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                                                                   EXHIBIT 10.16

                             [TELOCITY LETTERHEAD]

Via Hand Delivery

August 24, 1999

Mr. Jim Rohrer
2225 Island Point Dr.
Evergreen, CO 80439

Dear Jim,

We are pleased to offer you the regular full time position of Customer Care
Officer for Telocity, Inc. You will report directly to me. Your anticipated
start date would be August 24, 1999.

Duties. If you accept the offer, you will be responsible for budgeting,
managing, monitoring and reporting for all customer care functions of the
Company, including but not limited to: (i) customer service; (ii) activation of
new customers; (iii) technical support; (iv) credit approval, debt management,
and collections; (vi) churn; (vii) upsell; and (v) ACD statistics. Your
responsibilities will also include staffing your organization and
selecting/managing Customer Care vendors.

Stock Options. If you accept this offer, upon approval by the Company's Board of
Directors you will be granted options to purchase 50,000 shares of the Company's
common stock with a per share purchase price equal to the fair market value at
the time of the grant. The options will vest over a two-year period calculated
based on your start date with the Company. Six months after your start date, a
vesting "cliff" will occur, meaning, the first 1/4 of your options (12,500
shares) will vest. Thereafter, 1/18th (2,083 shares) of the your remaining
options (37,500 shares) will vest on the first day of each of the following
eighteen months that you work continuously as a regular employee of the Company
until your options have fully vested.

Accelerated Vesting. Notwithstanding the vesting schedule described above, your
options will fully vest on an accelerated basis upon the completion of certain
Company and/or performance milestones. We acknowledge that these milestones have
yet to be set. However, within sixty days of the effective date of this Letter
Agreement, you and I will meet and mutually agree to the milestones. Thereafter,
the milestones will be attached as an addendum to this Letter Agreement.

Salary. If you accept the offer, you will receive a monthly salary of $13,333.33
($160,000 annualized) which will be paid in two installments in accordance with
the Company's normal payroll procedures, on the fifteenth and last day of each
month. Initially, as described below, you would be required to work full time
on-location at our offices in Cupertino. During that period of time the Company
will cover your travel and lodging expenses.


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                                                                 August 24, 1999
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Term of Employment Agreement. The duration of this Employment Agreement will be
for one (1) year, during which termination will be only for cause. In the event
of termination without cause, the Company will fulfill its salary and vesting
obligations as set forth above for the remainder of the one-year term of this
Agreement. At the end of one (1) this Agreement may be terminated by either
party with or without cause without penalty of any kind. If, at the end of the
one (1) year term of this Agreement the parties wish to mutually extend the
term, then such extension will be upon the terms and conditions then agreed
upon. Nothing in this Agreement should be construed to create or in fact creates
any employment obligations by either party beyond the end of the one (1) year
term.

Location. During the "Initial Phase" of the one (1) year term of this agreement,
you will be required to work full time in the Company's Cupertino Main Office.
The "Initial Phase" is from the effective date of this Agreement until the
Company's customer care organization is completed, functional, and operating at
or above the level of the Company's competition.

Health Care Coverage. Telocity offers full medical and dental coverage benefits
for its employees, for which you will become eligible on your first day of
employment. The Company offers a 401(k) Savings Plan and section 125 Pretax
Savings for which you will be eligible for on the 1st of the following month of
employment.

Immigration Requirements. For purposes of federal immigration law, you will be
required to provide the Company documentary evidence of your identity and
eligibility for employment in the United States, which will be your H-1 visa.
Such documentation must be provided to us within three business days of your
date of hire, or our employment relationship with you may be terminated. You
will also be required to sign an Employee Inventions and Proprietary Rights
Assignment Agreement as a condition of your employment.

Dispute Resolution. In the event of any dispute or claim relating to or arising
out of our employment relationship, this agreement, or the termination of our
employment relationship (including but not limited to claims of wrongful
termination or age, sex, disability, race or other discrimination or
harassment), you and the Company agree that all such disputes shall be fully and
finally resolved by binding arbitration conducted by the American Arbitration
Association in Santa Clara County, California. By making this agreement, both
you and the Company waive our respective rights to have such disputes tried by a
court or jury. However, we agree that this arbitration provision will not apply
to any disputes or claims relating to the misuse or misappropriation of trade
secrets or proprietary information.

General. This letter and the Employee Inventions and Proprietary Rights
Assignment Agreement set forth terms of your employment with the Company and
supercede any prior representations or agreements, whether written or oral. This
letter may not be modified or amended except by a written agreement signed by
both parties.

Acceptance. To indicate your acceptance of the Company's offer, please sign and
date this letter, and the enclosed Employee Inventions and Proprietary Rights
Agreement. Return both pages of this letter by fax to our confidential fax
number (408) 863-4783, no later than the close of business on Monday, August 23,
1999. A duplicate original of the letter and the Employee Inventions and
Proprietary Rights Agreement is enclosed for your files. Please keep them in a
secure place. This

                                               This Document Highly Confidential


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                                                                 August 24, 1999
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offer is highly confidential, so please do not disclose its terms to anyone
other than your advisor(s). Please bring both the originals of the letter and
the Agreement with you on your first day.

We are excited about the prospect of you joining our team and look forward to
working with you.

Sincerely,

/s/ PATTI HART
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Patti Hart
President & CEO

Enclosures

Agreed to and Accepted:

/s/ JIM ROHRER                                  8/24/99
------------------------                      -------------------
Jim Rohrer                                      Date













This Document Highly Confidential