Document:

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                                                                   EXHIBIT 10.01

                                 DoveBid, Inc.
                            1999 Stock Option Plan

          1.  Adoption and Purpose of the Plan.  This stock option plan (this
              --------------------------------
"Plan") has been adopted by the Board of Directors of DoveBid, Inc. (the
"Company"), and is subject to the approval of its shareholders pursuant to
Section 7 below.  The purpose of this Plan is to advance the interests of the
Company and its shareholders by enabling the Company to attract and retain
qualified directors, officers, employees, independent contractors, consultants
and advisers by providing them with an opportunity for investment in the
Company.  The Options that may be granted pursuant to this Plan represent the
right to acquire Shares of the Company's common stock, subject to the terms and
conditions of this Plan and a written agreement between the Company and the
Optionee to evidence each Option (an "Option Agreement").

          2.  Certain Definitions.  Capitalized terms not otherwise defined in
              -------------------
this Plan will have the meanings set forth in Exhibit A to this Plan.

          3.  Eligibility.  The Company may grant Options under this Plan only
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to (a) persons who, at the time of such grant, are directors, officers or
employees of the Company or any Subsidiary, and (b) natural persons who, and
entities which, at the time of such grant, are independent contractors,
consultants or advisers of the Company or any Subsidiary and who perform bona
fide services on its behalf other than in connection with capital-raising
transactions (collectively, "Eligible Participants").  No person or entity will
be an Eligible Participant following his, her or its Termination of Eligibility
Status.  Subject to Section 4 below, there is no limitation on the number of
Options that may be granted to an Eligible Participant.

          4.  Option Pool; Shares Reserved for Options.  The Company will not
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issue, in the aggregate, more than 12,500,000 Shares (the "Option Pool")
pursuant to the exercise of all Options granted under this Plan, exclusive of
those Option Shares that may be reacquired by the Company by repurchase or
otherwise; provided that in order to comply with the requirements of Section
260.140.45 of Title 10 of the California Code of Regulations (the "30% Rule"),
at no time will the total number of Shares that are issuable upon the exercise
of all outstanding Options granted under this Plan (or under any other
outstanding options or warrants issued by the Company, together with the total
number of Shares provided for under any stock bonus or similar plan of the
Company) in the aggregate exceed 30% of the total number of then issued and
outstanding Shares of the Company, unless approved by the holders of at least
two-thirds of the outstanding Shares of the Company, as calculated in accordance
with the conditions and exclusions of the 30% Rule.  At all times while Options
granted under this Plan are outstanding, the Company will reserve for issuance a
sufficient number of authorized and unissued Shares to fully satisfy the
Company's obligations under all such outstanding Options.

          5.  Administration.  This Plan will be administered and interpreted by
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the Board, or by a committee consisting of two or more members of the Board,
appointed by the Board for such purpose (the Board, or such committee, is
referred to as the "Administrator").  Subject to the express terms and
conditions hereof, the Administrator is authorized to prescribe, amend and
rescind rules and regulations relating to this Plan, and to make all other
determinations necessary or advisable for its administration and interpretation.
Specifically, the Administrator will have full and final authority in its
discretion, subject to the specific limitations on that discretion as are set
forth herein and in the Certificate of Incorporation and Bylaws of the Company,
at any time:

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              (a) To select and approve the Eligible Participants to whom
Options will be granted from time to time hereunder;

              (b) To determine the Fair Market Value of the Shares as of the
Grant Date for any Option that is granted hereunder;

              (c) With respect to each Option it decides to grant, to determine
the terms and conditions of that Option, to be set forth in an Option Agreement
evidencing that Option (the form of which also will be subject to approval by
the Administrator); except to the extent otherwise provided in this Plan, such
terms and conditions may vary from the general terms and conditions set forth in
Section 6 below, and may include, without limitation, the following:

                  (i)    The total number of Option Shares that may be acquired
by the Optionee pursuant to the Option;

                  (ii)   Whether the Option will be treated as an ISO;

                  (iii)  The per share purchase price to be paid to the Company
by the Optionee to acquire the Option Shares issuable upon exercise of the
Option (the "Exercise Price"), provided that the Exercise Price will not be less
than 85% of the Fair Market Value of the Shares as of the Grant Date, unless the
Optionee is a 10% Shareholder, in which case the Exercise Price will not be less
than 110% of such Fair Market Value;

                  (iv)   The maximum period during which the Option will be
exercisable (the "Option Term"), provided that in no event may the Option Term
be longer than ten years from the Grant Date;

                  (v)    The maximum period following any Termination of
Eligibility Status, whether resulting from an Optionee's death, Disability or
any other reason, during which period (the "Grace Period") the Option will be
exercisable, subject to Vesting and to the expiration of the Option Term,
provided that in no event may the Administrator designate a Grace Period that is
shorter than six months after such Termination of Eligibility Status by reason
of the Optionee's death or Disability, or 30 days after such Termination of
Eligibility for any other reason, except in the event of a Termination for
Cause, in which case no Grace Period will be required (i.e., the Option will
terminate immediately);

                  (vi)   Whether to accept a promissory note or other form of
legal consideration instead of cash as payment of all or a portion of the
Exercise Price or Tax Withholding Liability to be paid by the Optionee upon the
exercise of an Option;

                  (vii)  The conditions (e.g., the passage of time or the
occurrence of events), if any, that must be satisfied prior to the vesting of
the right to exercise all or specified portions of an Option (such portions
being described as the number of Option Shares, or the percentage of the total
number of Option Shares, that may be acquired by the Optionee pursuant to the
Option; the vested portion being referred to as a "Vested Option" and the
unvested portion being referred to as an "Unvested Option"), provided that no
such condition (except an Optionee's Termination of Eligibility Status) may be
imposed which prevents an Optionee who is an employee, but who is neither an
officer or director, of the Company or any Subsidiary, from purchasing at least
20% of the Option Shares initially subject to the Option as of the first
anniversary of the Grant Date, and as of

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each anniversary thereafter, such that by the fifth anniversary of the Grant
Date (assuming no Termination of Eligibility Status) the entire Option would be
a Vested Option; and

                  (viii) In addition, or as an alternative, to imposing
conditions on the right to exercise an Option as provided in Section 5(c)(vii)
above, the Board may determine whether any portion of the Option Shares acquired
by an Optionee upon exercise of an Option will be subject to repurchase by the
Company or its assigns pursuant to Section 6.8(c) below at the Exercise Price
paid for such Shares or at some other price that may be less than the Fair
Market Value of such Shares (such Shares, if subject to repurchase at less than
Fair Market Value, being referred to as "Unvested Shares") following a
Termination of Eligibility Status or other designated event, and the conditions
(e.g., the passage of time or the occurrence of events), if any, that must be
satisfied for such Shares to be no longer subject to such right of repurchase at
less than Fair Market Value (such Shares being referred to as "Vested Shares");
provided that no such conditions (except an Optionee's Termination of
Eligibility Status) may be imposed which prevent Unvested Shares held by an
employee, who is neither an officer or director, of the Company or any
Subsidiary, from becoming Vested Shares at the rate of at least 20% per year
following the Grant Date, such that by the fifth anniversary of the Grant Date
(assuming no earlier Termination of Eligibility Status) all of the Shares would
be Vested Shares; and

              (d) To delegate all or a portion of the Administrator's authority
under Sections 5(a), (b) and (c) above to one or more members of the Board who
also are executive officers of the Company, subject to such restrictions and
limitations as the Administrator may decide to impose on such delegation.

          6.  General Terms and Conditions of Options.  Unless otherwise
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expressly provided to the contrary in an Option Agreement based on the
Administrator's determination pursuant to Section 5(c) above, the following
terms and conditions will be deemed to apply to each Option as if expressly set
forth in the Option Agreement:

            6.1  ISO.  No Option will be treated as an ISO unless treatment as
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an ISO is expressly provided for in an Option Agreement and such Option
satisfies the conditions of Section 422(b) of the Code.

            6.2  Option Term.  The Option Term will be for a period of ten years
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beginning on the Grant Date.

            6.3  Grace Periods.  Following a Termination of Eligibility Status:
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                 (a) The Grace Period will be 30 days, unless the Termination of
Eligibility Status is a result of a Termination for Cause or the death or
Disability of the Optionee;

                 (b) The Grace Period will be six months if the Termination of
Eligibility Status is a result of the death or Disability of the Optionee; and

                 (c) There will be no Grace Period, and the Option will
terminate, effective immediately as of the date and time of a Termination for
Cause of the Optionee, regardless of whether the Option is Vested or Unvested.

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          6.4  Vesting.  The Option initially will be deemed an entirely
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Unvested Option, but portions of the Option will become a Vested Option on the
following schedule, provided that the Optionee does not suffer a Termination of
Eligibility Status prior to any vesting date, and provided further that
additional vesting will be suspended during any period while the Optionee is on
a leave of absence from the Company or any Subsidiary, as determined by the
Administrator:

                (a) 25% will become a Vested Option as of the first anniversary
of the "Vesting Start Date" specified in the Option Agreement (which may be
earlier but may not be later than the Grant Date specified therein); and

                (b) An additional 6-1/4th% of the Option will become a Vested
Option as of the end of each three-month period thereafter, such that 100% of
the Option will be a Vested Option on the fourth anniversary of the Vesting
Start Date.

          6.5 Exercise of the Option; Issuance of Share Certificate.
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                (a)  Notice and Payment. The Optionee may exercise the portion
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of the Option that is a Vested Option by giving written notice to the Company,
on such form as may be specified by the Administrator, but in any event stating:
(i) the Optionee's intention to exercise the Option; (ii) the date of exercise;
(iii) the number of full Option Shares to be purchased; (iv) the amount and form
of payment of the Exercise Price; (v) and such assurances of the Optionee's
investment intent as the Company may require to ensure that the transaction
complies in all respects with the requirements of the 1933 Act and other
applicable securities laws. The notice of exercise must be signed by the person
exercising the Option. If the Option is exercised by a representative of the
Optionee, the notice will be accompanied by proof satisfactory to the Company of
the representative's right to exercise the Option. The notice of exercise will
be accompanied by full payment of the Exercise Price for the number of Option
Shares to be purchased, in United States dollars, in cash, by check made payable
to the Company, or by delivery of such other form of payment (if any) as
approved by the Administrator in the particular case.

                (b) Tax Withholding Liability. To the extent required by
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applicable federal, state, local or foreign law, and as a condition to the
Company's obligation to issue any Shares upon the exercise of the Option in full
or in part, the Optionee will make arrangements satisfactory to the Company for
the payment of any applicable Tax Withholding Liability that may arise by reason
of or in connection with such exercise. Such arrangements may include, in the
Administrator's sole discretion, that the Optionee tender to the Company the
amount of such Tax Withholding Liability, in cash, by check made payable to the
Company, or in the form of such other payment as may be approved by the
Administrator.

                (c) Stock Certificate. After receiving a proper notice of
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exercise and payment of the applicable Exercise Price and Tax Withholding
Liability, the Company will cause to be issued a certificate or certificates for
the Option Shares, registered in the name of the person rightfully exercising
the Option, and the Company will cause such certificate or certificates to be
delivered to such person.

          6.6  Compliance with Law.  Notwithstanding any other provision of this
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Plan, Options may be granted pursuant to this Plan, and Option Shares may be
issued pursuant to the exercise of Options, only after and on the condition that
there has been compliance with all applicable federal and state securities laws.
The Company will not be required to list, register or

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qualify any Option Shares upon any securities exchange, under any applicable
state, federal or foreign law or regulation, or with the Securities and Exchange
Commission or any state agency, or secure the consent or approval of any
governmental regulatory authority.

          6.7  Restrictions on Transfer.
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               (a) Options Nontransferable. No Option will be transferable by an
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Optionee otherwise than by will or the laws of descent and distribution. During
the lifetime of a natural person who is granted an Option under this Plan, the
Option will be exercisable only by such person.

               (b) Prohibited Transfers. Prior to the Initial Public Offering,
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no Holder of any Option Shares may Transfer such Shares, or any interest
therein: (i) except as expressly provided in this Plan; and (ii) other than in
full compliance with all applicable securities laws and any applicable
restrictions on Transfer provided in the Company's Certificate of Incorporation
or Bylaws, which will be deemed incorporated by reference into this Plan. All
Transfers of Option Shares not complying with the specific limitations and
conditions set forth in this Section 6.7 and Section 6.8 below are expressly
prohibited. Any prohibited Transfer is void and of no effect, and no purported
transferee in connection therewith will be recognized as a Holder of Option
Shares for any purpose whatsoever. Should such a Transfer purport to occur, the
Company may refuse to carry out the Transfer on its books, attempt to set aside
the Transfer, enforce any undertakings or rights under this Plan, or exercise
any other legal or equitable remedy.

               (c) Permitted Transfers. In the case of a Permitted Transfer,
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the conditions set forth in Section 6.7(d) will apply, but the rights of first
refusal and repurchase set forth in Section 6.8 below will not apply. For such
purposes, a "Permitted Transfer" means any of the following: (i) a Transfer by
will or under the laws of descent and distribution; (ii) a Transfer by a Holder
of Option Shares to his or her ancestors, descendants or spouse (other than
pursuant to a decree of divorce, dissolution or separate maintenance, a property
settlement, or a separation agreement or any similar agreement or arrangement
with a spouse, except for bona fide estate planning purposes), or to a trust,
partnership, limited liability company, custodianship or other fiduciary account
for the benefit of the Holder and/or such ancestors, descendants or spouse,
including any Transfer in the form of a distribution from any such trust,
partnership, limited liability company, custodianship or other fiduciary account
to any of the foregoing permitted beneficial owners or beneficiaries thereof; or
(iii) a Transfer of Option Shares approved in writing by the Administrator in
its sole discretion.

               (d)  Conditions to Transfer.  It will be a condition to any
                    ----------------------
Transfer of any Option Shares that:

                    (i)  The Transferee of the Shares will execute such
documents as the Company may reasonably require to ensure that the Company's
rights under this Plan, and any applicable Option Agreement, are adequately
protected with respect to such Shares, including, without limitation, the
Transferee's agreement to be bound by all of the terms and conditions of this
Plan and such Agreement, as if the Transferee were the original Holder of such
Shares; and

                    (ii) The Company is satisfied that such Transfer complies in
all respects with the requirements imposed by applicable federal and state
securities laws and regulations.

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               (e)  Market Standoff. If in connection with any public offering
                    ---------------
of securities of the Company (or any Successor Entity), the underwriter or
underwriters managing such offering so requests, then each Optionee and each
Holder of Option Shares will agree to not sell or otherwise Transfer any such
Shares (other than Shares included in such underwriting) without the prior
written consent of such underwriter, for such period of time as may be requested
by the underwriter.

          6.8  Rights of First Refusal and Repurchase.  The Company will have
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the following rights of first refusal and repurchase with respect to Option
Shares:

               (a) Right of First Refusal for Voluntary Transfer.  If any Holder
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proposes to Transfer any Option Shares prior to the Initial Public Offering,
other than in the case of a Permitted Transfer pursuant to Section 6.7(c) above
or an Involuntary or Donative Transfer subject to Section 6.8(b) below, the
Company will have an assignable right of first refusal to purchase all or any
portion of such Shares on the terms and conditions set out in this Section
6.8(a).  If the Company (or its assignee) elects to exercise such right, it will
do so with respect to any particular Transfer of Shares in the following manner:

                   (i)   Before any such Transfer, the Holder proposing to
Transfer such Shares will deliver a notice of proposed Transfer (a "Proposed
Transfer Notice") to the Company stating: (A) the number of Option Shares that
the Holder proposes to Transfer; (B) the Holder's bona fide intention to
Transfer such Shares; (C) the names and addresses of the Holder and the proposed
Transferee (and subsequently such other information regarding such transferee as
the Company reasonably requests); (D) the manner and date of such proposed
Transfer; (E) the bona fide cash price and/or other consideration (and the fair
market value thereof) per share, if any, that such Transferee has offered to pay
the Holder for such Shares (the "Offered Price"); and (F) such other terms,
including payment terms, and conditions, if any, as were included in such offer
(the "Offered Terms").

                   (ii)  The Company (or its assignee) may exercise its right of
first refusal under this Section 6.8(a) at any time not more than 20 days after
the Company has received the Proposed Transfer Notice with respect to such
Shares. If the Company (or its assignee) elects to exercise such right it will
do so by delivering to the Holder of such Shares a notice of such election and a
closing date that is no more than 30 days after receipt of the Proposed Transfer
Notice (or such later date as the Transferee may have offered or on which the
Transfer is otherwise scheduled to occur).

                   (iii) At the closing of the sale of the Shares to the Company
(or its assignee), to be held at its principal executive offices, the Company
(or its assignee) will pay the Holder of the Shares, in cash, the purchase price
equal to the Offered Price, subject to an appropriate adjustment to take into
account any deferred payment terms that were included in the Offered Terms;
provided that if the Offered Price includes any non-cash consideration, the
value thereof for purposes of this Section 6.8(a) will be determined in good
faith by the Board.

                   (iv)  If the Company (including its assignees) fails or
refuses to exercise its rights under this Section 6.8(a) with respect to any
Shares that are the subject of any Proposed Transfer Notice, then the Holder
will have the right to Transfer such Shares to the Transferee named in such
Notice at the Offered Price and upon such Offered Terms as were set forth

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in such Notice; provided that such Transfer must be completed within 90 days
after the Company has received the Proposed Transfer Notice with respect to such
Shares.

               (b) Right of First Refusal for Involuntary or Donative Transfer.
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Following any Involuntary Transfer or Donative Transfer (other than a Permitted
Transfer) of Option Shares (the "Transferred Shares") prior to the Initial
Public Offering, the Company will have the assignable right to purchase from the
Transferee of the Transferred Shares all or a portion of such Shares for a
purchase price that is equal to the Fair Market Value of those Shares as of the
date of such Transfer, as determined in good faith by the Board.  If the Company
(or its assignee) elects to exercise such right, it will do so in the following
manner:

                   (i)   Promptly after such Transfer, the transferor of the
Transferred Shares will deliver, or will cause the Transferee to deliver, a
notice (a "Completed Transfer Notice") to the Company stating: (A) the number of
Transferred Shares; (B) the names and addresses of the transferor and the
Transferee (and subsequently such other information regarding the Transferee as
the Company reasonably requests); and (C) the manner, circumstances and date of
such Transfer.

                   (ii)  The Company (or its assignee) may exercise its rights
under this Section 6.8(b) at any time not more than 90 days after the Company
has received the Completed Transfer Notice with respect to the Transferred
Shares. If the Company (or its assignee) elects to exercise such rights it will
do so by delivering to the Transferee a notice of such election, specifying the
number of Transferred Shares to be purchased and a closing date that is no more
than 60 days after the giving of such notice.

                   (iii) At such closing, to be held at the Company's principal
executive offices, the Company (or its assignee) will pay the Transferee the
purchase price in cash.

               (c) Repurchase Following a Termination of Eligibility Status.
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Following any Termination of Eligibility Status of the original Holder of any
Option Shares, the Company will have the assignable right (but not the
obligation) to purchase from the current Holder of those Option Shares (except
to the extent that such Shares previously were transferred in a transaction as
to which Section 6.8(a) or (b) applied), all or a portion of such Shares for a
purchase price that is equal to (1) in the case of Unvested Shares pursuant to
Section 5(c)(viii) above, the Exercise Price paid for those Shares, and (2) in
the case of Vested Shares, or Option Shares that were never subject to Vesting
pursuant to Section 5(c)(viii) above, the greater of (A) the Exercise Price paid
for those Shares, or (B) the Fair Market Value of those Shares as of the date of
such Termination of Eligibility Status, provided that such right to purchase
Vested Shares shall terminate upon the Initial Public Offering.  Such right will
be exercisable in the following manner:

                   (i)   The Company (or its assignee) may exercise its right of
repurchase under this Section 6.8(c) at any time not more than 90 days after the
effective date of such Termination of Eligibility Status (or in the case of
Shares issued upon the exercise of Options after such Termination of Eligibility
Status, a period of 90 days after the date of the exercise). If the Company (or
its assignee) elects to exercise such purchase rights it will do so by
delivering to the Holder of such Shares a notice of such election, specifying
the number of Shares to be purchased and a closing date that is within such 90-
day period.

                   (ii)  At such closing, the Company (or its assignee) will pay
the Holder of the Shares, the purchase price, as specified in this Section
6.8(c), in cash, or by cancellation of

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indebtedness to the Company, if any, incurred by the original Holder of the
Option Shares to purchase such Shares, or both, at a closing to be held at the
Company's principal executive offices on the date specified in such notice,
provided that if the Holder of the Shares is not an employee of the Company or
any of its Subsidiaries, or is an officer, director or affiliate thereof, the
purchase price may be paid, in whole or in part, with an unsecured promissory
note from the Company (or its assignee) with the following terms: term of two
years; interest at the prime rate, payable annually; 50% of principal balance
paid on first anniversary; balance paid on second anniversary.

               (d) Escrow.  For purposes of facilitating the enforcement of the
                   ------
restrictions on Transfer set forth in this Plan or in any Option Agreement, the
Administrator may, at its discretion, require the Holder of Option Shares to
deliver the certificate(s) for such Shares with a stock power executed by the
Holder and the Holder's spouse (if required for Transfer), in blank, to the
Secretary of the Company, to hold said certificate(s) and stock power(s) in
escrow and to take all such actions and to effectuate all such Transfers and/or
releases as are in accordance with the terms of this Plan.  The certificates may
be held in escrow so long as the Option Shares whose ownership they evidence are
subject to any right of first refusal or repurchase under this Plan or under an
Option Agreement, and will be released by the escrow holder to an Optionee (or
to any permitted transferee of the Optionee) when they are no longer subject to
any right of first refusal or repurchase under this Plan or under the Option
Agreement.  Each Optionee, by exercising an Option, thereby acknowledges that
the Secretary of the Company is so appointed as the escrow holder with the
foregoing authorities as a material inducement to the grant of an Option under
this Plan, that the appointment is coupled with an interest, and that it
accordingly will be irrevocable.  The escrow holder will not be liable to any
party to an Option Agreement (or to any other party) for any actions or
omissions unless the escrow holder is grossly negligent relative thereto.  The
escrow holder may rely upon any letter, notice or other document executed by any
signature purported to be genuine.

          6.9  Change of Control Transactions.  In the event of a Change of
               ------------------------------
Control Transaction, the Company will attempt to cause the Successor Entity (or
its parent or its Subsidiary) either to assume all of the Options which have
been granted hereunder and which are outstanding as of the consummation of such
transaction ("Closing"), or to issue (or cause to be issued) in substitution
thereof comparable options of such Successor Entity (or of its parent or its
Subsidiary).  If the Successor Entity is unwilling to either assume such Options
or grant comparable options in substitution for such Options, on terms that are
acceptable to the Company as determined by the Board in the exercise of its
discretion, then the Board may cancel all outstanding Options, and terminate
this Plan, effective as of the Closing, provided that it will notify all
Optionees of the proposed Change of Control Transaction a reasonable amount of
time prior to the Closing so that each Optionee will be given the opportunity to
exercise the Vested portion of his or her Option prior to the Closing.  For
purposes of this Section 6.9, the term "Change of Control Transaction" means a
Business Combination in which less than 50% of the outstanding voting securities
of the Successor Entity immediately following the Closing of the Business
Combination transaction are beneficially held by those persons and entities in
the same proportion as such persons and entities beneficially held the voting
securities of the Company immediately prior to such transaction; the term
"Business Combination" means a transaction or series of transactions consummated
within any period of 90 days resulting in (A) the sale of all or substantially
all of the assets of the Company, (B) a merger or consolidation or other
reorganization of which the Company or a Subsidiary is a merging party, or (C)
the sale or other change of beneficial ownership of at least 50% of the
outstanding voting securities of the Company.

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          6.10  Additional Restrictions on Transfer; Investment Intent.  By
                ------------------------------------------------------
accepting an Option and/or Option Shares under this Plan, the Optionee will be
deemed to represent, warrant and agree that, unless a registration statement is
in effect with respect to the offer and sale of Option Shares:  (a) neither the
Option nor any such Shares will be freely tradeable and must be held
indefinitely unless such Option and such Shares are either registered under the
1933 Act or an exemption from such registration is available; (b) the Company is
under no obligation to register the Option or any such Shares; (c) upon exercise
of the Option, the Optionee will purchase the Option Shares for his or her own
account and not with a view to distribution within the meaning of the 1933 Act,
other than as may be effected in compliance with the 1933 Act and the rules and
regulations promulgated thereunder; (d) no one else will have any beneficial
interest in the Option Shares; (e) the Optionee has no present intention of
disposing of the Option Shares at any particular time; and (f) neither the
Option nor the Shares have been qualified under the securities laws of any state
and may only be offered and sold pursuant to an exception from qualification
under applicable state securities laws.

          6.11  Stock Certificates; Legends.  Certificates representing Option
                ---------------------------
Shares will bear all legends required by law and necessary or appropriate in the
Administrator's discretion to effectuate the provisions of this Plan and of the
applicable Option Agreement.  The Company may place a "stop transfer" order
against Option Shares until full compliance with all restrictions and conditions
set forth in this Plan, in any applicable Option Agreement and in the legends
referred to in this Section 6.11.

          6.12  Notices.  Any notice to be given to the Company under the terms
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of an Option Agreement will be addressed to the Company at its principal
executive office, Attention:  Secretary, or at such other address as the Company
may designate in writing.  Any notice to be given to an Optionee will be
addressed to him or her at the address provided to the Company by the Optionee.
Any such notice will be deemed to have been duly given if and when enclosed in a
properly sealed envelope, addressed as aforesaid, deposited, postage prepaid, in
a post office or branch post office regularly maintained by the local postal
authority.

          6.13   Other Provisions.  Each Option Agreement may contain such other
                 ----------------
terms, provisions and conditions, including restrictions on the Transfer of
Option Shares, and rights of the Company to repurchase such Shares, not
inconsistent with this Plan and applicable law, as may be determined by the
Administrator in its sole discretion.

          6.14   Specific Performance.  Under those circumstances in which the
                 --------------------
Company chooses to timely exercise its rights to repurchase Option Shares as
provided herein or in any Option Agreement, the Company will be entitled to
receive such Shares in specie in order to have the same available for future
issuance without dilution of the holdings of other shareholders of the Company.
By accepting Option Shares, the Holder agrees that money damages will be
inadequate to compensate the Company and its shareholders if such a repurchase
is not completed as contemplated hereunder and that the Company will, in such
case, be entitled to a decree of specific performance of the terms hereof or to
an injunction restraining such holder (or such Holder's personal representative)
from violating this Plan or Option Agreement, in addition to any other remedies
that may be available to the Company at law or in equity.

     7.   Term of the Plan.  This Plan will become effective on the date of its
          ----------------
adoption by the Board, provided that this Plan is approved by the shareholders
of the Company within 12 months before or after that date. If this Plan is not
so approved by the shareholders of the

                                       9

<PAGE>

Company within that 12-month period of time, any Options granted under this Plan
will be rescinded and will be void. This Plan will expire on the tenth
anniversary of the date of its adoption by the Board or its approval by the
shareholders of the Company, whichever is earlier, unless it is terminated
earlier pursuant to Section 11 of this Plan, after which no more Options may be
granted under this Plan, although all outstanding Options granted prior to such
expiration or termination will remain subject to the provisions of this Plan. No
such expiration or termination of this Plan will result in the expiration or
termination of any such Option prior to the expiration or early termination of
the applicable Option Term.

     8.   Adjustments Upon Changes in Stock.  In the event of any change in the
          ---------------------------------
outstanding Shares of the Company as a result of a stock split, reverse stock
split, stock bonus or distribution, recapitalization, combination or
reclassification, appropriate proportionate adjustments will be made in: (a) the
aggregate number of Shares that are reserved for issuance in the Option Pool
pursuant to Section 4 above, under outstanding Options or future Options granted
hereunder; (b) the Exercise Price and the number of Option Shares that may be
acquired under each outstanding Option granted hereunder; and (c) other rights
and matters determined on a per share basis under this Plan or any Option
Agreement evidencing an outstanding Option granted hereunder. Any such
adjustments will be made only by the Board, and when so made will be effective,
conclusive and binding for all purposes with respect to this Plan and all
Options then outstanding. No such adjustments will be required by reason of the
issuance or sale by the Company for cash or other consideration of additional
Shares or securities convertible into or exchangeable for Shares.

     9.   Modification, Extension and Renewal of Options.  Subject to the terms
          ----------------------------------------------
and conditions and within the limitations of this Plan, the Administrator may
modify, extend or renew outstanding Options granted under this Plan, or accept
the surrender of outstanding Options (to the extent not theretofore exercised)
and authorize the granting of new Options in substitution therefor (to the
extent not theretofore exercised). Notwithstanding the foregoing, however, no
modification of any Option will, without the consent of the Optionee, alter or
impair any rights or obligations under any outstanding Option.

     10.  Governing Law; Venue.  The internal laws of the State of California
          --------------------
(irrespective of its choice of law principles) will govern the validity of this
Plan, the construction of its terms and the interpretation of the rights and
duties of the parties hereunder and under any Option Agreement. Any party may
seek to enforce its rights under this Plan or any Option Agreement entered into
under this Plan in any court of competent jurisdiction located within the
judicial district in which the Company has a regular place of business.

     11.   Amendment and Discontinuance.  The Board may amend, suspend or
           ----------------------------
discontinue this Plan at any time or from time to time; provided that no action
of the Board will, without the approval of the shareholders of the Company,
materially increase (other than by reason of an adjustment pursuant to Section 8
hereof) the maximum aggregate number of Option Shares in the Option Pool,
materially increase the benefits accruing to Eligible Participants, or
materially modify the category of, or eligibility requirements for, persons who
are Eligible Participants. However, no such action may alter or impair any
Option previously granted under this Plan without the consent of the Optionee,
nor may the number of Option Shares in the Option Pool be reduced to a number
that is less than the aggregate number of Option Shares (a) that may be issued
pursuant to the exercise of all outstanding and unexpired Options granted
hereunder, and (b) that have been issued and are outstanding pursuant to the
exercise of Options granted hereunder.

                                       10

<PAGE>

     12.   Information Provided by Company.  Prior to the date on which the
           -------------------------------
Company is required to file its annual financial statements with the Securities
and Exchange Commission under the Securities Exchange Act of 1934, the Company
annually will provide the Company's financial statements (which statements need
not be audited) to each Optionee, and each Optionee will, by virtue of entering
into an Option Agreement, be deemed to have agreed (and to cause any advisers to
whom the Optionee proposes to make such information available to agree) to keep
such information confidential and not to use, disclose or copy such information
for any purpose whatsoever other than determining whether to exercise an Option.
The Company deems such financial statements to be the valuable trade secrets of
the Company, and in the event of any wrongful use, disclosure or other breach of
the obligation to maintain the confidentiality of such financial information,
the Company may seek to enforce all of its available legal and equitable rights
and remedies, and may notify local law enforcement officials that a criminal
misappropriation of the Company's trade secrets has taken place.

     13.  No Shareholder Rights.  No rights or privileges of a shareholder in
          ---------------------
the Company are conferred by reason of the granting of an Option. No Optionee
will become a shareholder in the Company with respect to any Option Shares
unless and until the Option has been properly exercised and the Exercise Price
fully paid as to the portion of the Option exercised.

Date Plan Adopted by Board of Directors:           October _____, 1999

Date Plan Approved by the Shareholders:            October _____, 1999

                                       11

<PAGE>

                                 DoveBid, Inc.
                            1999 Stock Option Plan

                                   Exhibit A
                                  Definitions
                                  -----------

          "Administrator" has the meaning set forth in Section 5 of the Plan.

          "Board" means the Board of Directors of the Company.

          "Business Combination" has the meaning set forth in Section 6.9 of the
Plan.

          "Change of Control Transaction" has the meaning set forth in Section
6.9 of the Plan.

          "Closing" has the meaning set forth in Section 6.9 of the Plan.

          "Code" means the Internal Revenue Code of 1986, as amended (references
herein to Sections of the Code are intended to refer to Sections of the Code as
enacted at the time of the Plan's adoption by the Board and as subsequently
amended, or to any substantially similar successor provisions of the Code
resulting from recodification, renumbering or otherwise).

          "Company" means DoveBid, Inc., a Delaware corporation.

          "Completed Transfer Notice" has the meaning set forth in Section
6.8(b) of the Plan.

          "Disability" means any physical or mental disability which results in
a Termination of Eligibility Status under applicable law, except that for
purposes of Section 6.1(c) of the Plan, the term "Disability" means permanent
and total disability within the meaning of Section 22(e)(3) of the Code.

          "Donative Transfer" with respect to Option Shares means any voluntary
Transfer by a transferor other than for value or the payment of consideration to
the transferor.

          "Eligible Participants" has the meaning set forth in Section 3 of the
Plan.

          "Exercise Price" has the meaning set forth in Section 5(c)(iii) of the
Plan.

          "Fair Market Value" means, with respect to the Shares and as of the
date that is relevant to such a determination (e.g., on the Grant Date), the
market price per share of such Shares determined by the Administrator,
consistent with the requirements of Section 422 of the Code (if applicable) and
to the extent consistent therewith, as follows:  (a) if the Shares are traded on
a stock exchange on the date in question, then the Fair Market Value will be
equal to the closing price reported by the applicable composite-transactions
report for such date; (b) if the Shares are traded over-the-counter on the date
in question and are classified as a national market issue, then the Fair Market
Value will be equal to the last-transaction price quoted by the NASDAQ system
for such date; (c) if the Shares are traded over-the-counter on the date in
question but are not classified as a national market issue, then the Fair Market
Value will be equal to the mean between the last reported representative bid and
asked prices quoted by the NASDAQ system for such date; and (d) if none of the
foregoing provisions is applicable, then the Fair Market Value will be
determined by the

                                      A-1

<PAGE>

Administrator in good faith on such basis as it deems appropriate, taking into
consideration the provisions of Section 260.140.50 of Title 10 of the California
Code of Regulations.

          "Grace Period" has the meaning set forth in Section 5(c)(v) of the
Plan.

          "Grant Date" means, with respect to an Option, the date on which the
Option Agreement evidencing that Option is entered into between the Company and
the Optionee, or such other date as may be set forth in that Option Agreement as
the "Grant Date" which will be the effective date of that Option Agreement.

          "Holder" means the holder of any Option Shares.

          "Initial Public Offering" means the closing of the first sale of
securities of the Company, or of any Successor Entity, to the public, through a
firm commitment underwriting, pursuant to an effective registration statement
filed with the Securities and Exchange Commission under the 1933 Act.

          "Involuntary Transfer" with respect to Option Shares includes, without
limitation, any of the following:  (a) an assignment of the Shares for the
benefit of creditors of the transferor; (b) a Transfer by operation of law; (c)
an execution of judgment against the Shares or the acquisition of record or
beneficial ownership of Shares by a lender or creditor; (d) a Transfer pursuant
to any decree of divorce, dissolution or separate maintenance, any property
settlement, any separation agreement or any other agreement with a spouse
(except for bona fide estate planning purposes) under which any Shares are
Transferred or awarded to the spouse of the transferor or are required to be
sold; or (e) a Transfer resulting from the filing by the transferor of a
petition for relief, or the filing of an involuntary petition against the
transferor, under the bankruptcy laws of the United States or of any other
nation.

          "ISO" means an "incentive stock option" as defined in Section 422 of
the Code.

          "1933 Act" means the Securities Act of 1933, as amended.

          "Offered Price" has the meaning set forth in Section 6.8(a) of the
Plan.

          "Offered Terms" has the meaning set forth in Section 6.8(a) of the
Plan.

          "Option" means an Option granted pursuant to this Plan.

          "Option Agreement" has the meaning set forth in Section 1 of the Plan.

          "Option Pool" has the meaning set forth in Section 4 of the Plan.

          "Option Shares" means Shares acquired pursuant to the exercise of an
Option, provided that for purposes of Section 6.7 and Section 6.8 of the Plan,
the term "Option Shares" includes all Shares issued by the Company to a Holder
(or his, her or its predecessor) by reason of such holdings, including any
securities which may be acquired as a result of a stock split, stock dividend,
and other distributions of Shares in the Company made upon, or in exchange for,
other securities of the Company.

          "Option Term" has the meaning set forth in Section 5(c)(iv) of the
Plan.

                                      A-2

<PAGE>

          "Optionee" means the person to whom an Option is granted and any
permitted transferee.

          "Permitted Transfer" has the meaning set forth in Section 6.7(c) of
the Plan.

          "Plan" has the meaning set forth in Section 1 of the Plan.

          "Proposed Transfer Notice" has the meaning set forth in Section 6.8(a)
of the Plan.

          "Shares" has the meaning set forth in Section 1 of the Plan.

          "Subsidiary" has the same meaning as "subsidiary corporation" as
defined in Section 424(f) of the Code.

          "Successor Entity" means a corporation or other entity that acquires
all or substantially all of the assets of the Company, or which is the surviving
or parent entity resulting from a Business Combination, as that term is defined
in Section 6.9 of the Plan.

          "Tax Withholding Liability" in connection with the exercise of any
Option means all federal and state income taxes, social security taxes, and any
other taxes applicable to the compensation income arising from the transaction,
required by applicable law to be withheld by the Company.

          "10% Shareholder" means a person who owns, either directly or
indirectly by virtue of the ownership attribution provisions set forth in
Section 424(d) of the Code at the time he or she is granted an Option, stock
possessing more than 10% of the total combined voting power or value of all
classes of stock of the Company and/or of its Subsidiaries.

          "Termination for Cause" means (a) in the case of an Optionee who is an
employee of the Company and/or any of its Subsidiaries, a termination by the
employer of the Optionee's employment for "cause" as defined by applicable law,
by any contract of employment or the Option Agreement, or pursuant to the "For
Cause Standard" set forth below, (b) in the case of an Optionee who is or which
is an advisor, consultant or independent contractor to the Company or any of its
Subsidiaries, a termination of the services relationship by the hiring party for
"cause" or breach of contract, as defined by applicable law, by any contract
between the parties or the Option Agreement, or pursuant to the "For Cause
Standard" set forth below, and (c) in the case of an Optionee who is a director
of the Company or any of its Subsidiaries, removal of such person from the board
of directors by action of the shareholders (or, if permitted by applicable law
and the articles, bylaws or other organic documents of the Company or the
Subsidiary, as the case may be, or pursuant to applicable law, by the other
directors).  The "For Cause Standard" referred to above means the good faith
determination of the Board that the Optionee has engaged in any act which
breaches any fiduciary duty to the Company, any of its Subsidiaries or their
shareholders, or in any act involving dishonesty or moral turpitude, or in any
act that materially and adversely affects the business, affairs or reputation of
the Company or any of its Subsidiaries.

          "Termination of Eligibility Status" means (a) in the case of any
employee of the Company or any of its Subsidiaries, a termination of his or her
employment, whether by the employee or employer, and whether voluntary or
involuntary, including without limitation as a result of the death or Disability
of the employee, (b) in the case of any advisor, consultant, or independent

                                      A-3

<PAGE>

contractor of the Company or any of its Subsidiaries, the termination of the
services relationship pursuant to any contract between the parties or otherwise
under applicable law, and (c) in the case of any director of the Company or any
of its Subsidiaries, the death of or resignation by the director or his or her
removal from the board in the manner provided by the articles of incorporation,
bylaws or other organic documents of the Company or Subsidiary, or otherwise in
accordance with applicable law.

          "Transfer" with respect to Option Shares, includes, without
limitation, a voluntary or involuntary sale, assignment, transfer, conveyance,
pledge, hypothecation, encumbrance, disposal, loan, gift, attachment or levy of
those Shares, including any Involuntary Transfer, Donative Transfer or transfer
by will or under the laws of descent and distribution.

          "Transferee" means a person to whom Shares are transferred.

          "Transferred Shares" has the meaning set forth in Section 6.8(b) of
the Plan.

          "Unvested Option" has the meaning set forth in Section 5(c)(vii) of
the Plan.

          "Unvested Shares" has the meaning set forth in Section 5(c)(viii) of
the Plan.

          "Vested Option" has the meaning set forth in Section 5(c)(vii) of the
Plan.

          "Vested Shares" has the meaning set forth in Section 5(c)(viii) of the
Plan.

                                      A-4

<PAGE>

                                 DOVEBID, INC.

                             STOCK OPTION AGREEMENT

        This Agreement is entered into as of _______, 2000 (the "Grant Date"),
between DoveBid, Inc., a Delaware corporation (the "Company"), and ________
("Optionee").

        The parties agree as follows:

        1. Option Grant. Subject to all of the terms and conditions of this
           --------------
Agreement and of the Company's 1999 Stock Option Plan (the "Option Plan"),
Optionee will have an option (the "Option") to purchase the number of shares of
the Company's common stock (the "Shares"), for an exercise price per share (the
"Exercise Price") as set forth below:

          Number of Shares subject to the Option:                      ___

          Exercise Price per Share:                                   $ __

          Vesting Start Date                                   _____, 2000

        This Option will have an Expiration Date of the tenth anniversary of the
Grant Date (subject to earlier termination as provided in the Option Plan).
This Option is intended to be treated as an Incentive Stock Option ("ISO")
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended.

        2.  Vesting and Exercise.
            --------------------

            (a)  Vesting.  Initially, the entire Option will be "Unvested"
                 -------
within the meaning of the Option Plan; portions of the Option will become
"Vested" within the meaning of the Option Plan on the following schedule,
provided that Optionee does not suffer a Termination of Eligibility Status
prior to each such vesting date:

               (i)  25% of the Shares will become Vested as of the first
anniversary of the Vesting Start Date; and

               (ii) the remaining 75% of the Shares will become Vested in equal
increments of 6-1/4% for each subsequent three month period, such that 100% of
the Option will be a Vested Option on the fourth anniversary of the Vesting
Start Date.
            (b)  Notice of Exercise.  Optionee or Optionee's representative may
exercise the Option by giving written notice to the Company pursuant to Section
6.5(a) of the Option Plan using the specified form of notice of exercise
attached to this Agreement as Exhibit A. The notice must be signed by the person
                              ---------
exercising the Option. (If the Option is being exercised by the representative
of Optionee, the notice must be accompanied by proof reasonably satisfactory to
the Company of the representative's right to exercise the Option.) Payment of
the Exercise Price must accompany the notice and must be in any of the following
forms: (i) cash or a check

<PAGE>

made payable to the Company; or (ii) the delivery of such other form of payment
approved by the Administrator.

            (c)  Withholding Taxes.  To the extent required by applicable
                 -----------------
federal, state, local or foreign law, and as a condition to the Company's
obligation to issue any Shares upon the exercise of the Option in full or in
part, Optionee will make arrangements reasonably satisfactory to the Company for
the payment of any withholding tax obligations that arise by reason of such
exercise.
            (d)  Issuance of Option Shares.  Subject to the provisions of the
                 -------------------------
Option Plan, after receiving a proper notice of exercise and payment of the
applicable Exercise Price and withholding taxes, the Company will cause to be
issued a certificate or certificates for the Option Shares as to which the
Option has been exercised, registered in the name of the person rightfully
exercising the Option. The Company will cause such certificate or certificates
to be delivered to such person.

    3.  Representations and Warranties of Optionee.  Optionee hereby
        ------------------------------------------
represents and warrants that: (a) Optionee is acquiring the Option granted
hereby, and will acquire any Shares obtained upon exercise of the Option, for
investment purposes only, for Optionee's own account, and with no view to the
distribution thereof; (b) Optionee understands that the Option and the Shares
that may be acquired by exercising the Option ("Option Shares") have not been
registered under the Securities Act of 1933, as amended (the "1933 Act") and
that the Option and the Option Shares are not freely tradeable and must be held
indefinitely, unless they are either registered under the 1933 Act or an
exemption from such registration is available; (c) Optionee understands that the
Company is under no obligation to register the Option or the Option Shares; and
(d) Optionee understands that the Option and the Option Shares have not been
qualified under the securities laws of any state and are to be offered and sold
pursuant to an exception from qualification under applicable state securities
laws.

    4.  No Employment Rights. This Agreement gives Optionee no right to be
        --------------------
retained as an employee of the Company or its Subsidiaries.

    5.  Terms of the Option Plan.  Optionee understands that the Option
        -----------------------
Plan includes important terms and conditions that apply to the Option, including
the following: the right of Optionee to exercise the Option; important
restrictions on the ability of Optionee to transfer the Option or to transfer
any of the Option Shares received upon exercise of the Option; early termination
of the Option following the occurrence of certain events, including Optionee's
Termination of Eligibility Status with the Company or its Subsidiaries; and the
right of the Company to repurchase Option Shares pursuant to the terms set forth
in the Plan. Optionee acknowledges having read the Option Plan and agrees to be
bound by its terms. Optionee further acknowledges that the Company has given no
tax advice concerning the Option and has advised Optionee to consult with his or
her own tax or financial advisor about the tax treatment of the Option and its
exercise.

     6. Miscellaneous. Capitalized terms not otherwise defined in this
        -------------
Agreement will have the meanings set forth in the Option Plan. Neither this
Agreement nor the Option is assignable by either party, except as expressly
provided in this Agreement or in the Option Plan.

                                      -2-

<PAGE>

All of the covenants and provisions of this Agreement by or for the benefit of
the Company or Optionee will bind and inure to the benefit of their respective
successors. This Agreement (including the Option Plan) constitutes the final and
complete expression of all of the terms of the understanding between the parties
hereto concerning the subject matter hereof. This Agreement may not be modified,
amended, altered or supplemented except by means of the execution and delivery
of a written instrument mutually executed by the Company and Optionee. This
Agreement will be construed and governed by the substantive laws of the State of
California.

     The parties have entered into this Agreement as of the Grant Date.

                                    DOVEBID, INC.

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

                                    Title:  Vice President and General Counsel

                                    Optionee:
                                    --------

                                    ----------------------------------
                                    (Signature)
                                    ________
                                    (Name)

                                    Address:

                                    -----------------------------------

                                    -----------------------------------

                                    Social Security No.:
                                                         --------------

Attachments:     (1)    Consent of Spouse
                 (2)    1999 Stock Option Plan

Exhibit A:  Form of Notice of Exercise of Stock Option

                                      -3-

<PAGE>

                               CONSENT OF SPOUSE
                               -----------------

        I am the spouse of _________________, who has entered into the Stock
Option Agreement with DoveBid, Inc. (the "Company").  Capitalized terms not
defined herein will have the meanings set forth in such Agreement, or in the
Company's 1999 Stock Option Plan (the "Option Plan"), which forms a part of such
Agreement.

        I have read and understand the Stock Option Agreement and the Option
Plan.  I acknowledge that, by executing this Consent, I am bound by the Stock
Option Agreement and the Option Plan, as to any and all interests I may have in
the Option Shares.  In particular, I understand and agree that the Option Shares
(including any interest that I may have therein) are subject to certain
repurchase rights by the Company and certain restrictions on transfer.

        I also agree with my spouse and the Company that if my spouse and I ever
get divorced or enter into any marital property settlement agreement, or if my
spouse or I ever seek a decree of separate maintenance, to the extent my spouse
has or can obtain assets other than the Option Shares in amounts and of value
sufficient to settle or satisfy any marital property claims I may have in the
value of the Option Shares, I will accept such other assets in settlement of
those claims.

        I agree that I will not do anything to try to prevent the operation of
any part of the Stock Option Agreement or the Option Plan.  I acknowledge that I
have had an opportunity to obtain independent counsel to advise me concerning
the matters contained herein.

                                         ------------------------------
                                         (Signature)

                                         Name:
                                               -------------------------

                                         Date:
                                               -------------------------

<PAGE>

                                                                       Exhibit A
                                                                       ---------

                                 DOVEBID, INC.

                       NOTICE OF EXERCISE OF STOCK OPTION

To the Secretary of DoveBid, Inc.

        The undersigned holder of an Option to purchase shares of common stock
of DoveBid, Inc. (the "Company"), hereby irrevocably elects to exercise the
purchase rights represented by such Option, and to purchase _________ shares of
common stock of the Company.  The undersigned makes payment of $_____________ in
the form of a check made payable to the Company, and requests that the
certificates for such shares be issued in the name of and delivered to the
undersigned at the address set forth below.

        The undersigned acknowledges that the shares being purchased (the
"Option Shares") are subject to substantial restrictions on transfer set forth
in the Company's 1999 Stock Option Plan (the "Plan") and agrees to be bound by
the terms and conditions of said Plan and the Stock Option Agreement entered
into by and between the Company and the undersigned.  The undersigned further
represents, warrants and acknowledges that, unless a registration statement is
in effect with respect to the sale of Option Shares:  (i) those Option Shares
are not freely tradeable and must be held indefinitely unless or an exemption
from such registration is available; (ii) the Company is under no obligation to
register those Option Shares; (iii) the undersigned is purchasing the Option
Shares for his or her own account and not with a view to or for sale in
connection with any distribution within the meaning of the 1933 Act, other than
as may be effected in compliance with the 1933 Act and the rules and regulations
promulgated thereunder; (iv) no one else will have any beneficial interest in
the Option Shares; and (v) the undersigned has no present intention of disposing
of the Option Shares or any interest therein at any particular time.

Dated:  _______________
                              ------------------------------------------------
                              (Signature)

                              ------------------------------------------------
                              Print name exactly as to be shown on certificate

                              Address:
                                       ---------------------------------------

                                       ---------------------------------------<PAGE>

                                                                  EXHIBIT 10.04

                                       *

This Lease between Dove Holdings, Inc. a California Corporation ("Landlord"),
and Dovebid, Inc. a Delaware Corporation, ("Tenant"), is dated April 22, 2002.

1.   LEASE OF PREMISES.

In consideration of the Rent (as defined at Section 5.4) and the provisions of
this Lease, Landlord leases to Tenant and Tenant leases from Landlord the
Premises shown by diagonal lines on the floor plan attached hereto as Exhibit
"A", and further described at Section 21. The Premises are located within the
Building and Project described in Section 2m. Tenant shall have the non-
exclusive right (unless otherwise provided herein) in common with Landlord,
other tenants, subtenants and invitees, to use of the Common Areas (as defined
at Section 2e).

2.   DEFINITIONS.

As used in this Lease, the following terms shall have the following meanings:

a.   Base Rent (initial): $3.75 per sq.ft. per month fully serviced/$45.00 per
     year.

b.   Base Year: The calendar year of 2002.

c.   Broker(s)
          Landlord's: N/A.

          Tenant's: N/A.

d.   Commencement Date: May 1, 2002.

e.   Common Areas: the building lobbies, common corridors and hallways,
     restrooms, garage and parking areas, stairways, elevators and other
     generally understood public or common areas. Landlord shall have the right
     to regulate or restrict the use of the Common Areas.

f.   Expense Stop: (fill in if applicable): $ N/A.

g.   Expiration Date: April 30, 2005, unless otherwise sooner terminated in
     accordance with the provisions of this Lease. Tenant may extend this lease
     twice for an additional three (3) years each extension under the same terms
     as set forth herein.

h.   Index (Section 5.2): United States Department of Labor, Bureau of Labor
     Statistics Consumer Price Index for All Urban Consumers, San Francisco -
     Oakland, San Jose Metropolitan Average, Subgroup "All Items" (1982 - 1984
     = 100).

i.   Landlord's Mailing Address: 1241 E. Hillsdale Blvd., Ste. 100 Foster City,
     CA 94404.

     Tenant's Mailing Address: 1241 E. Hillsdale Blvd., Ste. 100 Foster City, CA
     94404.

j.   Monthly installments of Base Rent (initial): $112,500.00 fully serviced per
     month.

k.   Parking: Tenant shall be permitted, free of charge to park 120 cars on a
     non-exclusive basis in the area(s) designated by Landlord for parking.
     Tenant shall abide by any and all parking regulations and rules established
     from time to time by Landlord or Landlord's parking operator.

l.   Premises: that portion of the Building containing approximately +30,000
                                                                     -
     square feet of Rentable Area, shown by diagonal lines on Exhibit "A",
     located on the first and second floors of the Building and known as Suites
     100, 201, 203, 204,and 210.

m.   Project: the building of which the Premises are a part (the "Building") and
     any other buildings or improvements on the real property (the "Property")
     located at 1241 E. Hillsdale Boulevard, Foster City. The Project is known
     as Dove Building.

n.   Rentable Area: as to both the Premises and the Project, the respective
     measurements of floor area as may from time to time be subject to lease by
     Tenant and all tenants of the Project, respectively, as determined by
     Landlord and applied on a consistent basis throughout the Project.

                                      (1)

<PAGE>

o.   Security Deposit (Section 7): $ None.

p.   State: the State of California.

q.   Tenant's First Adjustment Date (Section 5.2): the first day of the calendar
     month following the Commencement Date plus _____ months. See Base Rent
     Schedule.

r.   Tenant's Proportionate Share: 75.7%. Such share is a fraction, the
     numerator of which is the Rentable Area of the Premises, and the
     denominator of which is the Rentable Area of the Project, as determined by
     Landlord from time to time. The Project consists of 39,633 building(s)
     containing a total Rentable Area of 39,633 square feet.

s.   Tenant's Use Clause (Article 8): General office and all legally related
     uses.

     ---------------------------------------------------------------------------

t.   Term: the period commencing on the Commencement Date and expiring at
     midnight on the Expiration Date.

3.   EXHIBITS AND ADDENDA.

The exhibits and addenda listed below (unless lined out) are incorporated by
reference in this Lease:

a.   Exhibit "A"-Floor Plan showing the Premises.
b.
c.
d.
e.
f.   Addenda:

     See Addemdum to Office Building Lease
     --------------------------------------------------------------------------

     --------------------------------------------------------------------------

     --------------------------------------------------------------------------

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4.   DELIVERY OF POSSESSION.

If for any reason Landlord does not deliver possession of the Premises to Tenant
on the Commencement Date, Landlord shall not be subject to any liability for
such failure, the Expiration Date shall not change and the validity of this
Lease shall not be impaired, but Rent shall be abated until delivery of
possession. "Delivery of possession" shall be deemed to occur on the date
Landlord completes Landlord's Work as defined in Exhibit "C." If Landlord
permits Tenant to enter into possession of the Premises before the Commencement
Date, such possession shall be subject to the provisions of this Lease,
including, without limitation, the payment of Rent.

5.   RENT.

5.1. Payment of Base Rent. Tenant agrees to pay the Base Rent for the Premises.
Monthly installments of Base Rent shall be payable in advance on the first day
of each calendar month of the Term. If the Term begins (or ends) on other than
the first (or last) day of a calendar month, the Base Rent for the partial month
shall be prorated on a per diem basis. Tenant shall pay Landlord the first
Monthly Installment of Base Rent when Tenant executes the Lease.

5.2  Adjusted Base Rent.
     a. The Base Rent (and the corresponding Monthly Installments of Base Rent)
     set forth at Section 2a shall be adjusted annually (the "Adjustment Date"),
     commencing on Tenant's First Adjustment Date. Adjustments, if any, shall be
     based upon increases (if any) in the Index. The Index in publication three
     (3) months before the Commencement Date shall be the "Base Index." The
     Index in publication three (3) months before each Adjustment Date shall be
     the "Comparison Index." As of each Adjustment Date, the Base Rent payable
     during the ensuring twelve-month period shall be determined by increasing
     the initial Base Rent by a percentage equal to the percentage increase, if
     any, in the Comparison Index over the Base Index. If the Comparison Index
     for any Adjustment Date is equal to or less than the Comparison Index for
     the preceding Adjustment Date (or the Base Index, in the case of First
     Adjustment Date), the Base Rent for the ensuing twelve-month period shall
     remain the amount of Base Rent payable during the preceding twelve-month
     period. When the Base Rent payable as of each Adjustment Date is
     determined, Landlord shall promptly give Tenant written notice of such
     adjusted Base Rent and the manner in which it was computed. The Base Rent
     as so adjusted from time to time shall be the "Base Rent" for all purposes
     under this Lease.

     b. If at any Adjustment Date the Index no longer exists in the form
     described in this Lease, Landlord may substitute any substantially
     equivalent official index published by the Bureau of Labor Statistics or
     its successor. Landlord shall use any appropriate conversion factors to
     accomplish such substitution. The substitute index shall then become the
     "Index" hereunder.

5.3  Project Operating Costs.
     a. In order that the Rent payable during the Term reflect any increase in
     Project Operating Costs, Tenant agrees to pay to Landlord as Rent, Tenant's
     Proportionate Share of all increases in costs, expenses and obligations
     attributable to the Project and its operation, all as provided below.

     b. If, during any calendar year during the Term, Project Operating Costs
     exceed the Project Operating Costs for the Base Year, Tenant shall pay to
     Landlord, in addition to the Base Rent and all other payments due under
     this Lease, an amount equal to Tenant's Proportionate Share of such excess
     Project Operating Costs in accordance with the provisions of this Section
     5.3b.

                                      (2)

<PAGE>

(1)  The term "Project Operating Costs" shall include all those items described
     in the following subparagraphs (a) and (b).

     (a)  All taxes, assessments, water and sewer charges and other similar
     governmental charges levied on or attributable to the Building or Project
     or their operation, including without limitation, (i) real property taxes
     or assessments levied or assessed against the Building or Project, (ii)
     assessments or charges levied or assessed against the Building or Project
     by any redevelopment agency, (iii) any tax measured by gross rentals
     received from the leasing of the Premises, Building or Project, excluding
     any net income, franchise, capital stock, estate or inheritance taxes
     imposed by the State or federal government or their agencies, branches or
     departments; provided that if at any time during the Term any governmental
     entity levies, assesses or imposes on Landlord any (1) general or special,
     ad valorem or specific, excise, capital levy or other tax, assessment, levy
     or charge directly on the Rent received under this Lease or on the rent
     received under any other leases of space in the Building or Project, or (2)
     any license fee, excise or franchise tax, assessment, levy or charge
     measured by or based, in whole or in part, upon such rent, or (3) any
     transfer, transaction, or similar tax, assessment, levy or charge based
     directly or indirectly upon the transaction represented by this Lease or
     such other leases, or (4) any occupancy, use, per capita or other tax,
     assessment, levy or charge based directly or indirectly upon the use or
     occupancy of the Premises or other premises within the Building or Project,
     then any such taxes, assessments, levies and charges shall be deemed to be
     included in the term Project Operating Costs. If at any time during the
     Term the assessed valuation of, or taxes on, the Project are not based on a
     completed Project having at least eighty-five percent (85%) of the Rentable
     Area occupied, then the "taxes" component of Project Operating Costs shall
     be adjusted by Landlord to reasonably approximate the taxes which would
     have been payable if the Project were completed and at least eighty-five
     percent (85%) occupied.

     (b)  Operating costs incurred by Landlord in maintaining and operating the
     Building and Project, including without limitation the following: costs of
     (1) utilities; (2) supplies; (3) insurance (including public liability,
     property damage, earthquake, and fire and extended coverage insurance for
     the full replacement cost of the Building and Project as required by
     Landlord or its lenders for the Project; (4) services of independent
     contractors; (5) compensation (including employment taxes and fringe
     benefits) of all persons who perform duties connected with the operation,
     maintenance, repair or overhaul of the Building or Project, and equipment,
     improvements and facilities located within the Project, including without
     limitation engineers, janitors, painters, floor waxers, window washers,
     security and parking personnel and gardeners (but excluding persons
     performing services not uniformly available to or performed for
     substantially all Building or Project tenants); (6) operation and
     maintenance of a room for delivery and distribution of mail to tenants of
     the Building or Project as required by the U.S. Postal Service (including,
     without limitation, an amount equal to the fair market rental value of the
     mail room premises); (7) management of the Building or Project, whether
     managed by Landlord or an independent contractor (including, without
     limitation, an amount equal to the fair market value of any on-site
     manager's office); (8) rental expenses for (or a reasonable depreciation
     allowance on) personal property used in the maintenance, operation or
     repair of the Building or Project; (9) costs, expenditures or charges
     (whether capitalized or not) required by any governmental or quasi-
     governmental authority; (10) amortization of capital expenses (including
     financing costs) (i) required by a governmental entity for energy
     conversation or life safety purposes, or (ii) made by Landlord to reduce
     Project Operating Costs; and (11) any other costs or expenses incurred by
     Landlord under this Lease and not otherwise reimbursed by tenants of the
     Project. If at any time during the Term, less than eighty-five percent
     (85%) of the Rentable Area of the Project is occupied, the "operating
     costs" component of Project Operating Costs shall be adjusted by Landlord
     to reasonably approximate the operating costs which would have been
     incurred if the Project had been at least eighty-five percent (85%)
     occupied.

(2)  Tenant's Proportionate Share of Project Operating Costs shall be payable by
     Tenant to Landlord as follows:

     (a)  Beginning with the calendar year following the Base Year and for each
     calendar year thereafter ("Comparison Year"), Tenant shall pay Landlord an
     amount equal to Tenant's Proportionate Share of the Project Operating Costs
     incurred by Landlord in the Comparison Year which exceeds the total amount
     of Project Operating Costs payable by Landlord for the Base Year. This
     excess is referred to as the "Excess Expenses."

     (b)  To provide for current payments of Excess Expenses, Tenant shall, at
     Landlord's request, pay as additional rent during each Comparison Year, an
     amount equal to Tenant's Proportionate Share of the Excess Expenses payable
     during such Comparison Year, as estimated by Landlord from time to time.
     Such payments shall be made in monthly installments, commencing on the
     first day of the month following the month in which Landlord warrants
     Tenant of the amount it is to pay hereunder and continuing until the first
     day of the month following the month in which Landlord gives Tenant a new
     notice of estimated Excess Expenses. It is the intention hereunder to
     estimate from time to time the amount of the Excess Expenses for each
     Comparison Year and Tenant's Proportionate Share thereof, and then to make
     an adjustment in the following year based on the actual Excess Expenses
     incurred for that Comparison Year.

     (c)  On or before April 1 of each Comparison Year after the first
     Comparison Year (or as soon thereafter as is practical), Landlord shall
     deliver to Tenant a statement setting forth Tenant's Proportionate Share of
     the Excess Expenses for the preceding Comparison Year. If Tenant's
     Proportionate Share of the actual Excess Expenses for the previous
     Comparison Year exceeds the total of the estimated monthly payments made by
     Tenant for such year, Tenant shall pay Landlord the amount of the
     deficiency within ten (10) days of the receipt of the statement. If such
     total exceeds Tenant's Proportionate Share of the actual Excess Expenses
     for such Comparison Year, then Landlord shall credit against Tenant's next
     ensuing monthly installment(s) of additional rent an amount equal to the
     difference until the credit is exhausted. If a credit is due from Landlord
     on the Expiration Date, Landlord shall pay Tenant the amount of the credit.
     The obligations of Tenant and Landlord to make payments required under this
     Section 5.3 shall survive the Expiration Date.

     (d)  Tenant's Proportionate Share of Excess Expenses in any Comparison Year
     having less than 365 days shall be appropriately prorated.

     (e)  If any dispute arises as to the amount of any additional rent due
     hereunder, Tenant shall have the right after reasonable notice and at
     reasonable times to inspect Landlord's accounting records at Landlord's
     accounting office and, if after such inspection Tenant still disputes the
     amount of additional rent owed, a certification as to the proper amount
     shall be made by Landlord's certified public accountant, which
     certification shall be final and conclusive. Tenant agrees to pay the cost
     of such certification unless it is determined that Landlord's original
     statement overstated Project Operating Costs or Tenant's share thereof by
     more than two and one half percent (2 1/2%).

                                      (3)

<PAGE>

     (f)  If this Lease sets forth an Expense Stop at Section 2f, then during
     the Term Tenant shall be liable for Tenant's Proportionate Share of any
     actual Project Operating Costs which exceed the amount of the Expense Stop.
     Tenant shall make current payments of such excess costs during the Term in
     the same manner as is provided for payment of Excess Expenses under the
     applicable provisions of Section 5.3b(2)(b) and (c) above.

5.4  Definition of Rent.  All costs and expenses which Tenant assumes or agrees
to pay to Landlord under this Lease shall be deemed additional rent (which,
together with the Base Rent is sometimes referred to as the "Rent"). The Rent
shall be paid to the Building manager (or other person) and at such place, as
Landlord may from time to time designate in writing, without any prior demand
therefor and without deduction or offset, in lawful money of the United States
of America.

5.5  [deleted]

5.6  Taxes Payable by Tenant. In addition to the Rent and any other charges to
be paid by Tenant hereunder, Tenant shall reimburse Landlord upon demand for any
and all taxes payable by Landlord (other than net income taxes) which are not
otherwise reimbursable under this Lease, whether or not now customary or within
the contemplation of the parties, where such taxes are upon, measured by or
reasonably attributable to (a) the cost or value of Tenant's equipment,
furniture, fixtures and other personal property located in the Premises, or the
cost or value of any leasehold improvements made in or to the Premises by or for
Tenant, other than Building Standard Work made by Landlord, regardless of
whether title to such improvements is held by Tenant or Landlord; (b) the gross
of net Rent payable under this Lease, including, without limitation, any rental
or gross receipts tax levied by any taxing authority with respect to the receipt
of the Rent hereunder; (c) the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy by Tenant of the Premises or
any portion thereof; or (d) this transaction or any document to which Tenant is
a party creating or transferring an interest or an estate in the Premises. If it
becomes unlawful for Tenant to reimburse Landlord for any costs as required
under this Lease, the Base Rent shall be revised to net Landlord the same net
Rent after imposition of any tax or other charge upon Landlord as would have
been payable to Landlord but for the reimbursement being unlawful.

6.  INTEREST AND LATE CHARGES.

If Tenant fails to pay when due any Rent or other amounts or charges which
Tenant is obligated to pay under the terms of this Lease, the unpaid amounts
shall bear interest at the maximum rate then allowed by law. Therefore, in
addition to interest, if any such installment is not received by Landlord
within ten (10) days from the date it is due, Tenant shall pay Landlord a late
charge equal to six percent (6%) of such installment. Landlord and Tenant agree
that this late charge represents a reasonable estimate of such costs and
expenses and is fair compensation to Landlord for the loss suffered from such
nonpayment by Tenant. Acceptance of any interest or late charge shall not
constitute a waiver of Tenant's default with respect to such nonpayment by
Tenant nor prevent Landlord from exercising any other rights or remedies
available to Landlord under this Lease.

7.  SECURITY DEPOSIT.

8.  TENANT'S USE OF THE PREMISES.

Tenant shall use the Premises solely for the purposes set forth in Tenant's Use
Clause.  Tenant shall not use or occupy the Premises in violation of law or any
covenant, condition or restriction affecting the Building or Project or the
certificate of occupancy issued for the Building or Project, and shall, upon
notice from Landlord, immediately discontinue any use of the Premises which is
declared by any governmental authority having jurisdiction to be a violation of
law or the certificate of occupancy.  Tenant, at Tenant's own cost and expense,
shall comply with all laws, ordinances, regulations, rules and/or any directions
of any governmental agencies or authorities having jurisdiction which shall, by
reason of the nature of Tenant's use or occupancy of the Premises, impose any
duty upon Tenant or Landlord with respect to the Premises or its use or
occupation. A judgement of any court of competent jurisdiction or the admission
by Tenant in any action or proceeding against Tenant that Tenant has violated
any such laws, ordinances, regulations, rules and/or directions in the use of
the Premises shall be deemed to be a conclusive determination of that fact as
between Landlord and Tenant. Tenant shall not do or permit to be done anything
which will invalidate or increase the cost of any fire, extended coverage or
other insurance policy covering the Building or Project and/or property located
therein, and shall comply with all rules, orders, regulations, requirements and
recommendations of the Insurance Services Office or any other organization
performing a similar function. Tenant shall

                                      (4)

<PAGE>

promptly upon demand reimburse Landlord for any additional premium charged for
such policy by reason of Tenant's failure to comply with the provisions of this
Article. Tenant shall not do or permit anything to be done in or about the
Premises which will in any way obstruct or interfere with the rights of other
tenants or occupants of the Building or Project, or injure or annoy them, or use
or allow the Premises to be used for any improper, immoral, unlawful or
objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance
in, on or about the Premises. Tenant shall not commit or suffer to be committed
any waste in or upon the Premises.

9. SERVICES AND UTILITIES.

Landlord agrees to furnish to the Premises during generally recognized business
days, and during hours determined by Landlord in its sole discretion, and
subject to the Rules and Regulations of the Building or Project, electricity for
normal desk top office equipment and normal copying equipment, and heating,
ventilation and air conditioning ("HVAC") as required in Landlord's reasonable
judgement for the comfortable use and occupancy of the Premises. If Tenant
desires HVAC at any other time, Landlord shall use reasonable efforts to furnish
such service upon reasonable notice from Tenant and Tenant shall pay Landlord's
actual costs therefor on demand. Landlord shall also maintain and keep lighted
the common stairs, common entries and restrooms in the Building. Landlord shall
not be in default hereunder or be liable for any damages directly or indirectly
resulting from, nor shall the Rent be abated by reason of (i) the installation,
use or interruption of use of any equipment in connection with the furnishing of
any of the foregoing services, (ii) failure to furnish or delay in furnishing
any such services where such failure or delay is caused by accident or any
condition or event beyond the reasonable control of Landlord, or by the making
of necessary repairs or improvements to the Premises, Building or Project, or
(iii) the limitation, curtailment or rationing of, or restrictions on, use of
water, electricity, gas or any other form of energy serving the Premises,
Building or Project. Landlord shall not be liable under any circumstances for a
loss of or injury to property or business, however occurring, through or in
connection with or incidental to failure to furnish any such services. If Tenant
uses heat generating machines or equipment in the Premises which affect the
temperature otherwise maintained by the HVAC system, Landlord reserves the right
to install supplementary air conditioning units in the Premises and the cost
thereof, including the cost of installation, operation and maintenance thereof,
shall be paid by Tenant to Landlord upon demand by Landlord.

Tenant shall not, without the written consent of Landlord, use any apparatus or
device in the Premises, including without limitation, electronic data processing
machines, punch card machines or machines using in excess of 120 volts, which
consumes more electricity than is usually furnished or supplied for the use of
premises as general office space, as determined by Landlord. Tenant shall not
connect any apparatus with electric current except through existing electrical
outlets in the Premises. Tenant shall not consume water or electric current in
excess of that usually furnished or supplied for the use of premises as general
office space (as determined by Landlord), without first procuring the written
consent of Landlord, which Landlord may refuse, and in the event of consent,
Landlord may have installed a water meter or electrical current meter in the
Premises to measure the amount of water or electric current consumed. The cost
of any such meter and of its installation, maintenance and repair shall be paid
for by the Tenant and Tenant agrees to pay to Landlord promptly upon demand for
all such water and electric current consumed as shown by said meters, at the
rates charged for such services by the local public utility plus any additional
expense incurred in keeping account of the water and electric current so
consumed. If a separate meter is not installed, the excess cost for such water
and electric current shall be established by an estimate made by a utility
company or electrical engineer hired by Landlord at Tenant's expense.

Nothing contained in this Article shall restrict Landlord's right to require at
any time separate metering of utilities furnished to the Premises. In the event
utilities are separately metered, Tenant shall pay promptly upon demand for all
utilities consumed at utility rates charged by the local public utility plus any
additional expense incurred by Landlord in keeping account of the utilities so
consumed. Tenant shall be responsible for the maintenance and repair of any such
meters at its sole cost.

Landlord shall furnish elevator service, lighting replacement for building
standard lights, restroom supplies, window washing and janitor services in a
manner that such services are customarily furnished to comparable office
buildings in the area.

10. CONDITION OF THE PREMISES.

Tenant's taking possession of the Premises shall be deemed conclusive evidence
that as of the date of taking possession the Premises are in good order and
satisfactory condition, except for such matters as to which Tenant gave Landlord
notice on or before the Commencement Date. No promise of Landlord to alter,
remodel, repair or improve the Premises, the Building or the Project and no
representation, express or implied, respecting any matter or thing relating to
the Premises, Building, Project or this Lease (including, without limitation,
the condition of the Premises, the Building or the Project) have been made to
Tenant by Landlord or its Broker or Sales Agent, other than as may be contained
herein or in a separate exhibit or addendum signed by Landlord and Tenant.

11. CONSTRUCTION, REPAIRS AND MAINTENANCE.

    a. Landlord's Obligations. Landlord shall perform Landlord's Work to the
    Premises as described in Exhibit "C." Landlord shall maintain in good order,
    condition and repair the Building and all other portions of the Premises not
    the obligation of Tenant or of any other tenant in the Building.

    b. Tenant's Obligations.

       (1)

       (2) Tenant at Tenant's sole expense shall, except for services furnished
       by Landlord pursuant to Article 9 hereof, maintain the Premises in good
       order, condition and repair, including the interior surfaces of the
       ceilings, walls and floors, all doors, all interior windows, all
       plumbing, pipes and fixtures, electrical wiring, switches and fixtures,
       Building Standard furnishings and special items and equipment installed
       by or at the expense of Tenant.

       (3) Tenant shall be responsible for all repairs and alterations in and to
       the Premises, Building and Project and the facilities and systems
       thereof, the need for which arises out of (i) Tenant's use or occupancy
       of the Premises, (ii) the installation, removal, use or operation of
       Tenant's Property (as defined in Article 13) in the Premises, (iii) the
       moving of Tenant's Property into or out of the Building, or (iv) the act,
       omission, misuse or negligence of Tenant, its agents, contractors,
       employees or invitees.

                                      (5)

<PAGE>

        (4) If Tenant fails to maintain the Premises in good order, condition
        and repair, Landlord shall give Tenant notice to do such acts as are
        reasonably required to so maintain the Premises. If Tenant fails to
        promptly commence such work and diligently prosecute it to completion,
        then Landlord shall have the right to do such acts and expend such funds
        at the expense of Tenant as are reasonably required to perform such
        work. Any amount so expended by Landlord shall be paid by Tenant
        promptly after demand with interest at the prime commercial rate then
        being charged by Bank of America NT & SA plus two percent (2%) per
        annum, from the date of such work, but not to exceed the maximum rate
        then allowed by law. Landlord shall have no liability to Tenant for any
        damage, inconvenience, or interference with the use of the Premises by
        Tenant as a result of performing any such work.

     c. Compliance with Law. Landlord and Tenant shall each do all acts required
     to comply with all applicable laws, ordinances, and rules of any public
     authority relating to their respective maintenance obligations as set forth
     herein.

     d. [deleted]

     e. Load and Equipment Limits. Tenant shall not place a load upon any floor
     of the Premises which exceeds the load per square foot which such floor was
     designed to carry, as determined by Landlord or Landlord's structural
     engineer. The cost of any such determination made by Landlord's structural
     engineer shall be paid for by Tenant upon demand. Tenant shall not install
     business machines or mechanical equipment which cause noise or vibration to
     such a degree as to be objectionable to Landlord or other Building tenants.

     f. Provided Land1ord is without fault except as otherwise expressly
     provided in this Lease, Landlord shall have no liability to Tenant nor
     shall Tenant's obligations under this Lease be reduced or abated in any
     manner whatsoever by reason of any inconvenience, annoyance, interruption
     or injury to business arising from Landlord's making any repairs or changes
     which Landlord is required or permitted by this Lease or by any other
     tenant's lease or required by law to make in or to any portion of the
     Project, Building or the Premises. Landlord shall nevertheless use
     reasonable efforts to minimize any interference with Tenant's business in
     the Premises.

     g. Tenant shall give Landlord prompt notice of any damage to or defective
     condition in any part or appurtenance of the Building's roof foundations,
     structural components, mechanical, electrical, plumbing, HVAC or other
     systems serving, located in, or passing through the Premises.

     h. Upon the expiration or earlier termination of this Lease, Tenant shall
     return the Premises to Landlord clean and in the same condition as on the
     date Tenant took possession, except for normal wear and tear. Any damage to
     the Premises, including any structural damage, resulting from Tenant's use
     or from the removal of Tenant's fixtures, furnishings and equipment
     pursuant to Section 13b shall be repaired by Tenant at Tenant's expense.

12.  ALTERATIONS AND ADDITIONS.

     a. Tenant shall not make any additions, alterations or improvements to the
     Premises without obtaining the prior written consent of Landlord.
     Landlord's consent may be conditioned on Tenant's removing any such
     additions, alterations or improvements upon the expiration of the Term and
     restoring the Premises to the same condition as on the date Tenant took
     possession. All work with respect to any addition, alteration or
     improvement shall be done in a good and workmanlike manner by properly
     qualified and licensed personnel approved by Landlord, and such work shall
     be diligently prosecuted to completion. Landlord may, at Landlord's option,
     require that any such work be performed by Landlord's contractor, in which
     case the cost of such work shall be paid for before commencement of the
     work.

     b. Tenant shall pay the costs of any work done on the Premises pursuant to
     Section 12a, and shall keep the Premises, Building and Project free and
     clear of liens of any kind. Tenant shall indemnify, defend against and keep
     Landlord free and harmless from all liability, loss, damage, costs,
     attorneys' fees and any other expense incurred on account of claims by any
     person performing work or furnishing materials or supplies for Tenant or
     any person claiming under Tenant.

     Tenant shall keep Tenant's leasehold interest, and any additions or
     improvements which are or become the property of Landlord under this Lease,
     free and clear of all attachment or judgment liens. Before the actual
     commencement of any work for which a claim or lien may be filed, Tenant
     shall give Landlord notice of the intended commencement date a sufficient
     time before that date to enable Landlord to post notices of non-
     responsibility or any other notices which Landlord deems necessary for the
     proper protection of Landlord's interest in the Premises, Building or the
     Project, and Landlord shall have the right to enter the Premises and post
     such notices at any reasonable time.

     c. Landlord may require, at Landlord's sole option, that Tenant provide to
     Landlord, at Tenant's expense, a lien and completion bond in an amount
     equal to at least one and one-half (1 1/2) times the total estimated cost
     of any additions, alterations or improvements to be made in or to the
     Premises, to protect Landlord against any liability for mechanic's and
     materialmen's liens and to insure timely completion of the work. Nothing
     contained in this Section 12c shall relieve Tenant of its obligation under
     Section 12b to keep the Premises, Building and Project free of all liens.

     d. Unless their removal is required by Landlord as provided in Section 12a,
     all additions, alterations and improvements made to the Premises shall
     become the property of Landlord and be surrendered with the Premises upon
     the expiration of the Term; provided, however, Tenant's equipment,
     machinery and trade fixtures which can be removed without damage to the
     Premises shall remain the property of Tenant and may be removed, subject to
     the provisions of Section 13b.

13.  LEASEHOLD IMPROVEMENTS; TENANT'S PROPERTY.

     a. All fixtures, equipment, improvements and appurtenances attached to or
     built into the Premises at the commencement of or during the Term, whether
     or not by or at the expense of Tenant ("Leasehold Improvement"), shall be
     and remain a part of the Premises, shall be the property of Landlord and
     shall not be removed by Tenant, except as expressly provided in Section
     13b.

                                      (6)

<PAGE>

     b. All movable paritions, business and trade fixtures, machinery and
     equipment, communications equipment and office equipment located in the
     Premises and acquired by or for the account of Tenant, without expense to
     Landlord, which can be removed without structural damage to the Building,
     and all furniture, furnishings and other articles of movable personal
     property owned by Tenant and located in the Premise (collectively "Tenant's
     Property") shall be and shall remain the property of Tenant and may be
     removed by Tenant at any time during the Term; provided that if any of
     Tenant's Property is removed, Tenant shall promptly repair any damage to
     the Premises or to the Building resulting from such removal.

14.  RULES AND REGULATIONS.

Tenant agrees to comply with (and cause its agents, contractors, employees and
invitees to comply with) the rules and regulations attached hereto Exhibit "D"
and with such reasonable modifications thereof and additions thereto as Landlord
may from time to time make. Landlord shall not be responsible for any violaton
of said rules and regulations by other tenants or occupants of the Building or
Project.

15.  CERTAIN RIGHTS RESERVED BY LANDDLORD.

Landlord reserves the following rights, exercisable without libility to Tenant
for (a) damage or injury to property, person or business, (b) causing an actual
or constructive eviction from the Premises, or (c) disturbing Tenant's use or
possession of the Premises:

     a. To name the Building and Project and to change the name or street
     address of the Building or Project;

     b. To install and maintain all signs on the exterior and interior of the
     Building and Project;

     c. To have pass keys to the Premises and all doors within the Premises,
     excluding Tenant's vaults and safes;

     d. At any time during the Term, and on reasonable prior notice to Tenant,
     to inspect the Premises, and to show the Premises to any prospective
     purchaser or mortgagee of the Project, or to any assignee of any mortgage
     on the Project, or to others having an interest in the Project or Landlord,
     and during the last six months of the Term, to show the Premises to
     prospective tenants thereof; and

     e. To enter the Premises for the purpose of making inspections, repairs,
alterations, additions or improvements to the Premises or the Building
(including, without limitation, checking, calibrating, adjusting or balancing
controls and other parts of the HVAC systems), and to take all steps as may be
necessary or desirable for the safety, protection, maintenance or preservation
of the premises or the Building or Landlords's interest therein, or as may be
necessary or desirable for the operation or improvement of the Building or in
order to comply with laws, orders or requirements of govermental or other
authority. Landlord agrees to use its best efforts (except in any emergency) to
minimize interference with Tenant's business in the Premises in the course of
any such entry.

16.  ASSIGNMENT AND SUBLETTING

No assignment of this Lease or sublease of all or any part of the Premises shall
be permitted, except as provided in this Article 16.

     a. Tenant shall not, without the prior written consent of Landlord, assign
     or hypothecate this Lease or any interest herein or sublet the Premises
     or any part thereof, or permit the use of the Premises by any party other
     than Tenant. Any of the foregoing acts without such consent shall be void
     and shall, at the option of landlord, terminate this Lease. This Lease
     shall not, nor shall any interest of Tenant herein, be assignable by
     operation of law without the written consent of Landlord.

     b. If at any time or from time to time during the Term Tenant desires to
     assign this Lease or sublet all or any part of the Premises, Tenant shall
     give notice to Landlord setting forth the terms and provisions of the
     proposed assignment or sublease, and the identify of the proposed assignee
     or subltenant. Tenant shall promptly supply Landlord with such information
     concerning the business background and financial condition of such
     proposed assignee or subtenant as Landlord may reasonably request. Landlord
     shall have the option, exercisably by notice given to Tenant within twenty
     (20) days after Tenant's notice is given, either to sublet such space from
     Tenant at the rental and on the other terms set forth in this Lease for the
     term set forth in Tenant's notice, or, in the case of an assignment, to
     terminate this Lease. If Landlord does not exercise such option, Tenant
     may assign the Lease or sublet such space to such proposed assignee or
     subtenant on the following further conditions:

          (1) Landlord shall have the right to approve such proposed assignee
          or subtenant, which approval shall not be unreasonably withheld;

          (2) The assignment or sublease shall be on the substantially same
          terms set forth in the notice given to Landlord;

          (3) No assignment or sublease shall be valid and no assignee or
          sublessee shall take possession of the Premises until an executed
          counterpart of such assignment or sublease has been delivered to
          Landlord;

          (4) No assignee or sublessee shall have a further right to assign or
          sublet except on the terms herein contained; and

          (5) Any sums or other economic consideration received by Tenant as a
          result of such assignment or subletting, however denominated under the
          assignment or sublease, which exceed, in the aggregate, (i) the total
          sums which Tenant is obligated to pay Landlord under this Lease
          (prorated to reflect obligations allocable to any portion of the
          Premises subleased), plus (ii) any real estate brokerage commissions
          or fees payable in connection with such assignment or subletting,
          shall be paid to Landlord as additional rent under this Lease without
          affecting or reducing any other obligations of Tenant hereunder.

c. Notwithstanding the provisions of paragraphs a and b above, Tenant may assign
this Lease or sublet the Premises or any portion thereof, without Landlord's
consent and without extending any recapture or termination option to Landlord,
to any corporation which controls, is controlled by or is under common control
with Tenant, or to any corporation resulting from a merger or consolidation with
Tenant, or to any person or entity which acquires all the assets of Tenant's
business as a going concern, provided that (i) the assignee or sublessee
assumes, in full, the obligations of Tenant under this Lease, (ii) Tenant
remains fully liable under this Lease, and (iii) the use of the Premises under
Article 8 remains unchanged.

                                      (7)

<PAGE>

     d.   No subletting or assignment shall release Tenant of Tenant's
     obligations under this Lease or alter the primary liability of Tenant to
     pay the Rent and to perform all other obligations to be performed by Tenant
     hereunder. The acceptance of Rent by Landlord from any other person shall
     not be deemed to be a waiver by Landlord of any provision hereof. Consent
     to one assignment or subletting shall not be deemed consent to any
     subsequent assignment or subletting. In the event of default by an assignee
     or subtenant of Tenant or any successor of Tenant in the performance of any
     of the terms hereof, Landlord may proceed directly against Tenant without
     the necessity of exhausting remedies against such assignee, subtenant or
     successor. Landlord may consent to subsequent assignments of the Lease or
     sublettings or amendments or modifications to the Lease with assignees of
     Tenant, without notifying Tenant, or any successor of Tenant, and without
     obtaining its or their consent thereto and any such actions shall not
     relieve Tenant of liability under this Lease.

     e.   If Tenant assigns the Lease or sublets the Premises or requests the
     consent of Landlord to any assignment or subletting or if Tenant requests
     the consent of Landlord for any act that Tenant proposes to do, then Tenant
     shall, upon demand, pay Landlord an administrative fee of One Hundred Fifty
     and No/100ths Dollars ($150.00) plus any attorneys' fees reasonably not to
     exceed Three Hundred and No/100th Dollars ($300.00) incurred by Landlord in
     connection with such act or request.

17.  HOLDING OVER.

If after expiration of the Term, Tenant remains in possession of the Premises
with Landlord's permission (express or implied), Tenant shall become a tenant
from month to month only, upon all the provisions of this Lease (except as to
term and Base Rent), but the "Monthly Installments of Base Rent" payable by
Tenant shall be increased to one hundred twenty five percent (125%) of the
Monthly Installments of Base Rent payable by Tenant at the expiration of the
Term. Such monthly rent shall be payable in advance on or before the first day
of each month. If either party desires to terminate such month to month tenancy,
it shall give the other party not less than thirty (30) days advance written
notice of the date of termination.

18.  SURRENDER OF PREMISES.

     a.   Tenant shall peaceably surrender the Premises to Landlord on the
     Expiration Date, in broom-clean condition and in as good condition as when
     Tenant took possession, except for (i) reasonable wear and tear, (ii) loss
     by fire or other casualty, and (iii) loss by condemnation. Tenant shall,
     on Landlord's request, remove Tenant's Property on or before the Expiration
     Date and promptly repair all damage to the Premises or Building caused by
     such removal.

     b.   If Tenant abandons or surrenders the Premises, or is dispossessed by
     process of law or otherwise, any of Tenant's Property left on the Premises
     shall be deemed to be abandoned, and, at Landlord's option, title shall
     pass to Landlord under this Lease as by a bill of sale. If Landlord elects
     to remove all or any part of such Tenant's Property, the cost of removal,
     including repairing any damage to the Premises or Building caused by such
     removal, shall be paid by Tenant. On the Expiration Date Tenant shall
     surrender all keys to the Premises.

19.  DESTRUCTION OR DAMAGE

     a.   If the Premises or the portion of the Building necessary for Tenant's
     occupancy is damaged by fire, earthquake, act of God, the elements of other
     casualty, Landlord shall, subject to the provisions of this Article,
     promptly repair the damage, if such repairs can, in Landlord's opinion, be
     completed within (90) ninety days. If Landlord determines that repairs can
     be completed within ninety (90) days, this Lease shall remain in full force
     and effect, except that if such damage is not the result of the negligence
     or willful misconduct of Tenant or Tenant's agents, employees, contractors,
     licensees or invitees, the Base Rent shall be abated to the extent Tenant's
     use of the Premises is impaired, commencing with the date of damage and
     continuing until completion of the repairs required of Landlord under
     Section 19d.

     b.   If in Landlord's opinion, such repairs to the Premises or portion of
     the Building necessary for Tenant's occupancy cannot be completed within
     ninety (90) days, Landlord may elect, upon notice to Tenant given within
     thirty (30) days after the date of such fire or other casualty, to repair
     such damage, in which event this Lease shall continue in full force and
     effect, but the Base Rent shall be partially abated as provided in Section
     19a. If Landlord does not so elect to make such repairs, this Lease shall
     terminate as of the date of such fire or other casualty.

     c.   If any other portion of the Building or Project is totally destroyed
     or damaged to the extent that in Landlord's opinion repair thereof cannot
     be completed within ninety (90) days, Landlord may elect upon notice to
     Tenant given within thirty (30) days after the date of such fire or other
     casualty, to repair such damage, in which event this Lease shall continue
     in full force and effect, but the Base Rent shall be partially abated as
     provided in Section 19a. If Landlord does not elect to make such repairs,
     this Lease shall terminate as of the date of such fire or other casualty.

     d.   If the Premises are to be repaired under this Article, Landlord shall
     repair at its cost any injury or damage to the Building and Building
     Standard Work in the Premises. Tenant shall be responsible at its sole cost
     and expense for the repair, restoration and replacement of any other
     Leasehold improvements and Tenant's Property. Provided Landlord is without
     fault Landlord shall not be liable for any loss of business, inconvenience
     or annoyance arising from any repair or restoration of any portion of the
     Premises, Building or Project as a result of any damage from fire or other
     casualty.

20.  EMINENT DOMAIN.

     a.   If the whole of the Building or Premises is lawfully taken by
     condemnation or in any other manner for any public or quasi-public
     purposes, this Lease shall terminate as of the date of such taking, and
     Rent shall be prorated to such date. If less than the whole of the Building
     or Premises is so taken, this Lease shall be unaffected by such taking,
     provided that (i) Tenant shall have the right to terminate this Lease by
     notice to Landlord given within ninety (90) days after the date of such
     taking if twenty percent (20%) or more of the Premises is taken and the
     remaining area of the Premises is not reasonably sufficient for Tenant to
     continue operation of its business, and (ii) Landlord shall have the right
     to terminate this Lease by notice to Tenant given within ninety (90) days
     after the date of such taking. If either Landlord or Tenant so elects to
     terminate this Lease, the Lease shall terminate on the thirtieth (30th) day
     after either such notice. The Rent shall be prorated to the date of
     termination. If this Lease continues in force upon such partial taking, the
     Base Rent and Tenant's Proportionate Share shall be equitably adjusted
     according to the remaining Rentable Area of the Premises and Project.

                                      (8)

<PAGE>

    b. In the event of any taking, partial or whole, all of the proceeds of any
    award, judgment or settlement payable by the condemning authority shall be
    the exclusive property of Landlord, and Tenant hereby assigns to Landlord
    all of its right, title and interest in any award, judgment or settlement
    from the condemning authority. Tenant, however, shall have the right, to the
    extent that Landlord's award is not reduced or prejudiced, to claim from the
    condemning authority (but not from Landlord) such compensation as may be
    recoverable by Tenant in its own right for relocation expenses and damage to
    Tenant's personal property.

    c. In the event of a partial taking of the Premises which does not result in
    a termination of this Lease, Landlord shall restore the remaining portion of
    the Premises as nearly as practicable to its condition prior to the
    condemnation or taking, but only to the extent of Building Standard Work.
    Tenant shall be responsible at its sole cost and expense for the repair,
    restoration and replacement of any other Leasehold Improvements and Tenant's
    Property.

21. INDEMNIFICATION.

    a. Tenant shall indemnify and hold Landlord harmless against and from
    liability and claims of any kind for loss or damage to property of Tenant or
    any other person, or for any injury to or death of any person, arising out
    of: (1) Tenant's use and occupancy of the Premises, or any work, activity or
    other things allowed or suffered by Tenant to be done in, on or about the
    Premises; (2) any breach or default by Tenant of any of Tenant's obligations
    under this Lease; or (3) any negligent or otherwise tortious act or omission
    of Tenant, its agents, employees, invitees or contractors. Tenant shall at
    Tenant's expense, and by counsel satisfactory to Landlord, defend Landlord
    in any action or proceeding arising from any such claim and shall indemnify
    Landlord against all costs, attorneys' fees, expert witness fees and any
    other expenses incurred in such action or proceeding. As a material part of
    the consideration for Landlord's execution of this Lease, Tenant hereby
    assumes all risk of damage or injury to any person or property in, on or
    about the Premises from any cause.

    b. Provided Landlord is without fault Landlord shall not be liable for
    injury or damage which may be sustained by the person or property of Tenant,
    its employees, invitees or customers, or any other person in or about the
    Premises, caused by or resulting from fire, steam, electricity, gas, water
    or rain which may leak or flow from or into any part of the Premises, or
    from the breakage, leakage, obstruction or other defects of pipes,
    sprinklers, wires, appliances, plumbing, air conditioning or lighting
    fixtures, whether such damage or injury results from conditions arising upon
    the Premises or upon other portions of the Building or Project or from other
    sources. Landlord shall not be liable for any damages arising from any act
    or omission of any other tenant of the Building or Project.

22. TENANT'S INSURANCE.

    a. All insurance required to be carried by Tenant hereunder shall be issued
    by responsible insurance companies reasonably acceptable to Landlord and
    Landlord's lender and qualified to do business in the State. Each policy
    shall name Landlord, and at Landlord's request any mortgagee of Landlord, as
    an additional insured, as their respective interests may appear. Each policy
    shall contain (i) a cross-liability endorsement, (ii) a provision that such
    policy and the coverage evidenced thereby shall be primary and non-
    contributing with respect to any policies carried by Landlord and that any
    coverage carried by Landlord shall be excess insurance, and (iii) a waiver
    by the insurer of any right of subrogation against Landlord, its agents,
    employees and representatives, which arises or might arise by reason of any
    payment under such policy or by reason of any act or omission of Landlord,
    its agents, employees or representatives. A copy of each paid up policy
    (authenticated by the insurer) or certificate of the insurer evidencing the
    existence and amount of each insurance policy required hereunder shall be
    delivered to Landlord before the date Tenant is first given the right of
    possession of the Premises, and thereafter within thirty (30) days after any
    demand by Landlord therefor. Landlord may, at any time and from time to
    time, inspect and/or copy any insurance policies required to be maintained
    by Tenant hereunder. No such policy shall be cancellable except after twenty
    (20) days written notice to Landlord and Landlord's lender. Tenant shall
    furnish Landlord with renewals or "binders" of any such policy at least ten
    (10) days prior to the expiration thereof. Tenant agrees that if Tenant does
    not take out and maintain such insurance, Landlord may fifteen (15) days
    following notice (but shall not be required to) procure said insurance on
    Tenant's behalf and charge the Tenant the premiums. Tenant shall have the
    right to provide such insurance coverage pursuant to blanket policies
    obtained by the Tenant, provided such blanket policies expressly afford
    coverage to the Premises, Landlord, Landlord's mortgagee and Tenant as
    required by this Lease.

    b. Beginning on the date Tenant is given access to the Premises for any
    purpose and continuing until expiration of the Term, Tenant shall procure,
    pay for and maintain in effect policies of casualty insurance covering (i)
    all Leasehold Improvements (including any alterations, additions or
    improvements as may be made by Tenant pursuant to the provisions of Article
    12 hereof), and (ii) trade fixtures, merchandise and other personal property
    from time to time in, on or about the Premises, in an amount not less than
    one hundred percent (100%) of their actual replacement cost from time to
    time, providing protection against any peril included within the
    classification "Fire and Extended Coverage" together with insurance against
    sprinkler damage, vandalism and malicious mischief. The proceeds of such
    insurance shall be used for the repair or replacement of the property so
    insured. Upon termination of this Lease following a casualty as set forth
    herein, the proceeds under (i) shall be paid to Landlord, and the proceeds
    under (ii) above shall be paid to Tenant.

    c. Beginning on the date Tenant is given access to the Premises for any
    purpose and continuing until expiration of the Term, Tenant shall procure,
    pay for and maintain in effect workers' compensation insurance as required
    by law and comprehensive public liability and property damage insurance with
    respect to the construction of improvements on the Premises, the use,
    operation or condition of the Premises and the operations of Tenant in, on
    or about the Premises, providing personal injury and broad form property
    damage coverage for not less than One Million Dollars ($1,000,000.00)
    combined single limit for bodily injury, death and property damage
    liability.

    d. Not less than every three (3) years during the Term, Landlord and Tenant
    shall reasonably agree to increases in all of Tenant's insurance policy
    limits for all insurance to be carried by Tenant as set forth in this
    Article. In the event Landlord and Tenant cannot reasonably agree upon the
    amounts of said increases, then Tenant agrees that all insurance policy
    limits as set forth in this Article shall be adjusted for increases in the
    cost of living in the same manner as is set forth in Section 5.2 hereof for
    the adjustment of the Base Rent.

                                      (9)

<PAGE>

23.  WAIVER OF SUBROGATION.

Landlord and Tenant each hereby waive all rights of recovery against the other
and against the officers, employees, agents and representatives of the other, on
account of loss by or damage to the waiving party of its property or the
property of others under its control, to the extent that such loss or damage is
insured against under any fire and extended coverage insurance policy which
either may have in force at the time of the loss or damage. Tenant shall, upon
obtaining the policies of insurance required under this Lease, give notice to
its insurance carrier or carriers that the foregoing mutual waiver of
subrogation is contained in this Lease.

24.  SUBORDINATION AND ATTORNMENT.

Upon written request of Landlord, or any first mortgagee or first deed of trust
beneficiary of Landlord, or ground lessor of Landlord, Tenant shall, in
writing, subordinate its rights under this Lease to the lien of any first
mortgage or first deed of trust, or to the interest of any lease in which
Landlord is lessee, and to all advances made or hereafter to be made thereunder.
However, before signing any subordination agreement, Tenant shall have the right
to obtain from any lender or lessor or Landlord requesting such subordination,
an agreement in writing providing that, as long as Tenant is not in default
hereunder, this Lease shall remain in effect for the full Term. Tenant's
possession of the premises shall not be distributed. The holder of any security
interest may, upon written notice to Tenant, elect to have this Lease prior to
its security interest regardless of the time of the granting or recording of
such security interest.

In the event of any foreclosure sale, transfer in lieu of foreclosure or
termination of the lease in which Landlord is lessee, Tenant shall attorn to the
purchaser, transferee or lessor as the case may be, and recognize that party as
Landlord under this Lease, provided such party acquires and accepts the Premises
subject to this Lease.

25.  TENANT ESTOPPEL CERTIFICATES.

Within ten (10) days after written request from Landlord, Tenant shall execute
and deliver to Landlord or Landlord's designee, a written statement certifying
(a) that this Lease is unmodified and in full force and effect, or is in full
force and effect as modified and stating the modifications; (b) the amount of
Base Rent and the date to which Base Rent and additional rent have been paid in
advance; (c) the amount of any security deposited with Landlord; and (d) that
Landlord is not in default hereunder or, if Landlord is claimed to be in
default, stating the nature of any claimed default. Any such statement may be
relied upon by a purchaser, assignee or lender. Tenant's failure to execute and
deliver such statement within the time required shall at Landlord's election be
a default under this Lease and shall also be conclusive upon Tenant that: (1)
this Lease is in full force and effect and has not been modified except as
represented by Landlord; (2) there are no uncured defaults in Landlord's
performance and that Tenant has no right of offset, counter-claim or deduction
against Rent; and (3) not more than one month's Rent has been paid in advance.

26.  TRANSFER OF LANDLORD'S INTEREST.

In the event of any sale or transfer by Landlord of the Premises, Building or
Project, and assignment of this Lease by Landlord, Landlord shall be and is
hereby entirely freed and relieved of any and all liability and obligations
contained in or derived from this Lease arising out of any act, occurrence or
omission relating to the Premises, Building, Project or Lease occurring after
the consummation of such sale or transfer, providing the purchaser shall
expressly assume all of the covenants and obligations of Landlord under this
Lease. If any security deposit or prepaid Rent has been paid by Tenant, Landlord
may transfer the security deposit or prepaid Rent to Landlord's successor and
upon such transfer, Landlord shall be relieved of any and all further liability
with respect thereto.

27.  DEFAULT.

27.1.  Tenant's Default. The occurrence of any one or more of the following
events shall constitute a default and breach of this Lease by Tenant:

     a.  If Tenant abandons or vacates the Premises; or

     b.  If Tenant fails to pay any Rent or any other charges required to be
     paid by Tenant under this Lease and such failure continues for five (5)
     days after notice that such payment is past due and payable; or

     c.  If Tenant fails to promptly and fully perform any other covenant,
     condition or agreement contained in this Lease and such failure continues
     for thirty (30) days after written notice thereof from Landlord to Tenant;
     or

     d.  If a writ of attachment or execution is levied on this Lease or on any
     of Tenant's Property; or

     e.  If Tenant makes a general assignment for the benefit of creditors, or
     provides for an arrangement, composition, extension or adjustment with its
     creditors; or

     f.  If Tenant files a voluntary petition for relief or if a petition
     against Tenant in a proceeding under the federal bankruptcy laws or other
     insolvency laws is filed and not withdrawn or dismissed within ninety (90)
     days thereafter, of if under the provisions of any law providing for
     reorganization or winding up of corporations, any court of competent
     jurisdiction assumes jurisdiction, custody or control of Tenant or any
     substantial part of its property and such jurisdiction, custody or control
     remains in force unrelinquished, unstayed or unterminated for a period of
     ninety (90) days; or

     g.  If in any proceeding or action in which Tenant is a party, a trustee,
     receiver, agent or custodian is appointed to take charge of the Premises or
     Tenant's Property (or has the authority to do so) for the purpose of
     enforcing a lien against the Premises or Tenant's Property; or

     h.  If Tenant is a partnership or consists of more than one (1) person or
     entity, if any partner of the partnership or other person or entity is
     involved in any of the acts or events described in subparagraphs d through
     g above.

27.2  Remedies. In the event of Tenant's default hereunder, then in addition to
any other rights or remedies Landlord may have under any law, Landlord shall
have the right, at Landlord's option, without further notice or demand of any
kind to do the following:

     a.  Terminate this Lease and Tenant's right to possession of the Premises
     and reenter the Premises and take possession thereof, and Tenant shall have
     no further claim to the Premises or under this Lease; or

     b.  Continue this Lease in effect, reenter and occupy the Premises for the
     account of Tenant, and collect any unpaid Rent or other charges which have
     or thereafter become due and payable; or

     c.  Reenter the Premises under the provisions of subparagraph b, and
     thereafter elect to terminate this Lease and Tenant's right to possession
     of the Premises.

                                     (10)

<PAGE>

If Landlord reenters the Premises under the provisions of subparagraphs b or c
above, Landlord shall not deemed to have terminated this Lease or the obligation
of Tenant to pay any Rent or other charges thereafter accruing, unless Landlord
notifies Tenant in writing of Landlord's election to terminate this Lease. In
the event of any reentry or retaking of possession by Landlord, Landlord shall
have the right, but not the obligation, to remove all or any part of the
Tenant's Property in the Premises and to place such property in storage at a
public warehouse at the expense and risk of Tenant. If Landlord elects to relet
the Premises for the account of Tenant, the rent received by Landlord from such
reletting shall be applied as follows: first, to the payment of any indebtedness
other than Rent due hereunder from Tenant to Landlord; second, to the payment of
any costs of such reletting; third, to the payment of the cost of any
alterations or repairs to the Premises; fourth to the payment of Rent due and
unpaid hereunder; and the balance, if any, shall be held by Landlord and applied
in payment of future Rent as it becomes due. If that portion of rent received
from the reletting which is applied against the Rent due hereunder is less than
the amount of the Rent due, Tenant shall pay the deficiency to Landlord promptly
upon demand by Landlord. Such deficiency shall be calculated and paid monthly.
Tenant shall also pay to Landlord, as soon as determined, any costs and expenses
incurred by Landlord in connection with such reletting or in making alterations
and repairs to the Premises, which are not covered by the rent received from the
reletting.

Should Landlord elect to terminate this Lease under the provisions of
subparagraph a or c above, Landlord may recover as damages from Tenant the
following:

     1. Past Rent. The worth at the time of the award of any unpaid Rent which
        had been earned at the time of termination; plus

     2. Rent Prior to Award. The worth at the time of the award of the amount by
        which the unpaid Rent which would have been earned after termination
        until the time of award exceeds the amount of such rental loss that
        Tenant proves could have been reasonably avoided; plus

     3. Rent after Award. The worth at the time of the award of the amount by
        which the unpaid Rent for the balance of the Term after the time of
        award exceeds the amount of the rental loss that Tenant proves could be
        reasonably avoided; plus

     4. Proximately Caused Damages. Any other amount necessary to compensate
        Landlord for all detriment proximately caused by Tenant's failure to
        perform its obligations under this Lease or which in the ordinary course
        of things would be likely to result therefrom, including, but not
        limited to, any costs or expenses (including attorneys' fees), incurred
        by Landlord in (a) retaking possession of the Premises, (b) maintaining
        the Premises after Tenant's default, (c) preparing the Premises for
        reletting to a new tenant, including any repairs or alterations, and (d)
        reletting the Premises, including broker's commissions.

"The worth at the time of the award" as used in subparagraphs 1 and 2 above, is
to be computed by allowing interest at the rate of ten percent (10%) per annum.
"The worth at the time of the award" as used in subparagraph 3 above, is to be
computed by discounting the amount at the discount rate of the Federal Reserve
Bank situated nearest to the Premises at the time of the award plus one percent
(1%).

The waiver by Landlord of any breach of any term, covenant or condition of this
Lease shall not be deemed a waiver of such term, covenant or condition or of any
subsequent breach of the same or any other term, covenant or condition.
Acceptance of Rent by Landlord subsequent to any breach hereof shall not be
deemed a waiver of any preceding breach other than the failure to pay the
particular Rent so accepted, regardless of Landlord's knowledge of any breach
at the time of such acceptance of Rent. Landlord shall not be deemed to have
waived any term, covenant or condition unless Landlord gives Tenant written
notice of such waiver.

27.3 Landlord's Default. If Landlord fails to perform any covenant, condition or
agreement contained in this Lease within thirty (30) days after receipt of
written notice from Tenant specifying such default, or if such default cannot
reasonably be cured within thirty (30) days, if Landlord fails to commence to
cure within that thirty (30) day period, then Landlord shall be liable to Tenant
for any damages sustained by Tenant as a result of Landlord's breach; provided,
however, it is expressly understood and agreed that if Tenant obtains a money
judgment against Landlord resulting from any default or other claim arising
under this Lease, that judgment shall be satisfied only out of the rents,
issues, profits, and other income actually received on account of Landlord's
right, title and interest in the Premises, Building or Project, and no other
real, personal or mixed property of Landlord (or of any of the partners which
comprise Landlord, if any) whether situated, shall be subject to levy to satisfy
such judgment. If, after notice to Landlord of default, Landlord (or any first
mortgagee or first deed of trust beneficiary of Landlord) fails to cure the
default as provided herein, then Tenant shall have the right to cure that
default at Landlord's expense. Tenant shall not have the right to terminate this
Lease or to withhold, reduce or offset any amount against any payments of Rent
or any other charges due and payable under this Lease except as otherwise
specifically provided herein.

28.  BROKERAGE FEES.

Each party represents that there are no broker or finder fees related to this
transaction.

29.  NOTICES

All notices, approvals and demands permitted or required to be given under this
Lease shall be in writing and deemed duly served or given if personally
delivered or sent by certified or registered U.S. mail, postage prepaid, and
addressed as follows: (a) if to Landlord, to Landlord's Mailing Address and to
the Building manager, and (b) if to Tenant, to Tenant's Mailing Address;
provided, however, notices to Tenant shall be deemed duly served or given if
delivered or mailed to Tenant at the Premises. Landlord and Tenant may from time
to time by notice to the other designate another place for receipt of future
notices.

30.  GOVERNMENT ENERGY OR UTILITY CONTROLS.

In the event of imposition of federal, state or local government controls,
rules, regulations, or restrictions on the use of consumption of energy or other
utilities during the Term, both Landlord and Tenant shall be bound thereby. In
the event of a difference in interpretation by Landlord and Tenant of any such
controls, the interpretation of Landlord shall prevail, and Landlord shall have
the right to enforce compliance therewith, including the right of entry into the
Premises to effect compliance.

31.  RELOCATION OF PREMISES.

                                     (11)

<PAGE>

32. QUIET ENJOYMENT.

Tenant, upon paying the Rent and performing all of its obligations under this
Lease, shall peaceably and quietly enjoy the Premises, subject to the terms of
this Lease and to any mortgage, lease, or other agreement to which this Lease
may be subordinate.

33. OBSERVANCE OF LAW.

Tenant shall not use the Premises or permit anything to be done in or about the
Premises which will in any way conflict with any law, statute, ordinance or
governmental rule or regulation now in force or which may hereafter be enacted
or promulgated. Tenant shall, at its sole cost and expense, promptly comply with
all laws, statutes, ordinances and governmental rules, regulations or
requirements now in force or which may hereafter be in force, and with the
requirements of any board of fire insurance underwriters or other similar bodies
now or hereafter constituted, relating to, or affecting the condition, use or
occupancy of the Premises, excluding structural changes not related to or
affected by Tenant's improvements or acts. The judgment of any court of
competent jurisdiction or the admission of Tenant in any action against Tenant,
whether Landlord is a party thereto or not, that Tenant has violated any law,
ordinance or governmental rule, regulation or requirement, shall be conclusive
of that fact as between Landlord and Tenant.

34. FORCE MAJEURE.

Any prevention, delay or stoppage of work to be performed by Landlord or Tenant
which is due to strikes, labor disputes, inability to obtain labor, materials,
equipment or reasonable substitutes therefor, act of God, governmental
restrictions or regulations or controls, judicial orders, enemy or hostile
government actions, civil commotion, fire or other casualty, or other causes
beyond the reasonable control of the party obligated to perform hereunder, shall
excuse performance of the work by that party for a period equal to the duration
of that prevention, delay or stoppage. Nothing in this Article 34 shall excuse
or delay Tenant's obligation to pay Rent or other charges under this Lease.

35. CURING TENANT'S DEFAULTS.

If Tenant defaults in the performance of any of its obligations under this
Lease, Landlord may (but shall not be obligated to) without waiving such
default, perform the same for the account at the expense of Tenant. Tenant shall
pay Landlord all costs of such performance promptly upon receipt of a bill
therefor.

36. SIGN CONTROL.

Tenant shall not affix, paint, erect or inscribe any sign, projection, awning,
signal or advertisement of any kind to any part of the Premises, Building or
Project, including without limitation, the inside or outside of windows or
doors, without the written consent of Landlord. Landlord shall have the right to
remove any signs or other matter, installed without Landlord's permission,
without being liable to Tenant by reason of such removal, and to charge the cost
of removal to Tenant as additional rent hereunder, payable within ten (10) days
of written demand by Landlord.

37. MISCELLANEOUS.

a. Accord and Satisfaction; Allocation of Payments. No payment by Tenant or
receipt by Landlord of a lesser amount than the Rent provided for in this Lease
shall be deemed to be other than on account of the earliest due Rent, nor shall
any endorsement or statement on any check or letter accompanying any check or
payment as Rent be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord's right to recover the
balance of the Rent or pursue any other remedy provided for in this Lease. In
connection with the foregoing, Landlord shall have the absolute right in its
sole discretion to apply any payment received from Tenant to any account or
other payment of Tenant then not current and due or delinquent.

b. Addenda. If any provision contained in an addendum to this Lease is
inconsistent with any other provision herein, the provision contained in the
addendum shall control, unless otherwise provided in the addendum.

c. Attorneys' Fees. If any action or proceeding is brought by either party
against the other pertaining to or arising out of this Lease, the finally
prevailing party shall be entitled to recover all costs and expenses, including
reasonable attorneys' fees, incurred on account of such action or proceeding.

d. Captions, Articles and Section Numbers. The captions appearing within the
body of this Lease have been inserted as a matter of convenience and for
reference only and in no way define, limit or enlarge the scope or meaning of
this Lease. All references to Article and Section numbers refer to Articles and
Sections in this Lease.

e. Changes Requested by Lender. Neither Landlord or Tenant shall unreasonably
withhold its consent to changes or amendments to this Lease requested by the
lender on Landlord's interest, so long as these changes do not alter the basic
business terms of this Lease or otherwise materially diminish any rights or
materially increase any obligations of the party from whom consent to such
charge or amendment is requested.

f. Choice of Law. This Lease shall be construed and enforced in accordance with
the laws of the State.

g. [deleted]

                                     (12)

<PAGE>

h. Corporate Authority. If Tenant is a corporation, each individual signing this
Lease on behalf of Tenant represents and warrants that he is duly authorized to
execute and deliver this Lease on behalf of the corporation, and that this
Lease is binding on Tenant in accordance with its terms. Tenant shall, at
Landlord's request, deliver a certified copy of a resolution of its board of
directors authorizing such execution.

i. Counterparts. This Lease may be executed in multiple counterparts, all of
which shall constitute one and the same Lease.

j. Execution of Lease; No Option. The submission of this Lease to Tenant shall
be for examination purposes only, and does not and shall not constitute a
reservation of or option for Tenant to lease, or otherwise create any interest
of Tenant in the Premises or any other premises within the Building or Project.
Execution of this Lease by Tenant and its return to Landlord shall not be
binding on Landlord notwithstanding any time interval, until Landlord has in
fact signed and delivered this Lease to Tenant.

k. Furnishing of Financial Statements; Tenant's Representations. In order to
induce Landlord to enter into this Lease Tenant agrees that it shall promptly
furnish Landlord, from time to time, upon Landlord's written request, with
financial statements reflecting Tenant's current financial condition. Tenant
represents and warrants that all financial statements, records and information
furnished by Tenant to Landlord in connection with this Lease are true, correct
and complete in all respects.

l. Further Assurances. The parties agree to promptly sign all documents
reasonably requested to give effect to the provisions of this Lease.

m. Mortgagee Protection. Tenant agrees to send by certified or registered mail
to any first mortgagee or first deed of trust beneficiary of Landlord whose
address has been furnished to Tenant, a copy of any notice of default served by
Tenant on Landlord. If Landlord fails to cure such default within the time
provided for in this Lease, such mortgagee or beneficiary shall have an
additional thirty (30) days to cure such default; provided that if such default
cannot reasonably be cured within that thirty (30) day period, then such
mortgagee or beneficiary shall have such additional time to cure the default as
is reasonably necessary under the circumstances.**(pto)

n. Prior Agreements; Amendments. This Lease contains all of the agreements of
the parties with respect to any matter covered or mentioned in this Lease, and
no prior agreement or understanding pertaining to any such matter shall be
effective for any purpose. No provisions of this Lease may be amended or added
to except by an agreement in writing signed by the parties or their respective
successors in interest.

o. Recording. Tenant shall not record this Lease without the prior written
consent of Landlord. Tenant, upon the request of Landlord, shall execute and
acknowledge a "short form" memorandum of this Lease for recording purposes.

p. Severability. A final determination by a court of competent jurisdiction that
any provision of this Lease is invalid shall not affect the validity of any
other provision, and any provisions so determined to be invalid shall, to the
extent possible, be construed to accomplish its intended effect.

q. Successors and Assigns. This Lease shall apply to and bind the heirs,
personal representatives, and permitted successors and assigns of the parties.

r. Time of the Essence. Time is of the essence of this Lease.

s. Waiver. No delay or omission in the exercise of any right or remedy of
Landlord upon any default by Tenant shall impair such right or remedy or be
construed as a waiver of such default.

t. Compliance. The parties hereto agree to comply with all applicable federal,
state and local laws, regulations, codes, ordinances and administrative orders
having jurisdiction over the parties, property or the subject matter of this
Agreement, including, but not limited to, the 1964 Civil Rights Act and all
amendments thereto, the Foreign Investment In Real Property Tax Act, the
Comprehensive Environmental Response Compensation and Liability Act, and The
Americans With Disabilities Act.

The receipt and acceptance by Landlord of delinquent Rent shall not constitute a
waiver of any other default; it shall constitute only a waiver of timely payment
for the particular Rent payment involved.

No act or conduct of Landlord, including, without limitation, the acceptance of
keys to the Premises, shall constitute an acceptance of the surrender of the
Premises by Tenant before the expiration of the Term. Only a written notice from
Landlord to Tenant shall constitute acceptance of the surrender of the Premises
and accomplish a termination of the Lease.

Landlord's consent to or approval of any act by Tenant requiring Landlord's
consent or approval shall not be deemed to waive or render unnecessary
Landlord's consent to or approval of any subsequent act by Tenant.

Any waiver by Landlord of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of the
Lease.

The parties hereto have executed this Lease as of the dates set forth below.

Date: 4/29/02                              Date: 4/29/02
     ----------------------------------         -----------------------------
Landlord: Dove Holdings, Inc.              Tenant: DoveBid, Inc.
         -------------------------------          ---------------------------

By: /s/ Ross Dove                          By: /s/ Anthony Capobianco
   -------------------------------------      -------------------------------
     Ross Dove

Title:                                     Title: VP & GENERAL COUNSEL
      ----------------------------------         ----------------------------

By: /s/ Kirk Dove                          By: ______________________________
   -------------------------------------
    Kirk Dove

Title: PRESIDENT                           Title:____________________________
      ----------------------------------

                                     (13)

<PAGE>

**Provided that if such default cannot reasonably be cured within that thirty
  (30) day period, and the mortgagee or beneficiary has commenced to dure within
  such thirty (30) day period, then such mortgagee or beneficiary shall have
  such additional time to cure the default as is reasonably necessary under the
  circumstances; provided, further, however, if such default shall not have been
  cured within sixty (60) days, Tenant may, at Tenant's option, terminate the
  Lease without further liability hereunder.

<PAGE>

[LOGO OF CB Richard Ellis]
ADDITIONAL TERMS LEASE RIDER

                                                                     Page 1 of 1

This Addendum shall constitute part of that certain Lease dated May 4/22/02,
between Dove Holdings, Inc. as Landlord and Dovebid, Inc. as Tenant, and the
terms hereof shall for purposes be deemed incorporated in the Lease.

TENANT IMPROVEMENTS
Landlord to deliver premises in broom clean condition. Tenant accepts premises
in "as is" condition. Landlord warrants that the HVAC, electrical, and all
building systems are in good working condition prior to occupancy.

LUNCH ROOM
Tenant shall have the right to share the use of the lunch room with other
tenants in the building.

DIRECTORY SIGNAGE
Landlord shall install directory signage in the building lobby at Landlord's
sole expense.

TENANT'S ACCESS
Tenant shall have access to the premises 24 hours a day, seven (7) days per
week.

HVAC
It is understood by Landlord and Tenant that Tenant will be able to control the
operation of the HVAC system that serves only the premises. Tenant shall pay
Landlord's actual cost for the Tenant's operation of this HVAC system outside
of the hours of 8:00 P.M. to 6:00 P.M., Monday through Friday.

LANDLORD'S WARRANTIES
Whenever under the Terms of this Lease Landlord's consent, approval,
determination or judgement is required, Landlord's consent, approval,
determination or judgement shall not be unreasonably withheld, delayed or
conditioned. Whenever under the terms of this Lease Tenant shall be subject to
Landlord's rules, regulations, policies or determinations applicable to
tenants of the project generally, such rules, regulations, policies or
determinations shall be reasonable, non-discriminatory and consistently applied
by Landlord.

If any conflicts exist between the Lease and this Addendum, the terms of this
Addendum shall govern.

Landlord: Dove Holdings, Inc.                 Tenant:   Dovebid, Inc.

By: /s/  [ILLEGIBLE]                         By: /s/ Anthony Capobianco
   -----------------------------                ------------------------------
Its:      PRESIDENT                          Its:    VP AND GENERAL COUNSEL
    ----------------------------                 -----------------------------
Date:     4/29/02                            Date:        4/29/02
     ---------------------------                   ---------------------------

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