Document:

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                                                                    Exhibit 10.1

                                    EXHIBIT B

                                OPTION AGREEMENT

         This Option Agreement ("Option Agreement") is dated as of March 27,
2000, between Mid-Coast Bancorp, Inc., a Delaware corporation ("Mid-Coast") and
Union Bankshares Company. ("Union Bankshares"), a Maine corporation.

                                    RECITALS

         WHEREAS, the Boards of Directors of Mid-Coast and Union Bankshares have
approved an Agreement and Plan of Merger by and between Union Bankshares and
Mid-Coast ("Merger Agreement") dated as of the date hereof providing for the
merger of Mid-Coast into Union Bankshares;

         WHEREAS, as a condition to Union Bankshares' entry into the Merger
Agreement and to induce such entry, Mid-Coast has agreed to grant to Union
Bankshares the option set forth herein to purchase authorized but unissued
shares of Mid-Coast Common Stock;

         NOW, THEREFORE, in consideration of the premises herein contained, the
parties agree as follows:

1.       Definitions.

         Capitalized terms defined in the Merger Agreement and used herein shall
have the same meanings as in the Merger Agreement.

2.       Grant of Option.

         Subject to the terms and conditions set forth herein, Mid-Coast hereby
grants to Union Bankshares an option ("Option") to purchase up to 149,960 shares
of Mid-Coast Common Stock, at a price of $6.00 per share payable in cash as
provided in Section 4 hereof; provided, however, that in the event Mid-Coast
issues or agrees to issue any shares of Mid-Coast Common Stock (other than as
permitted under the Merger Agreement) at a price less than $6.00 per share (as
adjusted pursuant to Section 6 hereof), the exercise price shall be equal to
such lesser price; in no event, however, shall the number of shares for which
the Option is exercisable exceed 19.9% of Mid-Coast's issued and outstanding
Common Stock without giving effect to any shares subject to or issued pursuant
to the Option.

3.       Exercise of Option.

         (a) Subject to compliance with applicable laws and regulations and
unless Union Bankshares shall have breached in any material respect and failed
to cure any material covenant or representation contained in the Merger
Agreement, Union Bankshares may exercise the Option, in whole or part, at any
time following the occurrence of a Purchase Event (as defined below).

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         (b) As used herein, a "Purchase Event" shall mean any of the following
events or transactions occurring after the date hereof:

         i.   Mid-Coast or any of its Subsidiaries (each an "Mid-Coast
         Subsidiary"), without having received Union Bankshares' prior written
         consent, shall have entered into an agreement to engage in an
         Acquisition Transaction (as hereinafter defined) with any person (the
         term "person" for purposes of this Agreement having the meaning
         assigned thereto in Sections 3(a)(9) and 13(d)(3) of the Securities
         Exchange Act of 1934, as amended (the "1934 Act"), and the rules and
         regulations thereunder) other than Union Bankshares or any of its
         Subsidiaries (each a "Union Bankshares Subsidiary") or the Board of
         Directors of Mid-Coast shall have recommended that the stockholders of
         Mid-Coast approve or accept any Acquisition Transaction or shall have
         failed to publicly oppose an Acquisition Transaction, in each case with
         any person other than Union Bankshares or a Union Bankshares
         Subsidiary. For purposes of this Agreement, "Acquisition Transaction"
         shall mean (w) a merger or consolidation, or any similar transaction,
         involving Mid-Coast or any Significant Subsidiary (as defined in Rule
         1-02(w) of Regulation S-X promulgated by the Securities and Exchange
         Commission (the "SEC") of Mid-Coast, (x) a purchase, lease or other
         acquisition of all or a substantial portion of the assets of Mid-Coast
         or any Significant Subsidiary of Mid-Coast, (y) a purchase or other
         acquisition (including by way of merger, consolidation, share exchange
         or otherwise) of securities representing 10% or more of the voting
         power of Mid-Coast or any Significant Subsidiary of Mid-Coast, or (z)
         any substantially similar transaction; provided, however, that in no
         event shall any merger, consolidation, purchase, liquidation, dividend
         in kind, reorganization or similar transaction involving only Mid-Coast
         and one or more of its Subsidiaries or involving only any two or more
         of such Subsidiaries, be deemed to be an Acquisition Transaction,
         provided any such transaction is not entered into in violation of the
         terms of the Merger Agreement;

         ii.  Mid-Coast or any Mid-Coast Subsidiary, without having received
         Union Bankshares' prior written consent, shall have authorized,
         recommended, proposed or publicly announced its intention to authorize,
         recommend or propose, to engage in an Acquisition Transaction with any
         person other than Union Bankshares or a Union Bankshares Subsidiary, or
         the Board of Directors of Mid-Coast shall have publicly withdrawn or
         modified, or publicly announced its intention to withdraw or modify, in
         any manner adverse to Union Bankshares, its recommendation that the
         stockholders of Mid-Coast approve the transactions contemplated by the
         Merger Agreement;

         iii. The shareholders of Mid-Coast shall have voted and failed to
         approve and adopt the Merger Agreement and the Merger at a meeting
         which has been held for that purpose or any adjournment or postponement
         thereof, or such meeting shall not have been held in violation of the
         Merger Agreement or shall have been canceled prior to termination of
         the Merger Agreement if, prior to such meeting (or if such meeting
         shall not have been held or shall have been canceled, prior to such
         termination), any person (other than the Union Bankshares or a Union

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         Bankshares Subsidiary) shall have made a proposal to Mid-Coast or its
         stockholders by public announcement or written communication that is or
         becomes the subject of public disclosure to engage in an Acquisition
         Transaction;

         iv.  Any person other than Union Bankshares, any Union Bankshares
         Subsidiary or any Mid-Coast Subsidiary shall have acquired beneficial
         ownership or the right to acquire beneficial ownership of 10% or more
         of the outstanding shares of Common Stock (the term "beneficial
         ownership" for purposes of this Option Agreement having the meaning
         assigned thereto in Section 13(d) of the 1934 Act, and the rules and
         regulations thereunder);

         v.   Any person other than Union Bankshares or any Union Bankshares
         Subsidiary shall have made a bona fide proposal to Mid-Coast or its
         stockholders by public announcement or written communication that is or
         becomes the subject of public disclosure to engage in an Acquisition
         Transaction;

         vi.  After an overture is made by a third party to Mid-Coast or its
         stockholders to engage in an Acquisition Transaction, Mid-Coast shall
         have breached any covenant or obligation contained in the Merger
         Agreement and such breach (x) would entitle Union Bankshares to
         terminate the Merger Agreement and (y) shall not have been cured to the
         satisfaction of Union Bankshares; or

         vii. Any person other than Union Bankshares or any Union Bankshares
         Subsidiary, other than in connection with a transaction to which Union
         Bankshares has given its prior written consent, shall have filed an
         application or notice with any Regulatory Authority, whether in draft
         or final form, for approval to engage in an Acquisition Transaction.

         (c) In the event Union Bankshares determines to exercise the Option, it
shall send to Mid-Coast a written notice (the date of which being herein
referred to as "Notice Date") specifying (i) the total number of shares it will
purchase pursuant to such exercise, and (ii) a place and date not earlier than
three (3) business days nor later than twenty (20) business days from the Notice
Date for the closing of such purchase ("Closing Date"); provided that if prior
notification to or approval of any Regulatory Authority is required in
connection with such purchase, Union Bankshares shall promptly file the required
notice or application for approval and shall expeditiously process the same and
the period of time that otherwise would run pursuant to this sentence shall run
instead from the date on which any required notification period has expired or
been terminated or such approval has been obtained and any requisite waiting
period shall have passed.

         (d) The Option shall expire and terminate to the extent not previously
exercised, upon the earliest to occur of the following (each a "Termination
Event"):

         i.       the Effective Date of the Merger; or

         ii.      eight (8) months after the occurrence of a Purchase Event; or

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         iii.     the Merger Agreement is terminated in accordance with its
                  terms except for any termination resulting from a material
                  breach by Mid-Coast of any of its representations, warranties
                  or covenants, or the failure of the stockholders of Mid-Coast
                  to approve the Merger Agreement; or

         iv.      (iv) December 31, 2000.

         (e) Notwithstanding the termination of the Option, Union Bankshares
shall be entitled to purchase any shares with respect to which it has exercised
the Option in accordance with the terms hereof prior to the termination of the
Option. The termination of the Option shall not affect any rights hereunder
which by their terms extend beyond the date of such termination.

         (f) Mid-Coast shall notify Union Bankshares promptly in writing of the
occurrence of any Purchase Event, it being understood that the giving of such
notice by Mid-Coast shall not be a condition to the right of Union Bankshares to
exercise the Option.

   4.    Payment and Delivery of Certificates.

         (a) At the closing referred to in Section 3 hereof, Union Bankshares
shall pay to Mid-Coast the aggregate purchase price for the shares of Mid-Coast
Common Stock purchased pursuant to the exercise of the Option in immediately
available funds by a wire transfer to a bank account designated by Mid-Coast or
if no account has been designated in a manner determined to be reasonable by
Union Bankshares.

         (b) At such closing, simultaneously with the delivery of cash as
provided in subsection (a), Mid-Coast shall deliver to Union Bankshares a
certificate or certificates representing the number of shares of Mid-Coast
Common Stock purchased by Union Bankshares and Union Bankshares shall deliver to
Mid-Coast a letter agreeing that Union Bankshares will not offer to sell or
otherwise dispose of such shares in violation of applicable law or the
provisions of this Option Agreement.

   5.    Representations.

   Mid-Coast hereby represents, warrants and covenants to Union Bankshares as
follows:

         (a) Mid-Coast shall at all times maintain sufficient authorized but
unissued shares of Mid-Coast Common Stock so that the Option may be exercised
without authorization of additional shares of Mid-Coast Common Stock.

         (b) The shares to be issued upon due exercise, in whole or in part, of
the Option, when paid for as provided herein, will be duly authorized, validly
issued, fully paid and nonassessable and will be delivered free and clear of all
claims, liens, encumbrances and security interests and not subject to any
preemptive rights.

         (c) Mid-Coast will not, by amendment of its certificate of
incorporation or through reorganization, consolidation, merger, dissolution or
sale of assets, or by any other voluntary act, avoid or seek to avoid the
observance or performance of any of the covenants, stipulations or conditions to
be observed or performed hereunder by it; and will promptly take all

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action as may from time to time be required (including cooperating fully with
Union Bankshares in preparing applications or notices and providing information
with respect to regulatory approval) in order to permit Union Bankshares to
exercise the Option and Mid-Coast duly and effectively to issue shares of
Mid-Coast Common Stock pursuant hereto.

   6.    Adjustment Upon Changes in Capitalization.

         If Mid-Coast should split or combine the Mid-Coast Common Stock, or pay
a stock dividend or other stock distribution in Mid-Coast Common Stock, or
otherwise change the Mid-Coast Common Stock into any other securities, or make
any other dividend or distribution in respect of the Mid-Coast Common Stock
(other than normal cash dividends), then the number of shares of Mid-Coast
Common Stock subject to the Option shall be adjusted so that, after such
issuance, it equals 19.9% of the number of shares of Mid-Coast Common Stock then
issued and outstanding without giving effect to any shares subject or issued
pursuant to the Option. Nothing contained in this Section 6 shall be deemed to
authorize Mid-Coast to breach any provisions of the Merger Agreement. Whenever
the number of shares of Mid-Coast Common Stock purchasable upon exercise hereof
is adjusted as provided in this Section 6, the Option exercise price shall be
adjusted by multiplying the Option exercise price by a fraction, the numerator
of which shall be equal to the number of shares of Mid-Coast Common Stock
purchasable prior to the adjustment and the denominator of which shall be equal
to the number of shares of Mid-Coast Common Stock purchasable after the
adjustment.

   7.    Registration Rights.

         Mid-Coast shall, if requested by Union Bankshares, as expeditiously as
possible file a registration statement in order to permit the sale or other
disposition of this Option and/or the shares of Mid-Coast Common Stock acquired
upon exercise of the Option in accordance with the intended method of sale or
other disposition requested by Union Bankshares. Union Bankshares shall provide
all information reasonably requested by Mid-Coast for inclusion in any
registration statement to be filed hereunder. Mid-Coast will use its reasonable
best efforts to cause such registration statement first to become effective and
then to remain effective for such period not in excess of one year from the day
such registration statement first becomes effective as may be reasonably
necessary to effect such sales or other dispositions. The first registration
effected under this Section 7 shall be at Mid-Coast's expense except for
underwriting commissions and the fees and disbursements of Union Bankshares'
counsel attributable to the registration. A second registration may be requested
hereunder at Union Bankshares' expense. In no event shall Mid-Coast be required
to effect more than two registrations hereunder. If requested by Mid-Coast, in
connection with any such registration, Union Bankshares will become a party to
any underwriting agreement relating to the sale of such shares, but only to the
extent of obligating itself in respect of representations, warranties,
indemnities and other agreements customarily included by a selling shareholder
in such underwriting agreements.

   8.    Certain Puts.

         (a) Upon the occurrence of a Purchase Event that occurs prior to
termination of the Option, (i) at the request of Union Bankshares, delivered
while the Option (in whole or part) is exercisable, Mid-Coast shall repurchase
the Option from Union Bankshares at a price

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equal to (x) the amount by which (a) the market/offer price (as defined below)
exceeds (b) the Option exercise price, multiplied by (y) the number of shares
for which the Option may then be exercised; and (ii) at the request from time to
time of the owner of shares purchased pursuant to the Option, delivered while
the Option (in whole or part) is exercisable (or, if it has been fully
exercised, would have been exercisable had such exercise not been made),
Mid-Coast shall repurchase such number of the shares issued pursuant to the
Option from the owner as the owner shall designate at a price equal to the
market/offer price multiplied by the number of such shares so designated. The
term "market/offer price" shall mean the highest of (i) the price per share of
Mid-Coast Common Stock at which a tender offer or exchange offer therefor has
been made after the date hereof, (ii) the price per share of Mid-Coast Common
Stock to be paid by any third party pursuant to any merger, consolidation, share
exchange or other agreement with Mid-Coast entered into after the date hereof,
(iii) the average closing price for shares of Mid-Coast Common Stock within the
30-day period immediately preceding the date Union Bankshares gives notice of
the required repurchase of this Option or the owner gives notice of the required
repurchase of shares, as the case may be, or (iv) in the event of a sale of all
or substantially all of Mid-Coast's assets, the sum of the price paid in such
sale for such assets and the current market value of the remaining assets of
Mid-Coast as determined by a nationally recognized investment banking firm
selected by the parties (or by an arbitrator if they cannot agree) divided by
the number of shares of Mid-Coast Common Stock outstanding at the time of such
sale. In determining the market/offer price, the value of consideration other
than cash shall be determined by a nationally recognized investment banking firm
selected by the parties (or by an arbitrator if they cannot agree), and such
determination shall be conclusive and binding on all parties.

         (b) Union Bankshares or the owner, as the case may be, may exercise its
right to require Mid-Coast to repurchase the Option and any shares pursuant to
this Section 8 by surrendering for such purpose to Mid-Coast, at its principal
office, this Option Agreement or certificates for the shares, as applicable,
accompanied by a written notice or notices stating that Union Bankshares or the
owner, as the case may be, elects to require Mid-Coast to repurchase the Option
and/or the shares in accordance with the provisions of this Section 8. As
promptly as practicable, and in any event within five (5) business days after
the surrender of the Option and/or certificates representing shares and the
receipt of such notice or notices relating thereto, Mid-Coast shall deliver or
cause to be delivered to Union Bankshares or the owner of the shares, the
applicable repurchase price therefor or the portion thereof that Mid-Coast is
not then prohibited from so delivering under applicable law and regulation.

         (c) Mid-Coast hereby undertakes to use its best efforts to obtain all
required regulatory and legal consents and to file any required notices in order
to accomplish any repurchase contemplated by this Section 8. To the extent that
Mid-Coast is prohibited under applicable law or regulation from repurchasing the
Option and/or the shares in full, Mid-Coast shall immediately so notify Union
Bankshares and the owner, if applicable, and thereafter deliver or cause to be
delivered, from time to time, the portion of the repurchase price that it is no
longer prohibited from delivering. If Mid-Coast at any time after delivery of a
notice of repurchase pursuant to Section 8 is prohibited under applicable law or
regulation from delivering the repurchase price in full (and Mid-Coast hereby
undertakes to use its best efforts to obtain all required regulatory and legal
approvals and to file any required notices as promptly as practicable in order
to accomplish such repurchase), Union Bankshares and/or the owner may revoke its
notice of repurchase either in whole or to the extent of the prohibition.

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   9.    Total Profit. Notwithstanding any other provision of this Option
Agreement to the contrary, in no event shall Union Bankshares' Total Profit (as
defined below) exceed $800,000 and, if it otherwise would exceed such amount,
Union Bankshares, at its sole election, shall either (A) reduce any remaining
shares of Mid-Coast Common Stock subject to the Option, (B) deliver to Mid-Coast
for cancellation without consideration shares of Mid-Coast Common Stock
previously purchased by Union Bankshares pursuant to the exercise of the Option,
(C) pay cash to Mid-Coast, (D) increase the per share exercise price, or (E) any
combination of the foregoing, so that Union Bankshares' actually realized Total
Profit shall not exceed $800,000 after taking into account the foregoing
actions.

         As used in this Option Agreement, the term "Total Profit" shall mean
the aggregate sum (prior to the payment of taxes) of the following: (i) any net
cash amounts received by Union Bankshares pursuant to the sale of shares of
Mid-Coast Common Stock received pursuant to the exercise of the Option (or any
other securities into which such shares shall be converted or exchanged) to any
unaffiliated person less Union Bankshares' purchase price of such shares, (ii)
any amount received by Union Bankshares pursuant to Mid-Coast's repurchase of
shares of Mid-Coast Common Stock received pursuant to the exercise of the Option
less Union Bankshares' purchase price of such shares, and (iii) any amount
received by Union Bankshares' pursuant to Mid-Coast's repurchase of the Option
(or any portion thereof).

   10.   Severability.

   If any term, provision, covenant or restriction contained in this Option
Agreement is held by a court or a federal or state regulatory agency of
competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions and covenants and restrictions contained in this Option
Agreement shall remain in full force and effect, and shall in no way be
affected, impaired or invalidated. If for any reason such court or regulatory
agency determines that the Option will not permit the holder to acquire the full
number of shares of Mid-Coast Common Stock provided in Section 2 hereof (as
adjusted pursuant to Section 6 hereof), it is the express intention of Mid-Coast
to allow the holder to acquire or to require Mid-Coast to repurchase such lesser
number of shares as may be permissible, without any amendment or modification
hereof.

   11.   Miscellaneous.

         (a) Extension. The period for exercise by Union Bankshares and its
assignees of any rights under this Option Agreement shall be extended (i) to the
extent necessary to obtain all regulatory approvals for the exercise of such
rights, and for the expiration of all statutory waiting periods; and (ii) to the
extent necessary to avoid liability under Section 16(b) of the 1934 Act by
reason of such exercise.

         (b) Consents. Each of Union Bankshares and Mid-Coast will use its best
efforts to make all filings with, and to obtain consents of, all third parties
and regulatory authorities necessary to the consummation of the transactions
contemplated by this Option Agreement, including without limitation applying to
the FRB and the Maine Bureau of Banking for approval to acquire the shares
issuable hereunder.

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         (c) Expenses. Except as otherwise expressly provided herein or in the
Merger Agreement each of the parties hereto shall bear and pay all costs and
expenses incurred by it or on its behalf in connection with the transactions
contemplated hereunder, including fees and expenses of its own financial
consultants, investment bankers, accountants and counsel.

         (d) Entire Agreement. Except as otherwise expressly provided herein or
in the Merger Agreement, this Option Agreement contains the entire agreement
between the parties with respect to the transactions contemplated hereunder and
supersedes all prior agreements or understandings with respect thereto, written
or oral. The terms and conditions of this Option Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective
successors and assigns. Nothing in this Option Agreement, expressed or implied,
is intended to confer upon any party, other than the parties hereof, and their
respective successors and assigns, any rights, remedies, obligations or
liabilities under or by reason of this Option Agreement, except as expressly
provided herein.

         (e) Assignment. Neither of the parties hereto may assign any of its
rights or obligations under this Option Agreement or the Option created
hereunder to any other person, without the express written consent of the other
party.

         (f) Notices. All notices or other communications which are required or
permitted hereunder shall be in writing and sufficient if delivered personally
or sent by overnight express or by registered or certified mail, postage
prepaid, addressed as follows:

Mid-Coast

Mid-Coast Bancorp, Inc.
1768 Atlantic Highway
Waldoboro, Maine  04572
Attn: Wesley E. Richardson
Fax Number: (207) 832-7516

Copy to:   Richard Schaberg, Esq.
           Thacher Proffitt & Wood
           1700 Pennsylvania Avenue, N.W.
           Washington, DC  20006
           Fax Number:  (202) 347-6238

Union Bankshares

Union Bankshares Co.
66 Main Street
P. O. Box 479
Ellsworth, Maine  04605
Attn: Peter A. Blyberg
Fax Number:  (207) 667-2865

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Copy to:   Kenneth F. Ehrlich, Esq.
           Peabody & Arnold, LLP
           50 Rowes Wharf
           Boston, Massachusetts  02110
           Fax Number: (617) 951-2125

   A party may change its address for notice purposes by written notice to the
other party hereto.

         (g) Counterparts. This Option Agreement may be executed in any number
of counterparts, and each such counterpart shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.

         (h) Specific Performance. The parties agree that damages would be an
inadequate remedy for a breach of the provisions of this Option Agreement by
either party hereto and that this Option Agreement may be enforced by either
party hereto through injunctive or other equitable relief.

         (i) Governing Law. This Option Agreement shall be governed by and
construed in accordance with the laws of the State of Maine applicable to
agreements made and entirely to be performed within such state, and such federal
laws as may be applicable.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

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         IN WITNESS WHEREOF, each of the parties hereto has executed this Option
Agreement as of the day and year first written above.

                                       MID-COAST BANCORP, INC.

                                       By: /s/ Peter A. Blyberg
                                           -------------------------------------
                                       Name: Peter A. Blyberg
                                       Title: President

Attest:

/s/ Sally Hutchins
----------------------------

                                       UNION BANKSHARES COMPANY

                                       By: /s/ Wesley E. Richardson
                                           -------------------------------------
                                       Name: Wesley E. Richardson
                                       Title:  President
Attest:

/s/ Samuel Cohen
----------------------------

                                       10<PAGE>   1
                                                                    Exhibit 4.2

                             CONNECTED CORPORATION

                           THIRD AMENDED AND RESTATED

                                RIGHTS AGREEMENT

     This Third Amended and Restated Rights Agreement (the "Agreement") is
entered into as of November 3, 1999 by and between Connected Corporation, a
Delaware corporation (the "Company"), and those parties listed on Schedule A
hereto. For purposes of this Agreement the following terms shall have the
following meanings: the holders of the Series D Preferred Stock (the "Series D
Shares") of the Company (the "Series D Holders"); the holders of the Series C
Preferred Shares (the "Series C Shares") of the Company (the "Series C
Holders"); the holders of the Series A Preferred Stock (the "Series A Shares")
of the Company (the "Series A Holders"); the holders of the Series B Preferred
Stock (the "Series B Shares") of the Company (the "Series B Holders," together
with the Series A Holders and Series C Holders, the "ABC Holders"); and David A.
Cane and Howard A. Marson (the "Founders"). The ABC Holders and the Series D
Holders are sometimes collectively referred to herein as the "Preferred
Holders". The Company, the Series A, Series B, Series C and Series D Holders and
the Founders are sometimes referred to herein collectively as the "Parties" or
individually as a "Party." The Founders and the Preferred Holders are sometimes
collectively referred to herein as "Shareholders."

                                    RECITAL
                                    -------

     The Company, the Founders, the Series A Holders, the Series B Holders and
the Series C Holders entered into a Second Amended and Restated Rights
Agreement, dated as of May 28, 1997 (the "1997 Rights Agreement"), which sets
forth certain registration rights and rights of first refusal. The Company, the
Founders, the Series A Holders, the Series B Holders, the Series C Holders and
certain investors and Silicon Valley Bank ("Lender") entered into a Restated
First Amendment to Second Amended and Restated Rights Agreement dated June 11,
1999. The Parties wish to amend and restate the 1997 Rights Agreement, as
amended, so that it reads in its entirety as set forth herein. Pursuant to
Section 3.4 of the Second Amended and Restated Rights Agreement, this Agreement
may be amended by the holders of a majority of the Registrable Securities and
when so amended shall be binding as to all holders of Registrable Securities.

     The Parties now desire to set forth the registration rights applicable to
the Preferred Stock owned by the Holders and the Common Stock owned by the
Founders.

                                   AGREEMENT
                                   ---------

     In consideration of the foregoing and of the mutual promises and covenants
contained herein, the Parties agree as follows:

1. Registration Rights.
   -------------------

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

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

     (b) "Conversion Stock" means the Common Stock issued or issuable upon
conversion of the Series A Shares, the Series B Shares, the Series C Shares and
Series D Shares.

     (c) "Holder" means any person or persons to whom Registrable Securities
were originally issued or qualifying transferees under Section 1.11 hereof who
hold Registrable Securities.

     (d) "Initiating Holders" shall mean any Holder or Holders of at least forty
percent (40%) of the Registrable Securities (excluding Registrable Securities
owned by the Founders).

     (e) "Qualified Public Offering" shall mean a firmly underwritten public
offering of Common Stock resulting in gross proceeds of at least $25.0 million
at a price per share of at least $17.37 (as adjusted for stock splits, stock
dividend and recapitalizations).

     (f) "Registrable Securities" means (i) the Conversion Stock; and (ii) stock
issued in respect of the stock referred to in (i) as a result of a stock split,
stock dividend, recapitalization or the like, which have not been sold to the
public.

     Except for subsections 1.2, 1.4, 1.5, 1.10, 1.11 and 3.4, Registrable
Securities shall also mean shares of Common Stock owned by the Founders.

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

     (j) "Registration Expenses" shall mean all expenses, except as otherwise
stated below, incurred by the Company in complying with Sections 1.2, 1.3 and
1.4 hereof, including, without limitation, all registration, qualification and
filing fees, printing expenses, escrow fees, fees and disbursements of counsel
for the Company, blue sky fees and expenses, the expense of any special audits
incident to or required by any such registration (but excluding the compensation
of regular employees of the Company which shall be paid in any event by the
Company) and the reasonable fees and disbursements of one counsel for all
Holders in the event of each registration provided for in Sections 1.2, 1.3 and
1.4 hereof.

     (k) "Securities Act" shall mean the Securities Act of 1933, as amended, or
any successor statute thereto and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

     (l) "Selling Expenses" shall mean all underwriting discounts, selling
commissions, expense allowances and stock transfer taxes applicable to the
securities registered by the Holders

                                       2
<PAGE>   3
and, except as set forth above, all reasonable fees and disbursements of
counsel for the selling Holders.

     1.2  Requested Registration.

          (a)  Request for Registration. If the Company receives from the
Initiating Holders or the holders of a majority of the Series D Shares a
written request that the Company effect a registration covering either (i) not
less than 25% of the Registrable Securities, or (ii) Registrable Securities
having an anticipated aggregate gross offering price, of at least $5,000,000,
the Company will:

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

               (ii) as soon as practicable, use reasonable commercial efforts
to effect such registration, qualification or compliance (including, without
limitation, appropriate qualification under applicable blue sky or other state
securities laws and appropriate compliance with applicable regulations issued
under the Securities Act and any other governmental requirements or
regulations) as may be so requested and as would permit or facilitate the sale
and distribution of all or such portion of such Registrable Securities as are
specified in such request, together with all or such portion of the Registrable
Securities of any Holder or Holders joining in such request as are specified in
a written request received by the Company within twenty (20) days after receipt
of such written notice from the Company; provided, however, that the Company
shall not be obligated to take any action to effect any such registration,
qualification or compliance pursuant to this Section 1.2:

                    (A)  Before 180 days after the closing of the initial
public offering of its Common Stock, provided that the foregoing limitation
shall terminate on the date which is four (4) years from the date of this
Agreement;

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

                    (C)  If the Company shall furnish to such Holders a
certificate signed by the President of the Company stating that in the good
faith judgment of the Board of Directors it would be seriously detrimental to
the Company or its stockholders for a registration statement to be filed in the
near future, then the Company's obligation to use reasonable commercial efforts
to register, qualify or comply under this Section 1.2 shall be deferred for a
period not to exceed ninety (90) days from the date of receipt of written
request from the Initiating Holders, provided that the Company may not use this
right more than once in any twelve month period; or

                    (D)  After the Company has effected four (4) registrations
pursuant to this Section 1.2, not more than two (2) such registrations at the
request of the Series D Holders and

                                       3
<PAGE>   4
no more than two (2) such registrations at the request of the ABC Holders, and
such registrations have been declared or ordered effective.

Subject to the foregoing clauses (A) through (D), the Company shall file a
registration statement covering the Registrable Securities so requested to be
registered as soon as practicable, after receipt of the request or requests of
the Initiating Holders or the holders of a majority of the Series D Shares.
Notwithstanding any other provision to the contrary, the Company shall not take
any action to effect any such registration, qualification or compliance
pursuant to this Section 1.2 within twelve (12) months from the date hereof,
without the consent of the holders of a majority of the Series D Shares.

          (b) Underwriting. In the event that a registration pursuant to
Section 1.2 is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as part of the notice given pursuant to
Section 1.2(a)(i). In such event, the right of any Holder to participate in
such registration shall be conditioned upon such Holder's participation in the
underwriting arrangements required by this Section 1.2, and the inclusion of
such Holder's Registrable Securities in the underwriting to the extent
requested shall be limited to the extent provided herein.

          The Company shall (together with all Holders proposing to distribute
their securities through such underwriting) enter into an underwriting
agreement in customary form with the managing underwriter selected for such
underwriting by a majority in interest of the Initiating Holders or the holders
of a majority of the Series D Shares, as the case may be, but subject to the
Company's reasonable approval. Notwithstanding any other provision of this
Section 1.2, if the managing underwriter advises the Initiating Holders and the
holders of a majority of the Series D Shares in writing that marketing factors
require a limitation of the number of shares to be underwritten, then the
Company shall so advise all participating Holders and the number of shares of
Registrable Securities that may be included in the registration and
underwriting shall be allocated among all Holders thereof in proportion, as
nearly as practicable, to the respective amounts of Registrable Securities held
by such Holders at the time of filing the registration statement, provided
however that notwithstanding any other provision of this Section 1.2, the
holders of the Series D Preferred shall be entitled to register not less than
50% of the shares to be underwritten in any registration pursuant to the first
two registrations initiated under this Section 1.2. No Registrable Securities
excluded from the underwriting by reason of the underwriter's marketing
limitation shall be included in such registration. If the underwriter has not
limited the number of Registrable Securities to be underwritten, the Company
may include securities for its own account (or for the account of other
stockholders) in such registration if the underwriter so agrees and if the
number of Registrable Securities that would otherwise have been included in
such registration and underwriting will not thereby be limited.

          If any Holder of Registrable Securities disapproves of the terms of
the underwriting, such person may elect to withdraw therefrom by written notice
to the Company, the managing underwriter and the Initiating Holders.

1.3. Company Registration.

                                       4

<PAGE>   5
          (a)  Notice of Registration.  If, at any time prior to the fifth
anniversary of the closing date of the Company's initial public offering of its
Common Stock in a firm commitment underwritten public offering pursuant to a
registration statement under the Securities Act, the Company shall determine to
register any of its securities, either for its own account or the account of a
security holder or holders, other than (i) a registration relating solely to
employee benefit plans, (ii) a registration relating solely to a transaction
under Rule 145 under the Securities Act, or (iii) a registration effected
pursuant to Sections 1.2 or 1.4 hereof, the Company will;

               (i)  promptly give to each Holder written notice thereof; and

               (ii) include in such registration (and any related qualification
under blue sky laws or other compliance), and in any underwriting involved
therein, all the Registrable Securities specified in a written request or
requests, made within twenty (20) days after receipt of such written notice from
the Company, by any Holder; provided that the Holder making such request would
have been unable to sell all of its or his Registrable Securities pursuant to
Rule 144 under the Securities Act in the four-week period immediately preceding
the date of such written notice.

          (b)  Underwriting.  If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to Section 1.3(a)(i). In such event, the right of any Holder to
register pursuant to Section 1.3 shall be conditioned upon such Holder's
participation in such underwriting to the extent provided herein. All Holders
proposing to distribute their securities through such underwriting shall
(together with the Company and the other holders distributing their securities
through such underwriting) enter into an underwriting agreement in customary
form with the managing underwriter selected for such underwriting by the
Company. Notwithstanding any other provision of this Section 1.3, if the
managing underwriter determines that marketing factors require limitation of the
number of shares to be underwritten, the managing underwriter may limit the
Registrable Securities to be included in such registration. The Company shall so
advise all Holders and the number of shares of securities that may be included
in the registration and underwriting (other than on behalf of the Company) shall
be allocated among all Holders in proportion, as nearly as practicable, to the
respective amounts of Registrable Securities held by such Holders; provided,
however, in no event shall the amount of Registrable Securities of the 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 Holders
may be excluded entirely if the underwriters make the determination described
above and provided that all other stockholders desiring to sell shares in the
offering are excluded). No securities of the Company held by parties other than
the Holders or the Company shall be included in any registration and
underwriting to which this section applies if the number of Registrable
Securities that would otherwise have been included in such registration and
underwriting will thereby be limited. If any Holder disapproves of the terms of
any such underwriting, he may elect to withdraw therefrom by written notice to
the Company and the managing underwriter.

     1.4. Registration on Form S-3.

                                       5
<PAGE>   6

     (a) If (i) any Holder or Holders holding in the aggregate not less than
ten percent (10%) of the then outstanding Registrable Securities or (ii) the
holders of a majority of the then outstanding Series D Shares requests that the
Company file a registration statement on Form S-3 (or any successor form to
Form S-3) for a public offering of shares of the Registrable Securities, the
reasonably anticipated aggregate price to the public of which, net of
underwriting discounts and commissions, would exceed $500,000, and the Company
is a registrant entitled to use Form S-3 to register the Registrable Securities
for such an offering, the Company shall use reasonable commercial efforts to
cause such Registrable Securities to be registered for the offering on such
form and to cause such Registrable Securities to be qualified in such
jurisdictions as the Holder or Holders may reasonably request; provided,
however, that the Company shall not be required to effect more than one (1)
registration pursuant to this Section 1.4 in any six (6) month period. The
substantive provisions of Section 1.2(b) shall be applicable to each
registration initiated under this Section 1.4.

     (b) Notwithstanding the foregoing, the Company shall not be obligated to
take any action pursuant to this Section 1.4;

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

          (ii) within ninety (90) days of the effective date of any
registration referred to in Sections 1.2 and 1.3 above, 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 Company shall furnish to such Holder a certificate
signed by the President of the Company stating that in the good faith judgment
of the Board of Directors it would be seriously detrimental to the Company or
its stockholders for registration statements to be filed in the near future,
then the Company's obligation to use reasonable commercial efforts to file a
registration statement shall be deferred for a period not to exceed ninety (90)
days from the receipt of the request to file such registration by such Holder,
provided that the Company may not use this right more than once in any twelve
month period.

     1.5.  Limitations on Subsequent Registration Rights. From and after the
date hereof, without the approval of the holders of a majority of the Series D
Shares and the holders of a majority of the Registrable Securities, the Company
shall not enter into any agreement granting any holder or prospective holder of
any securities of the Company registration rights with respect to such
securities, including more favorable standoff obligations, which are senior to
or on par with the registration rights granted to the Holders hereunder or
which would have the effect of reducing the amount of Registrable Securities
included in a registration by any Holder.

     1.6.  Expenses of Registration. All Registration Expenses incurred in
connection with all registrations pursuant to Sections 1.2 and 1.3 and the
first four registrations pursuant to Section 1.4 shall be borne by the Company.
Unless otherwise stated, all Selling Expenses relating to securities

                                       6
<PAGE>   7
registered on behalf of the Holders shall be borne by the Holders of such
securities pro rata on the basis of the number of shares so registered.

     1.7. Registration Procedures. In the case of each registration,
qualification or compliance effected by the Company pursuant to this Section 1,
the Company will keep each Holder advised in writing as to the initiation of
each registration and as to the completion thereof. At its expense the Company
will:

          (a) Prepare and file with the Commission a registration statement with
respect to such securities and use reasonable commercial efforts to cause such
registration statement to become and remain effective for at least one hundred
eighty (180) days or until the distribution described in the Registration
Statement has been completed;

          (b) Furnish to the Holders participating in such registration and to
the underwriters of the securities being registered such reasonable number of
copies of the registration statement, preliminary prospectus, final prospectus
and such other documents as such underwriters may reasonably request in order to
facilitate the public offering of such securities;

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

          (d) Use reasonable commercial 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 Securities 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; and

          (g) Use best commercial 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

                                       7
<PAGE>   8
securities becomes effective, (i) an opinion, dated such date, of the counsel
representing the Company for the purposes of such registration, in form and
substance as is customarily given to underwriters in an underwritten public
offering, addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities and (ii) a letter dated such date, from
the independent certified public accountants of the Company, in form and
substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to the
underwriters, if any, and to the Holders requesting registration of Registrable
Securities.

     1.8  Indemnification.

          (a)  The Company will indemnify each Holder, each of its officers and
directors and partners, and each person controlling such person within the
meaning of Section 15 of the Securities Act, with respect to which registration,
qualification or compliance has been effected pursuant to this Section 1, and
each underwriter, if any, and each person who controls any underwriter within
the meaning of Section 15 of the Securities Act, against all expenses, claims,
losses, damages or liabilities (or actions in respect thereof), including any
of the foregoing incurred in settlement of any litigation, commenced or
threatened, arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any registration statement,
prospectus, offering circular or other document, or any amendment or supplement
thereto, incident to any such registration, qualification or compliance, or
based on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances in which they were made, not misleading, or any
violation by the Company of the Securities Act or any rule or regulation
promulgated under the Securities Act applicable to the Company in connection
with any such registration, qualification or compliance, and the Company will
reimburse each such Holder, each of its officers and directors, and each person
controlling such Holder, each such underwriter and each person who controls any
such underwriter, for any legal and any other expenses reasonably incurred in
connection with investigating, preparing or defending any such claim, loss,
damage, liability or action, provided that the Company will not be liable to
any such person in any such case to the extent that any such claim, loss,
damage, liability or expense arises out of or is based on any untrue statement
or omission (or alleged untrue statement or omission), made in reliance upon
and in conformity with written information furnished to the Company by an
instrument duly executed by such Holder, controlling person or underwriter and
stated to be specifically for use therein or in connection with the preparation
thereof.

          (b)  Each Holder will, if Registrable Securities held by such Holder
are included in the securities as to which such registration, qualification or
compliance is being effected, indemnify the Company, each of its directors and
officers, each underwriter, if any, of the Company's securities covered by such
a registration statement, each person who controls the Company or such
underwriter within the meaning of Section 15 of the Securities Act, and each
other such Holder, each of its officers and directors and each person
controlling such Holder within the meaning of Section 15 of the Securities Act,
against all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of any untrue statement (or alleged untrue statement) of a
material fact contained in any such registration statement, prospectus,
offering circular or other document, or any omission (or alleged omission) to
state therein a material fact

                                       8
<PAGE>   9
required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse the Company, such Holders, such directors,
officers, persons, underwriters or control persons for any legal or any other
expenses reasonably incurred in connection with investigating, preparing or
defending any such claim, loss, damage, liability or action, in each case to
the extent, but only to the extent, that such untrue statement (or alleged
untrue statement) or omission (or alleged omission) is made in such
registration statement, prospectus, offering circular or other document in
reliance upon and in conformity with written information furnished to the
Company by an instrument duly executed by such Holder and stated to be
specifically for use therein or in connection with the preparation thereof.
Notwithstanding the foregoing, the liability of each Holder under this
subsection (b) shall be limited to an amount equal to the aggregate proceeds
received by such Holder from the sale of Registrable Securities in such
registration.

          (c)  Each party entitled to indemnification under this Section 1.8
(the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be
withheld), and the Indemnified Party may participate in such defense at such
party's expense, and provided further that the failure of any Indemnified Party
to give notice as provided herein shall not relieve the Indemnifying Party of
its obligations under this Section 1 unless the failure to give such notice is
materially prejudicial to an Indemnifying Party's ability to defend such action
and provided further, that the Indemnifying Party shall not assume the defense
for matters as to which there is a conflict of interest or separate and
different defenses. No Indemnifying Party, in the defense of any such claim or
litigation, shall, except with the consent of each Indemnified Party, consent to
entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation.

     1.9  Information by Holder. The Holders of securities included in any
registration shall furnish to the Company such information regarding such
Holders, the Registrable Securities held by them and the distribution proposed
by such Holders as the Company may request in writing and as shall be required
in connection with any registration, qualification or compliance referred to in
this Section 1.

     1.10 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit the
sale of the Registrable Securities to the public without registration, after
such time as a public market exists for the Common Stock of the Company, the
Company agrees to use reasonable commercial efforts to:

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

                                       9
<PAGE>   10
          (b) File with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act
(at any time after it has become subject to such reporting requirements);

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

    1.11. Transfer of Registration Rights. The rights to cause the Company to
register securities granted to Holders under this Agreement may be assigned to
a transferee or assignee in connection with any transfer or assignment of
Registrable Securities by a Holder, provided that: (i) such assignment or
transfer may otherwise be effected in accordance with applicable securities
laws, (ii) such assignee or transferee agrees to be bound by the terms and
conditions of this Agreement, and (iii) either (A) such assignee or transferee
acquires at least 100,000 shares of Registrable Securities (appropriately
adjusted for stock splits, combinations, dividends, distributions and
recapitalizations) not sold to the public, or (B) such assignee or transferee
is a partner, stockholder, subsidiary, member, affiliate, affiliated
partnership managed by a Holder, family member, family trust or the estate of
the Holder.

    1.12. Standoff Agreement.

          (a) Standoff. Each Party hereby agrees that in connection with the
Company's initial public offering of the Company's securities that, upon
request of the Company or the underwriters managing any underwritten offering
of the Company's securities, a Holder shall not 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 include in the registration)
without prior written consent of the Company or such underwriters, as the case
may be, for such period of time (not to exceed one hundred eighty (180) days)
from the effective date of such registration as may be requested by the Company
or underwriters, as the case may be; provided, that the Company or the
underwriters have obtained similar commitments from all of the directors and
officers of the Company and all holders of more than two percent (2%) of the
Company's capital stock.

          (b) Company Obligation. The Company will enter into a standoff
agreement essentially similar to the standoff agreement contained in subsection
1.12(a) above with each holder of equity securities of the Company or
securities convertible into or exercisable for equity securities of the
Company.

                                       10

<PAGE>   11
     1.13 Qualified Public Offering. In the event of any Qualified Public
Offering of Common Stock, the Series D Holders shall have the right to purchase
up to an aggregate of 10% of the registrable shares offered for sale pursuant
to such offering.

2.   Right of First Refusal Upon Issuance of Securities by the Company.

     2.1. Right of First Refusal. The Company hereby grants to each Series A,
Series B, Series C and Series D Holder (the "Rights Holders") the right of
first refusal to purchase, pro rata, in order to maintain the Rights Holder's
percentage ownership interest in the Company, all or any part of New Securities
(as defined in Section 2.3 below) which the Company may, from time to time,
propose to sell and issue. A pro rata share, for purposes of this right of
first refusal, is the ratio that the number of shares of Common Stock issued or
issuable to each Rights Holder bears to the sum of the total number of shares
of Common Stock then outstanding (assuming conversion of all preferred stock of
the Company into Common Stock and the exercise of all outstanding options,
warrants and other rights to acquire Common Stock).

     2.2. "Equity Securities" shall mean any securities having voting rights in
the election of the Board of Directors not contingent upon default, or any
securities evidencing an ownership interest in the Company, or any securities
convertible into or exercisable for any shares of the foregoing, or any
securities issuable pursuant to any agreement or commitment to issue any of the
foregoing.

     2.3. Except as set forth below, "New Securities" shall mean any Equity
Securities, whether or not now authorized, and rights, options or warrants to
purchase said Equity Securities. Notwithstanding the foregoing, "New Securities"
does not include (i) Common Stock issued to employees, officers, consultants or
directors of the Company pursuant to sales or options granted or awards made at
any time after the date of incorporation of the Company; (ii) securities offered
to the public generally pursuant to a registration statement trader the
Securities Act; (iii) securities issued pursuant to the acquisition of another
corporation by the Company by merger, purchase of substantially all of the
assets or other reorganization whereby the Company or its stockholders own not
less than fifty-one (51%) percent of the voting power of the surviving or
successor corporation; (iv) the Conversion Stock; or (v) stock issued in
connection with any stock split, stock dividend or recapitalization by the
Company.

     2.4. In the event the Company proposes to undertake an issuance of New
Securities, it shall give each Rights Holder written notice of its intention,
describing the type of New Securities, and the price and terms upon which the
Company proposes to issue the same. Each Rights Holder shall have twenty (20)
days from the date of receipt of any such notice to agree to purchase up to its
respective pro rata share of such New Securities for the price and upon the
applicable terms specified in the notice by giving written notice to the Company
and stating therein the quantity of New Securities to be purchased.

     2.5. In the event a Rights Holder fails to exercise the right of first
refusal within said twenty (20) day period (a "Non-Electing Rights Holder"),
the Company shall give each of the remaining Rights Holders written notice of
the number of shares of New Securities that remain available for purchase. Each
remaining Rights Holder shall then have five (5) days from the date of receipt
of any such notice to agree to purchase up to its respective pro rata share of
such New

                                       11

<PAGE>   12
Securities (determined without reference to the number of shares of Common
Stock issued or issuable to the Non-Electing Rights Holder) for the price and
upon the applicable terms specified in the notice referred to in Section 2.4
above, by giving written notice to the Company and stating therein the quantity
of New Securities to be purchased.

     2.6.  In the event less than all of the New Securities are purchased by the
Rights Holders, the Company shall have ninety (90) days thereafter to sell or
enter into an agreement (pursuant to which the sale of New Securities covered
thereby shall be closed, if at all, within sixty (60) days from the date of
said agreement) to sell the New Securities not elected to be purchased by
Rights Holders at the price and upon the terms no more favorable to the
purchasers of such securities than specified in the Company's notice. In the
event the Company has not sold the New Securities within said ninety (90) day
period (or sold and issued New Securities in accordance with the foregoing
within sixty (60) days from the date of said agreement), the Company shall not
thereafter issue or sell any New Securities, without first offering such
securities in the manner provided above.

     2.7.  The right of first refusal granted under this Agreement shall expire
on the effective date of the Company's Qualified Public Offering pursuant to a
registration statement under the Securities Act.

     2.8.  The right of first refusal hereunder may be assigned to a transferee
or assignee in connection with any transfer or assignment of the Series A
Shares, the Series B Shares, the Series C Shares or the Series D Shares or the
Conversion Stock by a Rights Holder provided that: (i) such assignment or
transfer may otherwise be effected in accordance with applicable securities
laws, (ii) such assignee or transferee agrees to be bound by the terms and
conditions of this Agreement, and (iii) either (A) such assignee or transferee
acquires at least 100,000 shares of Registrable Securities (appropriately
adjusted for stock splits, combinations, dividends, distributions and
recapitalizations) not sold to the public, or (B) such assignee or transferee
is a partner, stockholder, subsidiary, or affiliate of, or an affiliated
partnership managed by, a Rights Holder, family member, family trust or the
estate of the Rights Holder.

3. Miscellaneous.

     3.1. Governing Law. This Agreement shall be governed in all respects by
the laws of the State of Delaware as applied to transactions taking place
between Delaware residents and wholly within the State of Delaware.

     3.2. Survival. The representations, warranties, covenants and agreements
made herein shall survive any investigation made by any Series A, Series B,
Series C or Series D Holder and the closing of the transactions contemplated
hereby.

     3.3. Successors and Assigns. Except as otherwise provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto.

                                       12

<PAGE>   13
     3.4 Entire Agreement; Amendment. This Agreement constitutes the full and
entire understanding and agreement between parties with regard to the subjects
hereof, and no party shall be liable or bound to any other party in any manner
by any warranties, representations or covenants except as specifically set
forth herein. With the written consent of the record or beneficial Holders of a
majority of the Registrable Securities (excluding Registrable Securities held
by the Founders), the obligations of the Company and the rights of the Holders
of the Registrable Securities under this Agreement may be waived (either
generally or in a particular instance, either retroactively or prospectively,
and either for a specified period of time or indefinitely), and with the same
consent the Company, when authorized by resolution of its Board of Directors,
may enter into a supplementary agreement for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement; provided, however, that no such modification, amendment or
waiver shall reduce the aforesaid percentage of Registrable Securities without
the consent of all of the Holders of the Registrable Securities and none of the
rights of the Founders under this Agreement may be waived or modified without
their written consent; and provided, further, that such modification,
amendment, waiver or other action shall affect the Holders of each class or
series of stock, as well as all shares of stock within any given class or
series, in the same manner. Upon the effectuation of each such waiver, consent,
agreement of amendment or modification, the Company shall promptly give written
notice thereof to the record holders of the Registrable Securities who have not
previously consented thereto in writing. This Agreement or any provision hereof
may be changed, waived, discharged of terminated only by a statement in writing
signed by the party against which enforcement of the change, waiver, discharge
or termination is sought, except to the extent provided in this Section 3.4.
This Section 3.4 may be amended, waived or terminated only with the written
consent of all of the Holders of the Registrable Securities.

     3.5. Notices, etc. All notices and other communications required or
permitted hereunder shall be in writing and shall be delivered personally,
mailed by first class mail, postage prepaid, or delivered by courier or
overnight delivery, addressed (a) if to a Holder, at such Holder's address set
forth on the signature pages hereof, or at such other address as such Holder
shall have furnished to the Company in writing or (b) if the Company, at 63
Fountain street, Framingham, MA 01701, or at such other address as the Company
shall have furnished to each Purchaser in writing. Notices that are mailed
shall be deemed received five (5) days after deposit in the United States mail.

     3.6. Delays or Omissions. Except as expressly provided herein, no delay
or omission to exercise any right, power or remedy accruing to any holder of
any Registrable Securities, upon any breach or default of the Company under
this Agreement, shall impair any such right, power or remedy of such holder
nor shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or a waiver of or acquiescence in any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any holder of any breach or default under this
Agreement, or any waiver on the part of any holder of any provisions or
conditions of this agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any holder shall be
cumulative and not alternative.

                                       13

<PAGE>   14
     3.7. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

     3.8. Severability. If any provision of this Agreement, or the application
thereof, shall for any reason and to any extent be invalid or unenforceable, the
remainder of this Agreement and application of such provision to persons or
circumstances shall be interpreted so as best to reasonably effect the intent of
the parties hereto, the parties further agree to replace such void or
unenforceable provision of this Agreement with a valid and enforceable provision
which will achieve to the extent possible, the economic, business and other
purposes of the void or unenforceable provision.

                            [SIGNATURE PAGE FOLLOWS]

                                       14
<PAGE>   15
                                   SCHEDULE A

HOLDERS OF SERIES A PREFERRED STOCK
H&Q Connected Investors L.P.
Technologies for Information and Entertainment III, L.P.
1995 Fisher Family Trust UTA 10/10/95, Lisa T. Rosenbaum, Trustee
Steven Kalmanovitz

HOLDERS OF SERIES B PREFERRED STOCK
Softbank Ventures, Inc.
H&Q Connected Investors L.P.
Technologies for Information and Entertainment III, L.P.
Ronald Lachman
The Ezra Goldman Trust, Ezra Goldman, Trustee
Solstice Capital L.P.
The Carl Lazarus 1996 Revocable Living Trust, Carl Lazarus, Trustee
Howard Lee Morgan
Morris Ventures
David Hirschman
1995 Fisher Family Trust UTA 10/10/95, Lisa T. Rosenbaum, Trustee

HOLDERS OF SERIES C PREFERRED STOCK
Intel Corporation
Technologies for Information and Entertainment III, L.P.
H&Q Connected Investors L.P.
Solstice Capital L.P.
David Hirschman
Morris Ventures
East river Ventures, L.P.
Michael T. Lash
Robert Hartman
Hudson River Capital, LLC
GKH Partners, L.P.
GKH Investments, L.P.

HOLDERS OF SERIES D PREFERRED STOCK
Silicon Valley Bank
David Hirschman
Craig Randall
Carl Lazarus
Norman Meisner
James Priest
David Cane
Technologies for Information and Entertainment III, L.P.
Softbank America, Inc.
Middlefield Ventures
<PAGE>   16
Charles Robbins
William Keating
David Arthur Norman and Mamie Ruth Norman TTE Norman
          Family Revocable Trust u/a dated 8/20/87
Ronald Lachman
Charles Kline
Solstice Capital, L.P.
H&Q Connected Investors L.P.
Hambrecht and Quist Employee Venture Fund, L.P.
J3D Family Limited Partnership
The TIE Mezzanine Fund, L.P.

<PAGE>   17
The foregoing agreement is hereby executed as of the date first above written.

                                                    CONNECTED CORPORATION

                                                    By: /s/ David A. Cane
                                                       -------------------
                                                       David A. Cane, President

                      [COUNTERPART SIGNATURE PAGES FOLLOW]

Third Amended and Restated Rights Agreement
<PAGE>   18
                         PURCHASERS:         BAKER COMMUNICATIONS FUND, L.P.

                                             By: Baker Capital Partners, LLC.
                                                -----------------------------
                                                 Its General Partner

                                             By: /s/ Ashley Leeds
                                                -----------------------------
                                                 Ashley Leeds, Manager

                                             By: /s/ Larry Bettino
                                                -----------------------------
                                                 Larry Bettino, Manager

                      [COUNTERPART SIGNATURE PAGES FOLLOW]

Third Amended and Restated Rights Agreement
<PAGE>   19
PURCHASERS:                            FIDELITY VENTURES TELECOM AND
                                       TECHNOLOGY II LIMITED
                                       PARTNERSHIP

                                       By: Fidelity Investors Management, LLC
                                           Its General Partner

                                       By: /s/ Donald S. Heaton
                                           __________________________________
                                       Name:  Donald S. Heaton
                                       Title: Vice President

                                       FIDELITY INVESTORS II LIMITED
                                       PARTNERSHIP

                                       By: Fidelity Investors Management, LLC,
                                           Its General Partner

                                       By: /s/ Donald S. Heaton
                                           __________________________________
                                       Name:  Donald S. Heaton
                                       Title: Vice President

                                       FTT VENTURES LIMITED

                                       By: /s/ Donald S. Heaton
                                           __________________________________
                                       Name:  Donald S. Heaton
                                       Title: Vice President

                      [COUNTERPART SIGNATURE PAGES FOLLOW]

Third Amended and Restated Rights Agreement

<PAGE>   20
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                                  COMMON HOLDERS:

                                                  By: /s/ David A. Cane
                                                      -----------------
                                                  Name: David A. Cane
                                                  Title:

                                                  Address: 63 Fountain Street
                                                           Framingham, MA 01702

<PAGE>   21
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                             EAST RIVER VENTURES L.P.

                                             By: /s/ Walter A. Carozzo
                                                 ---------------------
                                             Name: Walter A. Carozzo
                                             Title: Manager of General Partner

                                             Address: 645 Madison Avenue
                                                      22nd Floor
                                                      New York, NY 10022
                                                      Attn: Alicia Lindgren

<PAGE>   22
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                          GKH INVESTMENTS, L.P.

                                          By:
                                              -----------------------
                                          Name:
                                          Title:

                                          Address: 200 West Madison
                                                   Suite 2710
                                                   Chicago, IL 60606

<PAGE>   23
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                             GKH PARTNERS, L.P.

                                             By:
                                                 --------------------------
                                             Name:
                                             Title:

                                             Address: 200 West Madison
                                                      Suite 2710
                                                      Chicago, IL 60606
<PAGE>   24
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                             THE EZRA S. GOLDMAN TRUST

                                             By: /s/ Ezra S. Goldman
                                                 --------------------------
                                             Name: Ezra S. Goldman, Trustee
                                             Title:

                                             Address: 1720 Shagbark Court
                                                      Naperville, IL 60565

Common Stockholder and Preferred Stockholder

<PAGE>   25
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                         H&Q CONNECTED INVESTORS, L.P.

                                         By:
                                             --------------------------
                                         Name:
                                         Title: Attorney-in-fact

                                         Address: H&Q Connected Investors, L.P.
                                                  c/o Hambrecht & Quist Ventures
                                                  One Bush Street, 15th Floor
                                                  San Francisco, CA 94104

Preferred Stockholder and Noteholder
<PAGE>   26
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        By: /s/ David Hirschman
                                            ----------------------------
                                        Name:   David Hirschman
                                        Title:

                                        Address: 8 Kings Road
                                                 Sharon, Massachusetts 02067

Common Stockholder and Preferred Stockholder
<PAGE>   27
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        J3D FAMILY LIMITED PARTNERSHIP

                                        By: /s/ Doug L. Michels
                                            ----------------------------
                                        Name:   Doug L. Michels, Trustee
                                        Title:

                                        Address: 4717 Branciforte Drive
                                                 Santa Cruz, CA 95065
<PAGE>   28
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                       By: /s/ Steven Kalmanovitz
                                         ----------------------------
                                         Name: Steven Kalmanovitz
                                         Title:

                                         Address: 4004 Eagle Nest Lane
                                                  Danville, CA 94506

Preferred Stockholder

<PAGE>   29
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                       By: /s/ William Keating
                                           ----------------------------
                                       Name: William Keating
                                       Title:

                                       Address: 14903 Three Oaks Court
                                       Saratoga, CA 95070

Noteholder

<PAGE>   30
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                        By: /s/ Ronald D. Lachman
                          ----------------------------
                        Name: Ronald D. Lachman
                        Title:

                        Address: 3140 Whisperwoods Court
                                 Northbrook, Illinois 60062
<PAGE>   31
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                        By: /s/ Michael Lash
                          ----------------------------
                        Name: Michael Lash
                        Title:

                        Address: 544 Palm Avenue
                                 Los Altos, California 94022

Preferred Stockholder
<PAGE>   32
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                       THE CARL LAZARUS 1996
                                       REVOCABLE LIVING TRUST

                                       By: /s/ Carl Lazarus
                                           -----------------------
                                       Name: Carl Lazarus, Trustee
                                       Title:

                                       Address: c/o Connected Corporation
                                                63 Fountain Street
                                                Framingham, Massachusetts
                                                01701
<PAGE>   33
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        By: /s/ Carl Lazarus
                                            -------------------------------
                                        Name:  Carl Lazarus
                                        Title:

                                        Address: 130 Berkeley Street
                                                 West Newton, MA 02465

Noteholder
<PAGE>   34
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        By: /s/ Norman B. Meisner
                                            -------------------------------
                                        Name:  Norman Meisner
                                        Title:

                                        Address: 15 Hampden Terrace
                                                 Newton, MA 02459

<PAGE>   35
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                      By: /s/ Howard Lee Morgan
                                         --------------------------
                                      Name: Howard Lee Morgan
                                      Title:

                                      Address: 764 Mt. Moro Road
                                               Villanova, Pennsylvania 19085
<PAGE>   36
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                      MORRIS VENTURES

                                      By: /s/ Anthony P. Morris
                                         --------------------------
                                      Name: Anthony P. Morris
                                      Title: Managing G.P.

<PAGE>   37
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                       DAVID ARTHUR NORMAN AND
                                       MAMIE ARTHUR NORMAN TTEE
                                       NORMAN FAMILY REVOCABLE
                                       TRUST U/A DATED 8/20/87

                                       By: /s/ David Norman
                                       -------------------------------
                                       Name: David Norman
                                       Title:

                                       Address: 16101 Greenwood Road
                                                Montel Serno, CA 95030

Noteholder
<PAGE>   38
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                       By: /s/ James Priest
                                           -----------------------------
                                           Name: James Priest
                                           Title:

                                           Address: 121 Dexter Place
                                                    Escondido, CA 92029
<PAGE>   39
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        By: /s/ Charles R. Robbins
                                            ------------------------
                                            Name: Charles R. Robbins
                                            Title:

                                            Address: 16 Queens Circle
                                                     Sharon, MA 02067

Common Stockholders and Noteholder

<PAGE>   40
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        THE FISHER FAMILY 1995 TRUST
                                        U/T/A 10/10/95 WITH RONALD D.
                                        FISHER AS DONOR

                                        By: /s/ Lisa T. Rosenbaum
                                            --------------------------------
                                            Name: Lisa T. Rosenbaum, Trustee
                                            Title:

                                            Address: Ronald Fisher
                                                     99 Kirkstall Road
                                                     Newton, MA  02106

Preferred Stockholder

<PAGE>   41
                             CONNECTED CORPORATION
                 SECOND AMENDED AND RESTATED CO-SALE AGREEMENT

                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        SOFTBANK VENTURES, INC.

                                        By: /s/ Yoshitaka Kitao
                                            ----------------------------
                                        Name:   Yoshitaka Kitao
                                        Title:  President and CEO

                                        Address: 3-23 Kanda-Nishikicho
                                                 Chiyoda-ku Tokyo 101-0054
                                                 JAPAN

Second Amended and Restated Co-Sale Agreement

<PAGE>   42
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        SOLSTICE CAPITAL, L.P.

                                        BY: SOLSTICE CAPITAL G.P.L.P.

                                        By: /s/ Henry Newman
                                            -------------------------------
                                        Name:  Henry W. Newman
                                        Title: General Partner

                                        Address: 33 Broad Street
                                                 3rd Floor
                                                 Boston, MA 02109

Preferred Stockholder
<PAGE>   43
                             CONNECTED CORPORATION
                           THIRD AMENDED AND RESTATED
                                RIGHTS AGREEMENT
                                November 3, 1999

                           COUNTERPART SIGNATURE PAGE

                                        TECHNOLOGIES FOR
                                        INFORMATION AND
                                        ENTERTAINMENT III, L.P.

                                        By: /s/ Fred Bamber
                                            -------------------------------
                                        Name:  Fred Bamber
                                        Title: General Partner

                                        THE TIE MEZZANINE FUND, L.P.

                                        By: /s/ Fred Bamber
                                            -------------------------------
                                        Name:  Fred Bamber
                                        Title: General Partner

                                        Address: TIE III, L.P.
                                                 c/o Applied Technology
                                                 One Cranberry Hall
                                                 Lexington, MA 02173

Preferred Stockholder and Noteholder

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