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                                                                    EXHIBIT 10.3

                              BILL GROSS' IDEALAB!

                            1999 EXECUTIVE STOCK PLAN

     1.   PURPOSES OF THE PLAN. The purposes of this Stock Plan are to attract
and retain the best available personnel for positions of substantial
responsibility, to provide additional ince ntive to Employees, Directors and
Consultants and to promote the success of the Company's business. Options
granted under the Plan may be Incentive Stock Options or Nonstatutory Stock
Options, as determined by the Administrator at the time of grant. Stock
Purchase Rights may also be granted under the Plan.

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

          (a) "ADMINISTRATOR" means the Board or any of its Committees as shall
be administering the Plan in accordance with Section 4 hereof.

          (b) "APPLICABLE LAWS" means the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options or Stock Purchase Rights are
granted under the Plan.

          (c) "BOARD" means the Board of Directors of the Company.

          (d) "CODE" means the Internal Revenue Code of 1986, as amended.

          (e) "COMMITTEE"  means a committee of Directors appointed by the Board
in accordance with Section 4 hereof.

          (f) "COMMON STOCK" means the Common Stock of the Company.

          (g) "COMPANY" means Bill Gross' idealab!, a California corporation.

          (h) "CONSULTANT" means any person who is engaged by the Company or any
Parent or Subsidiary to render consulting or advisory services to such entity.

          (i) "DIRECTOR" means a member of the Board of Directors of the
Company.

          (j) "EMPLOYEE" means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. A Service
Provider shall not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor.
For purposes of Incentive Stock Options, no such leave may exceed ninety days,
unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment

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upon expiration of a leave of absence approved by the Company is not so
guaranteed, on the 181st day of such leave any Incentive Stock Option held by
the Optionee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

          (k) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

          (l) "FAIR MARKET VALUE" means, as of any date, the value of Common
Stock determined as follows:

              (i) If the Common Stock is listed  on any  established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination, as reported in
THE WALL STREET JOURNAL or such other source as the Administrator deems
reliable;

              (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high bid and low asked prices for the Common Stock
on the last market trading day prior to the day of determination; or

              (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

          (m) "INCENTIVE STOCK OPTION" means an Option intended to qualify as
an incentive stock option  within the meaning of Section 422 of the Code.

          (n) "NONSTATUTORY STOCK  OPTION" means an Option not intended to
qualify as an  Incentive Stock Option.

          (o) "OFFICER" means a person who is an officer of the Company within
the meaning of Section  16 of the Exchange Act and the rules and
regulations promulgated thereunder.

          (p) "OPTION" means a stock option granted pursuant to the Plan.

          (q) "OPTION AGREEMENT" means a written or electronic agreement
between the Company and an Optionee evidencing the terms and conditions of an
individual Option grant. The Option Agreement is subject to the terms and
conditions of the Plan.

          (r) "OPTION EXCHANGE PROGRAM" means a program whereby outstanding
Options are exchanged for Options with a lower exercise price.

          (s) "OPTIONED STOCK" means the Common Stock subject to an Option or
a Stock Purchase Right.

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          (t) "OPTIONEE" means the holder of an outstanding Option or Stock
Purchase Right granted under the Plan.

          (u) "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

          (v) "PLAN" means this 1999 Stock Plan.

          (w) "RESTRICTED STOCK" means shares of Common Stock acquired pursuant
to a grant of a Stock Purchase Right under Section 11 below.

          (x) "SECTION 16(b)" means Section 16(b) of the Securities Exchange
Act of 1934, as amended.

          (y) "SERVICE PROVIDER" means an Employee, Director or Consultant.

          (z) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 12 below.

          (aa)"STOCK PURCHASE RIGHT" means a right to purchase Common Stock
pursuant to Section 11 below.

          (bb)"SUBSIDIARY" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

     3.   STOCK SUBJECT TO THE PLAN.  Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares which may be subject to option
and sold under the Plan is 17,500,000 Shares.  The Shares may be authorized but
unissued, or reacquired Common Stock.

          If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated). However, Shares that have actually been issued under the Plan, upon
exercise of either an Option or Stock Purchase Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, such Shares shall become available for future
grant under the Plan.

     4.   ADMINISTRATION OF THE PLAN.

          (a) The Plan shall be administered by the Board or a Committee
appointed by the Board, which Committee shall be constituted to comply with
Applicable Laws.

          (b) POWERS OF THE ADMINISTRATOR. Subject to the provisions of the Plan
and, in the case of a Committee, the specific duties delegated by the Board to
such Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its discretion:

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              (i) to determine the Fair Market Value;

              (ii) to select the Service Providers to whom Options and Stock
Purchase Rights may from time to time be granted hereunder;

              (iii) to determine the number of Shares to be covered by each such
award granted hereunder;

              (iv) to approve forms of agreement for use under the Plan;

              (v) to determine the terms and  conditions, of any Option or Stock
Purchase  Right  granted  hereunder.

              (vi) to  determine whether and under what circumstances an Option
may be settled in cash under subsection 9(f) instead of Common Stock;

              (vii) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option has declined since the date the Option was granted;

              (viii) to initiate an Option Exchange Program;

              (ix) to prescribe, amend and rescind  rules and  regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

              (x) to allow Optionees to satisfy withholding tax obligations
by electing to have the Company withhold from the Shares to be issued upon
exercise of an Option or Stock Purchase Right that number of Shares having a
Fair Market Value equal to the amount required to be withheld. The Fair Market
Value of the Shares to be withheld shall be determined on the date that the
amount of tax to be withheld is to be determined. All elections by Optionees to
have Shares withheld for this purpose shall be made in such form and under such
conditions as the Administrator may deem necessary or advisable; and

              (xi) to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan.

          (c) EFFECT OF ADMINISTRATOR'S DECISION. All decisions, determinations
and interpretations of the Administrator shall be final and binding on all
Optionees.

     5.   ELIGIBILITY.

          (a) Nonstatutory Stock Options and Stock Purchase Rights may be
granted to Service Providers. Incentive Stock Options may be granted only to
Employees.

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          (b) Each Option shallbe designated in the Option Agreement as either
an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 5(b), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

          (c) Neither the Plan nor any Option or Stock Purchase Right shall
confer upon any Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider with the Company, nor shall it interfere in
any way with his or her right or the Company's right to terminate such
relationship at any time, with or without cause.

     6.   TERM OF PLAN. The Plan shall become effective upon its adoption by the
Board. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 14 of the Plan.

     7.   TERM OF OPTION. The term of each Option shall be stated in the Option
Agreement; provided, however, that the term shall be no more than ten (10) years
from the date of grant thereof. In the case of an Incentive Stock Option granted
to an Optionee who, at the time the Option is granted, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the term of the Option shall be five (5)
years from the date of grant or such shorter term as may be provided in the
Option Agreement.

     8.   OPTION EXERCISE PRICE AND CONSIDERATION.

          (a) The per share exercise price for the Shares to be issued upon
exercise of an Option shall be such price as is determined by the Administrator,
but shall be subject to the following:

              (i) In the case of an Incentive Stock Option

                  (A) granted to an Employee who, at the time of grant of such
Option, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the exercise
price shall be no less than 110% of the Fair Market Value per Share on the date
of grant.

                  (B) granted to any other Employee, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the
date of grant.

              (ii) In the case of a Nonstatutory Stock Option the per Share
exercise price shall be no less than 85% of the Fair Market Value per Share on
the date of grant.

              (iii)  Notwithstanding the foregoing, Options may be granted with
a per Share exercise price other than as required above pursuant to a merger or
other corporate transaction.

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          (b) 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 Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant). Such consideration may consist of (1) cash,
(2) check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option, have been owned by the Optionee for more
than six months on the date of surrender, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which such Option shall be exercised, (5) consideration received by the Company
under a cashless exercise program implemented by the Company in connection with
the Plan, or (6) any combination of the foregoing methods of payment. In making
its determination as to the type of consideration to accept, the Administrator
shall consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

     9.   EXERCISE OF OPTION.

          (a) PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement. Except in the case of Options granted to
Officers, Directors and Consultants, Options shall become exercisable at a rate
of no less than 20% per year over five (5) years from the date the Options are
granted. An Option may not be exercised for a fraction of a Share.

              An Option shall be deemed exercised when the Company receives:(i)
written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Shares, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment shall be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 12 of the Plan.

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

          (b) TERMINATION OF RELATIONSHIP AS A SERVICE PROVIDER. If an Optionee
ceases to be a Service Provider, such Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement (of at least
thirty (30) days) to the extent that the Option is vested on the date of
termination (but in no event later than the expiration of the term of the Option
as set forth in the Option Agreement). In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for three (3) months
following the Optionee's termination. If, on the

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date of termination, the Optionee is not vested as to his or her entire Option,
the Shares covered by the unvested portion of the Option shall revert to the
Plan. If, after termination, the Optionee does not exercise his or her Option
within the time specified by the Administrator, the Option shall terminate, and
the Shares covered by such Option shall revert to the Plan.

          (c) DISABILITY OF OPTIONEE. If an Optionee ceases to be a Service
Provider as a result of the Optionee's disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option Agreement
(of at least six (6) months) to the extent the Option is vested on the date of
termination, but in no event later than the expiration date of the term of such
Option as set forth in the Option Agreement. In the absence of a specified time
in the Option Agreement, the Option shall remain exercisable for twelve (12)
months following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to the entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Option is not exercised within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

              If such disability is not a "disability" as such term is defined
in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option such
Incentive Stock Option shall automatically cease to be treated as an Incentive
Stock Option and shall be treated for tax purposes as a Nonstatutory Stock
Option on the day three months and one day following such termination.

          (d) DEATH OF OPTIONEE. If an Optionee dies while a Service Provider,
the Option may be exercised within such period of time as is specified in the
Option Agreement (of at least six (6) months) to the extent that the Option is
vested on the date of death (but in no event later than the expiration of the
term of such Option as set forth in the Option Agreement) by the Optionee's
estate or by a person who acquires the right to exercise the Option by bequest
or inheritance. In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, at the time of death, the Optionee is not vested as to the
entire Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan. If the Option is not so exercised within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

          (e) BUYOUT PROVISIONS. The Administrator may at any time offer to buy
out for a payment in cash or Shares, an Option previously granted, based on
such terms and conditions as the Administrator shall establish and communicate
to the Optionee at the time that such offer is made.

     10.  NON-TRANSFERABILITY OF OPTIONS AND STOCK PURCHASE RIGHTS. Options and
Stock Purchase Rights may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

     11.  STOCK PURCHASE RIGHTS.

          (a) RIGHTS TO PURCHASE. Stock Purchase Rights may be issued either
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside

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of the Plan. After the Administrator determines that it will offer Stock
Purchase Rights under the Plan, it shall advise the offeree in writing or
electronically of the terms, conditions and restrictions related to the offer,
including the number of Shares that such person shall be entitled to purchase,
the price to be paid, and the time within which such person must accept such
offer. The purchase price for the Shares subject to the Stock Purchase Right
shall be no less than 85% of the Fair Market Value of the Shares at the time the
Stock Purchase Right is granted. The offer shall be accepted by execution of a
Restricted Stock Purchase Agreement in the form determined by the Administrator.

          (b) REPURCHASE OPTION. Unless the Administrator determines otherwise,
the Restricted Stock purchase agreement shall grant the Company a repurchase
option exercisable upon the voluntary or involuntary termination of the
purchaser's service with the Company for any reason (including death or
disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock purchase agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at such rate as the
Administrator may determine. Except with respect to Shares purchased by
Officers, Directors and Consultants, the repurchase option shall in no case
lapse at a rate of less than 20% per year over five years from the date of
purchase.

          (c) OTHER PROVISIONS. The Restricted Stock purchase agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

          (d) RIGHTS AS A SHAREHOLDER. Once the Stock Purchase Right is
exercised, the purchaser shall have rights equivalent to those of a shareholder
and shall be a shareholder when his or her purchase is entered upon the records
of the duly authorized transfer agent of the Company. No adjustment shall be
made for a dividend or other right for which the record date is prior to the
date the Stock Purchase Right is exercised, except as provided in Section 12 of
the Plan.

     12   ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR ASSET SALE.

          (a) CHANGES IN CAPITALIZATION. Subject to any required action
by the shareholders of the Company, the number of shares of Common Stock covered
by each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of 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. The conversion of any convertible securities of
the Company shall not be deemed to have been "effected without 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 issuance 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

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respect to, the number or price of shares of Common  Stock  subject to an Option
or Stock Purchase Right.

          (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. To the extent it has not been previously exercised, an Option or
Stock Purchase Right shall terminate immediately prior to the consummation of
such proposed action.

          (c) MERGER. In the event of a merger of the Company with or into
another corporation, each outstanding Option and Stock Purchase Right shall be
assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. If, in such
event, an Option or Stock Purchase Right is not assumed or substituted for, the
Option or Stock Purchase Right shall terminate as of the date of the closing of
the merger. For the purposes of this paragraph, the Option or Stock Purchase
Right shall be considered assumed if, following the merger, the option or right
confers the right to purchase or receive, for each Share of Optioned Stock
subject to the Option or Stock Purchase Right immediately prior to the merger,
the consideration (whether stock, cash, or other securities or property)
received in the merger by holders of Common Stock for each Share held on the
effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received
in the merger is not solely common stock of the successor corporation or its
Parent, the Administrator may, with the consent of the successor corporation,
provide for the consideration to be received upon the exercise of the Option or
Stock Purchase Right, for each Share of Optioned Stock subject to the Option or
Stock Purchase Right, to be solely common stock of the successor corporation or
its Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the merger.

     13.  TIME OF GRANTING OPTIONS AND STOCK PURCHASE RIGHTS. The date of
grant of an Option or Stock Purchase Right shall, for all purposes, be the date
on which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Employee or Consultant to whom an
Option or Stock Purchase Right is so granted within a reasonable time after the
date of such grant.

     14.  AMENDMENT AND TERMINATION OF THE PLAN.

          (a) AMENDMENT AND TERMINATION. The Board may at any time amend, alter,
suspend or terminate the Plan.

          (b) SHAREHOLDER APPROVAL. The Board shall obtain shareholder approval
of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

          (c) EFFECT OF AMENDMENT OR TERMINATION. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the

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Optionee and the Company. Termination of the Plan shall not affect the
Administrator's ability to exercise the powers granted to it hereunder with
respect to Options granted under the Plan prior to the date of such termination.

     15.  CONDITIONS UPON ISSUANCE OF SHARES.

          (a) LEGAL COMPLIANCE. 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 shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

          (b) INVESTMENT REPRESENTATIONS. As a condition to the exercise of an
Option, the Administrator may require the person exercising such Option to
represent and warrant at the time of any such exercise 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 required.

     16.  INABILITY  TO OBTAIN  AUTHORITY. The  inability  of the  Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     17.  RESERVATION OF SHARES. The Company, during the term of this Plan,
shall at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     18.  SHAREHOLDER APPROVAL. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the degree and manner
required under Applicable Laws.

     19.  INFORMATION TO OPTIONEES AND PURCHASERS. The Company shall provide
to each Optionee and to each individual who acquires Shares pursuant to the
Plan, not less frequently than annually during the period such Optionee or
purchaser has one or more Options or Stock Purchase Rights outstanding, and, in
the case of an individual who acquires Shares pursuant to the Plan, during the
period such individual owns such Shares, copies of annual financial statements.
The Company shall not be required to provide such statements to key employees
whose duties in connection with the Company assure their access to equivalent
information.

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                                                                    EXHIBIT 10.4

                              BILL GROSS' IDEALAB!

                       RESTRICTED STOCK PURCHASE AGREEMENT

THIS AGREEMENT is made as of April 19, 1999 between Bill Gross' idealab!, a
California corporation (the "Company") and Lawrence S. Gross (the "Purchaser").

WHEREAS the Purchaser is an employee of the Company and his continued
participation is considered by the Company to be important for the Company's
continued growth; and

WHEREAS in order to give the Purchaser an opportunity to acquire an equity
interest in the Company as an incentive for the Purchaser to participate in the
affairs of the Company, the Company is willing to sell to the Purchaser and the
Purchaser desires to purchase 2,210,000 (Two Million Two Hundred Ten Thousand)
shares of Common Stock according to the terms and conditions hereof.

THEREFORE, the parties agree as follows:

1.   SALE OF STOCK. The Company hereby agrees to sell to the Purchaser and the
     Purchaser hereby agrees to purchase an aggregate of 2,210,000 (Two Million
     Two Hundred Ten Thousand) shares of the Company's Common Stock
     (individually or collectively, the "Shares"), at the price of $0.35 (Thirty
     Five Cents) per share for an aggregate purchase price of $773,500 (Seven
     Hundred Seventy Three Thousand Five Hundred Dollars) (the "Purchase
     Price").

2.   PAYMENT OF PURCHASE PRICE. Purchaser has delivered to the Company $154,700
     (One Hundred Fifty Four Thousand Seven Hundred Dollars) in cash and a
     promissory note in the amount of $618,800 (Six Hundred Eighteen Thousand
     Eight Hundred Dollars) (the "Note") as payment of the Purchase Price of the
     Shares. The Note is attached as Exhibit E. The Note is secured pursuant to
     the terms of a Security Agreement dated as of April 19th 1999 (the
     "Security Agreement")

3.   ISSUANCE OF SHARES. Upon receipt by the Company of the Purchase Price, the
     Company shall issue duly executed certificates evidencing the Shares in the
     name of the Purchaser. Vested Shares (the "Vested Shares") (initially,
     442,000 Shares) will be delivered to Purchaser and unvested shares (the
     "Unvested Shares") (initially, 1,768,000 Shares) will be held in escrow
     until expiration of the Company's Repurchase Option as described in this
     Agreement.

4.   REPURCHASE OPTION.

     (1)  All Unvested Shares, and any stock dividends or stock distributions
          paid thereon (collectively, the "Restricted Shares"), are subject to
          the Company's Repurchase Option (as defined below). Vested Shares
          whether held by Purchaser or by Escrow Holder shall not be considered
          Restricted Shares.

     (2)  In the event of the voluntary or involuntary termination of the
          Purchaser's employment with or services to the Company for any or no
          reason (including death or

<PAGE>

          disability) (a "Termination") before all of the Restricted Shares
          become Vested Shares and are released from the Repurchase Option under
          Section 5, the Company shall, upon the date of the Termination (as
          reasonably fixed and determined by the Company) have an irrevocable,
          exclusive option (the "Repurchase Option") for a period of 90 (ninety)
          days from such date to repurchase all or any portion of the Restricted
          Shares (i.e., those which have not vested and become Vested Shares and
          thus have not been released from the Repurchase Option at such time)
          at the original purchase price per share ($0.35).

     (3)  The Repurchase Option shall be exercised by the Company by written
          notice to the Purchaser or his executor (with a copy to the Escrow
          Holder (as defined below)) and, at the Company's option, (i) by
          delivery to the Purchaser or his executor with such notice of a check
          in the amount of the repurchase price for the Restricted Shares being
          repurchased, or (ii) by cancellation by the Company of an amount of
          the Purchaser's indebtedness to the Company equal to the repurchase
          price for the Restricted Shares being repurchased, or (iii) by a
          combination of (i) and (ii) so that the combined payment and
          cancellation of indebtedness equals such repurchase price. Upon
          delivery of such notice and the payment of the repurchase price in any
          of the ways described above within the ninety (90) day period, the
          Company shall become the legal and beneficial owner of the Restricted
          Shares being repurchased and all rights and interests therein or
          relating thereto, and the Company shall have the right to retain and
          transfer to its own name the number of Restricted Shares being
          repurchased by the Company.

     (4)  Whenever the Company shall have the right to repurchase Restricted
          Shares hereunder, the Company may designate and assign one or more
          employees, officers, directors or stockholders of the Company or other
          persons or organizations to exercise all or a part of the Company's
          repurchase rights under this Agreement and purchase all or a part of
          such Restricted Shares.

5.   RELEASE OF SHARES FROM REPURCHASE OPTION.

     (1)  As of the date of this Agreement 442,000 (Four Hundred Forty Two
          Thousand) Shares are Vested Shares which are not subject to the
          Repurchase Option.

     (2)  The remaining Shares that are initially subject to the Repurchase
          Option shall vest and become Vested Share in equal increments of
          110,500 (One Hundred Ten Thousand Five Hundred) Shares each, quarterly
          over sixteen (16) quarters, beginning June 30, 1999 and ending March
          31, 2003, subject, in each case, to a Termination not having occurred
          on or prior to the applicable vesting date. Vested Shares are no
          longer Restricted Shares or subject to the Repurchase Option and are
          deemed released from such Repurchase Option.

     (3)  Notwithstanding the foregoing, if a Termination occurs prior to
          October 5, 2000, for any reason other than (A) a voluntary termination
          by the Purchaser, or (B) a termination for "Cause" (as defined below),
          the number of Shares equal to the

                                      -2-
<PAGE>

          difference between 1,000,000 (One Million) and the number of Shares
          which are already vested as of the date of Termination shall become
          immediately vested as of the date of Termination. "Cause" shall mean
          (i) any act of personal dishonesty taken by the Purchaser in
          connection with his or her responsibilities to the Company, or (ii)
          Purchaser's conviction of, or plea of nolo contendere to, a felony; or
          (iii) a willful act by the Purchaser which constitutes misconduct and
          is injurious to the Company.

     (4)  Upon the merger or consolidation of the Company with or into another
          corporation, entity or person or the sale of all or substantially all
          of the Company's assets to another corporation, entity or person,
          where immediately after such merger, consolidation or sale of assets,
          less than 50% of the capital stock or equity interests in such other
          corporation, entity or person are owned by persons who owned in the
          aggregate greater than 50% of the capital stock of the Company
          immediately before such merger, consolidation or sale of assets, the
          surviving entity shall assume the rights and obligations of the
          Repurchase Option and the Purchaser shall remain subject to the
          conditions set forth herein.

6.   RESTRICTION ON TRANSFER. Except for the escrow described in Section 7 or
     transfer of the Restricted Shares to the Company or its assignees
     contemplated by this Agreement, or transfer of Restricted Shares to
     Purchaser's family members or trusts established by Purchaser for himself
     and his family members as permitted below, none of the Unvested Shares nor
     any beneficial interest therein shall be transferred, encumbered or
     otherwise disposed of in any way until they become vested and are therefore
     released from the Company's Repurchase Option in accordance with the
     provisions of this Agreement. It is agreed that the Purchaser may transfer
     Restricted Shares to any such family member or to a trust for the Purchaser
     and/or his family members, provided that such transferee(s) execute(s) an
     agreement acknowledging the application of this Agreement, including the
     applicability of the Repurchase Option to Restricted Shares and the
     requirement that Restricted Shares remain in escrow as provided herein.

7.   ESCROW OF SHARES.

     (1)  The Restricted Shares issued under this Agreement shall be held by the
          Secretary of the Company as escrow holder ("Escrow Holder"), along
          with a stock assignment executed by the Purchaser in blank, until they
          become Vested Shares and are therefore released from the Company's
          Repurchase Option in accordance with the provisions of this Agreement

     (2)  The Escrow Holder is hereby directed to permit transfer of the
          Restricted Shares held by Escrow Holder only in accordance with this
          Agreement or instructions signed by both parties. In the event the
          Escrow Holder desires further instructions, he shall be entitled to
          rely upon directions executed by a majority of the authorized number
          of the Company's Board of Directors and by the Purchaser. The Escrow
          Holder shall have no liability for any act or omission hereunder while
          acting in good faith in the exercise of his own judgment.

                                      -3-
<PAGE>

     (3)  If the Company or any assignee exercises its Repurchase Option
          hereunder, the Escrow Holder, upon receipt of written notice of such
          option exercise from the proposed transferee, shall take all steps
          necessary to accomplish such transfer.

     (4)  When the Repurchase Option has been exercised or expires unexercised,
          or a portion of the Restricted Shares become Vested Shares and are
          released from such Repurchase Option, the Escrow Holder shall (a)
          promptly cause new certificates to be issued for such Vested Shares
          and for the remaining Restricted Shares, if any, (b) promptly deliver
          the certificate for the Vested Shares to the Purchaser (subject to the
          requirements of delivery of certificates under the Security Agreement
          to the Pledgeholder under the Security Agreement with respect to
          Vested Shares, if any, that then remain subject to the Security
          Agreement) and (c) retain the certificate for any remaining Restricted
          Shares that are still subject to the Repurchase Option.

     (5)  Subject to the terms hereof, the Purchaser shall have all the rights
          of a stockholder with respect to Restricted Shares while they are held
          in escrow, including without limitation, the right to vote the
          Restricted Shares and receive any dividends declared thereon. If, from
          time to time during the term of the Company's Repurchase Option, there
          is (i) any stock dividend, stock split or other change in the
          Restricted Shares, or (ii) any merger or sale of all or substantially
          all of the assets or other acquisition of the Company, any and all
          new, substituted or additional securities to which the Purchaser is
          entitled by reason of his ownership of the Restricted Shares shall be
          immediately subject to this escrow, deposited with the Escrow Holder
          and included thereafter as "Restricted Shares" for purposes of this
          Agreement and the Company's repurchase option.

8.   LEGENDS. The share certificate evidencing the Restricted Shares issued
     hereunder shall be endorsed with the following legends:

     (1)  "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
          INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
          DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED
          WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
          OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
          IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933."

     (2)  "THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN
          ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE
          STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
          COMPANY."

     (3)  Any legend required to be placed thereon by applicable state
          securities laws.

9.   INVESTMENT REPRESENTATIONS. In connection with the purchase of the Shares,
     the Purchaser represents to the Company the following:

                                      -4-
<PAGE>

     (1)  He is aware of the Company's business affairs and financial condition
          and has acquired sufficient information about the Company to reach an
          informed and knowledgeable decision to acquire the securities. He is
          purchasing these securities for investment for his own account only
          and not with a view to, or for resale in connection with, any
          "distribution" thereof within the meaning of the Securities Act of
          1933 (the "Securities Act").

     (2)  He understands that the securities have not been registered under the
          Securities Act by reason of a specific exemption therefrom, which
          exemption depends upon, among other things, the bona fide nature of
          his investment intent as expressed herein. In this connection, he
          understands that, in the view of the Securities and Exchange
          Commission (the "Commission"), the statutory basis for such exemption
          may not be present if his representations meant that his present
          intention was to hold these securities for a minimum capital gains
          period under the tax statutes, for a deferred sale, for a market rise,
          for a sale if the market does not rise, or for a year or any other
          fixed period in the future.

     (3)  He further acknowledges and understands that the securities must be
          held indefinitely unless they are subsequently registered under the
          Securities Act or an exemption from such registration is available. He
          further acknowledges and understands that the Company is under no
          obligation to register the securities. He understands that the
          certificate evidencing the securities will be imprinted with a legend
          which prohibits the transfer of the securities unless they are
          registered or such registration is not required in the opinion of
          counsel for the Company.

     (4)  He is aware of the adoption of Rule 144 by the Commission, promulgated
          under the Securities Act, which permits limited public resale of
          securities acquired in a non-public offering subject to the
          satisfaction of certain conditions.

     (5)  He further acknowledges that in the event all of the requirements of
          Rule 144 are not met, compliance with Regulation A or some other
          registration exemption will be required; and that although Rule 144 is
          not exclusive, the staff of the Commission has expressed its opinion
          that persons proposing to sell private placement securities other than
          in a registered offering and other than pursuant to Rule 144 will have
          a substantial burden of proof in establishing that an exemption from
          registration is available for such offers or sales and that such
          persons and the brokers who participate in the transactions do so at
          their own risk.

10.  RESTRICTIONS ON TRANSFER. The Purchaser agrees, in connection with the
     Company's initial public offering of the Company's securities, (i) not to
     sell, make short sales of, loan, grant any options for the purchase of, or
     otherwise dispose of any shares of Common Stock of the Company held by the
     Purchaser (other than those shares included in the registration) without
     the prior written consent of the Company or the underwriters managing such
     initial underwritten public offering of the Company's securities for up to
     one hundred eighty (180) days from the effective date of such registration
     and (ii) further agrees to execute any agreement reflecting the provisions
     of clause (i) above as may be requested by the

                                      -5-
<PAGE>

     underwriters at the time of the public offering. Despite the foregoing, the
     restrictions on the Purchaser will be no greater than the least restrictive
     restrictions required of any other executive officer of the Company.

11.  ADJUSTMENT FOR STOCK SPLIT. All references to the number of Shares, Vested
     Shares, Unvested Shares, Restricted Shares and the Purchase Price of the
     Shares in this Agreement shall be appropriately adjusted to reflect any
     stock split, stock dividend or other change in the Restricted Shares which
     may be made by the Company after the date of this Agreement.

12.  GENERAL PROVISIONS.

     (1)  This Agreement shall be governed by the internal laws of the State of
          California without reference to its conflict of law provisions. This
          Agreement represents the entire agreement between the parties with
          respect to the current purchase of Common Stock by the Purchaser, may
          only be modified or amended by a writing signed by both parties and
          satisfies all of the Company's obligations to the Purchaser with
          regard to the issuance or sale of securities.

     (2)  Any notice, demand or request required or permitted to be given by
          either the Company or the Purchaser pursuant to the terms of this
          Agreement shall be in writing and shall be deemed given when delivered
          personally or deposited in the U.S. mail, First Class with postage
          prepaid, and addressed to the parties at the addresses of the parties
          set forth at the end of this Agreement or such other address as a
          party may request by notifying the other in writing.

          Any notice to the Escrow Holder shall be sent to the Company's address
          with a copy to the other party not sending the notice.

     (3)  The rights and benefits of the Company under this Agreement shall be
          transferable to any one or more persons or entities, and all covenants
          and agreements hereunder shall inure to the benefit of, and be
          enforceable by the Company's successors and assigns. Purchaser may
          only transfer Restricted Shares or interests therein as permitted by
          this Agreement.

     (4)  Either party's failure to enforce any provision or provisions of this
          Agreement shall not in any way be construed as a waiver of any such
          provision or provisions, nor prevent that party thereafter from
          enforcing each and every other provision of this Agreement. The rights
          granted both parties herein are cumulative and shall not constitute a
          waiver of either party's right to assert all other legal remedies
          available to it under the circumstances.

     (5)  Both parties agree upon request to execute any further documents or
          instruments necessary or desirable to carry out the purposes or intent
          of this Agreement.

     (6)  The Purchaser understands that he (and not the Company) shall be
          responsible for his own federal, state, local or foreign tax liability
          and any of the other tax consequences that may arise as a result of
          the transactions contemplated by this Agreement. The

                                      -6-
<PAGE>

          Purchaser shall rely solely on the determinations of his tax advisors
          or his own determinations, and not on any statements or
          representations by the Company or any of his agents, with regard to
          all such tax matters. The Purchaser has notified the Company in
          writing that the Purchaser is filing an election pursuant to Section
          83(b) of the Internal Revenue Code of 1986, as amended, with the
          Internal Revenue Service. The Purchaser will provide a copy of such
          filing to the Company.

     (7)  THE PURCHASER UNDERSTANDS THAT THE SALE OF THE SECURITIES WHICH ARE
          THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE
          COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE
          ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF
          THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL
          UNLESS THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION
          25100, 25102, OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS
          OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH
          QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
day and year first set forth above.

PURCHASER HEREBY ACKNOWLEDGES AND AGREES THAT THIS DOCUMENT REPRESENTS THE
DEFINITIVE AGREEMENT BETWEEN THE PURCHASER AND THE COMPANY WITH REGARD TO THE
ISSUANCE OF COMPANY SECURITIES TO THE PURCHASER AND THAT IT SUPERSEDES ANY OTHER
AGREEMENT, EITHER ORAL OR WRITTEN, RELATING TO THE PURCHASER'S RIGHTS TO COMPANY
SECURITIES. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT ANY AND ALL FUTURE
ISSUANCES OF COMPANY SECURITIES TO THE PURCHASER MUST BE APPROVED BY THE
COMPANY'S BOARD OF DIRECTORS AND EVIDENCED BY AN EXECUTED WRITTEN AGREEMENT IN
ORDER TO BECOME BINDING ON THE COMPANY.

BILL GROSS' IDEALAB!
a California corporation              PURCHASER:  LAWRENCE S. GROSS

By:  -------------------------        -------------------------------
      Marcia Goodstein,               (Signature)
      Chief Operating Officer

                                      -7-
<PAGE>

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

April 19, 1999

FOR VALUE RECEIVED I, Lawrence S. Gross, hereby sell, assign and transfer to
__________________ (___________) shares of the Common Stock of Bill Gross'
idealab! (the "Company") standing in my name on the books of the Company
represented by Certificate No.__________ and do hereby irrevocably constitute
and appoint Wilson Sonsini Goodrich & Rosati, attorney, to transfer said stock
on the books of the Company with full power of substitution in the premises.

This Assignment Separate from Certificate may only be used in accordance with
and pursuant to the terms of the Restricted Stock Purchase Agreement dated April
19, 1999.

                                                   ____________________________
                                                   Lawrence S. Gross

INSTRUCTION: PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE SIGNATURE LINE. THE
PURPOSE OF THIS ASSIGNMENT IS TO ENABLE THE COMPANY TO EXERCISE THE REPURCHASE
RIGHT SET FORTH IN THE AGREEMENT WITHOUT REQUIRING ADDITIONAL SIGNATURE ON THE
PART OF PURCHASER.
<PAGE>

                                    EXHIBIT D

                               SECURITY AGREEMENT

     This Security Agreement is made as of April 19, 1999 between Bill Gross'
idealab!, a California corporation ("Pledgee"), and Lawrence S. Gross
("Pledgor").

                                    RECITALS

     Pursuant to Pledgor's election to purchase Shares under the Restricted
Stock Purchase Agreement dated April 19, 1999 (the "Stock Purchase Agreement"),
between Pledgor and Pledgee under Pledgee's 1999 Stock Plan, and Pledgor's
election under the terms of the Stock Purchase Agreement to pay for such shares
in part with his promissory note (the "Note"), Pledgor has purchased 2,210,000
(Two Million Two Hundred Ten Thousand ) shares of Pledgee's Common Stock (each
individually, a "Share," and collectively, the "Shares") at a price of $0.35
(Thirty Five Cents) per share, for a total purchase price of $773,500 (Seven
Hundred Seventy Three Thousand Five Hundred Dollars). Initially, 442,000 (Four
Hundred Forty Two Thousand) Shares are vested (individually and collectively the
"Vested Shares") and 1,768,000 (One Million Seven Hundred Sixty Eight Thousand)
Shares are unvested (individually and collectively the "Unvested Shares") The
Note, initially in the amount of $618,800 (Six Hundred Eighteen Thousand Eight
Hundred Dollars), and the obligations thereunder are as set forth in EXHIBIT E
to the Stock Purchase Agreement.

     NOW, THEREFORE, it is agreed as follows:

     1. CREATION AND DESCRIPTION OF SECURITY INTEREST. In consideration of the
transfer of the Unvested Shares to Pledgor under the Stock Purchase Agreement,
Pledgor, pursuant to the Delaware Commercial Code, hereby pledges all Unvested
Shares (herein sometimes referred to as the "Collateral") represented in whole
or part by certificate numbers C-885, duly endorsed in blank or with executed
stock powers, and herewith delivers said certificates to the Secretary of
Pledgee ("Pledgeholder"), who shall hold said certificate subject to the terms
and conditions of this Security Agreement.

     The pledged stock (together with an executed blank stock assignment for use
in transferring all or a portion of the Unvested Shares to Pledgee if, as and
when required pursuant to this Security Agreement) shall be held by the
Pledgeholder as security for the repayment of the Note, and any extensions or
renewals thereof, to be executed by Pledgor pursuant to the terms of the Stock
Purchase Agreement, and the Pledgeholder shall not encumber or dispose of such
Unvested Shares except in accordance with the provisions of this Security
Agreement.

     2. PLEDGOR'S REPRESENTATIONS AND COVENANTS. To induce Pledgee to enter into
this Security Agreement, Pledgor represents and covenants to Pledgee, its
successors and assigns, as follows:

        (a) PAYMENT OF INDEBTEDNESS. Pledgor will pay the principal sum of the
Note secured hereby, together with interest thereon, at the time and in the
manner provided in the Note.

                                      -2-
<PAGE>

        (b) ENCUMBRANCES. The Unvested Shares are free of all other
encumbrances, defenses and liens, and Pledgor will not further
encumber the Unvested Shares without the prior written consent of Pledgee.

        (c) MARGIN REGULATIONS. In the event that Pledgee's Common Stock is now
or later becomes margin-listed by the Federal Reserve Board and Pledgee is
classified as a "lender" within the meaning of the regulations under Part 207 of
Title 12 of the Code of Federal Regulations ("Regulation G"), Pledgor agrees to
cooperate with Pledgee in making any amendments to the Note or providing any
additional collateral as may be necessary to comply with such regulations.

     3. VOTING RIGHTS. During the term of this pledge and so long as all
payments of principal and interest are made as they become due under the terms
of the Note, Pledgor shall have the right to vote all of the Unvested Shares
pledged hereunder.

     4. STOCK ADJUSTMENTS. In the event that during the term of the pledge any
stock dividend, reclassification, readjustment or other changes are declared or
made in the capital structure of Pledgee, all new, substituted and additional
unvested shares or other unvested securities issued by reason of any such change
shall be delivered to and held by the Pledgee under the terms of this Security
Agreement in the same manner as the then remaining Unvested Shares originally
pledged hereunder. In the event of substitution of such securities, Pledgor,
Pledgee and Pledgeholder shall cooperate and execute such documents as are
reasonable so as to provide for the substitution of such Collateral and, upon
such substitution, references to "Unvested Shares" in this Security Agreement
shall include the substituted unvested shares of capital stock of Pledgor as a
result thereof.

     5. OPTIONS AND RIGHTS. In the event that, during the term of this pledge,
subscription options or other rights or options shall be issued in connection
with the pledged Unvested Shares, such rights, and options shall be the property
of Pledgor and, if exercised by Pledgor, all new unvested stock or other
unvested securities so acquired by Pledgor as it relates to the pledged Unvested
Shares then held by Pledgeholder shall be immediately delivered to Pledgeholder,
to be held under the terms of this Security Agreement in the same manner as the
then remaining Unvested Shares pledged.

     6. DEFAULT. Pledgor shall be deemed to be in default of the Note and of
this Security Agreement (the "Default") in the event:

        (a) Payment of principal or interest on the Note shall be delinquent for
a period of 10 (ten) days or more; or

        (b) Pledgor fails to perform any of the covenants set forth in the Stock
Purchase Agreement or contained in this Security Agreement for a period of 10
days (ten) after written notice thereof from Pledgee.

     In the case of an event of Default, as set forth above, Pledgee shall have
the right to accelerate payment of the Note upon notice to Pledgor, and Pledgee
shall thereafter be entitled to pursue its remedies under the Delaware
Commercial Code.

     7. RELEASE OF COLLATERAL. Subject to any applicable contrary rules under
Regulation G, there shall be released from this pledge from time to time a
portion of the pledged Shares held by Pledgeholder hereunder upon payments of
the principal of the Note. The number of the pledged Shares which shall be
released shall be that number of full Shares which bears the same proportion

                                      -3-
<PAGE>

to the initial number of Shares pledged hereunder as the payment of principal
bears to the initial full principal amount of the Note. Certificates for
released shares shall be delivered to Pledgor in accordance with the Stock
Purchase Agreement.

     8. WITHDRAWAL OR SUBSTITUTION OF COLLATERAL. Pledgor shall not sell,
withdraw, pledge, substitute or otherwise dispose of all or any part of the
Collateral without the prior written consent of Pledgee.

     9. TERM. The within pledge of Unvested Shares shall continue until the
payment of all indebtedness secured hereby, at which time the remaining pledged
stock shall be promptly delivered to Pledgor, subject to the provisions for
prior release of a portion of the Collateral as provided in paragraph 7 above.

     10. INSOLVENCY. Pledgor agrees that if a bankruptcy or insolvency
proceeding is instituted by or against it, or if a receiver is appointed for the
property of Pledgor, or if Pledgor makes an assignment for the benefit of
creditors, the entire amount unpaid on the Note shall become immediately due and
payable, and Pledgee may proceed as provided in the case of Default.

     11. PLEDGEHOLDER LIABILITY. In the absence of willful or gross negligence,
Pledgeholder shall not be liable to any party for any of his acts, or omissions
to act, as Pledgeholder.

     12. INVALIDITY OF PARTICULAR PROVISIONS. Pledgor and Pledgee agree that the
enforceability or invalidity of any provision or provisions of this Security
Agreement shall not render any other provision or provisions herein contained
unenforceable or invalid.

     13. SUCCESSORS OR ASSIGNS. Pledgor and Pledgee agree that all of the terms
of this Security Agreement shall be binding on their respective successors and
assigns, and that the term "Pledgor" and the term "Pledgee" as used herein shall
be deemed to include, for all purposes, the respective designees, successors,
assigns, heirs, executors and administrators.

     14. GOVERNING LAW. This Security Agreement shall be interpreted and
governed under the internal substantive laws, but not the choice of law rules,
of Delaware.

                                      -4-
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Security Agreement as
of the day and year first above written.

"PLEDGOR"
                                          -------------------------------------
                                          Signature

                                          -------------------------------------
                                          Lawrence S. Gross

Address:                                  16155 High Valley Place
                                          --------------------------------------

                                          Encino, CA 91436
                                          --------------------------------------

"PLEDGEE"                                 BILL GROSS' IDEALAB!
                                          a California corporation

                                          -------------------------------------
                                          Signature

                                          -------------------------------------
                                          Print Name

                                          -------------------------------------
                                          Title

"PLEDGEHOLDER"
                                          -------------------------------------
                                          Secretary of Bill Gross' idealab!

                                      -5-
<PAGE>

                                    EXHIBIT E

                                      NOTE

$618,800                                                          Pasadena, CA
                                                                April 19, 1999

FOR VALUE RECEIVED, Lawrence S. Gross (the "Obligor") promises to pay to Bill
Gross' idealab!, a California corporation (the "Company"), or order, the
principal sum of $618,800 (Six Hundred Eighteen Thousand Eight Hundred Dollars),
together with interest on the unpaid principal hereof from the date hereof at
the rate of 7% (seven percent) per annum, compounded annually.

     1. Interest only shall be paid annually on each of March 31, 2000, 2001,
2002 and 2003 with all principal and remaining interest due on March 31, 2003.
Any cash dividends or cash liquidations due from the Company on the shares of
Common Stock then held by the Obligor shall be paid by Obligor to the Company to
be applied first to any accrued or other interest due and then to principal of
this Note. Payment of principal and interest shall be made in lawful money of
the United States of America.

     2. On the date Obligor ceases to be a service provider (i.e. an employee,
director or consultant) for the Company, payment for all outstanding principal
under this Note (and all interest accrued on this Note) shall be due and
payable.

     3. Obligor may prepay the principal or interest on this Note at any time.

     4. This Note is secured in part by a pledge of the Company's Common Stock
under the terms of a Security Agreement of even date herewith and is subject to
all the provisions thereof.

     5. The holder of this Note shall have full recourse against the
undersigned, and shall not be required to proceed against the collateral
securing this Note in the event of default.

     6. Should any action be instituted for the collection of this Note, the
reasonable costs and attorneys' fees therein of the holder shall be paid by the
undersigned.

                                           ------------------------------------
                                           Lawrence S. Gross

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