Document:

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                                                                   Exhibit 10.15

                                           *** Text Omitted and Filed Separately
                                                Confidential Treatment Requested
                                            Under 17 C.F.R. (S)(S) 200.80(b)(4),
                                                              200.83 and 230.406

                        SERVICE IMPLEMENTATION AGREEMENT

                                    Between

                   Akamai Technologies, Inc. and Cidera Inc.

     This Service Implementation Agreement ("Agreement") is entered into as of
May 22, 2000, (the "Effective Date") by and between Cidera, Inc., a Delaware
corporation having its principal place of business at 3087 Laurel Lakes Drive,
Laurel, MD 20707 ("Cidera"), and Akamai Technologies, Inc., a Delaware
corporation having its principal place of business at 500 Technology Square,
Cambridge, MA 02139 ("AKAMAI"). Cidera and AKAMAI are referred to herein
collectively as the "Parties" and individually as a "Party".

                                    PREAMBLE

     Whereas, Cidera is in the process of building a satellite based Global
Broadcast Overlay Network (GBON) for the Internet that facilitates the
distribution of Media to servers located on the edge of the Internet.

     Whereas, Akamai provides Internet content and streaming media delivery
services and applications delivery and execution though a worldwide server
network (the "Akamai Services") and Cidera intends to distribute streaming media
over the GBON (the "Cidera Service").  Both Parties agree that delivery of
AKAMAI customer's content via Cidera's GBON may potentially offer financial and
performance advantages to AKAMAI.

     Now, Therefore, in consideration of the mutual promises and covenants set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as
follows:

                                   AGREEMENT

1.  Definitions:

    The following capitalized terms shall have the meanings as set forth below:

    1.1  "Akamai Services" has the meaning set for the in the Preamble.
<PAGE>

    1.2  "Audio/Video Service Provider" means a company, or a division of a
company, that provides Internet audio and/or video hosting, and/or management
services to Clients.

    1.3  "Client" means a Media owner, licensor, producer, aggregator, and/or
syndicator whether acting directly or through an agency.

    1.4  "Co-Location Facility" means a facility which provides co-location to
the general public and which has at least 5,000 square feet of net machine co-
location space.

    1.5  "Media" means content containing live, simulated live, on-demand, or
downloadable audio and/or video using any major video compression formats such
as Microsoft Windows Media, RealNetworks RealMedia, Apple Quicktime, MPEG, and
streaming Java.

    1.6  "Locations" means current or future facilities at which Cidera makes
available its receive-only satellite capability and to which AKAMAI connects to
receive Media delivered by Cidera to AKAMAI equipment.

    1.7  "Non-Enterprise Network" means a network that resells bandwidth as part
of its normal course of business, including without limitation, ISPs, cable head
ends, DSL nodes and college or university networks.

    1.8  "Committed Capacity" means the amount of broadcast bandwidth in Mbps.
increments for AKAMAI's sole use on a 7 day, 24 hour basis.

    1.9  "String of Equipment" means a satellite antenna, receiver, router,
ethernet switch and any required cabling, the makeup of which may change over
time provided that the level of service agreed to in the SLA remains consistent.

2.  SERVICE DEFINITION AND OVERVIEW

    Cidera agrees to provide to AKAMAI (i) receive-only satellite downlinks
capable of receiving one-way, multicasted Internet protocol Media, at one or
many Locations, as designated from time to time by AKAMAI, including Locations
in service areas outside of the continental United States (see Attachment A -
Service Coverage Areas) and (ii) satellite transport to such Location(s), in
accordance with the terms of this Agreement.  Cidera agrees to provide such
service ("Cidera Service") at the 38 Locations described in Section 2.1 at
[ * * * ], and AKAMAI agrees to deploy appropriate AKAMAI equipment at Cidera's
current and planned uplink facilities, including, without limitation, its
facility in Laurel, MD, to the extent that such deployment is mutually
determined by the Parties to be necessary in order for AKAMAI to use the Cidera
Service.  Implementation of the Cidera Service shall consist of four steps:  (i)
a proof of concept (see Attachment D:  "Proof of Concept"); (ii) a mutually
agreed upon service acceptance checklist ("Service Acceptance Checklist"); (iii)
a mutually agreed upon Service Level Agreement ("SLA"); and, (iv) implementation
of the Cidera Service.

*** Confidential Treatment Requested
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          (a)  Proof of Concept.  Both parties agree to commence testing of the
Cidera Service within [ * * * ] of the Effective Date by means of a mutually
agreed upon Proof of Concept, the schedule and requirements of which the
guidelines are listed in Attachment D.  Testing by means of the Proof of Concept
shall be completed within [ * * * ] after the Effective Date, or at such later
time as the Parties mutually agree in writing.

          (b)  Service Acceptance Checklist.  Within thirty (30) days of
completion of the Proof of Concept the Parties shall mutually agree upon
criteria for the acceptance of the Cidera Service at Locations.  If the Parties
do not mutually agree upon such criteria within the thirty-day period, the
Parties may mutually agree in writing to extend the time period of Proof of
Concept.

          (c)  Service Level Agreement.  Also within thirty (30) days of the
completion of the Proof of Concept both parties shall mutually agree to develop
the  appropriate language for the network  SLA applicable to Akamai.  This SLA
shall, at a minimum, include the following guidelines:
1) [ * * * ] availability for uplink/hub/satellite;
2) [ * * * ] availability minimum for receive sites;
3) [ * * * ] overall network availability;
4) [ * * * ] packet delivery over 24-hrs at all remote sites in a given
continental footprint;
5) Less than [ * * * ] packet loss at the uplink, assuming IP multicast
streaming, and no use of higher-level applications, such loss measured at uplink
and not averaged over downlinks, and assuming use including bursting of less
than [ * * * ] of Akamai's CIR in a given region;
6) Penalty - [ * * * ];
7) A minor system-wide outage is one in which a single continental region is
generally unavailable ([ * * * ]) for less than [ * * * ];
8) A major system-wide outage is one in which a single continental region is
generally unavailable ([ * * * ]) for more than [ * * * ];
9) For each minor system-wide outage, Akamai receives [ * * * ];
10) For each major system-wide outage, Akamai received [ * * * ], and if there
are more than [ * * * ] major system-wide outages separated by more than
[ * * * ], Akamai receives credit for [ * * * ];
11) Availability excludes [ * * * ], of routine maintenance, which maintenance
shall  be rarely used, and said maintenance to occur on Tuesday night/Wed
morning, unless 72 hours of notice is provided;
12) Availability also excludes [ * * * ], of emergency maintenance, however more
than [ * * * ] of cumulative outage shall cause a penalty of [ * * * ].

    2.1  Initial Deployment.  Following completion of the Proof of Concept, both
parties shall mutually agree upon the Service Acceptance Checklist and a Service
Level Agreement as set forth above in this Section 2.  At such time, Cidera will
install the Cidera Service at a minimum of thirty-eight (38) Locations. (see
Attachment A - Service Coverage Areas).  Cidera shall perform such
installations, provided that there are no unreasonable constraints imposed on
Cidera by building management or local zoning laws. AKAMAI agrees to provide
Cidera with

*** Confidential Treatment Requested
<PAGE>

the current contacts for the Locations to facilitate the installation of Cidera
equipment.  See Attachment E for Location installation and configuration
specifications and the division of cost between Parties.  Cidera and AKAMAI will
each provide engineering resources to facilitate any software interfaces between
the two networks.

    2.2  Other Deployments.  As Cidera continues to deploy its GBON, AKAMAI may
elect to locate its equipment at existing Cidera Locations or AKAMAI may request
that Cidera place its equipment at new facilities where AKAMAI locates its
equipment.  Both Parties agree to use commercially reasonable efforts to
facilitate the location of each other's equipment at these locations at no cost;
provided, however the election to place a Party's equipment at a particular
location will be at the option of such Party in its sole discretion.  If costs
are applicable, then each Party will bear the costs as referenced in Attachment
E. [ * * * ].

    2.3  [ * * * ].

    2.4  Deployment of New Applications and Services. Throughout the Term,
Cidera will make available to AKAMAI all new applications and services related
to those described in Section 2 herein concurrently with or sooner than the
availability schedule for such new services or products generally provided to
other Cidera customers.

    2.5  On-Site Monitoring. Cidera agrees to use commercially reasonable
efforts to make available to AKAMAI certain software which will facilitate the
on-site monitoring of the delivery of AKAMAI content via the GBON. The terms of
any such license shall be mutually agreed upon by the parties and set forth
under separate agreement.

    2.6  Dedicated Locations.  Cidera will provide Akamai, if requested, with a
String of Equipment dedicated for Akamai Services at locations where [ * * * ]
(collectively, "Dedicated Locations").  A site shall not be deemed a Dedicated
Location, if: [ * * * ].  At sites that qualify as Dedicated Locations, Cidera
will provide Akamai with a standard String of Equipment dedicated to Akamai
Services. Notwithstanding the foregoing, Cidera reserves the right to offer
Cidera Commercial Services over the Akamai dedicated equipment string at the
Dedicated Locations. As used herein, "Cidera Commercial Services" means  (i)
services offered by Cidera to Non-Enterprise Networks as of the Effective Date
or during the Term, whether for a charge or free-of-charge, provided that such
services are not streaming media or content delivery services, or execution of
applications for third party customers, or (ii) UseNet News,  Cache
Turbocharging, and Big File Mover (as they exist on the Effective Date or during
the Term provided that the service offerings do not substantially change from
the Effective Date).  Beginning on the date which is two and one-half years
after the Effective Date, Akamai shall no longer have the option to designate
locations as Dedicated Locations.

    2.7  VAST at Dedicated Locations. Cidera shall have the option to install
VAST (Virtual Application Server Technology) at the Dedicated Locations at its
own initial and recurring cost, but in the event of such an installation, shall
only use the VAST in connection with the provision of either Cidera Commercial
Services or Akamai Services (subject to the exception set forth in Section
2.11).

*** Confidential Treatment Requested
<PAGE>

    2.8  Dedicated Location Fees. At Dedicated Locations, AKAMAI agrees to pay a
dedicated site fee of [ * * * ] for the dedicated equipment referenced in
Section 2.6 in addition to the standard 7X24 streaming charges set forth in
Attachment B.
------------

    2.9  Confidentiality of Dedicated Location and Related Information.  Cidera
agrees to develop and implement reasonable and adequate measures to protect the
confidentiality of the list of those sites which are deemed Dedicated Locations
with the intention to limit the dissemination and/or disclosure of such
information to Akamai personnel and / or the Cidera Akamai Implementation team
only.  It is Cidera's intention to locate the core of the Cidera team dedicated
to Akamai in Boston during deployment of the Services.  Consistent with the
foregoing, Cidera will develop and maintain a list of Dedicated Locations (the
"Akamai Dedicated Location List"), and will segregate this information from
other Cidera customers or potential customers.  The Akamai Dedicated Location
List will also be segregated from general external and internal Cidera
distribution. Cidera shall not release the Akamai Dedicated Location List or
otherwise identify a Dedicated Location  to existing or prospective Cidera
customers. In addition, Cidera shall not disclose any information relating to
Dedicated Locations to any other Dedicated Location (including, without
limitation, to its employees, agents or representatives). In addition, Cidera
shall not disclose any information relating to any existing or prospective
Cidera customer (including, without limitation information regarding such
existing or prospective customer's services) to any Dedication Location
(including, without limitation, to its employees, agents or representatives).
Within 20 days of the Effective Date (or by such later date as the Parties
mutually agree in writing), Akamai and Cidera will mutually develop the specific
procedures and details for effectively segregating information relating to
Dedicated Locations, the process for managing such information, and the
guidelines for determining whether a breach of Cidera's obligations has
occurred; provided that, failure by the Parties to agree upon such guidelines
during the 20 day period shall not relieve Cidera of its obligations under this
Section 2.9.

    2.10  Additional Equipment at Dedicated Locations. Cidera shall have the
right to install a second String of Equipment if requested by a customer
pursuant to a bona fide purchase order for network services on a Cidera Site
Services Activation Form (P.O.).

    2.11  Movement of a Dedicated Location to a Public Site. Cidera will move
each Dedicated Location to the Cidera Public Site Catalog at any point in time
that [ * * * ]. Once a Location is in the Cidera Public Site Catalog, the VAST
at such Location will no longer be subject to the usage restrictions set forth
in Section 2.7.

    2.12  Unauthorized Disclosure of Dedicated Locations Information. In the
event that Cidera breaches its obligations set forth in Section 2.9 resulting in
information regarding Dedicated Locations being disclosed (each such occurrence,
a "Violation"), then the following procedures will be implemented. Should there
be more than [ * * * ] Violations in a [ * * * ] period, then the parties will
use good faith efforts to agree on procedures to prevent additional Violations,
and Cidera will have [ * * * ] to implement such procedures. If Cidera fails to
implement such procedures within the [ * * * ] period, and Akamai does not
terminate this Agreement pursuant to Section 4.2(a), then Cidera shall provide
Akamai with [ * * * ].

*** Confidential Treatment Requested
<PAGE>

     In the event that there are more than [ * * * ] Violations in any [ * * * ]
period, or if there is a breach in more than [ * * * ] of the Dedicated
Locations, whichever is greater at the time,  then the parties will agree on
procedures to prevent additional Violations, and Cidera will have [ * * * ] to
implement such procedures.  If Cidera fails to implement such procedures within
the [ * * * ] period, or if within [ * * * ] after such [ * * * ] period either
(i) the procedures are not working for their intended purpose in a manner
reasonably satisfactory to Akamai, or (ii) the breach has been repeated, then
from that point forward, all Locations that are Dedicated Locations at such time
and any additional Akamai sites that qualify to become Dedicated Locations
pursuant to this Agreement shall remain Dedicated Locations until an acceptable
procedure to prevent future Violations is agreed upon and the network remains
without a violation for a period of [ * * * ], at which time the Parties will
meet and  remove the restriction on Dedicated Locations.

    2.13  Services Pricing.  AKAMAI agrees to pay Cidera for the Services in
accordance with the 7x24 Services Pricing set forth in Attachment B. Service to
a Cidera Public Location shall require a minimum service commitment of 12
months. Service to Dedicated Location shall require a minimum service commitment
of 24 months.

    2.14  Network Commitment. Akamai agrees to initiate delivery of Akamai
Services utilizing the GBON to a minimum 350 Locations by 12/31/00; and 750
locations by 6/30/01; provided that Cidera has made at least [ * * * ] Locations
available in the Cidera Public Site Catolog by 6/30/01. Akamai agrees to
initiate delivery of Akamai Services utilizing the GBON to 1,500 total Locations
by 12/31/01, provided that Cidera has made [ * * * ] Locations available in the
Cidera Public Site Catalog by 12/31/01. For the purposes of the preceding
sentence, a site will be deemed "made available" in the Cidera Public Site
Catalog if a purchase order for services has been provided to and accepted by
Cidera with installation scheduled to occur within 30 days of the purchase order
date. Should these commitment levels not be met at the dates listed above,
Akamai agrees to pay the minimum charge for Services based upon the target
number of Locations at the then current bandwidth consumption levels as set
forth in Attachment B from that point forward until those minimum installations
are achieved. For example, if at 12/31/00 usage is at 5 Mbps and there are fewer
than 350 Locations, then beginning 1/01/01 the pricing will be for 350 Locations
at 5 Mbps.

    2.15  Ramp-Up Period. [ * * * ].

    2.16  Event Based Services. AKAMAI may also purchase event-based services
from Cidera. A matrix of pricing is contained in Attachment C.

    2.17  Pricing Confidentiality.  The prices contained in this Agreement are
considered confidential and disclosure of this information shall be treated
consistently with the Non-Disclosure Agreement executed between the Parties.

    2.18  [ * * * ].

*** Confidential Treatment Requested
<PAGE>

    2.19  The pricing shown in Attachment B is contingent upon delivery by
AKAMAI of encoded streams to the Cidera uplink facility in Laurel, MD. As a
component of the Initial Deployment (Section 2.1) Cidera and AKAMAI will
determine and mutually agree upon the method and delivery of the AKAMAI Media to
current and future Cidera uplink facilities or Content Receipt Points. Cidera
agrees that Akamai shall be permitted to deliver Akamai Media to the AboveNet
facility in Virginia for transfer to the Cidera uplink at such facility "Content
Receipt Points" means points withn the Cidera Network that Cidera places in
publicly general available Co-location Facilities for its customers to access
the Cidera uplinks. Akamai shall have the same access to Content Receipt Points
as Cidera provides to its other similarly situated customers.

    2.20  Other Charges. AKAMAI may elect to receive the Cidera Service at a new
Location at its option. If AKAMAI requests a Location where Cidera does not
desire to locate its service and equipment [ * * * ].

3.  Channel Conflict Arrangement

    During the Term, Cidera agrees to not directly provide audio/video
streaming content or streaming media application software required for hosting
to End Users.  The foregoing restriction shall not apply to Cidera's provision
of Cidera services for transport, server hardware and related infrastructure.
For the purposes of the first sentence of this Section, the term "END USER"
means a subscriber to the Internet who receives audio/video content directly
from the Internet.  In the event that Cidera breaches the foregoing covenant,
AKAMAI's sole remedy shall be as set forth in Section 4.2 and 6.

4.  Term And Termination

    4.1  Term. The term of this Agreement will commence on the Effective Date
and continue for a term of 48 months (the "Initial Term"). In the second, third
and fourth years of this Agreement, the prices set forth in Attachments B and C
shall [ * * * ].

    4.2  Termination. A Party may terminate this Agreement, upon written notice
to the other Party: (a) for any material breach of this Agreement, which the
defaulting Party fails to cure within thirty (30) days following written notice
of such breach; or (b) upon the other Party's insolvency or liquidation. AKAMAI
may terminate this Agreement for convenience upon fifteen (15) days' prior
written notice to Cidera and pre-payment in full of a Termination Charge (as
defined below). For the purposes of the preceding sentence, the term,
"Termination Charge" shall mean [ * * * ]. The Parties agree that in the event
of early termination by AKAMAI for convenience as provided for above, the
Termination Charge is a fair and reasonable fee for services rendered and
Cidera's cost incurred and is not to be construed as a penalty.

    4.3  Effect of Termination.  Sections 5, 6, 7, 8, and 9 shall survive any
termination or expiration of this Agreement for any reason.

*** Confidential Treatment Requested
<PAGE>

5.  Intellectual Property Rights

    5.1  Retention of Ownership. Except as expressly provided in this Agreement,
each Party retains ownership of its intellectual property and does not license
any of its intellectual property to the other Party.

    5.2  No Implied License.  Except as expressly set forth in this Agreement,
neither Party grants to the other Party, either directly or by implication, by
estoppel or otherwise, any rights or licenses.

    5.3  No Other Rights.  Notwithstanding anything in this Agreement to the
contrary, the rights granted in this Agreement do not include any right,
license, release or immunity, directly or indirectly, express, implied or by
estoppel, in or to any of either Party's process technology or other technology
under any patent, copyrights, trade secret, mask work or other intellectual
property right.  Except as expressly set forth in this Agreement, neither Party
shall modify, adapt, translate, prepare derivative works from, decompile,
reverse engineer, disassemble or otherwise attempt to derive source code from
software provided by one Party to the other or from any internal data files
generated by such software.

6.  Indemnification And Liability

     EACH PARTY (THE "INDEMNIFYING PARTY") HEREBY AGREES TO INDEMNIFY AND HOLD
HARMLESS THE OTHER PARTY (THE "INDEMNIFIED PARTY") AND THE INDEMNIFIED PARTY'S
PARENT, SUBSIDIARIES AND AFFILIATES, AND THE DIRECTORS, OFFICERS, EMPLOYEES,
AGENTS AND REPRESENTATIVES OF SUCH PARTY AND THOSE OF ITS AFFILIATES, FROM AND
AGAINST THE FULL AMOUNT OF ANY AND ALL THIRD PARTY CLAIMS, ACTIONS,
COUNTERCLAIMS, LAWSUITS, DAMAGES, LOSSES, JUDGMENTS AND EXPENSES, INCLUDING,
WITHOUT LIMITATION, REASONABLE ATTORNEYS' FEES AND EXPENSES, REASONABLE OUT-OF-
POCKET EXPENSES AND COURT COSTS, THAT SUCH PARTY AND/OR ANY OF THE FOREGOING
ENTITIES OR INDIVIDUALS MAY INCUR AS A RESULT OF OR OTHERWISE RELATED TO (i) ANY
MATERIAL BREACH BY INDEMNIFYING PARTY OF ANY OBLIGATION HEREUNDER, OR ACT OR
OMISSION OF PERFORMANCE BY THE INDEMNIFYING PARTY CONSTITUTING A MATERIAL BREACH
HEREUNDER, OR (ii) ANY CLAIM OF INFRINGEMENT OR MISAPPROPRIATION OF ANY
INTELLECTUAL PROPERTY OR PROPRIETARY RIGHTS OF ANY THIRD PARTY, INCLUDING
WITHOUT LIMITATION, COPYRIGHTS OR TRADEMARKS BASED UPON THE PROVISION OF
SERVICES AND/OR CONTENT BY THE INDEMNIFYING PARTY PROVIDED, HOWEVER, THAT THE
INDEMNIFIED PARTY MUST (i) GIVE TO THE INDEMNIFIED PARTY PROMPT WRITTEN NOTICE
OF ANY CLAIM, ACTION OR OTHER MATTER TO WHICH THIS INDEMNIFICATION APPLIES; (ii)
AFFORD TO THE INDEMNIFYING PARTY THE OPPORTUNITY TO PARTICIPATE IN AND CONTROL
(WITH LEGAL COUNSEL OF ITS CHOICE, PROVIDED SUCH LEGAL COUNSEL IS REASONABLY
ACCEPTABLE TO THE INDEMNIFIED PARTY), THE DISPOSITION (WHETHER BY COMPROMISE,
SETTLEMENT OR OTHER RESOLUTION) OF SUCH CLAIM, ACTION, SUIT OR OTHER MATTER,
PROVIDED THAT THE INDEMNIFYING PARTY ACKNOWLEDGES ITS
<PAGE>

INDEMNIFICATION OBLIGATIONS; AND (iii) FULLY COOPERATE WITH THE REASONABLE
REQUESTS OF THE INDEMNIFYING PARTY TO THAT END.

     EXCEPT FOR EACH PARTY'S INDEMNIFICATION OBLIGATIONS FOR INFRINGEMENT OF
THIRD PARTY INTELLECTUAL PROPERTY RIGHTS AND BREACH OF SECTIONS 5 AND 8, IN NO
EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR INCIDENTAL, SPECIAL,
CONSEQUENTIAL, OR ANY OTHER INDIRECT LOSS OR DAMAGE, INCLUDING, WITHOUT
LIMITATION, LOST PROFITS, ARISING OUT OF THIS AGREEMENT OR ANY OBLIGATION
RESULTING THEREFROM, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT
(INCLUDING, WITHOUT LIMITATION, NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

     EXCEPT FOR EACH PARTY'S INDEMNIFICATION OBLIGATIONS FOR INFRINGEMENT OF
THIRD PARTY INTELLECTUAL PROPERTY RIGHTS AND BREACHES OF SECTIONS 5 AND 8, IN NO
EVENT SHALL THE AGGREGATE LIABILITY OF EITHER PARTY UNDER THIS AGREEMENT EXCEED
[ * * * ].

7.  Warranty Disclaimer

    EXCEPT AS EXPRESSLY PROVIDED HEREIN, NEITHER PARTY MAKES ANY
REPRESENTATIONS OR WARRANTIES, EITHER EXPRESS OR IMPLIED, AND BOTH PARTIES
SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
A PARTICULAR PURPOSE WITH RESPECT TO THEIR RESPECTIVE SERVICES.

8.  Confidential Information

     Except as and to the extent required by law, neither Party will disclose or
use (other than for purposes of the definitive Agreement), and will direct its
representatives not to disclose or use (other than for purposes of the
definitive Agreement), to the detriment of the other Party, any Confidential
Information (as defined below) with respect to the business or the other Party
furnished, or to be furnished, by such Party, or their respective representative
to the other Party or its representatives at any time or in any manner other
than disclosures to employees on a need-to-know basis. For purposes of this
Paragraph, "Confidential Information" means any information about the ongoing
negotiations related to this Agreement or the business or activities of either
Party stamped "confidential" or identified in writing as such by a Party to the
other Party promptly following its disclosure.  Disclosure of Confidential
Information to employees and agents of the parties hereto will be limited to a
need-to-know basis under circumstances where the employee or agent is advised of
the confidential nature of the disclosure and is bound to keep said information
confidential.  Notwithstanding the foregoing, the following information shall
not be deemed Confidential Information: (i) information that is already known to
the recipient Party or its representatives who are not bound by a duty of
confidentiality prior to disclosure, in each case without a breach of a legal
obligation; (ii) information that becomes publicly available through no fault of
the recipient Party or its representatives; (iii) information

*** Confidential Treatment Requested
<PAGE>

that is independently developed by a Party without the use of or reference to
the Confidential Information of the other Party; or (iv) information that
properly comes into the recipient's possession from a third Party who is not
under an obligation to maintain the confidentiality of such information.
Notwithstanding anything contained herein, it shall not be a breach of this
provision for either Party to disclose Confidential Information to comply with
any applicable subpoena or other legal or regulatory requirement, so long as the
recipient notifies the disclosing Party prior to making such disclosure and
takes reasonable and lawful actions to avoid and/or minimize the extent of such
disclosure.  Akamai hereby consents to the filing of this Agreement as an
exhibit to the Registration Statement of Cidera on Form S-1 in connection with
its initial public offering, if Cidera, in its reasonable discretion, determines
that SEC regulations require such filing.  Akamai understands that as of the
Effective Date, Cidera has made such determination to file this Agreement.  In
addition, Cidera agrees that it shall use best efforts, consistent with
commercial reasonableness, to obtain "confidential treatment" of any
Confidential Information of AKAMAI which it is required to include in its SEC
filings, including its Registration Statement on Form S-1 which is presently
pending.  The parties agree to cooperate in connection with any such
confidential treatment request (the "Request").  To this end, Cidera agrees to
provide Akamai with drafts of the Request (including proposed redactions to the
publicly filed version of this Agreement) and any amendments thereto, a
reasonable period of time prior to submission to the SEC, for input from Akamai.
Akamai recognizes that the Request is time-sensitive and, accordingly, agrees to
promptly provide its input with respect to the Request and any amendments
thereto.  Upon the written request of the disclosing Party, the recipient Party
will promptly return to the disclosing Party or destroy any Confidential
Information in its possession and certify in writing to the disclosing Party
that it has done so.

9.  Miscellaneous

    9.1  Independent Contractor. The relationship of AKAMAI and Cidera
established by this Agreement is that of independent contractors, and nothing
contained in this Agreement shall be construed to (i) give either Party the
power to direct and control the day-to-day activities of the other; (ii) deem
the Parties to be acting as joint venturers, co-owners or otherwise as
participants in a joint undertaking; or (iii) allow either Party to create or
assume any obligation on behalf of the other Party for any purpose whatsoever.

    9.2  Assignment. Neither Party may, without the prior written consent of the
other Party, which consent will not be unreasonably withheld, assign this
Agreement, in whole or in part, and any attempt to do so shall be a material
default of this Agreement and shall be void. Notwithstanding the foregoing, this
Agreement may be assigned by AKAMAI as allowed by operation of law or to any
affiliate so long as Akamai remains primarily liable for such affiliate's
performance hereunder.

    9.3  Third Party Beneficiaries. This Agreement is solely for the benefit of
the Parties and their successors and permitted assigns, and does not confer any
rights or remedies on any other person or entity.

    9.4  Dispute Resolution.
<PAGE>

         (a)  Equitable Relief. The Parties agree that any breach of any of the
Parties' obligations regarding intellectual property and/or confidentiality
would result in irreparable injury for which there is no adequate remedy at law.
Therefore, in the event of any breach or threatened breach of a Party's
obligations regarding intellectual property or confidentiality, the aggrieved
Party will be entitled to seek immediate equitable relief in addition to its
other available legal remedies in a court of competent jurisdiction.

         (b)  Escalation. In the event of disputes between the Parties arising
from or concerning in any manner the subject matter of this Agreement, other
than disputes set forth in subsection (a) above, the Parties will first attempt
to resolve the dispute(s) through good faith negotiation. Upon written notice by
a Party to the other that a dispute exists, the exact nature of the dispute
shall be identified, and good faith discussions and negotiations shall be
conducted within fifteen (15) days directly between senior management at AKAMAI
and Cidera (currently, Avi Freedman for AKAMAI and Robert Dunham for Cidera, or
their respective designees), with input from their respective technical and
business teams as they desire, to fully address the issues raised. Such meetings
shall be limited to one-half day unless otherwise agreed, scheduled at a
mutually convenient time, place and method. Each representative shall be
authorized to fully negotiate for, and bind, his or her respective company. If
such negotiations fail to adequately resolve the issues raised, the Parties
shall be free to resort to any applicable remedy at law, including such
mediation or other alternative dispute resolution mechanisms as they may agree
to. All discussions pursuant to this Section are agreed to be in the course of
pursuing settlement and shall be inadmissible in any subsequent litigation.

         (c)  Remedies. The remedies set forth in this Agreement are in addition
to those available to the Parties at law or in equity (subject to the
limitations of liability and other restrictions set forth herein), except as
specified regarding pre-litigation dispute resolution. All rights and remedies,
legal or equitable, whether conferred hereunder, or by any other instrument or
law will be cumulative and may be exercised singularly or concurrently.

         (d)  Governing Law. Any claim arising under or relating to this
Agreement shall be governed by the internal substantive laws of the State of
Delaware, without regard to principles of conflict of laws. Each Party hereby
agrees to non-exclusive jurisdiction in the courts of the State of Delaware for
all disputes and litigation arising under or relating to this Agreement.
Furthermore, the Parties agree that the terms of The U.N. Convention on
Contracts for the International Sale of Goods do not apply to this Agreement.

    9.5  Severability. In the event any provision of this Agreement is held by a
court of competent jurisdiction to be unenforceable, that provision will be
enforced to the maximum extent permissible under applicable law, and the other
provisions of this Agreement will remain in full force and effect.

    9.6  Force Majeure. If either Party is prevented from performing any of its
obligations under this Agreement (excluding payment obligations) due to any
cause beyond the Party's reasonable control, including, without limitation, an
act of God, fire, flood, explosion, war, strike, embargo, government regulation,
civil or military authority, (a "force majeure event") the time for that Party's
performance will be extended for the period of the delay or inability to perform
due to such occurrence; provided, however, that if a Party suffering a force
<PAGE>

majeure event is unable to cure that event within thirty (30) days, the other
Party may terminate this Agreement immediately.

    9.7   Counterparts. This Agreement may be executed in two (2) counterparts,
each of which, when so executed and delivered, shall be deemed an original, and
all of which shall constitute one and the same Agreement.

    9.8   Binding Effect. This Agreement shall be binding upon and shall inure
to the benefit of the respective Parties hereto, their respective successors-in-
interest, legal representatives, heirs and assigns.

    9.9   Compliance with Laws.  Each Party agrees to comply with all applicable
laws, regulations, and ordinances relating to their performance hereunder.

    9.10  Notices. All notices, consents, waivers, and other communications
under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt), (b)
sent by telecopier (with written confirmation of receipt), provided that a copy
is mailed by registered mail, return receipt requested, or (c) when received by
the addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate addresses and telecopier
number set forth below (or to such other addresses and telecopier numbers as a
Party may designate by notice to the other Parties):

     If to AKAMAI, to:

          Akamai Technologies, Inc.
          500 Technology Square,
          Cambridge, MA  02139
          Attn: Avi Freedman
          Phone: 617-250-3000
          Fax: 617-250-4770

     with a copy to:

          Robert Ball, Vice President and General Counsel

     If to Cidera, to:

          Cidera, Inc.
          8037 Laurel Lakes Court
          Laurel, MD  20707
          Attn: Dutch Dunham
          Phone: 301-598-0500, x2201
          Fax: 301-598-0837
<PAGE>

     with a copy to:

          Edward D. Postal, Chief Financial Officer

     9.11  Modifications. This Agreement may not be modified, amended, changed
or discharged, in whole or in part, except as specifically provided herein or by
an agreement in writing signed by a duly authorized representative of each of
the parties.

10.  Event Publicity

     Within ten (10) business days of the execution of this Agreement, AKAMAI
and Cidera shall jointly issue a press release at a mutually agreed upon time,
the specific content of which will be agreed to by both Parties.

     AKAMAI agrees to allow placement of a mutually agreed upon logo and
overview of this Agreement in Cidera's registration statement on Form S-1,
excepting those attachments marked "AKAMAI Confidential" contained herein.

     Cidera also agrees to promote throughout the Term, in its applicable press
releases and public announcements, AKAMAI as and, with respect to total
frequency, visibility, and content of Cidera's applicable publicity and
promotion activities, at least as prominently other similarly situated customers
of Cidera.

     Notwithstanding anything herein the contrary, all press releases,
announcements and other forms of publicity made by either Party concerning this
Agreement must be mutually approved by the Parties in writing which approval
shall not be unreasonably withheld. Neither Party shall disclose to third
parties, other than its agents and representatives on a need-to-know basis, the
terms of this Agreement or any Schedule hereto without the prior written consent
of the other party, except either party shall be entitled to disclose (i) such
terms to the extent required by law or as permitted pursuant to Section 8; and
(ii) the existence of this Agreement. Except as provided herein, no license or
conveyance of any rights to a Party's logos, trade marks, service marks,
customer list, or customer logos, trade marks or service marks is granted or
implied by either party under this Agreement

11.  Entire Agreement

     The Agreement, the NDA and the Attachments hereto constitute the entire and
exclusive understanding between the parties with respect to the subject matter
of this Agreement and supersedes all previous written or oral communications or
understandings between the Parties relating to the subject matter the Agreement.
The Agreement may be amended only in a writing signed by both Parties.

Executed and Agreed by:
<PAGE>

CIDERA, INC.                                    AKAMAI TECHNOLOGIES, INC.

By: /s/ Thom F. Degnan                          By: /s/ Avi Freedman
   ------------------------------                   --------------------------
Thom F. Degnan                                  Avi Freedman
Senior Vice President, Business                 Vice President & Chief Network
   Development                                     Architect
Cidera Inc.                                     Akamai Technologies, Inc.
8037 Laurel Lakes Drive                         500 Technology Square
Laurel, MD  20707                               Cambridge, MA  02139
<PAGE>

                                 ATTACHMENT A:

                         Cidera Service Coverage Areas

1.0  North America:

Cidera provides the ability to deliver content via its GBON throughout the
continental United States, and Hawaii by placing 1.2 Meter Satellite dishes and
receiver equipment at locations that will facilitate the delivery of customer
content. Cidera has an agreement with TeleSat Canada for distribution within the
provinces of Canada.  The placement of the satellite dish will be by Cidera
following a site survey to assure line of sight to the satellite being utilized
by Cidera.

2.0  Europe:

Cidera provides the ability to delivery content via its GBON in Europe to the
Pan-European and Nordic Countries by placing 0.9 Meter Satellite dishes and
receiver equipment at locations which will facilitate the delivery of customer
content. The placement of the satellite dish will be by Cidera following a site
survey to assure line of sight to the satellite being used by Cidera.

3.0  Asia and Latin America:

Cidera is currently finalizing negotiations to provide similar services to these
areas and anticipates availability during the Year 2000.
<PAGE>

                                 ATTACHMENT B:

                   AKAMAI 7X24 Services Price Matrix[ * * * ]

*** Confidential Treatment Requested
<PAGE>

                                  ATTACHMENT C

                           AKAMAI Event Based Pricing

                                   [ * * * ]
<PAGE>

                                 ATTACHMENT D:

                                PROOF OF CONCEPT

                              AKAMAI CONFIDENTIAL

                                   [ * * * ]

*** Confidential Treatment Requested
<PAGE>

                                  ATTACHMENT E

                    SITE CONFIGURATION AND DIVISION OF COST

A.  ISP LOCATIONS:

1.  [ * * * ] provides the antenna, cabling, receiver and an Ethernet switch.

2.  [ * * * ] connects the ethernet switch to the [ * * * ] service adapter for
    [ * * * ] services.

3.  [ * * * ] connects the ethernet switch to the ISP LAN with a 100Mb
    connection.

4.  [ * * * ] installs its equipment and any cabling between [ * * * ] equipment
    and the Cidera switch

5.  [ * * * ] may connect to the [ * * * ] connection to the ISP LAN, or may
    install a separate connection to the ISP LAN.

B.  CO-LO FACILITIES:

1.  [ * * * ] provides the antenna, cabling, receiver and the ethernet switch.

2.  [ * * * ] connects the ethernet switch to the [ * * * ] service adapter for
    [ * * * ] services.

3.  [ * * * ] connects the ethernet switch to the ISP LAN with a 100Mb
    connection.

4.  [ * * * ] installs its equipment and any cabling between [ * * * ] equipment
    and the Cidera switch.

5.  [ * * * ] is responsible for its rack space, connection to the Co-location
    facility's local area network, and any outbound charges on the ISP Network.

C.  Cross Connect Charges:

1.  At sites where Akamai is already located, [ * * * ] will install the cross
    connect and incur any and all charges related to such installation.

2.  At sites where Cidera is already installed, [ * * * ] will pay for the cross
    connect.

3.  At new sites where neither Cidera nor Akamai is previously installed,
    [ * * * ].

*** Confidential Treatment Requested
<PAGE>

D.  ISP Rack Space:

    1.  [ * * * ] is responsible for the cost of rack space.  Typically, an edge
        strategy requires only a small amount of equipment to provide services
        to the customers of the ISP. [ * * * ].

E.  ISP LANs

    To date, ISPs are not charging for traffic on their LANs.  They could,
    however, charge [ * * * ] at some point in time in the future.

*** Confidential Treatment Requested

                       **********************************<PAGE>

                               INTERWOVEN, INC.

                          1999 EQUITY INCENTIVE PLAN

                           As Adopted July 22, 1999
  As Amended April 13, 2000 and June 1, 2000 (effective as of June 22, 2000)

         1.   PURPOSE.  The purpose of this Plan is to provide incentives to
              -------
attract, retain and motivate eligible persons whose present and potential
contributions are important to the success of the Company, its Parent and
Subsidiaries, by offering them an opportunity to participate in the Company's
future performance through awards of Options, Restricted Stock and Stock
Bonuses.  Capitalized terms not defined in the text are defined in Section 23.

         2.   SHARES SUBJECT TO THE PLAN.
              --------------------------

              2.1  Number of Shares Available.  Subject to Sections 2.2 and 18,
                   --------------------------
the total number of Shares reserved and available for grant and issuance
pursuant to this Plan will be 9,800,000/1/ Shares plus Shares that are subject
to: (a) issuance upon exercise of an Option but cease to be subject to such
Option for any reason other than exercise of such Option; (b) an Award granted
hereunder but are forfeited or are repurchased by the Company at the original
issue price; and (c) an Award that otherwise terminates without Shares being
issued.  In addition, any authorized shares not issued or subject to outstanding
grants under the 1996 Stock Option Plan and the 1998 Stock Option Plan (the
"Prior Plans") on the Effective Date (as defined below) and any shares issued
under the Prior Plans that are forfeited or repurchased by the Company or that
are issuable upon exercise of options granted pursuant to the Prior Plans that
expire or become unexercisable for any reason without having been exercised in
full, will no longer be available for grant and issuance under the Prior Plans,
but will be available for grant and issuance under this Plan.  At all times the
Company shall reserve and keep available a sufficient number of Shares as shall
be required to satisfy the requirements of all outstanding Options granted under
this Plan and all other outstanding but unvested Awards granted under this Plan.

              2.2  Adjustment of Shares.  In the event that the number of
                   --------------------
outstanding shares is changed by a stock dividend, recapitalization, stock
split, reverse stock split, subdivision, combination, reclassification or
similar change in the capital structure of the Company without consideration,
then (a) the number of Shares reserved for issuance under this Plan, (b) the
Exercise Prices of and number of Shares subject to outstanding Options, and (c)
the number of Shares subject to other outstanding Awards will be proportionately
adjusted, subject to any required action by the Board or the stockholders of the
Company and compliance with applicable securities laws; provided, however, that
                                                        --------  -------
fractions of a Share will not be issued but will either be replaced by a cash
payment equal to the Fair Market Value of such fraction of a Share or will be
rounded up to the nearest whole Share, as determined by the Committee.

____________________
/1/  Adjusted to reflect (i) the authorization of 2,000,000 additional shares of
     Common Stock for issuance under the Plan approved by the Company's
     stockholders on June 1, 2000; and (ii) the 2-for-1 split of the Company's
     capital stock effected in June 2000.
<PAGE>

         3.   ELIGIBILITY.  ISOs (as defined in Section 5 below) may be granted
              -----------
only to employees (including officers and directors who are also employees) of
the Company or of a Parent or Subsidiary of the Company.  All other Awards may
be granted to employees, officers, directors, consultants, independent
contractors and advisors of the Company or any Parent or Subsidiary of the
Company; provided such consultants, contractors and advisors render bona fide
         --------
services not in connection with the offer and sale of securities in a capital-
raising transaction.  No person will be eligible to receive more than 1,000,000
Shares in any calendar year under this Plan pursuant to the grant of Awards
hereunder, other than new employees of the Company or of a Parent or Subsidiary
of the Company (including new employees who are also officers and directors of
the Company or any Parent or Subsidiary of the Company), who are eligible to
receive up to a maximum of 1,500,000 Shares in the calendar year in which they
commence their employment.  A person may be granted more than one Award under
this Plan.

         4.   ADMINISTRATION.
              --------------

              4.1  Committee Authority.  This Plan will be administered by the
                   -------------------
Committee or by the Board acting as the Committee.  Except for automatic grants
to Outside Directors pursuant to Section 9 hereof, and subject to the general
purposes, terms and conditions of this Plan, and to the direction of the Board,
the Committee will have full power to implement and carry out this Plan.  Except
for automatic grants to Outside Directors pursuant to Section 9 hereof, the
Committee will have the authority to:

         (a)  construe and interpret this Plan, any Award Agreement and any
              other agreement or document executed pursuant to this Plan;

         (b)  prescribe, amend and rescind rules and regulations relating to
              this Plan or any Award;

         (c)  select persons to receive Awards;

         (d)  determine the form and terms of Awards;

         (e)  determine the number of Shares or other consideration subject to
              Awards;

         (f)  determine whether Awards will be granted singly, in combination
              with, in tandem with, in replacement of, or as alternatives to,
              other Awards under this Plan or any other incentive or
              compensation plan of the Company or any Parent or Subsidiary of
              the Company;

         (g)  grant waivers of Plan or Award conditions;

         (h)  determine the vesting, exercisability and payment of Awards;

         (i)  correct any defect, supply any omission or reconcile any
              inconsistency in this Plan, any Award or any Award Agreement;

         (j)  determine whether an Award has been earned; and
<PAGE>

         (k)  make all other determinations necessary or advisable for the
              administration of this Plan.

              4.2  Committee Discretion.  Except for automatic grants to Outside
                   --------------------
Directors pursuant to Section 9 hereof, any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or Award, at any later time, and such determination will be final and binding on
the Company and on all persons having an interest in any Award under this Plan.
The Committee may delegate to one or more officers of the Company the authority
to grant an Award under this Plan to Participants who are not Insiders of the
Company.

         5.   OPTIONS.  The Committee may grant Options to eligible persons and
              -------
will determine whether such Options will be Incentive Stock Options within the
meaning of the Code ("ISO") or Nonqualified Stock Options ("NQSOs"), the number
of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of
the Option, subject to the following:

              5.1  Form of Option Grant.  Each Option granted under this Plan
                   --------------------
will be evidenced by an Award Agreement which will expressly identify the Option
as an ISO or an NQSO ("Stock Option Agreement"), and, except as otherwise
required by the terms of Section 9 hereof, will be in such form and contain such
provisions (which need not be the same for each Participant) as the Committee
may from time to time approve, and which will comply with and be subject to the
terms and conditions of this Plan.

              5.2  Date of Grant.  The date of grant of an Option will be the
                   -------------
date on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee.  The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

              5.3  Exercise Period.  Options may be exercisable within the times
                   ---------------
or upon the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be
                                 --------  -------
exercisable after the expiration of ten (10) years from the date the Option is
granted; and provided further that no ISO granted to a person who directly or by
             ----------------
attribution owns more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any Parent or Subsidiary of the
Company ("Ten Percent Stockholder") will be exercisable after the expiration of
five (5) years from the date the ISO is granted.  The Committee also may provide
for Options to become exercisable at one time or from time to time, periodically
or otherwise, in such number of Shares or percentage of Shares as the Committee
determines.

              5.4  Exercise Price.  The Exercise Price of an Option will be
                   --------------
determined by the Committee when the Option is granted and may be not less than
85% of the Fair Market Value of the Shares on the date of grant; provided that:
(i) the Exercise Price of an ISO will be not less than 100% of the Fair Market
Value of the Shares on the date of grant; and (ii) the Exercise Price of any ISO
granted to a Ten Percent Stockholder will not be less than 110% of the Fair
Market Value of the Shares on the date of grant.  Payment for the Shares
purchased may be made in accordance with Section 8 of this Plan.
<PAGE>

              5.5  Method of Exercise.  Options may be exercised only by
                   ------------------
delivery to the Company of a written stock option exercise agreement  (the
"Exercise Agreement") in a form approved by the Committee (which need not be the
same for each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price for the number of Shares being
purchased.

              5.6  Termination.  Notwithstanding the exercise periods set forth
                   -----------
in the Stock Option Agreement, exercise of an Option will always be subject to
the following:

         (a)  If the Participant is Terminated for any reason except death or
              Disability, then the Participant may exercise such Participant's
              Options only to the extent that such Options would have been
              exercisable upon the Termination Date no later than three (3)
              months after the Termination Date (or such shorter or longer time
              period not exceeding five (5) years as may be determined by the
              Committee, with any exercise beyond three (3) months after the
              Termination Date deemed to be an NQSO), but in any event, no later
              than the expiration date of the Options.

         (b)  If the Participant is Terminated because of Participant's death or
              Disability (or the Participant dies within three (3) months after
              a Termination other than for Cause or because of Participant's
              Disability), then Participant's Options may be exercised only to
              the extent that such Options would have been exercisable by
              Participant on the Termination Date and must be exercised by
              Participant (or Participant's legal representative or authorized
              assignee) no later than twelve (12) months after the Termination
              Date (or such shorter or longer time period not exceeding five (5)
              years as may be determined by the Committee, with any such
              exercise beyond (a) three (3) months after the Termination Date
              when the Termination is for any reason other than the
              Participant's death or Disability, or (b) twelve (12) months after
              the Termination Date when the Termination is for Participant's
              death or Disability, deemed to be an NQSO), but in any event no
              later than the expiration date of the Options.

         (c)  Notwithstanding the provisions in paragraph 5.6(a) above, if a
              Participant is terminated for Cause, neither the Participant, the
              Participant's estate nor such other person who may then hold the
              Option shall be entitled to exercise any Option with respect to
              any Shares whatsoever, after termination of service, whether or
              not after termination of service the Participant may receive
              payment from the Company or Subsidiary for vacation pay, for
              services rendered prior to termination, for services rendered for
              the day on which termination occurs, for salary in lieu of notice,
              or for any other benefits.  In making such determination, the
              Board shall give the Participant an opportunity to present to the
              Board evidence on his behalf.  For the purpose of this paragraph,
              termination of service shall be deemed to occur on the date when
              the Company dispatches notice or advice to the Participant that
              his service is terminated.
<PAGE>

              5.7  Limitations on Exercise.  The Committee may specify a
                   -----------------------
reasonable minimum number of Shares that may be purchased on any exercise of an
Option, provided that such minimum number will not prevent Participant from
exercising the Option for the full number of Shares for which it is then
exercisable.

              5.8  Limitations on ISO.  The aggregate Fair Market Value
                   ------------------
(determined as of the date of grant) of Shares with respect to which ISO are
exercisable for the first time by a Participant during any calendar year (under
this Plan or under any other incentive stock option plan of the Company, Parent
or Subsidiary of the Company) will not exceed $100,000.  If the Fair Market
Value of Shares on the date of grant with respect to which ISO are exercisable
for the first time by a Participant during any calendar year exceeds $100,000,
then the Options for the first $100,000 worth of Shares to become exercisable in
such calendar year will be ISO and the Options for the amount in excess of
$100,000 that become exercisable in that calendar year will be NQSOs.  In the
event that the Code or the regulations promulgated thereunder are amended after
the Effective Date of this Plan to provide for a different limit on the Fair
Market Value of Shares permitted to be subject to ISO, such different limit will
be automatically incorporated herein and will apply to any Options granted after
the effective date of such amendment.

              5.9  Modification, Extension or Renewal.  The Committee may
                   ----------------------------------
modify, extend or renew outstanding Options and authorize the grant of new
Options in substitution therefor, provided that any such action may not, without
the written consent of a Participant, impair any of such Participant's rights
under any Option previously granted.  Any outstanding ISO that is modified,
extended, renewed or otherwise altered will be treated in accordance with
Section 424(h) of the Code.  The Committee may reduce the Exercise Price of
outstanding Options without the consent of Participants affected by a written
notice to them; provided, however, that the Exercise Price may not be reduced
                --------  -------
below the minimum Exercise Price that would be permitted under Section 5.4 of
this Plan for Options granted on the date the action is taken to reduce the
Exercise Price.

              5.10 No Disqualification.  Notwithstanding any other provision in
                   -------------------
this Plan, no term of this Plan relating to ISO will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

         6.   RESTRICTED STOCK.  A Restricted Stock Award is an offer by the
              ----------------
Company to sell to an eligible person Shares that are subject to restrictions.
The Committee will determine to whom an offer will be made, the number of Shares
the person may purchase, the price to be paid (the "Purchase Price"), the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

              6.1  Form of Restricted Stock Award.  All purchases under a
                   ------------------------------
Restricted Stock Award made pursuant to this Plan will be evidenced by an Award
Agreement ("Restricted Stock Purchase Agreement") that will be in such form
(which need not be the same for each Participant) as the Committee will from
time to time approve, and will comply with and be subject to the terms and
conditions of this Plan.  The offer of Restricted Stock will be accepted by the
Participant's execution and delivery of the Restricted Stock Purchase Agreement
and full payment for the Shares to the Company within thirty (30) days from the
date the Restricted Stock
<PAGE>

Purchase Agreement is delivered to the person. If such person does not execute
and deliver the Restricted Stock Purchase Agreement along with full payment for
the Shares to the Company within thirty (30) days, then the offer will
terminate, unless otherwise determined by the Committee.

              6.2  Purchase Price.  The Purchase Price of Shares sold pursuant
                   --------------
to a Restricted Stock Award will be determined by the Committee on the date the
Restricted Stock Award is granted, except in the case of a sale to a Ten Percent
Stockholder, in which case the Purchase Price will be 100% of the Fair Market
Value.  Payment of the Purchase Price may be made in accordance with Section 8
of this Plan.

              6.3  Terms of Restricted Stock Awards.  Restricted Stock Awards
                   --------------------------------
shall be subject to such restrictions as the Committee may impose.  These
restrictions may be based upon completion of a specified number of years of
service with the Company or upon completion of the performance goals as set out
in advance in the Participant's individual Restricted Stock Purchase Agreement.
Restricted Stock Awards may vary from Participant to Participant and between
groups of Participants.  Prior to the grant of a Restricted Stock Award, the
Committee shall:  (a) determine the nature, length and starting date of any
Performance Period for the Restricted Stock Award; (b) select from among the
Performance Factors to be used to measure performance goals, if any; and (c)
determine the number of Shares that may be awarded to the Participant.  Prior to
the payment of any Restricted Stock Award, the Committee shall determine the
extent to which such Restricted Stock Award has been earned.  Performance
Periods may overlap and Participants may participate simultaneously with respect
to Restricted Stock Awards that are subject to different Performance Periods and
having different performance goals and other criteria.

              6.4  Termination During Performance Period.  If a Participant is
                   -------------------------------------
Terminated during a Performance Period for any reason, then such Participant
will be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Restricted Stock Award only to the extent earned as of the date of
Termination in accordance with the Restricted Stock Purchase Agreement, unless
the Committee will determine otherwise.

         7.   STOCK BONUSES.
              -------------

              7.1  Awards of Stock Bonuses.  A Stock Bonus is an award of Shares
                   -----------------------
(which may consist of Restricted Stock) for services rendered to the Company or
any Parent or Subsidiary of the Company.  A Stock Bonus may be awarded for past
services already rendered to the Company, or any Parent or Subsidiary of the
Company pursuant to an Award Agreement (the "Stock Bonus Agreement") that will
be in such form (which need not be the same for each Participant) as the
Committee will from time to time approve, and will comply with and be subject to
the terms and conditions of this Plan.  A Stock Bonus may be awarded upon
satisfaction of such performance goals as are set out in advance in the
Participant's individual Award Agreement (the "Performance Stock Bonus
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan.  Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company, Parent or Subsidiary and/or
individual performance factors or upon such other criteria as the Committee may
determine.
<PAGE>

              7.2  Terms of Stock Bonuses.  The Committee will determine the
                   ----------------------
number of Shares to be awarded to the Participant.  If the Stock Bonus is being
earned upon the satisfaction of performance goals pursuant to a Performance
Stock Bonus Agreement, then the Committee will: (a)  determine the nature,
length and starting date of any Performance Period for each Stock Bonus; (b)
select from among the Performance Factors to be used to measure the performance,
if any; and (c) determine the number of Shares that may be awarded to the
Participant.  Prior to the payment of any Stock Bonus, the Committee shall
determine the extent to which such Stock Bonuses have been earned.  Performance
Periods may overlap and Participants may participate simultaneously with respect
to Stock Bonuses that are subject to different Performance Periods and different
performance goals and other criteria.  The number of Shares may be fixed or may
vary in accordance with such performance goals and criteria as may be determined
by the Committee.  The Committee may adjust the performance goals applicable to
the Stock Bonuses to take into account changes in law and accounting or tax
rules and to make such adjustments as the Committee deems necessary or
appropriate to reflect the impact of extraordinary or unusual items, events or
circumstances to avoid windfalls or hardships.

              7.3  Form of Payment.  The earned portion of a Stock Bonus may be
                   ---------------
paid currently or on a deferred basis with such interest or dividend equivalent,
if any, as the Committee may determine.  Payment may be made in the form of cash
or whole Shares or a combination thereof, either in a lump sum payment or in
installments, all as the Committee will determine.

         8.   PAYMENT FOR SHARE PURCHASES.
              ---------------------------

              8.1  Payment.  Payment for Shares purchased pursuant to this Plan
                   -------
may be made in cash (by check) or, where expressly approved for the Participant
by the Committee and where permitted by law:

         (a)  by cancellation of indebtedness of the Company to the Participant;

         (b)  by surrender of shares that either:  (1) have been owned by
              Participant for more than six (6) months and have been paid for
              within the meaning of SEC Rule 144 (and, if such shares were
              purchased from the Company by use of a promissory note, such note
              has been fully paid with respect to such shares); or (2) were
              obtained by Participant in the public market;

         (c)  by tender of a full recourse promissory note having such terms as
              may be approved by the Committee and bearing interest at a rate
              sufficient to avoid imputation of income under Sections 483 and
              1274 of the Code; provided, however, that Participants who are not
                                --------  -------
              employees or directors of the Company will not be entitled to
              purchase Shares with a promissory note unless the note is
              adequately secured by collateral other than the Shares;

         (d)  by waiver of compensation due or accrued to the Participant for
              services rendered;

         (e)  with respect only to purchases upon exercise of an Option, and
              provided that a public market for the Company's stock exists:
<PAGE>

              (1)  through a "same day sale" commitment from the Participant and
                   a broker-dealer that is a member of the National Association
                   of Securities Dealers (an "NASD Dealer") whereby the
                   Participant irrevocably elects to exercise the Option and to
                   sell a portion of the Shares so purchased to pay for the
                   Exercise Price, and whereby the NASD Dealer irrevocably
                   commits upon receipt of such Shares to forward the Exercise
                   Price directly to the Company; or

              (2)  through a "margin" commitment from the Participant and a NASD
                   Dealer whereby the Participant irrevocably elects to exercise
                   the Option and to pledge the Shares so purchased to the NASD
                   Dealer in a margin account as security for a loan from the
                   NASD Dealer in the amount of the Exercise Price, and whereby
                   the NASD Dealer irrevocably commits upon receipt of such
                   Shares to forward the Exercise Price directly to the Company;
                   or

         (f)  by any combination of the foregoing.

              8.2  Loan Guarantees.  The Committee may help the Participant pay
                   ---------------
for Shares purchased under this Plan by authorizing a guarantee by the Company
of a third-party loan to the Participant.

         9.   AUTOMATIC GRANTS TO OUTSIDE DIRECTORS.
              --------------------------------------

              9.1  Types of Options and Shares.  Options granted under this Plan
                   ----------------------------
and subject to this Section 9 shall be NQSOs.

              9.2  Eligibility.  Options subject to this Section 9 shall be
                   -----------
granted only to Outside Directors.

              9.3  Annual Grants.  Each Outside Director who was a member of the
                   -------------
Board before the Effective Date will automatically be granted an Option for
10,000 Shares on the Effective Date, unless such Outside Director received a
grant of Options before the Effective Date.  Each Outside Director who first
becomes a member of the Board on or after the Effective Date will automatically
be granted an Option for 20,000 Shares on the date such Outside Director first
becomes a member of the Board.  Immediately following each annual meeting of
stockholders, all Outside Directors will automatically be granted an Option for
10,000 Shares, provided the Outside Director is a member of the Board on such
date and has served continuously as a member of the Board for a period of at
least one year since the date when such Outside Director first became a member
of the Board (the "Annual Grant").

              9.4  Vesting.  Each Annual Grant shall be 100% vested and
                   -------
immediately exercisable as of the date of grant.

          9.5      Exercise Price.  The exercise price of an Annual Grant shall
                   --------------
be the Fair Market Value of the Shares, at the time that the Option is granted.
<PAGE>

         10.  WITHHOLDING TAXES.
              -----------------

              10.1 Withholding Generally.  Whenever Shares are to be issued in
                   ---------------------
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares.  Whenever, under this Plan,
payments in satisfaction of Awards are to be made in cash, such payment will be
net of an amount sufficient to satisfy federal, state, and local withholding tax
requirements.

              10.2 Stock Withholding.  When, under applicable tax laws, a
                   -----------------
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined.  All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee and be in writing in a form acceptable to the
Committee.

         11.  TRANSFERABILITY.
              ---------------

              11.1  Except as otherwise provided in this Section 11, Awards
granted under this Plan, and any interest therein, will not be transferable or
assignable by Participant, and may not be made subject to execution, attachment
or similar process, otherwise than by will or by the laws of descent and
distribution or as determined by the Committee and set forth in the Award
Agreement with respect to Awards that are not ISOs.

              11.2  All Awards other than NQSO's.  All Awards other than NQSO's
                    -----------------------------
shall be exercisable: (i) during the Participant's lifetime, only by (A) the
Participant, or (B) the Participant's guardian or legal representative; and (ii)
after Participant's death, by the legal representative of the Participant's
heirs or legatees.

              11.3  NQSOs.  Unless otherwise restricted by the Committee, an
                    -----
NQSO shall be exercisable: (i) during the Participant's lifetime only by (A) the
Participant, (B) the Participant's guardian or legal representative, (C) a
Family Member of the Participant who has acquired the NQSO by "permitted
transfer;" and (ii) after Participant's death, by the legal representative of
the Participant's heirs or legatees. "Permitted transfer" means, as authorized
by this Plan and the Committee in an NQSO, any transfer effected by the
Participant during the Participant's lifetime of an interest in such NQSO but
only such transfers which are by gift or domestic relations order. A permitted
transfer does not include any transfer for value and neither of the following
are transfers for value: (a) a transfer of under a domestic relations order in
settlement of marital property rights or (b) a transfer to an entity in which
more than fifty percent of the voting interests are owned by Family Members or
the Participant in exchange for an interest in that entity.

         12.  PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES..
              ------------------------------------------------------
<PAGE>

              12.1  Voting and Dividends.  No Participant will have any of
                    --------------------
the rights of a stockholder with respect to any Shares until the Shares are
issued to the Participant.  After Shares are issued to the Participant, the
Participant will be a stockholder and have all the rights of a stockholder with
respect to such Shares, including the right to vote and receive all dividends or
other distributions made or paid with respect to such Shares; provided, that if
                                                              --------
such Shares are Restricted Stock, then any new, additional or different
securities the Participant may become entitled to receive with respect to such
Shares by virtue of a stock dividend, stock split or any other change in the
corporate or capital structure of the Company will be subject to the same
restrictions as the Restricted Stock; provided, further, that the Participant
                                      --------  -------
will have no right to retain such stock dividends or stock distributions with
respect to Shares that are repurchased at the Participant's Purchase Price or
Exercise Price pursuant to Section 12.

              12.2  Financial Statements.  The Company will provide financial
                    --------------------
statements to each Participant prior to such Participant's purchase of Shares
under this Plan, and to each Participant annually during the period such
Participant has Awards outstanding; provided, however, the Company will not be
                                    --------  -------
required to provide such financial statements to Participants whose services in
connection with the Company assure them access to equivalent information.

              12.3  Restrictions on Shares.  At the discretion of the Committee,
                    -----------------------
the Company may reserve to itself and/or its assignee(s) in the Award Agreement
a right to repurchase a portion of or all Unvested Shares held by a Participant
following such Participant's Termination at any time within ninety (90) days
after the later of Participant's Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or cancellation of purchase money
indebtedness, at the Participant's Exercise Price or Purchase Price, as the case
may be.

         13.  CERTIFICATES.  All certificates for Shares or other securities
              ------------
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
law, or any rules, regulations and other requirements of the SEC or any stock
exchange or automated quotation system upon which the Shares may be listed or
quoted.

         14.  ESCROW; PLEDGE OF SHARES.  To enforce any restrictions on a
              ------------------------
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates.  Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant's obligation to the
Company under the promissory note; provided, however, that the Committee may
                                   --------  -------
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of
the Participant's Shares or other collateral.  In connection with any pledge of
the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve.  The
Shares purchased
<PAGE>

with the promissory note may be released from the pledge on a pro rata basis as
the promissory note is paid.

         15.  EXCHANGE AND BUYOUT OF AWARDS.  The Committee may, at any time or
              -----------------------------
from time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards.  The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, Shares (including
Restricted Stock) or other consideration, based on such terms and conditions as
the Committee and the Participant may agree.

         16.  SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.  An Award will not
              ----------------------------------------------
be effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance.
Notwithstanding any other provision in this Plan, the Company will have no
obligation to issue or deliver certificates for Shares under this Plan prior to:
(a) obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable; and/or (b) completion of any registration
or other qualification of such Shares under any state or federal law or ruling
of any governmental body that the Company determines to be necessary or
advisable.  The Company will be under no obligation to register the Shares with
the SEC or to effect compliance with the registration, qualification or listing
requirements of any state securities laws, stock exchange or automated quotation
system, and the Company will have no liability for any inability or failure to
do so.

         17.  NO OBLIGATION TO EMPLOY.  Nothing in this Plan or any Award
              -----------------------
granted under this Plan will confer or be deemed to confer on any Participant
any right to continue in the employ of, or to continue any other relationship
with, the Company or any Parent or Subsidiary of the Company or limit in any way
the right of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

         18.  CORPORATE TRANSACTIONS.
              ----------------------

              18.1 Assumption or Replacement of Awards by Successor. In the
                   ------------------------------------------------
event of (a) a dissolution or liquidation of the Company, (b) a merger or
consolidation in which the Company is not the surviving corporation (other than
a merger or consolidation with a wholly-owned subsidiary, a reincorporation of
the Company in a different jurisdiction, or other transaction in which there is
no substantial change in the stockholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such merger
(other than any stockholder that merges, or which owns or controls another
corporation that merges, with the Company in such merger) cease to own their
shares or other equity interest in the Company, (d) the sale of substantially
all of the assets of the Company, or (e) the acquisition, sale, or transfer of
more than 50% of the outstanding shares of the Company by tender offer or
similar transaction, any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which
<PAGE>

assumption, conversion or replacement will be binding on all Participants. In
the alternative, the successor corporation may substitute equivalent Awards or
provide substantially similar consideration to Participants as was provided to
stockholders (after taking into account the existing provisions of the Awards).
The successor corporation may also issue, in place of outstanding Shares of the
Company held by the Participants, substantially similar shares or other property
subject to repurchase restrictions no less favorable to the Participant. In the
event such successor corporation (if any) refuses to assume or substitute
Awards, as provided above, pursuant to a transaction described in this
Subsection 18.1, such Awards will expire on such transaction at such time and on
such conditions as the Committee will determine. Notwithstanding anything in
this Plan to the contrary, the Committee may, in its sole discretion, provide
that the vesting of any or all Awards granted pursuant to this Plan will
accelerate upon a transaction described in this Section 18. If the Committee
exercises such discretion with respect to Options, such Options will become
exercisable in full prior to the consummation of such event at such time and on
such conditions as the Committee determines, and if such Options are not
exercised prior to the consummation of the corporate transaction, they shall
terminate at such time as determined by the Committee.

              18.2  Other Treatment of Awards.  Subject to any greater rights
                    -------------------------
granted to Participants under the foregoing provisions of this Section 18, in
the event of the occurrence of any transaction described in Section 18.1, any
outstanding Awards will be treated as provided in the applicable agreement or
plan of merger, consolidation, dissolution, liquidation, or sale of assets.

              18.3  Assumption of Awards by the Company.  The Company, from time
                    -----------------------------------
to time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either; (a) granting an Award under this Plan in substitution of
such other company's award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan.  Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant.  In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of Shares issuable
-------
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code).  In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

         19.  ADOPTION AND STOCKHOLDER APPROVAL.  This Plan will become
              ---------------------------------
effective on the date on which the registration statement filed by the Company
with the SEC under the Securities Act registering the initial public offering of
the Company's Common Stock is declared effective by the SEC (the "Effective
Date").  This Plan shall be approved by the stockholders of the Company
(excluding Shares issued pursuant to this Plan), consistent with applicable
laws, within twelve (12) months before or after the date this Plan is adopted by
the Board.  Upon the Effective Date, the Committee may grant Awards pursuant to
this Plan; provided, however, that: (a) no Option may be exercised prior to
           --------  -------
initial stockholder approval of this Plan; (b) no Option granted pursuant to an
increase in the number of Shares subject to this Plan approved by the Board will
be exercised prior to the time such increase has been approved by the
stockholders of the Company; (c) in the event that initial stockholder approval
is not
<PAGE>

obtained within the time period provided herein, all Awards granted hereunder
shall be cancelled, any Shares issued pursuant to any Awards shall be cancelled
and any purchase of Shares issued hereunder shall be rescinded; and (d) in the
event that stockholder approval of such increase is not obtained within the time
period provided herein, all Awards granted pursuant to such increase will be
cancelled, any Shares issued pursuant to any Award granted pursuant to such
increase will be cancelled, and any purchase of Shares pursuant to such increase
will be rescinded.

         20.  TERM OF PLAN/GOVERNING LAW.  Unless earlier terminated as provided
              --------------------------
herein, this Plan will terminate ten (10) years from the date this Plan is
adopted by the Board or, if earlier, the date of stockholder approval.  This
Plan and all agreements thereunder shall be governed by and construed in
accordance with the laws of the State of California.

         21.  AMENDMENT OR TERMINATION OF PLAN.  The Board may at any time
              --------------------------------
terminate or amend this Plan in any respect, including without limitation
amendment of any form of Award Agreement or instrument to be executed pursuant
to this Plan; provided, however, that the Board will not, without the approval
              --------  -------
of the stockholders of the Company, amend this Plan in any manner that requires
such stockholder approval.

         22.  NONEXCLUSIVITY OF THE PLAN.  Neither the adoption of this Plan by
              --------------------------
the Board, the submission of this Plan to the stockholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific
cases.

         23.  DEFINITIONS.  As used in this Plan, the following terms will have
              -----------
the following meanings:

              "Award" means any award under this Plan, including any Option,
Restricted Stock or Stock Bonus.

              "Award Agreement" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award.

              "Board" means the Board of Directors of the Company.

              "Cause" means the commission of an act of theft, embezzlement,
fraud, dishonesty or a breach of fiduciary duty to the Company or a Parent or
Subsidiary of the Company.

              "Code" means the Internal Revenue Code of 1986, as amended.

              "Committee" means the Compensation Committee of the Board.

              "Company" means Interwoven, Inc. or any successor corporation.
<PAGE>

              "Disability" means a disability, whether temporary or permanent,
partial or total, as determined by the Committee.

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

              "Exercise Price" means the price at which a holder of an Option
may purchase the Shares issuable upon exercise of the Option.

              "Fair Market Value" means, as of any date, the value of a share of
the Company's  Common Stock determined as follows:

         (a)  if such Common Stock is then quoted on the Nasdaq National Market,
              its closing price on the Nasdaq National Market on the date of
              determination as reported in The Wall Street Journal;
                                           -----------------------

         (b)  if such Common Stock is publicly traded and is then listed on a
              national securities exchange, its closing price on the date of
              determination on the principal national securities exchange on
              which the Common Stock is listed or admitted to trading as
              reported in The Wall Street Journal;
                          -----------------------

         (c)  if such Common Stock is publicly traded but is not quoted on the
              Nasdaq National Market nor listed or admitted to trading on a
              national securities exchange, the average of the closing bid and
              asked prices on the date of determination as reported in The Wall
                                                                       --------
              Street Journal;
              --------------

         (d)  in the case of an Award made on the Effective Date, the price per
              share at which shares of the Company's Common Stock are initially
              offered for sale to the public by the Company's underwriters in
              the initial public offering of the Company's Common Stock pursuant
              to a registration statement filed with the SEC under the
              Securities Act;  or

         (e)  if none of the foregoing is applicable, by the Committee in good
              faith.

              "Family Member" includes any of the following:

         (a)  child, stepchild, grandchild, parent, stepparent, grandparent,
              spouse, former spouse, sibling, niece, nephew, mother-in-law,
              father-in-law, son-in-law, daughter-in-law, brother-in-law, or
              sister-in-law of the Participant, including any such person with
              such relationship to the Participant by adoption;

         (b)  any person (other than a tenant or employee) sharing the
              Participant's household;

         (c)  a trust in which the persons in (a) and (b) have more than fifty
              percent of the beneficial interest;

         (d)  a foundation in which the persons in (a) and (b) or the
              Participant control the management of assets; or
<PAGE>

         (e)  any other entity in which the persons in (a) and (b) or the
              Participant own more than fifty percent of the voting interest.

              "Insider" means an officer or director of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Exchange Act.

              "Option" means an award of an option to purchase Shares pursuant
to Section 5.

              "Outside Director" means a member of the Board who is not an
employee of the Company or any Parent, Subsidiary or Affiliate of the Company.

              "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if each of such
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

              "Participant" means a person who receives an Award under this
Plan.

              "Performance Factors" means the factors selected by the Committee
from among the following measures to determine whether the performance goals
established by the Committee and applicable to Awards have been satisfied:

              (a) Net revenue and/or net revenue growth;

              (b) Earnings before income taxes and amortization and/or earnings
before
                  income taxes and amortization growth;

              (c) Operating income and/or operating income growth;

              (d) Net income and/or net income growth;

              (e) Earnings per share and/or earnings per share growth;

              (f) Total stockholder return and/or total stockholder return
growth;

              (g) Return on equity;

              (h) Operating cash flow return on income;

              (i) Adjusted operating cash flow return on income;

              (j) Economic value added; and

              (k) Individual confidential business objectives.
<PAGE>

              "Performance Period" means the period of service determined by the
Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Bonuses.

              "Plan" means this Interwoven, Inc. 1999 Equity Incentive Plan, as
amended from time to time.

              "Restricted Stock Award" means an award of Shares pursuant to
Section 6.

              "SEC" means the Securities and Exchange Commission.

              "Securities Act" means the Securities Act of 1933, as amended.

              "Shares" means shares of the Company's Common Stock reserved for
issuance under this Plan, as adjusted pursuant to Sections 2 and 18, and any
successor security.

              "Stock Bonus" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 7.

              "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

              "Termination" or "Terminated" means, for purposes of this Plan
with respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director, consultant, independent
contractor, or advisor to the Company or a Parent or Subsidiary of the Company.
An employee will not be deemed to have ceased to provide services in the case of
(i) sick leave, (ii) military leave, or (iii) any other leave of absence
approved by the Committee, provided, that such leave is for a period of not more
than 90 days, unless reemployment upon the expiration of such leave is
guaranteed by contract or statute or unless provided otherwise pursuant to
formal policy adopted from time to time by the Company and issued and
promulgated to employees in writing. In the case of any employee on an approved
leave of absence, the Committee may make such provisions respecting suspension
of vesting of the Award while on leave from the employ of the Company or a
Subsidiary as it may deem appropriate, except that in no event may an Option be
exercised after the expiration of the term set forth in the Option agreement.
The Committee will have sole discretion to determine whether a Participant has
ceased to provide services and the effective date on which the Participant
ceased to provide services (the "Termination Date").

              "Unvested Shares" means "Unvested Shares" as defined in the Award
Agreement.

              "Vested Shares" means "Vested Shares" as defined in the Award
Agreement.

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