<PAGE>


                                                                EXHIBIT 10.7


                         FIRST AMENDMENT TO OFFICE LEASE

         THIS FIRST  AMENDMENT TO OFFICE LEASE ("First  Amendment")  is made and
entered into this 14th day of January, 2000 by and between PINE STREET INVESTORS
I, L.L.C., a Delaware limited liability company ("Landlord"), and PEOPLEPC INC.,
a Delaware corporation ("Tenant").


                                    RECITALS
                                    --------

         A.  On June 3, 1999,  Landlord  and Tenant  entered  into that  certain
Office  Lease  under which  Landlord  leased to Tenant,  and Tenant  leased from
Landlord,  certain  premises  comprising  the 11th  floor of the  building  (the
"existing Premises") located at 100 Pine Street, San Francisco,  California (the
"Building"). The Office Lease is referred to herein as the "Lease."

         B.  Tenant desires to lease additional office space on the 10th floor
of the Building to increase its existing  Premises and Landlord desires to lease
such space to Tenant on the terms and conditions set forth herein.

         C.  Any terms set forth in this Agreement which are not expressly
defined shall have the meanings ascribed to them in the Lease.

         NOW,  THEREFORE,  in  consideration  of the mutual  promises  contained
herein and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Landlord and Tenant hereby agree as follows:


                                    AGREEMENT
                                    ---------

1.  ADDITIONAL LEASED SPACE.  Landlord hereby leases to Tenant and Tenant hereby
hires from  Landlord,  in addition to the  existing  Premises,  13,285  rentable
square feet of space  comprising  the tenth (10th) floor of the Building  (Suite
1000),  as identified  on Exhibit A attached  hereto and made a part hereof (the
"Additional  Leased  Space").  The parties  acknowledge and agree that as of the
Commencement Date (defined in Paragraph 2 below):  (i) the existing Premises and
the  Additional  Leased Space shall be  collectively  referred to herein and for
purposes of the Lease, as amended hereby,  as the "Premises," and (ii) the total
rentable area comprising the Premises shall be equal to 26,570 square feet.
<PAGE>

2.  Term.
    ----

    (a)  The lease Term for the  Additional  Leased Space shall  commence on
February 15, 2000 (the  "Commencement  Date"),  and, unless sooner terminated as
provided  herein or in the  Lease,  shall  expire on  February  14,  2005.  Said
Commencement  Date may be postponed as set forth in Paragraph 2(d) of this First
Amendment.  The Term may be extended upon the terms and  conditions set forth in
Rider Two to the Lease.

    (b)  The "Expiration Date" applicable to the existing Premises is hereby
amended to be February 14, 2005.

    (c)  If Landlord fails to deliver  possession of the  Additional  Leased
Space within five (5) business days following the execution and delivery of this
First Amendment by Landlord and Tenant,  the Commencement  Date shall be delayed
for each day beyond said five (5) day period until Landlord delivers  possession
of the Additional Leased Space. If Landlord,  for any reason whatsoever,  cannot
deliver  possession of the Additional Leased Space to Tenant by the Commencement
Date,  this  Amendment and the Lease shall not be void or voidable,  the term of
the Lease shall not be extended by such delay,  the terms and  conditions of the
Lease applicable to the existing  Premises shall in no way be affected  thereby,
and the Landlord shall not be liable to Tenant for any loss or damage  resulting
therefrom;  provided,  however,  if Landlord is unable, for any reason except to
the extent caused by Tenant,  its contractors,  agents or employees,  to deliver
possession of the  Additional  Leased Space to Tenant within one hundred  twenty
(120) days  following  execution  and  delivery of this First  Amendment by both
Landlord  and  Tenant,  Tenant  shall,  as its sole  remedy,  have the  right to
terminate the Lease as to the Additional Leased Space only by delivering written
notice to Landlord any time thereafter until Landlord delivers possession of the
Premises to Tenant. Upon such termination, Landlord and Tenant shall be relieved
of  their  obligations  hereunder  and  under  the  Lease as it  applies  to the
Additional  Leased  Space,  and any Security  Deposit and prepaid Base Rent paid
hereunder  attributable  to the  Additional  Leased  Space  shall be returned to
Tenant.

    (d)  Article 2(D) of the Lease is hereby deleted in its entirety and
replaced with the following:

"Subject to the terms set forth in this  Paragraph,  Tenant shall have the right
to  terminate  and  cancel  the Lease and the First  Amendment  as to either the
existing  Premises  or the  Additional  Leased  Space (the  "Terminated  Space")
effective as of the expiration of thirty (30) full calendar months following the
Commencement  Date applicable to the Additional  Leased Space (the  "Termination
Date") by delivering to Landlord  written notice thereof at least six (6) months
prior to the Termination Date (the "Termination  Option"). As a condition to the
effectiveness of Tenant's exercise of its Termination Option, and in addition to
Tenant's obligation to satisfy all other monetary and nonmonetary obligations as
to the  Terminated  Space  under the Lease and the First  Amendment  through the
Termination Date, Tenant shall,  thirty (30) days prior to the Termination Date,
pay Landlord a sum equal to: (i) four months Base Rent applicable to

                                        2
<PAGE>

the Terminated Space (which,  if the Terminated Space is the existing  Premises,
shall be equal to the average  Base Rent payable by Tenant over the Lease Term),
plus (ii)  fifty  percent  (50.0%) of any other  direct  out of pocket  costs of
Landlord  incurred in  connection  with the leasing of the  Terminated  Space to
Tenant hereunder and under the Lease,  including,  without  limitation,  leasing
commissions  paid by  Landlord in  connection  with the  execution  of the First
Amendment  and the Lease and any  improvement  allowance  provided  to Tenant by
Landlord for the Terminated  Space,  the exact sum of which  Landlord  agrees to
identify to Tenant prior to Tenant's payment  thereof;  said sum, as applicable,
shall be referred to herein  collectively  as the  "Termination  Consideration".
Tenant may not  exercise  the  Termination  Option if Tenant is in  Default  (as
defined  in  Article  20(A))  under  the  First  Amendment  or  the  Lease.  The
Termination  Option is personal to Tenant  hereunder and may not be exercised by
or assigned, voluntarily or involuntarily,  to any person or entity other than a
Related Entity (as defined in Article 17(G)) or a permitted assignee of Tenant's
interest in this Lease which  assignee is a successor to Tenant either by merger
or consolidation  or a purchaser of all or substantially  all of Tenant's assets
(provided such purchaser shall have also assumed in writing Tenant's obligations
under this Lease).  Tenant may only exercise the Termination Option with respect
to all (not a portion) of either the existing  Premises or the Additional Leased
Space,  and  Tenant  may not  exercise  the  Termination  Option  as to both the
existing  Premises and the Additional  Leased Space. If Tenant properly and in a
timely manner  exercises  ,its  Termination  Option and properly and in a timely
manner  delivers the  Termination  Consideration  to Landlord and  satisfies all
other monetary and non-monetary obligations under this Lease, including, without
limitation,  the  provisions  related to  surrender  of the  Premises  as to the
Terminated  Space,  all  of  which  shall  be  accomplished  on  or  before  the
Termination  Date,  then the Lease  and,  to the  extent  applicable,  the First
Amendment  shall  terminate  as of  midnight on the  Termination  Date as to the
Terminated Space.  Landlord agrees to notify Tenant of any attempted exercise of
the  Termination   Option  which  does  not  satisfy  the  foregoing  terms  and
conditions,  identifying the  deficiencies of such exercise;  if Tenant does not
cure all of such deficiencies  within five (5) days following  Landlord's notice
thereof  or  if  the  deficiency  is  non-curable,   Tenant's  exercise  of  the
Termination Option shall be null and void, and the Lease and the First Amendment
shall continue in full force and effect in accordance with its terms.

3.  Rent.
    ----

    (a)  Base Rent. Tenant shall pay Landlord as Base Rent for the Additional
         ---------
Leased Space the sum of $46.00 per rentable square foot of the Additional Leased
Space per year, which shall be equal to an annual Base Rent of $611,110.00 and a
monthly Base

                                        3
<PAGE>

Rent of  $50,925.83.  Said  Base  Rent  shall be  payable  commencing  as of the
Commencement  Date applicable to the Additional  Leased Space,  except that Base
Rent for the first  full  calendar  month for which said Base Rent shall be due,
shall be paid when Tenant executes this First Amendment. Said Base Rent shall be
in addition to the Base Rent payable for the existing  Premises  under Article 3
of the Lease. Any Base Rent shall be paid in advance, on or before the first day
of  each  calendar  month  during  the  Lease  Term.  If the  Commencement  Date
applicable to the  Additional  Leased Space is on a day other than the first day
of a calendar month, Base Rent for the Additional Leased Space shall be prorated
for such month.

    (b)  Operating Expenses. The parties acknowledge and agree that Tenant's
         ------------------
Prorata Share of Taxes and Operating  Expenses  attributable  to the  Additional
Leased Space is 3.3003%.  The Base Tax Year and Base Expense Year  applicable to
the  Additional  Leased  Space  shall  be  the  calendar  year  2000.  As of the
Commencement  Date applicable to the Additional  Leased Space,  Tenant's Prorata
Share of Taxes and Operating Expenses (as defined in Article 26(0) of the Lease)
shall be increased to 6.601% to take into account the Additional Leased Space.

4.  Condition of Additional Leased Space.
    ------------------------------------
    (a)  Tenant acknowledges and agrees that,  notwithstanding  anything to
the  contrary  in Article 6 of the Lease,  it is leasing the  Additional  Leased
Space in its present and "as is" condition, and that Landlord is not responsible
for making any repairs or  improvements  thereto except that Landlord  agrees to
provide the  Allowance as set forth in Paragraph  4(b) of this First  Amendment.
Tenant further  acknowledges that neither Landlord nor any agent of Landlord has
made any representation or warranty with respect to the Additional Leased Space,
the Building, the Building Systems or Tenant's business.

    (b)  Landlord shall provide to Tenant an improvement allowance in an amount
equal  to  One  Hundred   Thirty-Two   Thousand   Eight  Hundred  Fifty  Dollars
($132,850.00) ("Allowance"), to reimburse Tenant for actual costs incurred by it
in connection with the refurbishment,  repair,  improvement and/or alteration of
the Premises,  and/or the installation of Lines (as defined in the Lease) within
the  Premises.  Any repairs,  refurbishment,  improvements  or  alterations  and
installation  of Lines  shall be  completed  by Tenant at its own  expense,  and
subject to the provisions of Articles 10 and 29 the Lease. The Allowance, or any
portion  thereof,  shall be payable by  Landlord as the work  progresses  within
thirty (30) days following  receipt of Tenant's  disbursement  requests  against
such  allowance as set forth herein.  Such requests  shall include the following
items,  to  the  extent   applicable  to  the  items  for  which  the  Allowance
disbursement  is  being  requested:   (i)  proper  receipts  for  said  repairs,
refurbishment,  improvements or  alterations,  or any portions  thereof,  (ii) a
certification  from the  contractor  performing  said work that the sums  billed
reflect work actually  performed,  (iii)  executed  conditional  mechanic's  and
materialman's lien releases,  in the statutory form, from all parties being paid
from such disbursement, (iv) such other information or documentation as Landlord
may reasonably  request.  Five (5) months following the  Commencement  Date, any
unused  portion  of the  Allowance  will be used as a credit  toward  Base  Rent
payable under the Lease as amended hereby.

                                        4
<PAGE>

5.  Security  Deposit.  Upon  Tenant's  execution  and  delivery  of this  First
    -----------------
Amendment,  Tenant shall deposit with Landlord  $50,925.83 ("Cash Deposit").  In
addition,  Tenant shall  deliver and cause to be in effect upon the execution of
this First  Amendment,  during the Lease Term,  and for a period sixty (60) days
thereafter,  an  unconditional,  irrevocable  letter of credit in the  amount of
$509,258.30 in favor of Landlord ("Letter of Credit").  The Cash Deposit and the
Letter of Credit  shall be referred to  collectively  herein as the  "Additional
Security  Deposit".  The Additional  Security  Deposit and the Security  Deposit
provided by Tenant under the Lease shall serve as security for the prompt,  full
and faithful  performance by Tenant of the terms and provisions of the Lease, as
amended hereunder. In accordance with the terms hereof, Tenant shall deliver the
Letter of Credit to Landlord  upon the execution of this First  Amendment.  Such
Letter of Credit shall be in a form reasonably acceptable to Landlord and issued
by a bank  selected by Tenant and  reasonably  acceptable  to Landlord.  Without
limiting the generality of the foregoing,  any bank issuing the Letter of Credit
shall be a bank  that  accepts  deposits,  maintains  accounts,  has a local San
Francisco  office that will  negotiate a letter of credit,  and the  deposits of
which are insured by the Federal Deposit  Insurance  Corporation.  The Letter of
Credit shall  provide  that the issuing bank shall  deliver to Landlord at least
sixty (60) days prior  written  notice of the  termination  or expiration of any
such Letter of Credit.  Tenant shall pay all expenses,  points, or fees incurred
by Tenant in obtaining  and  maintaining  the Letter of Credit.  The  Additional
Security  Deposit and the initial  Security Deposit shall be held by Landlord as
security for the prompt,  full and faithful  performance by Tenant of all of the
terms,  covenants and conditions of the Lease and this First Amendment,  and for
reimbursement of Landlord of certain expenses incurred by Landlord in connection
with the execution of the Lease and this First  Amendment.  Without limiting the
generality of the foregoing or anything in the Lease,  Tenant  acknowledges  and
agrees that the Additional Security Deposit may be applied by Landlord, upon the
occurrence of a Default (including, without limitation, termination of the Lease
following a Default)  to  reimburse  Landlord  for the (i)  unamortized  cost of
leasing commissions payable by Landlord in connection with this First Amendment,
and  (ii)  the  unamortized  cost  of  Landlords  Allowance  (collectively,  the
"Reimbursable  Expenses").  Tenant agrees, upon termination of the Lease (except
under Article 2(D) of the Lease, as revised hereunder) or upon Tenant's Default,
that  Landlord  shall  have the right to draw upon the Cash  Deposit  and/or the
Letter of Credit,  and apply the proceeds thereof to reimburse  Landlord for any
unperformed Lease obligations and any Reimbursable  Expenses. In addition,  upon
the occurrence of a Default under the Lease,  Landlord, in its sole and absolute
discretion,  shall have the right to draw upon the Cash Deposit and/or Letter of
Credit and apply the proceeds to satisfy Tenant's outstanding  obligations under
the Lease.  The use or  application of the  Additional  Security  Deposit or any
portion  thereof shall not prevent  Landlord from  exercising any other right or
remedy  provided  hereunder  or under  any Law and  shall  not be  construed  as
liquidated  damages.  If  Landlord  uses or applies any portion of the Letter of
Credit,  Tenant shall,  within ten (10) business days after demand,  (a) deposit
cash (which shall constitute an additional Security Deposit) with Landlord in an
amount  that,  when  added to the amount  remaining  under the Letter of Credit,
equals $509,258.30,  or (b) deliver written  documentation  executed by the bank
issuing the Letter of Credit that confirms that the Letter of Credit

                                        5
<PAGE>

has been reinstated or a new or additional  Letter of Credit issued in such full
amount,  and  Tenant's  failure to do so shall be deemed a  material  breach and
"Default"  under the Lease.  If Landlord uses or applies any portion of the Cash
Deposit,  Tenant shall, within ten (10) business days after demand, deposit cash
with  Landlord  in an amount that when added to the amount  remaining  under the
Cash Deposit equals $50,925.83. Upon sixty (60) days following expiration of the
Term of the Lease and the vacation of the Premises by Tenant,  other than when a
Default  has  occurred,  Landlord  shall:  (i)  release the Letter of Credit and
Tenant's  obligation to provide the Letter of Credit shall cease and (ii) return
the Cash  Deposit  (without  interest) to Tenant.  In  addition,  if and only if
Tenant  has not been in  Default  under the  Lease,  and if Tenant  has not been
notified by Landlord that it is in default under the Lease  immediately prior to
the applicable period, upon Tenant's written request,  Landlord agrees to review
Tenant's then current financial  condition at the expiration of twenty-four (24)
months following the Commencement  Date for the Additional  Leased Space and, if
applicable,  following the end of each twelve (12) month period thereafter,  for
purposes of  determining  whether the Letter of Credit  should  remain in place,
which  determination  shall  be  made  by  Landlord  in its  sole  and  absolute
discretion;  Tenant  agrees to  provide  Landlord  with such  information  as to
Tenant's financial  condition as Landlord may request from time to time. Nothing
is this Paragraph shall affect or limit  Landlord's  right under Paragraph 36 of
the Lease.

6.  Assignment and Subletting.
    -------------------------
    (a)  The fourth  sentence of Article 17(A) of the Lease is hereby deleted in
its entirety and replaced with the following:

 "In  addition  to  the  other  requirements  hereunder,  if the  Subject  Space
comprises  twenty percent (20%) or more of each full floor of the Premises,  the
Subject Space must be separately  demiseable with  appropriate  means of ingress
and egress  suitable  for  normal  renting  purposes;  provided,  however,  such
condition  shall not apply or be the sole  basis for  Landlord  withholding  its
consent to any Transfer if Landlord  does not exercise its right to recapture or
sublease the Subject Space as provided herein."

    (b)  The last  sentence of Article  17(C) of the Lease is hereby  deleted in
its entirety and replaced with the following:

"Notwithstanding the foregoing rights of Landlord, Landlord's right to recapture
or sublease the Subject Space as set forth in this Paragraph  shall not apply to
a proposed sublease of the Premises where: (i) the aggregate space sublet and/or
proposed to be sublet by Tenant (including the Subject Space and any common area
square  footage  allocated or proposed to be allocated  to any  Transferees)  is
equal to less than twenty percent (20%) of each floor of the Premises (or 40% of
the entire Premises as long as the Premises  comprises two floors),  or (ii) the
term of the proposed sublease is equal to or less than eighteen (18) months, the
aggregate  space sublet and/or  proposed to be sublet by Tenant  (including  the
Subject  Space and any common area square  footage  allocated  or proposed to be
allocated to any  Transferees) is less than 6,000 rentable square feet per floor
of the  Premises,  the  proposed  Transferee  is an  affiliate  (as such term is
defined in the California  Corporations  Code) of Tenant, or an affiliate of any
members of the board

                                        6
<PAGE>

of directors or of a founder of Tenant, and such proposed  Transferee engages in
a  technology,  media or internet  related  business  or is an internet  related
venture  capital  firm,  or (iii) the  sublease or  assignment  does not require
Landlord's consent as expressly set forth in Article 17(G). "

7.  Terms and Conditions.
    --------------------
    (a)  Except as expressly set forth herein,  the terms and  conditions of the
Lease shall apply to the  Additional  Leased  Space and are hereby  incorporated
herein. The Lease shall not otherwise be affected by the Amendment.

    (b)  Tenant  hereby  acknowledges  that,  as of the date of this  Amendment,
there are no existing defaults by Landlord in the performance of its obligations
under the Lease,  nor to the best of Tenant's  knowledge are there now any facts
or conditions  which,  with notice or lapse of time or both,  will become such a
default,  and there is no offset,  defense,  counterclaim  or credit against any
rental or other payment due under the Lease.

8.  Brokers.  The parties  acknowledge  that they have dealt only with CUSHMAN &
    -------
WAKEFIELD OF CALIFORNIA,  INC. and  Landlord's  Building  representative  broker
(whose  commission,  if any,  shall be paid by  Landlord  pursuant  to  separate
agreement) as broker,  agent or finder in connection with the Additional  Leased
Space.  The parties  agree to indemnify  and hold each other  harmless  from all
damages,  judgments,  liabilities and expenses (including  reasonable attorney's
fees)  arising from any claims or demands of any other  broker,  agent or finder
not disclosed  herein with whom the indemnifying  party (Landlord or Tenant,  as
the case may be) has dealt or claimed to have  dealt for any  commission  or fee
alleged to be due in connection  with its  participation  in the  procurement of
Tenant or the negotiations with Tenant concerning the Additional Leased Space or
execution of this First Amendment to Office Lease.

                                        7
<PAGE>

         IN WITNESS WHEREOF,  the parties hereto have executed this Amendment to
Office Lease as of the date first above written.

LANDLORD:

PINE STREET INVESTORS I, L.L.C.
a Delaware limited liability company

 By:      Walton Street Real Estate Fund I, L.P.,
          a Delaware limited partnership,
          Managing Partner

          By:     Walton Street Managers I, L.P.,
                  a Delaware limited partnership,
                  General Partner

                  By:      WSC Managers I, Inc.,
                           a Delaware corporation,
                           General Partner

                           By: /s/ HOWARD BRODY
                               ------------------
                           Name:   Howard Brody
                           Title:  Vice President

TENANT:

PEOPLEPC INC.,
a Delaware corporation

By:  /s/ MARY E. HUMISTON
     --------------------
Name:   Mary E. Humiston
Title:  VP HR & Administration

                                        8
<PAGE>

[100 PINE STREET LOGO APPEARS HERE]

LEASE EXHIBIT

TENTH FLOOR

SUITE 1000

                   [TENTH FLOOR, SUITE 1000 MAP APPEARS HERE]