Pursuant to the
Credit Agreement, the Company also has entered into a Registration Rights
Agreement with the Investors (the "REGISTRATION RIGHTS AGREEMENT") pursuant to
which the Company agreed, among other things, to register the Registrable
Securities (as defined in the Registration Rights Agreement) under the
Securities Act of 1933, as amended (the "1933 ACT"). In connection with the
Company's obligations under the Registration Rights Agreement, on ____________
____, the Company filed a Registration Statement on Form _______________
(File No. 333-_____________) (the "REGISTRATION STATEMENT") with the Securities
and Exchange Commission (the "SEC") relating to the Registrable Securities which
names each of the Investors as a selling stockholder there under.

         In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                    Very truly yours,

                                    [ISSUER'S COUNSEL]

                                    By:
                                        --------------------------------

cc:  [LIST NAMES OF INVESTORS]<PAGE>

                                                                   Exhibit 10.8

                                BUSYBOX.COM, INC.

                              EMPLOYMENT AGREEMENT

This employment agreement ("Agreement") is entered into as of the date specified
on the signature page ("Effective Date") by and between busybox.com, inc., a
Delaware corporation located at 701 Battery Street, 3rd Floor, San Francisco,
California 94111 ("Company") and the individual specified on the signature page
("Employee").

                                    RECITALS

R1.  The parties desire to memorialize the employment relationship of Employee
     with the Company.

R2.  The Board of Directors of the Company has approved and authorized the entry
     into this Agreement with Employee.

R3.  The parties hereby enter into this Agreement setting forth the terms and
     conditions for the employment relationship of Employee with the Company.

                               TERMS & CONDITIONS

1.   EMPLOYMENT: From the Effective Date through the term of this Agreement,
     Employee is employed as President of the Company and of any subsidiary or
     other affiliate that it may acquire. Employee shall render executive,
     policy and other management services to the Company and
     subsidiaries/affiliates of the type customarily performed by persons
     serving in similar executive officer capacities. Employee shall devote
     substantially all of his working time and his best efforts to the Company
     and his position, which shall include such duties as the company's Board of
     Directors may from time to time reasonably direct that are reasonably
     consistent with Employee's education, experience and background. During the
     term of this Agreement, there shall be no material increase or decrease in
     the duties and responsibilities of Employee otherwise than as provided
     herein, unless the parties otherwise agree in writing.

2.   COMPENSATION

2.1  SALARY: The Company agrees to pay Employee from the Effective Date at an
     annual rate equal to ONE HUNDRED SEVENTY FIVE THOUSAND dollars ($175,000)
     ("Salary"), with such subsequent increases in Salary during the term of the
     Agreement as may be determined by the Compensation Committee of the Board;
     provided, however, that during the first three years following the
     effective date of the registration statement with respect to the initial
     public offering of the Company's stock, Employee's Salary hereunder shall
     not exceed ONE HUNDRED SEVENTY FIVE THOUSAND dollars ($175,000) per annum
     without the approval of the Compensation Committee. In determining Salary
     increases, the Compensation Committee may compensate Employee for increases
     in the cost of living and may also provide for performance or merit
     increases. The Salary of Employee shall not be decreased at any time during
     the term of this Agreement from the amount then in effect, unless Employee

                                       1
<PAGE>

     otherwise agrees in writing. Participation in deferred compensation, bonus,
     discretionary bonus, retirement and other employee benefit plans shall not
     reduce the Salary payable to Employee under this Section 2.1. The Salary
     under this Section 2.1 shall be payable to Employee not less frequently
     than monthly. Employee shall not be entitled to receive fees for serving as
     a director of the Company or of any subsidiary or affiliate of the Company
     or for serving as a member of any committee of any such board of directors.

2.2  ANNUAL BONUS: In addition to the Salary under Section 2.1 above, the
     Company shall pay to Employee an annual bonus of FIFTY PERCENT (50%) of the
     Salary under such Subsection. The annual bonus shall be payable in January
     following each calendar year during the term of this Agreement and shall be
     prorated for any partial years.

3.   DISCRETIONARY & PERFORMANCE INCENTIVE BONUSES: During the term of this
     Agreement, Employee shall be entitled to participate in an equitable manner
     with all other executive employees of the Company in such discretionary
     bonuses as may be authorized, declared and paid by the Compensation
     Committee to its executive employees. The Company will adopt an incentive
     bonus plan providing for the payment of annual performance incentive
     bonuses to Employee and other executive officers based upon the increase in
     the Company's operating profit or other appropriate performance objectives.
     The incentive bonus arrangement will provide Employee with an opportunity
     to earn additional incentive compensation in an amount up to THREE PERCENT
     (3%) of the annual increase in the Company's net income before taxes as
     reported in the Company's audited annual financial statement. No other
     compensation provided for in this Agreement shall be deemed a substitute
     for Employee's right to participate in such bonuses.

4.   INSURANCE, RETIREMENT AND EMPLOYEE BENEFIT PLANS, FRINGE BENEFITS; BUSINESS
     EXPENSES

4.1  OTHER BENEFITS AND PREREQUISITES: Employee shall be entitled to participate
     in any plan of the Company relating to stock options, restricted stock,
     employee stock purchase or ownership, pension, thrift, profit sharing,
     group life insurance, medical coverage, education or other retirement or
     employee benefit plans or arrangements that the Company has adopted or may
     adopt for the benefit of its employees or executive officers. Employee
     shall also be entitled to participate in, or enjoy the benefit of, any
     other fringe benefits or prerequisites that are now or may be or become
     applicable to the Company's executive employees.

4.2  BUSINESS EXPENSES: During the term of Employee's employment by the Company,
     the Company shall promptly reimburse Employee for all reasonable and
     customary expenses incurred by Employee in performing services for the
     Company, including all living and travel expenses while away from home on
     business or at the request of and in the service of the Company, provided
     that such expenses are incurred and accounted for in accordance with the
     policies and procedures established by the Company. Employee shall be
     entitled to first or business class for all business air travel. Employee
     shall be entitled to parking expenses, excluding violations, when on the
     job, be it at the office or while on business trips. Employee shall be
     entitled to a reasonable per diem for living expenses while in San
     Francisco.

                                       2
<PAGE>

4.3  DIRECTOR & OFFICER INSURANCE: At all times during the term of this
     Agreement the Company shall maintain in full force and effect a director
     and officer insurance policy with a national insurance underwriter insuring
     Employee for his acts and omissions in his capacity as an Officer and
     Director of the Company, with coverage under such policy of not less than
     ONE MILLION dollars ($1,000,000).

5.   TERM: The initial term of employment under this Agreement shall begin on or
     before November 1, 1999, and continue until December 31, 2001. This
     Agreement shall be automatically renewed for an subsequent three-year term,
     unless either Employee or the Company gives contrary written notice to the
     other party hereto not less than 180 days before the scheduled expiration
     of the initial term of this Agreement. Each term and all such renewal terms
     are collectively referred to herein as the term of this Agreement.

6.   VOLUNTARY ABSENCES; VACATIONS: Employee shall be entitled, without loss of
     pay, to be absent voluntarily for reasonable periods of time from the
     performance of the duties and responsibilities under this Agreement. All
     such voluntary absences shall count as paid vacation time, unless the Board
     otherwise approves. Employee shall be entitled to an annual paid vacation
     of at least six (6) weeks per year or such longer period as the Board may
     approve. The timing of paid vacations shall be scheduled in a reasonable
     manner by Employee.

7.   TERMINATION OF EMPLOYMENT: Employee's employment may be terminated without
     any breach of this Agreement only under the following circumstances:

7.1  DEATH: Employee's employment shall terminate upon his death.

7.2  DISABILITY: The Company may terminate Employee's employment because of
     disability. For this purpose, "disability" shall mean the inability of
     Employee to perform his duties under this Agreement because of physical or
     mental illness or incapacity for a continuous period of six months during
     which Employee shall have been absent from his duties under this Agreement
     on a substantially full-time basis.

7.3  CAUSE: The Company may terminate Employee's employment for cause. For
     purposes of this Agreement, the Company shall have "cause" to terminate
     Employee's employment only in the event of (a) the willful and continued
     failure by Employee to substantially perform his duties hereunder (other
     than any such failure resulting from Employee's inability to perform such
     duties as a result of physical or mental illness or incapacity or any such
     actual or anticipated failure after the delivery of a Notice of
     Termination, as defined in Section 7.5, by Employee for Good Reason, as
     defined in Section 7.4.2) after delivery to Employee of a written demand
     for substantial performance that specifically identifies the manner in
     which the Company believes that Employee has not substantially performed
     his duties and a reasonable opportunity to cure; (b) willful misconduct by
     Employee that causes substantial and material injury to the business and
     operations of the Company, the continuation of which, in the reasonable
     judgment of the Board, will continue to substantially and materially injure
     the business and operations of the Company in the future; or (c)

                                       3
<PAGE>

     conviction of Employee of a felony. No act or failure to act shall be
     considered "willful" for this purpose unless done, or omitted to be done,
     by Employee other than in good faith and other than with a reasonable
     belief that his action or omission was in the best interests of the
     Company. Employee shall not be deemed to have been terminated for cause
     unless Employee shall have been provided with (i) a reasonable notice
     setting forth the reasons that the Company believes constitute cause for
     the termination of his employment; (ii) a Notice of Termination as defined
     in Section 7.5 from the Board finding that, in the reasonable good faith
     opinion of the Board, cause for the termination exists and specifying the
     particulars thereof in reasonable detail.

7.4  TERMINATION BY EMPLOYEE: Employee may terminate his employment (a) for good
     reason by giving ten days prior written notice to the Company or (b) at any
     time by giving 120 days prior written notice to the Company.

     7.4.1     GOOD REASON: For purposes of this Section, "good reason" shall
               mean (a) the assignment to Employee of any duties inconsistent
               with Employee's status or any substantial adverse alteration in
               the nature or status of Employee's responsibilities; (b) any
               change in Employee's reporting responsibility such that Employee
               is required to report other than exclusively to the Chief
               Executive Officer, (c) any purported termination of Employee's
               employment by the Company that is not effected pursuant to a
               Notice of Termination satisfying the requirements of Section 7.5
               hereof; (d) any other failure by the Company to comply with any
               material provision of this Agreement which failure continues for
               more than ten days after written notice of such noncompliance
               from Employee; or (e) any notices given by the Company to
               Employee under Section 5 hereof that this Agreement will not be
               renewed on any anniversary date.

7.5  NOTICE OF TERMINATION: Any termination of Employee's employment by the
     Company or by Employee (other than termination pursuant to Section 7.1 or
     7.2 hereof) shall be communicated by the terminating party to the other
     party by a written Notice of Termination. Any Notice of Termination given
     by a party shall specify the particular termination provision of this
     Agreement relied upon by such party and shall set forth in reasonable
     detail the facts and circumstances relied upon as providing a basis for the
     termination under the provision so specified.

7.6  TERMINATION DATE: The termination date shall mean (a) if Employee's
     employment is terminated by his death, the date of his death; (b) if
     Employee's employment is terminated pursuant to Section 7.2 hereof, the
     date specified in the Notice of Termination, which shall be after the
     expiration of the six-month period specified in that Subsection; (c) if
     Employee's employment is terminated by the Company for cause, the date
     specified in the Notice of Termination; or (d) if Employee's employment is
     terminated for any other reason, sixty days following the date on which the
     Notice of Termination is given.

8.   COMPENSATION UPON TERMINATION OF EMPLOYMENT

8.1  TERMINATION BECAUSE OF DEATH, FOR CAUSE OR WITHOUT GOOD REASON: If
     Employee's employment is terminated because of his death, by the

                                       4
<PAGE>

     Company for cause, or by Employee other than for good reason, the Company
     shall pay Employee his salary and a pro rata portion of the bonus specified
     in Section 2(b) (based upon the bonus paid in respect of the preceding
     year) through the Termination Date and the Company shall have no further
     obligation to Employee hereunder.

8.2  TERMINATION BECAUSE OF DISABILITY: If Employee's employment is terminated
     by the Company because of disability under Section 7.2 hereof, the Company
     shall pay Employee an annual disability benefit equal to the excess of (a)
     sixty percent of his Salary at the rate in effect under Section 2.1 hereof
     (based upon the bonus paid in respect of the preceding year) over (b) the
     amount of the long term disability benefit that is payable to Employee
     under any policy of disability insurance provided for Employee by the
     Company at its expense. The disability benefit shall be paid for such
     period as is determined by the Board of Directors for the Company's senior
     executives but shall not be less than the remainder of the scheduled term
     of employment.

8.3  TERMINATION WITHOUT CAUSE OR WITH GOOD REASON: If (a) in breach of this
     Agreement, the Company shall terminate Employee's employment other than for
     cause or because of disability or (b) Employee shall terminate his
     employment for Good Reason; then:

     8.3.1     The Company shall pay Employee his salary and a pro rata portion
               of the bonus specified in Section 2.1 hereof (based upon the
               bonus paid in respect of the preceding year) through the
               Termination Date and all other unpaid and pro rata amounts to
               which Employee is entitled as of the Termination Date under any
               compensation plan or program of the Company, including, without
               limitation, any incentive performance bonus and all accrued
               vacation time;

     8.3.2     The Company shall pay as liquidated damages to Employee, and in
               lieu of any further salary payments hereunder for periods after
               the Termination Date, Employee's then current Salary (payable in
               installments in accordance with the Company's normal payroll
               practices) for the remainder of the scheduled term of employment
               and the product of (a) the sum of (i) Employee's annual bonus
               specified in Section 2.1 hereof (based upon the bonus paid in
               respect of the preceding year) and (ii) the maximum annual bonus
               amount that could have been paid to Employee under the Company's
               performance incentive bonus plan for the year in which the
               Termination Date occurs, and (b) the number of years (and any
               fraction of a year) remaining in the term of this Agreement under
               Section 5 hereof as of the Termination Date, which amount shall
               be payable in equal monthly installments during the remainder of
               the scheduled term of employment;

     8.3.3     In addition to the liquidated amounts that are payable to
               Employee, the following shall apply: (a) Employee shall continue
               to participate in, and accrue benefits under, all retirement,
               pension, profit sharing, employee stock ownership, thrift and
               other deferred compensation plans of the Company for the
               remaining term of this Agreement as if the termination of
               employment of Employee had not occurred (with Employee being
               deemed to receive annually for the purposes of such plans
               Employee's then current Salary and

                                       5
<PAGE>

               bonus (at the time of his termination) under Sections 2.1 and 2.2
               of this Agreement), except to the extent that such continued
               participation and accrual is expressly prohibited by law, or to
               the extent such plan constitutes a "qualified plan" under Section
               401 of the Internal Revenue Code of 1986, as amended ("Code"), by
               the terms of the Plan, in which case the Company shall provide
               Employee a substantially equivalent, unfunded, non-qualified
               benefit; (b) Employee shall be entitled to continue to receive
               all other employee benefits and then existing fringe benefits
               referred to in Sections 4.1 and 4.2 hereof for the remaining term
               of this Agreement as if the termination of employment had not
               occurred; and (c) all insurance or other provisions for
               indemnification, defense or hold-harmless of officers and
               directors of the Company that are in effect on the date the
               Notice of Termination is sent to Employee shall continue for the
               benefit of Employee with respect to all of his acts and omissions
               while an officer or director as fully and completely as if such
               termination had not occurred, and until the final expiration or
               running of all periods of limitation against action which may be
               applicable to such acts or omissions; and,

     8.3.4     The liquidated amount and other benefits provided for in this
               Section 8.3 shall not be reduced by any compensation or benefits
               that Employee may receive for other employment with another
               employer or through self-employment after termination of
               employment with the Company.

8.4  COST OF ENFORCEMENT: In the event the employment of Employee is terminated
     by the Company because of disability of without cause, or by Employee for
     good reason, and the Company fails to make timely payment of the amounts
     owed to Employee under this Agreement, Employee shall be entitled to
     reimbursement for all reasonable costs, including attorney's fees, incurred
     in Employee taking action to collect such amounts or otherwise to enforce
     this Agreement, plus interest on such amounts at the rate of one percent
     above prime rate (defined as the base rate on corporate loans at large US
     money center commercial banks as published by The Wall Street Journal),
     compounded monthly, for the period from the date of employment termination
     until payment is made to Employee. Such reimbursement and interest shall be
     in addition to all rights to which Employee is otherwise entitled under
     this Agreement.

8.5  PARACHUTE PAYMENT LIMITATION: If any payment or benefit to Employee under
     this Agreement would be considered a "parachute payment" within the meaning
     of Section 280(g)(b)(2) of the Code and if, after reduction for any
     applicable federal excise tax imposed by Section 4999 of the Code ("Excise
     Tax") and federal income tax imposed by the Code, Employee's net proceeds
     of the amounts payable and the benefits provided under this Agreement would
     be less than the amount of Employee's net proceeds resulting from the
     payment of the Reduced Amount described below, after reduction for federal
     income taxes, then the amount payable and the benefits provided under this
     Agreement shall be the largest amount that could be received by Employee
     under this Agreement such that no amount paid to Employee under this
     Agreement and any other agreement, contract or understanding heretofore or
     hereafter entered into between Employee and the Company ("Other
     Agreements")

                                       6
<PAGE>

     and any formal or informal plan or other arrangement heretofore or
     hereafter adopted by the Company for the direct or indirect provision of
     compensation to Employee (including groups or classes or participants or
     beneficiaries of which Employee is a member), whether or not such
     compensation is deferred, is in cash, or is in the form of a benefit to or
     for Employee ("Benefit Plan") would be subject to the Excise Tax. In the
     event that the amount payable to Employee shall be limited to the Reduced
     Amount, then Employee shall have the right, in Employee's sole discretion,
     to designate those payments or benefits under this Agreement, any Other
     Agreements, and/or Benefit Plan, that should be reduced or eliminated so as
     to avoid having the payment to Employee under this Agreement be subject to
     the Excise Tax.

9.   CONFIDENTIALITY: In consideration of the willingness of the Company to
     employ Employee and the compensation to be paid and benefits to be received
     therefor, and for other good and valuable consideration, the receipt and
     adequacy of which is hereby acknowledged, Employee agrees as follows:

9.1  THE COMPANY OWNS ALL OF EMPLOYEE'S WORK: All improvements, discoveries,
     inventions, designs, documents, licenses and patents, software programs, or
     other data devised, conceived, made, developed, obtained, filed, perfected,
     acquired, or first reduced to practice, in whole or in part, by Employee
     during the term of this Agreement, and related in any way to the business,
     including research and development, of the Company or any subsidiary of
     affiliate engaged in business substantially similar to that of the Company,
     shall be promptly disclosed to the Company. Employee hereby assigns and
     transfers to the Company all his right, interest and title thereto, and
     such improvements, discoveries, inventions, designs, documents, licenses
     and patents, or other data shall become the property of the Company. During
     the term of this Agreement and at any time thereafter, upon request of the
     Company, Employee will join and render assistance in any proceedings and
     execute any papers necessary to file and prosecute applications for, and to
     acquire, maintain and enforce, letters, patents, trademarks, registrations
     and/or copyrights, both domestic and foreign, with respect to such
     improvements, discoveries, inventions, designs, documents, licenses and
     patents, or other data as required for vesting and maintaining title to
     same in the Company.

9.2  NON-DISCLOSURE OF CONFIDENTIAL INFORMATION: Employee agrees and
     acknowledges that the terms "Confidential and Proprietary Information"
     shall mean any and all information not in the public domain, in any form,
     emanating from or relating to the Company and its subsidiaries and
     affiliates, including, but not limited to, trade secrets, technical
     information, costs, designs, drawings, processes, systems, methods of
     operation and procedures, formulae, test data, know-how, improvements,
     price lists, financial data, code books, invoices and other financial
     statements, computer programs, discs and printouts, sketches and plans
     (engineering or otherwise), customer lists, telephone numbers, names,
     addresses, information about equipment and processes (including
     specifications and operating manuals), or any other compilation of
     information written or unwritten that is used in the business of the
     Company or any subsidiary or affiliate that gives the Company or any
     subsidiary or affiliate any opportunity to obtain an advantage over
     competitors of the Company who do not know or use

                                       7
<PAGE>

     such information. Employee agrees and acknowledges that all Confidential
     and Proprietary information, in any form, and all copies and extracts
     thereof, is and are and shall remain the sole and exclusive property of the
     Company, and upon termination of his employment with the Company, Employee
     hereby agrees to return to the Company the originals and all copies of any
     Confidential and Proprietary Information provided to or acquired by
     Employee during the term of his employment. Except as ordered by a court of
     competent jurisdiction, Employee expressly agrees never to disclose to any
     person (except to other Company employees, and then only on a "need to
     know" basis) or entity any Confidential and Proprietary Information either
     during the term of this Agreement or at any time after termination of his
     employment, except with the express written authorization and consent of
     the Company.

9.3  CUSTOMER & CLIENT INFORMATION: Employee understands and acknowledges that
     each customer and client of the Company or its subsidiaries or affiliates
     will disclose information that will be within the Company's control in
     connection with the Company's furnishing of services to its customers and
     clients. Employee covenants and agrees to hold such information in the
     strictest confidence and shall treat such information in the same manner
     and be obligated by the provisions of this Agreement as if such information
     were Confidential and Proprietary Information as defined in Section 9.2
     hereof.

10.  COVENANT NOT TO COMPETE: During the term of employment and for a period of
     TWO (2) years after the termination of Employee's employment by the
     Company, Employee shall not directly or indirectly own, manage, operate,
     control or be employed by or participate in the ownership, management,
     operation or control of any business in the area which is the type and
     character engaged in and competitive with that of the Company. Employee
     shall not, during the term of this Agreement, have any other paid
     employment other than with a subsidiary or affiliate of the Company, except
     with the prior approval of the Board.

11.  AMENDMENTS OR ADDITIONS; ACTION BY BOARD: No amendments or additions to the
     Agreement shall be binding unless in writing and signed by all parties
     thereto. The prior approval by a majority affirmative vote of the full
     Board shall be required in order for the Company to authorize any
     amendments or additions to this Agreement, to give any consents or waivers
     of provisions of this Agreement, or to take any other action under this
     Agreement including any Notice of Termination.

12.  MISCELLANEOUS

12.1 NOTICES: Any notice required or permitted hereunder shall be given in
     writing and shall be personally delivered or mailed by first class
     registered or certified mail, postage prepaid, return-receipt-requested, or
     transmitted by facsimile, telegram or telex, addressed to the Company or
     Employee at the address set forth in this Agreement, or at such other
     addresses as such party may designate by five business day advance written
     notice to the other party. Each notice or communication that shall have
     been transmitted in the manner described above, or that shall have been
     delivered to a telegraph company, shall be deemed sufficiently given,
     served, sent or received for purposes at such time as it is

                                       8
<PAGE>

     sent to the addressee (with the return receipt, delivery receipt or (with
     respect to a telex) the answer back being deemed conclusive, but not
     exclusive, evidence of such sending) or at such time as delivery is refused
     by the addressee upon presentation.

12.2 SEVERABILITY: Nothing in this Agreement shall be construed so as to require
     the commission of any act contrary to law and wherever there is any
     conflict between any provision of this Agreement and any law, statute,
     ordinance, order or regulation, the latter shall prevail, but in such event
     any necessary action will be taken to bring it within applicable legal
     requirements. If any provision of this Agreement should be held invalid or
     unenforceable, the remaining provisions shall be unaffected by such a
     holding.

12.3 COMPLETE AGREEMENT: This Agreement contains the entire Agreement and
     understanding between the parties relating to the subject matter hereof,
     and supersedes any prior understandings, agreements or representations by
     or between the parties, written or oral, relating to the subject matter
     hereof.

12.4 SUCCESSORS OR ASSIGNS: This Agreement and the rights and obligations of the
     parties hereto shall bind and inure to the benefit of any successor or
     successors of the Company by way of reorganization, merger or consolidation
     and any assignee of all or substantially all of its business assets, but
     except as to any such successor or assignee of the Company, neither this
     Agreement nor any rights or benefits hereunder may be assigned by the
     Company or Employee. However, in the event of death of Employee all rights
     to receive payments hereunder shall become rights of Employee's estate.

12.5 SECTION HEADINGS: The section headings used in this Agreement are included
     solely for convenience and shall not affect, or be used in connection with,
     the interpretation of this Agreement.

12.6 GOVERNING LAW: This Agreement shall be governed and construed in accordance
     with the laws of the State of Delaware.

12.7 ARBITRATION: Any and all disputes between the parties arising under this
     Agreement shall be finally decided through binding arbitration before
     Judicial Arbitration & Mediation Services, Inc. ("JAMS/ENDISPUTE") in San
     Francisco, California, and judgment on any arbitration award may be entered
     in any court having jurisdiction over the parties or their assets.

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of
this date, October 20, 1999.

COMPANY:                                    EMPLOYEE:

By:      /S/ PATRICK A. GROTTO              By:      /S/ ROBERT S. SHERMAN
    -----------------------------               --------------------------------
Name:    Patrick A. Grotto                           Name:    Robert S. Sherman
Title: Chairman & Chief Executive Officer   SSN:

                                       9

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