Document:

Exhibit 10.32

Exhibit 10.32

SERVICES AGREEMENT

        THIS SERVICES AGREEMENT by and between Portola Packaging, Inc., a
Delaware corporation ("Portola"), and Sand Hill Systems, Inc., a Delaware
corporation ("Sand Hill"), is dated as of the1st day of July, 1999.

                             R E C I T A L S

        A. Sand Hill is a wholly-owned subsidiary of Portola.

        B. Portola  is providing and intends to continue to provide
certain services defined in Section 2 below (the "Services") in respect
of personnel, facilities and equipment to Sand Hill.

        C. Sand Hill wishes to receive these Services.

        D. The parties have previously agreed to have Sand Hill make
payment for the Services in the form of an unsecured Promissory Note.

        NOW THEREFORE, in consideration of the mutual covenants contained
herein, the parties agree as follows:

                             A G R E E M E N T

         1. Term.   Portola shall provide Services to Sand Hill until the
date that the Services heretofore rendered and to be rendered have an
aggregate value of Three Million Five Hundred Thousand ($3,500,000).
This Agreement shall terminate, and Portola shall no longer be obligated
to provide Services, on the earlier of that date or March 31, 2000  (the
"Termination Date").  All Services heretofore or hereafter rendered shall
be valued by Portola in its sole discretion, provided such valuations
shall not be unreasonable under the circumstances.

         2. Services Provided.   The Services, as this term is used in this
Agreement have consisted and shall consist of the following as well as of
other services as the parties may agree in the future:

                2.1     Fully serviced office space at Portola's facilities
located at 850, 860 and 890 Faulstich Court in San Jose, California, to
the extent available and not otherwise used by Portola for other
purposes.

                2.2     Administration services provided by senior executives of
Portola including, without limitation, Jack L. Watts, Laurie D. Bassin,
James A. Taylor, Dennis Berg and Pete Schneider.

                2.3     General and administrative services such as the
following:

                    (i)    Preparation of periodic payroll, payroll tax
                           filings, W-2 preparation and all other services
                           relating to the handling of Sand Hill's payroll.
                    (ii)   General ledger processing and financial statement
                           reconciliation, including preparation of monthly
                           financial statements and other month-end,
                           quarter-end and year-end actions associated with
                           closing the books of Sand Hill for those periods.
                   (iii)   External audit assistance and data compilation.
                    (iv)   Budget analysis.
                     (v)   Services relating to human
                           resources matters, such as administering employee
                           health and workers' compensation claims (for both
                           those employees continuing to be employed by
                           Portola and those employed directly by Sand
                           Hill).
                     (vi)  Services in connection with
                           insurance matters, such as casualty, liability
                           and product liability claims, both for and
                           against Sand Hill.
                    (vii)  Miscellaneous matters such as
                           accounts payable processing, check preparation,
                           disbursements, travel and other expense advances
                           processing and control, cash deposit, handling
                           and application, bank liaison, management of
                           short term investments of cash, fixed asset
                           reporting and control, external audit assistance
                           and data compilation, compliance with
                           governmental reporting requirements, training,
                           safety and security and corporate communications.
                           In order that Portola may provide the accounting
                           services specified above, Sand Hill shall provide
                           Portola with all necessary backup documentation
                           on a monthly basis by not later than the fifth
                           day of each next succeeding month.

                2.4  Provision of full-time employees as set forth on Exhibit
"A" hereto (the "Sand Hill  Employees") and other employees as the
parties may later agree.

                2.5  Use of the computers, office furniture and other
equipment as set forth on Exhibit "B" hereto (the "Sand Hill Equipment").

                2.6  Access to Portola's telephone network.

                2.7  Access to Portola's internal e-mail system.

                2.8  Occasional use of Portola's other facilities and
equipment as reasonably necessary to execute Sand Hill's business plan.

                2.9  Legal services.

                2.10 Portola shall perform its obligations under this
Agreement in an efficient, professional and competent manner.  Portola
represents that it currently has and during the term of this Agreement
will continue to employ competent personnel who are capable of
performing, and willing and sufficient in number to perform, its
obligations hereunder.

        3 Payment.  The parties having agreed from the inception of
Portola's providing of Services that payment therefor shall be by
promissory note, Sand Hill hereby delivers to Portola its Promissory Note
substantially in the form of Exhibit "C" hereto, and Portola hereby
accepts said Note in payment for all Services.

        4. Miscellaneous.

                4.1  Governing Laws.  IT IS THE INTENTION OF THE PARTIES
HERETO THAT THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, U.S.A.
(IRRESPECTIVE OF ITS CHOICE OF LAW PRINCIPLES) SHALL GOVERN THE VALIDITY
OF THIS AGREEMENT, THE CONSTRUCTION OF ITS TERMS, AND THE INTERPRETATION
AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HERETO.  THE
PARTIES HEREBY EXCLUDE THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE
INTERNATIONAL SALE OF GOODS FROM THIS AGREEMENT.

                4.2  Arbitration.  The parties agree that all disputes arising
under this Agreement shall be finally settled under the Commercial Rules
of Arbitration of the American Arbitration Association by a single
arbitrator appointed in accordance with said rules.  The award of any
such arbitrator may be entered and enforced in any court of competent
jurisdiction, including without limitation, the Federal District Court
for the Northern District of California or the Superior Court for the
County of Santa Clara, California.

                4.3  Other Provisions.  This Agreement is binding upon and
inures to the benefit of the successors and assigns of the parties
hereto.  This Agreement constitutes the entire understanding and
agreement of the parties with respect to the subject matter hereof.  This
Agreement may only be amended or observance of any terms of this
Agreement may be waived only by a writing signed by the party to be bound
thereby.  Should suit or arbitration be brought to enforce or interpret
any part of this Agreement, the prevailing party shall be entitled to
recover reasonable attorneys' fees to be fixed by the court or
arbitrator.  Nothing contained in this Agreement shall be deemed or
construed as creating a joint venture or a partnership between the
parties hereto.  Neither party shall have any power or authority to bind
or commit the other.

                4.4  Notices.  Whenever either party hereto desires or is
required to give any notice, demand or request with respect to this
Agreement, each such communication shall be in writing and shall be given
or made by telecopy, telegraph, cable, mail or other delivery and
telecopied, telegraphed, cabled, mailed or delivered to the intended
recipient at the addresses specified below:

If to Portola:                   Portola Packaging, Inc.
                                 890 Faulstich Court
                                 San Jose, California 95112
                                 Telecopy: (408) 453-8462
                                 Attn:  President

with a copy to :                 Themistocles G. Michos, Esq.
                                 Vice President and General Counsel of Portola
                                 221 Main Street, 16th floor
                                 San Francisco, CA 94105
                                 Telecopy: (508) 437-0399

If to Sand Hill:                 Sand Hill Systems, Inc.
                                 2400 Sand Hill Road, Suite 201
                                 Menlo Park, CA 94025
                                 Telecopy: (650) 854-1578

with a copty to:                 Timothy Tomlinson, Esq.
                                 Tomlinson Zisko Morosoli & Maser LLP
                                 200 Page Mill Road, 2nd Floor
                                 Palo Alto, CA 94306
                                 Telecopy: (650) 324-1808

        Except as may be otherwise provided in this Agreement, all such
communications shall be deemed to have been duly given when transmitted
by telecopier with verified receipt by the receiving telecopier, when
delivered to the telegraph or cable office, when personally delivered,
two (2) days after being delivered to an air courier (e.g. DHL, or
Federal Express) upon proof of delivery, or, in the case of a mailed
notice, four (4) days after being deposited certified or registered mail,
postage prepaid.  Either party may change its address for such
communications by giving notice thereof to the other party in conformance
with this section.

        IN WITNESS WHEREOF, the parties hereto have made and entered into
this Agreement as of the day and year first below written.

PORTOLA PACKAGING, INC.

By:     /s/ James Taylor
        -------------------
        James Taylor,
        Chief Financial Officer

SAND HILL SYSTEMS, INC.

By:     /s/ Jack L. Watts
        --------------------
        Jack L. Watts, President and
        Chief Executive OfficerExhibit 10.33

Exhibit 10.33

RELEASE AND ASSUMPTION AGREEMENT

        This Release and Assumption Agreement ("Agreement") is made and
entered into this 17th day of September, 1999 by and among Portola
Packaging, Inc., a Delaware corporation ("PPI"), Sand Hill Systems, Inc., a
Delaware corporation ("SHS"); and Portola Company IV LLC, a Delaware limited
liability company ("PC")

                           R E C I T A L S

        A.      PPI and SHS entered into a Services Agreement dated as of July
1, 1999 (the "Services Agreement") with respect to the provision by PPI of
certain services, personnel, facilities and equipment to SHS.

        B.      Pursuant to the Services Agreement, SHS issued in favor of PPI a
variable rate promissory note in the principal amount of Three Million Five
Hundred Thousand Dollars ($3,500,000) (the "Note") in payment for the services
to be provided by PPI under the Services Agreement.

        C.      PC is willing to assume the Note and all obligations thereunder
in exchange for seven million shares (7,000,000) of SHS Common Stock, and SHS
is willing to issue such Shares to PC in exchange for such assumption and the
release by PPI of SHS's obligations under the Note.

        D.      PPI is willing to release SHS from its obligations under the
Note upon the assumption by PC of all of SHS's obligations thereunder.

        NOW, THEREFORE, in reliance on the foregoing recitals and in
consideration of the mutual covenants contained herein, the parties hereto
agree as follows:

                         A G R E E M E N T

        1.      Assignment.     SHS hereby assigns and transfers to PC all of SHS's
right, title and interest in and related obligations under the Note, and PPI
hereby consents to such assignment and the assumption by PC of the Note and SHS's
obligations thereunder.

        2.      Assumption and Pledge.   PC hereby assumes and agrees to pay,
perform and discharge all obligations of SHS under or arising out of the
Note.  PC further agrees to secure its obligations under the Note by
pledging 500,000 shares of PPI Class B Common Stock ( the "PPI Stock")
pursuant to the terms of a Stock Pledge Agreement substantially in the form
attached hereto as Exhibit A being entered into between PC and PPI
concurrently herewith.

        3.      Release of Claims.

                3.1     As used herein, the term "Claims" shall mean any and all
claims, demands, damages, sums of money, costs, expenses, actions, rights,
causes of action, agreements, promises, obligations or liabilities of any
kind or nature whatsoever, known or unknown,  fixed or contingent, suspected
or unsuspected, which PPI may have had or claim to have had, or now has or
claims to have, or hereafter may claim to have or assert to have, which
arise out of in any manner whatsoever, either directly or indirectly, or are
related to the Note.

                3.2     In consideration of PC's assumption of the Note and SHS's
obligations thereunder and PC's related pledge of the PPI Stock,  PPI hereby
acknowledges full and complete satisfaction of, and hereby releases, and
forever discharges SHS as well as its successors, assigns, representatives,
shareholders, officers, directors, employees, agents, servants and attorneys
from any and all Claims.  The parties intend that this release shall be
broadly construed and interpreted so as to settle, release and extinguish
any and all Claims or any matter related in any way thereto.

                3.3     It is the intention of the parties in executing this
Agreement that the same shall be effective as a bar to, and full settlement of,
an and all Claims hereinabove specified.  PPI hereby expressly waives any and all
rights and benefits conferred upon PPI by the provisions of Section 1542 of the
Civil Code of California, as well as by any other statutes or common law
principles of similar effect.  Section 1542 of the Civil Code of California
reads as follows:

                "1542.  A general release does not extend to claims which the
                 creditor does not know or suspect to exist in his favor at the
                 time of the execution of the Release, which if known by him must
                 have materially affected his settlement with the debtor."

The parties understand that this Agreement shall act as a release of future
claims that may arise from the Claims whether such Claims are currently
known, unknown, foreseen, or unforeseen.  PPI understands and acknowledges
the significance and consequence of such specific waiver of Section 1542 and
hereby assumes full responsibility for any injuries, damages, losses, or
liability that he or she may hereafter incur from the Claims.

        4.      Stock Purchase and Certain Expenses.    In consideration of PC's
assumption of the Note and SHS's obligations thereunder and the release by PPI of
SHS from its obligations under the Note as set forth herein, SHS agrees as
follows:

                4.1      SHS hereby sells to PC, and PC hereby acquires from SHS,
an aggregate of seven million shares (7,000,000) of SHS Common Stock (the
"Shares").  SHS shall deliver a certificate representing the Shares to PC as
soon as is practical after the date of this Agreement.

                4.2     SHS hereby agrees to pay from time to time promptly upon
request by PC (i) all attorneys' fees and expenses incurred by PC in connection
with PC's initial financing, (ii) all costs and expenses incurred by PC in
connection with the preparation of PC's financial statements and the preparation
and filing of PC's annual tax returns and (iii) all of PC's franchise taxes in
Delaware and Nevada.  SHS's payment obligations set forth in this Section
4.2 shall expire one year after the effective date of SHS's initial
underwritten public offering.

        5.      SHS's Representations and Warranties.  SHS hereby represents and
warrants that:

                5.1     SHS has and will transfer to PC, good, valid and
marketable title to all of the Shares being sold hereunder, and there are no security
interests, liens, claims, charges, encumbrances, assessments or restrictions or any
other defects in title of any nature whatsoever on any of the Shares.

                5.2     SHS, or the person executing this Agreement on behalf of
SHS, has the right, power, legal capacity and authority to enter into and perform
SHS's obligations under this Agreement.

        6.      PC's Representations and Warranties.  PC hereby represents and
warrants that:

                6.1     PC is aware that the Shares are highly speculative and
that there can be no assurance as to what return, if any,
there may be.

                6.2     PC is aware of SHS's business affairs and financial
condition; has acquired sufficient information about SHS to reach an informed and
knowledgeable decision to acquire the Shares;  has received an opportunity
to ask questions relating to SHS's business, legal and financial affairs and
to obtain all additional information which PC requested.

                6.3     PC is purchasing the Shares for investment for PC's own
amount only and not as a nominee or agent, and not with a view to, or for resale in
connection with, any "distribution" thereof within the meaning of the
Federal Securities Act of 1933 (the "Act") or the California Corporate
Securities Law of 1968 (the "Law").

                6.4     PC does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant a participation in the
Shares to such person or to any third person.

                6.5     PC understands that the Shares have not been registered
under the Act or the Law by reason of specific exemptions therefrom, some of
which exemptions may depend upon, among other things, the bona fide nature of
the PC's investment intent as expressed herein.  In this connection, PC
understands that, in the view of the Securities and Exchange Commission (the
"Commission"), the statutory  basis for such exemption from the Act may not
be available if the PC's representations mean that the PC's present
intention is to hold the Shares for a minimum capital gains period under the
tax statutes, for a deferred sale, for a market rise, for a sale if the
market does not rise, or for a year or any other fixed period in the future.

                6.6     PC further understands that the Shares must be held
indefinitely unless it is subsequently registered under the Act or an
exemption from such registration is available.

                6.7     PC is aware of Rule 144 promulgated under the Act which
permits limited public resale of Shares acquired in a nonpublic offering, subject
to the satisfaction of certain conditions, including, among other things, the
availability of certain current public information about SHS, the passage of
not less than one year after the holder has purchased and completed payment
for the securities to be sold, effectuation of the sale on the public market
through a broker in an unsolicited "broker's transaction" or to a "market
maker", and compliance with specified limitations on the amount of
securities to be sold (generally, one percent (1%) of the total amount of
Shares outstanding) during any three-month period; provided, however, that
such conditions need not be met by a person who is not an affiliate of SHS
at the time of the sale and has not been an affiliate for the preceding
three months, if the securities have been beneficially owned by such person
for at least two years prior to their sale.  PC understands that SHS's
Shares may not be publicly traded or SHS may not be satisfying the current
public information requirements of Rule 144 at the time PC wishes to sell
the Shares; and thus, PC may be precluded from selling the Shares under Rule
144 even though the one-year minimum holding period may have been satisfied.

                6.8     PC further understands that in the event the requirements
of Rule 144 are not met, registration under the Act, compliance with Regulation
A or some other registration exemption will be required for any disposition
of the Shares; and that, although Rule 144 is not exclusive, the Commission
has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and other than pursuant to
Rule 144 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales and that
such persons and the brokers who participate in such transactions do so at
their own risk.

                6.9     PC has either (i) a preexisting business or personal
relationship with SHS or its directors or officers or (ii)
by reason of PC's business or financial experience, the
capacity to protect PC's own interest in connection with
the transaction contemplated by this Agreement.

                6.10    PC is (i) experienced in investing in companies recently
organized and in the development stage, (ii) able to fend for itself in connection
with this investment, and (iii) able to bear the economic risk of this investment.

                6.11    PC is a limited liability company duly organized, validly
existing and in good standing under  the laws of the State of Delaware and has
full power and authority to carry on its business as now conducted and as currently
proposed to be conducted.

                6.12    PC has all requisite power to enter into this Agreement,
the Stock Pledge Agreement referred to in Section 2 hereof and the Investors'
Rights Agreement referred to in Section 7 hereof  and to otherwise carry out and
perform all of its obligations under the terms of this Agreement, the Stock
Pledge Agreement and the Investors' Rights Agreement.

                6.13    All action necessary for the authorization, execution,
delivery and performance of this Agreement, the Stock Pledge Agreement and the
Investors' Rights Agreement has been duly and validly taken by PC and is
currently in full force and effect.

                6.14    This Agreement, the Stock Pledge Agreement, the Investors'
Rights Agreement and the Note are valid and binding obligations of PC, enforceable
in accordance with their respective terms, except as enforceability thereof
may be limited under general principles of equity (regardless of whether the
issue of such enforceability is considered in a proceeding in equity or at
law) or by applicable bankruptcy, reorganization, insolvency, moratorium or
other laws relating to or affecting generally the enforcement of creditors'
rights.

                6.15     The execution and delivery of this Agreement, the Stock
Pledge Agreement and the Investors' Rights Agreement and the consummation of the
transactions herein or therein contemplated, do not and will not: (i)
conflict with, or result in a breach of, any of the terms, provisions or
conditions of PC's Limited Liability Company Agreement or of any other
material agreement to which PC is a party, (ii) violate, conflict with or
result in the breach or termination of, or otherwise give any party the
right to terminate, or constitute an event which, after the giving of notice
or the passage of time, or both, would constitute a default under the terms
of, any material agreement or instrument to which PC is a party or by which
it or any of its material properties or assets is bound, and which in any of
the foregoing cases, either separately or in the aggregate, might materially
and adversely affect the operations or financial condition of PC, or (iii)
result in the creation of any lien, charge or encumbrance upon any material
properties or assets of PC (other than the PPI Stock) pursuant to the terms
of any such agreement or instrument which, in the aggregate, might
materially and adversely affect the operations or financial condition of PC.

        7.      Investors' Rights Agreement.   Concurrently with the execution
of this Agreement and as a condition to PC's obligations hereunder, PC and
SHS will enter into an Investors' Rights Agreement substantially in the
form of Exhibit B attached hereto.

        8.      Binding upon Successors and Assigns.  Subject to, and unless
otherwise provided in, this Agreement, each and all of the covenants, terms,
provisions, and Agreements contained herein shall be binding upon, and inure
to the benefit of, the permitted successors, executors, heirs,
representatives, administrators and  assigns of the parties hereto.

        9.      Entire Agreement.  This Agreement constitutes the entire
understanding and Agreement of the parties hereto with respect to the subject
matter hereof and supersedes all prior and contemporaneous Agreements or
understandings, inducements or conditions, express or implied, written or oral,
between the parties with respect hereto and thereto.  The express terms hereof
control and supersede any course of performance or usage of the trade
inconsistent with any of the terms hereof.

        10.     Counterparts.  This Agreement may be executed in any number of
counterparts, each of which shall be an original as against any party whose
signature appears thereon and all of which together shall constitute one and
the same instrument.  This Agreement shall become binding when one or more
counterparts hereof, individually or taken together, shall bear the
signatures of all of the parties reflected hereon as signatories.

        11.     Amendment and Waivers.  Any term or provision of this Agreement
may be amended, and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively) only by a  writing signed by the party to be bound thereby.
The waiver by a party of any breach hereof or default in the performance
hereof shall not be deemed to constitute a waiver of any other default or
any succeeding breach or default.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first hereinabove written.

PORTOLA PACKING, INC.                   SAND HILL SYSTEMS, INC.

By:     /s/ James A. Taylor                       By:     /s/ Jack L. Watts
        --------------------                              --------------------
        James A. Taylor, President and                    Jack L. Watts,
        President and                                     Chief Executive Officer
        Chief Operating Officer

                                                  PORTOLA COMPANY IV LLC

                                                  By:     /s/ Jack L. Watts
                                                          ---------------------
                                                          Jack L. Watts, General Manager

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