Document:

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<TABLE>
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<S>                                                 <C>
CONFIDENTIAL TREATMENT                              **Confidential treatment has been
HAS BEEN REQUESTED FOR                              requested with respect to the
CERTAIN PORTIONS OF THIS                            information contained within the
DOCUMENT                                            "[**]" markings.  Such marked portions
                                                    have been omitted from this filing and
                                                    have been filed separately with the
                                                    Securities and Exchange Commission
</TABLE>

                                                                   EXHIBIT 10.31

                         WEBCOURIER PROVIDER AGREEMENT

This agreement (the "Agreement") is made and entered into as of October 25,
1999, between Microsoft Corporation ("Microsoft"), with offices at One Microsoft
Way, Redmond, WA 98052-6399 and Snowball.com d/b/a PowerStudents.com (the
"Company"), a Delaware corporation with offices at 250 Executive Park, Suite
4000, San Francisco, CA 94134. Microsoft and Company agree as follows:

Section 1.     Definitions

          "Company Logo" means the Company logo(s) and trademark(s) provided
to Microsoft for use in connection with the Service.

          "Copy" means a single email delivered to a specific Subscriber
consisting of a reproduction (in whole or in part) of, and/or hypertext link to,
a specific version of the Newsletter.

          "IPRs" means trade secrets, patents, copyrights, trademarks, service
marks, trade names, know-how, moral rights, rights of publicity and privacy, and
similar rights of any type under the laws of any governmental authority,
domestic or foreign, including all applications and registrations relating to
any of the foregoing.

          "Newsletter" means the publications to be provided by Company to
Microsoft, Copies of which will be distributed to Subscribers via the Service.

          "Registration Pages" means those web pages that are displayed to users
of the U.S. English language Hotmail service in a manner to permit such users to
register to receive the Copies and other third party content via the Service, to
be launched on or about October 31, 1999.

          "Service" means the WebCourier Service whereby a person registering or
registered for a U.S. English language Hotmail email account may also register
to receive generic third party content via the Hotmail service.

          "Subscriber" means a Hotmail account that has consented to receiving
the Newsletter.

Section 2.     Microsoft Obligations

          2.1  Service. Microsoft will provide Company with placement on the
               -------
Registration Page consisting of Company or Newsletter name (at Company option),
will link to the Company Logo and text description of the Newsletter. Company
will be accorded an "Anchor Provider" placement in the Teens/Young Adults
category ("Category"). Microsoft may modify the Registration Pages (including,
without limitation, Category names) from time to time, provided that Company
receives reasonably comparable placement on such revised pages as specified
herein.

          2.2  Providers.  The Newsletters of not more than one (1) "Premier
               ---------
Provider" and five (5) "Anchor Providers" may be referenced in the Category.
The "Premier Provider" will receive the most prominent placement in the Category
and each "Anchor Provider" will receive placement in descending order based upon
the level of compensation paid by such "Anchor Provider" to Microsoft to appear
in such category.

          2.3  Distribution.  Subject to paragraph 3.1, Microsoft will deliver
               ------------
Copies to Subscribers according to such schedules as mutually agreed upon by
Company and Microsoft.  Company may change the schedule pursuant to which the
Copies are distributed to Subscribers by giving Microsoft written notice of the
requested change at least fifteen (15) business days prior to the scheduled
change.  Company may not schedule Copies of more than one Newsletter to be
distributed in any twenty-four (24) hour period.

          2.4  Promotional Banners. Microsoft will provide Company with a
               -------------------
monthly credit of [**] promotional banners to be used in the Hotmail service.
Such promotional credits will be specified for use in particular months, and may
not be transferred to any other month or redeemed for cash. Unused promotional
banner credits will expire at the end of the month specified for use; however,
at Microsoft's discretion, unused promotional banners may be used in the month
following that for which the banners were not used. Company will create and
deliver to Microsoft all promotional banners for review at least ten (10) days
prior to the first run date for such banner as designated by Company. All
promotional

                                             **Confidential treatment has been
                                             requested with respect to the
                                             information contained within the
                                             "[**]" markings. Such marked
                                             portions have been omitted from
                                             this filing and have been filed
                                             separately with the Securities and
                                             Exchange Commission.

                                       1

<PAGE>

banners shall meet all specifications and submission requirements provided by
Microsoft, and will contain a link to such Hotmail URL as Microsoft may
designate.

     2.5       Hotmail Promotion. Microsoft will use reasonable efforts to
               -----------------
promote the Newsletter to new and current Hotmail users through Hotmail standard
promotional vehicles.

Section 3.     Company Obligations

     3.1       Delivery and Specifications.  Company will make the Newsletter
               ---------------------------
available to Microsoft at a specified URL and on a delivery schedule agreed upon
by the parties in writing. The Company Logo, Newsletter text description and the
Newsletters are all subject to specifications and submissions guidelines (as
applicable) established by Microsoft and set forth in Appendix A, as the same
may be modified from time to time by Microsoft upon notice. Company will deliver
the Company Logo and Newsletter text description to Microsoft in the manner
directed by Microsoft. Company acknowledges that time is of the essence in
providing the foregoing to Microsoft, and the Company's failure to meet the
foregoing timing requirements or any applicable specifications may delay or
prevent delivery of Copies hereunder.

     3.2       License. Company hereby grants Microsoft a world-wide, non-
               -------
exclusive, royalty-free license to:

               (a) reproduce, promote, market, distribute, display,
     transmit, download, upload and, only for the purpose of enabling
     distribution, transmission, downloading and uploading without substantive
     change, edit, modify and otherwise use the Newsletter as reasonably
     anticipated to fulfill Microsoft's obligations under this Agreement; and

               (b) reproduce, display, transmit and otherwise use the Company
     Logo and Newsletter text description in connection with (i) providing the
     Service and Newsletter to Subscribers, and (ii) marketing and promoting the
     Service and Newsletter, provided that (A) Microsoft will use the Company
     Logo only in the form provided by the Company and will not modify or alter
     the Company Logo and (B) Microsoft will cease any specified use of the
     Company Logo upon written notice of the Company. Microsoft acknowledges
     that the Company Logo is owned by the Company and will not attempt to
     register the Company Logo or take any other action that is inconsistent
     with Company's ownership. The use of the Company Logo hereunder will inure
     to the sole and exclusive benefit of the Company.

     3.3       Limitations.  The Newsletter may not contain, promote, market,
               -----------
advertise, distribute, offer to distribute, link (either directly or, if with
the knowledge of Company, indirectly) to or otherwise be related to content
that:

               (a) is inappropriate, obscene, defamatory, libelous, slanderous,
     profane, indecent or unlawful;

               (b) infringes or misappropriates third party IPRs;

               (c) constitutes "hate speech", whether directed at an individual
     or a group, and whether based upon the race, sex, creed, national origin,
     religious affiliation, sexual orientation or language of such individual or
     group;

               (d) promotes or contains viruses, worms, corrupted files, cracks
     or other materials that are intended to or may damage or render inoperable
     software, hardware or security measures of Microsoft, Subscribers or any
     third party;

               (e) facilitates or promotes gambling, or the sale or use of
     liquor, tobacco products or illicit drugs;

               (f) facilitates, promotes or forwards illegal contests, pyramid
     schemes or chain letters; or

               (g) otherwise restricts or inhibits any person's use or enjoyment
     of Hotmail or the Service.

                                       2
<PAGE>

The Newsletter may not contain, promote, market, advertise, distribute, or offer
to distribute competing e-mail or newsletter products whether offered by Company
or a third party (e.g., Lycos, Excite and other services designated by
Microsoft), except that Company may link or refer to the registration, contest
and promotional pages of Company or its affiliates. Microsoft may, but is under
no obligation to, review the Newsletter, and may refuse to host or make the
Newsletter available to Subscribers in whole or in part if Microsoft determines
that the Newsletter violates the foregoing limitations or such other reasonable
limitations as Microsoft may adopt from time to time.

     3.4       Subscriber Information.  All information regarding Subscribers
               ----------------------
collected through the Service constitutes Confidential Information (as that term
is used in Section 9) of Microsoft, and is subject to the confidentiality
requirements of Section 9.  Notwithstanding the foregoing, information obtained
by Company directly from Subscribers will not constitute Confidential
Information of Microsoft and may be used by Company from time to time; provided,
Company does not collect, use or disclose such information in any manner that
identifies the subject as a Subscriber or Hotmail customer.

     3.5       Changes to Newsletter. Company will provide Microsoft with thirty
               ---------------------
(30) days' prior written notice of any material change to the nature or intended
audience of any Newsletter. Microsoft will have the option to (a) permit Company
to remain in the Category, (b) place Company in a different category on the
Registration Pages, or (c) terminate this Agreement with respect to each
Newsletter for which such a change is anticipated or implemented upon written
notice. If Microsoft terminates the Agreement pursuant to this paragraph, within
thirty (30) days of the date of termination, Company will pay Microsoft [**] of
the pro rated Advance for the remainder of the original Term.

Section 4.     Consideration

     4.1       Advance. Company will prepay Microsoft an advance of the fees set
               -------
forth in paragraph 4.2 in an amount equal to [**] (the "Advance"). The Advance
is a non-refundable, guaranteed payment to Microsoft. The Advance will be
rendered to Microsoft in four (4) equal installments on a quarterly basis (i.e.,
every three (3) months during the Term). The first payment hereunder is due on
December 23, 1999. Microsoft will invoice Company for the three (3) remaining
payments approximately thirty (30) days prior to the beginning of each
subsequent quarter, and the Company will pay such invoiced amounts on or before
the first day of each such subsequent quarter.  Notwithstanding the foregoing,
upon termination or expiration of this Agreement, other than by Company pursuant
to paragraph 5.2 or Microsoft pursuant to paragraph 5.3, Company will
immediately pay Microsoft any amounts of the Advance not yet paid.

     4.2       Fee. As consideration for Microsoft distributing the Newsletters
               ---
to Subscribers, Company will pay Microsoft [**] per Copy distributed to
Subscribers ("Fee").

     4.3       Distribution Adjustment. On a quarterly basis (including, at the
               -----------------------
end of the Term), Microsoft will compare the number of Copies actually
distributed hereunder against the Advance paid for such quarter (or the Term).
If the fees incurred pursuant to paragraph 4.2 for the number of Copies actually
distributed during such quarter (or the Term) are greater than the portion of
the Advance paid for such quarter (or the Term), Microsoft will invoice Company
for the difference at the applicable rates noted in paragraph 4.2. If at the end
of the Term the fees (including the Advance) received by Microsoft hereunder
exceed the amount of the fees incurred by Company for distribution of Copies
hereunder, Microsoft will refund the difference to Company; except that in no
event will Microsoft be required to refund or otherwise return to Company any
portion of the Advance. Notwithstanding the foregoing, the maximum aggregate
Advance and Fee payments that Company may incur to Microsoft hereunder will be
[**]. Once and only if the foregoing payment cap is reached by Company, Company
will be relieved of paying any additional amounts pursuant to Section 4.2
hereunder; provided that, for the remainder of the Term, Company may not
increase the average number of Copies delivered by Microsoft to Subscribers
during the period preceding Company attaining such payment cap.

    4.4        Invoice and Payment. Within thirty (30) days after the date of an
               -------------------
invoice, Company will pay Microsoft all amounts owing pursuant to such invoice
in readily available funds. Amounts not paid when due under this Agreement will
accrue interest at a rate of [**], compounded on a monthly basis. Microsoft
reserves the right to immediately suspend distribution of the Newsletter if
Company fails to make timely payment of any amounts owing hereunder. All
payments of amounts owing to Microsoft will be made at the following location or
such other location designated by Microsoft in writing:

               Microsoft Corporation
               PO Box 7247 - 7123
               Philadelphia PA  19170-7123

     4.5       Reports. Microsoft will provide Company with monthly reports
               -------
setting forth the number of Subscribers receiving Copies and the total number of
Copies delivered per month.

     4.6       Taxes.  The fees, advances and other amounts owing to Microsoft
               -----
pursuant to this Agreement do not include taxes or other governmental fees.
Company will pay all taxes and other governmental fees arising out of or related
to all

                                 **Confidential treatment has been
                                 requested with respect to the
                                 information contained within the
                                 "[**]" markings. Such marked portions
                                 have been omitted from this filing and have
                                 been filed separately with the Securities and
                                 Exchange Commission

                                       3

<PAGE>

transactions undertaken pursuant to this Agreement, other than taxes on
Microsoft income and revenue, and will provide Microsoft with appropriate
evidence of such payment upon request.

     4.7       Audits.  Microsoft will maintain during the Term and for at least
               ------
twelve (12) months thereafter all of its regular books of account relating to
Copies distributed via the Service and amounts owing to Microsoft hereunder.  If
Company believes in good faith that Microsoft invoiced Company in excess of
amounts actually owing pursuant to paragraph 4.2, Company will have the right at
Company's sole expense to audit such books of account, subject to the following:
(a) Company will provide Microsoft with at least thirty (30) days' prior written
notice of such audits; (b) audits may occur only during Microsoft's regular
business hours, and at the location where such books of account are maintained
by Microsoft or such other location reasonably specified by Microsoft; (c)
Company will cooperate with Microsoft in good faith to avoid and limit any
disruption of such audits to Microsoft's business and operations; (d) such audit
will be conducted by an independent accounting firm, acceptable to Microsoft and
compensated by Company in a manner that is not affected by the outcome of the
audit (e.g., no contingency fees); (e) the auditors provide Microsoft with all
results and other communications to Company related to the audit at the same
time such auditors provide such communications to Company; (f) audits may not
occur more than once during the Term, may not exceed three (3) consecutive days
and must be completed within twelve (12) months after the end of the Term; (g)
the auditors provide their final conclusions of the audit to Company and
Microsoft simultaneously and within thirty (30) days after the last day of the
audit.  Any information disclosed to or otherwise learned by Company or its
auditors in connection with an audit conducted pursuant to this paragraph
constitutes Confidential Information (as the term is used in Section 9) of
Microsoft and subject to the limitations on use set forth in paragraph 9.1.

Section 5.     Term and Termination

     5.1       Term. This Agreement is binding upon signature and the "Term"
               ----
will be in effect for a period of [**] commencing October 31, 1999 or the day on
which the Registration Page is made publicly available.

     5.2       Termination. Either party may immediately terminate this
               -----------
Agreement upon written notice if the other party breaches the Agreement in any
material respect, and the breach remains uncured for a period of ten (10) days
following the breaching party's receipt of written notice of the breach from the
non-breaching party.

     5.3       Microsoft Termination. Notwithstanding paragraph 5.1, Microsoft
               ----------------------
may terminate this Agreement upon thirty (30) days' prior written notice if
Microsoft ceases to offer the Service. In such a case, or if Company terminates
this Agreement under Section 5.2 or Section 5.4, Microsoft will return to
Company a pro rata portion of the Advance actually paid to Microsoft (less any
additional fees incurred by Company hereunder as of the date of termination). If
fees incurred by Company hereunder exceed the amount of the pro rated Advance
actually paid by to Microsoft as of the date of termination, Microsoft will
invoice, and Company will promptly pay, any additional amounts owing hereunder.

     5.4       Company Termination. Company may terminate this Agreement upon
               --------------------
fifteen (15) days prior written notice to Microsoft after three (3) calendar
months following commencement of the Term if the benchmark of (i) [**]
Subscribers in each calendar month during such period is not achieved or
(ii) [**] Subscribers in the three month period is not achieved. If Microsoft
does not achieve the benchmark set forth above, Microsoft will have fifteen (15)
days to remedy such Subscriber shortfall following Microsoft's receipt of
Company's written termination notice. The parties acknowledge and agree that
they will execute an amendment to this Agreement which sets forth the terms of
the Subscriber shortfall remedy. Upon execution of such amendment, or if
Company has not provided Microsoft written notice of its intent to terminate as
set forth above, Company will forfeit the right to terminate the Agreement as
set forth in this section. In no event will Microsoft be required to refund or
otherwise return to Company any portion of the Advance.

     5.5       Survival. This paragraph and Sections 3.5 (Changes to
               --------
Newsletter), 4 (Consideration) only to the extent of fees set forth in paragraph
4.2 accrued and payable prior to the date of termination (Representations and
Warranties), 7 (Indemnification), 8 (Limitation of Liability), 9
(Confidentiality), and 10 (General) shall survive any termination of this
Agreement, together with all obligations, rights and causes of action that may
have accrued prior to termination, along with any other provisions that might
reasonably be deemed to survive such termination.

Section 6.     Representations and Warranties

     6.1       Company.  Company represents and warrants that:
               -------

               (a) Company has the full corporate rights, power and authority to
     enter into this Agreement and to perform the acts required of it hereunder;

               (b) Company's execution and performance of this Agreement do not
     and will not violate any agreement to which Company is a party or by which
     Company is otherwise bound, or any applicable law, rule or regulation;

                                 **Confidential treatment has been
                                 requested with respect to the
                                 information contained within the
                                 "[**]" markings. Such marked portions
                                 have been omitted from this filing and have
                                 been filed separately with the Securities and
                                 Exchange Commission

                                       4
<PAGE>

               (c) the Newsletter does not and will not violate any third party
     IPRs or give rise to any obligation for the payment of any sums to any
     third party by Microsoft or Microsoft's successors in interest;

               (d) the Newsletter (in whole or in part) does not and will not
     violate the limitations set forth in paragraph 3.3;

               (e) it will not harvest or otherwise collect through the Service
     information about Subscribers, including e-mail addresses, without
     Subscribers' express consent;

               (f) it will not link the Service or Hotmail to any unsolicited
     communication sent to any third party, or otherwise use or mention the
     Service or Hotmail in connection with any such unsolicited communication;
     and

               (g) it has in effect a privacy policy that is available online to
     Subscribers and that meets or exceeds the applicable standards of an
     industry recognized online privacy organization (e.g., the TRUST.E Program,
     BBB OnLine), and it will adhere to the information gathering,
     dissemination, privacy protection and other practices specified in such
     privacy policy.

     6.2       Microsoft: Microsoft represents and warrants to the Company that
               ----------
has the full corporate rights, power and authority to enter into this Agreement
and to perform the acts required of it hereunder.

     6.3       Warranty Disclaimer.  EXCEPT AS EXPRESSLY PROVIDED HEREIN, THE
               -------------------
SERVICE, NEWLETTER, HOTMAIL, AND ANY MATERIALS OR OTHER SERVICES PROVIDED BY OR
ON BEHALF OF MICROSOFT PURSUANT TO THIS AGREEMENT ARE PROVIDED "AS IS" AND WITH
ALL DEFECTS. MICROSOFT HEREBY DISCLAIMS ALL REPRESENTATIONS, WARRANTIES AND
CONDITIONS, EXPRESS OR IMPLIED, OF FITNESS FOR A PARTICULAR PURPOSE,
MERCHANTABILITY, TITLE, NONINFRINGEMENT, COMPATIBILITY, SECURITY, AND CONDITION
OR OPERATION OF THE FOREGOING. MICROSOFT DOES NOT WARRANT THE CONTINUED OR
UNINTERRUPTED OPERATION OF THE INTERNET, SERVICE, OR HOTMAIL.

     6.4       Date Warranty:  Each party represents and warrants that the
               --------------
information technology, financial, operational, communication and other systems
and processes used by such party in connection with performing its obligations
pursuant to this Agreement will not be interrupted or adversely affected by the
manipulation, processing, comparison, display or calculation of dates from, into
and between the twentieth and twenty-first centuries, including leap years, and
each agrees to cooperate with the other party to promptly remedy any such error.

Section 7.     Indemnification

     7.1       Company.  The Company will indemnify and hold harmless Microsoft
               -------
against, and will defend or settle at the Company's expense, any and all
actions, claims, liabilities, losses, damages, costs, expenses, judgments and
penalties, including but not limited to reasonable attorneys' fees, or other
proceeding brought by third parties against Microsoft to the extent based on a
claim that, if true would (a) result from any misrepresentation or breach of
representation or warranty of the Company contained herein, or (b) result from
any breach of any covenant or agreement to be performed by Company hereunder.

     7.2       Microsoft. Microsoft will indemnify and hold harmless the Company
               ---------
against, and will defend or settle at Microsoft's expense, any action actions,
claims, liabilities, losses, damages, costs, expenses, judgments and penalties,
including but not limited to reasonable attorneys' fees, or other proceeding
brought by third parties against Company to the extent based on a claim that, if
true would (a) result from any misrepresentation or breach of representation or
warranty of Microsoft contained herein, or (b) result from any breach of any
covenant or agreement to be performed by Microsoft hereunder.

     7.3       Procedure. The party to be indemnified, defended and held
               ---------
harmless pursuant to paragraph 7.1 or 7.2 will: (a) provide the indemnifying
party with prompt written notice of any such claim, (b) permit the indemnifying
party to assume and control the defense of such action, and (c) not enter into
any settlement or compromise of any such claim without the indemnifying party's
prior written consent (not to be unreasonably withheld). The indemnifying party
will pay any and all costs, damages, and expenses (including but not limited to
reasonable attorneys' fees and costs) awarded against or incurred by the
indemnified party in any such action or proceeding attributable to any such
claim. The indemnified party may also retain counsel at its own expense in
connection with the defense or settlement of any such claim.

Section 8.     Limitation of Liability

     8.1       Limitation of Remedies.  EXCEPT TO THE EXTENT ARISING PURSUANT TO
               -----------------------
SECTION 7 OR A BREACH OF SECTION 9, UNDER NO CIRCUMSTANCE SHALL EITHER PARTY BE
LIABLE TO THE OTHER PARTY

                                       5
<PAGE>

FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES (EVEN IF
THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), ARISING FROM OR
OTHERWISE RELATED TO THIS AGREEMENT, SUCH AS, BUT NOT LIMITED TO, LOSS OF
REVENUE, PROFITS, ACCOUNTS OR LOST BUSINESS, AND WHETHER ARISING IN CONTRACT,
TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

     8.2       Limitation of Damages.  EXCEPT TO THE EXTENT ARISING PURSUANT TO
               ---------------------
SECTION 7 OR A BREACH OF SECTION 9, UNDER NO CIRCUMSTANCE SHALL EITHER PARTY BE
LIABLE TO THE OTHER PARTY FOR DAMAGES IN EXCESS OF AMOUNTS ACTUALLY PAID AND
OWING TO MICROSOFT HEREUNDER.

Section 9.     Confidentiality

The parties acknowledge and agree that the Microsoft Non-Disclosure Agreement
dated as of _________________  ("NDA") entered into by and between the parties
applies to this Agreement as if fully set forth herein and that all of the terms
of this Agreement (including but not limited to its existence) and all
discussions and negotiations related thereto are considered Confidential
Information (as that term is defined in the NDA) of Microsoft under the NDA.  If
Company has not executed a NDA, Company agrees to sign the NDA attached hereto
as Exhibit B and return it to Microsoft with this Agreement. Upon termination or
expiration of this Agreement, each party will destroy (or upon the other party's
request return) any and all Confidential Information of the other party in its
possession or control.

Section 10.    General.

     10.1      Notices. All notices and requests in connection with this
               -------
Agreement will be deemed given (a) when personally delivered, (b) when delivered
by facsimile or telex, (c) the next business day following delivery to a
nationally recognized courier service guarantying next-day delivery, or (d) five
(5) business days after being placed in the United States mail, postage prepaid,
certified or registered, return receipt requested, as follows:

Notices to Company:                       Notices to Microsoft:
------------------                        --------------------

Snowball.com d/b/a IGN.com                Microsoft Corporation
250 Executive Park, Suite 4000            One Microsoft Way
San Francisco, CA 94134                   Redmond, WA 98052-6399
Attn.:      Sybil Yang                    Attn.: Chuck Frizelle
      ------------------------

Telephone:  (415) 508-2049                Telephone: (425) 705-2179
            ----------------
Fax:        (415) 508-2001                Fax:       (425) 936-7329
            ----------------

Copy to:                                  Copy to:
Snowball.com, Inc.                        Microsoft Law & Corporate Affairs
250 Executive Park, Suite 4000            One Microsoft Way
San Francisco, CA 94134                   Redmond, WA 98052
Fax: (415) 508-2001                       Fax:   (425) 936-7329
Attn.: Legal Department                   Attn.: Gregory Ritts

or to such other address as the party to receive the notice or request so
designates by at least ten (10) days prior written notice to the other party.

     10.2      Independent Contractor. Company is an independent contractor, and
               ----------------------
nothing in this Agreement will be construed as creating an employer-employee
relationship, partnership, or joint venture between the parties.

     10.3      Governing Law. This Agreement will be governed by the laws of the
               -------------
State of Washington. Company hereby irrevocably consents to the personal
jurisdiction of, and exclusive venue for any legal proceeding commenced by or on
behalf of Company in, the state and federal courts sitting King County,
Washington, USA. In any suit or action to enforce any right or remedy under this
Agreement or to interpret any provision of this Agreement, the prevailing party
will be entitled to recover its costs, including reasonable attorneys' fees.

     10.4      Assignment. Company may not assign, sub-license, transfer,
               ----------
encumber or otherwise dispose of this Agreement without Microsoft's prior
written approval, except in connection with a merger or sale of substantially
all of Company's assets. Any attempted assignment, sub-license, transfer,
encumbrance or other disposal of this Agreement by Company without Microsoft's
prior written approval will be void and will constitute a material default and
breach of this
                                       6
<PAGE>

Agreement. Except as otherwise provided, this Agreement will be binding upon and
inure to the benefit of the parties' successors and lawful assigns.

     10.5      Publicity. No press releases, public statements, promotions or
               ----------
advertising concerning the existence of this Agreement, shall be made or
released in any medium except with the prior written approval of both parties.

     10.6      Headings. The section headings used in this Agreement are
               --------
intended for convenience only and will not be deemed to affect in any manner the
meaning or intent of this Agreement or any provision hereof.

     10.7      Modification. This Agreement may not be modified except by a
               ------------
written agreement dated subsequent to the date of this Agreement and signed on
behalf of Company and Microsoft by their respective duly authorized
representatives.

     10.8      Waiver. No waiver of any breach of this Agreement will constitute
               ------
a waiver of any prior, concurrent or subsequent breach of the same or any other
provisions hereof, and no waiver will be effective unless made in writing and
signed by the waiving party.

     10.9      Severability. To the extent that any provision of this Agreement
               ------------
conflicts with governing law or any provision is held to be null, void or
otherwise ineffective or invalid by a court of competent jurisdiction, (a) such
provision will be deemed to be restated to reflect as nearly as possible the
original intentions of the parties in accordance with applicable law, and (b)
the remaining terms, provisions, covenants and restrictions of this Agreement
will remain in full force and effect.

     10.10     Counterparts. This Agreement may be executed in one or more
               ------------
counterparts, all of which taken together will constitute one agreement

     10.11     Entire Agreement. Subject to Section 9, this Agreement
               ----------------
constitutes the entire agreement between the parties with respect to the subject
matter hereof and supersedes all prior and contemporaneous agreements or
communications between the parties.

The parties have caused this Agreement to be executed by their duly authorized
representatives as of the date written above.

Microsoft                                  Company
MICROSOFT CORPORATION                      SNOWBALL.COM d/b/a POWERSTUDENTS.COM
One Microsoft Way                          250 Executive Park, Suite 4000
Redmond, WA 98052-6399                     San Francisco, CA 94134

By                                          /s/ KELLY TANABE
   ----------------------------            -----------------------------------
(Sign)                                     (Sign)
                                                KELLY TANABE
-------------------------------            -----------------------------------
Name (Print)                               Name (Print)
                                                          Director
-------------------------------            -----------------------------------
Title                                      Title
                                                        11/1/99
-------------------------------            -----------------------------------
Date                                       Date

                                           -----------------------------------
                                           Company's Federal Employer ID Number

                                       7
<PAGE>

                                   EXHIBIT A
                                SPECIFICATIONS

   A. Specifications for Providers
          a.   Company logo: 100x 30, 1.5K file size, gif, non-animated, non-
               clickable
          b.   Newsletter description: 215 Latin characters (including spaces)
               that briefly describes the newsletter
          c.   Company name:  20 characters
          d.   Promotional banners
                    i.   468x60, 12K file size, gif or jpeg
                    ii.  At Microsoft discretion, Company must include Hotmail
                         and/or WebCourier logo, making it clear to the user
                         that the banner is a co-branded banner.
                    iii. URL determined by Microsoft
                    iv.  Banner must meet standard Microsoft guidelines set
                         forth in Standard Terms and Conditions
   B. Hosting Schedule
          a.   Company will make the newsletter content available to Microsoft
               according to a schedule agreed upon by Microsoft and Company.
          b.   Company will run newsletter content through an HTML validator
               program to catch any errors before posting it for pickup.
          c.   Company will provide Microsoft with the URL of the newsletter
               content for Microsoft pick-up.
          d.   Company may not alter the newsletter content more than once each
               day.
   C. Delivery Schedule
          a.   Microsoft will distribute the Newsletter to Subscribers according
               to the schedule agreed upon by Microsoft and Company.

Newsletter Technical Requirements
1. Code must be syntactically correct, and resemble the following;
   (HTML)
   (BODY)
   ......
   (/BODY)
   (/HTML)

   Note: Tables are good if you want the page to retain its attributes, but if
     any of the above tags are missing, it WILL NOT work. Code that is not clean
     will run into problems with WebCourier automated content pickups and page
     display.

2. No Relative Links.
   The following are examples of relative links
   (a href="/hotmail/link.html")
   (img src="../../../../hotmail/img.gif")

   All links must have full headings similar to these:
   (a href="http://www.hotmail.com/hotmail.html")
   (img src="http://www.hotmail.com/hotmail/img.gif")

3. Use NO JavaScript/DHTML.
   For security reasons, we do not allow JavaScript or DHTML.

4. We accept only the GET method instead of the POST method in Form tags (i.e.,
   (FORM) tags should have "METHOD=GET".

   Scripts receiving (FORM) input must accept the "GET" method.

5. Links may NOT open new browser windows.

6. Tags that are opened must be closed.

7. Suggestion: Code for a maximum resolution screen size of 800 x 600. For best
   results across all platforms, use a minimum of 600 pixels.

                                       1
<PAGE>

8.  Setting Background Colors:
    If you wish to set a background color, then set it in a table around your
    HTML, rather than using body tags. DO NOT USE BODY TAGS. DO NOT USE GLOBAL
    STYLE TO SPECIFY COLORS. DO NOT SET A BODY BACKGROUND. Use nested styles
    within the table. Anything with body tags will be stripped out or ignored.

    Example of what NOT to do:
                    ---
    (body bgcolor="#FFFFFF" text="#000000" link="#003366" vlink="#003366"
    alink="#003366")

    What you can do:
     - create CSS classes specific to your content, or
                                      ----
     - create all styles in-line

9.  Variable Subject Lines: (You must inform the Program Manager to turn ON this
    feature.)
    Subject must be enclosed in the (title)...(/title) tags on same line.  46
    character max, including spaces. Subject line must begin with your
    newsletter name. (Ex. MSNBC: followed by subject).

10. Content: maximum of 512 characters per line. If it's longer than 512
    characters, people using email clients will not be able to retrieve your
    WebCourier newsletter.

Server Rules

11. Server Accessibility:
    The server on which your HTML resides must be accessible via telnet client.
    We will retrieve the HTML by "telnet"ing into the site and using the GET
    command to retrieve the material.

    telnet www.hotmail.com 80
    Trying 207.82.250.251...
    Connected to www.hotmail.com.
    Escape character is '(caret)]'.
    GET /hotmail/test.html HTTP/1.0

    The server can reside on any port as long as it is not a secure server.
    SID's are supported.

12. No Password Protected Pages.

13. Note: Some codes that may work in a browser alone may not be permissible in
    WebCourier content.

14. Please run your newsletters through an HTML validator program to catch any
    errors before posting it for pickup.

Pickup Rules

15. The URL where the page resides for pickup cannot be changed. If it must be
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Subscriber Customer Support:

17. If subscribers have problems with their WebCourier subscription, please have
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                               ------------------
    some troubleshooting instructions. If a subscriber continues to have
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18. Company must maintain WebCourier delivered newsletter content pages, links,
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                                       2
<PAGE>

                                   EXHIBIT B
                MICROSOFT CORPORATION NON-DISCLOSURE AGREEMENT

     THIS AGREEMENT (the "Agreement") is made between MICROSOFT CORPORATION, a
Washington corporation, and Snowball.com, Inc. (the "Company") and entered into
this ______ day of ________________, 19_____.

     In consideration of the mutual promises and covenants contained in this
Agreement, the mutual disclosure of confidential information to each other, the
parties hereto agree as follows:

1.   Confidential Information and Confidential Materials
     ---------------------------------------------------

     (a) "Confidential Information" means nonpublic information that Disclosing
Party designates as being confidential or which, under the circumstances
surrounding disclosure ought to be treated as confidential.  "Confidential
Information" includes, without limitation, information relating to released or
unreleased Disclosing Party software or hardware products, the marketing or
promotion of any Disclosing Party product, Disclosing Party's business policies
or practices, and information received from others that Disclosing Party is
obligated to treat as confidential.  Confidential Information disclosed to
Receiving Party by any Disclosing Party Subsidiary and/or agents is covered by
this Agreement.

     (b) Confidential Information shall not include any information that: (i) is
or subsequently becomes publicly available without Receiving Party's breach of
any obligation owed Disclosing Party; (ii) became known to Receiving Party prior
to Disclosing Party's disclosure of such information to Receiving Party; (iii)
became known to Receiving Party from a source other than Disclosing Party other
than by the breach of an obligation of confidentiality owed to Disclosing Party;
or (iv) is independently developed by Receiving Party.

     (c) "Confidential Materials" shall mean all tangible materials containing
Confidential Information, including without limitation written or printed
documents and computer disks or tapes, whether machine or user readable.

2.   Restrictions
     ------------

     (a) Receiving Party shall not disclose any Confidential Information to
third parties for five (5) years following the date of its disclosure by
Disclosing Party to Receiving Party, except to Receiving Party's consultants as
provided below. However, Receiving Party may disclose Confidential Information
in accordance with judicial or other governmental order, provided Receiving
Party shall give Disclosing Party reasonable notice prior to such disclosure and
shall comply with any applicable protective order or equivalent.

     (b) Receiving Party shall take reasonable security precautions, at least as
great as the precautions it takes to protect its own confidential information,
to keep confidential the Confidential Information.  Receiving Party may disclose
Confidential Information or Confidential Material only to Receiving Party's
employees or consultants on a need-to-know basis.  Receiving Party will have
executed or shall execute appropriate written agreements with its employees and
consultants sufficient to enable it to comply with all the provisions of this
Agreement.

     (c) Confidential Information and Confidential Materials may be disclosed,
reproduced, summarized or distributed only in pursuance of Receiving Party's
business relationship with Disclosing Party, and only as otherwise provided
hereunder. Receiving Party agrees to segregate all such Confidential Materials
from the confidential materials of others in order to prevent commingling.

     (d) Receiving Party may not reverse engineer, decompile or disassemble any
software disclosed to Receiving Party.

3.   Rights and Remedies
     -------------------

     (a) Receiving Party shall notify Disclosing Party immediately upon
discovery of any unauthorized use or disclosure of Confidential Information
and/or Confidential Materials, or any other breach of this Agreement by
Receiving Party, and will cooperate with Disclosing Party in every reasonable
way to help Disclosing Party regain possession of the Confidential Information
and/or Confidential Materials and prevent its further unauthorized use.

     (b) Receiving Party shall return all originals, copies, reproductions and
summaries of Confidential Information or Confidential Materials at Disclosing
Party's request, or at Disclosing Party's option, certify destruction of the
same.

     (c) Receiving Party acknowledges that monetary damages may not be a
sufficient remedy for unauthorized disclosure of Confidential Information and
that Disclosing Party shall be entitled, without waiving any other rights or
remedies, to such injunctive or equitable relief as may be deemed proper by a
court of competent jurisdiction.

                                       1
<PAGE>

     (d) Disclosing Party may visit Receiving Party's premises, with reasonable
prior notice and during normal business hours, to review Receiving Party's
compliance with the terms of this Agreement.

4.   Miscellaneous
     -------------

     (a) All Confidential Information and Confidential Materials are and shall
remain the property of Disclosing Party.  By disclosing information to Receiving
Party, Disclosing Party does not grant any express or implied right to Receiving
Party to or under Disclosing Party patents, copyrights, trademarks, or trade
secret information.

     (b) If either party provides pre-release software as Confidential
Information or Confidential Materials under this Agreement, such pre-release
software is provided "as is" without warranty of any kind. Receiving Party
agrees that neither Disclosing Party nor its suppliers shall be liable for any
damages whatsoever relating to Receiving Party's use of such pre-release
software.

     (c) All software provided to the U.S. Government pursuant to solicitations
issued on or after December 1, 1995 is provided with the commercial rights and
restrictions described elsewhere herein.  All software provided to the U.S.
Government pursuant to solicitations issued prior to December 1, 1995 is
provided with RESTRICTED RIGHTS as provided for in FAR, 48 CFR 52.227-14 (JUNE
1987) or DFAR, 48 CFR 252.227-7013 (OCT 1988), as applicable. Manufacturer is
Microsoft Corporation/One Microsoft Way/Redmond, WA 98052-6399.

     (d) Both parties agree that they do not intend nor will they, directly or
indirectly, export or re-export (i) any Confidential Information or Confidential
Materials, or (ii) any product (or any part thereof), process or service that is
the direct product of the Confidential Information or Materials to (A) any
country that is subject to U.S. export restrictions (currently including, but
not necessarily limited to, Iran, Iraq, Syria, Cuba, North Korea, Libya, the
Federal Republic of Yugoslavia (Serbia and Montenegro) and Sudan), or to any
national of any such country, wherever located, who intends to transmit or
transport the products back to such country; (B) to any end-user who either
party knows or has reason to know will utilize them in the design, development
or production of nuclear, chemical or biological weapons; or (C) to any end-user
who has been prohibited from participating in U.S. export transactions by any
federal agency of the U.S. government.

     (e) The terms of confidentiality under this Agreement shall not be
construed to limit either party's right to independently develop or acquire
products without use of the other party's Confidential Information. Further,
either party shall be free to use for any purpose the residuals resulting from
access to or work with such Confidential Information, provided that such party
shall maintain the confidentiality of the Confidential Information as provided
herein. The term "residuals" means information in non-tangible form, which may
be retained by persons who have had access to the Confidential Information,
including ideas, concepts, know-how or techniques contained therein. Neither
party shall have any obligation to limit or restrict the assignment of such
persons or to pay royalties for any work resulting from the use of residuals.
However, the foregoing shall not be deemed to grant to either party a license
under the other party's copyrights or patents.

     (f) This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof. It shall not be modified except by a
written agreement dated subsequent to the date of this Agreement and signed by
both parties. None of the provisions of this Agreement shall be deemed to have
been waived by any act or acquiescence on the part of Disclosing Party, its
agents, or employees, but only by an instrument in writing signed by an
authorized officer of Disclosing Party. No waiver of any provision of this
Agreement shall constitute a waiver of any other provision(s) or of the same
provision on another occasion.

     (g) If either party employs attorneys to enforce any rights arising out of
or relating to this Agreement, the prevailing party shall be entitled to recover
reasonable attorneys' fees. This Agreement shall be construed and controlled by
the laws of the State of Washington, and both parties further consent to
jurisdiction by the state and federal courts sitting in the State of Washington.
Process may be served on either party by U.S. Mail, postage prepaid, certified
or registered, return receipt requested, or by such other method as is
authorized by the Washington Long Arm Statute.

     (h) Subject to the limitations set forth in this Agreement, this Agreement
will inure to the benefit of and be binding upon the parties, their successors
and assigns.

     (i) If any provision of this Agreement shall be held by a court of
competent jurisdiction to be illegal, invalid or unenforceable, the remaining
provisions shall remain in full force and effect.

     (j) All obligations created by this Agreement shall survive change or
termination of the parties' business relationship.

                                       2
<PAGE>

5.   Suggestions and Feedback
     ------------------------

Either party may from time to time provide suggestions, comments or other
feedback to the other party with respect to Confidential Information provided
originally by the other party (hereinafter "Feedback"). Both parties agree that
all Feedback is and shall be entirely voluntary and shall not, absent separate
agreement, create any confidentiality obligation for the Receiving Party.
However, the Receiving Party shall not disclose the source of any feedback
without the providing party's consent. Feedback shall be clearly designated as
such and, except as otherwise provided herein, each party shall be free to
disclose and use such Feedback as it sees fit, entirely without obligation of
any kind to the other party. The foregoing shall not, however, affect either
party's obligations hereunder with respect to Confidential Information of the
other party.

    IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

Microsoft                             Company
MICROSOFT CORPORATION                 SNOWBALL.COM d/b/a POWERSTUDENTS.COM
One Microsoft Way                     250 Executive Park, Suite 4000
Redmond, WA 98052-6399                San Francisco, CA 94134

By                                      /s/ KELLY TANABE
   --------------------------         ---------------------------------
(Sign)                                (Sign)
                                            KELLY TANABE
-----------------------------         ---------------------------------
Name (Print)                          Name (Print)
                                                Director
-----------------------------         ---------------------------------
Title                                 Title
                                             October 25, 1999
-----------------------------         ---------------------------------
Date                                  Date

                                       3<PAGE>

                                                                    Exhibit 4.3

                           GREENTREE NUTRITION, INC.
                      RESTRICTED STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT is made as of May 14, 1998, by and between,
GreenTree Nutrition, Inc., a Delaware corporation (the "Company"), and Don
Kendall (the "Founder").

     In consideration of the mutual promises and covenants set forth herein, the
parties hereto hereby agree as follows (capitalized terms are defined in the
Appendix attached hereto):

     A.   SALE OF STOCK

          1.   Sale, Payment.  Founder hereby purchases from the Company,
               -------------
subject to the terms hereof, 966,556 shares of Common Stock (the "Common Stock
Purchased Shares") and 22,976 shares of Series A Preferred Stock (the "Series A
Preferred Stock Purchased Shares" and, with the Common Stock Purchased Shares,
the "Purchased Shares") of the Company.  In exchange for the Purchased Shares,
the Founder hereby assigns to the Company all right, title and interest in and
to the Founder's membership interest (as defined in Section 17001(z) of the
California Limited Liability Company Act) (the "Interest" or "Purchase Price")
in Nutrition Direct, LLC, a California limited liability company (the "LLC")
operating pursuant to that certain limited liability company operating agreement
among the Founder and the other members signed on or about January 9, 1998 (the
"LLC Agreement").  The Company and the Founder agree that the fair market value
of the Interest is approximately equal to the Fair Market Value of the Purchased
Shares.

          2.   Issuance of Certificates.  Upon receipt by the Company of a duly-
               ------------------------
executed blank Assignment Separate from Certificate (in the form attached hereto
as Exhibit 11), the Company shall issue a duly executed certificate(s)
representing the Purchased Shares.  Such certificate(s) shall be held in escrow
in accordance with the provisions of this Agreement.

          3.   Representations and Warranties of Founder.  Founder hereby
               -----------------------------------------
represents and warrants that:

               (a)  (i) the Interest, including, without limitation, that number
of shares appearing opposite Founder's name in Exhibit I attached hereto,
constitutes Founder's entire interest in the LLC, (ii) that this assignment of
the Interest constitutes a valid and legally binding obligation, enforceable in
accordance with its terms; (iii) the Founder has full power and authority to
assign the Interest; and (iv) as to the assignment of the Interest, the
execution and delivery of this Stock Purchase Agreement does not (A) violate any
provision of law applicable to the Founder, (B) conflict with any document,
agreement, or instrument to which the Founder is a party, other than the LLC
Agreement, or (C) other than pursuant to the terms of the LLC Agreement, require
the

                                       1
<PAGE>

Founder to obtain any consent or approval of, or give notice to, any person
except for notices, approvals, and consents that have previously been made or
obtained.

          (b) The Purchased Shares are being acquired for Founder's own account
for investment purposes only, and not as a nominee or agent, and not with a view
to the resale or distribution of all or any part of the Purchased Shares.
Founder is prepared to hold the Purchased Shares for an indefinite period and
has no present intention of selling, granting any participation in, or otherwise
distributing any of the Purchased Shares. Founder does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
a participating interest in, any of the Purchased Shares. Founder has no present
plan or intention to engage in a sale, exchange, transfer, distribution,
redemption, reduction 'in any way of its risk of ownership by short sale or
otherwise, or other disposition, directly or indirectly of the Purchased Shares.

          (c) Founder has been furnished with, and has had access to, such
information as he considers necessary or appropriate for deciding whether to
invest in the Purchased Shares, and Founder has had an opportunity to ask
questions and receive answers from the Company regarding the terms and
conditions of the issuance of the Purchased Shares.

          (d) Founder is able to fend for himself in the transactions
contemplated by this Agreement, can bear the economic risk of investment in the
Purchased Shares and has such knowledge and experience in financial or business
matters to be capable of evaluating the merits and risks of the investment in
the Purchased Shares.

     B.        SECURITIES LAW COMPLIANCE

          1.   Restricted Securities.  The Purchased Shares have not been
               ---------------------
registered under the 1933 Act, on the ground that the sale provided for in this
Agreement is exempt from the requirements of the 1933 Act and the Company's
reliance on such exemptions is predicated on Founder's representations herein.
Founder hereby confirms that Founder has been informed that the Purchased Shares
are restricted securities under the 1933 Act and may not be resold or
transferred unless the Purchased Shares are first registered under the federal
securities laws or unless an exemption from such registration is available.
Accordingly, Founder hereby acknowledges that Founder is prepared to hold the
Purchased Shares for an indefinite period and that Founder is aware that SEC
Rule 144 under the 1933 Act, which exempts certain resales of unrestricted
securities, is not presently available to exempt the resale of the Purchased
Shares from the registration requirements of the 1933 Act.

          2.   Restrictions on Disposition of Purchased Shares.  Founder shall
               -----------------------------------------------
make no disposition of the Purchased Shares (other than a Permitted Transfer)
unless and until there is compliance with all requirements of this Agreement and
any applicable laws.  The Company shall not be required (i) to transfer on its
books any Purchased Shares which have been sold or transferred in violation of
the provisions of this

                                       2
<PAGE>

Agreement or (ii) to treat as the owner of the Purchased Shares, any transferee
to whom the Purchased Shares have been transferred in contravention of this
Agreement.

          3.   Restrictive Legends.  The stock certificate(s) for the Purchased
               -------------------
Shares shall be endorsed with one or more of the following restrictive legends:

               (a) "The shares represented by this certificate have not been
registered under the Securities Act of 1933.  The shares may not be sold or
offered for sale in the absence of (i) an effective registration statement for
the shares under such Act, (ii) a 'no action' letter of the Securities and
Exchange Commission with respect to such sale or offer, or (iii) satisfactory
assurances to the Company that registration under such Act is not required with
respect to such sale or offer."

               (b) "The shares represented by this certificate are unvested and
subject to certain repurchase rights granted to the Company and accordingly may
not be sold, assigned, transferred, encumbered, or in any manner disposed of
except in conformity with the terms of a written agreement dated May 14,1998,
between the Company and the registered holder of the shares (or the predecessor
in interest to the shares).  A copy of such agreement is maintained at the
Company's principal corporate offices."

               (c) "The Shares represented by this certificate are subject to a
right of first refusal option in favor of the Company, as provided by the Bylaws
of the Company. Copies of the Company's Bylaws may be obtained upon written
request to the secretary of the Company."

          4.   Condition to Issuance.  THE SALE OF THE PURCHASED SHARES HAS NOT
               ---------------------
BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA,
AND THE ISSUANCE OF SUCH SHARES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS THE SALE
OF SUCH SHARES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF
THE CALIFORNIA CORPORATIONS CODE.  THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT
ARE EXPRESSLY CONDITIONED UNLESS THE SALE IS SO EXEMPT.

     C.        TRANSFER RESTRICTIONS

          1.   Restriction on Transfer.  Except for any Permitted Transfer,
               -----------------------
Founder shall not transfer, assign, encumber or otherwise dispose of any of the
Purchased Shares that are subject to the Repurchase Right.

          2.   Transferee Obligations.  Each person (other than the Company) to
               ----------------------
whom the Purchased Shares are transferred by means of a Permitted Transfer must,
as a condition precedent to the validity of such transfer, acknowledge in
writing to the Company that such person is bound by the provisions of this
Agreement and that the transferred shares are subject to (i) the Repurchase
Right, (ii) the Right of First Refusal,

                                       3
<PAGE>

(iii) the Market Stand-Off, and (iv) the securities restrictions set forth in
section B above, to the same extent such shares would be so subject if retained
by Founder.

          3.   Market Stand-Off.
               ----------------

               (a)  In connection with any underwritten public offering by the
Company of its equity securities pursuant to an effective registration statement
filed under the 1933 Act, including, the Company's initial public offering,
Owner shall not sell, make any short sale of, loan, hypothecate, pledge, grant
any option for the purchase of, or otherwise dispose or transfer for value or
otherwise agree to engage in any of the foregoing transactions with respect to,
any Purchased Shares without the prior written consent of the Company or its
underwriters. Such restriction (the "Market Stand-Off") shall be in effect for
such period of time from and after the effective date of the final prospectus
for the offering as may be requested by the Company or such underwriters. In no
event, however, shall such period exceed one hundred eighty (180) days and the
Market StandOff shall in all events terminate two (2) years after the effective
date of the Company's initial public offering.

               (b)  Any new, substituted or additional securities that are by
reason of any Recapitalization or Reorganization distributed with respect to the
Purchased Shares shall be immediately subject to the Market Stand-Off, to the
same extent the Purchased Shares are at such time covered by such provisions.

               (c)  In order to enforce the Market Stand-Off, the Company may
impose stop-transfer instructions with respect to the Purchased Shares until the
end of the applicable standoff period.

     D.        REPURCHASE RIGHT

          1.   Grant.  The Company is hereby granted the right (the "Repurchase
               -----
Right"), exercisable at any time during the thirty (30) day period following the
date Founder ceases for any reason to remain in Service, to repurchase for $0.16
per share, all or any portion of the Purchased Shares in which Founder is not,
at the time of his cessation of Service, vested.

          2.   Exercise of the Repurchase Right.  The Repurchase Right shall be
               --------------------------------
exercisable by written notice delivered to each Owner prior to the expiration of
the thirty (30) day exercise period.  The notice shall indicate the number of
Unvested Shares to be repurchased and the date on which the repurchase is to be
effected, such date to be not more than thirty (30) days after the date of such
notice.  The certificates representing the Unvested Shares to be repurchased
shall be delivered to the Company prior to the close of business on the date
specified for the repurchase.  Concurrently with the receipt of such stock
certificates, the Company shall pay to Owner, by Company check (or cancellation
of any purchase-money indebtedness), an amount equal to $0.16 per share.

          3.   Termination of the Repurchase Right.  The Repurchase Right shall
               -----------------------------------
terminate with respect to any Unvested Shares for which it is not timely
exercised under Paragraph D.2 herein.  In addition, the Repurchase Right shall
terminate and cease to be

                                       4
<PAGE>

exercisable with respect to any and all Purchased Shares in which Founder vests
in accordance with the following vesting schedule (the "Vesting Schedule"):

          Founder shall have a fully vested interest in 265,637 shares of the
     Company's Common Stock Purchased Shares and 22,976 shares of Series A
     Preferred Stock Purchased Shares. Founder shall acquire a vested interest
     and the Company's Repurchase Right shall lapse in the remaining Purchased
     Shares in 34 successive equal monthly installments upon Founder's
     completion of each full month of Service, measured from and after May 1,
     1998.

          In the event that Founder is terminated without Cause, the Repurchase
     Right shall be deemed to have lapsed with respect to fifty percent (50%) of
     the shares to which the Repurchase Right applies immediately prior to the
     Founder's termination of service to the Company.

          4.   Recapitalization/Reorganization.  Any new, substituted or
               -------------------------------
additional securities or other property (including cash paid other than as a
regular cash dividend), which is by reason of any Recapitalization distributed
with respect to the Purchased Shares, shall be immediately subject to the
Repurchase Right, but only to the extent the Purchased Shares are at the time
covered by such right.  Appropriate adjustments to reflect such distribution
shall be made to the number and/or class of Purchased Shares subject to this
Agreement and to the price per share to be paid upon the exercise of the
Repurchase Right in order to reflect the effect of any such Recapitalization
upon the Company's capital structure, In the event of a Reorganization, other
than a Change in Control, the Repurchase Right shall remain in full force and
effect and shall apply to the new capital stock or other property received in
exchange for the Purchased Shares in consummation of the Reorganization, but
only to the extent the Purchase Shares are at the time covered by such night.

          5.   Change in Control.
               -----------------

               (a) In the event that a Change in Control occurs such Repurchase
Right will be deemed to have lapsed, and Founder will have obtained a vested
interest in a portion of the Purchased Shares, as if Founder had completed
thereafter an additional six (6) months of Service.

               (b) In the event that a Change in Control occurs and Founder is
later terminated without Cause, such Repurchase Right will be deemed to have
lapsed and Founder will have obtained a vested interest in a portion of the
Purchased Shares, as if Founder had completed thereafter one (1) additional year
of Service.

               (c) In addition to the foregoing, in the event that a Change of
Control occurs and after giving effect to Sections D.5(a) or D.5(b) above, some
of the Purchased Shares would remain subject to vesting pursuant to Section D.3
above, such

                                       5
<PAGE>

remaining Purchased Shares shall also vest fully, and the Repurchase Right shall
automatically lapse in its entirety, unless (i) the Repurchase Right is
expressly assigned by the Company to the successor entity (or Parent thereof) in
such Change in Control and (ii) the consideration issued and delivered by such
successor entity (or Parent thereof) with respect to such unvested Purchased
Shares continue to vest in accordance with the remaining vesting schedule
provided for in Section D.3 above based on Founder's continued Service for the
Company or such successor entity (or Parent thereof).

          (d)  To the extent the Repurchase Right remains in effect following a
Change in Control, such right shall apply to the new capital stock or other
property (including any cash payment) received by Founder in exchange for the
Purchased Shares in consummation of the Change in Control, but only to the
extent the Purchased Shares are at the time covered by such right.  Appropriate
adjustments shall be made to the number and/or kind of Purchased Shares subject
to this Agreement and to the price per share payable upon exercise of the
Repurchase Right to reflect the effect of the Change in Control upon the
Company's capital structure; Provided, however, that the aggregate repurchase
price shall remain the same.

     E.   RIGHT OF FIRST REFUSAL

     The Shares purchased hereunder are subject to the Right of First Refusal
set.  forth in the Company's Bylaws.

     F.   ESCROW

          1.   Deposit.  Upon issuance, the certificates for the Purchased
               -------
Shares that are subject to the Repurchase Right shall be deposited in escrow
with the Company to be held in accordance with the provisions of this Article F.
The deposited certificates, together with any other assets or securities from
time to time deposited with the Company pursuant to the requirements of this
Agreement, shall remain in escrow until such time or times as the certificates
(or other assets and securities) are to be released or otherwise surrendered for
cancellation in accordance with Paragraph F.3.  Upon delivery of the
certificates (or other assets and securities) to the Company, Founder shall be
issued a receipt acknowledging the number of Purchased Shares (or other assets
and securities) delivered in escrow.

          2.   Recapitalization/Reorganization.  Any new, substituted or
               -------------------------------
additional securities or other property which is by reason of any
Recapitalization or Reorganization distributed with respect to the Purchased
Shares (other than regular cash dividends) shall be immediately delivered to the
Company to be held in escrow under this Article F, but only to the extent the
Purchased Shares are at the time subject to the escrow requirements hereunder.

          3.   Release/Surrender.  The Purchased Shares, together with any other
               -----------------
assets or securities held in escrow hereunder, shall be subject to the following
terms relating to their release from escrow or their surrender to the Company
for repurchase and cancellation:

                                       6
<PAGE>

          (a) Should the Company elect to exercise the Repurchase Right with
respect to any Unvested Shares, then the escrowed certificates for those
Unvested Shares (together with any other assets or securities attributable
thereto) shall be surrendered to the Company.

          (b) Should the Company elect to exercise the First Refusal Right with
respect to any Target Shares held at the time in escrow hereunder, then the
escrowed certificates for those Target Shares (together with any other assets or
securities attributable thereto) shall be surrendered to the Company.

          (c) Should the Company elect not to exercise the Repurchase Right with
respect to any Unvested Shares or the First Refusal Right with respect to any
Target Shares held at the time in escrow hereunder, then the escrowed
certificates for those shares (together with any other assets or securities
attributable thereto) shall be immediately released to Owner.

          (d) As the Purchased Shares (or any other assets or securities
attributable thereto) vest in accordance with the Vesting Schedule, the
certificates for those vested shares (as well as all other vested assets and
securities) shall be released from escrow upon Owner's request, but not more
frequently than once every six (6) months.

          (e) All Purchased Shares that vest (and any other vested assets and
securities attributable thereto) shall be released within thirty (30) days after
the earlier to occur of (i) Owner's cessation of Service or (ii) the lapse of
the First Refusal Right.

     G.        SPECIAL TAX ELECTION

     The acquisition of the Purchased Shares may result in adverse tax
consequences that may be avoided or mitigated by filing an election under Code
Section 83(b).  Such election must be filed within thirty (30) days after the
date of this Agreement.  A description of the tax consequences applicable to the
acquisition of the Purchased Shares and the form for making the Code Section
83(b) election are set forth in Exhibit III.  FOUNDER SHOULD CONSULT WITH HIS
                                -------
TAX ADVISOR TO DETERMINE THE TAX CONSEQUENCES OF ACQUIRING THE PURCHASED SHARES
AND THE ADVANTAGES AND DISADVANTAGES OF FILING THE CODE SECTION 83(b) ELECTION.
FOUNDER ACKNOWLEDGES THAT IT IS FOUNDER'S SOLE RESPONSIBILITY, AND NOT THE
COMPANY'S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF FOUNDER
REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS BEHALF.

     H.        GENERAL PROVISIONS

          1.   No Employment or Service Contract.  Nothing in this Agreement
               ---------------------------------
shall confer upon Founder any right to continue in Service for any period of
specific duration or interfere with or otherwise restrict in any way the rights
of the Company (or

                                       7
<PAGE>

any Parent or Subsidiary employing or retaining Founder) or of Founder, which
rights are hereby expressly reserved by each, to terminate Founder's Service at
any time for any reason, with or without cause.

          2.   Notices.  Any notice required or permitted to be given under this
               -------
Agreement shall be given in writing and shall be deemed effective upon personal
delivery, upon delivery by confirmed facsimile or electronic transmission (with
duplicate original sent by U.S.  mail) or upon deposit in the U.S.  mail,
registered or certified, postage prepaid and properly addressed to the party to
be notified at the address indicated below such party's signature line on this
Agreement or at such other address as such party may designate by ten (10) days
advance written notice (under the terms of this paragraph) to all other parties
to this Agreement.

          3.   No Waiver.  The failure of the Company in any instance to
               ---------
exercise the Repurchase Right or the First Refusal Right shall not constitute a
waiver of any other repurchase rights and/or rights of first refusal that may
subsequently anise under the provisions of this Agreement or any other agreement
between the Company and Founder.  No waiver of any breach or condition of this
Agreement shall be deemed to be a waiver of any other or subsequent breach or
condition, whether of like or different nature.

          4.   Cancellation of Shares.  If the Company shall make available, at
               ----------------------
the time and place and in the amount and form provided in this Agreement, the
consideration for the Purchased Shares to be repurchased in accordance with the
provisions of this Agreement, then from and after such time, the person from
whom such shares are to be repurchased shall no longer have any rights as a
holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement).  Such shares shall be deemed
purchased in accordance with the applicable provisions hereof, and the Company
shall be deemed the owner and holder of such shares, whether or not the
certificates therefor have been delivered as required by this Agreement.

     I.        MISCELLANEOUS PROVISIONS

          1.   Further Actions.  The parties hereby agree to take whatever
               ---------------
additional actions and execute whatever additional documents they may deem
necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on either of them or on the Purchased Shares
pursuant to the provisions of this Agreement.

          2.   Amendments and Waivers.  This Agreement represents the entire
               ----------------------
understanding of the parties with respect to the subject matter hereof and
supersedes all previous understandings, whether written or oral

          3.   Governing Law.  This Agreement shall be governed by, and
               -------------
construed in accordance with, the laws of the State of California without resort
to that State's conflict-of-laws rules.

                                       8
<PAGE>

          4.   Counterparts.  This Agreement may be executed in counterparts,
               ------------
each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

          5.   Successors and Assigns.  The terms and provisions of this
               ----------------------
Agreement shall inure to the benefit of, and be binding upon, the Company and
its successors and assigns and upon Founder, Founder's permitted assigns and
legal representatives, heirs and legatees of Founder's estate, whether or not
any such person shall have become a party to this Agreement and have agreed in
writing to join herein and be bound by the terms hereof

          6.   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.

          7.   Severability.  If one or more provisions of this Agreement are
               ------------
held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if
such provision were so excluded and shall be enforceable in accordance with its
terms.

          8.   Capitalized Terms.  Capitalized terms used herein but not defined
               -----------------
herein shall have the meanings given such terms in the Appendix attached hereto.

                                       9
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first indicated above.

                         GREENTREE NUTRITION, INC.

                         By:  /s/ Eric Budin
                              Eric Budin, President

                         Address:  c/o GreenTree Nutrition, Inc.
                                   520 Third Street, Suite 245
                                   San Francisco, CA 94107

                         FOUNDER:/1/

                         DON KENDALL

                         /s/ Donald M. Kendall

                         Address:  c/o GreenTree Nutrition, Inc.
                                   520 Third Street, Suite 245
                                   San Francisco, CA 94107

_____________________
/1/   I have received the Section 83(b) election that was attached hereto as an
Exhibit. I understand that I, and not the Company, will be responsible for
                                  ---
completing the form and filing the election with the appropriate office of the
federal and state tax authorities and that if such filing is not completed
within thirty (30) days after the date of this Agreement, I will forfeit the
opportunity to use Section 83(b).

<PAGE>

                                   EXHIBIT I

                              FOUNDER'S INTEREST

Founder                   LLC Shares              Amount of Shares
------------------------------------------------------------------
Don Kendall               Class A Common Stock           640,000

                          Class B Common Stock           320,000

<PAGE>

                                  EXHIBIT II

                     ASSIGNMENT SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED, __________ hereby sells, assigns and transfers unto
GreenTree Nutrition, Inc. (the "Company") _________________ (________) shares of
the Common Stock of the Company standing in his/her name on the books of the
Company represented by Certificate Number(s) ____________ herewith and does
hereby irrevocably constitute and appoint _____________________________ his/her
attorney-in-fact to transfer such stock on the books of the Company with full
power of substitution in the premises.

Dated: May 14, 1998

                              /s/Donald M Kendall
                              ----------------------------
                              Signature

     This Assignment Separate from Certificate was executed in conjunction with
the terms of the Stock Purchase Agreement by and between the above assignor and
GreenTree, Inc. dated May 14, 1998.

Instruction to Exhibit 11:  Please do not fill in any blanks other than the
               ----------
signature line.  Please sign exactly as you would like your name to appear on
the issued stock certificate.  The purpose of this assignment is to enable the
Company to exercise the Repurchase Right without requiring additional signatures
on the part of Founder.

<PAGE>

                                  EXHIBIT III

                        FEDERAL INCOME TAX CONSEQUENCES

                        AND SECTION 83(b) TAX ELECTION

     Federal Income Tax Consequences and Section 83(b) Election.  Under Section
     ----------------------------------------------------------
83 of the Internal Revenue Code of 1986, as amended (the "Code"), the excess of
the fair market value of the Purchased Shares, on the date any forfeiture
restrictions applicable to such shares lapse, over the Purchase Price paid for
such shares will be reportable as ordinary income on the lapse date.  For this
purpose, the term "forfeiture restrictions" includes the right of the Company to
repurchase the Purchased Shares pursuant to the Repurchase Right.  However,
Founder may elect under Code Section 83(b) to be taxed at the time the Purchased
Shares are acquired, rather than when and as such Purchased Shares cease to be
subject to such forfeiture restrictions.  Such election must be filed with the
Internal Revenue Service within thirty (30) days after the date of the
Agreement.  Even if the fair market value of the Purchased Shares on the date of
the Agreement equals the Purchase Price paid (and thus no tax is payable), the
election must be made to avoid adverse tax consequences in the future.  The form
for making this election is attached as an Exhibit.  FAILURE TO MAKE THIS FILING
                                           -------
WITHIN THE APPLICABLE THIRTY (30) DAY PERIOD WILL RESULT IN THE RECOGNITION OF
ORDINARY INCOME BY FOUNDER AS THE FORFEITURE RESTRICTIONS LAPSE.

<PAGE>

                                   APPENDIX

     The following definitions shall be in effect under the Agreement:

     Agreement shall mean this Stock Purchase Agreement.
     ---------

     Board shall mean the Company's Board of Directors.
     -----

     Cause shall mean Founder's deliberate and consistent refusal to perform
     -----
Founder's duties or deliberate and consistent refusal to conform to or follow
any reasonable policy adopted by the Company's Board, Founder's unauthorized use
or disclosure of the confidential information or trade secrets of the Company,
Founder's conviction of a felony under the laws of the United States or any
state thereof, or Founder's gross misconduct.

     Change in Control shall mean:
     -----------------

               (a) A merger or consolidation in which securities possessing more
than 50% of the total combined voting power of the Company's outstanding
securities are transferred to one or more persons who were not stockholders of
the Company immediately before such merger or consolidation;

               (b) Any other transaction after which one or more persons who
were not stockholders of the Company immediately before such transaction
beneficially own more than 50% of the total combined voting power of the
Company's outstanding securities;

               (c) The sale, transfer or other disposition of all or
substantially all of the Company's assets; or

               (d) The complete liquidation or dissolution of the Company.

     A transaction shall not constitute a Change in Control if its sole purpose
is to change the state of the Company's incorporation or to create a holding
company that will be owned in substantially the same proportions by the persons
who held the Company's securities immediately before such transaction.

     Code shall mean the Internal Revenue Code of 1986, as amended.
     ----

     Common Stock shall mean the Company's common stock.
     ------------

     Company shall mean Promatory Communications, Inc., a Delaware corporation.
     -------

     Market Stand-Off shall mean the market stand-off restriction specified in
     ----------------
Paragraph C.3.

     1933 Act shall mean the Securities Act of 1933, as amended.
     --------

<PAGE>

     Owner shall mean Founder and all subsequent holders of the Purchased Shares
     -----
who derive their chain of ownership through a Permitted Transfer from Founder.

     Parent shall mean any corporation (other than the Company) in an unbroken
     ------
chain of corporations ending with the Company, provided each corporation in the
unbroken chain (other than the Company) owns, at the time of the determination,
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

     Permitted Transfer shall mean (i) a gratuitous transfer of the Purchased
     ------------------
Shares, provided and only if Founder obtains the Company's prior written consent
to such transfer, (ii) a transfer of title to the Purchased Shares effected
pursuant to Founder's will or the laws of intestate succession following
Founder's death or (iii) a transfer to the Company in pledge as security for any
purchase-money indebtedness incurred by Founder in connection with the
acquisition of the Purchased Shares.

     Purchase Price shall have the meaning assigned to such term in Paragraph
     --------------
A.1.
     Purchased Shares shall have the meaning assigned to such term in Paragraph
     ----------------
A.1.

     Recapitalization shall mean any stock split, stock dividend,
     ----------------
recapitalization, combination of shares, exchange of shares or other change
affecting the Company's outstanding Common Stock as a class without the
Company's receipt of consideration.

     Reorganization shall mean any of the following transactions:
     --------------

     (i)   a merger or consolidation in which the Company is not the surviving
           entity;

     (ii)  a sale, transfer or other disposition of all or substantially all of
           the Company's assets;

     (iii) a reverse merger in which the Company is the surviving entity but in
           which the Company's outstanding voting securities are transferred in
           whole or in part to a person or persons different from the persons
           holding those securities immediately prior to the merger; or

     (iv)  any transaction effected primarily to change the state in which the
           Company is incorporated or to create a holding company structure.

     Repurchase Right shall mean the right granted to the Company in accordance
     ----------------
with Article D.

     SEC shall mean the Securities and Exchange Commission.
     ---

     Service shall mean the provision of services to the Company (or any Parent
     -------
or Subsidiary) by a person in his or her capacity as (a) an employee, subject to
the control

<PAGE>

and direction of the employer entity as to both the work to be performed and the
manner and method of performance, (b) a non-employee member of the Board of
Directors or (c) as a consultant.

     Subsidiary shall mean any corporation (other than the Company) in an
     ----------
unbroken chain of corporations beginning with the Company, provided each
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

     Vesting Schedule shall mean the vesting schedule specified in Paragraph D-
     ----------------
3.

Unvested Shares shall mean Purchased Shares in which Purchaser has not vested in
---------------
accordance with Paragraphs D.1 and D.5.

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