<PAGE>

                                                                   Exhibit 10.11

                              NETWORK ENGINES, INC.

                           Restricted Stock Agreement
                     Granted Under 1999 Stock Incentive Plan
                     ---------------------------------------

      AGREEMENT made this 18th day of November, 1999, between Network Engines,
Inc., a Delaware corporation (the "Company"), and John Blaeser (the
"Participant").

      For valuable consideration, receipt of which is acknowledged, the parties
hereto agree as follows:

      1. Purchase of Shares.
         ------------------

      The Company shall issue and sell to the Participant, and the Participant
shall purchase from the Company, subject to the terms and conditions set forth
in this Agreement and in the Company's 1999 Stock Incentive Plan (the "Plan")
75,000 shares (the "Shares") of common stock, $.01 par value, of the Company
("Common Stock"), at a purchase price of $.60 per share. The aggregate purchase
price for the Shares shall be paid by the Participant by check payable to the
order of the Company or such other method as may be acceptable to the Company.
Upon receipt by the Company of payment for the Shares, the Company shall issue
to the Participant one or more certificates in the name of the Participant for
that number of Shares purchased by the Participant. The Participant agrees that
the Shares shall be subject to the Purchase Option set forth in Section 2 of
this Agreement and the restrictions on transfer set forth in Section 4 of this
Agreement.

      2. Purchase Option.
         ---------------

      (a) In the event that the Participant ceases to be employed by the Company
for any reason or no reason, with or without cause, prior to November 18, 2003,
the Company shall have the right and option (the "Purchase Option") to purchase
from the Participant, for a sum of $.60 per share (the "Option Price"), some or
all of the Unvested Shares (as defined below).

      "Unvested Shares" means the total number of Shares multiplied by the
Applicable Percentage at the time the Purchase Option becomes exercisable by the
Company. The "Applicable Percentage" shall begin as 100% and shall be reduced by


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<PAGE>

25% on November 18, 2000 and shall be reduced by 6.25 upon the completion of
each full three months of employment by the Participant after November 18, 2000,
and shall be zero on or after November 18, 2003.

      (b) For purposes of this Agreement, employment with the Company shall
include employment with a parent or subsidiary of the Company.

      3. Exercise of Purchase Option and Closing.
         ---------------------------------------

      (a) The Company may exercise the Purchase Option by delivering or mailing
to the Participant (or his estate), within 60 days after the termination of the
employment of the Participant with the Company, a written notice of exercise of
the Purchase Option. Such notice shall specify the number of Shares to be
purchased. If and to the extent the Purchase Option is not so exercised by the
giving of such a notice within such 60-day period, the Purchase Option shall
automatically expire and terminate effective upon the expiration of such 60-day
period.

      (b) Within 10 days after his receipt of the Company's notice of the
exercise of the Purchase Option pursuant to subsection (a) above, the
Participant (or his estate) shall tender to the Company at its principal offices
the certificate or certificates representing the Shares which the Company has
elected to purchase in accordance with the terms of this Agreement, duly
endorsed in blank or with duly endorsed stock powers attached thereto, all in
form suitable for the transfer of such Shares to the Company. Upon its receipt
of such certificate or certificates, the Company shall deliver or mail to the
Participant a check in the amount of the aggregate Option Price therefor.

      (c) After the time at which any Shares are required to be delivered to the
Company for transfer to the Company pursuant to subsection (b) above, the
Company shall not pay any dividend to the Participant on account of such Shares
or permit the Participant to exercise any of the privileges or rights of a
stockholder with respect to such Shares, but shall, in so far as permitted by
law, treat the Company as the owner of such Shares.

      (d) The Option Price may be payable, at the option of the Company, in
cancellation of all or a portion of any outstanding indebtedness of the
Participant to the Company or in cash (by check) or both.

      (e) The Company shall not purchase any fraction of a Share upon exercise
of the Purchase Option, and any fraction of a Share resulting from a computation
made pursuant to Section 2 of this Agreement shall be rounded to the nearest
whole Share (with any one-half Share being rounded upward).


                                       2
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      4. Restrictions on Transfer.
         ------------------------

      The Participant shall not sell, assign, transfer, pledge, hypothecate or
otherwise dispose of, by operation of law or otherwise (collectively
"transfer"):

      (a) any Shares, or any interest therein, that are subject to the Purchase
Option, except that the Participant may transfer such Shares to or for the
benefit of any spouse, child or grandchild, or to a trust for their benefit,
provided that such Shares shall remain subject to this Agreement (including
--------
without limitation the restrictions on transfer set forth in this Section 4, the
Purchase Option and the right of first refusal set forth in Section 5) and such
permitted transferee shall, as a condition to such transfer, deliver to the
Company a written instrument confirming that such transferee shall be bound by
all of the terms and conditions of this Agreement; or

      (b) any Shares, or any interest therein, that are no longer subject to the
Purchase Option, except in accordance with Section 5 below.

      5. Right of First Refusal.
         ----------------------

      (a) If the Participant proposes to transfer any Shares that are no longer
subject to the Purchase Option (either because they are no longer Unvested
Shares or because the Purchase Option expired unexercised), then the Participant
shall first give written notice of the proposed transfer (the "Transfer Notice")
to the Company. The Transfer Notice shall name the proposed transferee and state
the number of such Shares he proposes to transfer the ("Offered Shares"), the
price per share and all other material terms and conditions of the transfer.

      (b) For 30 days following its receipt of such Transfer Notice, the Company
shall have the option to purchase all (but not less than all) of the Offered
Shares at the price and upon the terms set forth in the Transfer Notice. In the
event the Company elects to purchase all of the Offered Shares, it shall give
written notice of such election to the Participant within such 30-day period.
Within 10 days after his receipt of such notice, the Participant shall tender to
the Company at its principal offices the certificate or certificates
representing the Offered Shares, duly endorsed in blank by the Participant or
with duly endorsed stock powers attached thereto, all in form suitable for
transfer of the Offered Shares to the Company. Upon receipt of such certificate
or certificates, the Company shall deliver or mail to the Participant a check in
payment of the purchase price for the Offered Shares; provided that if the terms
of payment set forth in the Transfer Notice were other than cash against


                                       3
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delivery, the Company may pay for the Offered Shares on the same terms and
conditions as were set forth in the Transfer Notice.

      (c) If the Company does not elect to acquire all of the Offered Shares,
the Participant may, within the 30-day period following the expiration of the
option granted to the Company under subsection (b) above, transfer the Offered
Shares to the proposed transferee, provided that such transfer shall not be on
                                   -------- ----
terms and conditions more favorable to the transferee than those contained in
the Transfer Notice. Notwithstanding any of the above, all Offered Shares
transferred pursuant to this Section 5 shall remain subject to this Agreement
(including without limitation the restrictions on transfer set forth in Section
4 and the right of first refusal set forth in this Section 5) and such
transferee shall, as a condition to such transfer, deliver to the Company a
written instrument confirming that such transferee shall be bound by all of the
terms and conditions of this Agreement.

      (d) After the time at which the Offered Shares are required to be
delivered to the Company for transfer to the Company pursuant to subsection (b)
above, the Company shall not pay any dividend to the Participant on account of
such Offered Shares or permit the Participant to exercise any of the privileges
or rights of a stockholder with respect to such Shares, but shall, in so far as
permitted by law, treat the Company as the owner of such Offered Shares.

      (e) The following transactions shall be exempt from the provisions of this
Section 5:

            (1) a transfer of Shares to or for the benefit of any spouse, child
or grandchild of the Participant, or to a trust for their benefit;

            (2) any transfer pursuant to an effective registration statement
filed by the Company under the Securities Act of 1933, as amended (the
"Securities Act"); and

            (3) the sale of all or substantially all of the shares of capital
stock of the Company (including pursuant to a merger or consolidation);

provided, however, that in the case of a transfer pursuant to clause (1) above,
--------  -------
such Shares shall remain subject to this Agreement (including without limitation
the restrictions on transfer set forth in Section 4 and the right of first
refusal set forth in this Section 5) and such transferee shall, as a condition
to such transfer, deliver to the Company a written instrument confirming that
such transferee shall be bound by all of the terms and conditions of this
Agreement.


                                       4
<PAGE>

      (f) The Company may assign its rights to purchase Offered Shares in any
particular transaction under this Section 5 to one or more persons or entities.

      (g) The provisions of this Section 5 shall terminate upon the earlier of
the following events:

            (1) the closing of the sale of shares of Common Stock in an
underwritten public offering pursuant to an effective registration statement
filed by the Company under the Securities Act; or

            (2) the sale of all or substantially all of the capital stock,
assets or business of the Company, by merger, consolidation, sale of assets or
otherwise.

      6. Agreement in Connection with Public Offering.
         --------------------------------------------

      The Participant agrees, in connection with the initial underwritten public
offering of the Company's securities pursuant to a registration statement under
the Securities Act, (i) not to sell, make short sale of, loan, grant any options
for the purchase of, or otherwise dispose of any shares of Common Stock held by
the Participant (other than those shares included in the offering) without the
prior written consent of the Company or the underwriters managing such initial
underwritten public offering of the Company's securities for a period of 180
days from the effective date of such registration statement, and (ii) to execute
any agreement reflecting clause (i) above as may be requested by the Company or
the managing underwriters at the time of such initial offering.

      7. Effect of Prohibited Transfer.
         -----------------------------

      The Company shall not be required (a) to transfer on its books any of the
Shares which shall have been sold or transferred in violation of any of the
provisions set forth in this Agreement, or (b) to treat as owner of such Shares
or to pay dividends to any transferee to whom any such Shares shall have been so
sold or transferred.

      8. Escrow.
         ------

      The Participant shall, upon the execution of this Agreement, execute joint
Escrow Instructions in the form attached to this Agreement as Exhibit A. The
Joint Escrow Instructions shall be delivered to the Clerk of the Company, as
escrow agent thereunder. The Participant shall deliver to such escrow agent a
stock assignment duly endorsed in blank and hereby instructs the Company to
deliver to such escrow agent, on behalf of the Participant, the certificate(s)


                                       5
<PAGE>

evidencing the Shares issued hereunder. Such materials shall be held by such
escrow agent pursuant to the terms of such joint Escrow Instructions.

      9. Restrictive Legend.
         ------------------

      All certificates representing Shares shall have affixed thereto a legend
in substantially the following form, in addition to any other legends that may
be required under federal or state securities laws:

            "The shares of stock represented by this certificate are subject to
            restrictions on transfer and an option to purchase set forth in a
            certain Stock Restriction Agreement between the corporation and the
            registered owner of these shares (or his predecessor in interest),
            and such Agreement is available for inspection without charge at the
            office of the Clerk of the corporation."

            "The shares represented by this certificate have not been registered
            under the Securities Act of 1933, as amended, and may not be sold,
            transferred or otherwise disposed of in the absence of an effective
            registration statement under such Act or an opinion of counsel
            satisfactory to the corporation to the effect that such registration
            is not required."

      10. Provisions of the Plan.
          ----------------------

      This Agreement is subject to the provisions of the Plan, a copy of which
is furnished to the Participant with this Agreement.

      11. Investment Representations.
          --------------------------

      The Participant represents, warrants and covenants as follows:

      (a) The Participant is purchasing the Shares for his own account for
investment only, and not with a view to, or for sale in connection with, any
distribution of the Shares in violation of the Securities Act, or any rule or
regulation under the Securities Act.

      (b) The Participant has had such opportunity as he has deemed adequate to
obtain from representatives of the Company such information as is necessary to
permit him to evaluate the merits and risks of his investment in the Company.


                                       6
<PAGE>

      (c) The Participant has sufficient experience in business, financial and
investment matters to be able to evaluate the risks involved in the purchase of
the Shares and to make an informed investment decision with respect to such
purchase.

      (d) The Participant can afford a complete loss of the value of the Shares
and is able to bear the economic risk of holding such Shares for an indefinite
period.

      (e) The Participant understands that (i) the Shares have not been
registered under the Securities Act and are "restricted securities" within the
meaning of Rule 144 under the Securities Act, (ii) the Shares cannot be sold,
transferred or otherwise disposed of unless they are subsequently registered
under the Securities Act or an exemption from registration is then available;
(iii) in any event, the exemption from registration under Rule 144 will not be
available for at least one year and even then will not be available unless a
public market then exists for the Common Stock, adequate information concerning
the Company is then available to the public, and other terms and conditions of
Rule 144 are complied with; and (iv) there is now no registration statement on
file with the Securities and Exchange Commission with respect to any stock of
the Company and the Company has no obligation or current intention to register
the Shares under the Securities Act.


                                       7
<PAGE>

      12. Withholding Taxes; Section 83(b) Election.
          -----------------------------------------

      (a) The Participant acknowledges and agrees that the Company has the right
to deduct from payments of any kind otherwise due to the Participant any
federal, state or local taxes of any kind required by law to be withheld with
respect to the purchase of the Shares by the Participant or the lapse of the
Purchase Option.

      (b) The Participant acknowledges that he has been informed of the
availability of making an election in accordance with Section 83(b) of the
Internal Revenue Code of 1986, as amended; that such election must be filed with
the Internal Revenue Service within 30 days of the transfer of shares to the
Participant; and that the Participant is solely responsible for making such
election.

      13. Severability.
          ------------

      The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement, and each other provision of this Agreement shall be severable and
enforceable to the extent permitted by law.

      14. Waiver.
          ------

      Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of
Directors of the Company.

      15. Binding Effect.
          --------------

      This Agreement shall be binding upon and inure to the benefit of the
Company and the Participant and their respective heirs, executors,
administrators, legal representatives, successors and assigns, subject to the
restrictions on transfer set forth in Sections 4 and 5 of this Agreement.

      16. Notice.
          ------

      All notices required or permitted hereunder shall be in writing and deemed
effectively given upon personal delivery or five days after deposit in the
United States Post Office, by registered or certified mail, postage prepaid,
addressed to the other party hereto at the address shown beneath his or its
respective signature to this Agreement, or at such other address or addresses as
either party shall designate to the other in accordance with this Section 16.


                                       8
<PAGE>

      17. Pronouns.
          --------

      Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns and pronouns shall include the plural, and vice versa.

      18. Entire Agreement.
          ----------------

      This Agreement and the Plan constitutes the entire agreement between the
parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

      19. Amendment.
          ---------

      This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

      20. Governing Law.
          -------------

      This Agreement shall be construed, interpreted and enforced in accordance
with the internal laws of the State of Delaware without regard to any applicable
conflicts of laws.


                                       9
<PAGE>

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

                                          NETWORK ENGINES, INC.


                                          By: /s/ Lawrence A. Genovesi
                                             ------------------------------
                                          Title:  President, CEO and CTO
                                                 --------------------------


                                          /s/ John Blaeser
                                          ---------------------------------
                                          John Blaeser


                                          Address:


                                          1116 Great Pond Rd.
                                          ---------------------------------

                                          North Andover, MA  01845
                                          ---------------------------------


                                       10
<PAGE>

                                    Exhibit A

                              Network Engines, Inc.

                            Joint Escrow Instructions
                            -------------------------


                                       November 18, 1999


Secretary
Network Engines, Inc.
61 Pleasant Street
Randolph, MA 02368-4137

Dear Secretary:

      As Escrow Agent for Network Engines, Inc., a Delaware corporation (the
"Company"), and the undersigned Participant ("Holder"), you are hereby
authorized and directed to hold the documents delivered to you pursuant to the
terms of that certain Restricted Stock Agreement (the "Agreement") of even date
herewith, to which a copy of these Joint Escrow Instructions is attached, in
accordance with the following instructions:

      1. Holder irrevocably authorizes the Company to deposit with you any
certificates evidencing Shares (as defined in the Agreement) to be held by you
hereunder and any additions and substitutions to said Shares. Holder does hereby
irrevocably constitute and appoint you as his attorney-in-fact and agent for the
term of this escrow to execute with respect to such Shares all documents
necessary or appropriate to make such Shares negotiable and to complete any
transaction herein contemplated. Subject to the provisions of this paragraph 1
and the terms of the Agreement, Holder shall exercise all rights and privileges
of a stockholder of the Company while the Shares are held by you.

      2. Upon any purchase by the Company of the Shares pursuant to the
Agreement, the Company shall give to Holder and you a written notice specifying
the purchase price for the Shares, as determined pursuant to the Agreement, and
the time for a closing hereunder (the "Closing") at the principal


                                       11
<PAGE>

office of the Company. Holder and the Company hereby irrevocably authorize and
direct you to close the transaction contemplated by such notice in accordance
with the terms of said notice.

      3. At the Closing, you are directed (a) to date the stock assignment form
or forms necessary for the transfer of the Shares, (b) to fill in on such form
or forms the number of Shares being transferred, and (c) to deliver same,
together with the certificate or certificates evidencing the Shares to be
transferred, to the Company against the simultaneous delivery to you of the
purchase price for the Shares being purchased pursuant to the Agreement.

      4. The Holder shall have the right to withdraw from this escrow any Shares
as to which the Purchase Option (as defined in the Agreement) has terminated or
expired.

      5. Your duties hereunder may be altered, amended, modified or revoked only
by a writing signed by all of the parties hereto.

      6. You shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by you to be
genuine and to have been signed or presented by the proper party or parties. You
shall not be personally liable for any act you may do or omit to do hereunder as
Escrow Agent or as attorney-in-fact of Holder while acting in good faith and in
the exercise of your own good judgment, and any act done or omitted by you
pursuant to the advice of your own attorneys shall be conclusive evidence of
such good faith.

      7. You are hereby expressly authorized to disregard any and all warnings
given by any of the parties hereto or by any other person or Company, excepting
only orders or process of courts of law, and are hereby expressly authorized to
comply with and obey orders, judgments or decrees of any court. In case you obey
or comply with any such order, judgment or decree of any court, you shall not be
liable to any of the parties hereto or to any other person, firm or Company by
reason of such compliance, notwithstanding any such order, judgment or decree
being subsequently reversed, modified, annulled, set aside, vacated or found to
have been entered without jurisdiction.

      8. You shall not be liable in any respect on account of the identity,
authority or rights of the parties executing or delivering or purporting to
execute or deliver the Agreement or any documents or papers deposited or called
for hereunder.


                                       12
<PAGE>

      9. You shall be entitled to employ such legal counsel and other experts as
you may deem necessary properly to advise you in connection with your
obligations hereunder and may rely upon the advice of such counsel.

      10. Your responsibilities as Escrow Agent hereunder shall terminate if you
shall cease to be Clerk of the Company or if you shall resign by written notice
to each party. In the event of any such termination, the Company shall appoint
any officer of the Company as successor Escrow Agent.

      11. If you reasonably require other or further instruments in connection
with these Joint Escrow Instructions or obligations in respect hereto, the
necessary parties hereto shall join in furnishing such instruments.

      12. It is understood and agreed that should any dispute arise with respect
to the delivery and/or ownership or right of possession of the securities held
by you hereunder, you are authorized and directed to retain in your possession
without liability to anyone all or any part of said securities until such
dispute shall have been settled either by mutual written agreement of the
parties concerned or by a final order, decree or judgment of a court of
competent jurisdiction after the time for appeal has expired and no appeal has
been perfected, but you shall be under no duty whatsoever to institute or defend
any such proceedings.

      13. Any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given upon personal delivery or upon deposit in
the United States Post Office, by registered or certified mail with postage and
fees prepaid, addressed to each of the other parties thereunto entitled at the
following addresses, or at such other addresses as a party may designate by ten
days' advance written notice to each of the other parties hereto.

            COMPANY:                    Network Engines, Inc.
                                        61 Pleasant Street
                                        Randolph, MA 02368-4137

            HOLDER:                     Notices to Holder shall be sent to the
                                        address set forth below Holder's
                                        signature below.

            ESCROW AGENT:               Lawrence Genovesi
                                        -------------------
                                        61 Pleasant St.
                                        -------------------
                                        Randolph, MA 02368
                                        -------------------

                                       13
<PAGE>

      14. By signing these Joint Escrow Instructions, you become a party hereto
only for the purpose of said joint Escrow Instructions, and you do not become a
party to the Agreement.

      15. This instrument shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

                                          Very truly yours,

                                          Network Engines, Inc.


                                          By:  /s/  Lawrence A. Genovesi
                                             --------------------------------
                                          Title:  President, CEO and CTO
                                                 ----------------------------


                                          HOLDER:


                                            /s/ J.A. Blaeser
                                          -----------------------------------
                                                      (Signature)


                                          John Blaeser
                                          -----------------------------------
                                                      Print Name


                                          Address:


                                          1116 Great Pond Rd.
                                          -----------------------------------

                                          North Andover, MA  01845
                                          -----------------------------------

                                          Date Signed:  11/29/99
                                                      -----------------------

ESCROW AGENT:


/s/  Lawrence A. Genovesi
-------------------------------


                                       14
<PAGE>

                                    (STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE)


      FOR VALUE RECEIVED, I hereby sell, assign and transfer unto Network
Engines, Inc. ____________________ (          ) shares of Common Stock, $.01 par
value per share, of Network Engines, Inc. (the "Corporation") standing in my
name on the books of said Corporation represented by Certificate(s) Number
___________ herewith, and do hereby irrevocably constitute and appoint Lawrence
A. Genovesi attorney to transfer the said stock on the books of the within named
Corporation with full power of substitution in the premises.


                                               Dated: 11/29/99
                                                      -----------------------


                                               /s/ J. A. Blaeser
                                               ------------------------------
                                               John Blaeser

IN PRESENCE OF

/s/ Ellen C. Goff
-----------------------------

NOTICE: The signature(s) to this assignment must correspond with the name as
written upon the face of the certificate, in every particular, without
alteration, enlargement, or any change whatever and must be guaranteed by a
commercial bank, trust company or member firm of the Boston, New York or Midwest
Stock Exchange.