Document:

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                                                                   EXHIBIT 10.11

THIS NOTE AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS
TO THE SECURITIES UNDER SAID ACT OR AN EXEMPTION FROM REGISTRATION.

                         ____________________________
                               CONVERTIBLE NOTE

Note No. 1999-1

$10,000,000                                                 September 30, 1999
                                                     San Francisco, California

     FOR VALUE RECEIVED, PeoplePC Inc., a Delaware corporation (the "Company"),
promises to pay to SOFTBANK Capital Partners L.P. ("SOFTBANK) , or its assigns
(each of SOFTBANK and any such assign, a "Holder") , the principal sum of
$10,000,000 or such lesser amount as shall then equal the outstanding principal
amount hereof, together with interest from the date of this Convertible Note on
the unpaid principal balance at a rate equal to 7% per annum, computed on the
basis of the actual number of days elapsed and a year of 360 days consisting of
twelve 30-day months, with interest to accrue from the date hereof.
Notwithstanding the foregoing, if the Purchase Agreement, as defined below, is
entered into within 30 days of the date hereof, the interest accrued up to and
including the date of execution of the Purchase Agreement shall be forgiven.
Unless this Convertible Note is earlier converted in accordance with Section 3
hereof, all unpaid principal, together with any then unpaid and accrued interest
and other amounts payable hereunder, shall be due and payable on the earlier of
(i) September 30, 2004 (the "Maturity Date"), or (ii) the acceleration of the
maturity thereof in accordance with Section VI of the Loan Agreement dated
September 30, 1999 (the "Loan Agreement") between the Company and SOFTBANK.

     This Convertible Note shall be governed by, and be subject to, the terms of
the Loan Agreement, all of which provisions are hereby incorporated herein by
reference.

     The following is a statement of the rights of the Holder and the conditions
to which this Convertible Note is subject, and to which the Holder hereof, by
the acceptance of this Convertible Note, agrees:

     1.  Definitions.  As used in this Convertible Note, the following
         -----------
capitalized terms have the following meanings:

         (a) The "Company" includes the corporation initially executing this
Convertible Note and any Person that shall succeed to or assume the obligations
of the Company under this Convertible Note.

         (b) "Holder" shall mean the Person specified in the introductory
paragraph of this Convertible Note or any Person who shall at the time be the
registered holder of this Convertible Note.

                                      -1-
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         (c) "Person" shall mean and include an individual, a partnership, a
corporation (including a business trust), a joint stock company, a limited
liability company, an unincorporated association, a joint venture or any other
entity or a governmental authority.

     2.  Interest.  Accrued interest on this Convertible Note shall be payable
         --------
at such time as the outstanding principal amount hereof shall be paid in full;
provided however, that in the event this Convertible Note is not previously
-------- -------
converted and the principal amount hereof is not repaid in full on the Maturity
Date, accrued but unpaid interest on this Convertible Note shall thereafter be
paid in cash on the Maturity Date, the last business day of each calendar month
thereafter and on such date as the outstanding principal amount hereof shall be
paid in full.

     3.  Conversion.
         ----------

         (a) Series B Preferred Stock Financing.  Upon the first closing of the
             ----------------------------------
sale of securities pursuant to a mutually acceptable purchase agreement between
the Company and SOFTBANK consistent with the terms of the letter of
understanding of even date herewith (the "Purchase Agreement"), all principal
and accrued interest due on this Convertible Note shall automatically convert
into a number of shares of Series B Preferred Stock (the "Conversion Number")
determined by dividing all of the unpaid principal and accrued but unpaid
interest on this Convertible Note as of the First Closing Date (as defined in
the Purchase Agreement) by the purchase price per share specified in the
Purchase Agreement, subject to appropriate adjustment in the event of stock
splits, stock dividends, recapitalization and similar events (as so adjusted,
the "Conversion Price").  The cancellation of this Convertible Note in
connection with such conversion shall be deemed to be payment in full of the
purchase price of a number of shares equal to the Conversion Number purchased
pursuant to the Purchase Agreement.

         (b) Issuance of Securities on Conversion.  Concurrent with the
             ------------------------------------
conversion of this Convertible Note, the Company will cause to be issued in the
name of, and delivered to, the Holder, a certificate or certificates
representing the number of shares of the Series B Preferred Stock to which the
Holder shall be entitled on such conversion.  No fractional shares will be
issued on conversion of this Convertible Note and in lieu thereof the Holder
shall be entitled to payment in cash of the amount of the Convertible Note not
converted into shares.

         (c) Termination of Rights.  All rights with respect to this
             ---------------------
Convertible Note shall terminate upon the issuance of shares of Series B
Preferred Stock upon conversion of this Convertible Note, whether or not this
Convertible Note has been surrendered.  Notwithstanding the foregoing, the
Holder agrees to surrender this Convertible Note to the Company for cancellation
as soon as is practicable following conversion of this Convertible Note.

     4.  Successors and Assigns.   Subject to the restrictions on transfer
         ----------------------
described in Section 6 below, the rights and obligations of the Company and the
Holder shall be binding upon and benefit the successors, assigns, heirs,
administrators and transferees of the parties.

                                      -2-
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     5.  Waiver and Amendment.  Any provision of this Convertible Note may be
         --------------------
amended, waived or modified upon the written consent of the Company and
SOFTBANK.

     6.  Assignment.  Neither this Convertible Note nor any of the rights,
         ----------
interests or obligations hereunder may be assigned, by operation of law or
otherwise, in whole or in part, by the Company or the Holder without the prior
written consent of the other party except (i) in the case of the Company, in
connection with an assignment in whole to a successor corporation to the
Company, provided that such successor corporation acquires, by purchase of
assets, merger or otherwise, all or substantially all of the Company's property
and assets, and (ii) in the case of Holder to any affiliates of Holder or
SOFTBANK Corp., a Japanese corporation, including, without limitation, any
partnership or other entity of which any direct or indirect subsidiary of
SOFTBANK Corp. is a general partner or has investment discretion, or any
employees of any of the foregoing.

     7.  Addresses for Notices, etc.  Any notices and other communications
         ---------------------------
required or permitted under this Agreement shall be effective if in writing and
delivered personally or sent by telecopier, Federal Express or registered or
certified mail, postage prepaid, addressed as follows:

  If to the Holder, to:       SOFTBANK Holdings Inc.
                              10 Langley Road, Suite 403
                              Newton Center, MA  02159
                              Attention:  Ronald D. Fisher
                              Facsimile:  (617) 928-9301

                              SOFTBANK Capital Partners LP.
                              300 Delaware Avenue, Suite 900
                              Wilmington, Delaware  19801
                              Attention:  Francis Jacobs
                              Facsimile:  (302) 552-3128

        with a copy to:       Sullivan & Cromwell
                              1888 Century Park East
                              Suite 2100
                              Los Angeles, California  90067
                              Telephone:  (310) 712-6650
                              Telecopier:  (310) 712-8800
                              Attention:  John L. Savva, Esq.

If to the Company, to:        PeoplePC Inc.
                              100 Pine Street
                              Suite1100
                              San Francisco, CA 94111
                              Telephone:  (415) 732-4400

                                      -3-
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                              Telecopier:  (415) 837-3857
                              Attention:  Nick Grouf

       with a copy to:        Cooley Godward LLP
                              3000 El Camino Real
                              Palo Alto, CA 94306
                              Telephone:  (650) 843-5000
                              Telecopier:  (650) 857-0663
                              Attention:  Andrei M. Manoliu, Esq.

     Unless otherwise specified herein, such notices or other communications
shall be deemed effective (a) on the date delivered, if delivered personally,
(b) two business days after being sent, if sent by Federal Express or other
commercial overnight delivery service, (c) one business day after being sent, if
sent by telecopier with confirmation of good transmission and receipt, and (d)
three business days after being sent, if sent by registered or certified mail.
Each of the parties hereto shall be entitled to specify another address by
giving notice as aforesaid to each of the other parties hereto.

     8.  Payment.  Except in the event this Convertible Note is converted into
         -------
Series B Preferred Stock as provided herein, payment shall be made in lawful
tender of the United States.

     9.  Severability.  The holding of any provision of this Convertible Note to
         ------------
be invalid or unenforceable by a court of competent jurisdiction shall not
affect any other provisions and the other provisions of this Convertible Note
shall remain in full force and effect.

     10. Governing Law.  This Convertible Note shall be governed by and
         -------------
construed and enforced in accordance with the laws of the State of Delaware.

     IN WITNESS WHEREOF, the Company has caused this Convertible Note to be
issued as of the date first written above.

                              PeoplePC Inc.,
                              a Delaware corporation

                              By:
                                  -----------------------------------------

                              Title:
                                     --------------------------------------

                                      -4-<PAGE>

                                                                   EXHIBIT 10.12

                                LOAN AGREEMENT

     This Loan Agreement (this "Agreement") is made effective as of the 30th
day of September, 1999 (the "Effective Date"), by and between PeoplePC Inc., a
Delaware corporation (the "Company") , and SOFTBANK Capital Partners LP, a
Delaware limited partnership ("Lender").

                                   RECITALS

     Whereas, on the date hereof, the Company and Lender are entering into a
letter of understanding contemplating the preparation and execution of a
mutually acceptable Stock Purchase Agreement (the "Purchase Agreement"),
pursuant to which the Company intends to sell and Lender intends to acquire
shares of the Company's Series B Preferred Stock, par value $.001 per share (the
"Share Acquisition").

     Whereas, the Company and Lender wish to enter into this Agreement to fund
the Company's operations until the closing of the Share Acquisition.

     In Witness Whereof, the parties agree as follows:

     1.   The Loan. Subject to the terms and conditions of this Agreement,
          --------
Lender agrees to lend to the Company, and the Company agrees to borrow from
Lender, funds in an aggregate principal amount of ten million dollars
($10,000,000) (the "Loan"), in one installment. The Loan shall be made on the
date hereof. Interest shall accrue on the Loan commencing one month following
the date hereof. Lender will transmit the Loan via wire transfer of immediately
available funds to the following account: Account No.: __________, Bank Name:
________________________; ABA No.: _________; or pursuant to such other
instructions as may have been provided in writing by the Company, and the
Company will accept the Loan pursuant to the terms of this Agreement.

     2.   The Convertible  Note.  The Loan will be evidenced by, and repaid with
          ---------------------
interest in accordance with, an interest-bearing promissory note in the form of
Exhibit A (the "Convertible  Note"), duly completed and dated as of the date of
---------
the Loan and delivered to Lender at or prior to the time of the Loan.

     3.   Interest and Payments. Interest shall accrue and be paid to Lender on
          ---------------------
the outstanding and unpaid principal amount of the Loan at the rate of 7% per
annum, computed on the basis of the actual number of days elapsed and a year of
360 days consisting of twelve 30 day months. Payments of principal and interest
will be made to Lender in the manner specified in the Convertible Note.

                                      -1-
<PAGE>

     4.   Conditions to Funding of Loan. The obligation of the Lender to make
          -----------------------------
the Loan is subject to the fulfillment on or prior to the time of funding of the
Loan of the Company's due execution and delivery of the Convertible Note.

     5.   Events of Default. The occurrence of any of the following events will
          -----------------
be an "Event of Default" hereunder:

          (a)  Voluntary Bankruptcy or Insolvency Proceedings. The Company shall
(i) apply for or consent to the appointment of a receiver, trustee, liquidator
or custodian of itself or of all or a substantial part of its property, (ii)
make a general assignment for the benefit of its or any of its creditors, (iii)
commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
consent to any such relief or to the appointment of or taking possession of its
property by any official in an involuntary case or other proceeding commenced
against it, or (iv) take any action for the purpose of effecting any of the
foregoing; or

          (b)  Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for
the appointment of a receiver, trustee, liquidator or custodian of the Company
or of all or a substantial part of the property thereof, or an involuntary case
or other proceedings seeking liquidation, reorganization or other relief with
respect to the Company or the debts thereof under any bankruptcy, insolvency or
other similar law now or hereafter in effect shall be commenced and an order for
relief entered or such proceeding shall not be dismissed or discharged within
sixty (60) days of commencement.

          (c)  Cross Default. The Company fails to pay or discharge any
obligation in excess of $250,000 when due, whether by scheduled maturity,
required prepayment, acceleration, or otherwise.

          (d)  Judgment. Rendering of a final judgment or judgments (not subject
to appeal) against the Company or any of its subsidiaries in an aggregate amount
in excess of $500,000 which remains unstayed, in effect and unpaid for a period
of 60 consecutive days thereafter.

          (e)  Conversion Default. With respect to outstanding obligations under
the Convertible Note, any breach by the Company with respect to its obligations
to issue shares of Common Stock upon conversion of the Convertible Note pursuant
to Section 3 thereof.

          (f)  Purchase Agreement. Failure by the parties to enter into a
mutually acceptable Purchase Agreement within forty-five (45) days of the date
hereof.

     6.   Rights of the Lender upon Default. Upon the occurrence or existence of
          ---------------------------------
an Event of Default specified in Section 5(a) or (b), immediately and without
notice, all outstanding obligations payable by the Company hereunder and under
the Convertible Note shall automatically become immediately due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived. Upon the occurrence or existence of an Event

                                      -2-
<PAGE>

of Default as specified in Sections 5(c), (d) or (e), the Lender may declare the
outstanding obligations hereunder and under the Convertible  Note immediately
due and payable by written notice to the Company and upon any such declaration
such obligations shall become immediately due and payable.

     7.   Successors and Assigns. This Agreement and the Convertible Note shall
          ----------------------
be binding upon and benefit the successors, assigns, heirs, administrators and
transferees of the parties.

     8.   Waiver and Amendment. Any provision of this Agreement may be amended,
          --------------------
waived or modified upon the written consent of the Company and the Lender.

     9.   Assignment. Neither this Agreement nor any of the rights, interests or
          ----------
obligations hereunder may be assigned, by operation of law or otherwise, in
whole or in part, by the Company or the Holder without the prior written consent
of the other party except (i) in the case of the Company, in connection with an
assignment in whole to a successor corporation to the Company, provided that
such successor corporation acquires, by purchase of assets, merger or otherwise,
all or substantially all of the Company's property and assets, and (ii) in the
case of Lender to any affiliates of Lender or SOFTBANK Corp., a Japanese
corporation, including, without limitation, any partnership or other entity of
which any direct or indirect subsidiary of SOFTBANK Corp. is a general partner
or has investment discretion, or any employees of any of the foregoing.

     10.  Addresses for Notices, etc. Any notices and other communications
          ---------------------------
required or permitted under this Agreement shall be effective if in writing and
delivered personally or sent by telecopier, Federal Express or registered or
certified mail, postage prepaid, addressed as follows:

          If to Lender, to:        SOFTBANK Capital Partners LP
                                   10 Langley Road, Suite 403
                                   Newton Center, MA  02159
                                   Attn:  Ronald D. Fisher
                                   Facsimile:  (617) 928-9301

          with a copy to:          Sullivan & Cromwell
                                   1888 Century Park East
                                   Los Angeles, California  90067
                                   Telephone:  (310) 712-6650
                                   Telecopier:  (310) 712-8800
                                   Attention: John L. Savva, Esq.

                                      -3-
<PAGE>

          If to the Company, to:   PeoplePC Inc.
                                   100 Pine Street
                                   Suite 1100
                                   San Francisco, CA 94111
                                   Telephone:  (415) 732-4400
                                   Telecopier:  (415) 837-3857
                                   Attention:  Nick Grouf

          with a copy to:          Cooley Godward LLP
                                   Five Palo Alto Square
                                   3000 El Camino Real
                                   Palo Alto, CA 94306
                                   Telephone:  (650) 843-5000
                                   Telecopier:  (650) 857-0663
                                   Attention:  Andrei M. Manoliu, Esq.

     Unless otherwise specified herein, such notices or other communications
shall be deemed effective (a) on the date delivered, if delivered personally,
(b) two business days after being sent, if sent by Federal Express or other
commercial overnight delivery service, (c) one business day after being sent, if
sent by telecopier with confirmation of good transmission and receipt, and (d)
three business days after being sent, if sent by registered or certified mail.
Each of the parties hereto shall be entitled to specify another address by
giving notice as aforesaid to each of the other parties hereto.

     11.  Severability. The holding of any provision of this Agreement to be
          ------------
invalid or unenforceable by a court of competent jurisdiction shall not affect
any other provisions and the other provisions of this Convertible Note shall
remain in full force and effect.

     12.  Governing Law. This Agreement shall be governed by and construed and
          -------------
enforced in accordance with the laws of the State of Delaware.

                                      -4-
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     In Witness Whereof, the parties hereto have executed and delivered this
Agreement as of the date first above written.

                                   PeoplePC Inc.,
                                   a Delaware corporation

                                   By:
                                      -----------------------------------

                                   Title:
                                         --------------------------------

                                   SOFTBANK Capital Partners LP,
                                   a Delaware limited partnership corporation

                                   By:
                                      -----------------------------------

                                   Title:
                                         --------------------------------

                                      -5-

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