Document:

Hear Me 10-Q - Exhibit 10.18

EXHIBIT 10.18

 

 

 

LOAN AND SECURITY AGREEMENT

HEARME

       This LOAN AND SECURITY AGREEMENT (this  Agreement ) dated May 2, 2000, between SILICON VALLEY BANK ( Bank ) located at 3003 Tasman Drive, Santa Clara, CA 95054 and HEARME (
Borrower ), located at 685 Clyde Avenue, Mountain View, CA  95054, provides the terms on which Bank, will lend to Borrower and Borrower will repay Bank. The parties agree as follows:

1.     ACCOUNTING AND OTHER TERMS

       Accounting terms not defined in this Agreement will be construed following GAAP.  Calculations and determinations must be made following GAAP.  The term  financial statements  includes the notes and
schedules. The terms  including  and  includes  always mean  including (or includes) without limitation  in this or any Loan Document.  Capitalized terms in this Agreement shall have the meanings set forth in Section 13.  This Agreement shall be construed
to impart upon Bank a duty to act reasonably at all times.

2.     LOAN AND TERMS OF PAYMENT

2.1    Credit Extensions.  Borrower will pay Bank the unpaid principal amount of all Credit Extensions and interest on the unpaid principal amount of the Credit Extensions.

2.1.1 Equipment Advances.

       (a)         
Through September 30, 2000 (the  Equipment Availability End Date ), Bank will make advances ( Equipment Advance  and, collectively,  Equipment Advances ) not exceeding the Committed Equipment Line. The Equipment Advances may only be used to purchase or
refinance Equipment purchased on or after 120 days before the Closing Date and may not exceed 100% of the invoice for such Equipment, excluding taxes, shipping, warranty charges, freight discounts and installation expense.  Software, leasehold
improvements and other soft costs may constitute up to 20% of an Equipment Advance.

       (b)         
Interest accrues from the date of each Equipment Advance at the rate of 1% plus the Prime Rate per annum and is payable monthly until the Equipment Availability End Date occurs. Equipment Advances outstanding on the Equipment Availability End Date are
payable in 36 equal monthly installments of principal, plus accrued interest, beginning on October 7, 2000 and ending on September 7, 2003 the ( Equipment Loan Maturity Date ).  Equipment Advances when repaid may not be
reborowed.

       (c)         
To obtain an Equipment Advance, Borrower must notify Bank (the notice is irrevocable) by facsimile no later than 3:00 p.m. Pacific time 1 Business Day before the day on which the Equipment Advance is to be made.  The notice in the form of Exhibit B
(Payment/Advance Form) must be signed by a Responsible Officer or designee and include a copy of the invoice for the Equipment being financed.

2.2     Interest Rate; Payments.

        (a)         
Interest Rate. Advances accrue interest on the outstanding principal balance at a per annum rate equal to 0.25 percentage points above the Prime Rate.  After an Event of Default arising out of Borrower s
failure to comply with any of Sections 6.7, 7, or 8.1, Obligations accrue interest at 5 percent above the rate effective immediately before the Event of Default.  The interest rate increases or decreases when the Prime Rate changes. Interest is computed
on a 360 day year for the actual number of days elapsed.

        (b)         
Payments.  Interest is payable on the second day of each month.  Bank may debit any of Borrower s deposit accounts including Account Number__________ for principal and interest payments or any amounts
Borrower owes Bank. Bank will notify Borrower when it debits Borrower s accounts.  These debits are not a set-off.  Payments received after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day.  When a
payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest accrue.

1

2.3     Fees.  Borrower will pay to Bank:

        (a)         
Facility Fee.  A fully earned, non-refundable facility fee of $12,000, of which $6,000 is due on the Closing Date, and $6,000 is due on October 31, 2000; and

        (b)         
Bank Expenses.  All Bank Expenses (including reasonable attorneys  fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Closing Date when due, not to exceed $10,000.

3.     CONDITIONS OF LOANS

3.1   Conditions Precedent to Initial Credit Extension.  Bank's obligation to make the initial Credit Extension is subject to the condition precedent that it receive the
agreements, documents and fees it requires.

3.2    Conditions Precedent to all Credit Extensions.  Bank's obligations to make each Credit Extension, including the initial
Credit Extension, is subject to the following:

         
(a)          timely receipt of any Payment/Advance Form; and

       (b)         
the representations and warranties in Section 5 must be materially true on the date of the Payment/Advance Form and on the effective date of each Credit Extension and no Event of Default shall have occurred and be continuing, or result from the Credit
Extension. Each Credit Extension is Borrower s representation and warranty on that date that the representations and warranties in Section 5 remain true.

4.     CREATION OF SECURITY INTEREST

5.     REPRESENTATIONS AND WARRANTIES

         
Borrower represents and warrants as follows: 

5.1    Due Organization and Authorization.  Borrower and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do
business in, and in good standing in, any state in which the conduct of its business or its ownership of property requires that it be qualified.  The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict
with Borrower s formations documents, nor constitute an event of default under any material agreement by which Borrower is bound.  Borrower is not in default under any agreement to which or by which it is bound in which the default could reasonably be
expected to cause a Material Adverse Change.

5.2    Collateral.  Borrower has good title to the Collateral, free of Liens except Permitted Liens.  The Accounts are bona fide, existing obligations, and the service or property has been
performed or delivered to the account debtor or its agent for immediate shipment to and unconditional acceptance by the account debtor.  All Inventory is in all material respects of good and marketable quality, free from material defects.  Borrower is the
sole owner or licensee of the Intellectual Property used in Borrower s business, except for non-exclusive licenses granted to its customers in the ordinary course of business.  As of the Closing Date, each Patent is valid and enforceable and no part of
the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property violates the rights of any third party.

2

5.3     Litigation.  Except as shown in the Schedule, there are no actions or proceedings pending or, to Borrower s knowledge, threatened by or against Borrower or any
Subsidiary in which an adverse decision could reasonably be expected to cause a Material Adverse Change.

5.4     No Material Adverse Change in Financial Statements.  All consolidated financial statements for Borrower and any Subsidiary delivered to Bank fairly present in all material respects
Borrower s consolidated financial condition and Borrower s consolidated results of operations.  There has not been any material deterioration in Borrower s consolidated financial condition since the date of the most recent financial statements submitted
to Bank.

5.5     Solvency.  The fair salable value of Borrower s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; the Borrower is not left with
unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature.

xcept those being contested in good faith with adequate reserves under GAAP.  To the best of Borrower s knowledge, Borrower and each Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given
all notices to, all government authorities that are necessary to continue its business as currently conducted except where the failure to do so could not reasonably be expected to cause a Material Adverse Change.

5.7     Subsidiaries.  Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments.

5.8     Full Disclosure.  No representation, warranty or other statement of Borrower in any certificate or written statement given to Bank taken together with all such certificates and
written statements given to Bank contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Bank that the
projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not to be viewed as facts and that actual results during the period or periods covered by any such projections and forecasts may differ from the
projected or forecasted results).

6.     AFFIRMATIVE COVENANTS

         
Borrower will do all of the following:

6.1    Government Compliance.  Borrower will maintain its and all Subsidiaries  corporate existence and good standing in its jurisdiction of incorporation and maintain qualification in each
jurisdiction in which the failure to so qualify could have a material adverse effect on Borrower s business or operations.  Borrower will comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject,
noncompliance with which could have a material adverse effect on Borrower s business or operations or cause a Material Adverse Change.

6.2     Financial Statements, Reports, Certificates.

        (a)         
Borrower will deliver to Bank:  (i) as soon as available, but no later than 45 days after the last day of each fiscal quarter (and the last day of each month at any time that Borrower s balance of unrestricted cash is less than $25,000,000), a company
prepared consolidated balance sheet and income statement covering Borrower s consolidated operations during the period, in a form acceptable to Bank and certified by a Responsible Officer;

3

 financial information Bank requests.

        (b)         
Within 45 days after the last day of each quarter (and the last day of each month at any time that Borrower s balance of unrestricted cash is less than $25,000,000), Borrower will deliver to Bank with the financial statements due under Section 6.2(a) a
Compliance Certificate signed by a Responsible Officer in the form of Exhibit D.

        (c)          
As a condition to making any Advances, Bank has the right to audit Borrower s Accounts at Borrower s expense.  Thereafter,  Bank may conduct audits at Borrower s expense, but not more often than once every 12 months unless an Event of Default has occurred
and is continuing.

6.3     Inventory; Returns.  Borrower will keep all Inventory in good and marketable condition, free from material defects.  Returns and allowances between Borrower and
its account debtors will follow Borrower s customary practices as they exist at the Closing Date.  Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than $150,000.

6.4     Taxes.  Borrower will make, and cause each Subsidiary to make, timely payment of all material federal, state, and local taxes or assessments and will deliver to
Bank, on demand, appropriate certificates attesting to the payment.

nt property shall be deemed Collateral in which Bank has been granted a first priority security interest.  If an Event of Default has occurred and is continuing, then, at Bank s option, proceeds payable under any policy will be payable to Bank on account
of the Obligations.

6.6     Primary Accounts.  Borrower will maintain its primary depository and operating accounts with Bank.

6.7     Financial Covenants.

        Borrower will maintain as of the last day of each fiscal quarter (or, as to the Quick Ratio, the last day of each month in which the balance of Borrower s unrestricted cash is less than $25,000,000)
the following financial ratios and covenants:

        (a)         
Quick Ratio [Adjusted].  A ratio of Quick Assets to Current Liabilities (including all amounts owed to Bank, to the extent not already included as a Current Liability) minus Deferred Maintenance Revenue of at
least 1.75 to 1.0.

        (b)         
Revenue.  The revenue in each quarter shall exceed the revenue in each previous fiscal quarter, except the revenue may decline from the fourth quarter of 2000 to the first quarter of 2001.

4

        (c)         
Profitability.  Borrower will not suffer a loss in excess of $12,500,000 for the fiscal quarter ending June 30, 2000, a loss in excess of $12,000,000 for the fiscal quarter ending September 30, 2000, a loss
in excess of $11,500,000 for the fiscal quarter ending December 31, 2000, or a loss in excess of $11,000,000 for the fiscal quarter ending March 31, 2001.  Profitability and loss covenants for subsequent quarters (i.e. quarters ending June 30, 2001
through March 31, 2002) shall be established to the mutual satisfaction of Bank and Borrower by April 30, 2001, provided that if no such agreement is reached in good faith by such date, this Agreement shall terminate, and all amounts outstanding
hereunder, shall be due on April 30, 2001.  Calculation of losses under this section shall not include amortization charges related to the AudioTalk acquisition 

6.8     Further Assurances.  Borrower will execute any further instruments and take further action as Bank requests to perfect or continue Bank s security interest in the Collateral or to
effect the purposes of this Agreement.

7.     NEGATIVE COVENANTS

        Borrower will not do any of the following without the Bank s written consent, which will not be unreasonably withheld:

7.1     Dispositions.  Convey, sell, lease, transfer or otherwise dispose of (collectively a  Transfer ), or permit any of its Subsidiaries to Transfer, all or any part of its business or
property, other than a Transfer (i) of its property (other than Equipment financed under this Agreement) in the ordinary course of business; (ii) of non-exclusive licenses and similar arrangements for the use of the property of Borrower or its
Subsidiaries in the ordinary course of business; or (iii) of worn-out or obsolete Equipment or (iv) other Transfers which in the aggregate do not exceed $50,000 in any fiscal year.

7.2     Changes in Business, Ownership, Management or Business Locations.  Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged
in by Borrower or reasonably related thereto,
or have a material change in its ownership (other than the sale of Borrower s equity securities in a public offering or to venture capital investors approved by Bank) of greater than 25%, or its management.  Borrower will not, without at least 30 days
prior written notice to Bank, relocate its principal executive office or add any new offices or business locations.

7.3     Mergers or Acquisitions.  Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to
acquire, all or substantially all of the capital stock or property of another Person except where (i) such acquisitions do not involve consideration other than Borrower s equity securities with an aggregate value greater than $250,000 and (ii) no Event of
Default has occurred and is continuing or would exist after giving effect to the transactions.  A Subsidiary may merge or consolidate into another Subsidiary or into Borrower.

7.4     Indebtedness.  Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.

7.5     Encumbrance.  Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or
permit any of its Subsidiaries to do so, except for Permitted Liens.

7.6     Investments; Distributions.  (i) Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments and
mergers and acquisitions permitted under Section 7.3, or permit any of its Subsidiaries to do so; or (ii) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock, except for repurchases of stock from former
employees or directors of Borrower under the terms of applicable repurchase agreements in an aggregate amount not to exceed $50,000 in the aggregate in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after
giving effect to the repurchases.

5

7.7     Transactions with Affiliates.  Directly or indirectly enter or permit any material transaction with any Affiliate, except transactions that are in the ordinary
course of Borrower s business, on terms less favorable to Borrower than would be obtained in an arm s length transaction with a non-affiliated Person.

7.8     Subordinated Debt.  Make or permit any payment on any Subordinated Debt, except under the terms of the Subordinated Debt, or amend any provision in any document
relating to the Subordinated Debt, without Bank s prior written consent.

7.9     Compliance.  Undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any Advance for that
purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the
violation could reasonably be expected to have a material adverse effect on Borrower s business or operations or cause a Material Adverse Change, or permit any of its Subsidiaries to do so.

8.     EVENTS OF DEFAULT

         
Any one of the following is an Event of Default:

8.1     Payment Default.  Borrower fails to pay any of the Obligations within 5 days after their due date. During the additional period the failure to cure the default
is not an Event of Default (but no Credit Extensions will be made during the cure period);

8.2     Covenant Default.  Borrower does not perform any obligation in Section 6 or violates any covenant in Article 7 or does not perform or observe any other material
term, condition or covenant in this Agreement, any Loan Documents, or in any agreement between Borrower and Bank and as to any default under a term, condition or covenant that can be cured, has not cured the default within 10 Business Days after it
occurs, or if the default cannot be cured within 10 Business Days or cannot be cured after Borrower s attempts in the 10 Business Day period, and the default may be cured within a reasonable time, then Borrower has an additional time, (of not more than 30
days) to attempt to cure the default.  During the additional period the failure to cure the default is not an Event of Default (but no Credit Extensions will be made during the cure period);

8.3     Material Adverse Change.  (i) A material impairment in the perfection or priority of Bank s security interest in the Collateral or in the value of such
Collateral that is not covered by adequate insurance occurs; or (ii) there occurs a material adverse change in Borrower s business or financial condition;

8.4     Attachment.  (i) Any material portion of Borrower s assets is attached, seized, levied on, or comes into possession of a trustee or receiver and the attachment,
seizure or levy is not removed in 10 days; (ii) Borrower is enjoined, restrained, or prevented by court order from conducting a material part of its business; (iii) a judgment or other claim becomes a Lien on a material portion of Borrower s assets; or
(iv) a notice of lien, levy, or assessment is filed against any of Borrower s assets by any government agency and not paid within 10 days after Borrower receives notice.  These are not Events of Default if stayed or if a bond is posted pending contest by
Borrower (but no Credit Extensions will be made during the cure period);

8.5     Insolvency.  (i) Borrower becomes insolvent; (ii) Borrower begins an Insolvency Proceeding; or (iii) an Insolvency Proceeding is begun against Borrower and not
dismissed or stayed within 30 days (but no Credit Extensions will be made before any Insolvency Proceeding is dismissed);

8.6     Misrepresentations.  If Borrower or any Person acting for Borrower makes any material misrepresentation or material misstatement now or later in any warranty or
representation in this Agreement or in any communication delivered to Bank or to induce Bank to enter this Agreement or any Loan Document.

6

9.     BANK S RIGHTS AND REMEDIES

9.1    Rights and Remedies.  When an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following:

        (a)         
Declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank);

        (b)         
Stop advancing money or extending credit for Borrower s benefit under this Agreement or under any other agreement between Borrower and Bank;

        (c)         
Settle or adjust disputes and claims directly with account debtors for amounts, on terms and in any order that Bank considers advisable;

        (d)         
Make any payments and do any acts it considers necessary or reasonable to protect its security interest in the Collateral.  Borrower will assemble the Collateral if Bank requests and make it available as Bank designates.  Bank may enter premises where the
Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a
license to enter and occupy any of its premises, without charge, to exercise any of Bank s rights or remedies;

        (e)         
Apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower;

        (f)         
Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral.  Bank is granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower s labels, Patents, Copyrights,
Mask Works, rights of use of any name, trade secrets, trade names, Trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral
and, in connection with Bank s exercise of its rights under this Section, Borrower s rights under all licenses and all franchise agreements inure to Bank s benefit; and

         
(g)          Dispose of the Collateral according to the Code.

9.2     Power of Attorney.  When an Event of Default occurs and continues, Borrower irrevocably appoints Bank as its lawful attorney to:  (i) endorse Borrower s name on
any checks or other forms of payment or security; (ii) sign Borrower s name on any invoice or bill of lading for any Account or drafts against account debtors, (iii) make, settle, and adjust all claims under Borrower s insurance policies; (iv) settle and
adjust disputes and claims about the Accounts directly with account debtors, for amounts and on terms Bank determines reasonable; and (v) dispose of the Collateral in accordance with the Code.  Bank may exercise the power of attorney to sign Borrower s
name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred.  Bank s appointment as Borrower s attorney in fact, and all of Bank s rights and powers, coupled with an
int

erest, are irrevocable until all Obligations have been fully repaid and performed and Bank s obligation to provide Credit Extensions terminates.

9.3     Accounts Collection.  When an Event of Default occurs and continues, Bank may notify any Person owing Borrower money of Bank s security interest in the funds
and verify the amount of the Account.  Borrower must collect all payments in trust for Bank and, if requested by Bank, immediately deliver the payments to Bank in the form received from the account debtor, with proper endorsements for deposit.

9.4     Bank Expenses.  If Borrower fails to pay any amount or furnish any required proof of payment to third persons Bank may make all or part of the payment or obtain
insurance policies required in Section 6.5, and take any action under the policies Bank deems prudent.  Any amounts paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then applicable rate and secured by the Collateral.
 No payments by Bank are deemed an agreement to make similar payments in the future or Bank s waiver of any Event of Default.

7

9.5     Bank's
Liability for Collateral. If Bank
complies with reasonable banking practices, it is not liable or responsible for:
(a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral;
(c) any diminution in the value of the Collateral; or (d) any act or default of
any carrier, warehouseman, bailee, or other person.  Borrower bears all
risk of loss, damage or destruction of the Collateral.
9.6     Remedies
Cumulative. Bank's rights and remedies
under this Agreement, the Loan Documents, and all other agreements are
cumulative.  Bank has all rights and remedies provided under the Code, by
law, or in equity.  Bank's exercise of one right or remedy is not an
election, and Bank's waiver of any Event of Default is not a continuing
waiver.  Bank's delay is not a waiver, election, or acquiescence.  No
waiver is effective unless signed by Bank and then is only effective for the
specific instance and purpose for which it was given.

9.7     Demand
Waiver. Borrower waives demand, notice
of default or dishonor, notice of payment and nonpayment, notice of any default,
nonpayment at maturity, release, compromise, settlement, extension, or renewal
of accounts, documents, instruments, chattel paper, and guaranties held by Bank
on which Borrower is liable.

10.     NOTICES

        All notices or demands by any party to this Agreement or any other related agreement must be in writing and be personally delivered or sent by an overnight delivery service, by certified mail,
postage prepaid, return receipt requested, or by telefacsimile at the addresses listed at the beginning of this Agreement. A Party may change its notice address by giving the other Party written notice.

11.    CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER
           
California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California.

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL
OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

12.      GENERAL PROVISIONS

12.1      Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this
Agreement or any rights or Obligations under it without Bank s prior written consent which may be granted or withheld in Bank s discretion. Bank has the right, without the consent of or notice to Borrower, to sell, transfer, negotiate, or grant
participation in all or any part of, or any interest in, Bank s obligations, rights and benefits under this Agreement, the Loan Documents or any related agreement.

12.2      Indemnification. Borrower will indemnify, defend and hold harmless Bank and its officers, employees and agents against: (a) all obligations, demands, claims, and
liabilities asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank from, following, or consequential to transactions between Bank and Borrower
(including reasonable attorneys  fees and expenses), except for losses caused by Bank s gross negligence or willful misconduct.

12.3      Severability of Provision. Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision.

12.4      Amendments in Writing, Integration. All amendments to this Agreement must be in writing signed by both Bank and Borrower. This Agreement and the Loan Documents
represent the entire agreement about this subject matter, and supersedes prior or contemporaneous negotiations or agreements. All prior or contemporaneous

8

agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents.

12.5      Counterparts.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when
executed and delivered, are an original, and all taken together, are one Agreement.

12.6      Survival.  All covenants, representations and warranties made in this Agreement continue in full force while  any Obligations remain outstanding.  The
obligations of Borrower in Section 12.2 to indemnify Bank will survive until all statutes of limitations for actions that may be brought against Bank have run.

 from disclosing the information.

12.8     Attorneys  Fees, Costs and Expenses.  In any action or proceeding between Borrower and Bank arising out of the Loan Documents, the prevailing party will
be entitled to recover its reasonable attorneys  fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled, whether or not a lawsuit is filed.

13.      DEFINITIONS

13.1     Definitions.

            "Accounts"
are all existing and later arising accounts, contract rights, and other
obligations owed Borrower in connection with its sale or lease of goods
(including licensing software and other technology) or provision of services,
all credit insurance, guaranties, other security and all merchandise returned or
reclaimed by Borrower and Borrower's Books relating to any of the foregoing.

            
"Advance" or
"Advances" is a loan advance (or advances) under the Committed
Revolving Line.

           
"Affiliate" of a Person is a Person that owns or controls
directly or indirectly the Person, any Person that controls or is controlled by
or is under common control with the Person, and each of that Person s senior
executive officers, directors, partners and, for any Person that is a limited
liability company, that Person s managers and members.

           
"Bank Expenses" are all audit fees and expenses and reasonable
costs or expenses (including reasonable attorneys fees and expenses) for
preparing, negotiating, administering, defending and enforcing the Loan
Documents (including appeals or Insolvency Proceedings).

           
"Borrower's Books" are all Borrower s books and records
including ledgers, records regarding Borrower s assets or liabilities, the
Collateral, business operations or financial condition and all computer programs
or discs or any equipment containing the information.

           
"Business Day" is any day that is not a Saturday, Sunday or
a day on which the Bank is closed.

           
"Closing Date"  is the date of this Agreement.

           
"Code"  is the California Uniform Commercial Code.

9

            "Collateral"  is the property described on  Exhibit A.

           

"Committed Equipment Line"   is a Credit Extension of up to $3,000,000.

            "Contingent Obligation" is, for any Person,
any direct or indirect liability, contingent or not, of that Person for (i) any
indebtedness, lease, dividend, letter of credit or other obligation of another
such as an obligation directly or indirectly guaranteed, endorsed, co-made,
discounted or sold with recourse by that Person, or for which that Person is
directly or indirectly liable; (ii) any obligations for undrawn letters of
credit for the account of that Person; and (iii) all obligations from any
interest rate, currency or commodity swap agreement, interest rate cap or collar
agreement, or other agreement or arrangement designated to protect a Person
against fluctuation in interest rates, currency exchange rates or commodity
prices; but Contingent Obligation does not include endorsements in the ordinary
course of business. The amount of a Contingent Obligation is the stated or
determined amount of the primary obligation for which the Contingent Obligation
is made or , if not determinable, the maximum reasonably anticipated liability
for it determined by the Person in good faith; but the amount may not exceed the
maximum of the obligations under the guarantee or other support arrangement.

           

"Copyrights" are all copyright rights, applications or
registrations and like protections in each work or authorship or derivative
work, whether published or not (whether or not it is a trade secret) now or
later existing, created, acquired or held.

           

"Credit Extension"  is each Equipment Advance or any other extension of credit by Bank for Borrower s benefit.

            "Current Assets"  are amounts that under GAAP should be included on that date as current assets on Borrower s consolidated balance sheet.

            "Current Liabilities"  are the aggregate amount of Borrower s total liabilities which mature within one (1) year.

           

"Deferred Maintenance Revenue"   is all amounts received in advance of performance under maintenance contracts and not yet recognized as revenue.

            "Equipment"  is all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in which
Borrower has any interest.

            "Equipment Advance" 

is defined in Section 2.1.

           

"Equipment Availability End Date"   is defined in Section 2.1.

           

"Equipment Maturity Date"   is defined in Section 2.1.

            "ERISA"  is the Employment Retirement Income Security Act of 1974, and its regulations.

            "GAAP"  is generally accepted accounting principles.

            "Indebtedness"  is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other
obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d) Contingent Obligations.

           

"Insolvency Proceeding"  is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions,
extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.

            
"Intellectual Property"  is:

10

              
(a)     Copyrights, Trademarks, Patents, and Mask Works including amendments, renewals, extensions, and all licenses or other rights to use and all license fees and royalties from the use;

              
(b)     Any trade secrets and any Intellectual Property Rights in computer software and computer software products now or later existing, created, acquired or held;

              
(c)     All design rights which may be available to Borrower now or later created, acquired or held;

              
(d)     Any claims for damages (past, present or future) for infringement of any of the rights above, with the right, but not the obligation, to sue and collect damages for use or infringement of the intellectual property
rights above;

                   
All proceeds and products of the foregoing, including all insurance, indemnity or warranty payments.

            "Inventory"  is present and future inventory in which Borrower has any interest, including merchandise, raw materials, parts, supplies, packing and shipping
materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or later owned by or in the custody or possession, actual or constructive, of Borrower, including
inventory temporarily out of its custody or possession or in transit and including returns on any accounts or other proceeds (including insurance proceeds) from the sale or disposition of any of the foregoing and any documents of title.

            "Investment"  is any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance
or capital contribution to any Person.

            "Lien"  is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

            "Loan Documents"  are, collectively, this Agreement, any note, or notes or guaranties executed by Borrower or Guarantor, and any other present or future
agreement between Borrower and/or for the benefit of Bank in connection with this Agreement, all as amended, extended or restated.

            "Material Adverse Change"  is defined in Section 8.3.

            "Maturity Date" 

is the Equipment Loan Maturity Date.

            "Obligations"  are debts, principal, interest, Bank Expenses and other amounts Borrower owes Bank now or later, including letters of credit and foreign
exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank.

            "Patents" 

are patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

            "Permitted Indebtedness"  is:

            (a)     Borrower s indebtedness to Bank under this Agreement or the Loan Documents; 

            (b)     Indebtedness existing on the Closing Date and shown on the Schedule; 

            (c)     Subordinated Debt;

            (d)    Indebtedness to trade creditors and with respect to surety bonds and similar obligations incurred in the ordinary course of business; and

            (e)     Indebtedness secured by Permitted Liens, including equipment purchase and lease agreements;

11

            (f)      Indebtedness of Borrower to any Subsidiary and Contingent Obligations of any Subsidiary with respect to obligations of Borrower (provided
that the primary obligations are not prohibited hereby), and Indebtedness of any Subsidiary to any other Subsidiary and Contingent Obligations of any Subsidiary with respect to obligations of any other Subsidiary (provided that the primary obligations are
not prohibited hereby);

            (g)     Other Indebtedness not otherwise permitted by Section 7.4 not exceeding $150,000 in the aggregate outstanding at any time; and

            (h)     Extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (f) above, provided that
the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.

            "Permitted Investments"  are:

            (a)      Investments shown on the Schedule and existing on the Closing Date; and

            (b)     (i) marketable direct obligations issued or unconditionally guaranteed by the United States or its agency or any State maturing within 1 year from
its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating from either Standard & Poor s Corporation or Moody s Investors Service, Inc., and (iii) Bank s certificates of deposit issued maturing
no more than 1 year after issue and (iv) any Investments permitted by Borrower s investment policy, as amended from time to time, provided that such investment policy (and any such amendment thereto) has been approved by Bank;

            (c)      Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of Borrower;

            (d)      Investments accepted in connection with Transfers permitted by Section 7.1;

            (e)      Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Subsidiaries not to exceed $250,000 in the
aggregate in any fiscal year

            (f)      Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of
business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower s Board of Directors

            (g)     Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement
of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

            (h)     Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates,
in the ordinary course of business; provided that this paragraph (h) shall not apply to Investments of Borrower in any Subsidiary;

           
(i)      Joint ventures or strategic alliances in the ordinary course of Borrower s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided
that any cash investments by Borrower do not exceed $50,000 in the aggregate in any fiscal year;

            (j)     Other Investments not otherwise permitted by Section 7.7 not exceeding $50,000 in the aggregate outstanding at any time; and

            (k)     Investments made in accordance with Borrower s investment policy in the form attached hereto, as amended from time to time with Bank s prior
written consent.

            "Permitted Liens"  are:

12

            (a)      Liens existing on the Closing Date and shown on the Schedule or arising under this Agreement or other Loan Documents;

            (b)      Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and for
which Borrower maintains adequate reserves on its Books, if they have no priority over any of Bank s security interests;

            (c)      Liens granted in Equipment being leased to the lessor thereof, and purchase money Liens (i) on Equipment acquired or held by Borrower or its
Subsidiaries incurred for financing the acquisition of the Equipment, or (ii) existing on equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the equipment;

            (d)      Leases or subleases and licenses or sublicenses granted in the ordinary course of Borrower s business,if
 the leases, subleases, licenses and sublicenses permit granting Bank a security interest;

            (e)      Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension,
renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase;

            (f)       Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.4 or 8.7;

            (g)      
Liens in favor of other financial institutions arising in connection with Borrower s deposit accounts held at such institutions, provided that Bank has a perfected security interest in the amounts held in such deposit accounts; and

            (h)      
Other Liens not described above arising in the ordinary course of business and not having or not reasonably likely to have a material adverse effect on Borrower and its Subsidiaries taken as a whole.

            "Person"  is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

            "Prime Rate"  is Bank s most recently announced  prime rate,  even if it is not Bank s lowest rate.

            "Quick Assets"  is, on any date, the Borrower s consolidated, unrestricted cash, cash equivalents, net billed accounts receivable and investments with
maturities of less than 12 months determined according to
GAAP.

            "Responsible Officer"  is each of the Chief Executive Officer, the President, the Chief Financial Officer and the Controller of Borrower.

            "Revolving Maturity Date" 

is the day before the first anniversary of the date of this Agreement.

            "Schedule"  is any attached schedule of exceptions.

            "Subordinated Debt"  is debt incurred by Borrower subordinated to Borrower s debt to Bank (and identified as subordinated by Borrower and Bank).

            "Subsidiary"  is for any Person, joint venture, or any other business entity of which more than 50% of the voting stock or other equity interests is owned or
controlled, directly or indirectly, by the Person or one or more Affiliates of the Person.

            "Trademarks"  are trademark and service mark rights, registered or not, applications to register and registrations and like protections,
and the entire goodwill of the business of Assignor connected with the trademarks.

13

BORROWER:

HEARME

	By:	
		

	Title:	
		

SILICON VALLEY BANK

	By:	
		

	Title:	
		

 

14

EXHIBIT A 

COLLATERAL DESCRIPTION ATTACHMENT

TO LOAN AND SECURITY AGREEMENT

         
The Collateral shall consist of all right, title and interest of Borrower in and to the following:

          (a)         
All goods and equipment now owned or hereafter acquired, including, without limitation, all machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing, and all attachments, accessories, accessions,
replacements, substitutions, additions, and improvements to any of the foregoing, wherever located;

          (b)        
All inventory, now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products including such inventory as is temporarily out of
Borrower s custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the
above, and Borrower s Books relating to any of the foregoing;

          (c)        
All contract rights and general intangibles now owned or hereafter acquired, including, without limitation, goodwill, leases, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements,
claims, computer programs, computer discs, computer tapes, literature, reports, catalogs, design rights, income tax refunds, payments of insurance and rights to payment of any kind;

          (d)        
All now existing and hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations owing to Borrower arising out of the sale or lease of goods, the licensing of technology or the rendering of services by
Borrower, whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower s Books relating to any of the foregoing;

          (e)        
All documents, cash, deposit accounts, securities, securities accounts, security entitlements, financial assets, investment property, letters of credit, certificates of deposit, instruments and chattel paper now owned or hereafter acquired and Borrower s
Books relating to the foregoing; and

          (f)        
Any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds thereof.

Notwithstanding the foregoing, Collateral shall not include any copyrights, trademarks, servicemarks, tradestyles, trade names, patents, patent applications, copyright rights, copyright applications and like protections in each work of
authorship and derivative work thereof; trade secret rights, including rights to unpatented inventions, know how, operating manuals, license rights and agreements and confidential information, mask works or similar rights for the protection of
semiconductor chips, or any claims for damages by way of any past, present and future infringement of any of the foregoing. (collectively, the  Intellectual Property ), except that the Collateral shall include the proceeds of all the Intellectual
Property, including proceeds in the form of accounts and general intangibles.

15

EXHIBIT B

LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM

DEADLINE FOR SAME DAY PROCESSING IS 3:00 P.M.,
PACIFIC TIME

	TO: CENTRAL CLIENT DIVISION	DATE: 	
	 		
      

      
	FAX #: (408) 496-2426	TIME: 	
			
      

      

	FROM:	
		
      

    
	 	CLIENT NAME (BORROWER)

	REQUESTED BY:	
		
      

    
	 	AUTHORIZED SIGNER S NAME

	AUTHORIZED SIGNATURE:	 
		
      

    

	PHONE NUMBER:	
		
      

    

	FROM ACCOUNT #			TO ACCOUNT #	
		
      

    			
      

    

	REQUESTED TRANSACTION TYPE	REQUEST DOLLAR AMOUNT
	 	$	 
	 	 	
      

    
	PRINCIPAL INCREASE (ADVANCE)	$	 
	 	 	
      

    
	PRINCIPAL PAYMENT (ONLY)	$	 
	 	 	
      

    
	INTEREST PAYMENT (ONLY)	$	 
	 	 	
      

    
	PRINCIPAL AND INTEREST (PAYMENT)	$	 
	 	 	
      

    

	OTHER INSTRUCTIONS:	 
	 	
      

    
	 
	
      

    

	         
      All representations and warranties of Borrower stated in the Loan
      Agreement are true, correct and complete in all material respects as of
      the date of the telephone request for and Advance confirmed by this
      Borrowing Certificate; provided, however, that those representations and
      warranties expressly referring to another date shall be true, correct and
      complete in all material respects as of such date.

	
      BANK USE ONLY

	TELEPHONE REQUEST:

      
      
	The following person is
      authorized to request the loan payment transfer/loan advance on the
      advance designated account and is known to me.
	 
	
      

    	 	
      

    
	Authorized Requester	 	Phone #
	 	 	 
	
      

    	 	
      

    
	Received By (Bank)	 	Phone #

	 	 	 
	 	
      

    	 
	 	
      Authorized Signature (Bank)
	 

16

EXHIBIT C

COMPLIANCE CERTIFICATE

TO:          
SILICON VALLEY BANK

FROM:    HEARME

     The undersigned authorized officer of HEARME certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the  Agreement ), (i) Borrower is in complete compliance
for the period ending _______________ with all required covenants except as noted below and (ii) all representations and warranties in the Agreement are true and correct in all material respects on this date.  Attached are the required documents
supporting the certification.  The Officer certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one period to the next except as explained in an accompanying letter or footnotes.
The Officer acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered
 .

Please indicate compliance status by circling Yes/No under  Complies  column.

		Reporting Covenant		Required		 	
   	
    Complies

   	
   
		 		 		 		 	
		Quarterly financial statements1		Quarterly within 45 days1				Yes            
    No	
		Annual (CPA Audited)		FYE within 90 days 				Yes            
    No	
		10-Q, 10K and 8-K		Within 5 days after filing with SEC		Yes            
    No	
		 		 		 		 	
		Financial Covenant		Required		Actual	
   	
    Complies

   	
   
									
		Maintain on a Quarterly Basis:		 		 		 	
		     Minimum Quick Ratio		1.75:1.002		_____:1.00		Yes            
    No	
		     Minimum Revenue		3		$_____		Yes            
    No	
		 		 		 		 	
		Profitability         
    Quarterly		4		$___________		Yes            
    No	
		 		 		 		 	

1 Monthly when unrestricted cash is less than $25,000,000. 

 2 Monthly when unrestricted cash is less than $25,000,000.

3 Greater than previous quarter, except decline permitted for Q499 to Q100. 

4 Quarterly loss not to exceed:

		6/30/00	($12,500,000)
		9/30/00	($12,000,000)
		12/31/00	($11,500,000)
		3/31/01 	            ($11,000,000)

	 	 	

	Comments Regarding Exceptions:  See Attached.
    	 	BANK USE ONLY
	 	 	 
	 	 	 
	 	 	Received by:
	 	 	

	Sincerely,	 	AUTHORIZED SIGNER

	 	 	Date:
	 	 		

	 	 	Verified:	
	
	 	 	

	 SIGNATURE	 	AUTHORIZED SIGNER
	 	 	 

	 	 	Date:
	
	 	

	 TITLE	 	 

	 	 	Compliance Status	Yes	 	No	 
	
	 	 
	 DATE	 	 
	 	 	

17

CORPORATE RESOLUTIONS TO BORROW

	

	Borrower:	HEARME
	

   I, the undersigned Secretary or Assistant Secretary of HEARME (the  Corporation ), HEREBY CERTIFY that the Corporation is organized and existing under and by virtue of the laws of the State of Delaware.

     I FURTHER CERTIFY that attached hereto as Attachments 1 and 2 are true and complete copies of the Certificate of Incorporation, as amended, and the Bylaws of the Corporation, each of which is in full force and
effect on the date hereof.

     I FURTHER CERTIFY that at a meeting of the Directors of the Corporation, duly called and held, at which a quorum was present and voting (or by other duly authorized corporate action in lieu of a meeting), the
following resolutions were adopted.

     BE IT RESOLVED, that any one (1) of the following named officers, employees, or agents of this Corporation, whose actual signatures are shown below:

	NAMES	 	POSITION	 	ACTUAL
    SIGNATURES
					
	
		
		

	 	 	 	 	 
	
	 	
	 	

					
	
	 	
	 	

					
	
	 	
	 	

acting for and on behalf of this Corporation and
as its act and deed be, and they hereby are, authorized and empowered:

      Borrow
Money. To borrow from time to time from
Silicon Valley Bank ("Bank"), on such terms as may be agreed upon
between the officers, employees, or agents and Bank, such sum or sums of money
as in their judgment should be borrowed, without limitation, including such sums
as are specified in that certain Loan and Security Agreement between Bank and
the Corporation (the "Loan Agreement").

     Execute Loan Documents. To execute and deliver to Bank the Loan Agreement and any other agreement entered into between Borrower and Bank in connection with the Loan
Agreement, all as amended or extended from time to time (collectively, with the Loan Agreement, the  Loan Documents ), and also to execute and deliver to Bank one or more renewals, extensions, modifications,
refinancings, consolidations, or substitutions for the Loan Documents, or any portion thereof.

     Grant Security. To grant a security interest to Bank in the Collateral described in the Loan Documents, which security interest shall secure all of the Corporation s
Obligations, as described in the Loan Documents.

     Negotiate Items. To draw, endorse, and discount with Bank all drafts, trade acceptances, promissory notes, or other evidences of indebtedness payable to or belonging to the
Corporation or in which the Corporation may have an interest, and either to receive cash for the same or to cause such proceeds to be credited to the account of the Corporation with Bank, or to cause such other disposition of the proceeds derived
therefrom as they may deem advisable.

     Letters of Credit; Foreign Exchange. To execute letters of credit applications, foreign exchange agreements and other related documents pertaining to Bank s issuance of
letters of credit and foreign exchange contracts.

     Further Acts. In the case of lines of credit, to designate additional or alternate individuals as being authorized to request advances
thereunder, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute and deliver such other documents and agreements as they may in their discretion deem reasonably necessary or proper in order to
carry into effect the provisions of these Resolutions.

     BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, that these Resolutions
shall remain in full force and effect and Bank
   

18

    

may rely on these Resolutions until written notice of their revocation shall have been delivered to and received by Bank.  Any such notice shall not affect any of the Corporation s agreements or commitments in effect at the time notice is given
 .

     I FURTHER CERTIFY that the officers, employees, and agents named above are duly elected, appointed, or employed by or for the Corporation, as the case may be, and occupy the positions set forth opposite their
respective names; that the foregoing Resolutions now stand of record on the books of the Corporation; and that the Resolutions are in full force and effect and have not been modified or revoked in any manner whatsoever.

     IN WITNESS WHEREOF, I have hereunto set my hand on May 2, 2000 and attest that the signatures set opposite the names listed above are their genuine signatures.

 

		CERTIFIED AND ATTESTED BY:
		 
		X
			

		 

19<PAGE>
                                                                     EXHIBIT 4.2

                                 SITESMITH, INC.

                              AMENDED AND RESTATED

                           INVESTORS' RIGHTS AGREEMENT

                                JULY 20, 2000

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                          PAGE

<S>     <C>                                                                                <C>
A.      Amendment and Restatement of Prior Rights Agreement; Waiver of Right of First Offer..1

1.      Registration Rights..................................................................2

        1.1    Definitions...................................................................2
        1.2    Request for Registration......................................................3
        1.3    Company Registration..........................................................4
        1.4    Form S-3 Registration.........................................................5
        1.5    Obligations of the Company....................................................6
        1.6    Furnish Information...........................................................7
        1.7    Expenses of Registration......................................................7
        1.8    Underwriting Requirements.....................................................8
        1.9    Delay of Registration.........................................................9
        1.10   Indemnification...............................................................9
        1.11   Reports Under Securities Exchange Act of 1934................................11
        1.12   Restrictions of Transfer; Assignment of Registration Rights..................12
        1.13   Limitations on Subsequent Registration Rights................................12
        1.14   Market Stand-Off Agreement...................................................12
        1.15   Termination of Registration Rights...........................................13

2.      Covenants of the Company............................................................13

        2.1    Delivery of Financial Statements.............................................13
        2.2    Inspection...................................................................14
        2.3    Right of First Offer.........................................................14
        2.4    Key Man Life Insurance.......................................................15
        2.5    IPO Allocation...............................................................16
        2.6    Board of Directors Matters...................................................16
        2.7    Proprietary Information Agreements...........................................16
        2.8    Termination of Covenants.....................................................16

3.      Miscellaneous.......................................................................16

        3.1    Successors and Assigns.......................................................16
        3.2    Amendments and Waivers.......................................................17
        3.3    Notices......................................................................17
        3.4    Severability.................................................................17
        3.5    Governing Law................................................................17
        3.6    Counterparts.................................................................17
        3.7    Titles and Subtitles.........................................................17
        3.8    Aggregation of Stock.........................................................17
</TABLE>

                                       i
<PAGE>

                                 SITESMITH, INC.
                              AMENDED AND RESTATED
                           INVESTORS' RIGHTS AGREEMENT

     This Amended and Restated Investors' Rights Agreement (the "AGREEMENT") is
made as of the 20th day of July, 2000, by and among SiteSmith, Inc., a Delaware
corporation (the "COMPANY"), the holders of the Company's Series A Preferred
Stock listed on EXHIBIT A hereto (the "Series A Holders"), the holders of Series
B Preferred Stock listed on EXHIBIT B hereto (the "Series B Holders"), and the
holders of Series C Preferred Stock listed on EXHIBIT C hereto (the "Series C
Holders"), each of which is herein referred to as an "INVESTOR," and the
individuals listed on EXHIBIT D hereto, each of whom is herein referred to as a
"FOUNDER".

                                    RECITALS

     A. The Company, the Founders, the Series A Holders and the Series B Holders
have previously entered into an Investors' Rights Agreement dated as of January
13, 2000 (the "PRIOR RIGHTS AGREEMENT"), pursuant to which the Company granted
the Founders and the Series A Holders and the Series B Holders certain rights.

     B. The Company and the Investors have entered into a Series C Preferred
Stock Purchase Agreement (the "PURCHASE AGREEMENT") of even date herewith
pursuant to which the Company desires to sell to the Investors and the Investors
desire to purchase from the Company shares of the Company's Series C Preferred
Stock. A condition to the Investors' obligations under the Purchase Agreement is
that the Company, the Founders and the Investors enter into this Agreement in
order to provide the Investors with (i) certain rights to register shares of the
Company's Common Stock issuable upon conversion of the Series C Preferred Stock
held by the Investors, (ii) certain rights to receive or inspect information
pertaining to the Company, and (iii) a right of first offer with respect to
certain issuances by the Company of its securities. The Company, the Investors
and the Founders each desire to induce the Investors to purchase shares of
Series C Preferred Stock pursuant to the Purchase Agreement by agreeing to the
terms and conditions set forth herein.

     C. The Company, the Founders, the Series A Holders, and the Series B
Holders each desire to amend and restate the Prior Rights Agreement to add the
Series C Holders as parties to this Agreement and make certain other changes.

                                    AGREEMENT

     The parties hereby agree as follows:

     A. AMENDMENT AND RESTATEMENT OF PRIOR RIGHTS AGREEMENT; WAIVER OF RIGHT OF
FIRST OFFER. Effective and contingent upon execution of this Agreement by the
Company, the holders of a majority of the Registrable Securities held by the
Series A Holders and Series B Holders, as that term is defined in the Prior
Rights Agreement, not including the Founders Stock, as that term is defined in
the Prior Rights Agreement, and upon closing of the transactions

<PAGE>

contemplated by the Purchase Agreement, the Prior Rights Agreement is hereby
amended and restated in its entirety to read as set forth in this Agreement, and
the Company, the Founders, and the Investors hereby agree to be bound by the
provisions hereof as the sole agreement of the Company, the Founders, and the
Investors with respect to registration rights of the Company's securities and
certain other rights, as set forth herein. To the extent that the Series A
Holders and Series B Holders have not purchased the full amount of shares of
Series C Preferred Stock that they were entitled to receive pursuant to Section
2.3 of the Prior Rights Agreement, they hereby waive the Right of First Offer,
including the notice requirements, set forth in the Prior Rights Agreement with
respect to the issuance of Series C Preferred Stock.

     1. REGISTRATION RIGHTS. The Company and the Investors covenant and agree as
follows:

          1.1 DEFINITIONS. For purposes of this Section 1:

               (a) The terms "REGISTER," "REGISTERED," and "REGISTRATION" refer
to a registration effected by preparing and filing a registration statement or
similar document in compliance with the Securities Act of 1933, as amended (the
"SECURITIES ACT"), and the declaration or ordering of effectiveness of such
registration statement or document;

               (b) The term "REGISTRABLE SECURITIES" means (i) Series A
Preferred Stock, Series B Preferred Stock and Series C Preferred Stock (together
the "Preferred Stock") or the shares of Common Stock issuable or issued upon
conversion of the Preferred Stock and (ii) the shares of Common Stock issued to
the Founders (the "FOUNDERS' STOCK"), PROVIDED, HOWEVER, that for the purposes
of Section 1.2, 1.4 or 1.13 the Founders' Stock shall not be deemed Registrable
Securities and the Founders shall not be deemed Holders, and (iii) any other
shares of Common Stock of the Company issued as (or issuable upon the conversion
or exercise of any warrant, right or other security which is issued as) a
dividend or other distribution with respect to, or in exchange for or in
replacement of, the shares listed in (i) and (ii); PROVIDED, HOWEVER, that the
foregoing definition shall exclude in all cases any Registrable Securities sold
by a person in a transaction in which his or her rights under this Agreement are
not assigned. Notwithstanding the foregoing, Common Stock or other securities
shall only be treated as Registrable Securities if and so long as they have not
been (A) sold to or through a broker or dealer or underwriter in a public
distribution or a public securities transaction, or (B) sold in a transaction
exempt from the registration and prospectus delivery requirements of the
Securities Act under Section 4(1) thereof so that all transfer restrictions, and
restrictive legends with respect thereto, if any, are removed upon the
consummation of such sale;

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

               (d) The term "HOLDER" means any person owning or having the right
to acquire Registrable Securities or any assignee thereof in accordance with
Section 1.12 of this Agreement;

                                      -2-
<PAGE>

               (e) The term "FORM S-3" means such form under the Securities Act
as in effect on the date hereof or any successor form under the Securities Act
that permits significant incorporation by reference of the Company's subsequent
public filings under the Securities Exchange Act of 1934;

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

               (g) The term "QUALIFIED IPO" means a firm commitment underwritten
public offering by the Company of shares of its Common Stock pursuant to a
registration statement on Form S-1 under the Securities Act, the public offering
price of which is not less than $11.30 per share (appropriately adjusted for any
stock split, dividend, combination or other recapitalization) and which results
in aggregate net proceeds of $35,000,000.

          1.2 REQUEST FOR REGISTRATION.

               (a) If the Company shall receive at any time after the earlier of
(i) July __, 2004, or (ii) six (6) months after the effective date of the first
registration statement for a public offering of securities of the Company (other
than a registration statement relating either to the sale of securities to
employees of the Company pursuant to a stock option, stock purchase or similar
plan or an SEC Rule 145 transaction), a written request from the Holders of
least twenty percent (20%) of the Registrable Securities then outstanding that
the Company file a registration statement under the Securities Act covering the
registration of Registrable Securities with an anticipated aggregate offering
price of at least $5,000,000, then the Company shall, within ten (10) days of
the receipt thereof, give written notice of such request to all Holders and
shall, subject to the limitations of subsection 1.2(b), use its best efforts to
effect as soon as practicable, and in any event within 60 days of the receipt of
such request, the registration under the Securities Act of all Registrable
Securities which the Holders request to be registered within twenty (20) days of
the mailing of such notice by the Company in accordance with Section 3.3.

               (b) If the Holders initiating the registration request hereunder
("INITIATING HOLDERS") intend to distribute the Registrable Securities covered
by their request by means of an underwriting, they shall so advise the Company
as a part of their request made pursuant to this Section 1.2 and the Company
shall include such information in the written notice referred to in subsection
1.2(a). The underwriter will be selected by a majority in interest of the
Initiating Holders and shall be reasonably acceptable to the Company. In such
event, the right of any Holder to include his Registrable Securities in such
registration shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable Securities in the
underwriting (unless otherwise mutually agreed by a majority in interest of the
Initiating Holders and such Holder) to the extent provided herein. All Holders
proposing to distribute their securities through such underwriting shall
(together with the Company as provided in subsection 1.5(e)) enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting. Notwithstanding any other provision of this
Section 1.2, if the underwriter advises the Initiating Holders in writing that
marketing factors require a limitation of the number of shares to be
underwritten, then the Initiating Holders shall so advise all Holders of
Registrable Securities which would otherwise be underwritten

                                      -3-
<PAGE>

pursuant hereto, and the number of shares of Registrable Securities that may be
included in the underwriting shall be allocated among all Holders thereof,
including the Initiating Holders, in proportion (as nearly as practicable) to
the amount of Registrable Securities of the Company owned by each Holder;
PROVIDED, HOWEVER, that the number of shares of Registrable Securities to be
included in such underwriting shall not be reduced unless all other securities
are first entirely excluded from the underwriting.

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

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

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

                    (ii) During the period starting with the date sixty (60)
days prior to the Company's good faith estimate of the date of filing of, and
ending on a date one hundred eighty (180) days after the effective date of, a
registration subject to Section 1.3 hereof; provided that the Company is
actively employing in good faith all reasonable efforts to cause such
registration statement to become effective; or

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

          1.3 COMPANY REGISTRATION. If (but without any obligation to do so) the
Company proposes to register (including for this purpose a registration effected
by the Company for stockholders other than the Holders) any of its stock under
the Securities Act in connection with the public offering of such securities
solely for cash (other than a registration relating solely to the sale of
securities to participants in a Company stock plan or a transaction covered by
Rule 145 under the Securities Act, a registration in which the only stock being
registered is Common Stock issuable upon conversion of debt securities which are
also being registered, or any registration on any form which does not include
substantially the same information as would be required to be included in a
registration statement covering the sale of the Registrable Securities), the
Company shall, at such time, promptly give each Holder written notice of such
registration. Upon the written request of each Holder given within twenty (20)
days after mailing of such notice by the Company in accordance with Section 3.3,
the Company shall, subject to the provisions of Section 1.8, cause to be
registered under the Securities Act all of the Registrable Securities that each
such Holder has requested to be registered.

                                      -4-
<PAGE>

          1.4 FORM S-3 REGISTRATION. Following its initial public offering of
securities under the Securities Act, the Company shall use its best efforts to
qualify for registration on Form S-3 or any comparable or successor form. In
case the Company shall receive from any Holder or Holders of not less than ten
percent (10%) of the Registrable Securities then outstanding a written request
or requests that the Company effect a registration on Form S-3 and any related
qualification or compliance with respect to all or a part of the Registrable
Securities owned by such Holder or Holders, the Company will:

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

               (b) as soon as practicable, effect such registration and all such
qualifications and compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Holder's or
Holders' Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any other Holder or Holders
joining in such request as are specified in a written request given within 15
days after receipt of such written notice from the Company; PROVIDED, HOWEVER,
that the Company shall not be obligated to effect any such registration,
qualification or compliance, pursuant to this Section 1.4: (i) if Form S-3 is
not available for such offering by the Holders; (ii) if the Holders, together
with the holders of any other securities of the Company entitled to inclusion in
such registration, propose to sell Registrable Securities and such other
securities (if any) at an aggregate price to the public (net of any
underwriters' discounts or commissions) of less than $1,000,000; (iii) if the
Company shall furnish to the Holders a certificate signed by the President of
the Company stating that in the good faith judgment of the Board of Directors of
the Company, it would be seriously detrimental to the Company and its
stockholders for such Form S-3 Registration to be effected at such time, in
which event the Company shall have the right to defer the filing of the Form S-3
registration statement for a period of not more than 90 days after receipt of
the request of the Holder or Holders under this Section 1.4; PROVIDED, HOWEVER,
that the Company shall not utilize this right more than once in any twelve month
period; (iv) if the Company has, within the twenty-four (24) month period
preceding the date of such request, already effected two registrations on Form
S-3 for the Holders pursuant to this Section 1.4; (v) in any particular
jurisdiction in which the Company would be required to qualify to do business or
to execute a general consent to service of process in effecting such
registration, qualification or compliance unless the Company is already subject
to service of process in any such jurisdiction; or (vi) during the period ending
one hundred eighty (180) days after the effective date of a registration
statement subject to Section 1.3.

               (c) Subject to the foregoing, the Company shall file a
registration statement covering the Registrable Securities and other securities
so requested to be registered as soon as practicable after receipt of the
request or requests of the Holders. Registrations effected pursuant to this
Section 1.4 shall not be counted as demands for registration or registrations
effected pursuant to Sections 1.2 or 1.3, respectively.

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

                                      -5-
<PAGE>

               (a) Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its best efforts to cause such
registration statement to become effective, and, upon the request of the Holders
of a majority of the Registrable Securities registered thereunder, keep such
registration statement effective for up to one hundred twenty (120) days. The
Company shall not be required to file, cause to become effective or maintain the
effectiveness of any registration statement that contemplates a distribution of
securities on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act.

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

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

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

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

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

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

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

                                      -6-
<PAGE>

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

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

          1.7 EXPENSES OF REGISTRATION.

               (a) DEMAND REGISTRATION. All expenses other than underwriting
discounts and commissions incurred in connection with registrations, filings or
qualifications pursuant to Section 1.2, including (without limitation) all
registration, filing and qualification fees, printers' and accounting fees, fees
and disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel for the selling Holders selected by them with the
approval of the Company, which approval shall not be unreasonably withheld,
shall be borne by the Company; PROVIDED, HOWEVER, that the Company shall not be
required to pay for any expenses of any registration proceeding begun pursuant
to Section 1.2 if the registration request is subsequently withdrawn at the
request of the Holders of a majority of the Registrable Securities to be
registered (in which case all participating Holders shall bear such expenses),
unless the Holders of a majority of the Registrable Securities agree to forfeit
their right to one of the demand registrations available under Section 1.2;
provided further, however, that if at the time of such withdrawal, the Holders
have learned of a material adverse change in the condition, business, or
prospects of the Company from that known to the Holders at the time of their
request and have withdrawn the request with reasonable promptness following
disclosure by the Company of such material adverse change, then the Holders
shall not be required to pay any of such expenses and shall not forfeit any
rights under Section 1.2.

                                      -7-
<PAGE>

               (b) COMPANY REGISTRATION. All expenses other than underwriting
discounts and commissions incurred in connection with registrations, filings or
qualifications of Registrable Securities pursuant to Section 1.3 for each
Holder, including (without limitation) all registration, filing, and
qualification fees, printers' and accounting fees, fees and disbursements of
counsel for the Company and the reasonable fees and disbursements of one counsel
for the selling Holder or Holders selected by them with the approval of the
Company, which approval shall not be unreasonably withheld, shall be borne by
the Company.

               (c) REGISTRATION ON FORM S-3. All expenses other than
underwriting discounts and commissions incurred in connection with a
registration requested pursuant to Section 1.4, including (without limitation)
all registration, filing, qualification, printers' and accounting fees and the
reasonable fees and disbursements of one counsel for the selling Holder or
Holders selected by them with the approval of the Company, which approval shall
not be unreasonably withheld, and counsel for the Company shall be borne by the
Company.

          1.8 UNDERWRITING REQUIREMENTS. In connection with any offering
involving an underwriting of shares of the Company's capital stock, the Company
shall not be required under Section 1.3 to include any of the Holders'
securities in such underwriting unless they accept the terms of the underwriting
as agreed upon between the Company and the underwriters selected by it (or by
other persons entitled to select the underwriters), and then only in such
quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If the total amount of
securities, including Registrable Securities, requested by stockholders to be
included in such offering exceeds the amount of securities sold other than by
the Company that the underwriters determine in their sole discretion is
compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including
Registrable Securities, which the underwriters determine in their sole
discretion will not jeopardize the success of the offering (the securities so
included to be apportioned pro rata among the selling stockholders according to
the total amount of securities entitled to be included therein owned by each
selling stockholder or in such other proportions as shall mutually be agreed to
by such selling stockholders) but in no event shall (i) the amount of securities
of the selling Holders included in the offering be reduced below thirty percent
(30%) of the total amount of securities included in such offering, unless such
offering is a Qualified IPO of the Company's securities, in which case, the
selling stockholders (including the selling Holders) may be excluded if the
underwriters make the determination described above and no other stockholder's
securities are included or (ii) any securities held by a Founder or any other
stockholder be included if any securities held by any selling Holder are
excluded. For purposes of the preceding parenthetical concerning apportionment,
for any selling stockholder which is a holder of Registrable Securities and
which is a partnership or corporation, the partners, retired partners and
stockholders of such holder, or the estates and family members of any such
partners and retired partners and any trusts for the benefit of any of the
foregoing persons shall be deemed to be a single "SELLING STOCKHOLDER," and any
pro-rata reduction with respect to such "selling stockholder" shall be based
upon the aggregate amount of shares carrying registration rights owned by all
entities and individuals included in such "selling stockholder," as defined in
this sentence.

                                      -8-
<PAGE>

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

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

               (a) To the extent permitted by law, the Company will indemnify
and hold harmless each Holder, its officers, directors, controlling
shareholders, partners, any underwriter (as defined in the Securities Act) for
such Holder and each person, if any, who controls such Holder or underwriter
within the meaning of the Securities Act or the Securities Exchange Act of 1934,
as amended (the "EXCHANGE ACT"), against any losses, claims, damages, or
liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such
losses, claims, damages, or liabilities (or actions in respect thereof) arise
out of or are based upon any of the following statements, omissions or
violations (collectively a "VIOLATION"): (i) any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state
securities law or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities law; and the Company will pay to each
such Holder, its officers, directors, controlling shareholders, partners, each
underwriter or controlling person, as incurred, any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability, or action; PROVIDED, HOWEVER, that the
indemnity agreement contained in this subsection 1.10(a) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability, or action
if such settlement is effected without the consent of the Company (which consent
shall not be unreasonably withheld), nor shall the Company be liable to any
Holder, any of its officer, directors, controlling shareholders, partners, any
underwriter or controlling person for any such loss, claim, damage, liability,
or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by any such Holder, any
such officer, director, controlling shareholder, partner, or any such
underwriter or controlling person.

               (b) To the extent permitted by law, each selling Holder will
indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the Securities Act, any underwriter,
any other Holder selling securities in such registration statement and any
controlling person of any such underwriter or other Holder, against any losses,
claims, damages, or liabilities (joint or several) to which any of the foregoing
persons may become subject, under the Securities Act, the Exchange Act or other
federal or state law, insofar as such losses, claims, damages, or liabilities
(or actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs in

                                      -9-
<PAGE>

reliance upon and in conformity with written information furnished by such
Holder expressly for use in connection with such registration; and each such
Holder will pay, as incurred, any legal or other expenses reasonably incurred by
any person intended to be indemnified pursuant to this subsection 1.10(b), in
connection with investigating or defending any such loss, claim, damage,
liability, or action; PROVIDED, HOWEVER, that the indemnity agreement contained
in this subsection 1.10(b) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder, which consent shall not be unreasonably
withheld; PROVIDED, that in no event shall any indemnity under this subsection
1.10(b) exceed the net proceeds from the offering received by such Holder,
except in the case of willful fraud by such Holder.

               (c) Promptly after receipt by an indemnified party under this
Section 1.10 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 1.10, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; PROVIDED, HOWEVER, that an indemnified party
(together with all other indemnified parties which may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the reasonable fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
1.10, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 1.10.

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

                                      -10-
<PAGE>

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

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

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

               (a) make and keep public information available, as those terms
are understood and defined in SEC Rule 144, at all times after ninety (90) days
after the effective date of the first registration statement filed by the
Company for the offering of its securities to the general public so long as the
Company remains subject to the periodic reporting requirements under Sections 13
or 15(d) of the Exchange Act;

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

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

               (d) furnish to any Holder, so long as the Holder owns any
Registrable Securities, forthwith upon request (i) a written statement by the
Company that it has complied with the reporting requirements of SEC Rule 144 (at
any time after ninety (90) days after the effective date of the first
registration statement filed by the Company), the Securities Act and the
Exchange Act (at any time after it has become subject to such reporting
requirements), or that it qualifies as a registrant whose securities may be
resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of
the most recent annual or quarterly report of the Company and such other reports
and documents so filed by the Company, and (iii) such other information as may
be reasonably requested in availing any Holder of any rule or regulation of the
SEC which permits the selling of any such securities without registration or
pursuant to such form.

          1.12 RESTRICTIONS OF TRANSFER; ASSIGNMENT OF REGISTRATION RIGHTS. No
Holder may transfer any Registrable Securities without prior written consent of
the Company, which consent shall not be unreasonably withheld; provided that
such restriction on transfer does not apply to transfers by Major Investors or
to affiliates or upon liquidation of an investment partnership. The rights to
cause the Company to register Registrable Securities pursuant to this

                                      -11-
<PAGE>

Section 1 may be assigned (but only with all related obligations) by a Holder to
a transferee or assignee of at least 100,000 shares of such securities, PROVIDED
the Company is, within a reasonable time after such transfer, furnished with
written notice of the name and address of such transferee or assignee and the
securities with respect to which such registration rights are being assigned;
and PROVIDED, FURTHER, that such assignment shall be effective only if
immediately following such transfer the further disposition of such securities
by the transferee or assignee is restricted under the Securities Act. For the
purposes of determining the number of shares of Registrable Securities held by a
transferee or assignee, the holdings of transferees and assignees of a
partnership who are partners or retired partners of such partnership (including
spouses and ancestors, lineal descendants and siblings of such partners or
spouses who acquire Registrable Securities by gift, will or intestate
succession) or by Affiliates, as defined in Regulation D of the Securities Act
shall be aggregated together and with the partnership; provided that all
assignees and transferees who would not qualify individually for assignment of
registration rights shall have a single attorney-in-fact for the purpose of
exercising any rights, receiving notices or taking any action under Section 1.

          1.13 LIMITATIONS ON SUBSEQUENT REGISTRATION RIGHTS. From and after the
date of this Agreement, the Company shall not, without the prior written consent
of the Holders of a majority of the outstanding Registrable Securities, enter
into any agreement with any holder or prospective holder of any securities of
the Company which would allow such holder or prospective holder (a) to include
such securities in any registration filed under Sections 1.2 or 1.3 hereof,
unless under the terms of such agreement, such holder or prospective holder may
include such securities in any such registration only to the extent that the
inclusion of his securities will not reduce the amount of the Registrable
Securities of the Holders which is included or (b) to make a demand registration
which could result in such registration statement being declared effective prior
to the earlier of either of the dates set forth in subsection 1.2(a) or within
one hundred twenty (120) days of the effective date of any registration effected
pursuant to Section 1.2.

          1.14 "MARKET STAND-OFF" AGREEMENT.

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

               (b) LIMITATIONS. The obligations described in Section 1.14(a)
shall apply only if all officers, directors, and 1% shareholders of the Company
have entered into identical agreements, and such agreement includes a provision
which provides the Series C Preferred Stock holders will be treated on pari
passu basis as all other parties to such agreement in the event of any early
releases or terminations of any such agreement, and shall not apply to a

                                      -12-
<PAGE>

registration relating solely to employee benefit plans, or to a registration
relating solely to a transaction pursuant to Rule 145 under the Securities Act.

               (c) STOP-TRANSFER INSTRUCTIONS. In order to enforce the foregoing
covenants, the Company may impose stop-transfer instructions with respect to the
securities of each Holder (and the securities of every other person subject to
the restrictions in Section 1.14(a)).

               (d) TRANSFEREES BOUND. Each Holder agrees that prior to the
Company's initial public offering it will not transfer securities of the Company
unless each transferee agrees in writing to be bound by all of the provisions of
this Section 1.14 , PROVIDED that this Section 1.14(d) shall not apply to
transfers pursuant to a registration statement or transfers after the
twelve-month anniversary of the effective date of the Company's initial
registration statement subject to this Section 1.14.

          1.15 TERMINATION OF REGISTRATION RIGHTS. No Holder shall be entitled
to exercise any right provided for in this Section 1 after the earlier of (i)
five (5) years following the consummation of a Qualified IPO, or (ii) such time
as Rule 144 or another similar exemption under the Securities Act is available
for the sale of all of such Holder's shares during a three (3)-month period
without registration.

     2. COVENANTS OF THE COMPANY.

          2.1 DELIVERY OF FINANCIAL STATEMENTS. The Company shall deliver to
each Holder of at least 500,000 shares of Registrable Securities (other than a
Holder reasonably deemed by the Company to be a competitor of the Company):

               (a) as soon as practicable after the end of each fiscal year of
the Company, and in any event within 90 days thereafter, a balance sheet of the
Company, as at the end of such fiscal year, and a statement of income and a
statement of case flows of the Company, for such year, all prepared in
accordance with generally accepted accounting principles consistently applied
and setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail. Such financial statements will be
accompanied by a report and opinion thereon by a "Big 5" independent public
accountant selected by the Company's Board of Directors.

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

               (c) as soon as practicable, but in any event thirty (30) days
prior to the end of each fiscal year, an annual budget and business plan for the
next fiscal year, prepared on a

                                      -13-
<PAGE>

monthly basis, which includes both operational and strategic plans, and, as soon
as prepared, any other budgets or revised budgets prepared by the Company.

          2.2 INSPECTION. The Company shall permit each Holder of at least
500,000 shares of Registrable Securities (except for a Holder reasonably deemed
by the Company to be a competitor of the Company), at such Holder's expense, to
visit and inspect the Company's properties, to examine its books of account and
records and to discuss the Company's affairs, finances and accounts with its
officers, all at such reasonable times as may be requested by the Investor;
PROVIDED, HOWEVER, that the Company shall not be obligated pursuant to this
Section 2.2 to provide access to any information which it reasonably considers
to be a trade secret or similar confidential information.

          2.3 RIGHT OF FIRST OFFER. Subject to the terms and conditions
specified in this Section 2.3, the Company hereby grants to each Major Investor
(as hereinafter defined) a right of first offer with respect to future sales by
the Company of its Shares (as hereinafter defined). For purposes of this Section
2.3, a "MAJOR INVESTOR" shall mean any person who together with its Affiliates
holds at least 500,000 shares of the Series A Preferred Stock and/or Series B
Preferred Stock and/or Series C Preferred Stock (or the Common Stock issued upon
conversion thereof). For purposes of this Section 2.3, Major Investor includes
any general partners and affiliates of a Major Investor. A Major Investor who
chooses to exercise the right of first offer may designate as purchasers under
such right itself or its partners or affiliates in such proportions as it deems
appropriate.

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

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

               (b) Within 15 calendar days after delivery of the Notice, the
Major Investor may elect to purchase or obtain, at the price and on the terms
specified in the Notice, up to the number of such Shares which equals the
proportion that the number of shares of Common Stock of the Company issued and
held, or issuable upon conversion and exercise of all convertible or exercisable
securities then held, by such Major Investor bears to the total number of shares
of Common Stock of the Company issued and held, or issuable upon conversion and
exercise of all convertible or exercisable securities then held by all Major
Investors. Such purchase shall be completed at the same closing as that of any
third party purchasers or at an additional closing thereunder as soon as
practicable.

               (c) The Company may, during the 45-day period following the
expiration of the period provided in subsection 2.3(b) hereof, offer the
remaining unsubscribed portion of the Shares to any person or persons at a price
not less than, and upon terms no more

                                      -14-
<PAGE>

favorable to the offeree than those specified in the Notice. If the Company does
not enter into an agreement for the sale of the Shares within such period, or if
such agreement is not consummated within 60 days of the execution thereof, the
right provided hereunder shall be deemed to be revived and such Shares shall not
be offered unless first reoffered to the Major Investors in accordance herewith.

               (d) The right of first offer in this paragraph 2.3 shall not be
applicable (i) to the issuance or sale of up to 15,500,000 shares (or such
greater number as is unanimously approved by the Board of Directors) of Common
Stock (or options therefor) to employees, consultants and directors, pursuant to
plans or agreements approved by the Board of Directors for the primary purpose
of soliciting or retaining their services, (ii) to or after consummation of a
Qualified IPO, (iii) to the issuance of securities pursuant to the conversion or
exercise of convertible or exercisable securities, (iv) to the issuance of
securities in connection with a bona fide business acquisition of or by the
Company, whether by merger, consolidation, sale of assets, sale or exchange of
stock or otherwise, the terms of which are approved by the Board of Directors,
(v) to the issuance of securities to third party financial institutions or
lessors in connection with commercial credit arrangements, equipment financings,
or similar transactions which are approved by the Board of Directors the primary
purpose of which, in each case, is not equity financing, or (vi) to the issuance
or sale of the Series C Preferred Stock. In addition to the foregoing, the right
of first offer in this paragraph 2.3 shall not be applicable with respect to any
Major Investor and any subsequent securities issuance, if (i) at the time of
such subsequent securities issuance, the Major Investor is not an "accredited
investor," as that term is then defined in Rule 501(a) under the Securities Act
and such subsequent securities issuance is otherwise being offered only to
accredited investors, or (ii) such subsequent securities issuance if sold to a
Major Investor would violate the Securities Act of 1933 (as amended).

          2.4 KEY MAN LIFE INSURANCE. The Company will use its best efforts to
maintain term life insurance of at least $1.0 million on the life of the
Company's Chief Executive Officer, with the Company as the named beneficiary.
Such policy shall be renewable unless determined otherwise by the holders of at
least a majority of the Registrable Securities.

          2.5 IPO ALLOCATION. In the event of a bona fide, firm commitment
underwritten initial public offering of the capital stock of the Company (the
"IPO"), the Company shall, or shall require that the managing underwriters of
the IPO, establish a directed share program (the "Program") in connection with
the IPO. The Program shall consist of at least that number of shares of capital
stock (the "Program Shares") equal to two and one half percent (2.5%) of the
shares offered in the IPO (exclusive of shares subject to any overallotment
option on behalf of the underwriters). The Investors shall have the option, but
not the obligation, to direct the allocation of 2.5% of the Program Shares, or
to purchase all or any portion of the Program Shares at the initial price to
public set forth on the cover page of the final prospectus distributed in
connection with the IPO.

          2.6 BOARD OF DIRECTORS MATTERS. The Company will hold meetings of the
Board of Directors at 4-6 week intervals until the Board of Directors determines
otherwise. The Board of Directors shall approve capital expenditures of greater
than $50,000 in a single expenditure or in aggregate of $250,000 in a
twelve-month period. The Board shall establish

                                      -15-
<PAGE>

audit and compensation committees at an appropriate time after the Closing. The
Board shall have the right to advise and consent in any subsequent hiring of any
officers of the Company. Dell Ventures L.P., a Purchaser, shall enter into the
Company's standard Management Rights Letter, pursuant to which Dell will be
entitled to attend all Board meetings and, subject to confidentiality
requirements, receive all information and documentation provided to board
members.

          2.7 PROPRIETARY INFORMATION AGREEMENTS. The Company shall maintain a
policy of having each employee and consultant execute an Employee Proprietary
Information Agreement in substantially the form provided to the Purchasers, and
shall cause all current and future officers, employees and consultants to
execute such an agreement.

          2.8 TERMINATION OF COVENANTS.

               (a) The covenants set forth in Sections 2.1 through 2.4 and
Section 2.6 shall terminate as to each Holder and be of no further force or
effect immediately prior to the consummation of a Qualified IPO.

               (b) The covenants set forth in Sections 2.1 and 2.2 shall
terminate as to each Holder and be of no further force or effect when the
Company first becomes subject to the periodic reporting requirements of Sections
13 or 15(d) of the Exchange Act, if this occurs earlier than the events
described in Section 2.8(a) above.

     3. MISCELLANEOUS.

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

          3.2 AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended
or waived only with the written consent of the Company and the holders of a
majority of the Registrable Securities then outstanding, not including the
Founders' Stock; provided that if such amendment has the effect of affecting the
Founders' Stock (i) in a manner different than securities issued to the
Investors and (ii) in a manner adverse to the interests of the holders of the
Founders' Stock, then such amendment shall require the consent of the holder or
holders of a majority of the Founders' Stock. Notwithstanding the foregoing, any
amendment or waiver of this Section 3.2, and any amendment or waiver that is
proposed in circumstances other than in connection with an equity financing of
the Company, must also be approved by at least 66 2/3% of the Series C Holders.
Any amendment or waiver effected in accordance with this paragraph shall be
binding upon each party to the Agreement, whether or not such party has signed
such amendment or waiver, each future holder of all such Registrable Securities,
and the Company.

                                      -16-
<PAGE>

          3.3 NOTICES. Unless otherwise provided, any notice required or
permitted by this Agreement shall be in writing and shall be deemed sufficient
upon delivery, when delivered personally or by overnight courier or sent by
telegram or fax, or forty-eight (48) hours after being deposited in the U.S.
mail, as certified or registered mail, with postage prepaid, and addressed to
the party to be notified at such party's address or fax number as set forth on
EXHIBIT A hereto or as subsequently modified by written notice.

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

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

          3.6 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

          3.7 TITLES AND SUBTITLES. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

          3.8 AGGREGATION OF STOCK. All shares of the Preferred Stock held or
acquired by affiliated entities or persons shall be aggregated together for the
purpose of determining the availability of any rights under this Agreement.

                            [Signature Page Follows]

                                      -17-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Amended and
Restated Investors' Rights Agreement with the intent and agreement that the same
shall be effective as of the day and year first above written.

COMPANY:                            SITESMITH, INC.

                                    Address:  3283 Scott Blvd.
                                    Santa Clara, CA 95054

                                        /s/ Marv Tseu
                                    -------------------------------------------
                                    By:  Marv Tseu
                                    Title:  President

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                     INVESTORS:

                                     DELL VENTURES, L.P.

                                     By:  Dell Gen. P. Corp.
                                     Its:  General Partner

                                     By:     /s/ Jeffrey P. Krisel
                                        ---------------------------------------
                                     Name:
                                          -------------------------------------
                                     Title:  Director
                                           ------------------------------------

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      INVESTORS:

                                      COMMUNICATIONS VENTURES III, L.P.

                                      By:  Its General Partner, ComVen III, LLC

                                      By:    /s/ David P. Helfrich
                                         --------------------------------------

                                      Print Name: David P. Helfrich
                                      Title:  Member

                                      COMMUNICATIONS VENTURES III CEO &
                                      ENTREPRENEURS' FUND, L.P.

                                      By:  Its General Partner, ComVen III, LLC

                                      By:    /s/ David P. Helfrich
                                         --------------------------------------

                                      Print Name: David P. Helfrich
                                      Title:  Member

                                      COMVENTURES IV, L.P.

                                      By:  Its General Partner, ComVen IV, LLC

                                      By:    /s/ David P. Helfrich
                                         --------------------------------------

                                      Print Name: David P. Helfrich
                                      Title:  Member

                                      COMVENTURES IV CEO FUND, L.P.

                                      By:  Its General Partner, ComVen IV, LLC

                                      By:    /s/ David P. Helfrich
                                         --------------------------------------

                                      Print Name: David P. Helfrich
                                      Title:  Member

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      COMVENTURES IV ENTREPRENEURS' FUND, L.P.

                                      By:  Its General Partner, ComVen IV, LLC

                                      By:    /s/ David P. Helfrich
                                         --------------------------------------

                                      Print Name: David P. Helfrich
                                      Title:  Member

                                      Address:      505 Hamilton Avenue
                                                    Palo Alto, CA  94301
                                                    Attn:  Megan Mykytka

                                      Facsimile:
                                                -------------------------------

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      INVESTORS:

                                      BEDROCK CAPITAL PARTNERS I, L.P.

                                      By:  BEDROCK GENERAL PARTNER I, LLC

                                      By:    /s/ David Duval
                                         ---------------------------------------
                                      Print Name:
                                                 -------------------------------
                                      Title:  Managing Member

                                      VBW EMPLOYEE BEDROCK FUND, L.P.

                                      By:  BEDROCK GENERAL PARTNER I, LLC

                                      By:    /s/ David Duval
                                         ---------------------------------------
                                      Print Name:
                                                 -------------------------------
                                      Title:  Managing Member

                                      CREDIT SUISSE FIRST BOSTON BEDROCK FUND,
                                      L.P.

                                      By:  BEDROCK GENERAL PARTNER I, LLC
                                      Title:  Its Attorney in Fact

                                      By:    /s/ David Duval
                                         ---------------------------------------
                                      Print Name:
                                                 -------------------------------
                                      Title:  Managing Member

                                      Address:      One Boston Place, Ste. 3310
                                                    Boston, MA  02108
                                                    Attn:  Stacey Bauer

                                      Facsimile:
                                                --------------------------------

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      INVESTORS:

                                      WEISS, PECK & GREER VENTURE
                                      ASSOCIATES V, L.L.C.

                                      By: WPG VC Fund Adviser II, L.L.C., Fund
                                          Investment Advisory Member

                                      By:    /s/ Amal Johnson
                                         ---------------------------------------
                                             Amal M. Johnson, Managing Member

                                      WEISS, PECK & GREER VENTURE
                                      ASSOCIATES V-A, L.L.C.

                                      By: WPG VC Fund Adviser II, L.L.C., Fund
                                          Investment Advisory Member

                                      By:    /s/ Amal Johnson
                                         ---------------------------------------
                                             Amal M. Johnson, Managing Member

                                      WEISS, PECK & GREER VENTURE
                                      ASSOCIATES V CAYMAN, L.P.

                                      By: WPG VC Fund Adviser II, L.L.C., Fund
                                          Investment Advisory Partner

                                      By:    /s/ Amal Johnson
                                         ---------------------------------------
                                             Amal M. Johnson, Managing Member

                                      WPG INFORMATION SCIENCES ENTREPRENEUR
                                      FUND II, L.L.C.

                                      By: WPG VC Fund Adviser II, L.L.C., Fund
                                          Investment Advisory Member

                                      By:    /s/ Amal Johnson
                                         ---------------------------------------
                                             Amal M. Johnson, Managing Member

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      WPG INFORMATION SCIENCES ENTREPRENEUR
                                      FUND II-A, L.L.C.

                                      By: WPG VC Fund Adviser II, L.L.C., Fund
                                          Investment Advisory Member

                                      By:    /s/ Amal Johnson
                                         ---------------------------------------
                                             Amal M. Johnson, Managing Member

                                      Address: Amal M. Johnson
                                               Weiss, Peck & Greer, LLC
                                               555 California Street, Suite 3130
                                               San Francisco, CA  94104

                                               Facsimile:  (415) 989-5108

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      INVESTORS:

                                      HEIDRICK & STRUGGLES, INC.

                                      By:    /s/ Donald M. Kilinski
                                         ---------------------------------------
                                      Name:  Donald M. Kilinski
                                      Its:  Chief Financial Officer

                                      Address:  Sears Tower
                                                233 S. Wacker Drive, Suite 4200
                                                Chicago, IL  60606-6303

                                      Fax No.   (312) 496-1686

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      INVESTORS:

                                      COMDISCO, INC.

                                      By:    /s/ Comdisco, Inc.
                                         ---------------------------------------
                                      Name:
                                           -------------------------------------
                                      Its:
                                          --------------------------------------

                                      Address:  Attn: Venture Group
                                                6111 North River Road
                                                Rosemont, IL  60018

                                      Fax No.
                                             ------------------------

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      INVESTORS:
                                      /s/ Robert T. Thompson, Jr.
                                      ------------------------------------------
                                      Robert T. Thompson, Jr.

                                      Address:      4 Atherton Oaks Lane
                                                    Atherton, CA  94027

                                      Fax No.:  (650) 326-3785

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                      INVESTORS:

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

                                      Print Name:
                                                 -------------------------------
                                      Title:
                                            ------------------------------------

                                      Address:
                                              ---------------------------

                                              ---------------------------

                                SIGNATURE PAGE TO
                AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

<PAGE>

                                    EXHIBIT A

                                SERIES A HOLDERS

                                  NAME/ADDRESS

                            VBW Employee Bedrock Fund
                    Volpe Prown Whelan Asset Management, LLC
                                One Boston Place
                           Boston Massachusetts 02108

                     Credit Suisse First Boston Bedrock Fund
                    Volpe Prown Whelan Asset Management, LLC
                                One Boston Place
                           Boston Massachusetts 02108

                        Communications Ventures III, L.P.
                         505 Hamilton Avenue, Suite 305
                               Palo Alto, CA 94301

                        Communications Ventures III CEO &
                            Entrepreneur's Fund, L.P.
                         505 Hamilton Avenue, Suite 305
                               Palo Alto, CA 94301

                                  Dan Rasmussen
                              105 Forest Hill Drive
                               Los Gatos, CA 95032

                                   James McGee
                               3514 Beach Drive SW
                                Seattle, WA 98116

                                Stephen Kaminski
                              870 E. El Camino #122
                             Mountain View, CA 94040

                                 A. P. Robertson
                                 P. O. Box 17100
                               Stanford, CA 94309

                                  Paul Magliaro
                                   34 Rico Way
                             San Francisco, CA 94123

<PAGE>

                                  Todd Locicero
                                 343 Sweet Road
                                Alameda, CA 94502

                          Pensco Pension Services, Inc.
                         Custodian FBO Marvin Tseu, IRA
                                Attn: Bob Heflin
                               939 Chisholm Trail
                                 Galt, CA 95632

                                Daniel L. Eilers
                               1000 Madison Drive
                             Mountain View, CA 94040

                                  R. John Ryan
                               400 Old Coach Road
                             Scotts Valley, CA 95066

                                  Candy Freeman
                               19200 Baytree Lane
                                Sonoma, CA 95476

                                Jim Raftery, Jr.
                          4930 Fulton Street Apt. #104
                             San Francisco, CA 94121

                               James Raftery, Sr.
                                   P.O. Box 91
                               Thompson, CT 06277

                                   Bob Guthrie
                                2417 Jubilee Lane
                               San Jose, CA 95131

                                   Amelia Hart
                                 275 Termino Way
                              Long Beach, CA 90803

                                  Neal Dempsey
                                  Bay Partners
                        10600 N. De Anza Blvd. Suite 100
                            Cupertino, CA 95014-2076

                                  Brett Helsel

                                   Seattle, WA

                                 Jeffrey Hussey

                                   Seattle, WA

                              VLG Investments 1999
                               2800 Sand Hill Road
                              Menlo Park, CA 94025

<PAGE>

                                 Jeffrey Y. Suto
                              c/o Venture Law Group
                               2800 Sand Hill Road
                              Menlo Park, CA 94025

                                  David C. Lee
                              c/o Venture Law Group
                               2800 Sand Hill Road
                              Menlo Park, CA 94025

                               Richard G. Chisholm
                              c/o Venture Law Group
                               2800 Sand Hill Road
                              Menlo Park, CA 94025

                                    Perry Wu
                            Bedrock Capital Partners
                               One Maritime Plaza
                             San Francisco, CA 94111

<PAGE>

                                    EXHIBIT B

                                SERIES B HOLDERS

                                  NAME/ADDRESS

                         Bedrock Capital Partners I, LP
                          One Boston Place, Suite 3310
                           Boston Massachusetts 02108

                            VBW Employee Bedrock Fund
                          One Boston Place, Suite 3310
                           Boston Massachusetts 02108

                     Credit Suisse First Boston Bedrock Fund
                          One Boston Place, Suite 3310
                           Boston Massachusetts 02108

                        Communications Ventures III, L.P.
                         505 Hamilton Avenue, Suite 305
                               Palo Alto, CA 94301

                        Communications Ventures III CEO &
                            Entrepreneur's Fund, L.P.
                         505 Hamilton Avenue, Suite 305
                               Palo Alto, CA 94301

                    Weiss, Peck & Greer Venture Associates V,
                                     L.L.C.
                        555 California Street, Suite 3130
                             San Francisco, CA 94104

                           Weiss, Peck & Greer Venture Associates V-A,
                                     L.L.C.
                        555 California Street, Suite 3130
                             San Francisco, CA 94104

                    Wiess, Peck & Greer Venture Associates V
                                  Cayman, L.P.
                        555 California Street, Suite 3130
                             San Francisco, CA 94104

                                  Peter Ferris
                               1330 Benito Avenue
                                 Burlingame, CA

                                    Joe Haar
                               2206 Foxworthy Ave.
                               San Jose, CA 95124

<PAGE>

                                  Chris Coluzzi
                              347 west 57th apt#18E
                               New York, NY 10019

                                  Scott Santana
                             1275 Vicente Dr., #190
                               Sunnyvale, CA 94086

                                 Jonathan Seelig
                                     Akamai
                                Technology Square
                               Cambridge, MA 02139

                                David B. Callisch
                              827 Schoolhouse Road
                               San Jose, CA 95138

                                  John Boiardi
                               1261 Lakeside Drive
                                      #3196
                               Sunnyvale, CA 94086

                                 Scott Westlake
                                1575 Searles Ave
                               San Jose, CA 95125

                                 Thomas Wrigley
                                 302 Dunnlea Rd.
                          Fairfield, Connecticut 06430

                                  Steve Goldman
                               7505 92nd Avenue SE
                             Mercer Island, WA 98040

                                 Robert G. Gilde
                               15923 259th Ave SE
                               Issaquah, WA 98027

                                  Lloyd Taylor
                                 Keynote Systems
                                2855 Campus Drive
                               San Mateo, CA 94403

                                Jonathan Heiliger
                               2030 Cornell Street
                               Palo Alto, CA 94306

                                   Bill Miller
                                5150 Langdale Way
                           Colorado Springs, CO 80906

                                 Michael Sotnick
                                756 Garland Drive
                               Palo Alto, CA 94303

<PAGE>

                                   Jim Herman
                              6114 - 90th Avenue SE
                             Mercer Island, WA 98040

                                    Ron McCoy
                               3983 Gladney Drive
                               Doraville, GA 30340

                                    Jon Beck
                            1880 Jackson Street #605
                             San Francisco, CA 94109

                                  Beverly Brown
                              Exodus Communications
                           2831 Mission College Blvd.
                              Santa Clara, CA 95054

                             Christopher P.Marshall
                             6930 California Street
                             San Francisco, Ca 94121

                                Alexander Winske
                                  P.O. Box 651
                               Brookdale CA 95007

                   Douglas M. & Kathleen A. Stone 1990 Family
                                      Trust
                                   Doug Stone
                              2625 Stagecoach Road
                              Placerville, CA 95667

                                  Doron Meirom
                                  Radware Inc.
                                575 Corporate Dr.
                                Mahwah, NJ 07430

                                    Arie Ziv
                                 10 Almeria St.
                                Irvine, CA 92614

                                   Anil Kumar
                              21801 Mount Eden Road
                               Saratoga, CA 95070

<PAGE>

                                   Doug Hickey
                               744 Escalona Drive
                              Santa Cruz, CA 95060

                                  Darren Slaney
                              525 East 72nd Street
                                  Apartment 12E
                               New York, NY 10021

                                   Sonja Hoel
                               3555 Jackson St. #4
                             San Francisco, CA 94118

                                  Chris Arisian
                                127 Phelan Court
                              Santa Cruz, CA 95060

                                Paul C. Flanagan
                               71 Stoneybrook Road
                              Marshfield, MA 02050

                                    Selina Lo
                               165 Forest Ave. #4C
                               Palo Alto, CA 94301

                                   Janine Hogg
                               10270 Scenic Blvd.
                               Cupertino, CA 95014

                                 John Varughese
                                2839 Baker Street
                             San Francisco, CA 94123

                                   Joe Bransom
                            2124 Broadway, Apt. #177
                               New York, NY 10023

                                Robert J. Pommer
                             Universal Access, Inc.
                             100 N. Riverside Plaza
                                   Suite 2200
                                Chicago, IL 60606

                                Patrick C. Shutt
                             Universal Access, Inc.
                             100 N. Riverside Plaza
                                   Suite 2200
                                Chicago, IL 60606

<PAGE>

                                   Van Lanning
                                16925 NE 14th St.
                               Bellevue, WA 98008

                                 Tim G. Reynders
                              Exodus Communications
                           2831 Mission College Blvd.
                              Santa Clara, CA 95054

                                Peter E. Hilliard
                               1090 Laurie Avenue
                               San Jose, CA 95125

                   Marger, Johnson & McCollom, P.C. 401(k) PS
                                  Plan & Trust
                                  Jerry Marger
                              1711 N.W. Ashby Court
                               Portland, OR 97229

                                  Lynn Dwigins
                               1610 Lawrence Road
                               Danville, CA 94906

                                   James Blom
                            2831 Mission College Blvd
                              Santa Clara, CA 95054

                                  Ken Kannappan
                                 742 Ashby Drive
                               Palo Alto, CA 94301

<PAGE>

                                    EXHIBIT C

                               SERIES C INVESTORS
<TABLE>
<CAPTION>

                                                                            TOTAL
                  NAME/ADDRESS                        NO. OF SHARES       INVESTMENT

<S>                                                           <C>        <C>
Dell Ventures, L.P.                                           1,769,912  $10,000,002.80
Mail Stop 8066
One Dell Way
Round Rock, TX 78682

Bedrock Capital Partners I, LP                                  873,155   $4,933,325.75
One Boston Place, Suite 3310
Boston Massachusetts  02108

VBW Employee Bedrock Fund                                        30,462     $172,110.30
One Boston Place, Suite 3310
Boston Massachusetts  02108

Credit Suisse First Boston Bedrock Fund                          36,584     $206,699.60
One Boston Place, Suite 3310
Boston Massachusetts  02108

Communications Ventures III, L.P.                               421,408   $2,380,955.20
505 Hamilton Avenue, Suite 305
Palo Alto, CA  94301

Communications Ventures III CEO & Entrepreneurs'                 21,070     $119,045.50
Fund, L.P.
505 Hamilton Avenue, Suite 305
Palo Alto, CA  94301

ComVentures IV, L.P.                                            455,963   $2,576,190.95
505 Hamilton Avenue, Suite 305
Palo Alto, CA  94301

ComVentures IV CEO Fund, L.P.                                    35,304     $199,467.60
505 Hamilton Avenue, Suite 305
Palo Alto, CA  94301

Com Ventures IV Entrepreneurs' Fund, L.P.                         6,455      $36,470.75
505 Hamilton Avenue, Suite 305
Palo Alto, CA  94301

Weiss, Peck & Greer Venture Associates V, L.L.C.                625,407   $3,533,549.55
555 California Street, Suite 3130
San Francisco, CA  94104
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

<S>                                                               <C>        <C>
Weiss, Peck & Greer Venture Associates V-A,                       5,266      $29,752.90
L.L.C.
555 California Street, Suite 3130
San Francisco, CA  94104

Weiss, Peck & Greer Venture Associates V Cayman,                128,768     $727,539.20
L.P.
555 California Street, Suite 3130
San Francisco, CA  94104

WPG Information Sciences Entrepreneur Fund II,                    9,294      $52,511.10
L.L.C.
555 California Street, Suite 3130
San Francisco, CA  94104

WPG Information Sciences Entrepreneur Fund II-A,                  5,731      $32,380.15
L.L.C.
555 California Street, Suite 3130
San Francisco, CA  94104

Heidrick & Struggles, Inc.                                       75,000     $423,750.00
Attn: Donald M. Kilinski, CFO
Sears Tower
233 S. Wacker Drive, Suite 4200
Chicago, IL  60606-6303

Comdisco, Inc.                                                  176,991     $999,999.15

John T. Thompson, Jr.                                            36,000     $203,400.00
4 Atherton Oaks Lane
Atherton, CA  94027

TOTAL                                                         4,712,770  $26,627,150.50
</TABLE>

<PAGE>

                                    EXHIBIT D

                                    FOUNDERS

Marv Tseu

Robert Ryan

Dan Rasmussen

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]