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                                                                   EXHIBIT 10.40

[LOGO OF DOVEBID]


                               February 8, 2000

     Timothy J. Reed
     38 Clipper Street
     San Francisco, CA 94114

     Dear Tim:

     On behalf of DoveBid, Inc. ("DoveBid"), I am pleased to offer you a full-
     time position as Vice President of Business Development reporting to me,
     effective on March 7, 2000. In this position, you will be responsible for
     DoveBid's alliances, partnerships and mergers and acquisitions (with
     exception of acquisitions of capital asset dealers and auction houses).

     Your annual salary will be $180,000 and will be paid in accordance with
     DoveBid's normal payroll procedures. Also, you will be eligible for a year-
     end bonus up to 33% of your base salary, determined by DoveBid in its
     discretion in January, and payable in or about February. All payments to
     you will be subject to legally required withholding(s). It is DoveBid's
     policy to review compensation levels periodically.

     Subject to approval by the Board of Directors of the Company, your
     compensation package also will include an incentive stock option under the
     terms of DoveBid's 1999 Stock Option Plan for 700,000 shares of common
     stock at the fair market value of the Company's Common Stock, as determined
     by the Board of Directors on the date the Board approves such grant. Your
     stock options will be subject to the terms of DoveBid's 1999 Stock Option
     Plan (the Plan includes vesting restrictions, restrictions on exercise and
     restrictions on transfer of shares) and will be conditioned on your
     execution of a Plan Agreement related to your options.

     In addition to your base salary, you will be eligible to participate in the
     employee benefits generally made available to our full-time employees, as
     may be modified in DoveBid's discretion. At the present time, those
     benefits include a "cafeteria" style benefits plan, health and dental
     insurance, life insurance, vacation and sick pay, and a 401k plan which you
     will become eligible for in accordance with the applicable benefit plans
     and DoveBid's written policies.

     Your employment with DoveBid will be "at will"; in other words, either you
     or DoveBid will have the right to terminate your employment with DoveBid at
     any time with or without cause.
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     As a condition of your employment, you will be expected to comply with all
     DoveBid's policies and procedure, as may be modified from time to time in
     DoveBid's discretion (including our policies protecting other employees
     against discrimination and sexual harassment). Please refer to DoveBid's
     Employee Handbook for details regarding those policies and procedures.
     Also, you will need to execute DoveBid's Employee Confidentiality And
     Proprietary Information Agreement.

     Please note that because of employer regulations adopted in the Immigration
     Reform and Control Act of 1986, within three (3) business days of starting
     your new position you will need to present documentation demonstrating that
     you have authorization to work in the United States. If you have question,
     about this requirement, which applies to U.S. citizens and non-U.S.
     citizens alike, you may contact our personnel office.

     This offer will remain open until February 14, 2000. If you decide to
     accept our offer, and I hope you will, please sign the enclosed copy of
     this letter in the space indicated and return it to me. Your signature will
     acknowledge that you have read and understood and agreed to the terms and
     conditions of this offer letter and the attached documents, if any. Should
     you have anything else that you wish to discuss, please do not hesitate to
     call me.

     We look forward to having you join our team!

     Sincerely,


     /s/ Jeff Crowe
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     Jeff Crowe
     President & COO

     I understand and agree to the above terms.


     /s/ Timothy J. Reed
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     Timothy J. Reed