Document:

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                                                                     Exhibit 4.3

                                 TRUST AGREEMENT

                                     FOR THE

                         CBRE HOLDING COMMON STOCK FUND

                                    UNDER THE

                           CB RICHARD ELLIS 401(K)PLAN

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                                TABLE OF CONTENTS

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                                     ARTICLE 1 - Definitions

1.1  Incorporation of Definitions Used in Plan ...................................................   1
1.2  Definitions of Certain Terms Used in Trust Agreement ........................................   1
1.3  Named Fiduciaries ...........................................................................   2

          ARTICLE 2 - Establishment of Trust and Certain Primary Conditions of its Operation

2.1  Establishment of Trust ......................................................................   2
2.2  Designation of Trust ........................................................................   2
2.3  Trust Fund ..................................................................................   2
2.4  Exclusive Benefit Rule ......................................................................   2
2.5  Reversion Prohibited ........................................................................   2
2.6  Claims against the Trust Fund ...............................................................   2
2.7  Employer Contributions ......................................................................   3
2.8  Distributions ...............................................................................   3

                             ARTICLE 3 - Investment of the Trust Fund

3.1  General Responsibility and Authority for Investment of Trust Fund Assets ....................   3
3.2  ERISA Requirements ..........................................................................   3
3.3  Investment in Company Stock .................................................................   3
3.4  Other Trust Fund Investments ................................................................   4
3.5  Sale of Company Stock .......................................................................   4

                                 ARTICLE 4 - Powers of the Trustee

4.1  Scope of Powers .............................................................................   4
4.2  Powers Exercised by the Trustee In Its Sole Discretion ......................................   4
4.3  Powers Exercisable by the Trustee Only upon the Direction of the Committee ..................   5
4.4  Powers Exercisable by the Trustee Only upon the Direction of a Participant ..................   5
4.5  Documents, Instruments and Facilities .......................................................   6

                         ARTICLE 5 - Duties and Obligations of the Trustee

5.1  Scope of Duties and Obligations .............................................................   6
5.2  General Duties and Obligations ..............................................................   6
5.3  Voting of Company Stock .....................................................................   6
5.4  Tender of Company Stock .....................................................................   7
5.5  Valuation ...................................................................................   8
5.6  Records .....................................................................................   8
5.7  Reports .....................................................................................   8
5.8  Instructions ................................................................................   8
5.9  Hiring of Agents and Related Expenses .......................................................   9

                  ARTICLE 6 - Compensation, Rights and Indemnities of the Trustee

6.1  Compensation and Reimbursement ..............................................................   9
6.2  Rights of the Trustee .......................................................................   9
6.3  Indemnification .............................................................................  10
6.4  Limitation of Liability of Trustee ..........................................................  10
6.5  Court Proceedings and Necessary Parties to Legal Actions ....................................  11
6.6  Bonding of Trustee ..........................................................................  11
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6.7   Third Party .................................................................................  11
6.8   Tax and Information Returns .................................................................  11

                                ARTICLE 7 - Resignation or Removal of the Trustee

7.1   Resignation .................................................................................  11
7.2   Removal .....................................................................................  11
7.3   Successor Trustee ...........................................................................  11
7.4   Settlement ..................................................................................  12
7.5   Transfer to Successor Trustee ...............................................................  12
7.6   Duties of the Trustee Prior to Transfer to Successor Trustee ................................  12
7.7   Powers, Duties and Rights of the Successor Trustee ..........................................  12
7.8   Merger or Consolidation Involving Corporate Trustee .........................................  12

                        ARTICLE 8 - Amendment of the Trust Agreement or Termination of a Plan

8.1   Amendment of the Trust Agreement ............................................................  12
8.2   Termination of the Plan .....................................................................  13

                                           ARTICLE 9 - Communications

9.1   Company's and Committee's Address ...........................................................  13
9.2   Trustee's Address ...........................................................................  13
9.3   Binding Upon Receipt ........................................................................  14
9.4   Communication in Writing ....................................................................  14

                                           ARTICLE 10 - Miscellaneous

10.1  Gender, Tense and Headings ..................................................................  14
10.2  Governing Law ...............................................................................  14
10.3  Mistake of Fact .............................................................................  14
10.4  Deductibility of Contributions ..............................................................  14
10.5  Alienation ..................................................................................  14
10.6  Title of Trust Assets .......................................................................  15
10.7  Titles for Convenience Only .................................................................  15
10.8  Entire Agreement; Parties Bound .............................................................  15
10.9  Executed Counterparts .......................................................................  15
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                                 TRUST AGREEMENT
                                     FOR THE
                         CBRE HOLDING COMMON STOCK FUND
                                    UNDER THE
                          CB RICHARD ELLIS 401(K) PLAN

          This Trust Agreement for the CBRE Holding Common Stock Fund under the
CB Richard Ellis 401(k) Plan (the "Plan"), entered into by and between CB
Richard Ellis Services, Inc., a Delaware corporation (the "Company"), and U.S.
Trust Company, National Association (the "Trustee"), is effective as of the 9th
day of July, 2001.

                                   WITNESSETH
                                   ----------

          WHEREAS, the Company has adopted and is maintaining the Plan for the
exclusive benefit of the Plan's participants and beneficiaries; and

          WHEREAS, the Company has appointed the Trustee as the trustee over the
portion of the Plan that is invested in the Company Stock Fund (as hereinafter
defined) and the Trustee has accepted such appointment and is willing,
commencing as of the effective date of this Trust Agreement, to serve as trustee
for such portion of the Plan's assets and to hold in trust those assets of the
Company Stock Fund in accordance with the provisions of this Trust Agreement;

          NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties hereto, intending to be legally bound, hereby agree and
declare as follows:

                                    ARTICLE 1

                                   DEFINITIONS

          1.1  Incorporation of Definitions Used in Plan

               Except as provided below, the definitions stated in the Plan are
hereby incorporated by reference into this Trust Agreement.

          1.2  Definitions of Certain Terms Used in Trust Agreement

               (a)  "Bank" means (1) a banking institution organized under the
laws of the United States; (2) a member bank of the Federal Reserve System; or
(3) any other banking institution, whether or not incorporated, doing business
under the laws of any state or the United States, a substantial portion of the
business of which consists of receiving deposits or exercising fiduciary powers
similar to those permitted to national banks under the authority of the
Comptroller of the Currency, and which is supervised and examined by state or
federal authority having supervision over banks.

               (b)  "Company Stock" means the Class A common stock, $.01 par
value per share, of the Company's parent, CBRE Holding, Inc., a Delaware
corporation.

               (c)  "Company Stock Fund" means the New Company Stock Fund
established under the Plan, substantially all of the assets of which are
intended to be invested in Company Stock.

               (d)  "Fiduciary" means a person or organization that is a
fiduciary with respect to the Plan or the Trust Fund within the meaning of ERISA
Section 3(21).

               (e)  "Plan" means the CB Richard Ellis 401(k) Plan, as amended
and/or restated from time to time.

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               (f)  "Trust" means the trust established hereunder.

          1.3  Named Fiduciaries

               The members of the Committee, collectively and individually, are
the named fiduciaries under the Plan for purposes of Section 402 of ERISA with
respect to the administration of the Plan, and each Participant is a named
fiduciary for purposes of Section 402 of ERISA with respect to certain matters
relating to Company Stock, as provided in the Plan. Except to the extent that
the provisions of the Plan or this Trust Agreement expressly provide that the
Trustee is subject to the direction of a named fiduciary, the Trustee shall have
exclusive authority and discretion to manage the acquisition and disposition of
Company Stock.

                                   ARTICLE 2

     ESTABLISHMENT OF TRUST AND CERTAIN PRIMARY CONDITIONS OF ITS OPERATION

          2.1  Establishment of Trust

               This Trust Agreement establishes this Trust pursuant to the
provisions of the Plan. The Company and the Trustee hereby agree that the Trust
Fund shall be held in trust and administered, invested and distributed for the
benefit of Participants and their Beneficiaries under the terms and conditions
of the Plan and this Trust Agreement.

          2.2  Designation of Trust

               The Trust shall be known as the CBRE Holding Common Stock Fund
Trust.

          2.3  Trust Fund

               The Trust Fund shall consist of the assets of the Plan allocated
by the Named Fiduciaries to the Company Stock Fund, and the contributions made
to the Trust by the Participating Companies under the provisions of the Plan,
plus the earnings and less the losses thereupon, without distinction between
principal and income, less the payments and distributions which at the time of
reference have been made by the Trustee as authorized herein. The Trustee need
not inquire into the source of any money or property transferred to it nor into
the authority or right of the transfer of such money or property to the Trustee.

          2.4  Exclusive Benefit Rule

               The Trust is expressly declared to be irrevocable, subject to the
provisions of Article 8. It shall be impossible, at any time prior to the
satisfaction of all liabilities with respect to Participants and their
Beneficiaries, for any part of the principal or income of the Trust Fund to be
used for, or diverted to, any purpose which is not for the exclusive benefit of
Participants and their Beneficiaries. The preceding sentence shall not be
construed in such a way as to prohibit the use of assets of the Trust Fund to
pay fees and other expenses and obligations incurred in the maintenance,
administration and investment of the Trust Fund in accordance with the
provisions of this Trust Agreement.

          2.5  Reversion Prohibited

               Except as permitted in the Plan, and by ERISA and the tax
qualification requirements of the Code, it shall be impossible for any part of
the Trust Fund to revert to the Company.

          2.6  Claims against the Trust Fund

               Subject to the claims procedures provided under the Plan, the
Committee shall have complete control and authority to determine the existence,
nonexistence, nature and amount of the rights and interests of all persons in or
to the Trust Fund or under the Plan. Except as otherwise required by ERISA, the
Trustee shall have no duty to question or to examine any determination made by
the Committee or direction given by the Committee to the Trustee in respect of
such matters.

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          2.7  Employer Contributions

               Employer contributions to the Trust Fund shall consist only of
cash, Company Stock or other property reasonably acceptable to the Trustee. The
Trustee shall have no duty to administer the Plan nor to determine that the
contributions received from the Company comply with the provisions of the Plan,
or to determine that the assets of the Trust are adequate to provide any benefit
payable pursuant to the Plan. The Trustee shall not be obligated to collect any
contributions from the Company, nor be obligated to see that funds deposited
with it are deposited according to the provisions of the Plan.

          2.8  Distributions

               Notwithstanding any provision herein to the contrary, payments
shall be made from the Trust Fund at the direction of the Committee (including
pursuant to authority contemplated under Section 4.3(b)) to such persons, in
such manner, at such times, and in such amounts as the Committee shall from time
to time direct in writing. To the extent permitted by ERISA, the Trustee shall
not be liable for any distribution made in reliance upon a written direction of
the Committee.

                                   ARTICLE 3

                          INVESTMENT OF THE TRUST FUND

          3.1  General Responsibility and Authority for Investment of Trust Fund
Assets

               The assets of the Trust Fund shall be invested and reinvested by
the Trustee, subject to and in accordance with the terms of this Trust
Agreement, the Plan, and ERISA. The Company shall cause the Trustee to be
furnished with a copy of each amendment to or restatement of the Plan, and the
Trustee shall not be subject to any provision of the Plan that would affect its
responsibility and authority under this Trust Agreement until it has received a
copy of such provision.

          3.2  ERISA Requirements

               (a)  In investing and managing the assets of the Trust Fund, the
Trustee, who, except as otherwise provided in the Plan or in this Trust
Agreement, has investment responsibility and authority, shall exercise the care,
skill, prudence and diligence, under the circumstances then prevailing, which
prudent men, acting in like capacity and familiar with such matters, would use
in the conduct of an enterprise of like character and with like aims.

               (b)  Except as authorized by regulations promulgated by the
Department of Labor, no fiduciary may maintain the indicia of ownership of any
assets of the Plan outside the jurisdiction of the district courts of the United
States.

               (c)  Notwithstanding any other provision of the Trust Agreement,
the Trustee shall not be required to comply with any provisions of the Trust
Agreement that is not consistent with the requirements of Title I of ERISA. In
the event a court of competent jurisdiction shall issue an opinion or order to
the Plan, the Company or the Trustee, which shall, in the opinion of counsel to
the Company or the Trustee, invalidate under ERISA, in all circumstances or in
any particular circumstances, any provision or provisions of this Trust
Agreement, then, upon notice thereof to the Company or to the Trustee, as the
case may be, such invalid or conflicting provisions of this Trust Agreement
shall be given no further force or effect in the applicable circumstances.

          3.3  Investment in Company Stock

               The Company Stock Fund provides for all or substantially all of
the investment to be in shares of Company Stock. In furtherance of such purpose,
the Trustee shall, in accordance with the terms of the Plan, (a) acquire shares
of Company Stock with assets of the Trust Fund and (b) hold shares of Company
Stock which have been contributed by the Company or otherwise acquired,
notwithstanding any other applicable fiduciary standard relating to (i)
diversification of Trust Fund assets, (ii) the speculative character of Trust
Fund investments, (iii) the lack or inadequacy of income provided by Trust Fund
assets, or (iv) the fluctuation in the fair market value of Trust Fund assets.
Subject to the provisions of the Plan, the Trustee is expressly authorized and
directed, except as may be necessary or appropriate to pay benefits not in the
form of Company Stock which are currently due or

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which are expected to become due in the near future, to hold 100% of the assets
of the Trust Fund in shares of Company Stock.

          The Trustee may enter into purchase or sale transactions of Company
Stock for the Trust Fund either directly or indirectly with the Company or any
shareholder of the Company, including any person deemed to be a "party in
interest" within the meaning of ERISA section 3(14) or a "disqualified person"
within the meaning of Code section 4975. The Trustee shall comply with all
federal and state securities laws and with all applicable provisions of ERISA
when purchasing or selling Company Stock, including, if required, the condition
that no more than adequate consideration (as defined in Section 3(18) of ERISA)
be paid for such Company Stock, and no commission be charged when a purchase or
sale of Company Stock is made from a "party in interest" or a "disqualified
person."

     3.4  Other Trust Fund Investments

          The Committee may direct the Trustee to deposit or invest any assets
of the Trust Fund other than shares of Company Stock, (a) in short-term
cash-equivalent investments, such as Treasury Notes, Treasury Bills or other
similar short-term obligations of the United States Government or any
instrumentality thereof, savings accounts, bankers' acceptances, certificates of
deposit, commercial paper or other interest bearing accounts in a Bank
(including those of the Trustee, if the Trustee is a Bank and such instruments
or accounts bear a reasonable rate of interest), or in a non-interest bearing
checking account for the purpose of meeting contemplated payments under the
Plan, and (b) other securities, including mutual funds.

     3.5  Sale of Company Stock

          The Trustee is not authorized to sell shares of Company Stock
allocated to a Participant's Accounts prior to a Liquidation Event, except (a)
as provided in Section 5.4, (b) for purchases and sales of shares of Company
Stock between the Accounts of electing Participants, to the extent the Committee
establishes a mechanism permitting such purchase and sale transactions and (c)
to the extent the Trustee determines that Company Stock is no longer a prudent
investment for the Plan. If a Liquidation Event occurs with respect to a
Participant and the Participant elects to have his interest in the Company Stock
Fund distributed in cash, the Trustee shall, upon notice from the Committee of
the Participant's election, sell to the Company or the Affiliated Company, and
the Company or an Affiliated Company shall purchase from the Trustee, the shares
of Company Stock allocated to the Participant's Accounts as of the Repurchase
Date. The Company or Affiliated Company shall purchase such shares of Company
Stock for cash at a price per share equal to the fair market value of the
Company Stock as of the Repurchase Date as determined in good faith by the
Trustee based upon an appraisal provided at least annually by an independent
appraiser selected by the Trustee. No commission shall be charged with respect
to such purchase and sale.

                                   ARTICLE 4

                              POWERS OF THE TRUSTEE

     4.1  Scope of Powers

          The Trustee has whatever powers are required to discharge its
obligations and exercise its rights under this Trust Agreement, without being
limited by any state statute or rule of law regarding investments by trustees,
including (but not limited to) the powers specified in the following Sections of
this Article, and the powers and authority granted to the Trustee under other
provisions of this Trust Agreement. The enumeration of any power herein shall
not be by way of limitation, but shall be cumulative and construed as full and
complete power in favor of the Trustee.

     4.2  Powers Exercised by the Trustee In Its Sole Discretion

          The Trustee is authorized and empowered to exercise the following
powers in its sole discretion:

          (a)    To sell, exchange, convey or transfer assets of the Trust
consistent with the provisions of Section 3.5.

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          (b)    To register any investment held in the Trust Fund in its own
name or in the name of a nominee, with or without the addition of words
indicating that such securities are held in a fiduciary capacity, and to hold
any investment in bearer form, and to deposit any investment in a depositary or
clearing corporation, but the books and records of the Trustee shall show that
all such investments are part of the Trust Fund.

          (c)    Subject to Section 5.2 of this Trust Agreement and the terms of
the Plan, to vote upon any stocks (including Company Stock), bonds, or other
securities in the Trust Fund and to give general or special proxies or powers of
attorney with or without power of substitution, to exercise any conversion
privileges, subscription rights or other options and to make any payments
incidental thereto, to consent to or otherwise participate in corporate
reorganizations or other changes affecting corporate securities in the Trust
Fund and to exercise rights of appraisal and similar rights and make decisions
with respect to choice of consideration relating thereto, and to delegate
discretionary powers and to pay any assessments or charges in connection
therewith.

          (d)    To employ suitable agents (who may be agents or employees of
the Company), including such public accountants, brokers, custodians, ancillary
trustees, and appraisers as shall be necessary and appropriate, and to employ
counsel (which may be counsel for the Committee or the Company), whose
reasonable expenses and compensation shall be paid by the Company, and if the
Company fails to pay, by the Trust Fund.

     4.3  Powers Exercisable by the Trustee Only upon the Direction of the
          Committee

          The Trustee is authorized and empowered to exercise the following
powers only upon the direction of the Committee.

          (a)    To accept, compromise or otherwise settle any obligations or
liability due to or from it as Trustee hereunder, including any claim that may
be asserted for taxes under present or future laws, or to enforce or contest the
same by appropriate legal proceedings.

          (b)    To make distributions to Participants and Beneficiaries and
alternate payees under Qualified Domestic Relations Orders as contemplated
below.

          (c)    To sell shares of Company Stock pursuant to Section 3.5
following a Liquidation Event.

          The Committee may authorize the Trustee in writing to exercise any
power with respect to which direction from the Committee is called for in this
Trust Agreement without specific directions or other instructions from the
Committee. However, to the extent that the Committee directs the Trustee
hereunder to take any actions pursuant to its directions, the Trustee shall be
protected to the extent permitted by ERISA in relying on such directions (other
than directions to the Trustee to act in its own discretion) and shall not be
liable in any way for following such direction. Moreover, if the Committee
neither directs the Trustee pursuant to this Section 4.3 nor authorizes the
Trustee in writing to exercise its independent powers with respect to such
matters without need for Committee direction, then with respect to matters for
which Committee direction is called for hereunder, the Trustee shall not be
liable, and shall be indemnified and held harmless by the Company, for any
failure to act hereunder, to the extent permitted by ERISA.

     4.4  Powers Exercisable by the Trustee Only upon the Direction of a
          Participant

          The Trustee is authorized and empowered to exercise the following
powers only upon the direction of a Participant:

          (a)    To purchase shares of Company Stock in connection with the
offer by CBRE Holding, Inc. to sell such shares to the Plan.

          (b)    To purchase and sell shares of Company Stock between the
Accounts of Participants, to the extent the Committee establishes a mechanism
permitting such purchase and sale transactions.

          (c)    To exercise voting powers with respect to Company Stock
pursuant to Section 5.3.

          (d)    To tender or exchange shares of Company Stock pursuant to
Section 5.4.

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     4.5  Documents, Instruments and Facilities

          (a)    In order to effectuate the specific powers and authority herein
granted to the Trustee, the Trustee may make, execute, acknowledge and deliver
any and all documents of transfer and conveyance and any and all other
instruments that may be necessary or appropriate.

          (b)    The Trustee may use its own facilities in effecting any
transaction involving assets of the Trust Fund, upon prior notice to the Company
and the Committee, unless such use is prohibited by ERISA section 406.

                                   ARTICLE 5

                      DUTIES AND OBLIGATIONS OF THE TRUSTEE

     5.1  Scope of Duties and Obligations

          The Trustee agrees to perform the duties and obligations imposed by
this Trust Agreement. No duties or obligations shall be imposed upon the Trustee
with respect to the Trust Fund unless undertaken by the Trustee under the
express terms of this Trust Agreement or unless imposed upon the Trustee by
statute or at common law. The Trustee shall have no duty or obligation to advise
Participants or Beneficiaries as to the effect of federal or state securities
laws on the Plan, the Trust Fund or any distributions therefrom.

     5.2  General Duties and Obligations

          (a)    The Trustee shall hold all property received by it and any
income and gains thereupon. The Trustee shall manage, invest and reinvest the
Trust Fund, shall collect the income therefrom, and shall make payments as
provided in the Plans and in this Trust Agreement. The Trustee may utilize
depositories to hold assets of the Trust Fund; provided, however, that the
Trustee shall not be relieved of any fiduciary responsibility with respect to
the assets so held.

          (b)    The Trustee is responsible only for money or assets that it
actually receives. The Trustee has no duty to compute amounts to be paid to it
by the Company or to enforce collection of any contribution due from the
Company. The Trustee is not responsible for the correctness of the computation
of the amount of any contribution made or to be made by the Company.

          (c)    The Trustee shall make payments and disbursements from the
Trust Fund to or on the order of the Committee. Orders of the Committee with
respect to disbursements from the Trust Fund shall specify the application to be
made of such funds, and the Trustee may (to the extent permitted by law) rely on
the Committee's instructions regarding disbursements from the Trust Fund.

          (d)    Subject to the provisions of Section 8.2(b), the Trustee shall
comply with any directive issued by the Board or the Committee to withdraw and
transfer all or any part of the Trust Fund to another trustee or another
successor funding agent.

          (e)    With respect to all Company Stock held in the Trust Fund, the
Trustee shall (i) vote such shares on any matter presented to shareholders for a
vote in accordance with the provisions of Section 5.3; (ii) decide whether to
give general or special proxies or powers of attorney with or without power of
substitution with respect to such shares; (iii) decide whether to exercise any
conversion privileges, subscription rights or other options and to make any
payments incidental thereto; (iv) decide whether to consent to or otherwise
participate in corporate reorganizations or other changes affecting such shares;
(v) decide whether to exercise rights of appraisal and similar rights and make
decisions with respect to choice of consideration relating thereto or to
delegate discretionary powers and to pay any assessments or charges in
connection therewith; (vi) decide whether to tender such shares in the event of
a tender offer in accordance with the provisions of Section 5.4.

     5.3  Voting of Company Stock

          (a)    The Trustee will vote Company Stock held in the Trust Fund in
accordance with the provisions of this Section 5.3. Within a reasonable time
before each annual or special meeting of shareholders of

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Company Stock, the Company or its delegate will send to each Participant whose
accounts are invested in the Company Stock Fund a copy of the applicable proxy
solicitation material, together with a form requesting instructions for the
Trustee on how to vote Company Stock allocated to such Participant's accounts.
Such Participants will also receive a notice from the Trustee explaining (i)that
all shares of Company Stock will be voted or not voted by the Trustee only in
accordance with instructions provided by Participants acting in their capacity
as named fiduciaries; (ii) the implications under the fiduciary responsibility
provisions of ERISA of the Participant's agreeing to become a named fiduciary;
(iii) that by returning the proxy solicitation and pursuant thereto specifically
directing the Trustee how the shares are to be voted, such Participant is
consenting to his appointment as named fiduciary with respect to the shares of
Company Stock allocated to his accounts and a proportionate number of shares of
Company Stock allocated to the accounts of Participants who fail to consent to
their appointment as named fiduciaries; (iv) that a Participant's consent to
appointment as a named fiduciary or failure to consent to such appointment shall
be binding only with respect to the specific proxy solicitation; and (v) that if
voting instructions for the shares of Company Stock allocated to the
Participant's accounts are not timely received, the Trustee shall treat the
non-receipt as a refusal by the Participant to be appointed as named fiduciary
with respect to that proxy solicitation. The disclosure materials provided to
each Participant must include an explanation that, when the Participant agrees
to become a named fiduciary with respect to the Company Stock allocated to his
accounts, he also is agreeing to become a named fiduciary with respect to a
proportionate number of shares of Company Stock allocated to the accounts of
Participants who have declined their appointment as named fiduciaries.

          (b)    Upon receipt of instructions, the Trustee will vote the shares
as instructed. The Trustee will maintain the instructions of each Participant in
confidence. The Trustee will vote Company Stock for which it does not receive
timely voting instructions with respect to such transaction in the same
proportion as the Trustee votes Company Stock for which it does receive timely
instructions; provided, however, that the Trustee will in all events exercise
its voting obligations consistent with the Trustee's fiduciary duties under
ERISA.

     5.4  Tender of Company Stock

          (a)    The Trustee will notify each Participant whose accounts are
invested in the Company Stock Fund of each tender or exchange offer for one
percent or more of the Company Stock and will use its best efforts to distribute
or cause to be distributed to each such Participant in a timely manner all
information distributed to shareholders of Company Stock in connection with any
such tender or exchange offer. Each Participant will have the right from time to
time with respect to the Company Stock allocated to his accounts to instruct the
Trustee in writing as to the manner in which to respond to any tender or
exchange offer which shall be pending or which may be made in the future for all
such shares or any portion thereof. Any Participant's instructions will remain
in force until superseded in writing by the Participant.

          (b)    Such Participants will also receive a notice from the Trustee
explaining that (i) all shares of Company Stock allocated to such Participant's
accounts and subject to the offer will be tendered or exchanged, or will not be
tendered or exchanged, by the Trustee only in accordance with decisions made by
Participants acting in their capacity as named fiduciaries; (ii) by timely
returning a tender or exchange instruction form and pursuant thereto
specifically directing that the shares subject to the decision of the
Participant either be tendered or exchanged or not tendered or exchanged, such
Participant is consenting to his appointment as named fiduciary hereunder; and
(iii) a Participant's consent to appointment as a named fiduciary or failure to
consent to such appointment shall be binding only with respect to the specific
tender or exchange offer described in the materials sent to the Participant by
the Trustee. The Trustee will tender or exchange whole shares only as and to the
extent so instructed and will aggregate Participants' responses with respect to
fractional shares and tender or exchange fractional shares in a manner designed
to comply as closely as reasonably possible with the aggregate responses of all
Participants with respect to such fractional shares. Except as otherwise
provided by law, if the Trustee does not receive instructions from a Participant
regarding any tender or exchange offer for Company Stock allocated to such
Participant's accounts, the Participant's failure to furnish instructions will
be treated by the Trustee as the Participant's affirmative instruction not to
tender or exchange any shares allocated to the Participant's accounts.

          (c)    Unless and until shares are tendered or exchanged, the
individual instructions received by the Trustee from Participants will be held
by the Trustee in strict confidence and will not be divulged or released to any
person, including officers or employees of the Company or any Affiliated
Company, or any other company unless consented to by the Participant or
otherwise required by law; provided, however that the Trustee will advise the
Company at any time upon request of the total number of shares of Company Stock
held by the Trustee not subject to instructions or tender.

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     5.5  Valuation

          (a)    The Trustee shall determine, and report to the Committee, the
current fair market value of the assets and liabilities of the Trust Fund, and
Participants' and Beneficiaries' interests therein, as of the regular Valuation
Date and as of any interim Valuation Date that may be fixed by the Committee.

          (b)    The fair market value of assets of the Trust Fund shall be
determined by the Trustee. In valuing the assets, the Trustee may rely on
information from the Company, the Committee, an appraiser or other sources, and,
to the extent permitted by ERISA, will not be liable for an inaccurate valuation
based in good faith on such information. Notwithstanding the foregoing, the fair
market value of shares of Company Stock shall be (i) if the Company Stock is
readily tradeable on an established securities market, the fair market value of
such stock on such market on the Valuation Date or (ii) if the Company Stock is
not readily tradeable on an established securities market, the fair market value
determined in good faith by the Trustee in accordance with the requirements of
ERISA and the provisions of Section 3.5.

          (c)    Reasonable costs incurred in valuing the Trust Fund shall be a
charge against the Trust Fund, to the extent not paid by the Company.

     5.6  Records

          The Trustee shall keep or have access to complete accounts of all
investments, receipts and disbursements, and other transactions with respect to
the Trust Fund, and gains and losses resulting from same. Such accounts shall be
sufficiently detailed to meet the Trustee's duties of reporting and disclosure
required under applicable federal or state law as shall exist from time to time.
All accounts, books, contracts and records relating to the Trust Fund shall be
open to inspection and audit at all reasonable times by any person designated by
the Committee.

     5.7  Reports

          (a)    On a quarterly basis, within 90 days following the Trustee's
resignation or removal under Article 7 of this Trust Agreement, and at such
other times as agreed to by the Trustee and the Committee, the Trustee shall
furnish the Committee with a written report setting forth the transactions
effected by the Trustee during the period since it last furnished such a report
and any gains or losses resulting from same, any payments or disbursements made
by the Trustee during such period, the assets of the Trust Fund as of the last
day of such period (at cost and at fair market value as of the most recent
Valuation Date), and any other information about the Trust Fund that the
Committee may reasonably request. The Trustee shall certify the accuracy of the
report if such certification is requested by the Committee or is required by any
applicable federal or state law or regulation.

          (b)    The Committee may approve any report furnished by the Trustee
under subsection (a) either by written statement of approval furnished to the
Trustee or shall be deemed to have approved of any such report by failure to
file a written objection to the report with the Trustee within 90 days of the
date on which the Committee receives such report. The Committee shall not be
liable to any person for its approval, disapproval or failure to approve any
such report rendered by the Trustee.

          (c)    Notwithstanding anything in this Section 5.7 to the contrary,
nothing in this Section 5.7 shall be construed to limit Trustee's liability to
any party for the Trustee's own negligence or willful misconduct.

     5.8  Instructions

          All communications required hereunder from the Company or the
Committee to the Trustee shall be in writing signed by an officer of the Company
or by a member of the Committee authorized to sign on its behalf. The Committee
may authorize one or more of its members to sign on its behalf all
communications required hereunder between the Committee and the Trustee. At all
times during which communications between the Committee and the Trustee are
required hereunder, the Company and the Committee shall keep the Trustee advised
of the names and specimen signatures of all members of the committee and the
individuals authorized to sign on behalf of the Committee. In the absence of any
notification of changes, the Trustee may, absent actual knowledge to the
contrary, assume that the members of the Committee are the same as last reported
by the Company or Committee to the Trustee.

                                       8

<PAGE>

     5.9  Hiring of Agents and Related Expenses

          The Trustee may employ suitable agents and counsel who may be agents
or counsel for the Company. The reasonable expenses incurred by the Trustee and
the Committee in hiring such agents or counsel or otherwise in the performance
of their duties hereunder and all other reasonable charges, expenses,
disbursements and compensation of the Trustee or the Committee otherwise
provided for hereunder shall be paid by the Trust Fund, to the extent not paid
by the Company.

                                   ARTICLE 6

               COMPENSATION, RIGHTS AND INDEMNITIES OF THE TRUSTEE

     6.1  Compensation and Reimbursement

          (a)    The Trustee shall receive for its services reasonable
compensation as agreed upon in writing from time to time between the Company and
the Trustee.

          (b)    The Trustee shall be reimbursed within 60 days of billing for
all reasonable out-of-pocket expenses it incurs in the performance of its duties
under this Trust Agreement. In this regard, reasonable expenses include (but are
not limited to) accounting, consulting, appraisal, brokerage, custodial,
actuarial and legal fees for professional services related to the administration
of the Plan and this Trust Agreement.

          (c)    Compensation and expenses payable under this Section 6.1 shall
be paid by the Trust Fund (and may be charged, if applicable, to an appropriate
subaccount or subtrust) to the extent not paid by the Company. In addition, the
Company, in its discretion, may reimburse the Trust Fund for any such
compensation and expenses paid from the Trust Fund.

     6.2  Rights of the Trustee

          (a)    Whenever in the administration of the Plan a certification or
direction is required to be given to the Trustee, or the Trustee deems it
necessary that a matter be proved prior to taking, suffering or omitting any
action hereunder, such certification or direction shall be fully made, or such
matter may be deemed to be conclusively proved, by delivery to the Trustee of an
instrument signed either:

                 (1)    in the name of the Company by an officer of the Company;
or

                 (2)    unless the matter concerns the authority of the
Committee, in the name of the Committee by a member of the Committee;

                 (3)    and the Trustee may reasonably rely upon such instrument
to the extent permitted by ERISA. Notwithstanding the foregoing, the Trustee may
in its sole discretion accept such other evidence of a matter or require such
further evidence as may seem reasonable to it, in lieu of such instrument.
Generally, to the extent permitted by ERISA, the Trustee shall be protected in
acting upon any notice, resolution, order, certificate, opinion, telegram,
letter or other document reasonably believed by the Trustee to be genuine and to
have been signed by the proper party or parties, and may act thereon without
notice to a Participant or Beneficiary and without considering the rights of any
Participant or Beneficiary.

          (b)    The Trustee may consult with legal counsel (who may be counsel
for the Committee or the Company) with respect to the construction of the Plan
or this Trust Agreement or its duties thereunder, or with respect to any legal
proceeding or any question of law, and shall be fully protected to the extent
permitted by ERISA with respect to any action it takes or omits in good faith
upon the advice of such counsel.

          (c)    The Trustee shall be provided with specimen signatures of the
current members of the Committee. The Trustee shall be entitled to rely in good
faith upon any directions signed by a majority of the members of the Committee
or their appointed delegate, and, to the extent permitted by ERISA, shall incur
no liability for following such directions.

                                       9

<PAGE>

          (d) The Trustee may accept communications by photostatic
teletransmissions with duplicate or facsimile signatures as a delivery of such
communications in writing until notified in writing by the Committee that the
use of such devices is not longer authorized.

          (e) Until advised to the contrary by the Company, the Trustee shall
assume that the Trust is exempt from all Federal, State, and local income taxes,
and may act in accordance with that assumption. If the whole or any part of the
Trust Fund, or the proceeds thereof, becomes liable for the payment of any
estate, inheritance, income or other tax, charge or assessment which the Trustee
is required to pay, the Trustee shall have full power and authority to pay such
tax, charge or assessment out of any money or other property in its hand for the
account of the person whose interests hereunder are so liable, but at least 10
days prior to the making of any such payment the Trustee must mail notice to the
Committee of its intention to make such payment. Prior to making any transfers
or distributions of any of the proceeds of the Trust Fund, the Trustee may
require such releases or other documents from any lawful taxing authority and
may require such indemnity from any payee or distributee, as it deems necessary.

     6.3  Indemnification

          (a) The Company and its successors shall indemnify and hold harmless
the Trustee from all loss or liability (including expenses and reasonable
attorneys' fees) to which the Trustee may be subject by reason of its execution
of its duties under this Trust Agreement, or by reason of any acts taken in good
faith in accordance with directions, or acts omitted in good faith due to
absence of directions, from the Committee unless such loss or liability is due
to the Trustee's negligence or willful misconduct. The Trustee is entitled to
collect on the indemnity provided by this Section 6.3 only from the Company, and
is not entitled to any direct or indirect indemnity payment from assets of the
Trust Fund.

          (b) For purposes of this Section 6.3, negligence shall be defined as
acts or omissions that constitute a material departure from standards of
ordinary care.

     6.4  Limitation of Liability of Trustee

          (a) If the Trustee makes a written request for directions from the
Committee to be given as provided hereunder, the Trustee, to the extent
permitted by ERISA, may await such directions without incurring liability. To
the extent permitted by ERISA, the Trustee has no duty to act in the absence of
such requested directions, but may in its discretion take such action as it
deems appropriate to carry out the purposes of this Trust Agreement, without
liability therefor.

          (b) To the extent permitted by ERISA, the Trustee shall not be liable
to any person for any distribution made at the direction of the Committee.

          (c) The Trustee is not responsible for determining the adequacy of the
Trust Fund to meet liabilities under the Plan, and is not liable for any
obligations of the Plan or the Trust Fund in excess of the assets of the Trust
Fund.

          (d) The Trustee shall not be liable for the acts or omissions of any
other fiduciary or person with respect to the Plan or the Trust Fund except to
the extent required under ERISA.

          (e) The Trustee is not responsible for any matter affecting the
administration of the Plan by the Company, the Committee or any other person or
persons to whom responsibility for administration of the Plan is delegated
pursuant to the terms of the Plan.

          (f) The Trustee shall not be liable for any action taken or omitted
upon direction of the Committee, the Company or a Participant or Beneficiary
pursuant to Section 4.3 or Section 4.4. If at any given time the Committee or
Company should fail to give directions or instructions to the Trustee as
provided in this Agreement, the Trustee, to the extent permitted by ERISA, shall
act or refrain from acting without such directions or instructions and may
exercise its own discretion and judgment as seems appropriate and advisable
under the circumstances in carrying out the purposes of this Agreement, without
liability by the Trustee to the Committee or the Company therefor.

                                       10

<PAGE>

          (g) Notwithstanding any provision or inference to the contrary
contained in the Trust Agreement or the Plan, the Trustee will not be
responsible for: (i) calculating or withholding payroll taxes on any
contributions by or on behalf of Participants; or (ii) maintaining any records
of Participants' Accounts under the Plan.

     6.5  Court Proceedings and Necessary Parties to Legal Actions

          The Trustee may institute, maintain or defend any litigation necessary
to protect the rights of the Trust Fund, provided that the Trustee shall be
under no duty or obligation to do so unless it shall have been indemnified to
its satisfaction against all expenses and liabilities which it may sustain or
reasonably anticipate by reason thereof. All costs and expenses of litigation
for which the Trustee would be liable shall be paid by the Trust Fund to the
extent not paid by the Company. Except as required by ERISA section 502(h), only
the Company, the Committee and the Trustee shall be considered necessary parties
in any legal action or proceeding with respect to the Trust Fund, and no
Participant, Beneficiary or other person having an interest in the Trust Fund
shall be entitled to notice. Any judgment entered on any such action or
proceeding shall be binding on the Company, the Committee, the Trustee and all
persons claiming under the Trust. Nothing in this Section 6.5 is intended to
preclude a Participant or Beneficiary from enforcing his legal rights.

     6.6  Bonding of Trustee

          The Trustee shall not be required to furnish any bond or security for
the performance of its powers and duties hereunder, unless, irrespective of this
provision, the Trustee is required to do by State or Federal statute or
regulation.

     6.7  Third Party

          No person dealing with the Trustee shall be obligated to see to the
proper application of any money paid or property delivered to the Trustee, or to
inquire whether the Trustee has acted pursuant to any of the terms of the Plan
or Trust. Each person dealing with the Trustee may act upon any notice, request,
or representation in writing by the Trustee, or by the Trustee's duly authorized
agent, and shall not be liable to any person in so doing. The certificate of the
Trustee that it is acting in accordance with the Plan or Trust shall be
conclusive in favor of any person relying on the certificate.

     6.8  Tax and Information Returns

          The Company shall be responsible for timely filing all tax and
information returns, as well as all required descriptions, reports, and
disclosures, relating to the Plan and Trust.

                                   ARTICLE 7

                      RESIGNATION OR REMOVAL OF THE TRUSTEE

     7.1  Resignation

          The Trustee may resign at any time by delivering to the Board of
Directors or the Committee a written notice of resignation, to take effect not
less than 60 days after delivery, unless such notice is waived by the Board of
Directors of the Company or the Committee.

     7.2  Removal

          The Board of Directors or the Committee may remove the Trustee at any
time by delivering to the Trustee, not less than 30 days before it is to take
effect, a written notice of removal (unless such notice is waived by the
Trustee).

     7.3  Successor Trustee

          Upon the resignation or removal of the Trustee, the Board of Directors
or the Committee shall appoint a successor Trustee, which may accept such
appointment by execution of this Trust Agreement. In the event

                                       11

<PAGE>

that no successor Trustee is appointed, the Trustee shall continue to act as
Trustee until a successor Trustee is appointed. If, within 60 days after notice
of resignation or removal has been given, a successor Trustee has not been
appointed, the resigning or removed Trustee or the Company may apply to a court
of competent jurisdiction for the appointment of a successor Trustee.

     7.4  Settlement

          The Trustee shall have the right to have a final settlement of the
accounts of the Trust by judicial settlement in an action instituted by the
Trustee in a court of competent jurisdiction.

     7.5  Transfer to Successor Trustee

          Upon settlement of the Trustee's account, the Trustee shall transfer
to the successor Trustee the Trust Fund as it is then constituted and true
copies of its records relating to the Trust Fund. Upon the completion of this
transfer, the Trustee's responsibilities under this Trust Agreement shall cease
and, to the extent permitted by ERISA, the Trustee shall be discharged from
further accountability for all matters embraced in its settlement; provided,
however, that the Trustee executes and delivers all documents and written
instruments which are necessary to transfer and convey the right, title and
interest in the Trust Fund assets, and all rights and privileges with respect to
such assets, to the successor Trustee. Notwithstanding the foregoing, the
Trustee is authorized to reserve such amount as it may deem advisable for
payment of its fees and expenses in connection with the settlement of its
account. Any balance of such reserve remaining after the payment of such fees
and expenses shall be paid over promptly to the successor Trustee.
Notwithstanding any provision of Trust Agreement to the contrary, the Trustee
may invest and reinvest such reserves in any investment or investment vehicle
appropriate for the temporary investment of cash reserves of trust.

     7.6  Duties of the Trustee Prior to Transfer to Successor Trustee

          The Trustee's powers, duties, rights and responsibilities under this
Trust Agreement shall continue until the date on which the transfer of the Trust
Fund assets and delivery of the related documents to the successor Trustee under
Section 7.5 is completed. Nothing contained herein shall relieve the Trustee of
its duties under Section 5.7. The successor Trustee shall neither be liable or
responsible for any act or omission to act with respect to the operation or
administration of the Trust Fund under this Trust Agreement prior to such date,
nor be under any duty or obligation to audit or otherwise inquire into or take
any action concerning the acts or omissions of the Trustee or any predecessor
Trustee.

     7.7  Powers, Duties and Rights of the Successor Trustee

          Upon its receipt of all the assets of the Trust Fund and all of the
documents related thereto, the successor Trustee shall become vested with all
the estate, powers, duties, rights and discretion of the Trustee under this
Trust Agreement with the same effect as though the successor Trustee were
originally named as Trustee hereunder.

     7.8  Merger or Consolidation Involving Corporate Trustee

          Any corporation into which a corporation acting as Trustee hereunder
may be merged or with which it may be consolidated, or any corporation resulting
from any merger, reorganization or consolidation to which such Trustee may be a
party, shall be the successor of the Trustee hereunder without the necessity of
any appointment or other action, provided it does not resign and is not removed.

                                   ARTICLE 8

            AMENDMENT OF THE TRUST AGREEMENT OR TERMINATION OF A PLAN

     8.1  Amendment of the Trust Agreement

          (a) The Company reserves the right to amend this Trust Agreement in
the manner set forth in subsection(b) at any time and to any extent that it may
deem advisable or appropriate, provided, however, that:

                                       12

<PAGE>

               (1) No amendment may increase the duties, rights,
responsibilities or liabilities of the Trustee without its written consent;

               (2) No amendment may have the effect of vesting in the Company
any interest in or control over any property subject to the terms of this Trust
Agreement, except as permitted by law; and

               (3) No amendment may contravene the provisions of Section 2.4.

          (b)  Any amendment to this Trust Agreement shall be made only pursuant
to action of the Board of Directors of the Company. A certified copy of the
resolution adopting any amendment and a copy of the adopted amendment as
executed by the Company shall be delivered to the Trustee. Upon such action by
the Company, the Trust Agreement shall be deemed amended as of the date
specified as the effective date by such action or in the instrument of the
amendment. The effective date of any amendment may be before, on or after the
date of such action.

     8.2  Termination of the Plan

          (a)  In the event that the Plan is terminated, the Committee shall
notify the Trustee as to whether the Trust Fund is to be distributed or is to be
maintained by the Trustee in accordance with the provisions of the Plan and this
Trust Agreement. If the Committee directs that the Trust Fund is to be
distributed, the Trustee shall establish the fair market value of the Trust Fund
as of such interim Valuation Date as designated by the Committee, and, after
paying the reasonable expenses involved in the termination of the Plan, shall
distribute all or a part of the assets of the Trust Fund (converting such assets
into cash, as necessary) in accordance with the written directions of the
Committee.

          (b)  Notwithstanding the provisions of subsection (a):

               (1) To the extent permitted by ERISA, the Trustee may pay, from
the assets of the Trust Fund, the reasonable expenses involved in the
termination of the Trust Fund prior to distributing the assets of the Trust Fund
as directed by the Committee;

               (2) The Trustee shall not comply with any instruction to transfer
assets of the Trust Fund to the funding agent of any other employee benefit plan
unless the Trustee determines that such transfer of assets will comply with the
requirements of the Code, and that any required actuarial statement of valuation
has been properly filed; and

               (3) The Trustee may condition the delivery, transfer or
distribution of any or all assets of the Trust Fund upon its receipt of
assurance satisfactory to it that there has been proper compliance with all
notices and other procedures required by applicable law.

                                   ARTICLE 9

                                 COMMUNICATIONS

     9.1  Company's and Committee's Address

          Communications to the Company shall be addressed to it at Office of
General Counsel, CB Richard Ellis Services, Inc., 505 Montgomery Street, Suite
600, San Francisco, California 94111. Communications to the Committee shall be
addressed to it in care of the Company, at the address above, provided, however,
that upon the Company's or the Committee's written request, such communications
shall be sent to such other address as the Company or the Committee, as the case
may be, may specify.

     9.2  Trustee's Address

          Communications to the Trustee shall be addressed to the attention of
Mr.CharlesE. Wert, Executive Vice President, U.S. Trust Company, N.A., 515 South
Flower Street, Los Angeles, California 90071, provided, however, that upon the
written request of the Trustee, such communications shall be sent to such other
address or addresses as the Trustee may specify.

                                       13

<PAGE>

     9.3  Binding Upon Receipt

          No communication shall be binding on the Trustee, Company or Committee
until it is received by such party.

     9.4  Communication in Writing

          Any action of the Company or the Committee pursuant to this Trust
Agreement, including all orders, requests, directions, instructions, approvals
and objections of the Company or the Committee to the Trustee, shall be in
writing signed on behalf of the Company or the Committee by any duly authorized
officer of the Company or member of the Committee, respectively. The Trustee
shall be governed by such action and, to the maximum extent permitted by ERISA,
be fully protected, and indemnified in accordance with and subject to the
conditions of Section 6.3 hereof, in relying thereon.

                                   ARTICLE 10

                                  MISCELLANEOUS

     10.1 Gender, Tense and Headings

          Whenever any words are used herein in the masculine gender, they shall
be construed as though they were also used in the feminine gender in all cases
where they would so apply. Whenever any words used herein are in the singular
form, they shall be construed as though they were also used in the plural form
in all cases where they would so apply.

          Headings of Articles, Sections and subsections as used herein are
inserted solely for convenience and reference and constitute no part of this
Trust Agreement.

     10.2 Governing Law

          This Trust Agreement shall be construed and governed in all respects
in accordance with applicable federal law, and, to the extent not preempted by
such federal law, in accordance with the laws of the State of California without
giving effect to the choice of laws principles of such State.

     10.3 Mistake of Fact

          Notwithstanding any other provisions herein contained, if any
contribution is made due to a mistake of fact, such contribution shall, upon the
direction of the Committee, which shall be given in conformity with the
provisions of ERISA, be returned to the Company or the party who made it, as
directed by the Company, without liability to any person (including, but not
limited to, Participants and Beneficiaries).

     10.4 Deductibility of Contributions

          Notwithstanding any other provisions herein contained, all
contributions made under the Plan are hereby expressly conditioned upon their
deductibility under Section 404 of the Code and the Treasury Regulations
thereunder, as amended from time to time, and, if the deduction for any
contribution is disallowed in whole or in part, then such contribution (to the
extent the deduction is disallowed) shall, upon the direction of the Committee,
which shall be given in conformity with the provisions of ERISA, be returned to
the Company or the party who made it without liability to any person.

     10.5 Alienation

          Except in the case of a Qualified Domestic Relations Order, or as
otherwise required by Federal law, (a) the benefits, proceeds, payments, or
claims of any Participant or Beneficiary payable from the Trust assets shall not
be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any
kind, either voluntary or involuntary including any such liability which is for
alimony or other payments for support of a spouse or former spouse, (b) any
attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,
garnish, levy or otherwise dispose of or execute upon any right or

                                       14

<PAGE>

benefit payable hereunder shall be void, and (c) the Trust assets shall not in
any manner be liable for or subject to the debts, contracts, liabilities,
engagements, or torts of any Participant entitled to benefits hereunder and such
benefits shall not be considered an asset of the Participant in the event of his
insolvency or bankruptcy.

     10.6 Title of Trust Assets

          The legal and equitable title and ownership of all assets at any time
constituting a part of the Trust Fund shall be and remain with the Trustee and
neither the Company nor any Participant shall ever have any legal or equitable
estate therein, save and except that a Participant shall be entitled to receive
distributions as and when lawfully made under the terms hereof.

     10.7 Titles for Convenience Only

          Titles to the Section of the Trust Agreement are included for
convenience only and shall not control the meaning of interpretation of any
provision of the Trust Agreement.

     10.8 Entire Agreement; Parties Bound

          The Trust Agreement and the Plan contain the entire agreement and
understanding of the Company and the Trustee with respect to the subject matter
hereof and supersede all prior agreements and understandings related to such
subject matter. This Agreement shall be binding upon the parties hereto and
their successors and assigns.

     10.9 Executed Counterparts

          The Trust Agreement may be executed in any number of counterparts,
each of which shall be deemed to be the original although the others shall not
be produced.

     IN WITNESS WHEREOF, the Company and the Trustee have executed this Trust
Agreement as of the date first written above.

CB RICHARD ELLIS SERVICES, INC.            U.S. TRUST COMPANY, NATIONAL
                                           ASSOCIATION

By:  /s/ Walter V. Stafford                By:  /s/ Charles E. Wert
     -----------------------------              ------------------------------
     Walter V. Stafford                         Charles E. Wert

Its: Senior Executive Vice President       Its: Executive Vice President

                                       15<PAGE>

                                                                    EXHIBIT 10.1

                                INTERVIDEO, INC.

                             1998 STOCK OPTION PLAN
                             ----------------------

                           Amended as of October, 2000

     1.  Purposes of this Plan. The purposes of this 1998 Stock Option Plan are
         ---------------------
to attract and retain the best available personnel, to provide additional
incentive to the Employees of the Company and its Subsidiaries, to promote the
success of the Company's business and to enable the Employees to share in the
growth and prosperity of the Company by providing them with an opportunity to
purchase stock in the Company.

     Options granted hereunder may be either Incentive Stock Options or
Nonstatutory Stock Options, at the discretion of the Board and as reflected in
the terms of the written stock option agreement.

     2.  Definitions. As used herein, the following definitions shall apply:
         -----------

         (a) "Board" shall mean the Board of Directors of the Company.

         (b) "Code" shall mean the Internal Revenue Code of the 1986, as
amended.

         (c) "Common Stock" shall mean the Common Stock of the Company, without
par value.

         (d) "Company" shall mean InterVideo, Inc. a California corporation.

         (e) "Committee" shall mean the Committee appointed by the Board in
accordance with Section 4 of this Plan, if one is appointed.

         (f) "Continuous Employment" or "Continuous Status as an Employee" shall
mean the absence of any interruption or termination of employment or service as
an Employee by or to the Company or any Parent or Subsidiary of the Company
which now exists or is hereafter organized or acquired by or acquires the
Company. Continuous Employment shall not be considered interrupted in the case
of sick leave, military leave or any other leave of absence approved by the
Board or in the event of transfers between locations of the Company or between
the Company, its Parent, any of its Subsidiaries or its successors.

         (g) "Employee" shall mean any person, including officers and directors,
employed by the Company, its Parent, any of its Subsidiaries or its successors;
or, for purposes of eligibility for Nonstatutory Stock Options, any person
employed by the Company, including officers and directors, or any consultant to,
or director of, the Company, or any Parent or Subsidiary of the Company, whether
or not such consultant or director is an employee of such entities.

         (h) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, or any successor legislation.

                                       1

<PAGE>

         (i) "Non Employee Director" shall mean a director who is a "Non
Employee Director", as such term is defined under Rule 16b 3(b)3(i) promulgated
pursuant to the Exchange Act and any applicable releases and opinions or the
Securities and Exchange Commisions.

         (j) "Incentive Stock Option" shall mean an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code.

         (k) "Nonstatutory Stock Option" shall mean an Option which is not an
Incentive Stock Option.

         (l) "Option" shall mean a stock option granted pursuant to this Plan.

         (m) "Option Agreement" shall mean a written agreement in such form or
forms as the Board (subject to the terms and conditions of this Plan) may from
time to time approve, evidencing an Option.

         (n) "Optioned Stock" shall mean the Common Stock subject to an Option.

         (o) "Optionee" shall mean an Employee who is granted an Option.

         (p) "Parent" shall mean a "parent corporation," whether now or
hereafter existing, as defined in Sections 424(e) and (g) of the Code.

         (q) "Plan" shall mean this 1998 Stock Option Plan.

         (r) "Registration Date" shall mean the effective date of the first
registration statement which is filed by the Company and declared effective
pursuant to Section 12(g) of the Exchange Act, with respect to any class of the
Company's securities.

         (s) "Securities Act" shall mean the Securities Act of 1933, as amended,
or any successor legislation.

         (t) "Share" or "Shares" shall mean the Common Stock, as adjusted in
accordance with Section 11 of this Plan.

         (u) "Stock Purchase Agreement" shall mean an agreement in such form or
forms as the Board (subject to the terms and conditions of this Plan) may from
time to time approve, which is to be executed as a condition of purchasing
Optioned Stock upon exercise of an Option.

         (v) "Subsidiary" shall mean a subsidiary corporation, whether now or
hereafter existing, as defined in Sections 424(f) and (g) of the Code.

     3.  Stock Subject to this Plan. Subject to the provisions of Section 11 of
         --------------------------
this Plan, the maximum aggregate number of Shares which may be optioned and sold
under this Plan is Ten Million (10,000,000) Shares. The Shares may be
authorized, but unissued or reacquired

                                       2

<PAGE>

Shares other than reacquired shares delivered pursuant to Section 7(c)(iv)
hereof as payment of consideration in the exercise of an option.

     If (a) an Option should expire or become unexercisable for any reason
without having been exercised in full or (b) if the Company repurchases Shares
from the Optionee pursuant to the terms of a Stock Purchase Agreement (provided
that the Optionee did not receive benefits of ownership, such as dividends,
which would destroy the exemption from the provisions of Section 16(b) of the
Exchange Act provided by Rule 16b-3 promulgated pursuant to the Exchange Act),
the unpurchased Shares or repurchased Shares, respectively, which were subject
thereto shall, unless this Plan shall have been terminated, return to this Plan
and become available for other Options under this Plan.

     The Company intends that as long as it is not subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, and is not an
investment company registered or required to be registered under the Investment
Company Act of 1940, as amended, all offers and sales of Options and Common
Stock issuable upon exercise of any Option shall be exempt from registration
under the provisions of Section 5 of the Securities Act, and this Plan shall be
administered in such a manner so as to preserve such exemption. The Company
intends for this Plan to constitute a written compensatory benefit plan within
the meaning of Rule 701(b) of 17 CFR Section 230.701 ("Rule 701") promulgated by
the Securities and Exchange Commission pursuant to the Securities Act. Unless
otherwise designated by the Committee at the time an Option is granted, all
options granted under this Plan by the Company, and the issuance of any Shares
upon exercise thereof, are intended to be granted in reliance on Rule 701.

     4.  Administration of this Plan.
         ---------------------------

         (a) Procedure. This Plan shall be administered by the Board. The Board
             ---------
may appoint a Committee consisting of two (2) or more members of the Board (or
such greater number as is required to qualify for the exemption from the
provisions of Section 16(b) of the Exchange Act provided by Rule 16b-3
promulgated pursuant to the Exchange Act) to administer this Plan on behalf of
the Board, subject to such terms and conditions as the Board may prescribe. Once
appointed, the Committee shall continue to serve until otherwise directed by the
Board. From time to time, the Board may increase the size of the Committee and
appoint additional members of the Board thereto, remove members (with or without
cause) and appoint new members of the Board in substitution therefor, fill
vacancies, however caused, and remove all members of the Committee and,
thereafter, directly administer this Plan. Members of the Board or Committee who
are either eligible for Options or have been granted Options may vote on any
matters affecting the administration of this Plan or the grant of Options
pursuant to this Plan, except that no such member shall act upon the granting of
an Option to such person nor shall any such members presence at a meeting of the
Board of Directors establish the existence of a quorum at any meeting of the
Board or the Committee during which action is taken with respect to the granting
of an Option to him.

         (b) Procedure After Registration Date. Notwithstanding the provisions
             ---------------------------------
of Section 4(a) above, after the Registration Date this Plan shall be
administered either by: (i) the full Board, provided that at all times each
member of the Board is a Non-Employee Director; or

                                       3

<PAGE>

(ii) a Committee which at all times consists solely of Board members who are Non
Employee Directors. After the Registration Date, the Board shall take all action
necessary to administer this Plan in accordance with the then-effective
provisions of Rule 16b-3 promulgated under the Exchange Act, provided that any
amendment to this Plan required for compliance with such provisions shall be
made in accordance with Section 13 of this Plan.

         (c) Powers of the Board and/or Committee. Subject to the provisions of
             ------------------------------------
this Plan, the Committee or the Board, as appropriate, shall have the authority,
in its discretion: (i) to grant Incentive Stock Options and Nonstatutory Stock
Options; (ii) to determine, upon review of relevant information and in
accordance with Section 7 of this Plan, the fair market value per Share; (iii)
to determine the exercise price of the Options, which exercise price and type of
consideration shall be determined in accordance with Section 7 of this Plan;
(iv) to determine the Employees to whom, and the time or times at which, Options
shall be granted, and the number of Shares to be subject to each Option; (v) to
prescribe, amend and rescind rules and regulations relating to this Plan; (vi)
to determine the terms and provisions of each Option Agreement and each Stock
Purchase Agreement (each of which need not be identical with the terms of other
Option Agreements and Stock Purchase Agreements) and, with the consent of the
holder thereof, to modify or amend each Option Agreement and Stock Purchase
Agreement; (vii) to determine whether a stock repurchase agreement or other
agreement will be required to be executed by any Employee as a condition to the
exercise of an Option, and to determine the terms and provisions of any such
agreement (which need not be identical with the terms of any other such
agreement) and, with the consent of the Optionee, to amend any such agreement;
(viii) to interpret this Plan, the Option Agreements, the Stock Purchase
Agreements or any agreement entered into with respect to the grant or exercise
of Options; (ix) to authorize any person to execute on behalf of the Company any
instrument required to effectuate the grant of an Option previously granted by
the Board or to take such other actions as may be necessary or appropriate with
respect to the Company's rights pursuant to Options or agreements relating to
the grant or exercise thereof; and (x) to make such other determinations and
establish such other procedures as it deems necessary or advisable for the
administration of this Plan.

         (d) Effect of the Board's or Committee's Decision. All decisions,
             ---------------------------------------------
determinations and interpretations of the Board or the Committee shall be final
and binding on all Optionees and any other holders of Options.

     5.  Eligibility.  Options may be granted only to Employees.  An Employee
         -----------
who has been granted an Option may, if such Employee is otherwise eligible, be
granted additional Options.

     6.  Term of Plan. This Plan shall become effective upon the earlier to
         ------------
occur of its adoption by the Board or its approval by vote of a majority of the
outstanding shares of the Company's capital stock entitled to vote on the
adoption of this Plan. This Plan shall continue in effect for a term of ten (10)
years unless sooner terminated in accordance with the terms and provisions of
this Plan.

     7.  Option Price and Consideration.
         ------------------------------

                                       4

<PAGE>

         (a) Exercise Price. The exercise price per Share for the Shares to be
             --------------
issued pursuant to the exercise of an Option shall be such price as is
determined by the Board; provided, however, that such price shall in no event be
                         --------  -------
less than eighty-five percent (85%) with respect to Nonstatutory Stock Options,
and one hundred percent (100%) with respect to Incentive Stock Options, of the
fair market value per Share on the date of grant. In the case of an Option
granted to an Employee who, at the time the Option is granted, owns stock (as
determined under Section 424(d) of the Code) constituting more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or its Parent or Subsidiaries, the exercise price per Share shall be no less
than one hundred ten percent (110%) of the fair market value per Share on the
date of grant.

         (b) Fair Market Value. The fair market value per Share on the date of
             -----------------
grant shall be determined by the Board in its sole discretion, exercised in good
faith; provided, however, that where there is a public market for the Common
       --------  -------
Stock, the fair market value per Share shall be the average of the closing bid
and asked prices of the Common Stock on the date of grant, as reported in The
                                                                          ---
Wall Street Journal (or, if not so reported, as otherwise reported by the
-------------------
National Association of Securities Dealers Automated Quotations ("NASDAQ")
System), or, in the event the Common Stock is listed on a stock exchange or on
the NASDAQ System, the fair market value per Share shall be the closing price on
the exchange or on the NASDAQ System as of the date of grant of the Option, as
reported in The Wall Street Journal.
            -----------------------

         (c) Payment of Consideration. The consideration to be paid for the
             ------------------------
Shares to be issued upon exercise of an Option, including the method of payment,
shall be determined by the Board and may consist entirely of cash, check,
promissory notes, Shares held by the Optionee for the requisite period necessary
to avoid a charge to the Company's earnings for financial reporting purposes
which have a fair market value on the date of surrender equal to the aggregate
exercise price of the Shares as to which said Option shall be exercised, or any
combination of such methods of payment. Subject to subparagraphs (i) through
(iv) hereto, utilization of Shares as the method of payment may be completed by
either (a) the tender of Shares then held by the Optionee, or (b) the
withholding of Shares which would otherwise be issued pursuant to an Option
pursuant to broker-dealer sale and remittance procedure described in
subparagraph (iii) hereto. In making its determination as to the type of
consideration to accept, the Board shall consider if acceptance of such
consideration is deemed to be such as may be reasonably expected to benefit the
Company.

             (i)  If the consideration for the exercise of an Option is a
promissory note, it shall be a full recourse promissory note executed by the
Optionee, bearing interest at a rate which shall be sufficient to preclude the
imputation of interest under the applicable provisions of the Code. Until such
time as the promissory note has been paid in full, the Company may retain the
Shares purchased upon exercise of the Option in escrow as security for payment
of the promissory note.

             (ii) If the consideration for the exercise of an Option is the
surrender of previously acquired and owned Shares, the Optionee will be required
to make representations and warranties satisfactory to the Company regarding his
title to the Shares used to effect the purchase, including, without limitation,
representations and warranties that the Optionee has

                                       5

<PAGE>

good and marketable title to such Shares free and clear of any and all liens,
encumbrances, charges, equities, claims, security interests, options or
restrictions and has full power to deliver such Shares without obtaining the
consent or approval of any person or governmental authority other than those
which have already given consent or approval in a form satisfactory to the
Company. The value of the Shares used to effect the purchase shall be the fair
market value of those Shares as determined by the Board in its sole discretion,
exercised in good faith.

               (iii) If the consideration for the exercise of an Option is to be
paid through a broker-dealer sale and remittance procedure, the Optionee shall
provide (1) irrevocable written instructions to a designated brokerage firm to
effect the immediate sale of the purchased shares and to remit to the Company,
out of the sale proceeds available on the settlement date, sufficient funds to
cover the aggregate option price payable for the purchased Shares plus all
applicable Federal and State income and employment taxes required to be withheld
by the Company in connection with such purchase and (2) written instructions to
the Company to deliver the certificates for the purchased Shares directly to
such brokerage firm in order to complete the sale transaction.

               (iv)  If an Optionee is permitted to exercise an Option by
delivering shares of the Company's Common Stock, the option agreement covering
such Option may include provisions authorizing the Optionee to exercise the
Option, in whole or in part, by: (1) delivering whole shares of the Company's
Common Stock previously owned by such Optionee (whether or not acquired through
the prior exercise of a stock option) having a fair market value equal to the
option price; and/or (2) directing the Company to withhold from the Shares that
would otherwise be issued upon exercise of the Option that number of whole
Shares having a fair market value equal to the option price. Shares of the
Company's Common Stock so delivered or withheld shall be valued at their fair
market value on the date of exercise of the Option, as determined by the
Committee and/or the Board, as appropriate. Any balance of the exercise price
shall be paid in cash or by check or a promissory note, each in accordance with
the terms of this Section 7. Any Shares delivered or withheld in accordance with
this provision shall again become available for purposes of this Plan and for
Options subsequently granted thereunder to the extent permissible pursuant to
Section 3 of this Plan.

     8.   Options.
          -------

          (a) Terms and Provisions of Options. As provided in Section 4 of this
              -------------------------------
Plan and subject to any limitations specified herein, the Board and/or Committee
shall have the authority to determine the terms and provisions of any Option
granted under this Plan or any agreement required to be executed in connection
with the grant or exercise of an Option. Each Option granted pursuant to this
Plan shall be evidenced by an Option Agreement. Options granted pursuant to this
Plan are conditioned upon the Company obtaining any required permit or order
from appropriate governmental agencies authorizing the Company to issue such
Options and Shares issuable upon exercise thereof.

          (b) Term of Option. The term of each Option may be up to ten (10)
              ---------------------
years from the date of grant thereof as determined by the Board upon the grant
of the Option and specified in the Option Agreement, except that the term of an
Option granted to an Employee

                                       6

<PAGE>

who, at the time the Option is granted, owns stock comprising more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or its Parent or Subsidiaries, shall be five (5) years from the date of
grant thereof or such shorter term as may be provided in the Option Agreement.

          (c)  Exercise of Option.
               ------------------

               (i)    Procedure for Exercise; Rights as a Shareholder. Any
                      -----------------------------------------------
Option shall be exercisable at such times, in such installments and under such
conditions as may be determined by the Board and specified in the Option
Agreement, including performance criteria with respect to the Company and/or the
Optionee, and as shall be permissible under the terms of this Plan.

          An Option may be exercised in accordance with the provisions of this
Plan as to all or any portion of the Shares then exercisable under an Option,
from time to time during the term of the Option. An Option may not be exercised
for a fraction of a Share.

          An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company at its principal business office in
accordance with the terms of the Option Agreement by the person entitled to
exercise the Option and, except when the broker-dealer sale and remittance
procedure described in Section 7(c)(iii) hereto is used, full payment for the
Shares with respect to which the Option is exercised has been received by the
Company, accompanied by an executed Stock Purchase Agreement and any other
agreements required by the terms of this Plan and/or the Option Agreement. Full
payment may consist of such consideration and method of payment allowable under
Section 7 of this Plan. Until the Option is properly exercised in accordance
with the terms of this paragraph, no right to vote or receive dividends or any
other rights as a stockholder exist with respect to the Optioned Stock. No
adjustment shall be made for a dividend or other right for which the record date
is prior to the date the Option is exercised, except as provided in Section 11
of this Plan.

          As soon as practicable after any proper exercise of an Option in
accordance with the provisions of this Plan, the Company shall, without transfer
or issue tax to the Optionee, deliver to the Optionee at the principal executive
office of the Company or such other place as shall be mutually agreed upon
between the Company and the Optionee, a certificate or certificates representing
the Shares for which the Option shall have been exercised. The time of issuance
and delivery of the certificate(s) representing the Shares for which the Option
shall have been exercised may be postponed by the Company for such period as may
be required by the Company, with reasonable diligence, to comply with any
applicable listing requirements of any national or regional securities exchange
or any law or regulation applicable to the issuance or delivery of such Shares.
No Option may be exercised unless this Plan has been duly approved by the
shareholders of the Company in accordance with applicable law. Notwithstanding
anything to the contrary herein, the terms of a Stock Purchase Agreement
required to be executed and delivered in connection with the exercise of an
Option may require the certificate or certificates representing the Shares
purchased upon exercise of an Option to be delivered and deposited with the
Company as security for the Optionee's faithful performance of the terms of his
Stock Purchase Agreement.

                                       7

<PAGE>

          Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of this
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

               (ii)   Termination of Status as an Employee. If an Optionee
                      ------------------------------------
ceases to serve as an Employee for any reason other than death or disability and
thereby terminates his Continuous Status as an Employee, such Optionee shall
have the right to exercise the Option at any time within thirty (30) days (or
such other period of time not exceeding three (3) months as is determined by the
Board at the time of granting the Option), following the date such Optionee
ceases his Continuous Status as an Employee of the Company to the extent that
such Optionee was entitled to exercise the Option at the date of such
termination; provided, however, that no Option shall be exercisable after the
             --------  -------
expiration of the term set forth in the Option Agreement. To the extent that
such Optionee was not entitled to exercise the Option at the date of such
termination, or if such Optionee does not exercise such Option (which such
Optionee was entitled to exercise) within the time specified herein, the Option
shall terminate.

               (iii)  Death or Disability of Optionee. If an Optionee ceases to
                      -------------------------------
serve as an Employee due to death or disability and thereby terminates his
Continuous Status as an Employee, the Option may be exercised at any time within
six (6) months following the date of death or termination of employment due to
disability, in the case of death, by the Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, or, in the
case of disability, by the Optionee, but in any case only to the extent the
Optionee was entitled to exercise the Option at the date of his termination of
employment by death or disability; provided, however, that no Option shall be
                                   --------  -------
exercisable after the expiration of the Option term set forth in the Option
Agreement. To the extent that such Optionee was not entitled to exercise such
Option at the date of his termination of employment by death or disability or if
such Option is not exercised (to the extent it could be exercised) within the
time specified herein, the Option shall terminate.

               (iv)   Extension of Time to Exercise. Notwithstanding anything to
                      -----------------------------
the contrary in this Section 8, the Board may at any time and from time to time
prior to the termination of a Nonstatutory Stock Option, with the consent of the
Optionee, extend the period of time during which the Optionee may exercise his
Nonstatutory Stock Option following the date the Optionee ceases such Optionee's
Continuous Status as an Employee; provided, however, that (1) the maximum period
                                  --------  -------
of time during which a Nonstatutory Stock Option shall be exercisable following
such termination date shall not exceed an aggregate of six (6) months, (2) the
Nonstatutory Stock Option shall not become exercisable after the expiration of
the term of such Option as set forth in the Option Agreement as a result of such
extension, and (3) notwithstanding any extension of time during which the
Nonstatutory Stock Option may be exercised, such Option, unless otherwise
amended by the Board, shall only be exercisable to the extent to which the
Optionee was entitled to exercise it on the date Optionee ceased Continuous
Status as an Employee. To the extent that such Optionee was not entitled to
exercise the Option at the date of such termination, or if such Optionee does
not exercise an Option which Optionee was entitled to exercise within the time
specified herein, the Option shall terminate.

                                       8

<PAGE>

     9.   Limit on Value of Optioned Stock. No Incentive Stock Option may be
          --------------------------------
granted to an Employee if, as a result of such grant, the aggregate fair market
value (determined at the time an Incentive Stock Option is granted) of the
Shares with respect to which Incentive Stock Options are exercisable for the
first time by an Optionee during any calendar year under all incentive stock
option plans of the Company, its Parents or its Subsidiaries, if any, exceeds
One Hundred Thousand Dollars ($100,000).

     10.  Nontransferability of Options. Options granted under this Plan may not
          -----------------------------
be sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in
any manner, either voluntarily or involuntarily by operation of law, other than
by will or by the laws of descent or distribution, and may be exercised during
the lifetime of the Optionee only by such Optionee.

     11.  Adjustments Upon Changes in Capitalization or Merger.
          ----------------------------------------------------

          (a) Subject to any required action by the shareholders of the Company,
the number of Shares covered by each outstanding Option, and the number of
Shares which have been authorized for issuance under this Plan but as to which
no Options have yet been granted or which have been returned to this Plan upon
cancellation or expiration of an Option or repurchase of shares from an Optionee
upon termination of employment or service, as well as the exercise or purchase
price per Share covered by each such outstanding Option, shall be
proportionately adjusted for any increase or decrease in the number of issued
Shares resulting from a stock split, reverse stock split, combination or
reclassification of the Common Stock, or the payment of a stock dividend (but
only on the Common Stock) or any other increase or decrease in the number of
issued shares of Common Stock effected without receipt of consideration by the
Company (other than stock bonuses to Employees, including, without limitation,
officers and directors); provided, however, that the conversion of any
                         --------  -------
convertible securities of the Company shall not be deemed to have been effected
without the receipt of consideration. Such adjustment shall be made by the
Board, whose determination in that respect shall be final, binding and
conclusive. Except as expressly provided herein, no issue by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of Shares subject to this Plan or an Option.

          (b) In the event of the merger, consolidation or reorganization of the
Company with or into another corporation as a result of which the Company is not
the surviving corporation or as a result of which the outstanding Shares are
exchanged for or converted into cash or property or securities not of the
Company, the Board may (i) make provision for the assumption of all outstanding
Options by the successor corporation or a Parent or a Subsidiary thereof, or
(ii) declare that outstanding Options shall terminate as of a date fixed by the
Board which is at least thirty (30) days after the notice thereof to the
Optionee, unless such thirty (30) day period is waived by the Optionee. In the
event of a dissolution or liquidation of the Company or the sale of all or
substantially all of the assets of the Company, the Company's outstanding
Options shall terminate as to an Optionee upon termination of Continuous Status
as an Employee.

          (c) No fractional shares of Common Stock shall be issuable on account
of any

                                        9

<PAGE>

action described in this Section, and the aggregate number of shares into which
Shares then covered by the Option, when changed as the result of such action,
shall be reduced to the largest number of whole shares resulting from such
action, unless the Board, in its sole discretion, shall determine to issue scrip
certificates in respect to any fractional shares, which scrip certificates, in
such event, shall be in a form and have such terms and conditions as the Board
in its discretion shall prescribe.

     12.  Time of Granting Options. The date of grant of an Option shall be the
          ------------------------
date on which the Board makes the determination granting such Option; provided,
                                                                      --------
however, that if the Board determines that such grant shall be as of some future
-------
date, the date of grant shall be such future date. Notice of the determination
shall be given to each Employee to whom an Option is so granted within a
reasonable time after the date of such grant.

     13.  Amendment and Termination of this Plan.
          --------------------------------------

          (a)  Amendment and Termination. The Board may amend or terminate this
               -------------------------
Plan from time to time in such respects as the Board may deem advisable and
shall make any amendments which may be required so that Options intended to be
Incentive Stock Options shall at all times continue to be Incentive Stock
Options for the purpose of the Code, except that, without approval of the
holders of a majority of the outstanding shares of the Company's capital stock,
no such revision or amendment shall:

               (i)    Increase the number of Shares subject to this Plan, other
than in connection with an adjustment under Section 11 of this Plan;

               (ii)   Materially change the designation of the class of
Employees eligible to be granted Options;

               (iii)  Remove the administration of this Plan from the Board
(other than to the Committee);

               (iv)   Materially increase the benefits accruing to participants
under this Plan; or

               (v)    Extend the term of this Plan.

          (b)  Effect of Amendment or Termination. Except as otherwise provided
               ----------------------------------
in Section 11, any amendment or termination of this Plan shall not affect
Options already granted and such Options shall remain in full force and effect
as if this Plan had not been amended or terminated, unless mutually agreed
otherwise between the Optionee and the Company, which agreement must be in
writing and signed by the Optionee and the Company.

     14.  Conditions Upon Issuance of Shares.
          ----------------------------------

          (a)  Shares shall not be issued pursuant to the exercise of an Option
unless the exercise of such Option and the issuance and delivery of such Shares
pursuant thereto shall

                                       10

<PAGE>

comply with all relevant provisions of law, including, without limitation, the
Securities Act as amended, the Exchange Act, applicable state securities laws,
the rules and regulations promulgated thereunder, and the requirement of any
stock exchange upon which the Shares may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

          (b) As a condition to the exercise of an Option, the Board may require
the person exercising such Option to execute an agreement with, and/or may
require the person exercising such Option to make any representation and
warranty to, the Company as may in the judgment of counsel to the Company be
required under applicable law or regulation, including but not limited to a
representation and warranty that the Shares are being purchased only for
investment and without any present intention to sell or distribute such Shares
if, in the opinion of counsel for the Company, such a representation is
appropriate under any of the aforementioned relevant provisions of law.

     15.  Reservation of Shares. The Company, during the term of this Plan, at
          ---------------------
all times shall reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of this Plan.

     The Company, during the term of this Plan, shall use diligent efforts to
seek to obtain from appropriate regulatory agencies any requisite authorization
in order to issue and sell such number of Shares as shall be sufficient to
satisfy the requirements of this Plan. The inability of the Company to obtain
the requisite authorization(s) deemed by the Company's counsel to be necessary
for the lawful issuance and sale of any Shares hereunder, or the inability of
the Company to confirm to its satisfaction that any issuance and sale of any
Shares hereunder will meet applicable legal requirements, shall relieve the
Company of any liability in respect to the failure to issue or sell such Shares
as to which such requisite authority shall not have been obtained.

     16.  Stock Option and Stock Purchase Agreements. Options shall be evidenced
          ------------------------------------------
by written stock option agreements in such form or forms as the Board shall
approve from time to time. Upon the exercise of an Option, the Optionee shall
sign and deliver to the Company a Stock Purchase Agreement (if required to be
executed and delivered to the Company by an Optionee as a condition to the
exercise of an Option) in such form or forms as the Board shall approve from
time to time.

     17.  Shareholder Approval. Continuance of this Plan shall be subject to
          --------------------
approval by the shareholders of the Company within twelve (12) months before or
after the date this Plan is adopted by the Board. If such shareholder approval
is obtained at a duly held shareholders' meeting, it may be obtained by the
affirmative vote of the holders of a majority of the outstanding shares of the
Company entitled to vote thereon. All Options granted prior to shareholder
approval of this Plan are subject to such approval, and if such approval is not
obtained within twelve (12) months before or after the date this Plan is adopted
by the Board all such Options shall expire and shall be of no further force or
effect.

     18.  Taxes, Fees, Expenses and Withholding of Taxes.
          ----------------------------------------------

                                       11

<PAGE>

          (a) The Company shall pay all original issue and transfer taxes (but
not income taxes, if any) with respect to the grant of Options and/or the issue
and transfer of Shares pursuant to the exercise thereof, and all other fees and
expenses necessarily incurred by the Company in connection therewith, and will
from time to time use diligent efforts to comply with all laws and regulations
which, in the opinion of counsel for the Company, shall be applicable thereto.

          (b) The grant of Options hereunder and the issuance of Shares pursuant
to the exercise thereof is conditioned upon the Company's reservation of the
right to withhold, in accordance with any applicable law, from any compensation
payable to the Optionee any taxes required to be withheld by federal, state or
local law as a result of the grant or exercise of such Option or the sale of the
Shares issued upon exercise thereof. To the extent that compensation or other
amounts, if any, payable to the Optionee are insufficient to pay any taxes
required to be so withheld, the Company may, in its sole discretion, require the
Optionee, as a condition of the exercise of an Option, to pay in cash to the
Company an amount sufficient to cover such tax liability or otherwise to make
adequate provision for the Company's satisfaction of its withholding obligations
under federal and state law.

          (c) The Board or the Committee may, in its discretion and upon such
terms and conditions as it may deem appropriate (including the applicable
safe-harbor provisions of SEC Rule 16b-3 and interpretations thereof by the
staff of the Securities and Exchange Commission) provide any or all holders of
outstanding option grants under this Plan with the election to have the Company
withhold, from the shares of Common Stock otherwise issuable upon the exercise
of such options, one or more of such shares with an aggregate fair market value
equal to the designated percentage (any multiple of 5% specified by the
optionee) of the Federal and State income taxes ("Taxes") incurred in connection
with the acquisition of such Shares. In lieu of such direct withholding, one or
more optionees may also be granted the right to deliver shares of Common Stock
to the Company in satisfaction of such Taxes. The withheld or delivered shares
shall be valued at the Fair Market Value on the applicable determination date
for such Taxes or such other date required by the applicable safe-harbor
provisions of SEC Rule 16b-3.

     19. Liability of Company. The Company, its Parent or any Subsidiary which
         --------------------
is in existence or hereafter comes into existence shall not be liable to an
Optionee or other person if it is determined for any reason by the Internal
Revenue Service or any court having jurisdiction that any Options intended to be
Incentive Stock Options granted hereunder do not qualify as incentive stock
options within the meaning of Section 422 of the Code.

     20. Information to Optionee. The Company shall provide without charge at
         -----------------------
least annually to each Optionee during the period his Option is outstanding a
balance sheet and income statement of the Company. In the event that the Company
provides annual reports or periodic reports to its shareholders during the
period in which an Optionee's Option is outstanding, the Company shall provide
to each Optionee a copy of each such report.

     21. Notices. Any notice required or permitted hereunder shall be given in
         -------
writing and shall be deemed effectively given upon personal delivery or upon
deposit in the United States

                                       12

<PAGE>

mail, as first class, registered or certified mail, with postage and fees
prepaid and addressed (i) if to the Company, at its principal place of business,
attention: Secretary, or (ii) if to the Optionee at his address as set forth on
the signature page of his Option Agreement, or at such other address as either
party may from time to time designate in writing to other. It shall be the
obligation of each Optionee and each transferee holding Shares purchased upon
exercise of an Option to provide the Secretary of the Company, by letter mailed
as provided hereinabove, with written notice of his direct mailing address.

     22.  No Enlargement of Employee Rights. This Plan is purely voluntary on
          ---------------------------------
the part of the Company, and the continuance of this Plan shall not be deemed to
constitute a contract between the Company and any Employee, or to be
consideration for or a condition of the employment or service of any Employee.
Nothing contained in this Plan shall be deemed to give any Employee the right to
be retained in the employ or service of the Company, its Parent, Subsidiary or a
successor corporation, or to interfere with the right of the Company or any such
corporations to discharge or retire any Employee at any time with or without
cause and with or without notice. No Employee shall have any right to or
interest in Options authorized hereunder prior to the grant thereof to such
Employee, and upon such grant such Employee shall have only such rights and
interests as are expressly provided herein, subject, however, to all applicable
provisions of the Company's Articles of Incorporation, as the same may be
amended from time to time.

     23.  Legends on Certificates.
          -----------------------

          (a) Federal Law. Unless an appropriate registration statement is filed
              -----------
pursuant to the Securities Act as amended, with respect to the Options and
Shares issuable under this Plan, each document or certificate representing such
Options or Shares shall be endorsed thereon with a legend substantially as
follows:

          "THIS OPTION AND THE SECURITIES WHICH MAY BE PURCHASED UPON
          EXERCISE OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE
          SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED
          FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
          THE SALE OR DISTRIBUTION THEREOF. NO SALE, TRANSFER OR
          DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
          STATEMENT RELATING THERETO OR AN OPINION OF COUNSEL SATISFACTORY
          TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED."

          (b) California Legend. If required by the California Commissioner of
              -----------------
Corporations, each document or certificate representing the Options or Shares
issuable under this Plan shall be endorsed thereon with a legend substantially
as follows:

                                       13

<PAGE>

          "IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS
          OPTION AND THE SECURITIES WHICH MAY BE PURCHASED UPON
          EXERCISE OF THIS OPTION, OR ANY INTEREST THEREIN, OR TO
          RECEIVE ANY CONSIDERATION THEREFOR, WITHOUT THE PRIOR
          WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE
          STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER'S
          RULES."

          (c) Additional Legends. Each document or certificate representing the
              ------------------
Options or Shares issuable under this Plan shall also contain legends as may be
required under applicable blue sky laws or by any Stock Purchase Agreement or
other agreement the execution of which is a condition to the exercise of an
Option under this Plan.

     24.  Availability of Plan. A copy of this Plan shall be delivered to the
          --------------------
Secretary of the Company and shall be shown by him to any eligible person making
reasonable inquiry concerning it.

     25.  Compliance with Exchange Act Rule 16b-3. With respect to persons
          ---------------------------------------
subject to Section 16 of the Exchange Act, transactions under this Plan are
intended to comply with all applicable conditions of Rule 16b-3, promulgated
pursuant to the Exchange Act, or its successors. To the extent any provision of
this Plan or action by the Board or any Committee fails so to comply, it shall
be deemed null and void to the extent permitted by law and deemed advisable by
the Board or any Committee.

     26.  Invalid Provisions. In the event that any provision of this Plan is
          ------------------
found to be invalid or otherwise unenforceable under any applicable law, such
invalidity or unenforceability shall not be construed as rendering any other
provisions contained herein as invalid or unenforceable, and all such other
provisions shall be given full force and effect to the same extent as though the
invalid or unenforceable provision was not contained herein.

     27.  Applicable Law. This Plan shall be governed by and construed in
          --------------
accordance with the laws of the State of California.

                                       14

<PAGE>

                                INTERVIDEO, INC.

                        INCENTIVE STOCK OPTION AGREEMENT
                        --------------------------------
                                 (Standard Form)

     InterVideo, Inc., a California corporation (the "Company") hereby grants to
__________(the "Optionee") an option to purchase a total of____________ shares
of Common Stock (the "Shares") of the Company, at the price and on the terms set
forth herein, and in all respects subject to the terms and provisions of the
Company's 1998 Stock Option Plan, as amended (the "Plan") applicable to
incentive stock options, which terms and provisions hereby are incorporated by
reference herein. Unless the context herein otherwise requires, the terms
defined in the Plan shall have the same meanings herein.

     1.   Nature of the Option. This Option is intended to be an incentive stock
          --------------------
option within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code").

     2.   Date of Grant; Term of Option. This Option is granted as of the grant
          -----------------------------
date set forth on the signature page of this Agreement, and it may not be
exercised later than ten (10) years from such date.

     3.   Option Exercise Price. The exercise price for this Option is $2.00 per
          ---------------------
Share, which price is not less than one hundred percent (100%) of the fair
market value thereof on the date this Option was granted (or not less than one
hundred ten percent (110%) of the fair market value thereof on the date this
Option was granted, if the Optionee owns stock representing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or its parents or subsidiaries).

     4.   Exercise of Option. This Option shall be exercisable during its term
          ------------------
only in accordance with the terms and provisions of the Plan and this Option as
follows:

          (a)  Right to Exercise. This Option shall vest and be exercisable,
               -----------------
cumulatively, during its term as to one fourth (1/4) of the Shares at the end of
the first full twelve months of Continuous Status as an Employee of the Company
following the Vesting Commencement Date (as set forth on the signature page
hereof) and thereafter as to 1/48 of the Shares at the end of each successive
one-month period of Continuous Status as an Employee of the Company after such
initial twelve month period until the Shares are fully vested.

          (b)  Method of Exercise. This Option shall be exercisable by written
               ------------------
notice which shall state the election to exercise this Option, the number of
Shares in respect to which this Option is being exercised and such other
representations and agreements as to Optionee's investment intent with respect
to such Shares as may be required by the Company hereunder or pursuant to the
provisions of the Plan. Such written notice shall be signed by Optionee and
shall be delivered in person or by certified mail to the Secretary of the
Company or such other person as may be designated by the Company. The written
notice shall be accompanied by payment of

                                       1

<PAGE>

the purchase price and, at the Company's option, either (i) an executed
investment representation statement acceptable to the Company (the "Investment
Representation Statement") or (ii) an executed stock purchase agreement
acceptable to the Company (the "Stock Purchase Agreement"). Payment of the
purchase price shall be made by check or such other consideration and method of
payment authorized by the Board pursuant to the Plan. The certificate or
certificates for the Shares as to which this Option shall be exercised shall be
registered in the name of Optionee and shall carry the legends set forth in the
Plan, the Stock Purchase Agreement or the Investment Representation Statement,
as applicable, and/or as required under applicable law.

          (c)  Restrictions on Exercise. This Option may not be exercised if the
               ------------------------
issuance of the Shares upon such exercise would constitute a violation of any
applicable federal or state securities laws or other laws or regulations. As a
condition to the exercise of this Option, the Company may require Optionee to
make any representation and warranty to the Company as may be required by any
applicable law or regulation.

     5.   Investment Representations. In connection with the acquisition of this
          --------------------------
Option, Optionee represents and warrants as follows:

          (a)  Investment Intent. Optionee is acquiring this Option, and upon
               -----------------
exercise of this Option, Optionee will be acquiring the Shares for investment
for Optionee's own account, not as a nominee or agent, and not with a view to,
or for resale in connection with, any distribution thereof.

          (b)  Protection of Interests. Optionee, by reason of Optionee's
               -----------------------
business or financial experience, has the capacity to evaluate the merits and
risks of purchasing Common Stock of the Company and to make an informed
investment decision with respect thereto and to protect Optionee's interests in
connection with the acquisition of this Option and the Shares.

     6.   Termination of Status as an Employee. If Optionee ceases to serve as
          ------------------------------------
an Employee for any reason other than death or disability and thereby terminates
Optionee's Continuous Status as an Employee, Optionee shall have the right to
exercise this Option at any time within thirty (30) days after the date of such
termination to the extent that Optionee was entitled to exercise this Option at
the date of such termination. If Optionee ceases to serve as an Employee due to
death or disability, this Option may be exercised at any time within six (6)
months after the date of death or termination of employment due to disability,
in the case of death, by Optionee's estate or by a person who acquired the right
to exercise this Option by bequest or inheritance, or, in the case of
disability, by Optionee, but in any case only to the extent Optionee was
entitled to exercise this Option at the date of such termination. To the extent
that Optionee was not entitled to exercise this Option at the date of
termination, or to the extent this Option is not exercised within the time
specified herein, this Option shall terminate. Notwithstanding the foregoing,
this Option shall not be exercisable after the expiration of the term set forth
in paragraph 2 hereof.

     7.   Withholding Tax Liability. The Company reserves the right to withhold,
          -------------------------
in accordance with any applicable laws, from any compensation or other
consideration payable to the Optionee any taxes required to be withheld by
federal, state or local law as a result of the

                                       2

<PAGE>

grant or exercise of this Option or the sale or other disposition of the Shares
issued upon exercise of this Option, and if such compensation or consideration
is insufficient, the Company may require Optionee to pay to the Company an
amount sufficient to cover such withholding tax liability. The Optionee agrees
to notify the Company immediately in the event of any disqualifying disposition
(within the meaning of Section 421(b) of the Code) of the Shares acquired upon
exercise of an incentive stock option.

     8.   Nontransferability of Option. This Option may not be sold, pledged,
          ----------------------------
assigned, hypothecated, gifted, transferred or disposed of in any manner either
voluntarily or involuntarily by operation of law or otherwise, other than by
will or by the laws of descent or distribution, and may be exercised during the
lifetime of Optionee only by such Optionee. Subject to the foregoing and the
terms of the Plan, the terms of this Option shall be binding upon the executors,
administrators, heirs, successors and assigns of Optionee.

     9.   Continuation of Employment. Neither this Option or the Plan nor any
          --------------------------
Option granted thereunder shall confer upon any Optionee any right to continue
in the employment of the Company, its Parent, Subsidiary or a successor
corporation or limit in any respect the right of the Company or any such
corporations to discharge the Optionee at any time, with or without cause and
with or without notice.

     10.  Limitations on Transfer. In addition to any other limitation on
          -----------------------
transfer created by applicable securities laws, Optionee will not sell,
transfer, assign, encumber or otherwise dispose of (including, without
limitation by operation of law) any of Optionee's right, title or interest in
and to all or any portion of the Shares except as provided in this Section:

          (a)  Right of First Refusal. In the event Optionee desires (or is
               ----------------------
required) to sell or transfer in any manner all or a portion of the Shares, the
Optionee shall first offer such Shares for sale to the Company (or its assignee)
at the same price, and upon the same terms (or reasonably similar terms) as
those on which the Optionee is disposing of said Shares ("Right of First
Refusal"). Optionee shall offer such Shares to the Company by delivering a
written notice (the "Notice") to the Company stating (i) Optionee's bona fide
intention to sell or otherwise transfer such Shares, (ii) the number of such
Shares to be sold or otherwise transferred, (iii) the price for which Optionee
proposes to sell such Shares and all additional terms and conditions, if any, of
the sale or transfer and (iv) the name of the proposed buyer or transferee.
Optionee shall attach to the Notice a copy of the written offer, if any, of the
sale or transfer. In the event of a transfer not involving a sale of such Shares
for a specific sum of money, or if, in the sole judgment of the Company's Board
of Directors, the proposed transfer does not involve a price for the Shares
negotiated by the Optionee and Optionee's proposed transferee in a bona fide
"arm's length transaction," the price of the Shares shall be determined by the
Company's Board of Directors in the manner specified in Section 10(c) below.

          Within thirty (30) days after the Company's receipt of the Notice (the
"Acceptance Period"), the Company (or its assignee) may elect to purchase all of
the Shares (or, with the consent of the Optionee, a portion thereof) to which
the Notice refers, at the price per share (or at the fair market value of such
Shares determined pursuant to paragraph 10(c) hereof in the case of a transfer
other than a bona fide arms-length transaction) and on the same terms and
conditions (or terms and conditions as similar as reasonably possible) as set
forth in the

                                       3

<PAGE>

Notice. If the Company (or its assignee) elects to purchase such Shares
hereunder, it shall notify Optionee either orally or in writing during the
Acceptance Period of its intention to purchase all of such Shares (or, with the
consent of Optionee, a portion thereof) and either (i) set a date and location
for the closing of the transaction on or prior to the last day of the Acceptance
Period, or at such later date as the parties may otherwise agree, at which time
the Company (or its assignee) shall tender payment for the Shares or (ii)
include payment for the Shares with the Company's notice to Optionee, if in
writing, or deliver it to Optionee under separate cover. At such closing, the
certificates representing the Shares so purchased shall be delivered to the
Company and canceled or, in the case of payment by the Company by mail, such
certificates shall be deemed to be canceled upon the date of such mailing of the
Company's payment and, thereafter, shall be promptly returned by Optionee to the
Company by certified or registered mail. Optionee hereby authorizes and directs
the Secretary or Transfer Agent of the Company to transfer the Shares as to
which the Right of First Refusal has been exercised from Optionee to the Company
(or its assignee). Optionee further authorizes the Company to refuse, or to
cause its Transfer Agent to refuse, to transfer or record any Shares to be
transferred in violation of this Agreement. If the Company (or its assignee)
does not elect to purchase the Shares to which the Notice refers, Optionee may
sell or otherwise transfer the Shares to the third party named in the Notice at
the price and on the terms and conditions specified in the Notice or at a higher
price, provided that such sale or transfer is consummated within sixty (60) days
from either (i) the lapse of the Acceptance Period or (ii) the date of the
Company's notice, whether written or oral, advising Optionee that it does not
intend to purchase the Shares hereunder, whichever occurs first in time and
provided, further, that any such sale or transfer is in accordance with all of
the terms and conditions set forth in this Agreement. In the event the Shares
are not disposed of by the Optionee within said 60-day period, such Shares shall
once again be subject to the Right of First Refusal herein provided.

          (b)  Involuntary Transfer. In the event of any transfer by operation
               --------------------
of law or other involuntary transfer (the "Involuntary Transfer"), of all, or a
portion, of the Shares, the Company shall have an option to purchase all of the
Shares transferred (the "Involuntary Transfer Option"). Upon such transfer, the
Optionee and person acquiring the Shares shall promptly notify in writing the
Secretary of the Company of such transfer. The Company (or its assignee) shall
notify Optionee and the person acquiring the Shares as to whether the Company
(or its assignee) wishes to purchase the Shares pursuant to the Involuntary
Transfer Option within thirty (30) days after receipt by the Company of the
written notice of the involuntary transfer of the Shares. If the Company (or its
assignee) elects to purchase said Shares hereunder, it shall set a date for the
closing of the transaction at a place specified by the Company (or its assignee)
not later than thirty (30) days after receipt by the Company of the written
notice of the involuntary transfer of the Shares, or at such later date as the
parties may otherwise agree. At such closing, the Company (or its assignee)
shall tender payment for the Shares and the certificates representing the Shares
so purchased shall be canceled. Optionee hereby authorizes and directs the
Secretary or Transfer Agent of the Company to transfer the Shares as to which
the Involuntary Transfer Option has been exercised from the Optionee to the
Company (or its assignee). Optionee further authorizes the Company to refuse, or
to cause its Transfer Agent to refuse, to transfer or record any Shares to be
transferred in violation of this Agreement.

          (c)  Determination of Price. With respect to Shares to be transferred
               ----------------------
pursuant to the Right of First Refusal where the price is not determined as a
result of a bona fide arms-

                                       4

<PAGE>

length transaction by the Optionee under paragraph 10(a) or the Involuntary
Transfer Option, the price per share shall be a price set by the Board of
Directors of the Company that will reflect the then current fair market value of
the Shares, as determined by the Board of Directors in good faith after giving
consideration to the factors set forth in Section 260.140.50 of Title 10 of the
California Code of Regulations or, upon the request of the Optionee, by an
independent appraiser acceptable to both the Company and the Optionee; provided,
that the Optionee shall be required to bear one-half of the cost of such
independent appraiser.

          (d)  Intra-family Transfers. Notwithstanding anything to the contrary
               ----------------------
contained herein, Optionee shall have the right, at any time and from time to
time during Optionee's lifetime or upon Optionee's death, to transfer all or any
portion of Optionee's Shares (the "Transferred Family Shares") to Optionee's
spouse, any of Optionee's issue, ancestors or descendants, or a trust for the
sole benefit of Optionee, Optionee's spouse, any of Optionee's issue, ancestors
or descendants (any such individual or trust is hereinafter referred to as an
"Intra-family Transferee"), provided that the Intra-family Transferee receiving
the Transferred Family Shares executes a consent to be bound by the terms of
this Agreement with respect to the Transferred Family Shares. The Transferred
Family Shares shall be and remain subject to all of the terms and conditions of
this Agreement as were applicable to such Shares immediately prior to their
transfer pursuant to this Section 10(e); without limiting the foregoing, the
obligations hereunder arising out of the possession or ownership of such
Transferred Family Shares shall be binding upon the respective Intra-family
Transferees. For purposes of exercising any rights under this Agreement, the
Company's right to purchase the Shares of Optionee shall extend to any Shares
owned by an Intra-family Transferee.

          (e)  Restriction on Alienation. Any sale, transfer, encumbrance, or
               -------------------------
other disposition or purported sale, transfer, encumbrance or disposition of any
of the Shares by Optionee, whether voluntarily, by operation of law or
otherwise, shall be null and void unless the terms, conditions and provisions of
this Agreement are strictly complied with. Optionee further authorizes the
Company to refuse, or cause its Transfer Agent to refuse, to transfer or record
any Shares to be transferred in violation of this Agreement.

          (f)  Assignment by Company. The Company's Right of First Refusal and
               ---------------------
Involuntary Transfer Option may be assigned in whole or in part to any
shareholder or shareholders of the Company.

          (g)  Obligations Binding Upon Transferees. All transferees of Shares
               ------------------------------------
or any interest therein will receive and hold such Shares or interests subject
to the provisions of this Agreement, including the Company's Right of First
Refusal and Involuntary Transfer Option. Any sale or transfer of the Shares
shall be void unless the provisions of this Agreement are met.

          (h)  Termination of Rights. The Right of First Refusal and Involuntary
               ---------------------
Transfer Option granted the Company by this paragraph 10 shall terminate at such
time as a public market exists for the Company's Common Stock (or any other
stock issued to purchasers in exchange for the Shares purchased under this
Agreement). For the purpose of this Agreement, a "public market" shall be deemed
to exist if the Common Stock is listed on a national securities exchange (as
that term is used in the Securities Exchange Act of 1934, as amended), or the

                                       5

<PAGE>

Common Stock is traded on the over-the-counter market and prices are published
on business days in a recognized financial journal.

          (i)  Indebtedness. Any payment by the Company for purchase of shares
               ------------
from Optionee, may be made by cancellation of any indebtedness to Company from
Optionee.

          (j)  Legends. All certificates representing any Shares of the Company
               -------
purchased upon exercise of the Options shall have endorsed thereon the following
legends, or substantially similar legends, in addition to any legends required
by state securities laws, unless in the opinion of counsel such legends are no
longer necessary:

(1)  THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO,
     OR IN CONNECTION WITH, THE SALE, TRANSFER OR DISTRIBUTION THEREOF. NO SUCH
     SALE, TRANSFER OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE
     REGISTRATION STATEMENT RELATING THERETO OR AN OPINION OF COUNSEL
     SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

(2)  THESE SECURITIES ARE SUBJECT TO CERTAIN RESTRICTIONS, INCLUDING A RIGHT OF
     FIRST REFUSAL OF THE COMPANY, AND MAY BE TRANSFERRED ONLY IN ACCORDANCE
     WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A
     COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

          (k)  Market Standoff Agreement. The Optionee, if requested by the
               -------------------------
Company and an underwriter of Common Stock (or other securities) of the Company,
agrees not to sell or otherwise transfer or dispose of any Common Stock (or
other securities) of the Company held by Optionee during the period not to
exceed one hundred and eighty (180) days as requested by the managing
underwriter following the effective date of a registration statement of the
Company filed under the Securities Act (as hereafter defined), provided that all
officers and directors of the Company are required to enter into similar
agreements. Such agreement shall be in writing in a form satisfactory to the
Company and such underwriter. The Company may impose stop-transfer instructions
with respect to the shares (or other securities) subject to the foregoing
restriction until the end of such period.

     11.  The Plan. This Option is subject to, and the Company and Optionee
          --------
agree to be bound by, all of the terms and conditions of the Plan as such Plan
may be amended from time to time in accordance with the terms thereof, provided
that no such amendment shall deprive Optionee, without Optionee's consent, of
this Option or any rights hereunder. Pursuant to the Plan, the Board of
Directors of the Company is authorized to adopt rules and regulations not
inconsistent with the Plan as it shall deem appropriate and proper. A copy of
the Plan in its present form is available for inspection during business hours
by Optionee or the persons entitled to exercise this Option at the Company's
principal office.

                                       6

<PAGE>

     12.  Entire Agreement; Amendment. This Agreement contains the entire
          ---------------------------
understanding between the parties with respect to the subject matter hereof and
supersedes all prior and contemporaneous written or oral negotiations and
agreements between them regarding the subject matter hereof. This Agreement may
be amended only in writing signed by each of the parties hereto.

Grant Date: ____________

Vesting
Commencement Date: _____________

                                            INTERVIDEO, INC.

                                            By:    _____________________________

                                            Title: _____________________________

                                       7

<PAGE>

     Optionee acknowledges receipt of a copy of the Plan, a copy of which is
attached hereto, and represents that Optionee has read and is familiar with the
terms and provisions thereof, and hereby accepts this Option subject to all of
the terms and provisions thereof. Optionee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Board of Directors
or the Committee upon any questions arising under the Plan.

Date:  _______________                    ______________________________________
                                          Signature of Optionee

                                          ______________________________________
                                          Address

                                          ______________________________________
                                          City          State           Zip Code

                                       8

<PAGE>

     THIS OPTION AND THE SECURITIES WHICH MAY BE PURCHASED UPON EXECUTION OF
THIS OPTION HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE, TRANSFER OR DISTRIBUTION THEREOF. NO SUCH SALE,
TRANSFER OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATING THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.

     THE SHARES WHICH MAY BE PURCHASED UPON EXERCISE OF THIS OPTION MAY BE
TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A STOCK PURCHASE AGREEMENT TO
BE ENTERED INTO BETWEEN THE HOLDER OF THIS OPTION AND THE COMPANY UPON EXERCISE
OF THIS OPTION, A COPY OF WHICH AGREEMENT IS ON FILE WITH THE SECRETARY OF THE
COMPANY.

                                       9

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