Document:

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                                                                   EXHIBIT 10.43

[EXODUS LOGO]
Exodus Communications, Inc.
2831 Mission College Boulevard
Santa Clara, CA 95054-1838
408-346-2200

July 12, 2001

Mr. William M. Austin
1 Brompton Court
Houston, TX 77024

Dear Bill:

I am pleased to extend to you an offer as Executive Vice President, Finance and
Chief Financial Officer of Exodus Communications, Inc. (the "Company"). The
terms of your employment that we discussed on the phone are set forth in this
letter and Attachment A to this letter. You will also be eligible to participate
           ------------
in our health and dental insurance, 401K, employee stock purchase plan and other
employee benefits established by the Company.

As an employee of the Company, you will have access to certain Company
confidential information and you may, during the course of your employment,
development certain information or inventions, which will become the property of
the Company. You will need to sign the attached "Employee Invention Assignment
and Confidentiality Agreement" and "Procedures and Guidelines Governing
Securities Trades by Company Personnel" as conditions of your employment. We
wish to impress upon you that we do not wish you to bring any confidential or
proprietary material of any former employer or to violate any other obligation
to your former employers. Also, you represent that you are not subject to any
restrictions that prevent you from working for the Company.

Your employement is conditioned upon you passing our background investigation
and providing verification of your eligibility for employment in the U.S., which
meets the requirements of the U.S. Department of Justice.

We look forward to your becoming a part of the Exodus team. Please confirm your
acceptance of this offer at the earliest possible date, but in any event no
later than Wednesday, July 18, 2001. Also, please fax a copy of your signed
offer letter (both

Exodus Confidential Information

<PAGE>

                                                                  William Austin
                                                                    Offer Letter
                                                                   July 12, 2001
                                                                          Page 2

[EXODUS LOGO]
Exodus Communications, Inc.
2831 Mission College Boulevard
Santa Clara, CA 95054-1838
408-346-2200

pages) and the two attachments to my attention at (408) 884-6400 (confidential
fax number). You should keep the originals for your records. This offer expires
at 5:00 Pacific time on July 18, 2001.

Your signature will acknowledge that you have read, understood and agreed to the
terms and conditions set forth in this letter and Attachment A.

Sincerely,

/s/ Grace de Latour
Grade de Latour
Executive Vice President, Human Resources

I HAVE READ AND I UNDERSTAND THE TERMS OF THE OFFER SET FORTH ABOVE AND IN
ATTACHMENT A. AS INDICATED BY MY SIGNATURE BELOW, I ACCEPT THE OFFER AS STATED
HEREIN. NO FURTHER COMMITMENTS WERE MADE TO ME AS A CONDITION OF EMPLOYMENT.

/s/ William M. Austin
-------------------------------
William M. Austin

Date:    7/15/01
      -------------------------

Exodus Confidential Information

<PAGE>

                                  Attachment A
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Employee:               William M. Austin
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Title:                  Executive Vice President, Finance and Chief Financial
                        Officer of Exodus Communications, Inc. (the "Company"),
                        reporting to the Company's CEO.
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Primary                 Employee's primary working office shall initially be
Office:                 an office established by him in the Houston, Texas
                        area. Following the date on which Employee relocates his
                        residence to California, which shall be no later than
                        January 15, 2002, his primary working office shall be
                        the Company's headquarters in Santa Clara, California.
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Annual                  Base Salary: Employee's initial base salary will be
Compensation:           $33,333.33 per month, payable bi-weekly, which is
                        equivalent to $400,000 per year.
                        Initial Bonus: $400,000 guaranteed and paid quarterly
                        during the first year of employment. Thereafter,
                        Employee shall be eligible to receive an annual target
                        bonus equal to 100% of Employee's base salary, subject
                        to the Company meeting certain business objectives.
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Equity                  Options to purchase two million (2,000,000) shares of
Compensation:           the Company's common stock (the "Stock Options"). The
                        Stock Options will be issued at an exercise price equal
                        to the fair market value of Exodus common stock on the
                        first day of Employee's employment with the Company. The
                        Stock Options will become vested with respect to two
                        percent (2%) of the number of shares granted per month
                        starting on Employee's first date of employment until
                        such time as the Stock Options become fully vested as to
                        all of the shares. The vested Stock Options will become
                        exercisable starting six (6) months after the Employee's
                        first day of employment. The Stock Options shall be
                        issued pursuant to the Company's 1998 Equity Incentive
                        Plan and form of stock option agreement that
                        incorporates the terms set forth above.

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Real Estate             The Company will loan to Employee an amount up to
and Relocation          $3.5 million to assist Employee with the purchase of a
Assistance:             new residence in the San Francisco Bay Area (the "New
                        Residence"). The loan amount shall not exceed the
                        purchase price of the New Residence. The loan will be
                        issued pursuant to the terms of a full recourse
                        promissory note (the "Note") and will be secured by the
                        Employee's real property in California (including
                        principal residence) and Company securities held by
                        Employee. The Note will have a term of four (4) years
                        and a single balloon payment at the end of the term.
                        There will be no interest charged on the Note and the
                        Company will draft the Note documentation so as to
                        permit these arrangements to qualify as an "employee
                        relocation loan" under Treas. Reg. 1.7872-5(c)(i). In
                        the event the Note cannot qualify at the time it is
                        issued as an "employee relocation loan," then, for so
                        long as Employee is employed by the Company, the Company
                        will reimburse Employee for interest expense on the
                        Note. The Company will also reimburse Employee for
                        actual reasonable closing costs on the purchase of the
                        New Residence. The Company will not gross up the closing
                        costs or, if applicable, interest expense. The Note will
                        become due and payable within 45 days of the last day of
                        Employee's employment if Employee's employment with the
                        Company is terminated by Employee (other than an
                        "Involuntary Termination" as defined below) or
                        terminated by the Company for Cause (as defined below).

                        The Company will engage and pay for a third party
                        company to provide Employee with assistance with the
                        sale and purchase of his residences. This company will
                        also provide relocation assistance, including packing
                        and unpacking of personal possessions and moving of
                        possessions.

                        Employee may decide to delay the relocation of his
                        family to California until his high school aged child
                        can be enrolled in a school reasonably acceptable to
                        Employee. In the event of such delay, the Company will
                        cover for Employee the reasonable costs of an apartment
                        or condominium and a leased automobile for up to six (6)
                        months.
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Austin Terms of Offer of Employment (071301 v3)
Exodus Confidential Information

                                                                          1 of 3

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                                  Attachment A

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Change in               In the event Employee's employment with the Company is
Control;                terminated by Employee due to an Involuntary
Termination of          Termination or by the Company other than for Cause,
Employment;             Employee shall be entitled to receive his base salary,
Continued               100% of annual target bonus, and benefits for a period
Benefits:               of twenty-four (24) months from the date of
                        termination. In addition, in the event Employee's
                        employment with the Company is terminated by the Company
                        without Cause during the first six months of his
                        employment, he shall be entitled to exercise the number
                        of shares that are vested as of his last day of
                        employment.

                        In the event of a Change in Control (as defined below)
                        and Employee's employment with the Company is terminated
                        by Employee due to an Involuntary Termination or by the
                        Company other than for Cause within twelve (12) months
                        of the effective date of such Change in Control,
                        Employee shall be entitled to the following benefits:

                        1. Base salary, 100% of annual target bonus and benefits
                        for a period of twenty-four (24) months from the date of
                        termination;
                        2. Employee's Stock Options that have not vested as of
                        the date of employment termination shall become fully
                        vested as of such date; and
                        3. A cash bonus in the approximate amount of the Note
                        principal.

                        The Company's obligation to pay any of the continued
                        compensation or benefits described in this section shall
                        be subject to Employee signing a full settlement and
                        release and non-competition agreement with the Company.

                        In the event Employee's employment with the Company is
                        terminated by Employee other than under circumstances
                        that qualify as an Involuntary Termination, or is
                        terminated by Company for Cause, Employee shall not be
                        entitled the receive from the Company any compensation
                        or benefits following such termination.
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Definitions:            The term "Change in Control" means the occurrence of
                        any of the following events: (i) a merger or
                        consolidation involving the Company in which the
                        shareholders of the company immediately prior to such
                        merger or consolidation own less than fifty percent of
                        the voting power of the surviving corporation; (ii) the
                        sale of all or substantially all, of the assets of the
                        Company; or (iii) any person or group (as defined in the
                        Securities Exchange Act of 1934, as amended) becoming
                        the beneficial owner (within the meaning of Rule 13d-3
                        of the Securities Exchange Act of 1934, as amended),
                        directly or indirectly, of securities representing more
                        than fifty percent of the voting power of the Company
                        then outstanding.

                        The term "Involuntary Termination" means termination of
                        Employee's employment with the Company by Employee
                        within sixty (60) days after the occurrence of one or
                        more of the following events: (i) a material reduction
                        in the Employee's job title, position within the Company
                        and/or responsibilities; (ii) any material reduction in
                        Employee's base salary or any material reduction in
                        benefits; or (iii) a written directive from the CEO of
                        the Company that the Employee relocate to an office
                        located more than a fifty (50) mile radius from the
                        Company's headquarters.

                        The term "Cause" means Employee: (i) takes willful
                        action made in bad faith that results in material damage
                        or harm to the Company; (ii) refuses or fails to act in
                        accordance with any specific, legal direction or order
                        of the CEO or the Board; (iii) is convicted of a crime
                        involving dishonesty, breach of trust, or physical or
                        emotional harm to any person; (iv) has repeated
                        unexplained or unjustified absences from the Company; or
                        (v) breaches any material term of any agreement between
                        Employee and the Company; provided that Employee shall
                        be notified of any circumstances that may give rise to a
                        termination for Cause and shall be given at least ten
                        (10) business days from receipt of such notice to cure
                        such circumstances, if the circumstances may be cured.
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                        Austin Terms of Offer of Employment (071301 v3)
                        Exodus Confidential Information

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                                  Attachment A

Austin Terms of Offer of Employment (071301 v3)
Exodus Confidential Information<PAGE>

                                                                   EXHIBIT 10.45

[Exodus Logo]

EXODUS
Exodus Communications, Inc.
2831 Mission College Boulevard
Santa Clara, CA 95054-1838
408-346-2200

September 3, 2001

L. William Krause
25855 Westwind Way
Los Altos Hills, CA 94022

Dear Bill:

At the request of the Board of Directors (the "Board") of Exodus Communications,
Inc. (the "Company"), I am pleased to extend to you an offer as Chairman of the
Board and Chief Executive Officer of the Company. The terms of your employment
as approved by the Board are set forth in this letter and Attachment A to this
letter. You also will be eligible to participate in our health and dental
insurance, 401K, employee stock purchase plan and other employee benefits
established by the Company.

As an employee of the Company, you will have access to certain Company
confidential information and you may, during the course of your employment,
develop certain information or inventions, which will become the property of the
Company. You will need to sign the attached "Employee Invention Assignment and
Confidentiality Agreement" and "Procedures and Guidelines Governing Securities
Trades by Company Personnel" as conditions of your employment. We wish to
impress upon you that we do not wish you to bring any confidential or
proprietary material of any former employer or to violate any other obligation
to your former employers. Also, you represent that you are not subject to any
restrictions that prevent you from working for the Company.

We look forward to your becoming a part of the Exodus team and leading us
through these challenging times. Please confirm your acceptance of this offer
at the earliest possible date. Also, please return a complete copy of your
signed offer letter to my attention. You should keep the second copy for your
records.

Exodus Confidential Information

<PAGE>

Your signature will acknowledge that you have read, understood and agreed to the
terms and conditions set forth in this letter and Attachment A.

Sincerely,

/s/ Adam Wegner
-----------------------
Adam Wegner
Corporate Secretary, on behalf of the Board of Directors

I HAVE READ AND I UNDERSTAND THE TERMS OF THE OFFER SET FORTH ABOVE AND IN
ATTACHMENT A. AS INDICATED BY MY SIGNATURE BELOW, I ACCEPT THE OFFER AS STATED
HEREIN. NO FURTHER COMMITMENTS WERE MADE TO ME AS A CONDITION OF EMPLOYMENT.

/s/ L. William Krause
-----------------------
L. William Krause

Date: 9/3/01
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Exodus Confidential Information

<PAGE>
                                  Attachment A
<TABLE>
<CAPTION>
<S>                     <C>
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Employee:                L. William Krause
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Employment Commencement  Employment commenced September 3, 2001
Date:                    Compensation effective as of September 1, 2001
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Title:                   Chairman of the Board and Chief Executive Officer of Exodus Communications, Inc. (the
                         "Company"), reporting to the Company's Board of Directors.
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Base Salary:             Employee's initial base salary will be $75,000.00 per month, payable bi-weekly, which is
                         equivalent to $900,000.00 per year ("Base Salary").
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Cash Bonuses:            Initial Cash Bonus: Upon commencement of employment, Employee shall receive a
                         non-recoverable initial cash bonus of $600,000.00.
                         Milestone Cash Bonuses: Provided Employee is continuously employed in the role of
                         Chairman and Chief Executive Officer from September 6, 2001 until any or all of the
                         following events occur(s), Employee shall receive a bonus on the date each such event
                         occurs as follows:
                           o  Completion of updated operating and financial plan as approved by the Board of
                              Directors: $150,000.00
                           o  Debtor in Possession credit facility approved by the Board of Directors:
                              $150,000.00
                           o  Either of the following events occurring: (a) following the filing by the Company
                              of a voluntary petition for relief under Chapter 11 of the federal Bankruptcy Code
                              (a "Bankruptcy Filing"), the issuance of a Confirmation Order of a Plan of
                              Reorganization by the bankruptcy court (a "Confirmation Order"); or (b) the sale of
                              the Company: $1,000,000.00.
                           o  The commencement of employment of a new Chief Executive Officer of the Company:
                              $150,000.00
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Equity (or additional    Provided Employee is continuously employed in the role of Chairman and/or Chief
cash) Compensation:      Executive Officer from September 3, 2001 until either of the following events occurs,
                         Employee shall receive either of the following, depending on which event occurs first:

                         (a) In the event of the sale of the Company prior to a Bankruptcy Filing, at the closing of
                         the transaction, the acquiring entity will issue cash or unrestricted (other than subject to
                         securities laws compliance) publicly tradable stock (the form of consideration shall be at the
                         option of the acquiring entity) with a value equal to 0.75% of the Enterprise Value paid for
                         the Company (the value of any stock issued to Employee shall be valued on the per share basis
                         of the acquirer's stock used to determine the acquisition value for the Company, and if stock
                         is not used as the form of consideration for the acquisition, the closing price per share on
                         the date the acquisition closes); or

                         (b) Following a Bankruptcy Filing, at the closing of a sale of the Company or the issuance
                         of a Confirmation Order, the Company shall use best commercial efforts to ensure that
                         Employee receives (1) cash or unrestricted (other than subject to securities laws
                         compliance) publicly tradable stock (the form of consideration shall be at the option of the
                         successor entity) with a value equal to 0.25% of the Enterprise Value of the Company (the
                         value of any stock issued to Employee shall be valued on the per share basis of the
                         successor entity's stock used to determine the enterprise value for the Company, and if
                         stock is not used as the form of consideration for the acquisition (in the event of the sale of
                         the Company), the closing price per share on the date the acquisition closes) and (2) fully
                         vested options or warrants (at the option of the successor entity) to purchase unrestricted
                         publicly tradable stock with an aggregate exercise value equal to 1.25% of the Enterprise
                         Value of the Company at the time of the closing of a sale of the Company or issuance of a
                         Confirmation Order with an exercise price per share valued on the per share basis of the
                         entity's stock used to determine the Enterprise Value for the Company on such date.

                         For purposes of this Agreement, "Enterprise Value" is defined as the sum of (a) the value of
------------------------------------------------------------------------------------------------------------------------
</TABLE>

Exodus Confidential Information

<PAGE>
                                  Attachment A
<TABLE>
<CAPTION>
<S>                      <C>
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                         all outstanding debt and amounts owed to other creditors of the Company and (b) the value
                         of all outstanding equity of the Company.
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Termination:
                         The following severance benefits apply only during the period commencing September 3, 2001
                         and ending upon the issuance of a Confirmation Order or a Sale of the Company ("Severance
                         Period"). If the Company terminates Employee's employment without "Cause" or Employee
                         Resigns for "Good Reason" during the Severance Period, the Company shall use its best
                         commercial efforts to pay Employee (a) a lump sum payment equal to bonus of $1,000,000,
                         (b) a lump sum payment equal to one year of Employee's Base Salary in the amount of
                         $900,000, and (c) an amount equal to 25% of the Company's Enterprise Value at the
                         time of the issuance of a Confirmation Order or sale of the Company.

Definitions:
                         "Cause" means termination due to the Employee's (i) fraud or material misappropriation
                         with respect to the business or assets of the Company; (ii) persistent refusal or failure
                         materially to perform his duties and responsibilities to the Company for a period of at least
                         twenty (20) days, which continues after the Employee receives notice of such refusal or
                         failure; (iii) conduct that constitutes disloyalty to the Company and which materially harms
                         the Company; (iv) conviction, or the entry of a plea of guilty or nolo contendere by the
                         Employee, of a felony or crime, or (v) material breach of any provision of this Agreement.

                         Resignation for "Good Reason" means that Employee's resignation occurs within thirty (30)
                         days of one of the following events: (i) an involuntary reduction of Employee's job
                         duties or responsibilities, including removal as Chief Executive Officer; (ii) the Board
                         directs that Employee report to someone other than the Board, (iii) any involuntary
                         reduction of Employee's Base Salary, Initial Cash Bonus or any Milestone Cash Bonus; or
                         (iv) the issuance of a directive requiring Employee to relocate to a new office located more
                         than 25 miles from his current office.
</TABLE>

Exodus Confidential Information

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