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                                                                    Exhibit 4.13

                         COMMON STOCK PURCHASE AGREEMENT

                  This COMMON STOCK PURCHASE AGREEMENT (this "Agreement") is
dated as of July 18, 2001 by and between On2 Technologies, Inc., a Delaware
corporation (the "Company"), and RealNetworks, Inc., a Washington corporation
(the "Purchaser").

                  WHEREAS, the Company and the Purchaser will enter into that
certain Licensing Agreement, dated as of the Closing Date (as defined herein),
substantially in the form of Exhibit A hereto (the "Licensing Agreement").

                  WHEREAS, the Company and the Purchaser will also enter into
that certain Investor Rights Agreement, dated as of the Closing Date,
substantially in the form of Exhibit B hereto (the "Investor Rights Agreement").

                  NOW, THEREFORE, in consideration of the foregoing and the
mutual promises, covenants, representations and warranties set forth herein, the
parties hereto agree as follows:

                                   ARTICLE I

                        PURCHASE AND SALE OF COMMON STOCK

                  Section 1.1. PURCHASE AND SALE OF COMMON STOCK. Subject to the
terms and conditions of this Agreement, on the Closing Date (as defined below),
the Company hereby agrees to sell and issue to the Purchaser and the Purchaser
hereby agrees to purchase from the Company 1,785,714 shares of the Company's
Common Stock. The "Purchase Price" per share shall be equal to the closing price
of a share of Common Stock traded on the American Stock Exchange (the "AMEX")
for the last trading day prior to the Closing Date. As consideration for the
Purchased Shares, on the Closing Date, the Purchaser agrees to pay the Company,
by wire transfer of immediately available funds to an account designated in
writing by the Company, an amount equal to the product of (i) the Purchased
Shares and (ii) the Purchase Price (such amount, the "Consideration").

                  Section 1.2. CLOSING. The closing of the purchase and sale of
the Purchased Shares (the "Closing"), shall take place at the offices of the
Company, 145 Hudson Street, New York, New York 10013 on the third business day
following satisfaction or waiver of all of the conditions set forth in Article
IV, or such other place or on such date as the Purchaser and the Company may
mutually agree upon (the "Closing Date"). At the Closing, the Company shall
deliver to the Purchaser a certificate or certificates that represent the
Purchased Shares against delivery of the Consideration to the Company by the
Purchaser by wire transfer of immediately available funds to an account
designated in writing by the Company. The Company shall provide wire transfer
instructions, signed by an executive officer of the Company and delivered on
Company letterhead, to Purchaser not less than two business days prior to the
Closing. Each party shall deliver all documents, instruments and writings
required to be delivered by such party pursuant to this Agreement at or prior to
the Closing

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                  Section 1.3 PURCHASE PRICE ADJUSTMENT.If, during the sixty-day
period after the Closing Date, the Company issues or sells any shares of capital
stock to an investor for a price per share that is less than the Purchase Price
(such lower price, the "Adjustment Price"), then, as a purchase price
adjustment, the Purchaser shall be entitled to receive an amount (the
"Adjustment Amount") equal to (x) the Consideration LESS (y) the product of the
Adjustment Price multiplied by the number of Purchased Shares, payable at the
Company's option either in cash or in additional shares of Common Stock having a
fair market value equal to the Adjustment Amount; provided, however, that any
adjustment to the Purchase Price made under this Section 1.4 shall be capped so
that the Purchaser will not have acquired more than 19.9% of the Common Stock
outstanding on the Closing Date as a result of such adjustment. Notwithstanding
the foregoing, this Section 1.4 shall not apply to any issuance of any capital
stock in connection with (A) the issuance or sale of shares or options to
purchase shares of the Common Stock to employees, officers, directors and
consultants of the Company and its subsidiaries pursuant to plans or
arrangements approved by the Company's Board of Directors; (B) the issuance of
Common Stock upon conversion of any shares of any series of the Company's
Preferred Stock, the Company's Series A Convertible Debentures due 2006 or any
of the Company's outstanding warrants. The Adjustment Amount shall be delivered
to the Purchaser within ten days of the issuance or sale of such additional
shares of capital stock.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

                  Section 2.1. REPRESENTATION AND WARRANTIES OF THE COMPANY. The
Company hereby makes the following representations and warranties to the
Purchaser, except as otherwise set forth in a written disclosure schedule (the
"Disclosure Schedule") delivered to the Purchaser prior to the date hereof, a
copy of which is attached hereto:

                     (a) ORGANIZATION, GOOD STANDING AND POWER. The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate authority to own,
lease and operate its properties and assets and to carry on its business as now
being conducted. The Company is duly qualified to do business and is in good
standing as a foreign corporation in every jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification
necessary, other than those in which the failure so to qualify would not have
any adverse effect on the business, operations, properties, or financial
condition of the Company that is material and adverse to the Company and its
subsidiaries, taken as a whole, and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the
Company to perform any of its material obligations under this Agreement, the
Licensing Agreement or the Investor Rights Agreement (hereinafter, a "Material
Adverse Effect").

                  (b) AUTHORIZATION, ENFORCEMENT. (i) The Company has the
requisite corporate power and corporate authority to enter into and perform its
obligations under this

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Agreement, the Investor Rights Agreement and the Licensing Agreement, pursuant
to their respective terms, (ii) the execution and delivery of this Agreement,
the Investor Rights Agreement and the Licensing Agreement by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been
duly authorized by all necessary corporate action and no further consent or
authorization of the Company or its Board of Directors or stockholders is
required, and (iii) this Agreement has been duly executed and delivered by the
Company and constitutes a valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, and the Investor
Rights Agreement and the Licensing Agreement will be duly executed and delivered
by the Company at the Closing and will constitute valid and binding obligations
of the Company, enforceable against the Company in accordance with their terms,
except, in each case, as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditors' rights and remedies or by other
equitable principles of general application. The Company has duly and validly
authorized and reserved for issuance shares of Common Stock sufficient in number
for the issuance of the Purchased Shares.

                  (c) CAPITALIZATION. The authorized capital stock of the
Company consists of 100,000,000 shares of Common Stock of which approximately
33,561,265 shares are issued and outstanding and 20,000,000 shares of preferred
stock, par value $0.01 per share, of which 400,000 shares of Series A Preferred
Stock are issued and outstanding, 34,100 shares of Series B Preferred Stock are
issued and outstanding, 1,644,304 shares of Series C Preferred Stock are issued
and outstanding, 924,527 shares of Series C-II Preferred Stock are issued and
outstanding and 2,049,839 shares of Series C-III Preferred Stock are issued and
outstanding. All of the outstanding shares of the Company's Common Stock have
been duly and validly authorized and are fully paid and non-assessable. Except
as set forth in this Agreement and the Investor Rights Agreement and as set
forth in the SEC Documents, no shares of Common Stock are entitled to preemptive
rights or registration rights and there are no outstanding options, warrants,
rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital
stock of the Company. Furthermore, except as set forth in this Agreement and as
set forth in the SEC Documents, there are no contracts, commitments,
understandings, or arrangements by which the Company is or may become bound to
issue additional shares of the capital stock of the Company or options,
securities or rights convertible into shares of capital stock of the Company.
The Company is not a party to any agreement granting registration rights to any
person with respect to any of its equity or debt securities. The Company is not
a party to, and it has no knowledge of, any agreement restricting the voting or
transfer of any shares of the capital stock of the Company. The offer and sale
of all capital stock, convertible securities, rights, warrants, or options of
the Company issued prior to the Closing complied with all applicable federal and
state securities laws, and no stockholder has a right of rescission or damages
with respect thereto which would have a Material Adverse Effect on the Company's
financial condition or operating results. The Company has made available to the
Purchaser true and correct copies of the Company's articles or certificate of
incorporation as in effect on the date hereof (the "Charter"), and the Company's
bylaws as in effect on the date hereof (the "Bylaws"). The Company has not
received any notice

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from the AMEX questioning or threatening the continued inclusion of the Common
Stock on such market.

                  (d) ISSUANCE OF PURCHASED SHARES. The Purchased Shares to be
issued under this Agreement have been duly authorized by all necessary corporate
action and, when paid for and issued in accordance with the terms hereof, the
Purchased Shares shall be validly issued and outstanding, fully paid and
non-assessable, and the Purchaser shall be entitled to all rights accorded to a
holder of Common Stock.

                  (e) NO CONFLICTS. The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated herein do not and will not (i) violate any provision
of the Company's Charter or Bylaws, (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Company is a
party, (iii) create or impose a lien, charge or encumbrance on any property of
the Company under any agreement or any commitment to which the Company is a
party or by which the Company is bound or by which any of its respective
properties or assets are bound, or (iv) result in a violation of any federal,
state, or local statute, rule, regulation, order, judgment or decree (including
any federal or state securities laws and regulations) applicable to the Company
or any of its subsidiaries or by which any property or asset of the Company or
any of its subsidiaries are bound or affected, except, in all cases, for such
conflicts, defaults, termination, amendments, accelerations, cancellations and
violations as would not, individually or in the aggregate, have a Material
Adverse Effect. To the knowledge of the Company, the business of the Company and
its subsidiaries is not being conducted in violation of any laws, ordinances or
regulations of any governmental entity. The Company is not required under any
federal, state or local law, rule or regulation to obtain any consent,
authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its
obligations under this Agreement, or issue and sell the Purchased Shares in
accordance with the terms hereof (other than any filings which may be required
to be made by the Company with the SEC or state securities administrators
subsequent to the Closing and any registration statement which may be filed
pursuant hereto); provided that, for purpose of the representation made in this
sentence, the Company is assuming and relying upon the accuracy of the relevant
representations and agreements of the Purchaser herein.

                  (f) SEC DOCUMENTS, FINANCIAL STATEMENTS. Certain of the Common
Stock of the Company is registered pursuant to Section 12(g) of the Exchange
Act, and, except as disclosed in the SEC Documents, the Company has timely filed
all reports, schedules, forms, statements and other documents required to be
filed by it with the SEC pursuant to the reporting requirements of the Exchange
Act, including material filed pursuant to Section 13(a) or 15(d) of the Exchange
Act (all of the foregoing including filings incorporated by reference therein
being referred to herein as the "SEC Documents"). The Company has delivered or
made available to the Purchaser true and complete copies of the SEC Documents
filed with the SEC since June 16, As of their respective filing dates, the SEC
Documents complied in all material respects with the requirements of the
Exchange Act or the Securities Act, as applicable, and the rules and

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regulations of the SEC promulgated thereunder applicable to such documents, and,
as of their respective filing dates, none of the SEC Documents contained any
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. The
financial statements of the Company included in the SEC Documents comply as to
form in all material respects with applicable accounting requirements under the
United States Generally Accepted Accounting Principles, as those conventions,
rules and procedures are determined by the Financial Accounting Standards Board
("GAAP"), and the published rules and regulations of the SEC or other applicable
rules and regulations with respect thereto. Such financial statements have been
prepared in accordance with GAAP applied on a consistent basis during the
periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or
summary statements), and fairly present in all material respects the financial
position of the Company and its subsidiaries as of the dates thereof and the
results of operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments).

                  (g) SUBSIDIARIES. The SEC Documents set forth each subsidiary
of the Company, showing the jurisdiction of its incorporation or organization
and showing the percentage of the Company's ownership of the outstanding stock
or other interests of such subsidiary. For the purposes of this Agreement,
"subsidiary" shall mean any corporation or other entity of which at least a
majority of the securities or other ownership interests having ordinary voting
power (absolutely or contingently) for the election of directors or other
persons performing similar functions are at the time owned directly or
indirectly by the Company and/or any of its other subsidiaries. All of the
issued and outstanding shares of capital stock of each subsidiary have been duly
authorized and validly issued, and are fully paid and non-assessable. There are
no outstanding preemptive, conversion or other rights, options, warrants or
agreements granted or issued by or binding upon any subsidiary for the purchase
or acquisition of any shares of capital stock of any subsidiary or any other
securities convertible into, exchangeable for or evidencing the rights to
subscribe for any shares of such capital stock. Neither the Company nor any
subsidiary is subject to any obligation (contingent or otherwise) to repurchase
or otherwise acquire or retire any shares of the capital stock of any subsidiary
or any convertible securities, rights, warrants or options of the type described
in the preceding sentence. Neither the Company nor any subsidiary is a party to,
nor has any knowledge of, any agreement restricting the voting or transfer of
any shares of the capital stock of any subsidiary.

                  (h) NO MATERIAL ADVERSE EFFECT. Since the date of the
financial statements contained in the Company's most recently filed Form 10-QSB
or Form 10-KSB, whichever is most current, no Material Adverse Effect has
occurred or exists with respect to the Company, except as disclosed in the SEC
Documents.

                  (i) NO UNDISCLOSED LIABILITIES. Except as disclosed in the SEC
Documents, neither the Company nor any of its subsidiaries has any liabilities,
obligations, claims or losses (whether liquidated or unliquidated, secured or
unsecured, absolute, accrued, contingent or otherwise) that would be required to
be disclosed on a balance sheet of the Company or any subsidiary (including the
notes thereto) in conformity with GAAP which are not

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disclosed in the SEC Documents, other than those incurred in the ordinary course
of the Company's or its subsidiaries' respective businesses since such date and
which, individually or in the aggregate, do not or would not have a Material
Adverse Effect on the Company or its subsidiaries.

                  (j) NO UNDISCLOSED EVENTS OR CIRCUMSTANCES. Since the date of
the financial statements contained in the Company's most recently filed Form
10-QSB or Form 10-KSB, whichever is most current, no event or circumstance has
occurred or exists with respect to the Company or its businesses, properties,
operations or financial condition, that, under applicable law, rule or
regulation, requires public disclosure or announcement prior to the date hereof
by the Company but which has not been so publicly announced or disclosed in the
SEC Documents.

                  (k) INDEBTEDNESS. The SEC Documents reflect all outstanding
secured and unsecured Indebtedness of the Company or any subsidiary, or for
which the Company or any subsidiary has commitments. For the purposes of this
Agreement, "Indebtedness" shall mean (A) any liabilities for borrowed money or
amounts owed in excess of $250,000 (other than trade accounts payable incurred
in the ordinary course of business), (B) all guaranties, endorsements and
contingent obligations in respect of Indebtedness of others, whether or not the
same are or should be reflected in the Company's balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit
or collection or similar transactions in the ordinary course of business; and
(C) the present value of any lease payments in excess of $250,000 due under
leases required to be capitalized in accordance with GAAP. Neither the Company
nor any subsidiary is in material default with respect to any Indebtedness.

                  (l) TITLE TO ASSETS. Each of the Company and the subsidiaries
has good and marketable title to all of its real and personal property reflected
in the SEC Documents, free of any mortgages, pledges, charges, liens, security
interests or other encumbrances, except for those indicated in the SEC Documents
or such that do not cause a Material Adverse Effect. All said leases of the
Company and each of its subsidiaries are valid and subsisting and in full force
and effect.

                  (m) ACTIONS PENDING. There is no action, suit, claim,
investigation or proceeding pending or, to the knowledge of the Company,
threatened against the Company or any subsidiary which questions the validity of
this Agreement or the transactions contemplated hereby or any action taken or to
be taken pursuant hereto or thereto. Except as set forth in the SEC Documents,
there is no material action, suit, claim, investigation or proceeding pending
or, to the knowledge of the Company, threatened, against or involving the
Company, any subsidiary or any of their respective properties or assets. There
are no outstanding orders, judgments, injunctions, awards or decrees of any
court, arbitrator or governmental or regulatory body against the Company or any
subsidiary.

                  (n) COMPLIANCE WITH LAW. The Company and each of its
subsidiaries have all franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals necessary for the
conduct of their respective businesses as now being conducted by them unless the
failure to possess such franchises, permits, licenses, consents

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and other governmental or regulatory authorizations and approvals, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

                  (o) TAXES. The Company and each subsidiary has filed all
material Tax Returns which it is required to file under applicable laws; all
such Tax Returns are true and accurate in all material respects and have been
prepared in compliance with all applicable laws; the Company has paid all
material Taxes due and owing by it or any subsidiary (whether or not such Taxes
are required to be shown on a Tax Return) and has withheld and paid over to the
appropriate taxing authorities all material Taxes which it is required to
withhold from amounts paid or owing to any employee, stockholder, creditor or
other third parties; and since December 31, 1999, the charges, accruals and
reserves for material Taxes with respect to the Company (including any
provisions for deferred income taxes) reflected on the books of the Company are
adequate to cover any Tax liabilities of the Company if its current tax year
were treated as ending on the date hereof.

                  No claim has been made by a taxing authority in a jurisdiction
where the Company does not file tax returns that the Company or any subsidiary
is or may be subject to taxation by that jurisdiction. To the knowledge of the
Company, there are no foreign, federal, state or local tax audits or
administrative or judicial proceedings pending or being conducted with respect
to the Company or any subsidiary; no information related to Tax matters has been
requested by any foreign, federal, state or local taxing authority; and, except
as disclosed above, no written notice indicating an intent to open an audit or
other review has been received by the Company or any subsidiary from any
foreign, federal, state or local taxing authority. The Company (A) has not
executed or entered into a closing agreement pursuant to ss. 7121 of the
Internal Revenue Code or any predecessor provision thereof or any similar
provision of state, local or foreign law; and (B) has not agreed to or is
required to make any adjustments pursuant to ss. 481 (a) of the Internal Revenue
Code or any similar provision of state, local or foreign law by reason of a
change in accounting method initiated by the Company or any of its subsidiaries
or has any knowledge that the IRS has proposed any such adjustment or change in
accounting method, or has any application pending with any taxing authority
requesting permission for any changes in accounting methods that relate to the
business or operations of the Company. The Company has not been a United States
real property holding corporation within the meaning of ss. 897(c)(2) of the
Internal Revenue Code during the applicable period specified in ss.
897(c)(1)(A)(ii) of the Internal Revenue Code.

                  The Company has not made an election under ss. 341(f) of the
Internal Revenue Code. The Company is not liable for the Taxes of another person
that is not a subsidiary of the Company under (A) Treas. Reg. ss. 1.1502-6 (or
comparable provisions of state, local or foreign law), (B) as a transferee or
successor, (C) by contract or indemnity or (D) otherwise. The Company is not a
party to any tax sharing agreement. The Company has not made any payments, is
not obligated to make payments nor is it a party to an agreement that could
obligate it to make any payments that would not be deductible under ss. 280G of
the Internal Revenue Code.

                  For purposes of this Section 2.1(o):

                  "IRS" means the United States Internal Revenue Service.

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                  "TAX" or "TAXES" means federal, state, county, local, foreign,
or other income, gross receipts, ad valorem, franchise, profits, sales or use,
transfer, registration, excise, utility, environmental, communications, real or
personal property, capital stock, license, payroll, wage or other withholding,
employment, social security, severance, stamp, occupation, alternative or add-on
minimum, estimated and other taxes of any kind whatsoever (including, without
limitation, deficiencies, penalties, additions to tax, and interest attributable
thereto) whether disputed or not.

                  "TAX RETURN" means any return, information report or filing
with respect to Taxes, including any schedules attached thereto and including
any amendment thereof.

                  (p) CERTAIN FEES. No brokers, finders or financial advisory
fees or commissions will be payable by the Company or any subsidiary with
respect to the transactions contemplated by this Agreement.

                  (q) OPERATION OF BUSINESS. The Company and each of the
subsidiaries owns or possesses all patents, trademarks, service marks, trade
names, copyrights, licenses and authorizations as set forth in the SEC
Documents, and all rights with respect to the foregoing, which are necessary for
the conduct of its business as now conducted without any conflict to the
knowledge of the Company with the rights of others.

                  (R) INSURANCE. Except as disclosed in the SEC Documents, the
Company carries or will have the benefit of insurance in such amounts and
covering such risks as is adequate for the conduct of its business and the value
of its properties.

                  (S) BOOKS AND RECORDS. To the knowledge of the Company, the
records and documents of the Company and its subsidiaries accurately reflect in
all material respects the information relating to the business of the Company
and the subsidiaries, the location and collection of their assets, and the
nature of all transactions giving rise to the obligations or accounts receivable
of the Company or any subsidiary.

                  (T) MATERIAL AGREEMENTS. Except as set forth in the SEC
Documents, neither the Company nor any subsidiary is a party to any written or
oral contract, instrument, agreement, commitment, obligation, plan or
arrangement, a copy of which would be required to be filed with the SEC as an
exhibit to a registration statement on Form S-1 or other applicable form
(collectively, "Material Agreements") if the Company or any subsidiary were
registering securities under the Securities Act. The Company and each of its
subsidiaries has in all material respects performed all the obligations required
to be performed by them to date under the foregoing agreements, have received no
notice of default and, to the best of the Company's knowledge, are not in
default under any Material Agreement now in effect, the result of which could
cause a Material Adverse Effect. Except as set forth in the SEC Documents, no
written or oral contract, instrument, agreement, commitment, obligation, plan or
arrangement of the Company or of any subsidiary limits or shall limit the
payment of dividends on the Company's Common Stock.

                  (u) TRANSACTIONS WITH AFFILIATES. Except as set forth in the
SEC Documents, there are no loans, leases, agreements, contracts, royalty
agreements, management

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contracts or arrangements or other continuing transactions exceeding $250,000
between (A) the Company, any subsidiaries or, to the Company's knowledge, any of
their respective material customers or suppliers on the one hand, and (B) on the
other hand, any officer, employee, consultant or director of the Company, or any
of its subsidiaries, or, to the Company's knowledge, any person owning 5% or
more of the capital stock of the Company or any subsidiary or, to the Company's
knowledge, any member of the immediate family of such officer, employee,
consultant, director, stockholder or, to the Company's knowledge, any
corporation or other entity controlled by any such officer, employee,
consultant, director or stockholder, or a member of the immediate family of such
officer, employee, consultant, director or stockholder.

                  (V) EMPLOYEES. Neither the Company nor any subsidiary has any
collective bargaining arrangements or agreements covering any of its employees,
except as set forth in the SEC Documents. Except as set forth in the SEC
Documents, neither the Company nor any subsidiary is in breach of any employment
contract, agreement regarding proprietary information, noncompetition agreement,
nonsolicitation agreement, confidentiality agreement, or any other similar
contract or restrictive covenant, relating to the right of any officer, employee
or consultant to be employed or engaged by the Company or such subsidiary. Since
the date of the Company's December 31, 2000 Form 10-KSB, no officer, consultant
or key employee of the Company or any subsidiary whose termination, either
individually or in the aggregate, could have a Material Adverse Effect, has
terminated or, to the knowledge of the Company, has any present intention of
terminating his or her employment or engagement with the Company or any
subsidiary.

                  (W) ABSENCE OF CERTAIN DEVELOPMENTS. Except as provided in SEC
Documents, since the date of the financial statement contained in the most
recently filed Form 10-QSB or Form 10-KSB, whichever is most current, neither
the Company nor any subsidiary has:

                  (i) issued any stock, bonds or other corporate securities or
any rights, options or warrants with respect thereto;

                  (ii) borrowed any amount or incurred or become subject to any
liabilities (absolute or contingent) except current liabilities incurred in the
ordinary course of business which are comparable in nature and amount to the
current liabilities incurred in the ordinary course of business during the
comparable portion of its prior fiscal year, as adjusted to reflect the current
nature and volume of the Company's or such subsidiary's business;

                  (iii) discharged or satisfied any lien or encumbrance or paid
any obligation or liability (absolute or contingent), other than current
liabilities paid in the ordinary course of business;

                  (iv) declared or made any payment or distribution of cash or
other property to stockholders with respect to its stock, or purchased or
redeemed, or made any agreements so to purchase or redeem, any shares of its
capital stock;

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                  (v) sold, assigned or transferred any other tangible assets,
or canceled any debts or claims, except in the ordinary course of business;

                  (vi) sold, assigned or transferred any patent rights,
trademarks, trade names, copyrights, trade secrets or other intangible assets or
intellectual property rights, or disclosed any proprietary confidential
information to any person except to customers in the ordinary course of business
or to the Purchaser or its representatives;

                  (vii) suffered any material losses or waived any rights of
material value, whether or not in the ordinary course of business, or suffered
the loss of any material amount of prospective business;

                  (viii) made any changes in employee compensation except in the
ordinary course of business and consistent with past practices;

                  (ix) made capital expenditures or commitments therefor that
aggregate in excess of $500,000;

                  (x) entered into any other material transaction, whether or
not in the ordinary course of business;

                  (xi) suffered any material damage, destruction or casualty
loss, whether or not covered by insurance;

                  (xii) experienced any material problems with labor or
management in connection with the terms and conditions of their employment; or

                  (xiii) effected any two or more events of the foregoing kind
which in the aggregate would be material to the Company or its subsidiaries.

                  Section 2.2. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.
The Purchaser hereby makes the following representations and warranties to the
Company:

                  (a) ORGANIZATION AND STANDING OF THE PURCHASER. The Purchaser
is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Washington.

                  (b) AUTHORIZATION AND POWER. (i) The Purchaser has the
requisite corporate power and corporate authority to enter into and perform its
obligations under this Agreement, the Investor Rights Agreement and the
Licensing Agreement, pursuant to their respective terms, (ii) the execution and
delivery of this Agreement, the Investor Rights Agreement and the Licensing
Agreement by the Purchaser and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
corporate action and no further consent or authorization of the Purchaser or its
Board of Directors or stockholders is required, and (iii) this Agreement has
been duly executed and delivered by the Purchaser and constitutes a valid and
binding obligation of the Purchaser, enforceable against the Purchaser in
accordance with its terms, and the Investor Rights Agreement and the Licensing

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Agreement will be duly executed and delivered by the Purchaser at the Closing
and will constitute valid and binding obligations of the Purchaser, enforceable
against the Purchaser in accordance with their terms, except, in each case, as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership or
similar laws relating to, or affecting generally the enforcement of, creditors'
rights and remedies or by other equitable principles of general application.

                  (c) NO CONFLICTS. The execution, delivery and performance of
this Agreement and the consummation by the Purchaser of the transactions
contemplated hereby or relating hereto do not and will not (i) result in a
violation of the Purchaser's charter documents or bylaws or (ii) conflict with,
or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of any agreement, indenture or
instrument to which the Purchaser is a party, or result in a violation of any
law, rule, or regulation, or any order, judgment or decree of any court or
governmental agency applicable to the Purchaser or its properties (except for
such conflicts, defaults and violations as would not, individually or in the
aggregate, have a Material Adverse Effect on Purchaser). The Purchaser is not
required to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under this Agreement or to purchase
the Shares in accordance with the terms hereof.

                  (d) FINANCIAL RISKS. The Purchaser acknowledges that it is
able to bear the financial risks associated with an investment in the Purchased
Shares and that it has been given full access to such records of the Company and
the subsidiaries and to the officers of the Company and the subsidiaries as it
has deemed necessary or appropriate to conduct its due diligence investigation.
The Purchaser is capable of evaluating the risks and merits of an investment in
the Purchased Shares by virtue of its experience as an investor and its
knowledge, experience, and sophistication in financial and business matters and
the Purchaser is capable of bearing the entire loss of its investment in the
Purchased Shares.

                  (e) ACCREDITED INVESTOR. The Purchaser is an "accredited
investor" as defined in Regulation D promulgated under the Securities Act.

                  (f) INTENT. The Purchaser is entering into this Agreement for
its own account and not with a view to or for sale in connection with any
distribution of the Common Stock and the Purchaser has no present arrangement
(whether or not legally binding) at any time to sell the Common Stock to or
through any person or entity; provided, however, that by making the
representations herein, the Purchaser does not agree to hold the Common Stock
for any minimum or other specific term and reserves the right to dispose of the
Common Stock at any time in accordance with federal and state securities laws
applicable to such disposition.

                  (g) NOT AN AFFILIATE. Purchaser is not an officer, director or
"affiliate" (as that term is defined in Rule 405 of the Securities Act) of the
Company.

                  (h) MANNER OF SALE. At no time was Purchaser presented with or
solicited by or through any leaflet, public promotional meeting, television
advertisement or any other form of general solicitation or advertising.

                                       11
<Page>

                  (i) GENERAL. The Purchaser understands that the Company is
relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings of the Purchaser set forth herein
in order to determine the suitability of the Purchaser to acquire the Purchased
Shares.

                                   ARTICLE III

                                    COVENANTS

                  Section 3.1. COMPANY COVENANTS. The Company covenants with the
Purchaser as follows:

                  (a) SECURITIES COMPLIANCE. If applicable, the Company shall
notify the AMEX, in accordance with their rules and regulations, of the
transactions contemplated by this Agreement, and shall take all other necessary
action and proceedings as may be required and permitted by applicable law, rule
and regulation, for the legal and valid issuance of the Purchased Shares to the
Purchaser.

                  (b) OTHER AGREEMENTS. The Company shall enter into the
Investor Rights Agreement and the Licensing Agreement.

                  (c) BEST EFFORTS. The Company agrees (i) to use all reasonable
efforts to take, or cause to be taken, all actions and to do, or cause to be
done, all things necessary, proper or advisable to consummate and make effective
the transactions contemplated by this Agreement and the agreements related
hereto; (ii) to execute any documents, instruments or conveyances of any kind
that may be reasonably necessary or advisable to carry out any of the
transactions contemplated hereunder and thereunder; and (iii) to cooperate with
the Purchaser in connection with the foregoing.

                  Section 3.2. PURCHASER COVENANTS. The Purchaser covenants with
the Company as follows:

                  (a) OTHER AGREEMENTS. The Purchaser shall enter into the
Investor Rights Agreement and the Licensing Agreement.

                  (b) BEST EFFORTS. The Purchaser agrees (i) to use all
reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary, proper or advisable to consummate and
make effective the transactions contemplated by this Agreement and the
agreements related hereto; (ii) to execute any documents, instruments or
conveyances of any kind that may be reasonably necessary or advisable to carry
out any of the transactions contemplated hereunder and thereunder; and (iii) to
cooperate with the Company in connection with the foregoing.

                                       12
<Page>

                                   ARTICLE IV

                              CONDITIONS TO CLOSING

                  Section 4.1. CONDITIONS PRECEDENT TO THE OBLIGATION OF THE
COMPANY TO SELL THE PURCHASED SHARES. The obligation hereunder of the Company to
issue and sell the Purchased Shares to the Purchaser is subject to the
satisfaction or waiver, at or before the Closing, of each of the conditions set
forth below. These conditions are for the Company's sole benefit and may be
waived by the Company at any time in its sole discretion.

                  (a) ACCURACY OF THE PURCHASER'S REPRESENTATIONS AND
WARRANTIES. Each of the representations and warranties of the Purchaser shall be
true and correct in all material respects as of the date when made and as of the
Closing Date as though made at that time, except for representations and
warranties that speak as of a particular date.

                  (b) PERFORMANCE BY THE PURCHASER. The Purchaser shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Purchaser at or prior to the Closing Date.

                  (c) AGREEMENTS. The Purchaser shall have entered into the
Licensing Agreement and the Investor Rights Agreement.

                  (d) NO INJUNCTION. No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent
jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

                  (e) NO PROCEEDINGS OR LITIGATION. No action, suit or
proceeding before any arbitrator or any governmental authority shall have been
commenced by any third party, and no investigation by any governmental authority
shall have been threatened, against the Purchaser or the Company or any
subsidiary, or any of the officers, directors or affiliates of the Purchaser
seeking to restrain, prevent or change the transactions contemplated by this
Agreement, or seeking damages in connection with such transactions.

                  Section 4.2. CONDITIONS PRECEDENT TO THE OBLIGATION OF THE
PURCHASER TO CLOSE. The obligation hereunder of the Purchaser to perform its
obligations under this Agreement and to purchase the Purchased Shares is subject
to the satisfaction or waiver, at or before the Closing, of each of the
conditions set forth below. These conditions are for the Purchaser's sole
benefit and may be waived by the Purchaser at any time in its sole discretion.

                  (a) ACCURACY OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES.
Each of the representations and warranties of the Company shall be true and
correct in all material respects as of the date when made and as of the Closing
as though made at that time (except for representations and warranties that
speak as of a particular date).

                  (b) PERFORMANCE BY THE COMPANY. The Company shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions

                                       13
<Page>

required by this Agreement to be performed, satisfied or complied with by the
Company at or prior to the Closing.

                  (c) AGREEMENTS. The Company shall have entered into the
Licensing Agreement and the Investor Rights Agreement.

                  (d) NO INJUNCTION. No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent
jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

                  (e) NO PROCEEDINGS OR LITIGATION. No action, suit or
proceeding before any arbitrator or any governmental authority shall have been
commenced by any third party, and no investigation by any governmental authority
shall have been threatened, against the Purchaser or the Company or any
subsidiary, or any of the officers, directors or affiliates of the Company or
any subsidiary seeking to restrain, prevent or change the transactions
contemplated by this Agreement, or seeking damages in connection with such
transactions.

                                    ARTICLE V

                                   TERMINATION

                  Section 5.1. TERMINATION. Either party may terminate this
Agreement (i) if the other party makes a general assignment for the benefit of
creditors, file a voluntary petition in bankruptcy or for reorganization or
arrangement under the bankruptcy laws, if a petition in bankruptcy is filed
against such party, or if a receiver or trustee is appointed for all or any part
of its property or assets, or (ii) by giving written notice to the other party
in the event of a breach of a material term or condition this Agreement, the
License Agreement or the Investor Rights Agreement by the other party, unless
such breach may be, and is, cured within thirty (30) days after the breaching
party's receipt of notice of breach from the nonbreaching party.

                  Section 5.2. EFFECT OF TERMINATION. In the event of
termination by the Company or the Purchaser, written notice thereof shall
forthwith be given to the other party and the transactions contemplated by this
Agreement shall be terminated without further action by either party. If this
Agreement is terminated as provided in Section 5.1 herein, this Agreement shall
become void and of no further force and effect, except for Sections 6.1 and 6.2,
and Article VII herein. Nothing in this Section 5.2 shall be deemed to release
the Company or the Purchaser from any liability for any breach under this
Agreement, or to impair the rights of the Company and the Purchaser to compel
specific performance by the other party of its obligations under this Agreement.

                                       14
<Page>

                                   ARTICLE VI

                                 INDEMNIFICATION

                  Section 6.1. GENERAL INDEMNITY. For a period of two years from
the Closing Date, the Company agrees to indemnify and hold harmless the
Purchaser and its directors, officers, affiliates, agents, successors and
assigns ("Purchaser Indemnified Parties") from and against any and all losses,
liabilities, deficiencies, costs, damages and expenses (including, without
limitation, reasonable attorney's fees, charges and disbursements) incurred by
the Purchaser Indemnified Parties as a result of any inaccuracy in or breach of
the representations, warranties or covenants made by the Company herein. For a
period of two years from the Closing Date, the Purchaser agrees to indemnify and
hold harmless the Company and its directors, officers, affiliates, agents,
successors and assigns ("Company Indemnified Parties") from and against any and
all losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys fees, charges and disbursements)
incurred by the Company Indemnified Parties as result of any inaccuracy in or
breach of the representations, warranties or covenants made by the Purchaser
herein.

                  Section 6.2. INDEMNIFICATION PROCEDURE. Promptly after receipt
by an indemnified party under this Article VI of notice of the commencement of
any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Article VI, notify the
indemnifying party of the commencement thereof; but the omission so to notify
the indemnifying party will not relieve the indemnifying party from any
liability which it may have to any indemnified party except to the extent of
actual prejudice demonstrated by the indemnifying party. In case any such action
is brought against any indemnified party, and it notifies the indemnifying party
of the commencement thereof, the indemnifying party will be entitled to
participate in, and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, assume the defense thereof, subject to
the provisions herein stated and after notice from the indemnifying party to
such indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Article VI for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation, unless the indemnifying party shall not pursue the
action to its final conclusion. The indemnified party shall have the right to
employ separate counsel in any such action and to participate in the defense
thereof, but the fees and expenses of such counsel shall not be at the expense
of the indemnifying party if the indemnifying party has assumed the defense of
the action with counsel reasonably satisfactory to the indemnified party;
provided that, the fees and expenses of such counsel shall be at the expense of
the indemnifying party if (i) the employment of such counsel has been
specifically authorized in writing by the indemnifying party, or (ii) the named
parties to any such action (including any impleaded parties) include both the
indemnified party and the indemnifying party and the indemnified party shall
have been advised by such counsel that there may be one or more legal defenses
available to the indemnifying party different from or in conflict with any legal
defenses which may be available to the indemnified party (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of the indemnified party, it being understood, however, that the
indemnifying party shall, in connection with any one such action or separate but
substantially similar or related

                                       15
<Page>

actions in the same jurisdiction arising out of the same general allegations or
circumstances, be liable only for the reasonable fees and expenses of one
separate firm of attorneys for the indemnified party, which firm shall be
designated in writing by the indemnified party and be approved by the
indemnifying party). No settlement of any action against an indemnified party
shall be made without the prior written consent of the indemnified party, which
consent shall not be unreasonably withheld.

                  All fees and expenses of the indemnified party (including
reasonable costs of defense and investigation in a manner not inconsistent with
this Section and all reasonable attorneys' fees and expenses) shall be paid to
the indemnified party, as incurred, within ten (10) business days of written
notice thereof to the indemnifying party; provided, that the indemnifying party
may require such indemnified party to undertake to reimburse all such fees and
expenses to the extent it is finally judicially determined that such indemnified
party is not entitled to indemnification hereunder.

                                   ARTICLE VII

                                  MISCELLANEOUS

                  Section 7.1. FEES AND EXPENSES. Each party shall pay all of
its own fees and expenses related to the transactions contemplated by this
Agreement.

                  Section 7.2. SPECIFIC ENFORCEMENT. The Company and the
Purchaser acknowledge and agree that irreparable damage would occur in the event
that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or
cure breaches of the provisions of this Agreement and to enforce specifically
the terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

                  Section 7.3. ENTIRE AGREEMENT; AMENDMENT. This Agreement,
together with the Investor Rights Agreement and the Licensing Agreement,
contains the entire understanding of the parties with respect to the matters
covered hereby and, except as specifically set forth herein, neither the Company
nor the Purchaser makes any representation, warranty, covenant or undertaking
with respect to such matters. No provision of this Agreement may be waived or
amended other than by a written instrument signed by the party against whom
enforcement of any such amendment or waiver is sought.

                  Section 7.4. NOTICES. Any notice, demand, request, waiver or
other communication required or permitted to be given hereunder shall be in
writing and shall be effective (a) upon hand delivery or facsimile at the
address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day
following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second
business day

                                       16
<Page>

following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:

If to the Company:         145 Hudson Street
                           New York, New York 10013
                           Attn: Chief Financial Officer
                           With a copy to:  General Counsel
                           Tel: (917) 237-0500
                           Fax: (917) 237-1544

If to Purchaser:           2601 Elliott Avenue, Suite 1000
                           Seattle, WA  98121
                           Attention:  Senior Vice President--Media Systems
                           With a copy to:  General Counsel
                           Telephone:  (206) 674-2700
                           Facsimile:  (206) 674-2695

                  Any party hereto may from time to time change its address for
notices by giving written notice of such changed address to the other party
hereto in accordance herewith.

                  Section 7.5. WAIVERS. No waiver by either party of any
default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver
of any other provision, condition or requirement hereof, nor shall any delay
or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right accruing to it thereafter.

                  Section 7.6. HEADINGS. The article, section and subsection
headings in this Agreement are for convenience only and shall not constitute a
part of this Agreement for any other purpose and shall not be deemed to limit or
affect any of the provisions hereof.

                  Section 7.7. SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
assigns. The parties hereto may not amend this Agreement or any rights or
obligations hereunder without the prior written consent of the Company and each
Purchaser to be affected by the amendment. After Closing, the assignment by a
party to this Agreement of any rights hereunder shall not affect the obligations
of such party under this Agreement.

                  Section 7.8. NO THIRD PARTY BENEFICIARIES. This Agreement is
intended for the benefit of the parties hereto and their respective permitted
successors and assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other person.

                  Section 7.9. GOVERNING LAW. This Agreement shall be governed
by and construed in accordance with the internal laws of the State of New York,
without giving effect to the choice of law provisions.

                                       17
<Page>

                  Section 7.10. COUNTERPARTS. This Agreement may be executed in
any number of counterparts, all of which taken together shall constitute one and
the same instrument and shall become effective when counterparts have been
signed by each party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart. Execution may be
made by delivery by facsimile.

                  Section 7.11. PUBLICITY. Unless required by applicable law,
neither party shall issue a press release or any other public statement or
announcement with respect to this Agreement or the transactions contemplated
hereby without obtaining the prior written consent of the other party, not to be
unreasonably withheld.

                  Section 7.12. SEVERABILITY. The provisions of this Agreement
are severable and, in the event that any court or officials of any regulatory
agency of competent jurisdiction shall determine that any one or more of the
provisions or part of the provisions contained in this Agreement shall, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
or part of a provision of this Agreement and this Agreement shall be reformed
and construed as if such invalid or illegal or unenforceable provision, or part
of such provision, had never been contained herein, so that such provisions
would be valid, legal and enforceable to the maximum extent possible, so long as
such construction does not materially adversely effect the economic rights of
either party hereto.

                  Section 7.13. FURTHER ASSURANCES. From and after the date of
this Agreement, upon the request of the Purchaser or the Company, each of the
Company and the Purchaser shall execute and deliver such instruments, documents
and other writings as may be reasonably necessary or desirable to confirm and
carry out and to effectuate fully the intent and purposes of this Agreement.

                            [Signature Page Follows]

                                       18
<Page>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of this
__ day of July, 2001.

                                            ON2 TECHNOLOGIES, INC.

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

                                            REALNETWORKS, INC.

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

                                       19
<Page>

                                    EXHIBIT A

                          [Form of Licensing Agreement]

                                    EXHIBIT B

                       [Form of Investor Rights Agreement]

                               DISCLOSURE SCHEDULE

                          [Attach Disclosure Schedule]

                                       20<Page>

                                                                    Exhibit 4.14

                            INVESTOR RIGHTS AGREEMENT

                  THIS INVESTOR RIGHTS AGREEMENT, dated as of July 18, 2001,
between RealNetworks, Inc., a Washington corporation (the "Purchaser"), and On2
Technologies, Inc., a Delaware corporation (the "Company").

                  WHEREAS, the parties hereto have entered into a Common Stock
Purchase Agreement, dated as of July 18, 2001 (the "Purchase Agreement"). Terms
not defined herein shall have the meanings ascribed to them in the Purchase
Agreement. Pursuant to the Purchase Agreement, the Purchaser has agreed to
purchase the Purchased Shares and Warrants;

                  WHEREAS, the Company desires to grant to the Purchaser the
registration rights set forth herein with respect to the Purchased Shares and
the Common Stock underlying the Warrants (collectively, the "Securities") and
the other rights set forth herein;

                  WHEREAS, the Company and the Purchaser have also entered into
a Licensing Agreement, dated the date hereof (the "Licensing Agreement").

                  WHEREAS, each of the parties hereto acknowledges and agrees
that the execution and delivery of the Purchase Agreement and the Licensing
Agreement by such party is a material term, condition and inducement to the
other party to enter into this Agreement.

                  NOW, THEREFORE, the parties hereto mutually agree as follows:

                  SECTION 1. REGISTRABLE SECURITIES. As used herein the term
"Registrable Security" means the Securities until (i) all Securities have been
disposed of pursuant to the Registration Statement (as defined herein), (ii) all
Securities have been sold under circumstances under which all of the applicable
conditions of Rule 144 (or any similar provision then in force) ("Rule 144")
under the Securities Act of 1933, as amended (the "Securities Act"), are met,
(iii) all Securities have been otherwise transferred to persons who may trade
such Securities without restriction under the Securities Act, and the Company
has delivered a new certificate or other evidence of ownership for such
Securities not bearing a restrictive legend or (iv) such time as, in the opinion
of counsel to the Company, all Securities may be sold without any time, volume
or manner limitations pursuant to Rule 144(k) (or any similar provision then in
effect) under the Securities Act. The term "Registrable Securities" means any
and/or all of the securities falling within the foregoing definition of a
"Registrable Security." In the event of any merger, reorganization,
consolidation, recapitalization or other change in corporate structure affecting
the Common Stock, such adjustment shall be deemed to be made in the definition
of "Registrable Security" as is appropriate in order to prevent any dilution or
enlargement of the rights granted pursuant to this Agreement.

                  SECTION 2. RESTRICTIONS ON TRANSFER. The Purchaser
acknowledges and understands that in the absence of an effective Registration
Statement authorizing the resale of the Securities as provided herein, the
Securities are "restricted securities" as defined in Rule 144.

<Page>

The Purchaser understands that no disposition or transfer of the Securities may
be made by Purchaser in the absence of (i) an opinion of counsel to the
Purchaser, in form and substance reasonably satisfactory to the Company, that
such transfer may be made without registration under the Securities Act or (ii)
such registration.

                  With a view to making available to the Purchaser the benefits
of Rule 144, the Company agrees to:

                  (a) comply with the provisions of paragraph (c)(1) of Rule
144; and

                  (b) file with the Securities and Exchange Commission (the
"Commission") in a timely manner all reports and other documents required to be
filed by the Company pursuant to Section 13 or 15(d) under the Exchange Act;
and, if at any time it is not required to file such reports but in the past had
been required to or did file such reports, it will, upon the request of the
Purchaser, make available other information as required by, and so long as
necessary to permit sales of, its Registrable Securities pursuant to Rule 144.

                  Each certificate representing the Securities shall be stamped
or otherwise imprinted with a legend substantially in the following form (in
addition to any legend required under applicable state securities laws or
otherwise):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "SECURITIES
ACT"), NOR UNDER ANY STATE SECURITIES LAW AND SUCH SECURITIES MAY NOT BE
PLEDGED, SOLD, ASSIGNED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
TO REGISTRATION UNDER THE SECURITIES ACT OR AN AVAILABLE EXEMPTION FROM
REGISTRATION.

THE SALE, ASSIGNMENT, TRANSFER, PLEDGE AND OTHER DISPOSITION OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY THE INVESTOR RIGHTS AGREEMENT
(THE "INVESTOR RIGHTS AGREEMENT"), DATED JULY 18, 2001. A COPY OF THE INVESTOR
RIGHTS AGREEMENT IS ON FILE WITH THE CORPORATE SECRETARY AT THE PRINCIPAL
EXECUTIVE OFFICES OF THE COMPANY. A COPY THEREOF MAY BE OBTAINED AT NO COST UPON
WRITTEN REQUEST THEREFOR MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE
CORPORATE SECRETARY AT THE PRINCIPAL OFFICES OF THE COMPANY.

                  The Purchaser consents to the Company's making a notation on
its records and giving instructions to any transfer agent of the Securities in
order to implement the restrictions on transfer established in this Agreement.

                  SECTION 3. REGISTRATION RIGHTS WITH RESPECT TO THE SECURITIES.

                  (a) PIGGYBACK REGISTRATION.

                                       2
<Page>

                  (i) NOTICE. If at any time or from time to time the Company
         shall determine to register any shares of Common Stock for its own
         account or the account of any person who holds securities of the
         Company that are "restricted securities" under Rule 144, other than (A)
         a registration on Form S-4 or S-8 or another form not generally
         available for registering the Restricted Securities for sale to the
         public or (B) any registration comprised in whole or in substantial
         part of shares underlying stock options or restricted shares issued
         under an incentive compensation plan that has been adopted by the
         Company or its predecessor, the Company will give to the Purchaser
         notice as soon as practicable prior to filing the registration
         statement and include in such registration all Registrable Securities
         specified in one or more written requests which have been made within
         ten business days after receipt of such written notice from the Company
         by the Purchaser, except as set forth in Section 3(a)(ii).

                  (ii) REGISTERED PUBLIC OFFERING INVOLVING AN UNDERWRITING. If
         the registration of shares of Common Stock is for a registered public
         offering involving an underwritten offering, the Company shall so
         advise the Purchaser as a part of the written notice given pursuant to
         Section 3(a)(i). In such event, the right of the Purchaser to
         registration pursuant to this section shall be conditioned upon its
         participation in such underwriting and the inclusion of its Registrable
         Securities in the underwriting to the extent provided herein. If the
         Purchaser proposes to distribute its securities through such
         underwriting, the Purchaser shall (together with the Company and the
         other holders of Common Stock distributing their securities through
         such underwriting) enter into an underwriting agreement in customary
         form with the underwriter or underwriters selected for such
         underwriting by the Company. Notwithstanding any provision of Section
         3(a)(ii), if the managing underwriter determines that marketing factors
         require a limitation of the number of shares to be underwritten, the
         managing underwriter may limit the number of Registrable Securities to
         be included in the underwriting or may limit the number of Registrable
         Securities to be included in such registration. The Company shall so
         advise the Purchaser, and the number of shares of Registrable
         Securities and other securities that may be included in the
         registration and underwriting shall be allocated in the following
         priority: (1) if the registration is a primary offering of Common Stock
         by the Company, then first to the Company, and second, among the
         Purchaser and all other holders of Common Stock that hold rights
         granted by the Company to cause shares of Common Stock held by them to
         be included in such registration or underwriting, in proportion, as
         nearly as practicable, to the respective amounts of Registrable
         Securities held by the Purchaser and each other such holder that are
         requested to be included in the registration or underwriting and (2) if
         the registration is an offering by holders of Common Stock exercising
         their "demand" registration rights, then first to such holders of
         Common Stock exercising such demand registration rights, and second,
         among the Purchaser and all other holders of Common Stock that hold
         rights granted by the Company to cause shares of Common Stock held by
         them to be included in such registration or underwriting, in
         proportion, as nearly as practicable, to the respective amounts of
         Registrable Securities held by the Purchaser and each other such holder
         that are requested to be included in the registration or underwriting.
         To facilitate the allocation of shares in accordance with the above
         provisions, the underwriter may round

                                       3
<Page>

         the number of shares allocated to the stockholders to the nearest one
         hundred shares. If the Purchaser disapproves of the terms of any such
         underwriting, it may elect to withdraw therefrom by written notice to
         the Company. In the event of any such withdrawal, the Company will
         include in any such registration in lieu thereof, on a pro rata basis,
         any additional shares of Common Stock which were requested to be
         included by any other piggyback right holders, which were excluded
         pursuant to the above-described underwriter limitation, up to the
         maximum set by such underwriter.

                  (b) DEMAND REGISTRATION

                  (i) NOTICE OF REGISTRATION. At any time after the date hereof,
         the Purchaser may demand that a registration statement be filed with
         the Commission within 30 days after the date on which the Company has
         received such request, subject to the provisions of this Section 3(b)
         and Section 3(e), or, unless, due to circumstances not within the
         Company's direct control, the audit of the Company's financial
         statements or of the financial statements of any entity or business
         acquired or to be acquired by the Company is not complete, in which
         case the Company shall have an additional period not to exceed 30 days.
         Subject to the terms and conditions set forth below in this Section
         3(b), Section 3(f) and Section 5, upon the Company's receipt from the
         Purchaser of a written request that the Company effect a registration
         under the Securities Act with respect to any of its Registrable
         Securities, the Company will use its diligent best efforts to effect
         any such registration (including, without limitation, the execution of
         an undertaking to file post-effective amendments and appropriate
         qualifications and approvals under the laws and regulations applicable
         to the Company of any applicable governmental agencies and authorities,
         including applicable blue sky or other state securities laws) as may be
         so requested and as would permit or facilitate the sale and
         distribution of all of the Registrable Securities as are specified in
         such request, provided, that (a) the Purchaser may not make its request
         within 180 days following the effectiveness of any registered public
         offering of Common Stock, unless permitted by applicable securities
         laws; (b) before filing any such registration statement or any
         amendments or supplements thereto, the Company will (i) furnish to the
         Purchaser copies of all such documents proposed to be filed, which
         documents will be subject to the review of the Purchaser and its
         counsel, and (ii) give the Purchaser and its representatives the
         opportunity to conduct a reasonable investigation of the records and
         business of the Company and to participate in the preparation of any
         such registration statement or any amendments or supplements thereto;
         and (c) the Company shall not be obligated to take any action to effect
         such registration pursuant to this Section 3(b)(i) after the Company
         has effected two such registrations pursuant to this Section 3(b)(i);
         provided, that such registrations have been declared or ordered
         effective by the Commission and, if the method of distribution is a
         registered public offering involving an underwritten offering, all such
         shares registered thereby shall have been sold pursuant thereto. With
         respect to any registration requested pursuant to this Section 3(b)(i),
         the Company may include in such registration any other shares of Common
         Stock, subject to the restrictions set forth in Section 3(b)(ii), as to
         which it is obligated to include such shares pursuant to agreements
         requiring such registration.

                                       4
<Page>

                  (ii) REGISTERED PUBLIC OFFERING INVOLVING AN UNDERWRITING. If
         the Purchaser intends to distribute the Registrable Securities covered
         by its request under Section 3(b)(i) by means of an underwriting, it
         shall so advise the Company as a part of its request made pursuant to
         Section 3(b)(i). In such event, the Purchaser shall negotiate in good
         faith with a nationally recognized underwriter or underwriters selected
         by the Purchaser and reasonably satisfactory to the Company with regard
         to the underwriting of such requested registration. The Company shall
         (together with the Purchaser and all holders of Common Stock proposing
         to distribute their securities through such underwriting) enter into an
         underwriting agreement in customary form with the underwriter or
         underwriters selected pursuant to this Section 3(b)(ii).
         Notwithstanding any other provision of this Section 3(b), if the
         underwriter determines that marketing factors require a limitation on
         the number of shares to be underwritten, the underwriter may (subject
         to the allocation priority set forth below) limit the number of
         Registrable Securities to be included in the registration and
         underwriting. The Company shall so advise all holders of securities
         requesting registration, and the number of shares of securities that
         are entitled to be included in the registration and underwriting shall
         be allocated in the following priority: first, among the Purchaser's
         Registrable Securities; and second, among all other stockholders in
         proportion, as nearly as practicable, to the respective amounts of
         securities which they had requested to be included in such registration
         at the time of filing the registration statement. To facilitate the
         allocation of shares in accordance with the above provisions, the
         underwriter may round the number of shares allocated to the
         stockholders to the nearest one hundred shares.

                  (c) LOCKUP AGREEMENT. In consideration for the Company's
performance of its obligations under this Agreement, the Purchaser will, in
connection with any registration of any Restricted Securities in an underwritten
offering, at the request of the Company or the underwriters managing any
underwritten offering of the Company's securities, agree not to sell, make any
short sale of, loan, grant any option for the purchase of, or otherwise dispose
of any Restricted Securities (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 90 days) from the effective
date of such registration as the Company and the underwriters may specify, so
long as all executive officers and directors of the Company and any other
stockholders similarly situated to the Purchaser are bound by a comparable
obligation.

                  (d) All fees, disbursements and out-of-pocket expenses and
costs incurred by the Company in connection with the preparation and filing of
the Registration Statement under subparagraphs 3(a) and 3(b) and in complying
with applicable securities and Blue Sky laws (including, without limitation, all
attorneys' fees of the Company) shall be borne by the Company. The Purchaser
shall bear the cost of underwriting and/or brokerage discounts, fees and
commissions, if any, applicable to the Securities being registered and the fees
and expenses of its counsel. The Purchaser and its counsel shall have a
reasonable period to review the proposed Registration Statement or any amendment
thereto, prior to filing with the Commission, and the Company shall provide the
Purchaser with copies of any comment letters received from the Commission with
respect thereto within two (2) business days of receipt thereof. The Company
shall make reasonably available for inspection by Purchaser, any

                                       5
<Page>

underwriter participating in any disposition pursuant to the Registration
Statement, and any attorney, accountant or other agent retained by the Purchaser
or any such underwriter all relevant financial and other records, pertinent
corporate documents and properties of the Company and its subsidiaries, and
cause the Company's officers, directors and employees to supply all information
reasonably requested by the Purchaser or any such underwriter, attorney,
accountant or agent in connection with the Registration Statement, in each case,
as is customary for similar due diligence examinations; PROVIDED, HOWEVER, that
all records, information and documents that are designated in writing by the
Company, in good faith, as confidential, proprietary or containing any material
non-public information shall be kept confidential by the Purchaser and any such
underwriter, attorney, accountant or agent, unless such disclosure is made
pursuant to judicial process in a court proceeding (after first giving the
Company an opportunity promptly to seek a protective order or otherwise limit
the scope of the information sought to be disclosed) or is required by law, or
such records, information or documents become available to the public generally
or through a third party not in violation of an accompanying obligation of
confidentiality; and PROVIDED FURTHER that, if the foregoing inspection and
information gathering would otherwise disrupt the Company's conduct of its
business, such inspection and information gathering shall, to the maximum extent
possible, be coordinated on behalf of the Purchaser and the other parties
entitled thereto by one firm of counsel designated by and on behalf of the
majority in interest of Purchaser and other parties. The Company shall qualify
any of the securities for sale in such states as the Purchaser reasonably
designates and shall furnish indemnification in the manner provided in Section 6
hereof. However, the Company shall not be required to qualify in any state which
will require an escrow or other restriction relating to the Company and/or the
sellers, or which will require the Company to qualify to do business in such
state or require the Company to file therein any general consent to service of
process. The Company at its expense will supply the Purchaser with copies of the
Registration Statement and the prospectus included therein and other related
documents in such quantities as may be reasonably requested by the Purchaser.

                  (e) The Company shall not be required by this Section 3 to
include the Purchaser's Securities in any Registration Statement which is to be
filed if, in the opinion of counsel for both the Purchaser and the Company (or,
should they not agree, in the opinion of another counsel experienced in
securities law matters acceptable to counsel for the Purchaser and the Company)
the proposed offering or other transfer as to which such registration is
requested is exempt from applicable federal and state securities laws and would
result in all purchasers or transferees obtaining securities which are not
"restricted securities", as defined in Rule 144 under the Securities Act.

                  (f) The Company's obligation to file a registration statement
under Section 3(a) or Section 3(b), or to cause a registration statement to
become and remain effective under such sections, shall be suspended for a period
not to exceed 90 days (and for periods not exceeding, in the aggregate, 120 days
in any 12-month period) if there exists at the time material non-public
information relating to the Company which, in the reasonable opinion of the
Board of Directors of the Company, should not be disclosed.

                  SECTION 4. COOPERATION WITH COMPANY. The Purchaser will
cooperate with the Company in all respects in connection with this Agreement,
including timely supplying all

                                       6
<Page>

information reasonably requested by the Company (which shall include all
information regarding the Purchaser and proposed manner of sale of the
Registrable Securities required to be disclosed in the Registration Statement)
and executing and returning all documents reasonably requested in connection
with the registration and sale of the Registrable Securities and entering into
and performing its obligations under any underwriting agreement, if the offering
is an underwritten offering, in usual and customary form, with the managing
underwriter or underwriters of such underwritten offering.

                  SECTION 5. REGISTRATION PROCEDURES. If and whenever the
Company is required by any of the provisions of this Agreement to effect the
registration of any of the Registrable Securities under the Securities Act, the
Company shall (except as otherwise provided in this Agreement), as expeditiously
as possible, subject to the Purchaser's assistance and cooperation as reasonably
required:

                  (a) prepare and file with the Commission, a registration
statement (on Form S-3 and/or S-1, or other appropriate form of registration
statement) under the Securities Act (the "Registration Statement"), so as to
permit a public offering and resale of the Registrable Securities under the
Securities Act by Purchaser. The Company shall use its best efforts to cause the
Registration Statement to become effective within ninety (90) days (or one
hundred twenty (120) days in the event of a "full review" by the Commission) of
the date such Registration Statement is filed or five (5) days after clearance
by the Commission and will within said five (5) days request acceleration of
effectiveness. The Company will notify Purchaser of the effectiveness of the
Registration Statement within one business day of such event. The Company will
maintain the Registration Statement or post-effective amendment filed under this
Section 5 hereof effective under the Securities Act until the earliest of (i)
the date that all of the Registrable Securities have been sold pursuant to the
Registration Statement, or (ii) 180 days after the effective date of such
Registration Statement.

                  (b) prepare and file with the Commission such amendments and
supplements to the Registration Statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective and
to comply with the provisions of the Securities Act with respect to the sale or
other disposition of all securities covered by such registration statement
whenever the Purchaser of such Registrable Securities shall desire to sell or
otherwise dispose of the same (including prospectus supplements with respect to
the sales of securities from time to time in connection with a registration
statement pursuant to Rule 415 promulgated under the Securities Act) and (ii)
take all lawful action such that each of (A) the Registration Statement and any
amendment thereto does not, when it becomes effective, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and
(B) the prospectus forming part of the Registration Statement, and any amendment
or supplement thereto, does not at any time during the period that the
registration statement is effective on the date thereof include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

                                       7
<Page>

                  (c) prior to the filing with the Commission of any
Registration Statement (including any amendments thereto) and the distribution
or delivery of any prospectus (including any supplements thereto), provide draft
copies thereof to the Purchaser and reflect in such documents all such comments
as the Purchaser (and its counsel) reasonably may propose and (ii) furnish to
the Purchaser such numbers of copies of a prospectus including a preliminary
prospectus or any amendment or supplement to any prospectus, as applicable, in
conformity with the requirements of the Securities Act, and such other
documents, as the Purchaser may reasonably request in order to facilitate the
public sale or other disposition of the securities owned by the Purchaser;

                  (d) register and qualify the Registrable Securities covered by
the Registration Statement under state blue sky laws (subject to the limitations
set forth in Section 3(d) above), and do any and all other acts and things which
may be reasonably necessary or advisable to enable the Purchaser to consummate
the public sale or other disposition in such jurisdiction of the securities
owned by the Purchaser, except that the Company shall not for any such purpose
be required to qualify to do business as a foreign corporation in any
jurisdiction wherein it is not so qualified or to file therein any general
consent to service of process or to subject itself to taxation in any such
jurisdiction;

                  (e) list such Registrable Securities on the AMEX, and any
other exchange on which the Common Stock of the Company is then listed, if the
listing of such Registrable Securities is then permitted under the rules of such
exchange;

                  (f) notify the Purchaser at any time when a prospectus
relating thereto covered by the Registration Statement is required to be
delivered under the Securities Act, of the happening of any event of which it
has knowledge as a result of which the prospectus included in the Registration
Statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
then existing, and the Company shall prepare and file a curative amendment under
Section 5(b) as quickly as commercially possible;

                  (g) as promptly as practicable after becoming aware of such
event, notify the Purchaser who holds Registrable Securities being sold (or, in
the event of an underwritten offering, the managing underwriters) of the
issuance by the Commission or any state authority of any stop order or other
suspension of the effectiveness of the Registration Statement at the earliest
possible time and take all lawful action to effect the withdrawal, recission or
removal of such stop order or other suspension;

                  (h) cooperate with the Purchaser to facilitate the timely
preparation and delivery of certificates for the Registrable Securities to be
offered pursuant to the Registration Statement and enable such certificates for
the Registrable Securities to be in such denominations or amounts, as the case
may be, as the Purchaser reasonably may request and registered in such names as
the Purchaser may request; and, within three (3) business days after a
Registration Statement which includes Registrable Securities is declared
effective by the Commission, deliver and cause legal counsel selected by the
Company to deliver to the transfer agent for the Registrable Securities (with
copies to the Purchaser whose Registrable Securities

                                       8
<Page>

are included in such Registration Statement) an appropriate instruction and, to
the extent necessary, an opinion of such counsel;

                  (i) take all such other lawful actions reasonably necessary to
expedite and facilitate the disposition by the Purchaser of its Registrable
Securities in accordance with the intended methods therefor provided in the
prospectus which are customary for issuers to perform under the circumstances;

                  (j) in the event of an underwritten offering, promptly include
or incorporate in a prospectus supplement or post-effective amendment to the
Registration Statement such information as the managing underwriters reasonably
agree should be included therein and to which the Company does not reasonably
object and make all required filings of such prospectus supplement or
post-effective amendment as soon as practicable after it is notified of the
matters to be included or incorporated in such prospectus supplement or
post-effective amendment; and

                  (k) maintain a transfer agent for its Common Stock.

                  SECTION 6. INDEMNIFICATION.

                  (a) The Company agrees to indemnify and hold harmless the
Purchaser and its directors, officers, employees and agents and each person, if
any, who controls the Purchaser within the meaning of the Securities Act
(collectively, the "Purchaser Indemnified Parties") against any losses, claims,
damages or liabilities, joint or several (which shall, for all purposes of this
Agreement, include, but not be limited to, all reasonable costs of defense and
investigation and all reasonable attorneys' fees), to which the Purchaser
Indemnified Parties may become subject, under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Registration Statement, or any
related preliminary prospectus, final prospectus or amendment or supplement
thereto, in each case as of the respective dates thereof, or arise out of or are
based upon 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, in each case as of the respective dates thereof; PROVIDED, HOWEVER,
that the Company will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
the Registration Statement, preliminary prospectus, final prospectus or
amendment or supplement thereto in reliance upon, and in conformity with,
written information furnished to the Company by the Purchaser Indemnified
Parties specifically for use in the preparation thereof. This indemnity
agreement will be in addition to any liability that the Company may otherwise
have.

                  (b) The Purchaser agrees that it will indemnify and hold
harmless the Company and its directors, officers, employees and agents and each
person, if any, who controls the Company within the meaning of the Securities
Act (collectively, the "Company Indemnified Parties"), against any losses,
claims, damages or liabilities (which shall, for all purposes of this Agreement,
include, but not be limited to, all reasonable costs of defense and
investigation and

                                       9
<Page>

all reasonable attorneys' fees) to which the Company Indemnified Parties may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact contained in the Registration Statement, or any related preliminary
prospectus, final prospectus or amendment or supplement thereto, or arise out of
or are based upon the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, but in each case only to the extent that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in the Registration Statement, preliminary prospectus, final prospectus or
amendment or supplement thereto in reliance upon, and in conformity with,
written information furnished to the Company by the Purchaser specifically for
use in the preparation thereof. This indemnity agreement will be in addition to
any liability which the Purchaser may otherwise have. Notwithstanding anything
to the contrary herein, the Purchaser shall not be liable under this Section
6(b) for any amount in excess of the gross proceeds to the Purchaser as a result
of the sale of Registrable Securities pursuant to the Registration Statement.

                  (c) Promptly after receipt by an indemnified party under this
Section 6 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section 6, notify the indemnifying party of the commencement thereof;
but the omission so to notify the indemnifying party will not relieve the
indemnifying party from any liability which it may have to any indemnified party
except to the extent of actual prejudice demonstrated by the indemnifying party.
In case any such action is brought against any indemnified party, and it
notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate in, and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, assume the defense
thereof, subject to the provisions herein stated and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified
party under this Section 6 for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation, unless the indemnifying party shall not
pursue the action to its final conclusion. The indemnified party shall have the
right to employ separate counsel in any such action and to participate in the
defense thereof, but the fees and expenses of such counsel shall not be at the
expense of the indemnifying party if the indemnifying party has assumed the
defense of the action with counsel reasonably satisfactory to the indemnified
party; provided that the fees and expenses of such counsel shall be at the
expense of the indemnifying party if (i) the employment of such counsel has been
specifically authorized in writing by the indemnifying party, or (ii) the named
parties to any such action (including any impleaded parties) include both the
indemnified party and the indemnifying party and the indemnified party shall
have been advised by such counsel that there may be one or more legal defenses
available to the indemnifying party different from or in conflict with any legal
defenses which may be available to the indemnified party (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of the indemnified party, it being understood, however, that the
indemnifying party shall, in connection with any one such action or separate but
substantially similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances, be liable only for the reasonable
fees and expenses of one separate firm of

                                       10
<Page>

attorneys for the indemnified party, which firm shall be designated in writing
by the indemnified party and be reasonably approved by the indemnifying party).
No settlement of any action against an indemnified party shall be made without
the prior written consent of the indemnified party, which consent shall not be
unreasonably withheld.

                  All fees and expenses of the indemnified party (including
reasonable costs of defense and investigation in a manner not inconsistent with
this section and all reasonable attorneys' fees and expenses) shall be paid to
the indemnified party, as incurred, within ten (10) business days of written
notice thereof and reasonable supporting documentation has been submitted to the
indemnifying party; provided, that the indemnifying party may require such
indemnified party to undertake to reimburse all such fees and expenses to the
extent it is finally judicially determined that such indemnified party is not
entitled to indemnification hereunder.

                  SECTION 7. CONTRIBUTION. In order to provide for just and
equitable contribution under the Securities Act in any case in which (i) the
indemnified party makes a claim for indemnification pursuant to Section 6 hereof
but is judicially determined (by the entry of a final judgment or decree by a
court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that the express provisions of
Section 6 hereof provide for indemnification in such case, or (ii) contribution
under the Securities Act may be required on the part of any indemnified party,
then the Company Indemnified Parties and the Purchaser Indemnified Parties shall
contribute to the aggregate losses, claims, damages or liabilities to which they
may be subject (which shall, for all purposes of this Agreement, include, but
not be limited to, all reasonable costs of defense and investigation and all
reasonable attorneys' fees), in either such case (after contribution from
others) on the basis of relative fault as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company Indemnified Parties on the one hand or the
Purchaser Indemnified Parties on the other hand, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Company Indemnified Parties and the Purchaser
Indemnified Parties agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation
or by any other method of allocation which does not take account of the
equitable considerations referred to in this Section 7. The amount paid or
payable by an indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to above in this Section 7
shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

                  Notwithstanding any other provision of this Section 7, in no
event shall the Purchaser be required to undertake liability to any person under
this Section 7 for any amounts in excess of the dollar amount of the gross
proceeds received by the Purchaser from the sale of the Purchaser's Registrable
Securities pursuant to any Registration Statement under which such Registrable
Securities are registered under the Securities Act.

                                       11
<Page>

                  SECTION 8. RIGHT OF FIRST REFUSAL.

                  (a) For as long as the Purchaser owns at least 2.5% of the
Common Stock outstanding, in the event that the Company receives an offer to
purchase (i) all or substantially all of the assets of the Company or (ii) at
least 50% of the voting securities of the Company (in either case, such assets
or securities shall be referred to herein as the "Subject Securities") from a
third party who is not an affiliate of the Company (the "First Refusal Offeror")
which the Company wishes to accept (the "First Refusal Offer"), the Company
shall cause the First Refusal Offer to be reduced to writing and shall give
written notice (the "Offer Notice") to the Purchaser (the date of the notice
shall be referred to as the "Notice Date").

                  (b) The Offer Notice shall contain an irrevocable offer to
sell (in the manner set forth below), such Subject Securities at a purchase
price equal to the price contained in, and on the same terms and conditions as,
the First Refusal Offer, and shall be accompanied by a true copy of the First
Refusal Offer. Following receipt by Purchaser of the Offer Notice, Purchaser
shall have the right and option to purchase all of the Subject Securities
covered by the First Refusal Offer, at the same price and on the same terms and
conditions as set forth in the First Refusal Offer, by giving written notice to
the Company of its election within 15 business days after the Notice Date. If
the First Refusal Offer includes any consideration other than cash, then the
equivalent consideration shall be determined by Purchaser acting in good faith.
If the Company disagrees with the Purchaser's determination of equivalent
consideration, the Company shall notify the Purchaser in writing of any such
disagreement. The Company and the Purchaser shall use their respective best
efforts to resolve any such disagreement, and if no resolution is achieved
within 3 business days, the Company and the Purchaser shall mutually select an
independent appraiser whose determination of the equivalent consideration shall
be final and binding on the Purchaser and the Company.

                  (c) In the event that the Purchaser elects to purchase such
Subject Securities in accordance with the terms of the First Refusal Offer, such
acceptance shall be deemed to be a legal obligation of the Purchaser and the
Purchaser shall purchase such Subject Securities on such terms within 30 days of
its election to exercise its option provided that such legal obligation shall be
conditioned on the execution and delivery of a definitive purchase agreement by
both the Company and the Purchaser for the consummation of the transaction
contemplated by the First Refusal Offer during such 30-day period. Each of the
Company and the Purchaser shall negotiate in good faith the terms of such
definitive agreement, which shall, in addition to the sum and substance of the
terms contained in the First Refusal Offer, contain customary terms for
transactions of such nature, including customary representations, warranties,
covenants and indemnities. In the event that the Purchaser accepts its option
but does not purchase such Subject Securities within such 30-day period, then
this Section 8 shall automatically and immediately terminate. If the Purchaser
either declines in writing to exercise its option to purchase the Subject
Securities or fails to provide the Company with written notice of its intent to
exercise its option within the Offer Period, then the Company may during the
succeeding 180 day period (the "Sale Period") sell not less than all of the
Subject Securities covered by the First Refusal Offer to the First Refusal
Offeror at a price not less than that contained in the First Refusal Offer and
on other terms and conditions not materially different than those contained in
the First Refusal Offer. If at the end of the Sale Period the Company has

                                       12
<Page>

not completed the sale of the Subject Securities, all of the restrictions on the
sale, transfer or assignment contained in this Section 8 shall be in effect with
respect to such Subject Securities. Notwithstanding the foregoing, in the event
that the terms and conditions of the transfer of such Subject Securities to the
First Refusal Offeror differ materially from the First Refusal Offer, then all
of the provisions of this Section 8 shall again apply to any proposed sale or
transfer by the Company with respect to the Subject Securities.

                  SECTION 9. ATTENDANCE AT BOARD MEETINGS. For as long as the
Purchaser owns at least 2.5% of the outstanding Common Stock of the Company, the
Company shall give the Purchaser notice of each meeting of its board of
directors at the same time and in the same manner as notice is given to the
directors, and the Company shall permit a representative of the Purchaser to
attend each such meeting as an observer. The representative of the Purchaser
shall be entitled to receive all written materials and other information given
to directors in connection with such meetings at the same time such materials
and information are given to the directors. The representative of the Purchaser
shall agree in writing to keep strictly confidential any and all confidential
and proprietary information of the Company and enter into a Non-disclosure
agreement with the Company with respect to any materials or other information
disclosed to such representative hereunder, if so requested by the Company. If
the Company proposes to take any action by written consent in lieu of a meeting
of its board of directors, the Company shall give written notice thereof to the
Purchaser prior to the effective date of such consent describing in reasonable
detail the nature and substance of such action. The Purchaser shall pay any and
all expenses of its representative in connection with attending such board
meetings.

                  SECTION 10. TERMINATION.

                  (a) Unless otherwise terminated in accordance with Section
10(b) hereof, the term of this Agreement shall be from the date hereof until the
fourth anniversary of the date hereof; PROVIDED, HOWEVER, that the termination
will not affect any obligations arising prior to the date of such termination.

                  (b) Either party may terminate this Agreement (i) if the other
party makes a general assignment for the benefit of creditors, file a voluntary
petition in bankruptcy or for reorganization or arrangement under the bankruptcy
laws, if a petition in bankruptcy is filed against such party, or if a receiver
or trustee is appointed for all or any part of its property or assets, or (ii)
by giving written notice to the other party in the event of a breach of a
material term or condition this Agreement, the License Agreement, the Warrants
or the Purchase Agreement by the other party, unless such breach may be, and is,
cured within thirty (30) days after the breaching party's receipt of notice of
breach from the nonbreaching party.

                  (c) In the event of termination by the Company or the
Purchaser, written notice thereof shall forthwith be given to the other party
and the transactions contemplated by this Agreement shall be terminated without
further action by either party. Nothing in this Section 10 shall be deemed to
release the Company or the Purchaser from any liability for any breach under
this Agreement, or to impair the rights of the Company and the Purchaser to
compel specific performance by the other party of its obligations under this
Agreement.

                                       13
<Page>

                  SECTION 11. NOTICES. Any notice, demand, request, waiver or
other communication required or permitted to be given hereunder shall be in
writing and shall be effective (a) upon hand delivery or facsimile at the
address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day
following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

If to the Company:         145 Hudson Street
                           New York, New York 10013
                           Attn: Chief Financial Officer
                           With a copy to:  General Counsel
                           Tel: (917) 237-0500
                           Fax: (917) 237-1544

If to Purchaser:           2601 Elliott Avenue, Suite 1000
                           Seattle, WA  98121
                           Attention:  Senior Vice President--Media Systems
                           With a copy to:  General Counsel
                           Telephone:  (206) 674-2700
                           Facsimile:  (206) 674-2695

Any party hereto may from time to time change its address for notices by giving
written notice of such changed address to the other party hereto in accordance
herewith.

                  SECTION 12. ASSIGNMENT. Neither this Agreement nor any rights
of the Purchaser or the Company hereunder may be assigned by either party to any
other person without the other party's prior written consent.

                  SECTION 13. COUNTERPARTS/FACSIMILE. This Agreement may be
executed in two or more counterparts, each of which shall constitute an
original, but all of which, when together shall constitute but one and the same
instrument, and shall become effective when one or more counterparts have been
signed by each party hereto and delivered to the other party. In lieu of the
original, a facsimile transmission or copy of the original shall be as effective
and enforceable as the original.

                  SECTION 14. REMEDIES AND SEVERABILITY. The remedies provided
in this Agreement are cumulative and not exclusive of any remedies provided by
law. If any term, provision, covenant or restriction of this Agreement is held
by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their best efforts to find and employ an alternative means to achieve the same
or substantially the same result as that

                                       14
<Page>

contemplated by such term, provision, covenant or restriction. It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without
including any of those that may be hereafter declared invalid, illegal, void or
unenforceable.

                  SECTION 15. HEADINGS. The headings in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

                  SECTION 16. GOVERNING LAW. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York applicable to
contracts made in New York by persons domiciled in New York City and without
regard to its principles of conflicts of laws.

                  SECTION 17. WAIVERS. No waiver by either party of any default
with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any other
provisions, condition or requirement hereof, nor shall any delay or omission of
any party to exercise any right hereunder in any manner impair the exercise of
any such right accruing to it thereafter.

                  SECTION 18. ENTIRE AGREEMENT; AMENDMENT. This Agreement,
together with the Purchase Agreement, the Warrants and the Licensing Agreement,
contains the entire understanding of the parties with respect to the matters
covered hereby and, except as specifically set forth herein, neither the Company
nor the Purchaser makes any representations, warranty, covenant or undertaking
with respect to such matters. No provision of this Agreement may be waived or
amended other than by a written instrument signed by the party against whom
enforcement of any such amendment or waiver is sought.

                                       15
<Page>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Investor Rights Agreement to be duly executed, on this ___ day of July, 2001.

                                        ON2 TECHNOLOGIES, INC.

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

                                        REALNETWORKS, INC.

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

                                       16

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