Document:

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                                                                    EXHIBIT 10.1

                            INDEMNIFICATION AGREEMENT

         This Indemnification Agreement (the "Agreement") is made as of
<<Date>>, by and between RedEnvelope, Inc., a Delaware corporation (the
"Company"), and <<IndemniteeName>> (the "Indemnitee").

                                    RECITALS

         The Company and Indemnitee recognize the increasing difficulty in
obtaining liability insurance for directors, officers and key employees, the
significant increases in the cost of such insurance and the general reductions
in the coverage of such insurance. The Company and Indemnitee further recognize
the substantial increase in corporate litigation in general, subjecting
directors, officers and key employees to expensive litigation risks at the same
time as the availability and coverage of liability insurance has been severely
limited. Indemnitee does not regard the current protection available as adequate
under the present circumstances, and Indemnitee and agents of the Company may
not be willing to continue to serve as agents of the Company without additional
protection. The Company desires to attract and retain the services of highly
qualified individuals, such as Indemnitee, and to indemnify its directors,
officers and key employees so as to provide them with the maximum protection
permitted by law.

                                    AGREEMENT

         In consideration of the mutual promises made in this Agreement, and for
other good and valuable consideration, receipt of which is hereby acknowledged,
the Company and Indemnitee hereby agree as follows:

         1.       INDEMNIFICATION.

                  (a)      THIRD PARTY PROCEEDINGS. The Company shall indemnify
Indemnitee if Indemnitee is or was a party or is threatened to be made a party
to any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative (other than an action by or in
the right of the Company) by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company, or any subsidiary of the
Company, by reason of any action or inaction on the part of Indemnitee while an
officer or director or by reason of the fact that Indemnitee is or was serving
at the request of the Company as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement (if such settlement is approved in advance by the Company, which
approval shall not be unreasonably withheld) actually and reasonably incurred by
Indemnitee in connection with such action, suit or proceeding if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company, and, with respect to any
criminal action or proceeding, had no reasonable cause to believe Indemnitee's
conduct was unlawful. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo contendere or
its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith and in a manner which Indemnitee

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reasonably believed to be in or not opposed to the best interests of the
Company, or, with respect to any criminal action or proceeding, that Indemnitee
had reasonable cause to believe that Indemnitee's conduct was unlawful.

                  (b)      PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY. The
Company shall indemnify Indemnitee if Indemnitee was or is a party or is
threatened to be made a party to any threatened, pending or completed action or
proceeding by or in the right of the Company or any subsidiary of the Company to
procure a judgment in its favor by reason of the fact that Indemnitee is or was
a director, officer, employee or agent of the Company, or any subsidiary of the
Company, by reason of any action or inaction on the part of Indemnitee while an
officer or director or by reason of the fact that Indemnitee is or was serving
at the request of the Company as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys' fees) and, to the fullest extent
permitted by law, amounts paid in settlement (if such settlement is approved in
advance by the Company, which approval shall not be unreasonably withheld), in
each case to the extent actually and reasonably incurred by Indemnitee in
connection with the defense or settlement of such action or suit if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company and its stockholders, except
that no indemnification shall be made in respect of any claim, issue or matter
as to which Indemnitee shall have been finally adjudicated by court order or
judgment to be liable to the Company in the performance of Indemnitee's duty to
the Company and its stockholders unless and only to the extent that the court in
which such action or proceeding is or was pending shall determine upon
application that, in view of all the circumstances of the case, Indemnitee is
fairly and reasonably entitled to indemnity for such expenses which such court
shall deem proper.

                  (c)      MANDATORY PAYMENT OF EXPENSES. To the extent that
Indemnitee has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in Section 1(a) or Section 1(b) or the
defense of any claim, issue or matter therein, Indemnitee shall be indemnified
against expenses (including attorneys' fees) actually and reasonably incurred by
Indemnitee in connection therewith.

         2.       NO EMPLOYMENT RIGHTS. Nothing contained in this Agreement is
intended to create in Indemnitee any right to continued employment.

         3.       EXPENSES; INDEMNIFICATION PROCEDURE.

                  (a)      ADVANCEMENT OF EXPENSES. The Company shall advance
all expenses incurred by Indemnitee in connection with the investigation,
defense, settlement or appeal of any civil or criminal action, suit or
proceeding referred to in Section l(a) or Section 1(b) hereof (including amounts
actually paid in settlement of any such action, suit or proceeding). Indemnitee
hereby undertakes to repay such amounts advanced only if, and to the extent
that, it shall ultimately be determined that Indemnitee is not entitled to be
indemnified by the Company as authorized hereby.

                  (b)      NOTICE/COOPERATION BY INDEMNITEE. Indemnitee shall,
as a condition precedent to his or her right to be indemnified under this
Agreement, give the Company notice in

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writing as soon as practicable of any claim made against Indemnitee for which
indemnification will or could be sought under this Agreement. Notice to the
Company shall be directed to the Chief Executive Officer of the Company and
shall be given in accordance with the provisions of Section 12(d) below. In
addition, Indemnitee shall give the Company such information and cooperation as
it may reasonably require and as shall be within Indemnitee's power.

                  (c)      PROCEDURE. Any indemnification and advances provided
for in Section 1 and this Section 3 shall be made no later than thirty (30) days
after receipt of the written request of Indemnitee. If a claim under this
Agreement, under any statute, or under any provision of the Company's
Certificate of Incorporation or Bylaws providing for indemnification, is not
paid in full by the Company within thirty (30) days after a written request for
payment thereof has first been received by the Company, Indemnitee may, but need
not, at any time thereafter bring an action against the Company to recover the
unpaid amount of the claim and, subject to Section 11 of this Agreement,
Indemnitee shall also be entitled to be paid for the expenses (including
attorneys' fees) of bringing such action. It shall be a defense to any such
action (other than an action brought to enforce a claim for expenses incurred in
connection with any action, suit or proceeding in advance of its final
disposition) that Indemnitee has not met the standards of conduct which make it
permissible under applicable law for the Company to indemnify Indemnitee for the
amount claimed, but the burden of proving such defense shall be on the Company
and Indemnitee shall be entitled to receive interim payments of expenses
pursuant to Section 3(a) unless and until such defense may be finally
adjudicated by court order or judgment from which no further right of appeal
exists. It is the parties' intention that if the Company contests Indemnitee's
right to indemnification, the question of Indemnitee's right to indemnification
shall be for the court to decide, and neither the failure of the Company
(including its Board of Directors, any committee or subgroup of the Board of
Directors, independent legal counsel, or its stockholders) to have made a
determination that indemnification of Indemnitee is proper in the circumstances
because Indemnitee has met the applicable standard of conduct required by
applicable law, nor an actual determination by the Company (including its Board
of Directors, any committee or subgroup of the Board of Directors, independent
legal counsel, or its stockholders) that Indemnitee has not met such applicable
standard of conduct, shall create a presumption that Indemnitee has or has not
met the applicable standard of conduct.

                  (d)      NOTICE TO INSURERS. If, at the time of the receipt of
a notice of a claim pursuant to Section 3(b) hereof, the Company has director
and officer liability insurance in effect, the Company shall give prompt notice
of the commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

                  (e)      SELECTION OF COUNSEL. In the event the Company shall
be obligated under Section 3(a) hereof to pay the expenses of any proceeding
against Indemnitee, the Company, if appropriate, shall be entitled to assume the
defense of such proceeding, with counsel approved by Indemnitee, upon the
delivery to Indemnitee of written notice of its election so to do. After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to
Indemnitee under this Agreement for any fees

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of counsel subsequently incurred by Indemnitee with respect to the same
proceeding, provided that (i) Indemnitee shall have the right to employ counsel
in any such proceeding at Indemnitee's expense; and (ii) if (A) the employment
of counsel by Indemnitee has been previously authorized by the Company, (B)
Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and Indemnitee in the conduct of any such defense
or (C) the Company shall not, in fact, have employed counsel to assume the
defense of such proceeding, then the fees and expenses of Indemnitee's counsel
shall be at the expense of the Company.

         4.       ADDITIONAL INDEMNIFICATION RIGHTS; NONEXCLUSIVITY.

                  (a)      SCOPE. Notwithstanding any other provision of this
Agreement, the Company hereby agrees to indemnify the Indemnitee to the fullest
extent permitted by law, notwithstanding that such indemnification is not
specifically authorized by the other provisions of this Agreement, the Company's
Certificate of Incorporation, the Company's Bylaws or by statute. In the event
of any change, after the date of this Agreement, in any applicable law, statute,
or rule which expands the right of a Delaware corporation to indemnify a member
of its board of directors or an officer, such changes shall be deemed to be
within the purview of Indemnitee's rights and the Company's obligations under
this Agreement. In the event of any change in any applicable law, statute or
rule which narrows the right of a Delaware corporation to indemnify a member of
its board of directors or an officer, such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement shall have
no effect on this Agreement or the parties' rights and obligations hereunder.

                  (b)      NONEXCLUSIVITY. The indemnification provided by this
Agreement shall not be deemed exclusive of any rights to which Indemnitee may be
entitled under the Company's Certificate of Incorporation, its Bylaws, any
agreement, any vote of stockholders or disinterested members of the Company's
Board of Directors, the General Corporation Law of the State of Delaware, or
otherwise, both as to action in Indemnitee's official capacity and as to action
in another capacity while holding such office. The indemnification provided
under this Agreement shall continue as to Indemnitee for any action taken or not
taken while serving in an indemnified capacity even though he or she may have
ceased to serve in any such capacity at the time of any action, suit or other
covered proceeding.

         5.       PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the expenses, judgments, fines or penalties actually or reasonably
incurred in the investigation, defense, appeal or settlement of any civil or
criminal action, suit or proceeding, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion of
such expenses, judgments, fines or penalties to which Indemnitee is entitled.

         6.       MUTUAL ACKNOWLEDGMENT. Both the Company and Indemnitee
acknowledge that in certain instances, Federal law or public policy may override
applicable state law and prohibit the Company from indemnifying its directors
and officers under this Agreement or otherwise. For example, the Company and
Indemnitee acknowledge that the Securities and Exchange Commission (the "SEC")
has taken the position that indemnification is not permissible for liabilities
arising under certain federal securities laws, and federal legislation prohibits

                                      -4-

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indemnification for certain ERISA violations. Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to
undertake with the SEC to submit the question of indemnification to a court in
certain circumstances for a determination of the Company's right under public
policy to indemnify Indemnitee.

         7.       OFFICER AND DIRECTOR LIABILITY INSURANCE. The Company shall,
from time to time, make the good faith determination whether or not it is
practicable for the Company to obtain and maintain a policy or policies of
insurance with reputable insurance companies providing the officers and
directors of the Company with coverage for losses from wrongful acts, or to
ensure the Company's performance of its indemnification obligations under this
Agreement. Among other considerations, the Company will weigh the costs of
obtaining such insurance coverage against the protection afforded by such
coverage. In all policies of director and officer liability insurance,
Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee the same rights and benefits as are accorded to the most favorably
insured of the Company's directors, if Indemnitee is a director; or of the
Company's officers, if Indemnitee is not a director of the Company but is an
officer; or of the Company's key employees, if Indemnitee is not an officer or
director but is a key employee. Notwithstanding the foregoing, the Company shall
have no obligation to obtain or maintain such insurance if the Company
determines in good faith that such insurance is not reasonably available, if the
premium costs for such insurance are disproportionate to the amount of coverage
provided, if the coverage provided by such insurance is limited by exclusions so
as to provide an insufficient benefit, or if Indemnitee is covered by similar
insurance maintained by a parent or subsidiary of the Company.

         8.       SEVERABILITY. Nothing in this Agreement is intended to require
or shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company's inability, pursuant to court order,
to perform its obligations under this Agreement shall not constitute a breach of
this Agreement. The provisions of this Agreement shall be severable as provided
in this Section 8. If this Agreement or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the balance
of this Agreement not so invalidated shall be enforceable in accordance with its
terms.

         9.       EXCEPTIONS. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

                  (a) CLAIMS INITIATED BY INDEMNITEE. To indemnify or advance
expenses to Indemnitee with respect to proceedings or claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except with respect
to proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under
Section 145 of the Delaware General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the
Board of Directors finds it to be appropriate;

                  (b)      LACK OF GOOD FAITH. To indemnify Indemnitee for any
expenses incurred by Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this

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Agreement, if a court of competent jurisdiction determines that each of the
material assertions made by Indemnitee in such proceeding was not made in good
faith or was frivolous;

                  (c)      INSURED CLAIMS. To indemnify Indemnitee for expenses
or liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) to the
extent such expenses or liabilities have been paid directly to Indemnitee by an
insurance carrier under a policy of officers' and directors' liability insurance
maintained by the Company; or

                  (d)      CLAIMS UNDER SECTION 16(b). To indemnify Indemnitee
for expenses or the payment of profits arising from the purchase and sale by
Indemnitee of securities in violation of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or any similar successor statute.

         10.      CONSTRUCTION OF CERTAIN PHRASES.

                  (a)      For purposes of this Agreement, references to the
"Company" shall include, in addition to the resulting corporation, any
constituent corporation (including any constituent of a constituent) absorbed in
a consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, and employees
or agents, so that if Indemnitee is or was a director, officer, employee or
agent of such constituent corporation, or is or was serving at the request of
such constituent corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
Indemnitee shall stand in the same position under the provisions of this
Agreement with respect to the resulting or surviving corporation as Indemnitee
would have with respect to such constituent corporation if its separate
existence had continued.

                  (b)      For purposes of this Agreement, references to "other
enterprises" shall include employee benefit plans; references to "fines" shall
include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to "serving at the request of the Company" shall
include any service as a director, officer, employee or agent of the Company
which imposes duties on, or involves services by, such director, officer,
employee or agent with respect to an employee benefit plan, its participants, or
beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan, Indemnitee shall be deemed to have acted in a
manner "not opposed to the best interests of the Company" as referred to in this
Agreement.

         11.      ATTORNEYS' FEES. In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys' fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such
action were not made in good faith or were frivolous. In the event of an action
instituted by or in the name of the Company under this Agreement or to enforce
or interpret any of the terms of this Agreement, Indemnitee shall be entitled to
be paid all court costs and expenses, including attorneys' fees, incurred by
Indemnitee in defense of such action (including with respect to

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Indemnitee's counterclaims and cross-claims made in such action), unless as a
part of such action the court determines that each of Indemnitee's material
defenses to such action were made in bad faith or were frivolous.

         12.      MISCELLANEOUS.

                  (a)      GOVERNING LAW. This Agreement and all acts and
transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws
of the State of Delaware, without giving effect to principles of conflict of
law.

                  (b)      ENTIRE AGREEMENT; ENFORCEMENT OF RIGHTS. This
Agreement sets forth the entire agreement and understanding of the parties
relating to the subject matter herein and merges all prior discussions between
them. No modification of or amendment to this Agreement, nor any waiver of any
rights under this Agreement, shall be effective unless in writing signed by the
parties to this Agreement. The failure by either party to enforce any rights
under this Agreement shall not be construed as a waiver of any rights of such
party.

                  (c)      CONSTRUCTION. This Agreement is the result of
negotiations between and has been reviewed by each of the parties hereto and
their respective counsel, if any; accordingly, this Agreement shall be deemed to
be the product of all of the parties hereto, and no ambiguity shall be construed
in favor of or against any one of the parties hereto.

                  (d)      NOTICES. Any notice, demand or request required or
permitted to be given under this Agreement shall be in writing and shall be
deemed sufficient when delivered personally or sent by telegram or fax, or
forty-eight (48) hours after being deposited in the U.S. mail, as certified or
registered mail, with postage prepaid, and addressed to the party to be notified
at such party's address as set forth below or as subsequently modified by
written notice.

                  (e)      COUNTERPARTS. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

                  (f)      SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon the Company and its successors and assigns, and inure to the
benefit of Indemnitee and Indemnitee's heirs, legal representatives and assigns.

                  (g)      SUBROGATION. In the event of payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall execute all documents
required and shall do all acts that may be necessary to secure such rights and
to enable the Company to effectively bring suit to enforce such rights.

                            [Signature Page Follows]

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         The parties hereto have executed this Agreement as of the day and year
set forth on the first page of this Agreement.

                                     RedEnvelope, Inc.

                                     By:    ____________________________________

                                     Title: ____________________________________

                                     Address: 201 Spear Street, 3rd Floor
                                              San Francisco, CA 94105

AGREED TO AND ACCEPTED:

<<IndemniteeName>>

_____________________________________
(Signature)

Address: <<IndemniteeAddress1>>
         <<IndemniteeAddress2>>

                                       -8-<PAGE>

                                                                    EXHIBIT 10.2

                                REDENVELOPE, INC.

                   SERIES F PREFERRED STOCK PURCHASE AGREEMENT

                                 APRIL 17, 2002

<PAGE>

                                REDENVELOPE, INC.

                   SERIES F PREFERRED STOCK PURCHASE AGREEMENT

         This Series F Preferred Stock Purchase Agreement (the "Agreement") is
made as of April 17, 2002 by and between RedEnvelope, Inc., a Delaware
corporation (the "Company"), and the investors listed on Exhibit A attached
hereto (the "Purchasers").

         The parties hereby agree as follows:

         1.       PURCHASE AND SALE OF STOCK.

                  1.1      SALE AND ISSUANCE OF SERIES F PREFERRED STOCK.

                           (a)      The Company shall adopt and file with the
Secretary of State of the State of Delaware on or before the Closing (as defined
below) the Seventh Amended and Restated Certificate of Incorporation in the form
attached hereto as Exhibit B (the "Certificate").

                           (b)      Subject to the terms and conditions of this
Agreement, each Purchaser agrees, severally but not jointly, to purchase at the
Closing and the Company agrees to sell and issue to the Purchasers at the
Closing that number of shares of Series F Preferred Stock, set forth opposite
each such Purchaser's name on Exhibit A attached hereto at a purchase price of
$0.63808 per share (as such price may be adjusted pursuant to Section 6.18
below). The shares of Series F Preferred Stock issued to each Purchaser pursuant
to this Agreement and the Common Stock issuable upon conversion of the Series F
Preferred Stock shall be hereinafter referred to as the "Shares."

                  1.2      CLOSING; DELIVERY.

                           (a)      CLOSING DATE. The initial closing of the
purchase and sale of the Shares shall take place at the offices of Venture Law
Group, a Professional Corporation in Menlo Park, California, at 10:00 a.m., on
April 17, 2002 or at such other time and place as the Company and the Purchasers
mutually agree upon, orally or in writing (which time and place are designated
as the "Initial Closing"). The date of such Closing shall be referred to herein
as the "Closing Date."

                           (b)      At the Closing, the Company shall deliver to
the Purchasers a certificate or certificates representing the Shares being
purchased thereby against payment of the purchase price therefor by check, wire
transfer to the Company's bank account, promissory note, cancellation of
indebtedness or any combination of the foregoing.

                           (c)      Subsequent Issuance of Series F Preferred
Stock. The Company may issue up to 2,139,177 additional shares of Series F
Preferred Stock to such purchasers as it shall select (each, an "Additional
Purchaser"), provided the agreement for issuance is executed not later than
ninety (90) days following the date of the Initial Closing. Any such Additional
Purchaser shall become a party to this Agreement, that certain Amended and
Restated Investors' Rights Agreement of even date herewith, by and among the
Company, the Purchasers and the other

<PAGE>

parties thereto, the form of which is attached hereto as Exhibit C (the
"Investors' Rights Agreement"), that certain Amended and Restated Right of First
Refusal and Co-Sale Agreement of even date herewith, by and among the Company,
the Purchasers and the other parties thereto, the form of which is attached as
Exhibit D (the "Co-Sale Agreement") and that certain Amended and Restated Voting
Agreement of even date herewith, by and among the Company, the Purchasers and
the other parties thereto, the form of which is attached hereto as Exhibit E
(the "Voting Agreement" and together with the Investors' Rights Agreement and
the Co-Sale Agreement, the "Related Agreements"), and shall have the rights and
obligations hereunder and thereunder, by executing and delivering to the Company
an additional counterpart signature page to this Agreement and the Related
Agreements. Any Additional Purchaser so acquiring shares of Series F Preferred
Stock shall be considered a "Purchaser" for purposes of this Agreement and any
Series F Preferred Stock so acquired by such Additional Purchaser shall be
considered "Shares" for purposes of this Agreement. In the event there is more
than one closing, the term "Closing" shall apply to each such closing unless
otherwise specified.

         2.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. The
Company hereby represents, warrants and covenants to each Purchaser that, except
as set forth on a Schedule of Exceptions made available to the Purchasers, which
exceptions shall be deemed to be representations and warranties as if made
hereunder:

                  2.1      ORGANIZATION, GOOD STANDING AND QUALIFICATION. The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite corporate power
and authority and legal right to own and operate its assets and to carry on its
business as now conducted and as proposed to be conducted, and to execute and
deliver this Agreement and all of the other agreements and instruments to be
executed and delivered by the Company, and to consummate the transactions
contemplated hereby and thereby. The Company is duly qualified to transact
business and is in good standing in each jurisdiction in which the failure so to
qualify would reasonably be expected to have a material adverse effect on its
business or properties. True and accurate copies of the Certificate and the
Company's Bylaws, each as amended and in effect at the Closing, have been
delivered to the special counsel of Moussenvelope, L.L.C. designated in Section
6.17 below.

                  2.2      CAPITALIZATION. The authorized capital of the Company
consists, or will consist, immediately prior to the Closing, of:

                           (a)      62,569,576 shares of Preferred Stock, $0.001
par value per share, of which (i) 7,694,809 shares have been designated Series A
Preferred Stock, 7,337,634 of which will be issued and outstanding immediately
prior to the Initial Closing, (ii) 4,510,000 shares have been designated Series
B Preferred Stock, all of which will be issued and outstanding immediately prior
to the Initial Closing, (iii) 6,491,498 shares have been designated Series C
Preferred Stock, all of which will be issued and outstanding immediately prior
to the Initial Closing, (iv) 2,278,996 shares have been designated Series D
Preferred Stock, all of which will be issued and outstanding immediately prior
to the Initial Closing, (v) 17,636,249 shares have been designated Series E
Preferred Stock, 17,291,788 of which will be outstanding immediately prior to
the Initial Closing, and (vi) 23,958,024 shares have been designated Series F
Preferred Stock, none of which will be issued and outstanding immediately prior
to the Initial Closing. The rights, privileges and preferences of the Preferred
Stock are as stated in the Certificate. Immediately prior to the Initial

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Closing all of the outstanding Series A Preferred Stock, Series B Preferred
Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred
Stock will be duly authorized, fully paid and nonassessable and issued in
compliance with all applicable federal and state securities laws.

                           (b)      110,000,000 shares of Common Stock, $0.001
par value per share, 3,610,145 shares of which are issued and outstanding. All
of the outstanding shares of Common Stock have been duly authorized, fully paid
and are nonassessable and issued in compliance with all applicable federal and
state securities laws. The Company has reserved 62,475,115 shares of Common
Stock for issuance upon conversion of the Series A Preferred Stock, the Series B
Preferred Stock, the Series C Preferred Stock, the Series D Preferred Stock, the
Series E Preferred Stock and the Series F Preferred Stock.

                           (c)      The Company has reserved 17,115,632 shares
of Common Stock for issuance to officers, directors, employees and consultants
of the Company pursuant to its 1999 Stock Plan duly adopted by the Board of
Directors and approved by the Company stockholders (the "Stock Plan"). Of such
reserved shares of Common Stock, options to purchase 4,659,159 shares have been
granted and are currently outstanding, 4,259,921 shares of Common Stock have
been issued upon exercise of options, and 8,196,552 shares of Common Stock
remain available for issuance to officers, directors, employees and consultants
pursuant to the Stock Plan.

                           (d)      Except as set forth above and as set forth
in the Investors' Rights Agreement, there are no outstanding options, warrants,
rights (including conversion or preemptive rights and rights of first refusal or
similar rights) or agreements, orally or in writing, for the purchase or
acquisition from the Company of any shares of its capital stock.

                           (e)      No stock plan, stock purchase, stock option,
or other agreement or understanding between the Company and any holder of any
equity securities of the Company or rights to purchase equity securities of the
Company provides for acceleration or other changes in the vesting provisions or
other terms of such securities, as the result of any merger, sale of stock or
assets, change in control or other similar transaction by the Company. Except
for the Voting Agreement (as defined in Section 2.4 below), the Company is not a
party or subject to any agreement or understanding and, to the best of the
Company's knowledge, there is no agreement or understanding between any persons
that affects or relates to the voting or giving of written consents with respect
to any security or the voting by a director of the Company.

                  2.3      SUBSIDIARIES. The Company does not currently own or
control, directly or indirectly, any interest in any other corporation,
association, or other business entity and the Company has never had any
subsidiaries. The Company is not a participant in any joint venture, partnership
or similar arrangement.

                  2.4      AUTHORIZATION. All corporate action on the part of
the Company, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement and the Related
Agreements (collectively, the "Agreements"), the performance of all obligations
of the Company hereunder and thereunder and the authorization, issuance and
delivery of the Shares has been taken or will be taken prior to the Closing, and
the Agreements, when

                                      -3-

<PAGE>

executed and delivered by the Company, shall constitute valid and legally
binding obligations of the Company, enforceable against the Company in
accordance with their terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of
general application affecting enforcement of creditors' rights generally, as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies, or (ii) to the extent the indemnification
provisions contained in the Investors' Rights Agreement may be limited by
applicable federal or state securities laws.

                  2.5      VALID ISSUANCE OF SECURITIES. The Series F Preferred
Stock that is being issued to the Purchasers hereunder, when issued, sold and
delivered in accordance with the terms hereof for the consideration expressed
herein, will be duly and validly issued, fully paid and nonassessable and free
of restrictions on transfer other than restrictions on transfer under the
Agreements, and applicable state and federal securities laws and will have the
rights, preferences, and privileges described in the Certificate. Based in part
upon the representations of the Purchasers in this Agreement and subject to the
provisions of Section 2.6 below, the Series F Preferred Stock issued to each
Purchaser pursuant to this Agreement will be issued in compliance with all
applicable federal and state securities laws. The Common Stock issuable upon
conversion of the Series F Preferred Stock has been duly and validly reserved
for issuance, and upon issuance in accordance with the terms of the Certificate
shall be duly and validly issued, fully paid and nonassessable and free of
restrictions on transfer other than restrictions on transfer under the
Agreements, and applicable federal and state securities laws and will be issued
in compliance with all applicable federal and state securities laws.

                  2.6      GOVERNMENTAL CONSENTS. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
the Company is required in connection with the consummation of the transactions
contemplated by this Agreement, except for filings pursuant to Section 25102(f)
of the California Corporate Securities Law of 1968, as amended, and the rules
thereunder, and any other state securities laws.

                  2.7      LITIGATION. There is no action, suit, proceeding or
investigation pending or, to the best of the Company's knowledge, currently
threatened against the Company that questions the validity of the Agreements or
the right of the Company to enter into them, or to consummate the transactions
contemplated hereby or thereby, or that might result, either individually or in
the aggregate, in any material adverse changes in the assets, condition or
affairs of the Company, financially or otherwise, or any change in the current
equity ownership of the Company, nor is the Company aware that there is any
basis for the foregoing. The foregoing includes, without limitation, actions,
suits, proceedings or investigations pending or, to the best of the Company's
knowledge, threatened (or any basis therefor known to the Company) involving the
prior employment of any of the Company's employees, their use in connection with
the Company's business of any information or techniques allegedly proprietary to
any of their former employers, or their obligations under any agreements with
prior employers. The Company is not a party or subject to the provisions of any
order, writ, injunction, judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or investigation by the
Company currently pending or which the Company intends to initiate.

                                      -4-

<PAGE>

                  2.8      PATENTS AND TRADEMARKS. Set forth on the Schedule of
Patents and Trademarks is a true and complete list of all patents, patent
applications, trademarks, service marks, trademark and service mark applications
and registered copyrights presently owned or held by the Company. The Company
owns or possesses sufficient legal rights to all patents, trademarks, service
marks, trade names, copyrights, trade secrets, licenses, information and
proprietary rights and processes necessary for its business as now conducted
and, as proposed to be conducted, without any conflict with, or infringement of,
the rights of others. There are no outstanding options, licenses or agreements
of any kind relating to the foregoing, nor is the Company bound by or a party to
any options, licenses or agreements of any kind with respect to the patents,
trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information, proprietary rights and processes of any other person or entity. The
Company has not received any communications alleging that the Company has
violated or, by conducting its business as currently conducted and as proposed
would violate any of the patents, trademarks, service marks, tradenames,
copyrights, trade secrets or other proprietary rights or processes of any other
person or entity. The Company is not aware that any of its employees is
obligated under any contract (including licenses, covenants or commitments of
any nature) or other agreement, or subject to any judgment, decree or order of
any court or administrative agency, that would interfere with the use of such
employee's best efforts to promote the interest of the Company or that would
conflict with the Company's business as proposed to be conducted. Neither the
execution or delivery of the Agreements, nor the carrying on of the Company's
business by the employees of the Company, nor the conduct of the Company's
business as proposed, will, to the Company's knowledge, conflict with or result
in a breach of the terms, conditions, or provisions of, or constitute a default
under, any contract, covenant or instrument under which any such employee is now
obligated. The Company does not believe it is or will be necessary to use any
inventions of any of its employees (or persons it currently intends to hire)
made prior to their employment by the Company.

                  2.9      COMPLIANCE WITH OTHER INSTRUMENTS.

                           (a)      The Company is not in violation or default
of any provisions of its Certificate or Bylaws, each as amended and in effect on
and as of the Closing, or of any instrument, judgment, order, writ, decree or
contract to which it is a party or by which it is bound or, to the best of its
knowledge, of any provision of federal or state statute, rule or regulation
applicable to the Company. The execution, delivery and performance of the
Agreements and the consummation of the transactions contemplated hereby or
thereby will not result in any such violation or be in conflict with or
constitute, with or without the passage of time and giving of notice, either a
default under any such provision, instrument, judgment, order, writ, decree or
contract or an event which results in the creation of any lien, charge or
encumbrance upon any assets of the Company.

                           (b)      To the best of its knowledge, after
reasonable investigation, the Company has avoided every condition, and has not
performed any act, the occurrence of which would result in the Company's loss of
any right granted under any license, distribution or other agreement.

                                      -5-

<PAGE>

                  2.10     AGREEMENTS; ACTION. Except as explicitly contemplated
by the Agreements:

                           (a)      There are no written or oral agreements,
understandings or proposed transactions between the Company and any of its
officers, directors, employees, consultants, affiliates, or any affiliate
thereof.

                           (b)      There are no written or oral agreements,
understandings, instruments, contracts, proposed transactions, judgments,
orders, writs or decrees to which the Company is a party or by which it is bound
that involve (i) obligations (contingent or otherwise) of, or payments to, the
Company in excess of $25,000, (ii) the license of any patent, copyright, trade
secret or other proprietary right to or from the Company, (iii) the grant of
rights to manufacture, produce, assemble, license, market, or sell its products
to any other person or that restrict or affect the Company's exclusive right to
develop, manufacture, assemble, license, distribute, market or sell its
products, or (iv) indemnification by the Company with respect to infringements
of proprietary rights.

                           (c)      The Company has not (i) declared or paid any
dividends, or authorized or made any distribution upon or with respect to any
class or series of its capital stock, (ii) incurred any indebtedness for money
borrowed or incurred any other liabilities individually in excess of $25,000 or
in excess of $100,000 in the aggregate, (iii) made any loans or advances to any
person, other than ordinary advances for travel or other standard business
expenses, or (iv) sold, exchanged or otherwise disposed of any of its assets or
rights, other than the sale of its inventory in the ordinary course of business.

                           (d)      To its knowledge, the Company is not a party
to and is not bound by any contract, agreement or instrument, or subject to any
restriction under its Certificate or Bylaws, that materially adversely affects
its business as now conducted or as proposed to be conducted, its properties or
its financial condition.

                  2.11     DISCLOSURE. The Company has fully provided each
Purchaser with all the information which such Purchaser has requested for
deciding whether to acquire the Shares and all information which the Company
believes is reasonably necessary to enable such Purchaser to make such a
decision. Assuming the accuracy of the Purchasers' representations regarding
their sophistication with respect to investments in companies similar to the
Company, neither the Agreements (including any representation or warranty
therein) and the exhibits attached hereto, nor any written statement or
certificate made, delivered or furnished or to be furnished to each Purchaser or
their attorneys or agents in connection with the purchase of the Shares contains
any untrue statement of a material fact or, when taken as a whole, omits to
state a material fact necessary to make the statements contained herein or
therein not misleading in light of the circumstances under which they were made.

                  2.12     NO CONFLICT OF INTEREST. The Company is not indebted,
directly or indirectly, to any of its employees, officers or directors or to
their respective spouses or children, in any amount whatsoever, other than in
connection with expenses or advances of expenses incurred in the ordinary course
of business or relocation expenses of employees. To the Company's

                                      -6-

<PAGE>

knowledge, none of the Company's employees, officers or directors, or any
members of their immediate families, are, directly or indirectly, indebted to
the Company or have any direct or indirect ownership interest in any firm or
corporation with which the Company is affiliated or with which the Company has a
business relationship, or any firm or corporation which competes with the
Company except that employees, officers, directors and/or stockholders of the
Company may own stock in (but not exceeding two percent of the outstanding
capital stock of) any publicly traded companies that may compete with the
Company. To the Company's knowledge, none of the Company's employees, officers
or directors or any members of their immediate families are, directly or
indirectly, interested in any material contract with the Company.

                  2.13     RIGHTS OF REGISTRATION. Except as contemplated in the
Investors' Rights Agreement, the Company has not granted or agreed to grant any
registration rights, including piggyback rights, to any person or entity.

                  2.14     PRIVATE PLACEMENT. Subject in part to the truth and
accuracy of the Purchaser's representations set forth in this Agreement, the
offer, sale and issuance of the Shares, as contemplated by this Agreement, is
exempt from the registration requirements of the Securities Act of 1933, as
amended (the "Securities Act"), and neither the Company nor any authorized agent
acting on its behalf will take any action hereafter that would cause the loss of
such exemption.

                  2.15     TITLE TO PROPERTY AND ASSETS. The Company has good
and marketable title to all property and assets free and clear of all mortgages,
liens, loans and encumbrances, except such encumbrances and liens which arise in
the ordinary course of business and do not materially impair the Company's
ownership or use of such property or assets. With respect to the property and
assets it leases, the Company is in compliance with such leases and, to the best
of its knowledge, holds a good and valid leasehold interest free of any liens,
claims or encumbrances. The Company's properties and assets are in good
operating condition and repair and are reasonably fit and usable for the
purposes for which they are being used, reasonable wear and tear excepted. The
Company is in compliance with all material terms of each lease to which it is a
party or is otherwise bound.

                  2.16     FINANCIAL STATEMENTS. The Company has delivered or
made available to each Purchaser an unaudited balance sheet dated February 24,
2002, an unaudited statement of cash flows for the period ended February 24,
2002, and an unaudited income statement for the period ended February 24, 2002,
(the "Financial Statements"). The Company maintains and will continue to
maintain a standard system of accounting established and administered in
accordance with generally accepted accounting principles. The Financial
Statements have been prepared in accordance with generally accepted accounting
principles applied on a consistent basis throughout the period indicated and
with each other, except that the Financial Statements may not contain all
footnotes required by generally accepted accounting principles. The Financial
Statements fairly present the financial condition and operating results of the
Company as of the dates, and for the periods, indicated therein, subject to
normal year-end adjustments. Except as set forth in the Financial Statements,
the Company has no material liabilities, contingent or otherwise, other than (i)
liabilities incurred in the ordinary course of business subsequent to February
24, 2002, and (ii) obligations under contracts and commitments incurred in the
ordinary course of business and not required under generally accepted accounting
principles to be reflected in the Financial

                                      -7-

<PAGE>

Statements, which, in both cases, individually or in the aggregate, are not
material to the financial condition or operating results of the Company. Except
as disclosed in the Financial Statements, the Company is not a guarantor or
indemnitor of any indebtedness of any other person, firm or corporation.

                  2.17     NO CHANGES. Since February 24, 2002, there has not
been:

                           (a)      any change in the assets, liabilities,
financial condition or operating results of the Company from that reflected in
the Financial Statements, except changes in the ordinary course of business that
have not had, in the aggregate, a materially adverse effect on such assets,
liabilities, financial condition or operations of the Company;

                           (b)      any damage, destruction or loss, whether or
not covered by insurance, materially and adversely affecting the assets,
properties, financial condition, operating results, prospects or business of the
Company (as such business is presently conducted and as it is proposed to be
conducted);

                           (c)      any waiver by the Company of a valuable
right or of a material debt owed to it;

                           (d)      any satisfaction or discharge of any lien,
claim or encumbrance or payment of any obligation by the Company, except in the
ordinary course of business and that is not material to the assets, properties,
financial condition, operating results or business of the Company (as such
business is presently conducted and as it is proposed to be conducted);

                           (e)      any material change to a material contract
or arrangement by which the Company or any of its assets or properties is bound
or subject;

                           (f)      any material change in any compensation
arrangement or agreement with any employee, officer, director or consultant;

                           (g)      any sale, assignment or transfer of any
patents, trademarks, copyrights, trade secrets, or other intangible assets;

                           (h)      any resignation or termination of employment
of any key officer of the Company; and the Company, to the best of its
knowledge, does not know of the impending resignation or termination of
employment of any such officer;

                           (i)      any mortgage, pledge, transfer of a security
interest in, or lien, created by the Company, with respect to any of its
material properties or assets, except liens for taxes not yet due or payable;

                           (j)      any loans or guarantees made by the Company
to or for the benefit of its employees, officers or directors, or any members of
their immediate families, other than travel advances and other advances made in
the ordinary course of its business;

                                      -8-

<PAGE>

                           (k)      any declaration, setting aside or payment or
other distribution in respect of any of the Company's capital stock, or any
direct or indirect redemption, purchase or other acquisition of any of such
stock by the Company other than the repurchase of unvested stock at cost from
employees or consultants in connection with the termination of their employment
or consulting relationship with the Company;

                           (l)      to the best of the Company's knowledge, any
other event or condition of any character that reasonably could be expected to
materially and adversely affect the assets, properties, financial condition,
operating results or business of the Company (as such business is presently
conducted and as it is proposed to be conducted); or

                           (m)      any agreement or commitment by the Company
to do any of the things described in this Section 2.17.

                  2.18     EMPLOYEE BENEFIT PLANS. The Company does not have any
Employee Benefit Plan as defined in the Employee Retirement Income Security Act
of 1974.

                  2.19     TAX RETURNS AND PAYMENTS. The Company has timely
filed all tax returns and reports as required by law. These returns and reports
are true and correct in all material respects. The Company has timely paid all
taxes owed by it or which it is obligated to withhold from amounts owing to an
employee, creditor or third party and other assessments due. The Company has not
been advised (a) that any of its returns, federal, state or other, have been or
are being audited as of the date hereof or (b) of any deficiency in assessment
or proposed judgment to its federal, state or other taxes. The Company is not
aware of any tax liability to be imposed upon its properties or assets as of the
date of this Agreement that would have a material adverse effect upon the
Company's business.

                  2.20     INSURANCE. The Company has in full force and effect
fire and casualty insurance policies, with extended coverage, sufficient in
amount (subject to reasonable deductibles) to allow it to replace any of its
properties that might be damaged or destroyed.

                  2.21     LABOR AGREEMENTS AND ACTIONS. The Company is not
bound by or subject to (and none of its assets or properties is bound by or
subject to) any written or oral, express or implied, contract, commitment or
arrangement with any labor union, and no labor union has requested or, to the
knowledge of the Company, after diligent inquiry, has sought to represent any of
the employees, representatives or agents of the Company. There is no strike or
other labor dispute involving the Company pending, or to the knowledge of the
Company, after diligent inquiry, threatened, which could have a material adverse
effect on the assets, properties, financial condition, operating results, or
business of the Company (as such business is presently conducted and as it is
proposed to be conducted), nor is the Company aware of any labor organization
activity involving its employees. The Company is not aware, after diligent
inquiry, that any officer or key employee, or any group of employees, intends to
terminate their employment with the Company, nor does the Company have a present
intention to terminate the employment of any officer, or key employee or any
group of employees. The employment of each officer and employee of the Company
is terminable at the will of the Company. To its knowledge, the Company has
complied

                                      -9-

<PAGE>

in all material respects with all applicable state and federal equal employment
opportunity laws and with other laws related to employment.

                  2.22     EMPLOYEES; EMPLOYEE COMPENSATION. Each former and
current employee, consultant and officer of the Company, has executed an
agreement with the Company regarding confidentiality and proprietary information
substantially in the form or forms delivered to the counsel for Moussenvelope,
L.L.C. Except as set forth in the Schedule of Exceptions, no former or current
employee, officer or consultant of the Company has excluded works or inventions
made prior to his or her employment with the Company from his or her assignment
of inventions pursuant to such employee, officer or consultant's Confidential or
Proprietary Information and Inventions Agreement. The Company, after reasonable
investigation, is not aware that any of its former or CURRENT employees or
consultants is in violation thereof, and the Company will use its best efforts
to prevent any such violation. All former or current consultants to or vendors
of the Company, with access to confidential information of the Company are
parties to a written agreement substantially in the form or forms provided to
counsel for the Purchasers under which, among other things, each such consultant
or vendor is obligated to maintain the confidentiality of confidential
information of the Company. The Company, after reasonable investigation, is not
aware that any of its former or current consultants or vendors are in violation
thereof, and the Company will use its best efforts to prevent any such
violation. The Company is not a party to or bound by any currently effective
employment contract, deferred compensation agreement, bonus plan, incentive
plan, profit sharing plan, retirement agreement or other employee compensation
agreement or arrangement with any collective bargaining agent. The Company is
not aware that any of its employees is obligated under any contract (including
licenses, covenants or commitments of any nature) or other agreement, or subject
to any judgment, decree or order of any court or administrative agency, that
would interfere with the use of such employee's best efforts to promote the
interest of the Company or that would conflict with the Company's business.
Neither the execution or delivery of this Agreement, nor the carrying on of the
Company's business by the employees of the Company, nor the conduct of the
Company's business as proposed, will, to the Company's knowledge, conflict with
or result in a breach of the terms, conditions, or provisions of, or constitute
a default under, any contract, covenant or instrument under which any such
employee is now obligated.

                  2.23     PERMITS. The Company has all franchises, permits,
licenses and any similar authority necessary for the conduct of its business as
now being conducted by it, the lack of which could materially and adversely
affect the business, properties, prospects, or financial condition of the
Company and believes that it can obtain, without undue burden or expense, any
similar authority for the conduct of its business as planned to be conducted.
The Company is not in default in any material respect under any of such
franchises, permits, licenses or other similar authority.

                  2.24     CORPORATE DOCUMENTS. The minute books of the Company
contain minutes of all meetings of directors and stockholders and all actions by
written consent without a meeting by the directors and stockholders since the
date of incorporation and reflect all actions by the directors (and any
committee of directors) and stockholders with respect to all transactions
referred to in such minutes accurately in all material respects.

                                      -10-

<PAGE>

                  2.25     REAL PROPERTY HOLDING CORPORATION. The Company is not
a United States real property holding corporation within the meaning of Internal
Revenue Code Section 897(c)(2) and any regulations promulgated thereunder.

                  2.26     ENVIRONMENTAL AND SAFETY LAWS. To the best of its
knowledge, the Company is not in violation of any applicable statute, law,
ordinance or regulation relating to the environment or occupational health and
safety, and, to the best of its knowledge, no material expenditures are or will
be required in order to comply with any such existing statute, law or
regulation.

                  2.27     STOCKHOLDER AGREEMENTS. Except as contemplated by the
Agreements, there are no agreements between the Company and any of the Company's
stockholders, or to the best knowledge of the Company, among any of the
Company's stockholders, which in any way affect any stockholder's ability or
right to freely transfer or vote such shares (except restrictions designed to
provide compliance with securities laws).

                  2.28     BROKERS OR FINDERS. The Company has not agreed to
incur, directly or indirectly, any liability for brokerage or finders' fees,
agents' commissions or other similar charges in connection with this Agreement
or any of the transactions contemplated hereby. The Company shall pay, and hold
each Purchaser harmless against, any liability, loss or expense (including,
without limitation, reasonable attorney's fees and out-of-pocket expenses)
arising in connection with any such claim.

                  2.29     COMPLIANCE WITH LAWS. The Company, to the best of its
knowledge, has complied and continues to be in compliance in all material
respects with all Federal and state laws, ordinances, rules, regulations and
orders applicable to the conduct of its business or the ownership of its
properties, other than any non-compliance that would not materially and
adversely affect the business assets, liabilities, financial condition,
operations or prospects of the Company and its business.

         3.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each
Purchaser, severally and not jointly, hereby represents and warrants to the
Company as of the Closing Date that:

                  3.1      AUTHORIZATION. The Agreements, when executed and
delivered by the Purchaser, will constitute valid and legally binding
obligations of such Purchaser, enforceable in accordance with their terms,
except (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, and any other laws of general application
affecting enforcement of creditors' rights generally, and as limited by laws
relating to the availability of a specific performance, injunctive relief, or
other equitable remedies, or (b) to the extent the indemnification provisions
contained in the Investors' Rights Agreement may be limited by applicable
federal or state securities laws.

                  3.2      PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is
made with the Purchaser in reliance upon such Purchaser's representation to the
Company, which by such Purchaser's execution of this Agreement, such Purchaser
hereby confirms, that the Shares to be acquired by such Purchaser will be
acquired for investment for such Purchaser's own account, not

                                      -11-

<PAGE>

as a nominee or agent, and not with a view to the resale or distribution of any
part thereof, and that such Purchaser has no present intention of selling,
granting any participation in, or otherwise distributing the same. By executing
this Agreement, such Purchaser further represents that such Purchaser does not
presently have any contract, undertaking, agreement or arrangement with any
person to sell, transfer or grant participations to such person or to any third
person, with respect to any of the Shares. Such Purchaser represents that it has
full power and authority to enter into this Agreement.

                  3.3      DISCLOSURE OF INFORMATION. Such Purchaser has had an
opportunity to discuss the Company's business, management, financial affairs and
the terms and conditions of the offering of the Shares with the Company's
management. Such Purchaser understands that such discussions, as well as the
written information issued by the Company, were intended to describe the aspects
of the Company's business which the Company believes to be material. The
foregoing does not limit or modify in any way the representations and warranties
of the Company contained in Section 2 of this Agreement or the right of such
Purchaser to rely thereon.

                  3.4      RESTRICTED SECURITIES. Such Purchaser understands
that the Shares have not been, and will not be, registered under the Securities
Act, by reason of a specific exemption from the registration provisions of the
Securities Act which depends upon, among other things, the bona fide nature of
the investment intent and the accuracy of such Purchaser's representations as
expressed herein. Such Purchaser understands that the Shares are characterized
as "restricted securities" under the federal securities laws inasmuch as they
are being acquired from the Company in a transaction not involving a public
offering and that under such laws and applicable regulations such Shares may be
resold without registration under the Securities Act only in certain limited
circumstances. Such Purchaser acknowledges that the Shares must be held
indefinitely unless subsequently registered under the Securities Act or an
exemption from such registration is available. Such Purchaser is aware of the
provisions of Rule 144 promulgated under the Securities Act which permit limited
resale of shares purchased in a private placement subject to the satisfaction of
certain conditions, including, among other things, the existence of a public
market for the shares, the availability of certain current public information
about the Company, the resale occurring not less than a specified number of
years after a party has purchased and paid for the security to be sold, the sale
being effected through a "broker's transaction" or in transactions directly with
a "market maker" (as provided by Rule 144(f)) and the number of shares being
sold during any three-month period not exceeding specified limitations.

                  3.5      NO PUBLIC MARKET. Such Purchaser understands that no
public market now exists for any of the securities issued by the Company, and
that the Company has made no assurances that a public market will ever exist for
the Shares.

                  3.6      INVESTMENT EXPERIENCE. Such Purchaser has experience
with respect to investments in early-stage companies and understands the high
degree of risk associated with such investments, such Purchaser acknowledges
that it is able to fend for itself, can bear the economic risk of its investment
(including the loss of a portion or all of the money to be invested), and has
such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of its investment in the Company and
has the capacity to protect its own interests.

                                      -12-

<PAGE>

                  3.7      LEGENDS. Such Purchaser understands that the Shares,
and any securities issued in respect thereof or exchange therefor, may bear one
or all of the following legends:

                           (a)      "THE SHARES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND 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 FOR
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
1933."

                           (b)      Any legend required by the blue sky laws of
any state or other jurisdiction to the extent such laws are applicable to the
shares represented by the certificate so legended.

                  3.8      ACCREDITED INVESTOR. Such Purchaser is an "accredited
investor" as defined in Rule 501(a) of Regulation D promulgated under the
Securities Act, which definition is attached hereto as Exhibit G.

                  3.9      FOREIGN INVESTORS. If the Purchaser is not a United
States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of
1986, as amended), such Purchaser hereby represents that it has satisfied itself
as to the full observance of the laws of its jurisdiction in connection with any
invitation to subscribe for the Stock or any use of this Agreement, including
(i) the legal requirements within its jurisdiction for the purchase of the
Stock, (ii) any foreign exchange restrictions applicable to such purchase, (iii)
any governmental or other consents that may need to be obtained, and (iv) the
income tax and other tax consequences, if any, that may be relevant to the
purchase, holding, redemption, sale, or transfer of the Stock. Such Purchaser's
subscription and payment for and continued beneficial ownership of the Stock,
will not violate any applicable securities or other laws of the Purchaser's
jurisdiction.

         4.       CONDITIONS OF THE PURCHASERS' OBLIGATIONS AT CLOSING. The
obligations of each Purchaser to the Company under this Agreement are subject to
the fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived:

                  4.1      NO INJUNCTION, ETC. No preliminary or permanent
injunction or other binding order, decree or ruling issued by a court or
governmental agency shall be in effect which shall have the effect or preventing
the consummation of the transactions contemplated by this Agreement.

                  4.2      REPRESENTATIONS AND WARRANTIES. The representations
and warranties of the Company contained in Section 2 shall be true and correct
on and as of the Initial Closing with the same effect as though such
representations and warranties had been made on and as of the date of the
Initial Closing.

                                      -13-

<PAGE>

                  4.3 PERFORMANCE. The Company shall have performed and complied
with all covenants, agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Closing.

                  4.4      COMPLIANCE CERTIFICATE. The President of the Company
shall deliver to each Purchaser at the Closing a certificate certifying that the
conditions specified in Sections 4.1, 4.2 and 4.3 have been fulfilled.

                  4.5      QUALIFICATIONS. All authorizations, approvals or
permits, if any, of any governmental authority or regulatory body of the United
States or of any state that are required in connection with the lawful issuance
and sale of the Shares pursuant to this Agreement shall be obtained and
effective as of the Closing.

                  4.6      OPINION OF COMPANY COUNSEL. The Purchasers shall have
received from Venture Law Group, counsel for the Company, an opinion, dated as
of the Closing, in form and substance reasonably satisfactory to counsel to the
Purchasers.

                  4.7      BOARD OF DIRECTORS. The Bylaws of the Company shall
provide for a board of up to eight (8) directors. Immediately following the
Closing, the Board shall be comprised of Michael Dunn, Hilary Billings, Pat
Connolly, Jacqueline Macdonald, Alison May, Michael Moritz and Claire Gruppo.

                  4.8      AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT. The
Company, the holders of at least 55% of the Series B Preferred Stock, the Series
C Preferred Stock, the Series D Preferred Stock, and the Series E Preferred
Stock and the Purchasers shall have executed and delivered the Amended and
Restated Investors' Rights Agreement in substantially the form attached hereto
as Exhibit C, which shall be in full force and effect as of the Closing.

                  4.9      CERTIFICATE. The Company shall have filed the
Certificate with the Secretary of State of Delaware on or prior to the Closing,
which shall continue to be in full force and effect as of the Closing.

                  4.10     AMENDED AND RESTATED CO-SALE AGREEMENT. The Company,
Scott Galloway, Ian Chaplin, Pete Baltaxe, Hilary Billings, Martin McClanan, Tom
Bazzone, the holders of a majority the Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock and Series E Preferred Stock, voting
together, shall have executed and delivered the Amended and Restated Co-Sale
Agreement in substantially the form attached hereto as Exhibit D which shall be
in full force and effect as of the Closing.

                  4.11     AMENDED AND RESTATED VOTING AGREEMENT. The Company
and the holders of a majority of the Series A Preferred Stock, Series B
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, and the
Series E Preferred Stock, voting together, shall have executed and delivered the
Amended and Restated Voting Agreement substantially in the form attached hereto
as Exhibit E which shall be in full force and effect as of the Closing.

                                      -14-

<PAGE>

                  4.12     CORPORATE PROCEEDINGS. All corporate and other
proceedings required to carry out the transactions shall be reasonably
satisfactory in form and substance to the counsel to Moussenvelope, L.L.C., and
the Purchasers shall have been furnished with such instruments and documents as
such counsel shall have reasonably requested.

                  4.13     SECRETARY CERTIFICATE. The Secretary of the Company
shall deliver to Purchasers at the Closing (i) certified copies of the
resolutions adopted by the Company's board of directors and stockholders
authorizing the execution, delivery and performance of the transactions
contemplated by this Agreement (ii) a certified copy of the Company's bylaws as
in effect at the Closing and (iii) a certificate certifying that the Company is
in good standing in the state of Delaware and in each jurisdiction where
qualification to do business is required.

                  4.14     MINIMUM CLOSING. The Company shall sell and the
Purchasers shall purchase at least an aggregate of 21,157,221 Shares at the
Initial Closing.

         5.       CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING. The
obligations of the Company to the Purchasers under this Agreement are subject to
the fulfillment, on or before the Closing, of each of the following conditions,
unless otherwise waived:

                  5.1 REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Purchasers contained in Section 3 shall be true and correct in
all material respects on and as of the Closing with the same effect as though
such representations and warranties had been made on and as of the Closing.

                  5.2 PERFORMANCE. All covenants, agreements and conditions
contained in this Agreement to be performed by the Purchasers on or prior to the
Closing shall have been performed or complied with in all material respects.

                  5.3 QUALIFICATIONS. All authorizations, approvals or permits,
if any, of any governmental authority or regulatory body of the United States or
of any state that are required in connection with the lawful issuance and sale
of the Shares pursuant to this Agreement shall be obtained and effective as of
the Closing.

                  5.4 CORPORATE PROCEEDINGS. All corporate and other proceedings
required to carry out the transactions shall be reasonably satisfactory in form
and substance to the counsel to the Company, and the Company shall have been
furnished with such instruments and documents as such counsel shall have
reasonably requested.

         6.       MISCELLANEOUS.

                  6.1      SURVIVAL OF WARRANTIES. Unless otherwise set forth in
this Agreement, the warranties, representations and covenants of the Company and
the Purchasers contained in or made pursuant to this Agreement shall survive the
execution and delivery of this Agreement and the Closing.

                                      -15-

<PAGE>

                  6.2      TRANSFER; SUCCESSORS AND ASSIGNS. The terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties. Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

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

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

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

                  6.6      NOTICES. Any notice required or permitted by this
Agreement shall be in writing and shall be deemed sufficient upon delivery, when
delivered personally, or 24 hours after prepaid deposit, by overnight courier or
sent by telegram or fax after confirmation of receipt of such transmission, or
as of 5 business days after being deposited in the U.S. mail, as certified or
registered mail, with postage prepaid, addressed to the party to be notified at
such party's address as set forth below or on Exhibit A hereto, or as
subsequently modified by written notice, if such notice is sent to the Company,
with a copy to Keith A. Miller, Venture Law Group, 2775 Sand Hill Road, Menlo
Park, California 94025.

                  6.7      FINDER'S FEE. Each party represents that it neither
is nor will be obligated for any finder's fee or commission in connection with
this transaction. Each Purchaser agrees to indemnify and to hold harmless the
Company from any liability for any commission or compensation in the nature of a
finder's fee (and the costs and expenses of defending against such liability or
asserted liability) for which such Purchaser or any of its officers, employees,
or representatives is responsible. The Company agrees to indemnify and hold
harmless the Purchasers from any liability for any commission or compensation in
the nature of a finder's fee (and the costs and expenses of defending against
such liability or asserted liability) for which the Company or any of its
officers, employees or representatives is responsible.

                  6.8      ATTORNEY'S FEES. If any action at law or in equity
(including arbitration) is necessary to enforce or interpret the terms of any of
the Agreements, the prevailing party shall be entitled to reasonable attorney's
fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

                  6.9      AMENDMENTS AND WAIVERS. Any term of this Agreement
may be amended or waived with the written consent of the Company and the holders
of at least a majority of the

                                      -16-

<PAGE>

Common Stock issued or issuable upon conversion of the Shares. Any amendment or
waiver effected in accordance with this Section 6.9 shall be binding upon the
Purchasers and each transferee of the Shares (or the Common Stock issuable upon
conversion thereof), each future holder of all such securities, and the Company.

                  6.10     SEVERABILITY. Any provision of this Agreement which
is held to be invalid or unenforceable in any jurisdiction shall be ineffective
to the extent of such invalidity or unenforceability without invalidating or
rendering unenforceable the remaining provisions hereof, and any such invalidity
or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. If any provision is held
to be invalid or unenforceable, such provision shall be construed by the
appropriate judicial body by limiting or reducing it to the minimum extent
necessary to make it legally enforceable.

                  6.11     DELAYS OR OMISSIONS. No delay or omission to exercise
any right, power or remedy accruing to any holder of any of the Shares, upon any
breach or default of the Company under the Agreements, shall impair any such
right, power or remedy of such holder nor shall it be construed to be a waiver
of any such breach or default, or an acquiescence therein, or of or in any
similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default
before or thereafter occurring. Any waiver, permit, consent or approval of any
kind or character on the part of any holder of any breach or default under the
Agreements, or any waiver on the part of any holder of any provisions or
conditions of the Agreements, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies, either under
the Agreements or by law or otherwise afforded to any holder, shall be
cumulative and not alternative.

                  6.12     ENTIRE AGREEMENT. This Agreement, and the documents
referred to herein constitute the entire agreement between the parties hereto
pertaining to the subject matter hereof, and any and all other written or oral
agreements existing between the parties hereto are expressly canceled.

                  6.13     CORPORATE SECURITIES LAW. 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 THE
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR
PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT
FROM THE QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY
CONDITIONED UPON THE QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT.

                  6.14     CONFIDENTIALITY. Each party hereto agrees that,
except with the prior written permission of the other party, and except as
required by law, it shall at all times keep confidential and not divulge,
furnish or make accessible to anyone any confidential information, knowledge or
data concerning or relating to the business or financial affairs of the other
parties to which such party has been or shall become privy by reason of this
Agreement, discussions or negotiations relating to this Agreement, the
performance of its obligations hereunder or the ownership of Shares

                                      -17-

<PAGE>

purchased hereunder. The provisions of this Section 6.14 shall be in addition
to, and not in substitution for, the provisions of any separate nondisclosure
agreement executed by the parties hereto with respect to the transactions
contemplated hereby.

                  6.15     EXCULPATION OF PURCHASERS. Each Purchaser
acknowledges that it is not relying upon any person, firm or corporation, other
than the Company and its officers and directors, in making its investment or
decision to invest in the Company.

                  6.16     WAIVER OF CONFLICTS. Each party to this Agreement
acknowledges that Venture Law Group, counsel for the Company, has in the past
performed and may continue to perform legal services for certain of the
Purchasers in matters unrelated to the transactions described in this Agreement,
including the representation of such Purchasers in venture capital financings
and other matters. Accordingly, each party to this Agreement hereby (a)
acknowledges that they have had an opportunity to ask for information relevant
to this disclosure; and (b) gives its informed consent to Venture Law Group's
representation of certain of the Purchasers in such unrelated matters and to
Venture Law Group's representation of the Company in connection with this
Agreement and the transactions contemplated hereby.

                  6.17     FEES AND EXPENSES. The Company shall at the Closing,
pay the reasonable fees and expenses of Willkie, Farr & Gallagher, counsel to
Moussenvelope, L.L.C., incurred with respect to this Agreement, the documents
referred to herein and the transactions contemplated hereby and thereby, up to
$25,000.

                  6.18     PURCHASE PRICE ADJUSTMENTS. The parties hereto
acknowledge that the price per share of the Series F Preferred Stock was
calculated based on a pre-financing valuation of $42,000,000 divided by the
total shares of Company capital stock, on a fully-diluted,
as-converted-to-Common Stock basis (including authorized, but unallocated shares
of stock available for issuance under the Company's Employee Stock Option Plan)
immediately prior to the Initial Closing, including additional shares of Common
Stock that will become issuable to the holders of Series C, Series D and Series
E Preferred Stock as a result of the issuance of the Shares by operation of the
antidilution provisions of Article IV, Section 4(d)(i) of the Certificate. The
parties further acknowledge that the price was calculated assuming 23,508,024
shares of Series F Preferred Stock would be sold in the Financing. As less than
23,508,024 shares of Series F Preferred Stock is to be sold in the Initial
Closing, in the event that, after any and all Subsequent Closings hereunder, the
aggregate amount of Series F Preferred Stock sold by the Company is less than
23,508,024 shares, the parties acknowledge and agree that the Company may
thereafter (a) re-calculate the purchase price for the Series F Preferred Stock
based on the number of shares of Series F Preferred Stock actually sold in the
Financing, which shall be effected by adjusting upward the Conversion Price for
the Series F Preferred Stock (as set forth in the Certificate) to such new price
and (b) amend the Restated Certificate to reflect such adjustment.

                            [SIGNATURE PAGES FOLLOW]

                                      -18-

<PAGE>

         The parties have executed this Series F Preferred Stock Purchase
Agreement as of the date first written above.

                                           COMPANY:

                                           REDENVELOPE, INC.

                                           By: /s/ Alison May
                                               _________________________________

                                           Name: Alison May
                                                _______________________________

                                           Title: President and CEO
                                                 _______________________________

          SIGNATURE PAGE TO SERIES F PREFERRED STOCK PURCHASE AGREEMENT

<PAGE>

                                         PURCHASER:

                                         MOUSSENVELOPE, L.L.C.

                                        By: Moussescapade, L.P., Managing Member

                                        By: Moussescribe, its General Partner

                                        By: /s/ Charles Heilbronn
                                             ___________________________________
                                             Charles Heilbronn
                                             President

                                        Address: c/o Mousse Partners Limited
                                                  9 West 57th Street
                                                  New York, New York 10019

                                        WESTON PRESIDIO CAPITAL III, L.P.

                                        By: /s/ James B. McElwee
                                             ___________________________________

                                        Name: James B. McElwee
                                             ___________________________________

                                        Title: General Partner
                                             ___________________________________

                                        Address: 2420 Sand Hill Road
                                                 Suite 206
                                                 Menlo Park, CA 94025

                                        WPC ENTREPRENEUR FUND, L.P.

                                        By: /s/ James B. McElwee
                                             ___________________________________

                                        Name: James B. McElwee
                                             ___________________________________

                                        Title: General Partner
                                             ___________________________________

                                        Address: 2420 Sand Hill Road
                                                 Suite 206
                                                 Menlo Park, CA 94025

                   SIGNATURE PAGE TO SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT

<PAGE>
                                       SEQUOIA CAPITAL IX
                                       SEQUOIA CAPITAL ENTREPRENEURS FUND
                                       SEQUOIA CAPITA IX PRINCIPALS FUND

                                       By: SC IX Management, LLC
                                           A Delaware Limited Liability Company
                                           General Partner of Each

                                       By: [Illegible]
                                           -------------------------------------
                                           Managing Member

                                       Address:

                                       SEQUOIA CAPITAL FRANCHISE FUND
                                       SEQUOIA CAPITAL FRANCHISE PARTNERS

                                       By: SCOFF Management, LLC
                                           A Delaware Limited Liability Company
                                           General Partner of Each

                                       By: [Illegible]
                                           -------------------------------------
                                           Managing Member

                                       Address:

                                       ATRIUM VENTURE PARTNERS, L.P.
                                       BY ATRIUM VENTURE LLC, GENERAL PARTNER

                                       By: /s/ Jonathan E. Rattner
                                           -------------------------------------

                                       Name: Jonathan E. Rattner
                                             -----------------------------------

                                       Title: Chief Operating Officer
                                              ----------------------------------

                                       Address: 3000 Sand Hill Road, #2-240
                                                Menlo Park, CA 94025

                                       CAMELOT VENTURES LLC

                                       By: /s/ Nicholas Pyatt
                                           -------------------------------------

                                       Name: Nicholas Pyatt
                                             -----------------------------------

                                       Title: CFO
                                              ----------------------------------

                                       Address:

                                       SIPPL MACDONALD VENTURES II, L.P.

                                       By: /s/ Glenn C. Myers
                                           -------------------------------------

                                       Name: Glenn C. Myers
                                             -----------------------------------

                                       Title: CFO
                                              ----------------------------------

                                       Address: 1422 EL Camino Real
                                                Menlo Park, CA 94025

                                       SIPPL MACDONALD VENTURES III, L.P.

                                       By: /s/ Glenn C. Myers
                                           -------------------------------------

                                       Name: Glenn C. Myers
                                             -----------------------------------

                                       Title: CFO
                                              ----------------------------------

                                       Address:

                                       /s/ Peter Baltaxe
                                       -----------------------------------------
                                       PETER BALTAXE

                                       Address:

                                       /s/ Douglas Bertozzi
                                       -----------------------------------------
                                       DOUGLAS BERTOZZI

                                       Address:

                                       /s/ Anthony P. Brenner
                                       -----------------------------------------
                                       ANTHONY P. BRENNER

                                       Address: 1466 Greenwich Street
                                                San Francisco, CA 94109

                   SIGNATURE PAGE TO SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT
<PAGE>
                                       Capital Research & Management
                                       Company, on behalf of SMALL CAP
                                       World Fund, Inc.

                                       By: [Illegible]

                                       Name:

                                       Title:

                                       Address:

                                       /s/ Pat Connolly
                                       -----------------------------------------
                                       Patrick Connolly

                                       Address:

                                       GCC RedEnvelope

                                       By: /s/ R. Ian Chaplin
                                          --------------------------------------
                                       Name: R. Ian Chaplin
                                            ------------------------------------
                                       Title: Partner
                                              ----------------------------------

                                       Address: 716 La Canada Street
                                                La Jolla, CA 92037

                                       /s/ Jamie Cheng
                                       -----------------------------------------
                                       Jamie Cheng

                                       Address: 96 Outlook Circle
                                                Pacifica, CA 94044
<PAGE>
                                   DOUGERY VENTURES

                                   By: /s/ John R. Dougery
                                      ------------------------------------------
                                   Name: John R. Dougery
                                        ----------------------------------------
                                   Title: Pres
                                          --------------------------------------
                                   Address:

                                   JOHN R. DOUGERY AND MARILYN R. DOUGERY,
                                   TRUSTEES FOR THE DOUGERY REVOCABLE TRUST

                                   By: /s/ John R. Dougery
                                      ------------------------------------------
                                   Name: John R. Dougery
                                        ----------------------------------------
                                   Title: Trustee
                                          --------------------------------------
                                   Address:

                                   JOHN R. DOUGERY, TRUSTEE FOR THE JOHN R.
                                   DOUGERY JR. TRUST

                                   By: /s/ John R. Dougery
                                      ------------------------------------------
                                   Name: John R. Dougery
                                        ----------------------------------------
                                   Title:
                                          --------------------------------------
                                   Address:

                   SIGNATURE PAGE TO SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT
<PAGE>
                                   JOHN R. DOUGERY, TRUSTEE FOR THE KATHRYN
                                   ANN DOUGERY TRUST

                                   By: /s/ John R. Dougery
                                       -----------------------------------------
                                   Name: John R. Dougery
                                         ---------------------------------------
                                   Title: Trustee
                                          --------------------------------------
                                   Address:

                                   JOHN R. DOUGERY, TRUSTEE FOR THE SHELLEY
                                   DOUGERY TRUST

                                   By: /s/ John R. Dougery
                                       -----------------------------------------
                                   Name: John R. Dougery
                                         ---------------------------------------
                                   Title: Trustee
                                          --------------------------------------
                                   Address:

                                   MARILYN R. DOUGERY, TRUSTEE FOR THE MARILYN
                                   R. DOUGERY SEPARATE PROPERTY TRUST

                                   By: /s/ Marilyn R. Dougery
                                       -----------------------------------------
                                   Name: Marilyn R. Dougery
                                         ---------------------------------------
                                   Title: Trustee
                                          --------------------------------------
                                   Address:

                                   MARILYN R. DOUGERY, TRUSTEE OF THE ROLAPP
                                   TRUST

                                   By: /s/ Marilyn R. Dougery
                                       -----------------------------------------
                                   Name: Marilyn R. Dougery
                                         ---------------------------------------
                                   Title: Trustee
                                          --------------------------------------
                                   Address:

                                   /s/ Craig Foley
                                   ---------------------------------------------
                                   CRAIG FOLEY

                                   Address: FOLEY
                                            7 LOCUST LANE
                                            BRONXVILLE, NY 10708

                   SIGNATURE PAGE TO SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT

<PAGE>
/s/ Seymour F. Kaufman
----------------------------------------
SEYMOUR F. KAUFMAN

Address: Crosslink Capital
         #2 Embarcadero Center
         Ste. 2200
         San Francisco, CA 94111

/s/ Michael P. Lazarus
----------------------------------------
MICHAEL P. LAZARUS

Address:

THE ADAM AND REBECCA MARKMAN TRUST,
ADAM AND REBECCA MARKMAN AT TTEE
U/A/T DATED 5/12/99

By:      /s/ Adam Markman
         -------------------------------

Name:    Adam Markman
         -------------------------------

Title:   Trustee
         -------------------------------

Address:

/s/ David Markman
-------------------------------
DAVID MARKMAN

Address:

MICHAEL L. MEYER LIVING TRUST

By:      /s/ Michael L. Meyer
         -------------------------------

Name:    Michael L. Meyer Living Trust

Title:   Trustee

Address: 1757 Ocean Way
         Laguna Beach, CA 92651

/s/ William D. Michelini
-------------------------------
WILLIAM D. MICHELINI

Address:

                   SIGNATURE PAGE TO SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT
<PAGE>
                                    W. DEXTER PAINE, III AND SUSAN L. PAINE,
                                    TRUSTEES OF PAINE FAMILY TRUST, UDT
                                    DATED 10/13/94, AS AMENDED

                                    By: Paine Family Trust
                                        ---------------------
                                    Name: /s/ [ILLEGIBLE]
                                          -------------------
                                    Title: Trustee
                                           ------------------

                                    Address:

                                    PHILLIPS-SMITH SPECIALTY RETAIL GROUP III,
                                    L.P.

                                    By: Phillips-Smith Management
                                         Company, L.P., its General Partner

                                    By:   /s/ Cece Smith
                                          -------------------------
                                    Name: Cece Smith
                                          -------------------------
                                    Title: Managing General Partner
                                           ------------------------

                                    Address: 5080 Spectrum Drive
                                             Suite 805 West
                                             Addison, TX  75001

                                    /s/ Paul Sagan
                                    ---------------------------
                                    PAUL SAGAN

                                    Address: 5 Sunset Ridge
                                             LEXINGTON, MA  02421

                                    SENIORTRAK, INC.

                                    By: /s/ Lee M. Caudill
                                        ------------------------
                                    Name: LEE M CAUDILL
                                          ----------------------
                                    Title: President
                                           ---------------------
                                    Address: 1080 Chestnut St, #16A
                                             San Francisco, CA  94109

                                    /s/ Jarom Smith
                                    ------------------------
                                    JAROM SMITH

                                    Address:

                                    /s/ Michael Stark
                                    ------------------------
                                    MICHAEL STARK

                                    Address: CROSSLINK CAPITAL
                                             TWO EMBARCADERO CENTER, SUITE 2200
                                             SAN FRANCISCO, CA  94111

                   SIGNATURE PAGE TO SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT

<PAGE>

                                   /s/ Barry S. Sternlicht
                                   ---------------------------------------------
                                   BARRY S. STERNLICHT

                                   Address:

                                   BARRY S. STERNLICHT FAMILY SPRAY TRUST I

                                   By: /s/ Barry S. Sternlicht
                                       -----------------------------------------
                                   Name: Barry S. Sternlicht
                                         ---------------------------------------
                                   Title:
                                          --------------------------------------
                                   Address:

                                   BARRY S. STERNLICHT FAMILY SPRAY TRUST II

                                   By: /s/ Barry S. Sternlicht
                                       -----------------------------------------
                                   Name: Barry S. Sternlicht
                                         ---------------------------------------
                                   Title:
                                          --------------------------------------
                                   Address:

                                   BARRY S. STERNLICHT FAMILY SPRAY TRUST III

                                   By: /s/ Barry S. Sternlicht
                                       -----------------------------------------
                                   Name: Barry S. Sternlicht
                                         ---------------------------------------
                                   Title:
                                          --------------------------------------
                                   Address:

                                   /s/ Warren Struhl
                                   ---------------------------------------------
                                   WARREN STRUHL

                                   Address: 21 Chestnut Court
                                            Englewood, NJ 07631

                                   /s/ Henry L. Wilder
                                   ---------------------------------------------
                                   HENRY L. WILDER

                                   Address:

                   SIGNATURE PAGE TO SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT
<PAGE>
                                        William Oberndorf, Trustee of the Wilder
                                                 Family Fund dated April 5, 1999

                                        By: William Oberndorf
                                           ---------------------------------
                                        Name: William Oberndorf
                                             -------------------------------
                                        Title: Trustee, Wilder Family Fund
                                              ------------------------------
                                        Address: 591 Redwood Hwy. #3215
                                                 Mill Valley, Ca. 94941

                   SIGNATURE PAGE TO SERIES F PREFERRED STOCK
                               PURCHASE AGREEMENT
<PAGE>

                                    EXHIBITS

Exhibit A -    Schedule of Series F Preferred Stock Purchasers

Exhibit B -    Form of Seventh Amended and Restated Certificate of Incorporation

Exhibit C -    Form of Amended and Restated Investors' Rights Agreement

Exhibit D -    Form of Amended and Restated Right of First Refusal and Co-sale
               Agreement

Exhibit E -    Form of Amended and Restated Voting Agreement

Exhibit F -    Form of Legal Opinion of Venture Law Group

Exhibit G -    Definition of "accredited investors"

                                   EXHIBIT A

                SCHEDULE OF SERIES F PREFERRED STOCK PURCHASERS

<Table>
<Caption>

                                         NO. OF SHARES          AGGREGATE
         NAME OF PURCHASER              TO BE PURCHASED      PURCHASE PRICE
-----------------------------------  --------------------  -------------------
<S>                                       <C>                 <C>

Moussenvelope, L.L.C.                      8,619,609          $5,500,000.11
Weston Presidio Capital III, L.P.          1,194,811            $762,385.00
WPC Entrepreneur Fund, L.P.                   58,950             $37,614.82
Sequoia Capital Entrepreneurs Fund           186,292            $118,869.20
Sequoia Capital Franchise Fund             1,029,325            $656,791.70
Sequoia Capital Franchise Partners           140,362             $89,562.18
Sequoia Capital IX                         1,210,251            $772,236.96
Sequoia Capital IX Principals Fund           223,389            $142,540.05
Atrium Venture Partners, L.P.                783,600            $499,999.49
Camelot Ventures LLC                         250,000            $159,520.00
Sippl Macdonald Ventures II, L.P.            156,720             $99,999.90
Sippl Macdonald Ventures III, L.P.           470,160            $299,999.69
Peter Baltaxe                                 31,344             $19,999.98
Douglas Bertozzi                               2,000              $1,276.16
Anthony P. Brenner                            20,000             $12,761.60
Clipperbay & Co., Nominee for              1,018,681            $649,999.97
  SMALLCAP World Fund, Inc.
Patrick Connolly                              52,173             $33,290.55
GCC RedEnvelope                            3,134,403          $1,999,999.87
Jamie Cheng                                  119,555             $76,285.65
Dougery Ventures                              82,803             $52,834.94

</Table>
<PAGE>
<Table>
<Caption>

                                              NO. OF SHARES        AGGREGATE
NAME OF PURCHASER                            TO BE PURCHASED     PURCHASE PRICE
-----------------                            ---------------     --------------
<S>                                          <C>                 <C>
John R. Dougery and Marilyn R. Dougery,            163,877             $104,566.64
Trustees for the Dougery Revocable Trust

John R. Dougery, Trustee for the John R.            22,604             $ 14,423.16
Dougery Jr. Trust

John R. Dougery, Trustee for the Kathryn            22,604             $ 14,423.16
Ann Dougery Trust

John R. Dougery, Trustee for the Shelley            22,604             $ 14,423.16
Dougery Trust

Marilyn R. Dougery, Trustee for the                 11,302             $  7,211.58
Marilyn R. Dougery Separate Property
Trust

Marilyn R. Dougery, Trustee of the                  11,302             $  7,211.58
Rolapp Trust

Craig Foley                                         19,736             $ 12,593.15

Seymour F. Kaufman                                   7,108             $  4,535.47

Michael P. Lazarus                                   9,403             $  5,999.87

The Adam and Rebecca Markman Trust,                 39,180             $ 24,999.97
Adam and Rebecca Markman at TTEE
U/A/T dated 5/12/99

David Markman                                       58,770             $ 37,499.96

Michael L. Meyer Living Trust                      313,441             $200,000.43

William D. Michelini                                78,361             $ 50,000.59

W. Dexter Paine, III and Susan L. Paine,            56,747             $ 36,209.13
Trustees of Paine Family Trust, UDT
dated 10/13/94, as amended

Phillips-Smith Specialty Retail Group III,         274,260             $174,999.82
L.P.

Paul Sagan                                          39,180             $ 24,999.97

SeniorTrak, Inc.                                    49,195             $ 31,390.35

Jarom Smith                                          8,000             $  5,104.64

Michael Stark                                        8,078             $  5,154.41

Barry S. Sternlicht                                 33,754             $ 21,537.75

Barry S. Sternlicht Family Spray Trust I             3,553             $  2,267.10

Barry S. Sternlicht Family Spray Trust II            3,553             $  2,267.10

Barry S. Sternlicht Family Spray Trust III           3,553             $  2,267.10

Warren Struhl                                       24,254             $ 15,475.99

Henry L. Wilder                                  1,200,000             $765,696.00

William Oberndorf, Trustee of the Wilder           100,000             $ 63,808.00
Family Fund dated April 5, 1999

TOTALS                                          21,368,847          $13,635,033.89

</Table>

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