Document:

<PAGE>   1
                                                                   EXHIBIT 10.20

                           FIRST AMENDMENT TO AMENDED
                      AND RESTATED SUBORDINATION AGREEMENT

        THIS FIRST AMENDMENT TO AMENDED AND RESTATED SUBORDINATION AGREEMENT
(this "Amendment"), dated as of December 15, 1999, is entered into by and
between CONGRESS FINANCIAL CORPORATION (WESTERN), a California corporation
("Senior Lender"), and KRAUSE'S FURNITURE, INC., a Delaware corporation
("Subordinating Lender").

                                     RECITALS

        A. Subordinating Lender and Senior Lender have previously entered into
that certain Amended and Restated Subordination Agreement dated as of August 26,
1996 (the "Subordination Agreement"). Terms used herein without definition shall
have the meanings ascribed to them in the Subordination Agreement.

        B. Subordinating Lender and Borrower have informed Senior Lender that
they intend to amend, restate and replace all existing Junior Debt Documents
with a new promissory note. In accordance with the terms of the Subordination
Agreement, Subordinating Lender and Borrower hereby requests that Senior Lender
(i) consent to the issuance of such new promissory note to replace the existing
Junior Debt Documents and (ii) amend the Subordination Agreement to reflect
certain terms of such new promissory note.

        C. Senior Lender is willing to agree to give such consent and make such
amendments to the Subordination Agreement under the terms and conditions set
forth in this Amendment. Subordinating Lender is entering into this Amendment
with the understanding and agreement that none of Senior Lender's rights or
remedies as set forth in the Subordination Agreement is being waived or modified
by the terms of this Amendment.

        NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

        1.     Amendments to Subordination Agreement.

               (a) The definition of "Junior Debt" set forth in Section 1 of the
        Subordination Agreement is hereby amended and restated in its entirety
        to read as follows:

                      "'Junior Debt' means all present and future indebtedness
               and other obligations (direct and indirect) owing by Borrower to
               Subordinating Lender including, but not limited to, indebtedness
               owed under the Junior Debt Documents."

<PAGE>   2

               (b) The definition of "Junior Debt Documents" set forth in
        Section 1 of the Subordination Agreement is hereby amended and restated
        in its entirety to read as follows:

                      "`Junior Debt Documents' means all instruments and
               agreements evidencing the Junior Debt, including, but not limited
               to, that certain Subordinated Promissory Note, dated December 15,
               1999 in the original principal amount of Forty One Million One
               Hundred Forty One Thousand Eight Hundred Thirty Five Dollars
               ($41,141,835) executed by Borrower to the order of Subordinating
               Lender, a copy of which is attached hereto as Exhibit A and
               incorporated herein by this reference."

               (c) Section 3(b) of the Subordination Agreement (entitled
        "Payments to Subordinating Lender") is hereby amended and restated in
        its entirety to read as follows:

                      "b. Payments to Subordinating Lender. If no default or
               event of default by Borrower under any present or future
               instrument or agreement (including the Senior Loan Agreement)
               between Borrower and Senior Lender shall have occurred, Borrower
               may make the following payments against the Junior Debt:

                             (i) quarterly payments of interest at a rate per
                      annum equal to one percent (1.0%) in excess of the rate
                      announced publicly from time to time by Bank of America
                      National Trust and Savings Association at its San
                      Francisco executive offices as its "prime rate", but in
                      any event not to exceed a maximum rate of ten percent
                      (10%) per annum; and

                             (ii) semi-annual payments of principal, in an
                      amount not to exceed fifty percent (50%) of Excess Cash
                      Flow for the applicable semi-annual period, if any (for
                      the purposes of this Section 3(b)(ii), `Excess Cash Flow'
                      shall mean, for any applicable semi-annual period, net
                      income after taxes of Borrower, exclusive of extraordinary
                      gains, plus depreciation and any other non-cash items to
                      the extent deducted from the revenues of Borrower in the
                      calculation of net income or loss, and less any capital
                      expenditures that are actually made and not financed
                      during such period); provided however, that (A) principal
                      payments shall not be permitted, unless, notwithstanding
                      the availability of Excess Cash Flow, after giving effect
                      to such principal payment, Borrower has a minimum of One
                      Million Dollars ($1,000,000) of Excess Availability (as
                      defined under the Senior Loan Agreement) as of the last
                      day of the applicable semi-annual period and (B) Borrower
                      shall only be permitted to pay the semi-annual principal
                      payments upon receipt and review by Lender of Borrower's
                      financial statements for the semi-annual period to which
                      the requested payment relates, which financial statements
                      shall be prepared in accordance with GAAP consistently
                      applied subject to normal year-end audit adjustments and
                      shall show sufficient Excess Cash Flow to permit the
                      principal payment and the required minimum Excess
                      Availability;

                                       2
<PAGE>   3

               provided further however, that after giving effect to any such
               payment to Subordinating Lender, no default or event of default
               by Borrower under any present or future instrument or agreement
               (including the Senior Loan Agreement between Borrower and Senior
               Lender) shall have occurred and prior to such payment, Borrower
               and Subordinating Lender shall have provided notice to Senior
               Lender of such intended payment or any demand for such payment.
               Except as provided in this Agreement, Borrower and Subordinating
               Lender agree and (Subordinating Lender acknowledges such
               agreement) that Borrower shall neither: (i) make any payments to
               Subordinating Lender in respect of the Junior Debt; nor (ii)
               without Senior Lender's prior written consent, execute or deliver
               any negotiable instruments as evidence of the Junior Debt."

               (d) The addresses set forth in Section 12 of the Loan Agreement
        to which notices are to be delivered to Senior Lender are hereby changed
        to the following:

               Senior Lender:       CONGRESS FINANCIAL CORPORATION (WESTERN)
                                    251 South Lake Avenue, Suite 900
                                    Pasadena, California  91101
                                    Attention: Account Executive

               With a copy to:      KELLEY DRYE & WARREN LLP
                                    777 South Figueroa Street, Suite 2700
                                    Los Angeles, California  90017
                                    Attention:  Marshall C. Stoddard, Jr., Esq.

        2. New Exhibit A. The existing Exhibit A to the Subordination Agreement
is hereby replaced in its entirety with the Exhibit A attached hereto.

        3. Consent to New Junior Debt Documents. Subject to the terms and
conditions set forth herein, Senior Lender hereby consents to the issuance of a
new promissory note by Borrower to the order of Subordinating Lender to replace
all existing Junior Debt Documents; provided that, such new promissory note
shall be in form and substance satisfactory to Senior Lender.

        4. Effectiveness of this Amendment. Senior Lender must have received the
following items, in form and substance acceptable to Senior Lender, or evidence
of the occurrence thereof, before this Amendment is effective.

               (a) Amendment. This Amendment fully executed in a sufficient
number of counterparts for distribution to Senior Lender and Subordinating
Lender.

               (b) Authorizations. Evidence that the execution, delivery and
performance by Subordinating Lender of this Amendment and any instrument or
agreement required under this Amendment have been duly authorized.

               (c) Representations and Warranties. The representations and
warranties of Subordinating Lender set forth herein must be true and correct.

                                       3
<PAGE>   4

               (d) Eighth Amendment to Senior Loan Agreement. The Eighth
Amendment to the Senior Loan Agreement duly executed by Borrower.

               (e) Other Required Documentation. All other documents and legal
matters in connection with the transactions contemplated by this Amendment shall
have been delivered or executed or recorded and shall be in form and substance
satisfactory to Senior Lender.

        5. Representations and Warranties. Subordinating Lender and Borrower
represent and warrant (jointly and severally) to Senior Lender that:

               (a) Amount of Junior Debt. As of the date of this Amendment, the
aggregate outstanding principal balance (principal plus interest) of this Junior
Debt is Forty One Million One Hundred Forty One Thousand Eight Hundred Thirty
Five Dollars ($41,141,835).

               (b) No Default. After giving effect to the transactions
contemplated by this Amendment, Borrower is not in default under any Junior Debt
Document.

        6. Choice of Law. The validity of this Amendment, its construction,
interpretation and enforcement, and the rights of the parties hereunder, shall
be determined under, governed by, and construed in accordance with the laws of
the State of California governing contracts wholly to be performed in that
State.

        7. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which
when so executed and delivered, shall be deemed an original, and all of which,
when taken together, shall constitute but one and the same instrument.

        8. Due Execution. The execution, delivery and performance of this
Amendment are within the powers of the Subordinating Lender, have been duly
authorized by all necessary corporate action, have received all necessary
governmental approval, if any, and do not contravene any law or any contractual
restrictions binding on Subordinating Lender.

        9. Otherwise Not Affected. In the event of any conflict or inconsistency
between the Subordination Agreement and the provisions of this Amendment, the
provisions of this Amendment shall govern. Except to the extent set forth
herein, the Subordination Agreement shall remain in full force and effect.

        10. Ratification. Subordinating Lender hereby restates, ratifies and
reaffirms each and every term and condition set forth in the Subordination
Agreement, as amended hereby, effective as of the date hereof.

        11. Estoppel. To induce Senior Lender to enter into this Amendment and
to continue to make advances to Borrower under the Senior Loan Agreement,
Subordinating Lender hereby acknowledges and agrees that, after giving effect to
this Amendment, as of the date hereof, there exists no default by Subordinating
Lender and no right of offset, defense, counterclaim or objection in favor of
Subordinating Lender as against Senior Lender with respect to the obligations of
Subordinating Lender under the Subordination Agreement.

                                       4
<PAGE>   5

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

                                      KRAUSE'S FURNITURE, INC.,
                                      a Delaware corporation

                                      By:_____________________________
                                      Name:___________________________
                                      Title:__________________________

                                      CONGRESS FINANCIAL
                                      CORPORATION (WESTERN),
                                      a California corporation

                                      By:_____________________________
                                      Name:___________________________
                                      Title:__________________________

                                       5
<PAGE>   6

                                 ACKNOWLEDGMENT

        The undersigned Borrower hereby approves of, and agrees and consents to
the foregoing Amendment. Borrower further agrees to be bound by the
Subordination Agreement, as amended by such Amendment. Although Senior Lender
and Subordinating Lender have informed Borrower of such Amendment and the
matters set forth above, and Borrower has acknowledged the same, Borrower
understands and agrees that neither Senior Lender nor Subordinating Lender has a
duty under the Subordination Agreement, the Senior Loan Agreement or any other
agreement with Borrower, to so notify Borrower or to seek such an
acknowledgment, for such Amendment to be effective, and nothing contained herein
is intended to or shall create such a duty as to any amendments hereafter.

Dated:  December 15, 1999                   KRAUSE'S CUSTOM CRAFTED
                                            FURNITURE CORP.,
                                                  a California corporation

                                                By:_____________________________
                                                Name:___________________________
                                                Title:__________________________

                                       6

<PAGE>   7
                                                                       EXHIBIT A

                          SUBORDINATED PROMISSORY NOTE

$41,141,835                                                    December 15, 1999
                                                                Brea, California

     FOR VALUE RECEIVED, KRAUSE'S CUSTOM CRAFTED FURNITURE CORP., a California
corporation (the "Borrower"), promises to pay to the order of KRAUSE'S
FURNITURE, INC., a Delaware corporation (the "Lender"), at 200 N. Berry St.,
Brea, California 92821 (or at such other place as the Lender may designate in
writing), on the date thirteen (13) months after written demand therefor, or, if
no demand is made before November 30, 2004, then on December 31, 2005 (which
date may be extended from time to time by mutual written agreement of Borrower
and Lender) the principal sum of forty-one million, one hundred forty-one
thousand, eight hundred thirty-five dollars ($41,141,835), together with
interest on the outstanding unpaid principal amount from the date hereof to
maturity at a rate per annum equal to one percentage point in excess of the rate
announced publicly from time to time by Bank of America National Trust and
Savings Association at its San Francisco executive offices as its "prime rate,"
up to a maximum rate of 10% per annum.

     It is the intent of Borrower and Lender that this Note shall supercede and
replace the outstanding notes of Borrower listed on Schedule A hereto, that this
Note include in its principal amount the principal and accrued interest on each
of such notes, and that such notes shall be canceled on the execution and
delivery of this Note.

     If interest accruing in any year remains unpaid on December 31 of the same
year, then the aggregate unpaid interest of that year shall be added to the
principal amount of this Note on the following January 1. All payments on this
Note shall be applied first in payment of accrued and unpaid interest and any
remainder in payment of principal.

     Principal and interest shall be payable in lawful money of the United
States of America.

     If any default occurs in any payment due under this Note, Borrower and all
guarantors and endorsers hereof, and their successors and assigns, promise to
pay all costs and expenses, including attorneys' fees, incurred by each holder
hereof in collecting or attempting to collect the indebtedness under this Note,
whether or not any action or proceeding is commenced, and hereby waive the right
to plead any and all statutes of limitation as a defense to a demand hereunder
to the full extent permitted by law.

     Borrower, for itself, its representatives, successors and assigns, waives
presentment, protest and notice of dishonor and waives any right to be released
by reason of any extension of time or change in terms of payment. Any
forbearance by the holder hereof in exercising any right or remedy hereunder, or
otherwise afforded by applicable law, shall not be a waiver or preclude the
exercise of any such right or remedy. The
<PAGE>   8
holder's subsequent acceptance of any payment hereunder shall not be deemed a
waiver of any default by Borrower. No waiver of the holder of any right,
payment or charge hereunder shall be effective unless in writing.

     It is the intent of Borrower and holder to conform strictly to the usury
laws now or hereafter in force in the State of California. Any interest payable
under this Note shall be subject to reduction to the amount not in excess of
the maximum non-usurious amount allowed under the laws of the State of
California as now or hereafter construed by the courts having jurisdiction over
such matters. The aggregate of all interest contracted for, chargeable or
receivable under this Note shall under no circumstances exceed the maximum
legal rate upon the balance of this Note remaining unpaid from time to time. If
such interest does exceed the maximum legal rate, it shall be cancelled
automatically and if theretofore paid, credited on the principal amount of this
Note or, if a portion of this Note has been prepaid, then such excess shall be
rebated to Borrower.

     Notwithstanding anything contained herein to the contrary, this Note and
the principal and interest payments and other obligations of Borrower due
hereunder are subject to that certain Amended and Restated Subordination
Agreement dated as of August 16, 1996, between Lender and Congress Financial
Corporation (Western), as the foregoing may be amended or modified from time to
time. Borrower shall not prepay all or any portion of the principal amount of
this note without the prior written consent of Senior Lender.

     Subject to any limitations imposed by Senior Lender, Borrower may prepay
this Note in whole or in part without premium or penalty at any time;.

     In the event action is taken to collect amounts due under this Note, the
holder shall be entitled to reasonable attorneys' fees, costs of court and all
other expenses of collection incurred by holder.

     This Note is not intended to be a negotiable instrument and may not be
transferred without the written consent of the Borrower.

     This Note shall be construed in accordance with the laws of the State of
California.

                    "Borrower"

                    KRAUSE'S CUSTOM CRAFTED FURNITURE CORP.

                    By: __________________________________
                        Robert A. Burton
                        Executive Vice President and
                        Chief Financial Officer

                                       2
<PAGE>   9
                                   SCHEDULE A

<TABLE>
<CAPTION>

                                                               Principal
                                   Principal      Accrued     Plus Accrued
            Date                    Amount        Interest      Interest             Due Date
<S>       <C>                     <C>            <C>         <C>               <C>

1.        January 20, 1995         2,700,000      1,306,153    4,006,153
2.        January 20, 1995         1,000,000        483,760    1,483,760        December 31, 1998
3.        September 22, 1995         500,000        206,983      706,983        January 18, 1998
4.        May 3, 1996                500,000        176,315      676,315        January 18, 1998
5.        May 22, 1996               750,000        260,666    1,010,666        January 18, 1998
6.        August 26, 1996          5,000,000      1,609,555    6,609,555        January 20, 2000
7.        September 27, 1996       1,000,000        313,363    1,313,363        January 20, 2000
8.        October 18, 1996         1,500,000        461,630    1,961,630        January 20, 2000
9.        November 26, 1996        2,500,000        743,339    3,243,339        January 20, 2000
10.       January 10, 1997         1,500,000        427,973    1,927,973        January 20, 2000
11.       April 3, 1997              500,000        124,801      624,801        January 20, 2000
12.       May 14, 1997               200,000         47,786      247,786        January 20, 2000
13.       August 11,1997             100,000         21.577      121,577        January 20, 2000
14.       August 15, 1997          3,000,000        644,178    3,644,178        January 20, 2000
15.       December 31, 1997        3,500,000        625,829    4,125,829        January 20, 2000
16.       April 3, 1998            6,189,617      1,009,416    7,199,033        January 20, 2000
17.       April 7, 1998            1,801,800        291,867    2,093,667        January 20, 2000
18.       July 16, 1998              128,000         17,227      145,227        January 20, 2000
                                  ----------     ----------   ----------
                                  32,369,417      8,772,418   41,141,835

</TABLE>

                                       3<PAGE>

                                                                   Exhibit 10.25

                                 Equinix, Inc.

                           2000 Director Option Plan

                           (As Adopted May 26, 2000)
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                      Page
<S>                                                                   <C>
ARTICLE 1.  INTRODUCTION............................................     1

ARTICLE 2.  ADMINISTRATION..........................................     1
     2.1  Committee Composition.....................................     1
     2.2  Committee Responsibilities................................     1

ARTICLE 3.  SHARES AVAILABLE FOR GRANTS.............................     1
     3.1  Basic Limitation..........................................     1
     3.2  Additional Shares.........................................     2

ARTICLE 4.  AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS.......     2
     4.1  Eligibility...............................................     2
     4.2  Initial Grants............................................     2
     4.3  Annual Grants.............................................     2
     4.4  Accelerated Exercisability................................     2
     4.5  Exercise Price............................................     2
     4.6  Term......................................................     2
     4.7  Affiliates of Non-Employee Directors......................     3
     4.8  Stock Option Agreement....................................     3

ARTICLE 5.  PAYMENT FOR OPTION SHARES...............................     3
     5.1  Cash......................................................     3
     5.2  Surrender of Stock........................................     3
     5.3  Exercise/Sale.............................................     3
     5.4  Other Forms of Payment....................................     3

ARTICLE 6.  PROTECTION AGAINST DILUTION.............................     3
     6.1  Adjustments...............................................     3
     6.2  Dissolution or Liquidation................................     4
     6.3  Reorganizations...........................................     4

ARTICLE 7.  LIMITATION ON RIGHTS....................................     4
     7.1  Stockholders' Rights......................................     4
     7.2  Regulatory Requirements...................................     4
     7.3  Withholding Taxes.........................................     4

ARTICLE 8.  FUTURE OF THE PLAN......................................     5
     8.1  Term of the Plan..........................................     5
     8.2  Amendment or Termination..................................     5

ARTICLE 9.  DEFINITIONS.............................................     5
</TABLE>

                                       i
<PAGE>

                                 Equinix, Inc.

                           2000 Director Option Plan

     ARTICLE 1.   INTRODUCTION.

          The Plan was adopted by the Board to be effective at the effectiveness
of the IPO.  The purpose of the Plan is to promote the long-term success of the
Company and the creation of stockholder value by (a) encouraging Non-Employee
Directors to focus on critical long-range objectives, (b) encouraging the
attraction and retention of Non-Employee Directors with exceptional
qualifications and (c) linking Non-Employee Directors directly to stockholder
interests through increased stock ownership.  The Plan seeks to achieve this
purpose by providing for automatic and non-discretionary grants of Options to
Non-Employee Directors.

          The Plan shall be governed by, and construed in accordance with, the
laws of the State of Delaware (except their choice-of-law provisions).

     ARTICLE 2.   ADMINISTRATION.

     2.1  Committee Composition.  The Plan shall be administered by the
Committee.  The Committee shall consist exclusively of two or more directors of
the Company, who shall be appointed by the Board.  In addition, the composition
of the Committee shall satisfy such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to
qualify for exemption under Rule 16b-3 (or its successor) under the Exchange
Act.

     2.2  Committee Responsibilities.  The Committee shall interpret the Plan
and make all decisions relating to the operation of the Plan.  The Committee may
adopt such rules or guidelines as it deems appropriate to implement the Plan.
The Committee's determinations under the Plan shall be final and binding on all
persons.

     ARTICLE 3.   SHARES AVAILABLE FOR GRANTS.

     3.1  Basic Limitation.  shares of Common Stock issued pursuant to the Plan
may be authorized but unissued shares or treasury shares.  The aggregate number
of shares of Common Stock subject to Options granted under the Plan shall not
exceed (a) 200,000 plus (b) the additional shares of Common Stock described in
Section 3.2.  The limitations of this Section 3.1 shall be subject to adjustment
pursuant to Article 6.

     3.2  Additional Shares.  If Options are forfeited or terminate for any
other reason before being exercised, then the shares of Common Stock subject to
such Options shall again become available for the grant of Options under the
Plan.  On January 1 of each year, commencing with January 1, 2001 the aggregate
number of shares of Stock available for purchase during the life of the Plan
shall automatically be increased by 50,000 shares (subject to adjustment
pursuant to Article 6).
<PAGE>

     ARTICLE 4.   AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS.

     4.1  Eligibility.  Only Non-Employee Directors shall be eligible for the
grant of Options under the Plan.

     4.2  Initial Grants.  Each Non-Employee Director who first becomes a member
of the Board after the date of the IPO shall receive a one-time grant of an
Option covering 25,000 shares of Common Stock (subject to adjustment under
Article 6).  Such Option shall be granted on the date when such Non-Employee
Director first joins the Board and shall become exercisable for 25% of the
shares upon the optionee's completion of 12 months of service from the date of
grant and as to the balance of the shares in annual installments over the three-
year period thereafter.  A Non-Employee Director who previously was an Employee
or who previously received a stock option grant in the same year as the IPO
shall not receive a grant under this Section 4.2.

     4.3  Annual Grants.  Upon the conclusion of each regular annual meeting of
the Company's stockholders held in the year 2001 or thereafter, each Non-
Employee Director who will continue serving as a member of the Board thereafter
shall receive an Option covering 10,000 shares of Common Stock (subject to
adjustment under Article 6), except that such Option shall not be granted in the
calendar year in which the same Non-Employee Director received the Option
described in Section 4.2.  Options granted under this Section 4.3 shall become
exercisable in full on the first anniversary of the date of grant.  A Non-
Employee Director who previously was an Employee shall be eligible to receive
grants under this Section 4.3.

     4.4  Accelerated Exercisability.  All Options granted to a Non-Employee
Director under this Article 4 shall also become exercisable in full in the event
of a Change in Control with respect to the Company.

     4.5  Exercise Price.  The Exercise Price under all Options granted to a
Non-Employee Director under this Article 4 shall be equal to 100% of the Fair
Market Value of a Common Share on the date of grant, payable in one of the forms
described in Article 5.

     4.6  Term.  All Options granted to a Non-Employee Director under this
Article 4 shall terminate on the earliest of (a) the 10th anniversary of the
date of grant, or (b) the date 12 months after the termination of such Non-
Employee Director's service for any reason.

     4.7  Affiliates of Non-Employee Directors.  The Committee may provide that
the Options that otherwise would be granted to a Non-Employee Director under
this Article 4 shall instead be granted to an affiliate of such Non-Employee
Director.  Such affiliate shall then be deemed to be a Non-Employee Director for
purposes of the Plan, provided that the service-related vesting and termination
provisions pertaining to the Options shall be applied with regard to the service
of the Non-Employee Director.

     4.8  Stock Option Agreement.  Each grant of an Option under the Plan shall
be evidenced by a Stock Option Agreement between the Optionee and the Company.
Such Option shall be subject to all applicable terms of the Plan and may be
subject to any other terms that are not inconsistent with the Plan.

                                       2
<PAGE>

     ARTICLE 5.   PAYMENT FOR OPTION SHARES.

     5.1  Cash.  All or any part of the Exercise Price may be paid in cash or
cash equivalents.

     5.2  Surrender of Stock.  All or any part of the Exercise Price may be paid
by surrendering, or attesting to the ownership of, shares of Common Stock that
are already owned by the Optionee.  Such shares of Common Stock shall be valued
at their Fair Market Value on the date when the new shares of Common Stock are
purchased under the Plan.  The Optionee shall not surrender, or attest to the
ownership of, shares of Common Stock in payment of the Exercise Price if such
action would cause the Company to recognize compensation expense (or additional
compensation expense) with respect to the Option for financial reporting
purposes.

     5.3  Exercise/Sale.  All or any part of the Exercise Price and any
withholding taxes may be paid by delivering (on a form prescribed by the
Company) an irrevocable direction to a securities broker approved by the Company
to sell all or part of the shares of Common Stock being purchased under the Plan
and to deliver all or part of the sales proceeds to the Company.

     5.4  Other Forms of Payment.  At the sole discretion of the Committee, all
or any part of the Exercise Price and any withholding taxes may be paid in any
other form that is consistent with applicable laws, regulations and rules.

     ARTICLE 6.   PROTECTION AGAINST DILUTION.

     6.1  Adjustments.  In the event of a subdivision of the outstanding shares
of Common Stock, a declaration of a dividend payable in shares of Common Stock,
a declaration of a dividend payable in a form other than shares of Common Stock
in an amount that has a material effect on the price of shares of Common Stock,
a combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise) into a lesser number of shares of Common Stock, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make
such adjustments as it, in its sole discretion, deems appropriate in one or more
of (a) the number of shares of Common Stock available for future grants under
Article 3, (b) the number of Options to be granted to Non-Employee Directors
under Article 4, (c) the number of shares of Common Stock covered by each
outstanding Option or (d) the Exercise Price under each outstanding Option.
Except as provided in this Article 6, an Optionee shall have no rights by reason
of any issue by the Company of stock of any class or securities convertible into
stock of any class, any subdivision or consolidation of shares of stock of any
class, the payment of any stock dividend or any other increase or decrease in
the number of shares of stock of any class.

     6.2  Dissolution or Liquidation.  To the extent not previously exercised,
Options shall terminate immediately prior to the dissolution or liquidation of
the Company.

     6.3  Reorganizations.  In the event that the Company is a party to a merger
or other reorganization, outstanding Options shall be subject to the agreement
of merger or reorganization.  Such agreement shall provide for (a) the
continuation of the outstanding Options by the Company, if the Company is a
surviving corporation, (b) the assumption of the outstanding Options by the
surviving corporation or its parent or subsidiary, (c) the substitution

                                       3
<PAGE>

by the surviving corporation or its parent or subsidiary of its own options for
the outstanding Options, or (d) settlement of the full value of the outstanding
Options in cash or cash equivalents followed by cancellation of such Options.

     ARTICLE 7.   LIMITATION ON RIGHTS.

     7.1  Stockholders' Rights.  An Optionee shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any shares of
Common Stock covered by his or her Option prior to the time he or she becomes
entitled to receive such shares of Common Stock by filing a notice of exercise
and paying the Exercise Price.  No adjustment shall be made for cash dividends
or other rights for which the record date is prior to such time, except as
expressly provided in the Plan.

     7.2  Regulatory Requirements.  Any other provision of the Plan
notwithstanding, the obligation of the Company to issue shares of Common Stock
under the Plan shall be subject to all applicable laws, rules and regulations
and such approval by any regulatory body as may be required.  The Company
reserves the right to restrict, in whole or in part, the delivery of shares of
Common Stock pursuant to any Option prior to the satisfaction of all legal
requirements relating to the issuance of such shares of Common Stock, to their
registration, qualification or listing or to an exemption from registration,
qualification or listing.

     7.3  Withholding Taxes.  To the extent required by applicable federal,
state, local or foreign law, an Optionee or his or her successor shall make
arrangements satisfactory to the Company for the satisfaction of any withholding
tax obligations that arise in connection with the Plan.  The Company shall not
be required to issue any shares of Common Stock or make any cash payment under
the Plan until such obligations are satisfied.

     ARTICLE 8.   FUTURE OF THE PLAN.

     8.1  Term of the Plan.  The Plan, as set forth herein, shall become
effective on effectiveness of the IPO.  The Plan shall remain in effect until it
is terminated under Section 8.2.

     8.2  Amendment or Termination.  The Board may, at any time and for any
reason, amend or terminate the Plan.  An amendment of the Plan shall be subject
to the approval of the Company's stockholders only to the extent required by
applicable laws, regulations or rules.  No Options shall be granted under the
Plan after the termination thereof.  The termination of the Plan, or any
amendment thereof, shall not affect any Option previously granted under the
Plan.

     ARTICLE 9.   DEFINITIONS.

     9.1  "Board" means the Company's Board of Directors, as constituted from
time to time.

     9.2  "Change in Control" means:

          (a) The consummation of a merger or consolidation of the Company with
or into another entity or any other corporate reorganization, if persons who
were not stockholders of

                                       4
<PAGE>

the Company immediately prior to such merger, consolidation or other
reorganization own immediately after such merger, consolidation or other
reorganization 50% or more of the voting power of the outstanding securities of
each of (i) the continuing or surviving entity and (ii) any direct or indirect
parent corporation of such continuing or surviving entity;

          (b) The sale, transfer or other disposition of all or substantially
all of the Company's assets;

          (c) A change in the composition of the Board, as a result of which
fewer than 50% of the incumbent directors are directors who either (i) had been
directors of the Company on the date 24 months prior to the date of the event
that may constitute a Change in Control (the "original directors") or (ii) were
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of the aggregate of the original directors who were still in
office at the time of the election or nomination and the directors whose
election or nomination was previously so approved; or

          (d) Any transaction as a result of which any person is the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing at least 50% of the total
voting power represented by the Company's then outstanding voting securities.
For purposes of this Subsection (d), the term "person" shall have the same
meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall
exclude (i) a trustee or other fiduciary holding securities under an employee
benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation
owned directly or indirectly by the stockholders of the Company in substantially
the same proportions as their ownership of the common stock of the Company.

     A transaction shall not constitute a Change in Control if its sole purpose
is to change the state of the Company's incorporation or to create a holding
company that will be owned in substantially the same proportions by the persons
who held the Company's securities immediately before such transaction.

     9.3  "Code" means the Internal Revenue Code of 1986, as amended.

     9.4  "Committee" means a committee of the Board, as described in Article 2.

     9.5  "Common Share" means one share of the common stock of the Company.

     9.6  "Company" means Equinix, Inc., a Delaware corporation.

     9.7  "Employee" means a common-law employee of the Company, a Parent or a
Subsidiary.

     9.8  "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     9.9  "Exercise Price" means the amount for which one Common Share may be
purchased upon exercise of such Option, as specified in the applicable Stock
Option Agreement.

                                       5
<PAGE>

     9.10  "Fair Market Value" means the market price of shares of Common Stock,
determined by the Committee in good faith on such basis as it deems appropriate.
Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in The Wall Street Journal. In the case of
                                   -----------------------
options granted on the effectiveness of the IPO, means the price at which
one share of stock is offered to the public. Such determination shall be
conclusive and binding on all persons.

     9.11  "IPO" means the initial offering of common stock of the Company to
the public pursuant to a registration statement filed by the Company with the
Securities and Exchange Commission.

     9.12  "Non-Employee Director" means a member of the Board who is not an
Employee.

     9.13  "Option" means an option granted under the Plan and entitling the
holder to purchase shares of Common Stock.  Options do not qualify as incentive
stock options described in section 422(b) of the Code.

     9.14  "Optionee" means an individual or estate who holds an Option.

     9.15  "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on
a date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

     9.16  "Plan" means this Equinix, Inc. 2000 Director Option Plan, as amended
from time to time.

     9.17  "Stock Option Agreement" means the agreement between the Company and
an Optionee that contains the terms, conditions and restrictions pertaining to
his or her Option.

     9.18  "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.  A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan
shall be considered a Subsidiary commencing as of such date.

                                       6

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