
<PAGE>
 
                                                                    EXHIBIT 1.01

                                   eBay Inc.
                                 Common Stock
                                        

                            Underwriting Agreement
                            ----------------------


                                                                 March [ ], 1999


Goldman, Sachs & Co.
Morgan Stanley & Co. Incorporated
BancBoston Robertson Stephens Inc.
BT Alex. Brown Incorporated
Donaldson, Lufkin & Jenrette Securities Corporation
As representatives of the several Underwriters
 named in Schedule I hereto,
c/o Goldman, Sachs & Co.
85 Broad Street,
New York, New York  10004

Ladies and Gentlemen:

     eBay Inc., a Delaware corporation (the "Company"), proposes, subject to the
terms and conditions stated herein, to issue and sell to the Underwriters named
in Schedule I hereto (the "Underwriters") an aggregate of 4,250,000 shares of
Common Stock, par value $.001 ("Stock"), of the Company, and the stockholders of
the Company named in Schedule II hereto (the "Selling Stockholders") propose,
subject to the terms and conditions stated herein, to sell to the Underwriters
2,250,000 shares and, at the election of the Underwriter, up to 975,000
additional shares of Stock.  The aggregate of the 6,500,000 shares to be sold by
the Company and the Selling Stockholder is herein called the "Firm Shares" and
the 975,000 additional shares to be sold by the Selling Stockholders are herein
called the "Optional Shares".  The Firm Shares and the Optional Shares that the
Underwriters elect to purchase pursuant to Section 2 hereof are herein
collectively called the "Shares".

     1.  (a)  The Company and each of Pierre M. Omidyar, Jeffrey S. Skoll,
Robert C. Kagle, Margaret C. Whitman, Steven P. Westley, Gary F. Bengier,
Michael K Wilson, Scott D. Cook, Howard D. Schultz, and Michael R. Jacobson (the
"Primary Selling Stockholders") represents and warrants to, and agree with, each
of the Underwriters that:

              (i) A registration statement on Form S-1 (File No. 333-75009) 
     (the "Initial Registration Statement") in respect of the Shares has been 
     filed with the Securities and Exchange Commission (the "Commission"); the
     Initial Registration Statement and any post-effective amendment thereto, 
     each in the form heretofore delivered to you, and, excluding exhibits 
     thereto, to you for each of the other Underwriters, have been declared 
     effective by the Commission in such form; other than a registration 
     statement, if any, increasing the size of the offering (a "Rule 462(b) 
     Registration Statement"), filed pursuant to Rule 462(b) under the 
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     Securities Act of 1933, as amended (the "Act"), which became effective 
     upon filing, no other document with respect to the Initial Registration 
     Statement has heretofore been filed with the Commission; and no stop 
     order suspending the effectiveness of the Initial Registration Statement,
     any post-effective amendment thereto or the Rule 462(b) Registration 
     Statement, if any, has been issued and no proceeding for that purpose has
     been initiated or threatened by the Commission (any preliminary prospectus
     included in the Initial Registration Statement or filed with the 
     Commission pursuant to Rule 424(a) of the rules and regulations of the 
     Commission under the Act is hereinafter called  a "Preliminary 
     Prospectus";  the various parts of the Initial Registration Statement and
     the Rule 462(b) Registration Statement, if any, including all exhibits 
     thereto and including the information contained in the form of final 
     prospectus filed with the Commission pursuant to Rule 424(b) under the Act
     in accordance with Section 5(a) hereof and deemed by virtue of Rule 430A 
     under the Act to be part of the Initial Registration Statement at the time 
     it was declared effective or such part of the Rule 462(b) Registration 
     Statement, if any, became or hereafter becomes effective, each as amended
     at the time such part of the Initial Registration Statement became 
     effective, are hereinafter collectively called the "Registration 
     Statement"; and such final prospectus, in the form first filed pursuant to
     Rule 424(b) under the Act, is hereinafter called the  "Prospectus";

              (ii)  No order preventing or suspending the use of any Preliminary
     Prospectus has been issued by the Commission, and each Preliminary
     Prospectus, at the time of filing thereof, conformed in all material
     respects to the requirements of the Act and the rules and regulations of
     the Commission thereunder, and did not contain an untrue statement of a
     material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein, in the light of the
     circumstances under which they were made, not misleading; provided,
     however, that this representation and warranty shall not apply to any
     statements or omissions made in reliance upon and in conformity with
     information furnished in writing to the Company by an Underwriter through
     Goldman, Sachs & Co. expressly for use therein or by a Selling Stockholder
     expressly for use in the preparation of the answers therein to Item 7 of
     Form S-1;

              (iii) The Registration Statement conforms, and the Prospectus 
     and any further amendments or supplements to the Registration Statement or
     the Prospectus will conform, in all material respects to the requirements
     of the Act and the rules and regulations of the Commission thereunder and
     do not and will not, as of the applicable effective date as to the
     Registration Statement and any amendment thereto and as of the applicable
     filing date as to the Prospectus and any amendment or supplement thereto,
     contain an untrue statement of a material fact or omit to state a material
     fact required to be stated therein or necessary to make the statements
     therein not misleading; provided, however, that this representation and
     warranty shall not apply to any statements or omissions made in reliance
     upon and in conformity with information furnished in writing to the Company
     by an Underwriter through Goldman, Sachs & Co. expressly for use therein or
     by a Selling Stockholder expressly for use in the preparation of the
     answers therein to Items 7 of Form S-1;

              (iv)  The Company has not sustained since the date of the latest 
     audited financial statements included in the Prospectus any material loss
     or interference with its business from fire, explosion, flood or other
     calamity, whether or not covered by insurance, or from any labor dispute or
     court or governmental action, order or decree, otherwise than as set forth
     or contemplated in the Prospectus; and, since the respective dates as of
     which information is given in the Registration Statement and the
     Prospectus, there has not been any change in the capital stock (other than
     in connection with the exercise of outstanding stock options described in
     the Prospectus under the caption "Capitalization") or long-term debt of
     the Company or any material adverse change, or any development involving a
     prospective material adverse change, in or affecting the general affairs,
     management, financial position, 
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     stockholders' equity or results of operations of the Company, otherwise 
     than as set forth or contemplated in the Prospectus;

              (v)    The Company owns no real property and has good and
     marketable title to all personal property owned by it, in each case free
     and clear of all liens, encumbrances and defects except such as are
     described in the Prospectus or such as do not materially affect the value
     of such property and do not interfere with the use made and proposed to be
     made of such property by the Company; and any real property and buildings
     held under lease by the Company are held by it under valid, subsisting and
     enforceable leases with such exceptions as are not material and do not
     interfere with the use made and proposed to be made of such property and
     buildings by the Company;

              (vi)   The Company has been duly incorporated and is validly 
     existing as a corporation in good standing under the laws of the Delaware,
     with power and authority (corporate and other) to own its properties and 
     conduct its business as described in the Prospectus, and has been duly 
     qualified as a foreign corporation for the transaction of business and is
     in good standing under the laws of each other jurisdiction in which it 
     owns or leases properties or conducts any business so as to require such 
     qualification, or is subject to no material liability or disability by 
     reason of the failure to be so qualified in any such jurisdiction; the 
     Company has no material subsidiaries;

              (vii)  The Company will have an authorized capitalization as of 
     the First Time of Delivery (as defined in Section 4 hereof) as set forth 
     in the Prospectus for "as adjusted" under the caption "Capitalization", 
     and all of the issued shares of capital stock of the Company have been 
     duly and validly authorized and issued, are fully paid and non-assessable
     and conform to the description of the Stock contained in the Prospectus;

              (viii) The unissued Shares to be issued and sold by the Company 
     to the Underwriters hereunder have been duly and validly authorized and, 
     when issued and delivered against payment therefor as provided herein, 
     will be duly and validly issued and fully paid and non-assessable and will
     conform to the description of the Stock contained in the Prospectus;

              (ix)   The issue and sale of the Shares to be sold by the Company 
     and the compliance by the Company with all of the provisions of this
     Agreement and the consummation of the transactions herein contemplated will
     not conflict with or result in a breach or violation of any of the terms or
     provisions of, or constitute a default under, any indenture, mortgage, deed
     of trust, loan agreement or other agreement or instrument to which the
     Company is a party or by which the Company is bound or to which any of the
     property or assets of the Company is subject, nor will such action result
     in any violation of the provisions of the Certificate of Incorporation or
     Bylaws of the Company or any statute or any order, rule or regulation of
     any court or governmental agency or body having jurisdiction over the
     Company or any of its properties; and no consent, approval, authorization,
     order, registration or qualification of or with any such court or
     governmental agency or body is required for the issue and sale of the
     Shares or the consummation by the Company of the transactions contemplated
     by this Agreement, except the registration under the Act of the Shares and
     such consents, approvals, authorizations, registrations or qualifications
     as may be required under state securities or blue sky laws or the bylaws,
     rules and regulations of the National Association Securities Dealers, Inc.
     (the "NASD") in connection with the purchase and distribution of the Shares
     by the Underwriters;

              (x)    The Company is not in violation of its Certificate of
     Incorporation or Bylaws or in default in the performance or observance of
     any material obligation, agreement, 
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     covenant or condition contained in any material indenture, mortgage, deed
     of trust, loan agreement, lease or other agreement or instrument to which
     it is a party or by which it or any of its properties may be bound;

              (xi)    The statements set forth in the Prospectus under the
     caption "Description of Capital Stock", insofar as they purport to
     constitute a summary of the terms of the Stock, are accurate, complete and
     fair;

              (xii)   Other than as set forth in the Prospectus, there are no
     legal or governmental proceedings pending to which the Company is a party
     or of which any property of the Company is the subject which, if determined
     adversely to the Company, would individually or in the aggregate have a
     material adverse effect on the current or future consolidated financial
     position, stockholders' equity or results of operations of the Company;
     and, to the best of the Company's knowledge, no such proceedings are
     threatened or contemplated by governmental authorities or threatened by
     others;

              (xiii)  The Company is not and, after giving effect to the
     offering and sale of the Shares, will not be an "investment company", as
     such term is defined in the Investment Company Act of 1940, as amended (the
     "Investment Company Act");

              (xiv)   PricewaterhouseCoopers LLP, who have certified certain
     financial statements of the Company, are independent public accountants as
     required by the Act and the rules and regulations of the Commission
     thereunder;

              (xv)    The Company owns or possesses, or can acquire on
     reasonable terms, all licenses, inventions, copyrights, know-how (including
     trade secrets and other unpatented and/or unpatentable proprietary or
     confidential information, systems or procedures), trademarks, service marks
     and trade names, patents and patent rights necessary to carry on its
     business as described in the Prospectus, and, except as set forth in the
     Prospectus, the Company has not received any correspondence relating to any
     of the foregoing or notice of infringement of or conflict with asserted
     rights of others with respect to any of the foregoing which the Company
     believes would, singly or in the aggregate, have a material adverse effect
     on the Company;

              (xvi)   No material labor dispute with the employees of the
     Company exists, or, to the knowledge of the Company, is imminent;

              (xvii)  The Company is insured by insurers of recognized financial
     responsibility against such losses and risks and in such amounts as are
     prudent and customary in the business in which it is engaged; the Company
     has not been refused any insurance coverage sought or applied for; and the
     Company has no reason to believe that it will not be able to renew its
     existing insurance coverage as and when such coverage expires or to obtain
     similar coverage from similar insurers as may be necessary to continue its
     business at a cost that would not have a material adverse effect on the
     Company;

              (xviii) The Company maintains a system of internal accounting
     controls sufficient to provide reasonable assurance that (i) transactions
     are executed in accordance with management's general or specific
     authorizations; (ii) transactions are recorded as necessary to permit
     preparation of financial statements in conformity with generally accepted
     accounting principles and to maintain asset accountability; (iii) access to
     assets is permitted only in accordance with management's general or
     specific authorization; and (iv) the recorded
<PAGE>
 
     accountability for assets is compared with the existing assets at
     reasonable intervals and appropriate action is taken with respect to any
     differences;

              (xix) All United States federal income tax returns of the Company
     required by law to be filed have been filed and all taxes shown by such
     returns or otherwise assessed, which are due and payable, have been paid,
     except assessments against which appeals have been or will be promptly
     taken and as to which adequate reserves have been provided. The Company has
     filed all other tax returns that are required to have been filed by it
     pursuant to applicable foreign, state, local or other law and has paid all
     taxes due pursuant to such returns or pursuant to any assessment received
     by the Company, except for such taxes, if any, as are being contested in
     good faith and as to which adequate reserves have been provided. The
     charges, accruals and reserves on the books of the Company in respect of
     any income and corporation tax liability for any years not finally
     determined are adequate to meet any assessments or re-assessments for
     additional income tax for any years not finally determined; and

              (xx) Any certificate signed by any officer of the Company
     delivered to the Underwriters or to counsel for the Underwriters shall be
     deemed a representation and warranty by the Company to the Underwriters as
     to the matters covered thereby.

         (b)  Each of the Selling Stockholders represents and warrants to, and
agrees with, each of the Underwriters and the Company that:

              (i) All consents, approvals, authorizations and orders necessary
     for the execution and delivery by such Selling Stockholder of this
     Agreement, the Power of Attorney and the Custody Agreement hereinafter
     referred to, and for the sale and delivery of the Shares to be sold by such
     Selling Stockholder hereunder, have been obtained; and such Selling
     Stockholder has full right, power and authority to enter into this
     Agreement, the Power of Attorney and the Custody Agreement and to sell,
     assign, transfer and deliver the Shares to be sold by such Selling
     Stockholder hereunder;

              (ii) The sale of the Shares to be sold by such Selling Stockholder
     hereunder and the compliance by such Selling Stockholder with all of the
     provisions of this Agreement, the Power of Attorney and the Custody
     Agreement and the consummation of the transactions herein and therein
     contemplated will not conflict with or result in a breach or violation of
     any of the terms or provisions of, or constitute a default under, any,
     indenture, mortgage, deed of trust, loan agreement or other agreement or
     instrument to which such Selling Stockholder is a party or by which such
     Selling Stockholder is bound or to which any of the property or assets of
     such Selling Stockholder is subject, nor will such action result in any
     violation of the Certificate of Incorporation or Bylaws of such Selling
     Stockholder if such Selling Stockholder is a corporation, the Partnership
     Agreement of such Selling Stockholder if such Selling Stockholder is a
     partnership or any statute or any order, rule or regulation of any court or
     governmental agency or body having jurisdiction over such Selling
     Stockholder or the property of such Selling Stockholder;

              (iii) Such Selling Stockholder has, and immediately prior to each
     Time of Delivery (as defined in Section 4 hereof) for the Shares such
     Selling Stockholder will have, good and valid title to the Shares to be
     sold by such Selling Stockholder hereunder, free and clear of all liens,
     encumbrances, equities or claims; and, upon delivery of such Shares and
     payment therefor pursuant hereto, good and valid title to such Shares, free
     and clear of all liens, encumbrances, equities or claims, will pass to the
     several Underwriters;
<PAGE>
 
              (iv) During the period beginning from the date hereof and
     continuing to and including the date 90 days after the date of the
     Prospectus, such Selling Stockholder will not, without the prior written
     consent of either Goldman, Sachs & Co. acting alone or the Underwriters
     acting together, directly or indirectly, (i) offer to sell, sell, contract
     to sell, pledge or otherwise dispose of any shares of Stock or any
     securities convertible into or exchangeable for Stock, or (ii) establish a
     "put equivalent position" with respect to the Stock within the meaning of
     Rule 16a-1(h) under the Securities Exchange Act of 1934, as amended, or
     (iii) publicly announce an intention to take any of the actions set forth
     in (i) or (ii) above.

         Notwithstanding the foregoing, if such Selling Stockholder is an
     individual, he or she may transfer any shares of Stock either during his or
     her lifetime or on death by gift, will or intestacy, to his or her
     immediate family or to a trust the beneficiaries of which are exclusively
     the undersigned and/or a member or members of his or her immediate family
     or to a charitable organization; provided, however, that in any such case
     it shall be a condition to the transfer that the transferee execute an
     agreement stating that (i) the transferee is receiving and holding the
     shares of Stock transferred subject to the provisions of this Section
     1(b)(iv), and (ii) there shall be no further transfer of such shares of
     Stock except in accordance with this Section 1(b)(iv).  For purposes of
     this Agreement, "immediate family" shall mean any relationship by blood,
     marriage or adoption not more remote than first cousin and "charitable
     organization" shall mean an organization described in Section 501(c)(3) of
     the Internal Revenue Code of 1986, as amended.

         Notwithstanding the foregoing, if such Selling Stockholder is a
     partnership, the partnership may transfer any shares of Stock to a partner
     of such partnership or a retired partner of such partnership who retires
     after the date hereof, or to the estate of any such partner or retired
     partner, and any partner who is an individual may transfer such share of
     Stock by gift, will or intestate succession to his or her immediate family
     or a charitable organization; and if such Selling Stockholder is a
     corporation, the corporation may transfer such shares of Stock to any
     shareholder or subsidiary of such corporation and any shareholder who is an
     individual may transfer shares of Stock by gift, will or intestate
     succession to his or her immediate family or charitable organization;
     provided, however, that in any such case, it shall be a condition to the
     transfer that the transfer be for no consideration and that the transferee
     execute an agreement stating that (i) the transferee is receiving and
     holding the shares of Stock transferred subject to the provisions of this
     Section 1(b)(iv), and (ii) there shall be no further transfer of such
     shares of Stock except in accordance with this Section 1(b)(iv).

         Notwithstanding the foregoing, such Selling Stockholder may transfer
     any shares or Stock acquired in the Company's public offering hereunder or
     in open market transactions.

              (v) Such Selling Stockholder has not taken and will not take,
     directly or indirectly, any action which is designed to or which has
     constituted or which might reasonably be expected to cause or result in
     stabilization or manipulation of the price of any security of the Company
     to facilitate the sale or resale of the Shares;

              (vi) To the extent that any statements or omissions made in the
     Registration Statement, any Preliminary Prospectus, the Prospectus or any
     amendment or supplement thereto are made in reliance upon and in conformity
     with written information furnished to the Company by such Selling
     Stockholder expressly for use therein, such Preliminary Prospectus and the
     Registration Statement did, and the Prospectus and any further amendments
     or supplements to the Registration Statement and the Prospectus, when they
     become effective or are filed with the Commission, as the case may be, will
     conform in all material respects to the requirements of the Act and the
     rules and regulations of the Commission thereunder and will 
<PAGE>
 
     not contain any untrue statement of a material fact or omit to state any
     material fact required to be stated therein or necessary to make the
     statements therein not misleading;

              (vii)  In order to document the Underwriters' compliance with the
     reporting and withholding provisions of the Tax Equity and Fiscal
     Responsibility Act of 1982 with respect to the transactions herein
     contemplated, such Selling Stockholder will deliver to you prior to or at
     the First Time of Delivery (as defined in Section 4 hereof) a properly
     completed and executed United States Treasury Department Form W-9 (or other
     applicable form or statement specified by Treasury Department regulations
     in lieu thereof);

              (viii) Certificates in negotiable form or securities convertible
     into Stock representing all of the Shares to be sold by such Selling
     Stockholder hereunder have been placed in custody under a Custody
     Agreement, in the form heretofore furnished to you (the "Custody
     Agreement"), duly executed and delivered by such Selling Stockholder to
     ChaseMellon Shareholder Services, LLC, as custodian (the "Custodian"), and
     such Selling Stockholder has duly executed and delivered a Power of
     Attorney, in the form heretofore furnished to you (the "Power of
     Attorney"), appointing Michael R. Jacobson and Gary Bengier and each of
     them, as such Selling Stockholder's attorneys-in-fact (the "Attorneys-in-
     Fact") with authority to execute and deliver this Agreement on behalf of
     such Selling Stockholder, to determine (together with the pricing committee
     of the Company's Board of Directors) the purchase price to be paid by the
     Underwriters to the Selling Stockholders as provided in Section 2 hereof,
     to authorize the delivery of the Shares to be sold by such Selling
     Stockholder hereunder and otherwise to act on behalf of such Selling
     Stockholder in connection with the transactions contemplated by this
     Agreement, and the Custody Agreement; and

              (ix)   The Shares represented by the certificates held in custody
     for such Selling Stockholder under the Custody Agreement are subject to the
     interests of the Underwriters hereunder; the arrangements made by such
     Selling Stockholder for such custody, and the appointment by such Selling
     Stockholder of the Attorneys-in-Fact by the Power of Attorney, are to that
     extent irrevocable; the obligations of the Selling Stockholders hereunder
     shall not be terminated by operation of law, whether by the death or
     incapacity of any individual Selling Stockholder or, in the case of an
     estate or trust, by the death or incapacity of any executor or trustee or
     the termination of such estate or trust, or in the case of a partnership or
     corporation, by the dissolution of such partnership or corporation, or by
     the occurrence of any other event; if any individual Selling Stockholder or
     any such executor or trustee should die or become incapacitated, or if any
     such estate or trust should be terminated, or if any such partnership or
     corporation should be dissolved, or if any other such event should occur,
     before the delivery of the Shares hereunder, certificates representing the
     Shares shall be delivered by or on behalf of the Selling Stockholders in
     accordance with the terms and conditions of this Agreement and of the
     Custody Agreements; and actions taken by the Attorneys-in-Fact pursuant to
     the Powers of Attorney shall be as valid as if such death, incapacity,
     termination, dissolution or other event had not occurred, regardless of
     whether or not the Custodian, the Attorneys-in-Fact, or any of them, shall
     have received notice of such death, incapacity, termination, dissolution or
     other event.

     2. Subject to the terms and conditions herein set forth, (a) the Company
and each of the Selling Stockholders agree, severally and not jointly, to sell
to each of the Underwriters, and each of the Underwriters agrees, severally and
not jointly, to purchase from the Company and each of the Selling Stockholders,
at a purchase price per share of $[ ], the number of Firm Shares (to be adjusted
by you so as to eliminate fractional shares) determined by multiplying the
aggregate number of Shares to be sold by the Company and each of the Selling
Stockholders as set forth opposite their respective names in Schedule II hereto
by a fraction, the numerator of which is the aggregate number of Firm Shares to
be purchased by such Underwriter as set forth opposite the name of such
Underwriter in
<PAGE>
 
Schedule I hereto and the denominator of which is the aggregate number of Firm
Shares to be purchased by all of the Underwriters from the Company and all of
the Selling Stockholders hereunder and (b) in the event and to the extent that
the Underwriters shall exercise the election to purchase Optional Shares as
provided below, each of the Selling Stockholders agrees to sell to each of the
Underwriters, and each of the Underwriters agrees, severally and not jointly, to
purchase from each of the Selling Stockholders, at the purchase price per share
set forth in clause (a) of this Section 2, that portion of the number of
Optional Shares as to which such election shall have been exercised (to be
adjusted by you so as to eliminate fractional shares) determined by multiplying
such number of Optional Shares by a fraction, the numerator of which is the
maximum number of Optional Shares which such Underwriter is entitled to purchase
as set forth opposite the name of such Underwriter in Schedule I hereto and the
denominator of which is the maximum number of Optional Shares that all of the
Underwriters are entitled to purchase hereunder.

     The Selling Stockholders, as and to the extent indicated in Schedule II
hereto, hereby grant, severally and not jointly, to the Underwriters the right
to purchase at their election up to 975,000 Optional Shares, at the purchase
price per share set forth in the paragraph above, for the sole purpose of
covering over-allotments in the sale of the Firm Shares.  Any such election to
purchase Optional Shares shall be made in proportion to the maximum number of
Optional Shares to be sold by each Selling Stockholder as set forth in Schedule
II hereto.  Any such election to purchase Optional Shares may be exercised only
by written notice from you to the Attorneys-in-Fact, given within a period of 30
calendar days after the date of this Agreement and setting forth the aggregate
number of Optional Shares to be purchased and the date on which such Optional
Shares are to be delivered, as determined by you but in no event earlier than
the First Time of Delivery (as defined in Section 4 hereof) or, unless you and
the Attorneys-in-Fact otherwise agree in writing, earlier than two or later than
ten business days after the date of such notice.

     3.  Upon the authorization by you of the release of the Firm Shares, the
several Underwriters propose to offer the Firm Shares for sale upon the terms
and conditions set forth in the Prospectus.

     4.  (a)  The Shares to be purchased by each Underwriter hereunder, in
definitive form, and in such authorized denominations and registered in such
names as Goldman, Sachs & Co. may request upon at least 48 hours' prior notice
to the Company and the Attorneys-in-Fact, shall be delivered by or on behalf of
the Company and the Selling Stockholders through the facilities of the
Depository Trust Company ("DTC"), to Goldman, Sachs & Co., for the account of
such Underwriter, against payment by or on behalf of such Underwriter of the
purchase price therefor by wire transfer of federal (same-day) funds to the
account specified by the Company and each of the Selling Stockholders, as their
interests may appear, to Goldman Sachs & Co. at least 48 hours in advance. The
Company will cause the certificates representing the Shares to be made available
for checking and packaging at least 24 hours prior to the Time of Delivery (as
defined below) with respect thereto at the office of DTC or its designated
custodian (the "Designated Office"). The time and date of such delivery and
payment shall be, with respect to the Firm Shares, 9:30 a.m., New York time, on
April [ ], 1999 or such other time and date as Goldman, Sachs & Co., the Company
and the Attorneys-in-Fact may agree upon in writing, and, with respect to the
Optional Shares, 9:30 a.m., New York time, on the date specified by Goldman,
Sachs & Co. in the written notice given by Goldman, Sachs & Co. of the
Underwriters' election to purchase such Optional Shares, or such other time and
date as Goldman, Sachs & Co. and the Attorneys-in-Fact may agree upon in
writing. Such time and date for delivery of the Firm Shares is herein called the
"First Time of Delivery", such time and date for delivery of the Optional
Shares, if not the First Time of Delivery, is herein called the "Second Time of
Delivery", and each such time and date for delivery is herein called a "Time of
Delivery".
<PAGE>
 
              (b) The documents to be delivered at each Time of Delivery by or
on behalf of the parties hereto pursuant to Section 7 hereof, including the
cross receipt for the Shares and any additional documents requested by the
Underwriters pursuant to Section 7(k) hereof, will be delivered at the offices
of [Shearman & Sterling, 1550 El Camino Real, Menlo Park], California (the
"Closing Location"), and the Shares will be delivered at the Designated Office,
all at such Time of Delivery. A meeting will be held at the Closing Location at
7:00 p.m., New York City time, on the New York Business Day next preceding such
Time of Delivery, at which meeting the final drafts of the documents to be
delivered pursuant to the preceding sentence will be available for review by the
parties hereto. For the purposes of this Section 4, "New York Business Day"
shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a
day on which banking institutions in New York are generally authorized or
obligated by law or executive order to close.

     5.  The Company agrees with each of the Underwriters:

         (a)  To prepare the Prospectus in a form approved by you and to file
such Prospectus pursuant to Rule 424(b) under the Act not later than the
Commission's close of business on the second business day following the
execution and delivery of this Agreement, or, if applicable, such earlier time
as may be required by Rule 430A(a)(3) under the Act; to make no further
amendment or any supplement to the Registration Statement or Prospectus prior to
the last Time of Delivery which shall be disapproved by you promptly after
reasonable notice thereof; to advise you, promptly after it receives notice
thereof, of the time when any amendment to the Registration Statement has been
filed or becomes effective or any supplement to the Prospectus or any amended
Prospectus has been filed and to furnish you with copies thereof; [to file
promptly all reports and any definitive proxy information or information
statements required to be filed by the Commission pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus
and for so long as the delivery of a prospectus is required in connection with
the offering or sale of the Shares;] to advise you, promptly after it receives
notice thereof, of the issuance by the Commission of any stop order or of any
order preventing or suspending the use of any Preliminary Prospectus or
Prospectus, of the suspension of the qualification of the Shares for offering or
sale in any jurisdiction, of the initiation or threatening of any proceeding for
any such purpose, or of any request by the Commission for the amending or
supplementing of the Registration Statement or Prospectus or for additional
information; and, in the event of the issuance of any stop order or of any order
preventing or suspending the use of any Preliminary Prospectus or Prospectus or
suspending any such qualification, promptly to use its best efforts to obtain
the withdrawal of such order;

         (b)  Promptly from time to time to take such action as you may
reasonably request to qualify the Shares for offering and sale under the
securities laws of such jurisdictions as you may reasonably request and to
comply with such laws so as to permit the continuance of sales and dealings
therein in such jurisdictions for as long as may be necessary to complete the
distribution of the Shares, provided that in connection therewith the Company
shall not be required to qualify as a foreign corporation or to file a general
consent to service of process in any jurisdiction;

         (c)  Prior to 12:00 P.M., New York City time, on the New York Business
Day next succeeding the date of this Agreement and from time to time, to furnish
the Underwriters with copies of the Prospectus in New York City in such
quantities as you may reasonably request, and, if the delivery of a prospectus
is required at any time prior to the expiration of nine months after the time of
issue of the Prospectus in connection with the offering or sale of the Shares
and if at such time any events shall have occurred as a result of which the
Prospectus as then amended or supplemented would include an untrue statement of
a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made when such Prospectus is delivered, not misleading, or, if for any other
reason it shall be necessary during such period to amend or supplement the
Prospectus, to notify you and upon your request to prepare and 
<PAGE>
 
furnish without charge to each Underwriter and to any dealer in securities as
many copies as you may from time to time reasonably request of an amended
Prospectus or a supplement to the Prospectus which will correct such statement
or omission or effect such compliance, and in case any Underwriter is required
to deliver a prospectus in connection with sales of any of the Shares at any
time nine months or more after the time of issue of the Prospectus, upon your
request but at the expense of such Underwriter, to prepare and deliver to such
Underwriter as many copies as you may request of an amended or supplemented
Prospectus complying with Section 10(a)(3) of the Act;

         (d)  To make generally available to its securityholders as soon as
practicable, but in any event not later than eighteen months after the effective
date of the Registration Statement (as defined in Rule 158(c) under the Act), an
earnings statement of the Company and its subsidiaries (which need not be
audited) complying with Section 11(a) of the Act and the rules and regulations
of the Commission thereunder (including, at the option of the Company, Rule
158);

         (e)  During the period beginning from the date hereof and continuing to
and including the date 90 days after the date of the Prospectus, not to offer,
sell, contract to sell or otherwise dispose of, except as provided hereunder,
any securities of the Company that are substantially similar to the Shares,
including but not limited to any securities that are convertible into or
exchangeable for, or that represent the right to receive, Stock or any such
substantially similar securities (other than (i) pursuant to employee stock
plans or agreements described in the Prospectus and adopted prior to, or upon
the conversion or exchange of convertible or exchangeable securities outstanding
as of, the date of this Agreement or (ii) any shares of Stock or securities
convertible into or exchangeable for Stock issued as consideration for or to
otherwise finance an acquisition of a business or substantially all the assets
of a business, provided, in each case that such shares of Stock or other
security (when taken together with all such other securities previously issued
pursuant to this exception) do not, or would not upon conversion or exchange,
represent more than 20% of the Company's then-outstanding shares of Stock, that
such securities are issued in connection with a transaction not requiring
registration under the Act and that such shares are subject to the same
restrictions on sale provided by this Section 5(e)).

         (f)  To furnish to its stockholders as soon as practicable after the 
end of each fiscal year an annual report (including a balance sheet and
statements of income, stockholders' equity and cash flows of the Company and its
consolidated subsidiaries certified by independent public accountants) and to
make available to its stockholders as soon as practicable after the end of each
of the first three quarters of each fiscal year (beginning with the fiscal
quarter ending after the effective date of the Registration Statement),
consolidated summary financial information of the Company and its subsidiaries
for such quarter in reasonable detail;

         (g)  During a period of five years from the effective date of the
Registration Statement, to furnish to you copies of all reports or other
communications (financial or other) furnished to stockholders generally, and to
deliver to you (i) as soon as they are available, copies of any reports and
financial statements furnished to or filed with the Commission or any national
securities exchange on which any class of securities of the Company is listed;
and (ii) such additional information concerning the business and financial
condition of the Company as you may from time to time reasonably request (such
financial statements to be on a consolidated basis to the extent the accounts of
the Company and its subsidiaries are consolidated in reports furnished to its
stockholders generally or to the Commission);

         (h)  To use the net proceeds received by it from the sale of the Shares
pursuant to this Agreement in the manner specified in the Prospectus under the
caption "Use of Proceeds";

         (i)  To use its best efforts to list for quotation the Shares on the
National Association of Securities Dealers Automated Quotations National Market
("NASDAQ");
<PAGE>
 
         (j)  To file with the Commission such information on Form 10-Q or Form
10-K as may be required by Rule 463 under the Act; and

         (k)  If the Company elects to rely upon Rule 462(b), to file a Rule
462(b) Registration Statement with the Commission in compliance with Rule 462(b)
by 10:00 P.M., Washington, D.C. time, on the date of this Agreement, and at the
time of filing either to pay to the Commission the filing fee for the Rule
462(b) Registration Statement or to give irrevocable instructions for the
payment of such fee pursuant to Rule 111(b) under the Act.

     6.  The Company covenants and agrees with the several Underwriters that it
will pay or cause to be paid the following:  (i) the fees, disbursements and
expenses of the Company's counsel and accountants in connection with the
registration of the Shares under the Act and all other expenses in connection
with the preparation, printing and filing of the Registration Statement, any
Preliminary Prospectus and the Prospectus and amendments and supplements thereto
and the mailing and delivering of copies thereof to the Underwriters and
dealers; (ii) the cost of printing or producing any Agreement among
Underwriters, this Agreement, the Blue Sky Memorandum, closing documents
(including any compilations thereof) and any other documents in connection with
the offering, purchase, sale and delivery of the Shares; (iii) all expenses in
connection with the qualification of the Shares for offering and sale under
state securities laws as provided in Section 5(b) hereof, including the fees and
disbursements of counsel for the Underwriters in connection with such
qualification and in connection with the Blue Sky survey; (iv) all fees and
expenses in connection with listing the Shares on NASDAQ; (v) the filing fees
incident to, and the fees and disbursements of counsel for the Underwriters in
connection with, securing any required review by the National Association of
Securities Dealers, Inc. of the terms of the sale of the Shares; (vi) the cost
of preparing stock certificates; (vii) the cost and charges of any transfer
agent or registrar; (viii) all other costs and expenses incident to the
performance of its obligations hereunder which are not otherwise specifically
provided for in this Section. Each Selling Stockholder, severally and not
jointly, covenants and agrees with the several underwriters that such Selling
Stockholder will pay or cause  to be paid all costs and expenses incident to the
performance of such Selling Stockholder's obligations hereunder which are not
otherwise specifically provided for in this Section, including all expenses and
taxes incident to the sale and delivery of the Shares to be sold by such Selling
Stockholder to the Underwriters hereunder.  In connection with the preceding
sentence, Goldman, Sachs & Co. agrees to pay New York State stock transfer tax,
and the Selling Stockholders agree to reimburse Goldman, Sachs & Co. for
associated carrying costs if such tax payment is not rebated on the day of
payment and for any portion of such tax payment not rebated.  It is understood,
however, that the Company shall bear, and the Selling Stockholders shall not be
required to pay or to reimburse the Company for, the cost of any other matters
not directly relating to the sale and purchase of the Shares pursuant to this
Agreement, and that, except as provided in this Section, and Sections 8 and 11
hereof, the Underwriters will pay all of their own costs and expenses, including
the fees of their counsel, stock transfer taxes on resale of any of the Shares
by them, and any advertising expenses connected with any offers they may make.
The Underwriters also agree to pay all travel and related expenses in connection
with the "road show" for the initial public offering of the shares sold hereby.

     7.  The obligations of the Underwriters hereunder, as to the Shares to be
delivered at each Time of Delivery, shall be subject, in their discretion, to
the condition that all representations and warranties and other statements of
the Company and of the Selling Stockholders herein are, at and as of such Time
of Delivery, true and correct, the condition that the Company and the Selling
Stockholders shall have performed all of their respective obligations hereunder
theretofore to be performed, and the following additional conditions:

         (a)  The Prospectus shall have been filed with the Commission pursuant
to Rule 424(b) within the applicable time period prescribed for such filing by
the rules and regulations under the
<PAGE>
 
Act and in accordance with Section 5(a) hereof; if the Company has elected to
rely upon Rule 462(b), the Rule 462(b) Registration Statement shall have become
effective by 10:00 P.M., Washington, D.C. time, on the date of this Agreement;
no stop order suspending the effectiveness of the Registration Statement or any
part thereof shall have been issued and no proceeding for that purpose shall
have been initiated or threatened by the Commission; and all requests for
additional information on the part of the Commission shall have been complied
with to your reasonable satisfaction;

         (b)  Shearman & Sterling, counsel for the Underwriters, shall have
furnished to you such written opinion or opinions (a draft of each such opinion
is attached as Annex II(a) hereto), dated such Time of Delivery, with respect to
the matters covered in paragraphs (i), (ii), (vi), (x) and (xii) of subsection
(c) below as well as such other related matters as you may reasonably request,
and such counsel shall have received such papers and information as they may
reasonably request to enable them to pass upon such matters;

         (c)  Cooley Godward LLP, counsel for the Company, shall have furnished
to you their written opinion (a draft of such opinion is attached as Annex II(b)
hereto), dated such Time of Delivery, in form and substance reasonably
satisfactory to you, to the effect that:

              (i)   The Company has been duly incorporated and is validly
     existing as a corporation in good standing under the laws of the State of
     Delaware, with corporate power and corporate authority to own its
     properties and conduct its business as described in the Prospectus;

              (ii)  The Company has an authorized capitalization as set forth in
     the Prospectus for "actual " under the caption "Capitalization", and all of
     the issued and outstanding shares of capital stock of the Company
     (including the Shares being delivered at such Time of Delivery) described
     therein have been duly and validly authorized and issued and are fully paid
     and non-assessable; and the Shares conform in all material respects to the
     description of the Stock contained in the Prospectus;

              (iii) The Company either has been duly qualified within the United
     States as a foreign corporation for the transaction of business and is in
     good standing under the laws of each other jurisdiction within the United
     States in which it owns or leases properties or conducts any business so as
     to require such qualification, or is subject to no material liability or
     disability by reason of failure to be so qualified in any such jurisdiction
     (such counsel being entitled to rely in respect of the opinion in this
     clause upon opinions of local counsel and in respect of matters of fact
     upon certificates of officers of the Company, provided that such counsel
     shall state that they believe that both you and they are justified in
     relying upon such opinions and certificates);

              (iv)  To such counsel's knowledge and other than as set forth in
     the Prospectus, there are no legal (within the meaning of Item 103 of
     Regulation S-K under the Act) or governmental proceedings pending to which
     the Company is a party or of which any property of the Company is the
     subject which, if determined adversely to the Company, would individually
     or in the aggregate have a material adverse effect on the current or future
     consolidated financial position, stockholders' equity or results of
     operations of the Company; and, to such counsel's knowledge, no such
     proceedings are overtly threatened by governmental authorities or others;

              (v)   This Agreement has been duly authorized, executed and
     delivered by the Company;
<PAGE>
 
              (vi)   The issue and sale of the Shares being delivered at such
     Time of Delivery to be sold by the Company and the compliance by the
     Company with all of the provisions of this Agreement and the consummation
     of the transactions herein set forth will not conflict with or result in a
     breach or violation of any of the terms or provisions of, or constitute a
     default under, any indenture, mortgage, deed of trust, loan agreement or
     other agreement or instrument filed as an exhibit to the Registration
     Statement, which such counsel believes constitute the only such agreements
     required to be filed as exhibits to the Registration Statement, nor will
     such action result in any violation of the provisions of the Certificate of
     Incorporation or Bylaws of the Company or any material violation of any
     statute or any order, rule or regulation known to such counsel of any court
     or governmental agency or body having jurisdiction over the Company or any
     of its properties, except for the rules and regulations of the NASD and
     state securities and blue sky laws, as to which such counsel need express
     no opinion;

              (vii)  To such counsel's knowledge, no consent, approval,
     authorization, order, registration or qualification of or with any such
     court or governmental agency or body is required for the issue and sale of
     the Shares or the consummation by the Company of the transactions set forth
     in this Agreement, except the registration under the Act of the Shares, and
     such consents, approvals, authorizations, registrations or qualifications
     as may be required under state securities or blue sky laws or the bylaws,
     rules and regulations of the NASD (as to which such counsel need express no
     opinion) in connection with the purchase and distribution of the Shares by
     the Underwriters;

              (viii) The performance or observance of any obligation under this
     Agreement by the Company does not and will not result in a violation of the
     Company's Certificate of Incorporation or By-laws, or to such counsel's
     knowledge any material obligation, agreement, covenant or condition
     contained in any indenture, mortgage, deed of trust, loan agreement, or
     lease or agreement or other instrument filed as an exhibit to the
     Registration Statement, which such counsel believes constitute the only
     such agreements required to be so filed;

              (ix)   The statements set forth in the Prospectus under the
     caption "Description of Capital Stock", insofar as they purport to
     constitute a summary of the terms of the Stock summarize the information
     called for with respect to such matters to the extent required by the Act
     and the rules and regulations thereunder;

              (x)    The Company is not an "investment company", as such term is
     defined in the Investment Company Act; and

             (xi)    The Registration Statement and the Prospectus and any
     further amendments and supplements thereto made by the Company prior to
     such Time of Delivery (other than the financial statements, related
     schedules and other financial data therein, as to which such counsel need
     express no opinion) comply as to form in all material respects with the
     requirements of the Act and the rules and regulations thereunder; and such
     counsel does not know of any amendment to the Registration Statement
     required to be filed or of any contracts or other documents of a character
     required to be filed as an exhibit to the Registration Statement or
     required to be described in the Registration Statement or the Prospectus
     which are not filed or described as required.

         In addition, such counsel shall state the following: in connection with
the preparation of the Registration Statement and the Prospectus, it has
participated in conferences with officers and representatives of the Company and
with its certified public accountants, as well as with representatives of the
Underwriters and their counsel. At such conferences, the contents of the
<PAGE>
 
Registration Statement and the Prospectus and related matters were discussed.
Such counsel has not independently verified, and accordingly, except as
specified in subparagraphs [(ii)] and [(viii)], is not confirming and assumes no
responsibility for the accuracy or completeness of the statements contained in
the Registration Statement or the Prospectus.  On the basis of the foregoing,
nothing has come to such counsel's attention that has caused it to believe (i)
that the Registrations Statement (except as to the financial statements, related
schedules and other financial data therein, as to which such counsel need
express no belief) at the effective date contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, or (ii) that the
Prospectus (except as to the financial statements, related schedules and other
financial data therein, as to which such counsel need express no belief) as of
its date or at the Time of Delivery, contained or contains any untrue statement
of material fact or omitted or omits to state a material fact necessary, in
order to make the statements therein, in light of circumstances under which they
were made, not misleading.

         (d)  The respective counsel for each of the Selling Stockholders, as
indicated in Schedule II hereto, each shall have furnished to you their written
opinion with respect to each Selling Stockholders for whom they are acting as
counsel, dated such Time of Delivery, in form and substance satisfactory to you,
to the effect that:

              (i)   a Power of Attorney and a Custody Agreement have been duly
     executed and delivered by or on behalf of such Selling Stockholder and
     constitute valid and binding agreements of such Selling Stockholder in
     accordance with their terms;

              (ii)  This Agreement has been duly executed and delivered by or on
     behalf of such Selling Stockholder; and the sale of the Shares to be sold
     by such Selling Stockholder hereunder and the compliance by such Selling
     Stockholder with all of the provisions of this Agreement, the Power of
     Attorney and the Custody Agreement and the consummation of the transactions
     herein and therein contemplated will not, to such counsel's knowledge,
     materially conflict with or result in a material breach or material
     violation of any terms or provisions of, or constitute a default under, any
     material mortgage, deed of trust, loan agreement or other agreement or
     instrument known to such counsel to which such Selling Stockholder is a
     party or by which such Selling Stockholder is bound or to which any of the
     property or assets of such Selling Stockholder is subject, nor will such
     action result in any violation of the provisions of the Certificate of
     Incorporation or Bylaws of such Selling Stockholder if such Selling
     Stockholder is a corporation, the Partnership Agreement of such Selling
     Stockholder if such Selling Stockholder is a partnership or any order, rule
     or regulation known to such counsel of any court or governmental agency or
     body having jurisdiction over such Selling Stockholder or the property of
     such Selling Stockholder;

              (iii) To such counsel's knowledge, no consent, approval,
     authorization or order of any court or governmental agency or body is
     required for the consummation of the transactions contemplated by this
     Agreement in connection with the Shares to be sold by such Selling
     Stockholder hereunder, except such as have been obtained under the Act and
     such as may be required under state securities or blue sky laws or the
     bylaws, rules or regulations of the NASD in connection with the purchase
     and distribution of such Shares by the Underwriters;

              [(iv) Immediately prior to such Time of Delivery, such Selling
     Stockholder had, to the best of such counsel's knowledge, good and valid
     title to the Shares to be sold at such Time of Delivery by such Selling
     Stockholder under this Agreement, free and clear of all liens,
     encumbrances, equities or claims, and full right, power and authority to
     sell, assign, transfer and deliver the Shares to be sold by such Selling
     Stockholder hereunder; and
<PAGE>
 
              (v) Upon delivery of and payment for the Shares to be sold by such
     Selling Stockholder as provided in this Agreement, and upon registration of
     such Shares in the stock records of the Company in the names of the
     Underwriters or their nominees, the Underwriters will be the owners of such
     Shares, free and clear of any adverse claim, provided that (a) neither the
     Underwriters nor their nominees grant any right, title or interest in or to
     such Shares to any person or entity prior to sale of such Shares to the
     public, (b) the Underwriters are purchasing such Shares in good faith and
     (c) the Underwriters, together with their nominees (if any), hold such
     Shares without notice of any adverse claim.

         In rendering the opinion in paragraph (iv), such counsel may rely upon
a certificate of such Selling Stockholder in respect of matters of fact as to
ownership of, and liens, encumbrances, equities or claims on, the Shares sold by
such Selling Stockholder, provided that such counsel shall state that they
believe that both you and they are justified in relying upon such certificate
provided that such counsel shall provide you with copies of any such
certificates;]

         (e) On the date of the Prospectus at a time prior to the execution of
this Agreement, at 9:30 a.m., New York City time, on the effective date of any
post-effective amendment to the Registration Statement filed subsequent to the
date of this Agreement and also at each Time of Delivery, PricewaterhouseCoopers
LLP shall have furnished to you a letter or letters, dated the respective dates
of delivery thereof, in form and substance satisfactory to you, to the effect
set forth in Annex I hereto (the executed copy of the letter delivered prior to
the execution of this Agreement is attached as Annex I(a) hereto and a draft of
the form of letter to be delivered on the effective date of any post-effective
amendment to the Registration Statement and as of each Time of Delivery is
attached as Annex I(b) hereto);

         (f)  (i) Neither the Company nor any subsidiary shall have sustained
since the date of the latest audited financial statements included in the
Prospectus any loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise than as set
forth or contemplated in the Prospectus, and (ii) since the respective dates as
of which information is given in the Prospectus there shall not have been any
change in the capital stock or long-term debt of the Company or its subsidiary
or any change, or any development involving a prospective change, in or
affecting the general affairs, management, financial position, stockholders'
equity or results of operations of the Company and its subsidiary, otherwise
than as set forth or contemplated in the Prospectus, the effect of which, in any
such case described in clause (i) or (ii), is in the reasonable judgment of the
Representatives so material and adverse as to make it impracticable or
inadvisable to proceed with the public offering or the delivery of the Shares
being delivered at such Time of Delivery on the terms and in the manner
contemplated in the Prospectus;

         (g) On or after the date hereof there shall not have occurred any of
the following: (i) a suspension or material limitation in trading in securities
generally on the New York Stock Exchange or on NASDAQ; (ii) a suspension or
material limitation in trading in the Company's securities on NASDAQ; (iii) a
general moratorium on commercial banking activities declared by either federal
or New York or California state authorities; or (iv) the outbreak or escalation
of hostilities involving the United States or the declaration by the United
States of a national emergency or war, if the effect of any such event specified
in this clause (iv) in the reasonable judgment of the Representatives makes it
impracticable or inadvisable to proceed with the public offering or the delivery
of the Shares being delivered at such Time of Delivery on the terms and in the
manner contemplated in the Prospectus;

         (h) The Shares at such Time of Delivery shall have been duly listed for
quotation on NASDAQ;
<PAGE>
 
         (i) The Company has obtained and delivered to the Underwriters executed
copies of an agreement from each director and executive officer of the Company
and each Selling Stockholder, substantially to the effect set forth in
Subsection 1(b)(iv) hereof in form and substance satisfactory to you;

         (j) The Company shall have complied with the provisions of Section 5(c)
hereof with respect to the furnishing of prospectuses on the New York Business
Day next succeeding the date of this Agreement; and

         (k) The Company and the Attorneys-in-Fact on behalf of the Selling
Stockholders shall have furnished or caused to be furnished to you at such Time
of Delivery certificates of officers of the Company and of the Selling
Stockholders, respectively, satisfactory to you as to the accuracy of the
representations and warranties of the Company and the Selling Stockholders,
respectively, herein at and as of such Time of Delivery, as to the performance
by the Company and the Selling Stockholders of all of their respective
obligations hereunder to be performed at or prior to such Time of Delivery, and
as to such other matters as you may reasonably request, and the Company shall
have furnished or caused to be furnished certificates as to the matters set
forth in subsections (a) and (f) of this Section.

     8.  (a)  The Company and each of the Principal Selling Stockholders,
jointly and severally, will indemnify and hold harmless each Underwriter against
any losses, claims, damages or liabilities, joint or several, to which such
Underwriter may become subject, under the Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Prospectus, the Registration
Statement or the Prospectus, or any amendment or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and will reimburse each Underwriter for any legal or
other expenses reasonably incurred by such Underwriter in connection with
investigating or defending any such action or claim as such expenses are
incurred; provided, however, that the Company and the Principal Selling
Stockholders shall not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
any Preliminary Prospectus, the Registration Statement or the Prospectus or any
such amendment or supplement in reliance upon and in conformity with written
information furnished to the Company by any Underwriter through Goldman, Sachs &
Co. expressly for use therein; and provided further, that the liability of such
Principal Selling Stockholder under this subsection (a) shall not exceed the
actual net proceeds received by such Principal Selling Stockholder hereunder.

         (b) Each Selling Stockholder will indemnify and hold harmless each
Underwriter against any losses, claims, damages or liabilities, joint or
several, to which such Underwriter may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged
untrue statement of a material fact contained in any Preliminary Prospectus, the
Registration Statement or the Prospectus, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in any Preliminary Prospectus, the Registration
Statement or the Prospectus or any such amendment or supplement in reliance upon
and in conformity with written information furnished to the Company by such
Selling Stockholder expressly for use therein; and will reimburse each
Underwriter for any legal or other expenses reasonably incurred by such
Underwriter in connection with investigating or defending any such action or
claim as such expenses are incurred; provided, however, that the liability of
such
<PAGE>
 
Selling Stockholder pursuant to this subsection (b) shall not exceed the
actual net proceeds received by such Selling Stockholder hereunder.

         (c)  Each Underwriter will indemnify and hold harmless the Company and
each Selling Stockholder against any losses, claims, damages or liabilities to
which the Company or such Selling Stockholder may become subject, under the Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon an untrue statement or
alleged untrue statement of a material fact contained in any Preliminary
Prospectus, the Registration Statement or the Prospectus, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in any Preliminary
Prospectus, the Registration Statement or the Prospectus or any such amendment
or supplement in reliance upon and in conformity with written information
furnished to the Company by such Underwriter through Goldman, Sachs & Co.
expressly for use therein; and will reimburse the Company and such Selling
Stockholder for any legal or other expenses reasonably incurred by the Company
or such Selling Stockholder in connection with investigating or defending any
such action or claim as such expenses are incurred.

         (d)  Promptly after receipt by an indemnified party under subsection
(a), (b) or (c) above of notice of the commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under such subsection, notify the indemnifying party in
writing of the commencement thereof; but the omission so to notify the
indemnifying party shall not relieve it from any liability which it may have to
any indemnified party otherwise than under such subsection. In case any such
action shall be brought against any indemnified party and it shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it shall wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party shall
not be liable to such indemnified party under such subsection for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof other
than reasonable costs of investigation. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act, by or
on behalf of any indemnified party.

         (e)  If the indemnification provided for in this Section 8 is
unavailable to or insufficient to hold harmless an indemnified party under
subsection (a), (b) or (c) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Selling Stockholders on the
one hand and the Underwriters on the other from the offering of the Shares. If,
however, the allocation provided by the immediately preceding sentence is not
permitted by applicable law or if the indemnified party failed to give the
notice required under subsection (d) above, then each indemnifying party shall
contribute to such amount paid or payable by such indemnified party in such
proportion as is
<PAGE>
 
appropriate to reflect not only such relative benefits but also the relative
fault of the Company and the Selling Stockholders on the one hand and the
Underwriters on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company and the Selling Stockholders on the one hand
and the Underwriters on the other shall be deemed to be in the same proportion
as the total net proceeds from the offering (before deducting expenses) received
by the Company and the Selling Stockholders bear to the total underwriting
discounts and commissions received by the Underwriters, in each case as set
forth in the table on the cover page of the Prospectus. The relative fault shall
be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company or the Selling
Stockholders on the one hand or the Underwriters on the other and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company, each of the Selling
Stockholders and the Underwriters agree that it would not be just and equitable
if contributions pursuant to this subsection (e) were determined by pro rata
allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to above in this subsection (e). The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to above in this
subsection (e) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any such action or claim. Notwithstanding the provisions of this subsection (e),
no Underwriter shall be required to contribute any amount in excess of the
amount by which the total price at which the Shares underwritten by it and
distributed to the public were offered to the public exceeds the amount of any
damages which such Underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission and each
of the Selling Stockholders shall not be required to contribute any amount in
excess of the product of the number of Shares deemed sold by such Selling
Stockholder as set forth in the Prospectus under the caption "Principal and
Selling Stockholders" and the initial public offering price of the Shares as set
forth in the Prospectus. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters' obligations in this subsection (e) to
contribute are several in proportion to their respective underwriting
obligations and not joint.

         (f)  The obligations of the Company and the Selling Stockholders under
this Section 8 shall be in addition to any liability which the Company and the
respective Selling Stockholders may otherwise have and shall extend, upon the
same terms and conditions, to each person, if any, who controls any Underwriter
within the meaning of the Act; and the obligations of the Underwriters under
this Section 8 shall be in addition to any liability which the respective
Underwriters may otherwise have and shall extend, upon the same terms and
conditions, to each officer and director of the Company and any Selling
Stockholder and to each person, if any, who controls the Company or any Selling
Stockholder within the meaning of the Act.

     9.  (a)  If any Underwriter shall default in its obligation to purchase the
Shares which it has agreed to purchase hereunder at a Time of Delivery, you may
in your discretion arrange for you or another party or other parties to purchase
such Shares on the terms contained herein.  If within 36 hours after such
default by any Underwriter you do not arrange for the purchase of such Shares,
then the Company and the Selling Stockholders shall be entitled to a further
period of 36 hours within which to procure another party or other parties
satisfactory to you to purchase such Shares on such terms.  In the event that,
within the respective prescribed periods, you notify the Company and the Selling
Stockholders that you have so arranged for the purchase of such Shares, or the
Company and the Selling Stockholders notify you that they have so arranged for
the purchase of such Shares, you or the Company and the Selling Stockholders
shall have the right to postpone a Time of Delivery for a period 
<PAGE>
 
of not more than seven days, in order to effect whatever changes may thereby be
made necessary in the Registration Statement or the Prospectus, or in any other
documents or arrangements, and the Company agrees to file promptly any
amendments to the Registration Statement or the Prospectus which in your opinion
may thereby be made necessary. The term "Underwriter" as used in this Agreement
shall include any person substituted under this Section with like effect as if
such person had originally been a party to this Agreement with respect to such
Shares.

         (b) If, after giving effect to any arrangements for the purchase of the
Shares of a defaulting Underwriter or Underwriters by you and the Company and
the Selling Stockholders as provided in subsection (a) above, the aggregate
number of such Shares which remains unpurchased does not exceed one-eleventh of
the aggregate number of all the Shares to be purchased at such Time of Delivery,
then the Company and the Selling Stockholders shall have the right to require
each non-defaulting Underwriter to purchase the number of Shares which such
Underwriter agreed to purchase hereunder at such Time of Delivery and, in
addition, to require each non-defaulting Underwriter to purchase its pro rata
share (based on the number of Shares which such Underwriter agreed to purchase
hereunder) of the Shares of such defaulting Underwriter or Underwriters for
which such arrangements have not been made; but nothing herein shall relieve a
defaulting Underwriter from liability for its default.

         (c) If, after giving effect to any arrangements for the purchase of the
Shares of a defaulting Underwriter or Underwriters by you and the Company and
the Selling Stockholders as provided in subsection (a) above, the aggregate
number of such Shares which remains unpurchased exceeds one-eleventh of the
aggregate number of all of the Shares to be purchased at such Time of Delivery,
or if the Company and the Selling Stockholders shall not exercise the right
described in subsection (b) above to require non-defaulting Underwriters to
purchase Shares of a defaulting Underwriter or Underwriters, then this Agreement
(or, with respect to the Second Time of Delivery, the obligations of the
Underwriters to purchase and of the Selling Stockholders to sell the Optional
Shares) shall thereupon terminate, without liability on the part of any non-
defaulting Underwriter or the Company or the Selling Stockholders, except for
the expenses to be borne by the Company and the Selling Stockholders and the
Underwriters as provided in Section 6 hereof and the indemnity and contribution
agreements in Section 8 hereof; but nothing herein shall relieve a defaulting
Underwriter from liability for its default.

     10.  The respective indemnities, agreements, representations, warranties
and other statements of the Company, the Selling Stockholders and the several
Underwriters, as set forth in this Agreement or made by or on behalf of them,
respectively, pursuant to this Agreement, shall remain in full force and effect,
regardless of any investigation (or any statement as to the results thereof)
made by or on behalf of any Underwriter or any controlling person of any
Underwriter, or the Company, or any of the Selling Stockholders, or any officer
or director or controlling person of the Company, or any controlling person of
any Selling Stockholder, and shall survive delivery of and payment for the
Shares.

     11.  If this Agreement shall be terminated pursuant to Section 9 hereof,
neither the Company nor the Selling Stockholders shall then be under any
liability to any Underwriter except as provided in Sections 6 and 8 hereof; but,
if for any other reason any Shares are not delivered by or on behalf of the
Company and the Selling Stockholders as provided herein, the Company and each of
the Selling Stockholders pro rata (based on the number of Shares to be sold by
the Company and such Selling Stockholder hereunder) will reimburse the
Underwriters through you for all out-of-pocket expenses approved in writing by
you, including fees and disbursements of counsel, reasonably incurred by the
Underwriters in making preparations for the purchase, sale and delivery of the
Shares not so delivered, but the Company and the Selling Stockholders shall then
be under no further liability to any Underwriter in respect of the Shares not so
delivered except as provided in Sections 6 and 8 hereof.
<PAGE>
 
     12.  In all dealings hereunder, you shall act on behalf of each of the
Underwriters, and the parties hereto shall be entitled to act and rely upon any
statement, request, notice or agreement on behalf of any Underwriter made or
given by you jointly or by Goldman, Sachs & Co. on behalf of you as the
representatives; and in all dealings with any Selling Stockholder hereunder, you
and the Company shall be entitled to act and rely upon any statement, request,
notice or agreement on behalf of such Selling Stockholder made or given by any
or all representatives of such Selling Stockholder.

     All statements, requests, notices and agreements hereunder shall be in
writing, and if to the Underwriters shall be delivered or sent by mail, telex or
facsimile transmission to you as the representatives at in care of Goldman,
Sachs & Co., 32 Old Slip, 9th Floor, New York, New York 10004, Attention:
Registration Department; if to any Selling Stockholder shall be delivered or
sent by mail, telex or facsimile transmission to the Attorneys-in-Fact; and if
to the Company shall be delivered or sent by mail, telex or facsimile
transmission to the address of the Company set forth in the Registration
Statement, Attention: Secretary with a copy to Kenneth L. Guernsey Cooley
Godward LLP, One Maritime Plaza, 20th Floor, San Francisco, CA 94111; provided,
however, that any notice to an Underwriter pursuant to Section 8(d) hereof shall
be delivered or sent by mail, telex or facsimile transmission to such
Underwriter at its address set forth in its Underwriters' Questionnaire or telex
constituting such Questionnaire, which address will be supplied to the Company
or the Selling Stockholders by you on request.  Any such statements, requests,
notices or agreements shall take effect upon receipt thereof.

     13.  This Agreement shall be binding upon, and inure solely to the benefit
of, the Underwriters, the Company and the Selling Stockholders and, to the
extent provided in Sections 8 and 10 hereof, the officers and directors of the
Company and each person who controls the Company, any Selling Stockholder or any
Underwriter, and their respective heirs, executors, administrators, successors
and assigns, and no other person shall acquire or have any right under or by
virtue of this Agreement.  No purchaser of any of the Shares from any
Underwriter shall be deemed a successor or assign by reason merely of such
purchase.

     14.  Time shall be of the essence of this Agreement.  As used herein, the
term "business day" shall mean any day when the Commission's office in
Washington, D.C.  is open for business.

     15.  This Agreement shall be governed by and construed in accordance with
the laws of the State of New York.

     16.  This Agreement may be executed by any one or more of the parties
hereto in any number of counterparts, each of which shall be deemed to be an
original, but all such counterparts shall together constitute one and the same
instrument.
<PAGE>
 
  If the foregoing is in accordance with your understanding, please sign and
return to us one for the Company and each of the Representatives plus one for
each counsel and the Custodian, if any, and upon the acceptance hereof by you,
on behalf of each of the Underwriters, this letter and such acceptance hereof
shall constitute a binding agreement among each of the Underwriters, the Company
and each of the Selling Stockholders.  It is understood that your acceptance of
this letter on behalf of each of the Underwriters is pursuant to the authority
set forth in a form of Agreement among Underwriters, the form of which shall be
submitted to the Company and the Selling Stockholders for examination, upon
request, but without warranty on your part as to the authority of the signers
thereof.


                                        Very truly yours,

                                        eBay Inc.


                                        By:
                                             Name:  Margaret C. Whitman
                                             Title:  President and CEO


                                        [Selling Stockholders]


                                        By:
                                             Name:
                                             Title:

                                        As Attorney-in-Fact acting on behalf of
                                        each of the Selling Stockholders named
                                        in Schedule Ii to this Agreement.

Accepted as of the date hereof

Goldman, Sachs & Co.
Morgan Stanley & Co. Incorporated
BancBoston Robertson Stephens Inc.
BT Alex. Brown Incorporated
Donaldson, Lufkin & Jenrette Securities Corporation



By:
           (Goldman, Sachs & Co.)

On behalf of each of the Underwriters
<PAGE>
 
                                   SCHEDULE I


<TABLE>
<CAPTION>
Underwriter                                                             Total Number of    Number of Optional
                                                                       Firm Shares to be      Shares to be
                                                                           Purchased          Purchased if
                                                                                             Maximum Option
                                                                                                Exercised
<S>                                                                   <C>                  <C>
Goldman, Sachs & Co.
Morgan Stanley & Co. Incorporated
BancBoston Robertson Stephens Inc.
BT Alex. Brown Incorporated
Donaldson, Lufkin & Jenrette Securities Corporation
 
Total                                                                           6,500,000              975,000
                                                                      ===================  ===================
</TABLE>
<PAGE>
 
                                  SCHEDULE II


<TABLE>
<CAPTION>
                                                                                  Number of Optional
                                                                                     Shares to be
                                                             Total Number of            Sold if
                                                               Firm Shares          Maximum Option
                                                               to be Sold              Exercised
<S>                                                        <C>                  <C>
The Company.
The Selling Stockholder(s):
    [Name of Selling Stockholder](a).
    [Name of Selling Stockholder](b).
    [Name of Selling Stockholder](c).
    [Name of Selling Stockholder](d).
    [Name of Selling Stockholder](e).
</TABLE>

     (a) This Selling Stockholder is represented by [Name and Address of
         Counsel].

     (b) This Selling Stockholder is represented by [Name and Address of
         Counsel].

     (c) This Selling Stockholder is represented by [Name and Address of
         Counsel].

     (d) This Selling Stockholder is represented by [Name and Address of
         Counsel].

     (e) This Selling Stockholder is represented by [Name and Address of
         Counsel].
<PAGE>
 
                                    ANNEX I
                 FORM OF ANNEX I DESCRIPTION OF COMFORT LETTER
                    FOR REGISTRATION STATEMENTS ON FORM S-1

     Pursuant to Section 7(d) of the Underwriting Agreement, the accountants
shall furnish letters to the Underwriters to the effect that:

        (i) They are independent certified public accountants with respect to
     the Company and its subsidiaries within the meaning of the Act and the
     applicable published rules and regulations thereunder;

        (ii) In their opinion, the financial statements and any supplementary
     financial information and schedules (and, if applicable, financial
     forecasts and/or pro forma financial information) examined by them and
     included in the Prospectus or the Registration Statement comply as to form
     in all material respects with the applicable accounting requirements of the
     Act and the related published rules and regulations thereunder; and, if
     applicable, they have made a review in accordance with standards
     established by the American Institute of Certified Public Accountants of
     the unaudited consolidated interim financial statements, selected financial
     data, pro forma financial information, financial forecasts and/or condensed
     financial statements derived from audited financial statements of the
     Company for the periods specified in such letter, as indicated in their
     reports thereon, copies of which have been separately furnished to the
     representatives of the Underwriters (the "Representatives");

        (iii)  They have made a review in accordance with standards established
     by the American Institute of Certified Public Accountants of the unaudited
     condensed consolidated statements of income, consolidated balance sheets
     and consolidated statements of cash flows included in the Prospectus as
     indicated in their reports thereon copies of which have been separately
     furnished to the Representatives and on the basis of specified procedures
     including inquiries of officials of the Company who have responsibility for
     financial and accounting matters regarding whether the unaudited condensed
     consolidated financial statements referred to in paragraph (vi)(A)(i) below
     comply as to form in all material respects with the applicable accounting
     requirements of the Act and the related published rules and regulations,
     nothing came to their attention that caused them to believe that the
     unaudited condensed consolidated financial statements do not comply as to
     form in all material respects with the applicable accounting requirements
     of the Act and the related published rules and regulations;

        (iv) The unaudited selected financial information with respect to the
     consolidated results of operations and financial position of the Company
     for the five most recent fiscal years included in the Prospectus agrees
     with the corresponding amounts (after restatements where applicable) in the
     audited consolidated financial statements for such five fiscal years which
     were included or incorporated by reference in the Company's Annual Reports
     on Form 10-K for such fiscal years;

        (v) They have compared the information in the Prospectus under selected
     captions with the disclosure requirements of Regulation S-K and on the
     basis of limited procedures specified in such letter nothing came to their
     attention as a result of the foregoing procedures that caused them to
     believe that this information does not conform in all material respects
     with the disclosure requirements of Items 301, 302, 402 and 503(d),
     respectively, of Regulation S-K;

        (vi) On the basis of limited procedures, not constituting an examination
     in accordance with generally accepted auditing standards, consisting of a
     reading of the 
<PAGE>
 
     unaudited financial statements and other information referred to below, a
     reading of the latest available interim financial statements of the Company
     and its subsidiaries, inspection of the minute books of the Company and its
     subsidiaries since the date of the latest audited financial statements
     included in the Prospectus, inquiries of officials of the Company and its
     subsidiaries responsible for financial and accounting matters and such
     other inquiries and procedures as may be specified in such letter, nothing
     came to their attention that caused them to believe that:

             (A) (i) the unaudited consolidated statements of income,
        consolidated balance sheets and consolidated statements of cash flows
        included in the Prospectus do not comply as to form in all material
        respects with the applicable accounting requirements of the Act and the
        related published rules and regulations, or (ii) any material
        modifications should be made to the unaudited condensed consolidated
        statements of income, consolidated balance sheets and consolidated
        statements of cash flows included in the Prospectus for them to be in
        conformity with generally accepted accounting principles;

            (B) any other unaudited income statement data and balance sheet
        items included in the Prospectus do not agree with the corresponding
        items in the unaudited consolidated financial statements from which such
        data and items were derived, and any such unaudited data and items were
        not determined on a basis substantially consistent with the basis for
        the corresponding amounts in the audited consolidated financial
        statements included in the Prospectus;

            (C) the unaudited financial statements which were not included in
        the Prospectus but from which were derived any unaudited condensed
        financial statements referred to in Clause (A) and any unaudited income
        statement data and balance sheet items included in the Prospectus and
        referred to in Clause (B) were not determined on a basis substantially
        consistent with the basis for the audited consolidated financial
        statements included in the Prospectus;

            (D) any unaudited pro forma consolidated condensed financial
        statements included in the Prospectus do not comply as to form in all
        material respects with the applicable accounting requirements of the Act
        and the published rules and regulations thereunder or the pro forma
        adjustments have not been properly applied to the historical amounts in
        the compilation of those statements;

            (E) as of a specified date not more than five days prior to the date
        of such letter, there have been any changes in the consolidated capital
        stock (other than issuances of capital stock upon exercise of options
        and stock appreciation rights, upon earn-outs of performance shares and
        upon conversions of convertible securities, in each case which were
        outstanding on the date of the latest financial statements included in
        the Prospectus) or any increase in the consolidated long-term debt of
        the Company and its subsidiaries, or any decreases in consolidated net
        current assets or stockholders' equity or other items specified by the
        Representatives, or any increases in any items specified by the
        Representatives, in each case as compared with amounts shown in the
        latest balance sheet included in the Prospectus, except in each case for
        changes, increases or decreases which the Prospectus discloses have
        occurred or may occur or which are described in such letter; and

            (F) for the period from the date of the latest financial statements
        included in the Prospectus to the specified date referred to in Clause
        (E) there were any decreases in consolidated net revenues or operating
        profit or the total or per share 
<PAGE>
 
        amounts of consolidated net income or other items specified by the
        Representatives, or any increases in any items specified by the
        Representatives, in each case as compared with the comparable period of
        the preceding year and with any other period of corresponding length
        specified by the Representatives, except in each case for decreases or
        increases which the Prospectus discloses have occurred or may occur or
        which are described in such letter; and

        (vii)  In addition to the examination referred to in their report(s)
     included in the Prospectus and the limited procedures, inspection of minute
     books, inquiries and other procedures referred to in paragraphs (iii) and
     (vi) above, they have carried out certain specified procedures, not
     constituting an examination in accordance with generally accepted auditing
     standards, with respect to certain amounts, percentages and financial
     information specified by the Representatives, which are derived from the
     general accounting records of the Company and its subsidiaries, which
     appear in the Prospectus, or in Part II of, or in exhibits and schedules
     to, the Registration Statement specified by the Representatives, and have
     compared certain of such amounts, percentages and financial information
     with the accounting records of the Company and its subsidiaries and have
     found them to be in agreement.
