Document:

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                                                                   EXHIBIT 10.49

NEITHER THIS NOTE NOR ANY SECURITIES WHICH MAY BE ISSUED UPON CONVERSION HEREOF
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
OR REGISTERED OR OTHERWISE QUALIFIED UNDER ANY STATE SECURITIES LAW. NEITHER
THIS NOTE NOR ANY SUCH SECURITIES MAY BE SOLD OR OFFERED FOR SALE IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND REGISTRATION OR OTHER
QUALIFICATION UNDER ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF
COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION OR OTHER QUALIFICATION
IS NOT REQUIRED.

THIS NOTE AND ALL SECURITIES WHICH MAY BE ISSUED UPON CONVERSION HEREOF ARE
SUBJECT TO A MARKET STAND-OFF RESTRICTION AS SET FORTH IN AN ASSET PURCHASE
AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THIS NOTE, A COPY OF
WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF SUCH
AGREEMENT, THIS NOTE AND ALL SECURITIES WHICH MAY BE ISSUED UPON CONVERSION
HEREOF MAY NOT BE TRADED PRIOR TO THE EXPIRATION OF SUCH STAND-OFF PERIOD AFTER
THE EFFECTIVE DATE OF THE INITIAL PUBLIC OFFERING OF THE COMMON STOCK OF THE
ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF ANY SUCH
SECURITIES.

                                 DOVEBID, INC.

                   CONVERTIBLE SUBORDINATED PROMISSORY NOTE

 US$750,000                                                        July 28, 2000

     DoveBid, Inc., a Delaware corporation (the "Company"), with offices at 1241
East Hillsdale Blvd., Foster City, CA 94404, for value received, promises to pay
to the order of MasonGreene Australasia Pty Ltd CAN 065 348 736, a Victorian
company ("Payee") at such address as Payee may designate, One Million U.S.
Dollars and No Cents ($1,000,000.00), plus interest thereon calculated from the
date hereof until paid at an annual rate equal to the minimum rate established
pursuant to Section 1274(d) of the Internal Revenue Code of 1986, as amended, as
of the date hereof, compounded annually. Principal and accrued interest will be
due and payable in lawful money of the United States in full on the two-year
anniversary of the date of this Note (the "Maturity Date"), unless this Note
shall have been previously converted pursuant to Section 2 below, in which case
all outstanding principal under this Note and all accrued interest thereon shall
be satisfied in full by virtue of such conversion and the issuance and delivery
of fully paid and non-assessable shares of Conversion Stock to the holder of
this Note as set forth in Section 2 below. Payments by the Company shall be
applied first to any and all accrued interest through the payment date and
second to the principal remaining due hereunder.

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

<PAGE>

     1.   Definitions.  As used in this Note, the following terms, unless the
          -----------
context otherwise requires, have the following meanings:

          1.1  "Company" includes any corporation or other entity which succeeds
to or assume the obligations of the Company under this Note.

          1.2  "Conversion Stock" shall mean shares of Common Stock of the
Company of the same class of common stock that is registered by the Company
pursuant to an Initial Public Offering.

          1.3  "Conversion Price" shall mean the price per share that is the
exact middle of the price range stated in the Company's final amended
registration statement on Form S-1, Form SB-1 or a similar successor form
pertaining to an Initial Public Offering that closes on before the Maturity
Date. No conversion shall occur and there is therefore no Conversion Price with
respect to an Initial Public Offering that closes after the Maturity Date.

          1.4  "Noteholder," "holder," or similar terms, when the context refers
to a holder of this Note, shall mean any person who shall at the time be the
registered holder of this Note.

          1.5  "Initial Public Offering" shall mean the closing of a sale of
Common Stock pursuant to a registration statement on Form S-1, Form SB-1 or SB-2
(or any similar or successor form) under the Securities Act of 1933, as amended
(the "Securities Act"), for an underwritten initial public offering.

          1.6  "Subordination Agreement" shall mean the Subordination Agreement
attached hereto as Annex A and incorporated by reference herein.
                   -------

     2.   Conversion.
          ----------

          2.1  Mandatory Conversion. This Note and all of the outstanding
               --------------------
principal and accrued and unpaid interest on and under this Note shall be
converted into Conversion Stock at the Conversion Price immediately prior to the
first closing of an Initial Public Offering before the Maturity Date. For
informational purposes, the Company shall provide the Noteholder with written
notice (at the most recent address for the Noteholder provided to the Company by
the Noteholder in writing) (i) within seven days after it files with the
Securities and Exchange Commission ("SEC") any registration statement on Form S-
1, Form SB-1 or Form SB-2 (or any similar or successor form) for an Initial
Public Offering, and (ii) reasonably promptly following the first closing of an
Initial Public Offering. Conversion as described in this Section 2.1 shall occur
only upon the closing of an Initial Public Offering, provided that (i) upon the
first closing of an Initial Public Offering, the conversion shall be deemed to
have occurred immediately prior to such first closing of such Initial Public
Offering, and (ii) as a condition precedent or condition subsequent to
conversion (the election between which type of condition shall be the Company's
sole election in the Company's sole discretion), the Noteholder must surrender
this Note for conversion at the principal office of the Company. Incident to any
conversion, the Conversion Stock will have those rights and privileges, and be
subject to those restrictions, of the shares of Common Stock as set forth in the
Company's Certificate of Incorporation, as amended from time to time, and the
Noteholder will receive the rights and be subject to the obligations applicable
to the purchasers of Common Stock, provided that the sale restriction referred
to in Section 5 below shall apply to the Conversion Stock. This Note shall not
be convertible and shall not be

                                       2

<PAGE>

converted into Conversion Stock if there is not an Initial Public Offering on or
before the Maturity Date.

          2.2  No Fractional Shares.  No fractional shares will be issued on
               --------------------
conversion of this Note. If on any conversion of this Note a fraction of a share
results, the Company will pay the cash value of that fractional share,
calculated on the basis of the applicable Conversion Price.

          2.3  Reservation of Stock.  Prior to any conversion of this Note
               --------------------
pursuant to Section 2.1 above, the Company will take such corporate action and
obtain such government consents and approvals as may, in the reasonable opinion
of its counsel, be necessary to authorize the issuance of a sufficient number of
shares of Conversion Stock into which this Note is to convert pursuant to
Section 2.1 above.

          2.4  Fully Paid Shares; Certificates.  All shares of Conversion Stock
               -------------------------------
issued upon the conversion of this Note shall be validly issued, fully paid and
non-assessable. The certificates representing the shares of Conversion Stock
issued upon conversion hereof shall be delivered to the holder against surrender
of this Note. The holder, by accepting this Note, undertakes and agrees to
accept such shares of Conversion Stock in full satisfaction of the outstanding
principal and accrued interest thereon in accordance with the terms of this
Note. Anything to the contrary in this Note notwithstanding, the Company's
obligation to issue shares of Conversion Stock to any holder of this Note is
expressly conditioned upon compliance of such issuance with applicable federal
and state securities laws without registration or other qualification
thereunder.

          2.5  No Rights or Liabilities as Shareholder.  This Note does not by
               ---------------------------------------
itself entitle the Noteholder to any voting rights or other rights as a
shareholder of the Company. In the absence of conversion of this Note, no
provisions of this Note, and no enumeration herein of the rights or privileges
of the holder shall cause such holder to be a shareholder of the Company for any
purpose by virtue hereof.

          2.6  No Other Conversion.  The conversion described in this Section 2
               -------------------
shall constitute the sole methods by which this Note will convert.

     3.   Subordination.  This Note and the indebtedness evidence by this Note
          -------------
are subordinated to the prior payment in full of all or substantially all other
indebtedness of the Company pursuant to the terms of a Subordination Agreement
in the form attached hereto as Annex A and incorporated herein by reference.
                               -------

     4.   Prepayment.  This Note may be prepaid, in its entirety (including the
          ----------
principal sum and interest accrued to the date of payment) without penalty or
premium at any time subject to the limitations on payment in the Subordination
Agreement.

     5.   Securities Matters; Restrictions on Transfers.  The Noteholder
          ---------------------------------------------
acknowledges that this Note has been issued pursuant to that certain Asset
Purchase Agreement, dated as of [July __, 2000], by and among DoveBid, DoveBid
Australasia Pty Ltd ACN #, a Victorian company and wholly owned subsidiary of
DoveBid, Payee, C. N. Mason & Associates Pty Ltd ACN 007 145 191, a Victorian
company and Christopher N. Mason (the "Purchase Agreement") in reliance on,
among other things, the representations, warranties and covenants of the Payee
therein, and that this Note is and the Conversion Stock upon their issuance will
be subject to restrictions on transfer in the Securities Act and state
securities

                                       3

<PAGE>

laws, and under the Purchase Agreement, including without limitation, market-
standback restrictions therein. Such restrictions will be binding on any
permitted transferee of this Note and/or the Conversion Stock, and the Company
may place legends on any certificates representing this Note or the Conversion
Stock, and may impose stop-transfer instructions with respect to such
securities.

     6.   Usury Savings Clause.  The Company and the Noteholder intend to comply
          --------------------
at all times with applicable usury laws. If at any time such laws would render
usurious any amounts due under this Note under applicable law, then it is the
Company's and the Noteholder's express intention that the Company not be
required to pay interest on this Note at a rate in excess of the maximum lawful
rate, that the provisions of this Section 6 shall control over all other
provisions of this Note which may be in apparent conflict hereunder, that such
excess amount shall be immediately credited to the principal balance of this
Note (or, if this Note has been fully paid, refunded by the Noteholder to the
Company), and the provisions hereof shall immediately be reformed and the
amounts thereafter decreased, so as to comply with the then applicable usury
law, but so as to permit the recovery of the fullest amount otherwise due under
this Note.

     7.   General Provisions.
          ------------------

          7.1  Notices.  All notices and other communications required or
               -------
permitted hereunder shall be effective upon receipt (or refusal of receipt) and
shall be in writing and delivered by depositing the same in United States mail,
addressed to the party to be notified, postage prepaid and registered or
certified with return receipt requested, by delivering the same in person to
such party or to an officer or agent of such party, as follows:

               (i)  If mailed or delivered to the Company, to each of the
following, using two separate mailings or deliveries:

                    DoveBid, Inc.
                    1241 East Hillsdale Blvd.
                    Foster City, California 94404
                    Attn: Cory Ravid, Chief Financial Officer

                    DoveBid, Inc.
                    1241 East Hillsdale Blvd.
                    Foster City, California 94404
                    Attn: Anthony Capobianco, General Counsel

               (ii) If mailed or delivered to the Payee, addressed to it at the
following address number:

                    ______________________________
                    ______________________________
                    ______________________________

               with a copy to:

                                       4

<PAGE>

or to such other address as any party hereto shall specify in writing to the
other parties hereto pursuant to this Section 7.1 from time to time. Such notice
shall be effective only upon actual receipt.

          7.2  Severability; Headings.  In case any provision of this Note shall
               ----------------------
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby, unless to do so would deprive the Noteholder or the Company of a
substantial part of its bargain. All headings used herein are used only for
convenience and shall not be used to construe or interpret this Note.

          7.3  Assignment.  Neither this Note nor any right or obligation
               ----------
hereunder may be assigned or delegated by Payee without the prior written
consent of Company. Neither this Note nor any right or obligation hereunder may
be assigned or delegated by Company without the prior written consent of Payee,
except pursuant to a merger in which Company is a party, or pursuant to a sale
or other transfer of substantially all of the assets of Company. Any purported
assignment in violation of this paragraph shall be void.

          7.4  Amendment; Waiver.  Any provision of this Note may be amended or
               -----------------
modified only by a writing signed by both Company and Payee. Compliance with any
provision of this Note may be waived only by a writing signed by the party
against which enforcement of the change, waiver, discharge or termination is
sought.

          7.5  Governing Law.  This Note shall be construed and enforced in
               -------------
accordance with, and governed by, the internal laws of the State of California,
excluding that body of law applicable to conflicts of laws.

          7.6  United States Dollars.  All dollar amounts set forth in this Note
               ---------------------
are United States Dollars.

              [The rest of this page is intentionally left blank]

                                       5

<PAGE>

     IN WITNESS WHEREOF, each party has caused this Note to be executed as of
the date first set forth above.

                                   DOVEBID, INC.

                                   By: /s/ Anthony Capobianco
                                      ------------------------------------------
                                   Name:  Anthony Capobianco
                                   Title: Vice President and General Counsel

Acknowledged and Agreed to:

MASONGREENE AUSTRALASIA PTY LTD

By: /s/ Peter Cook
   -----------------------------
   President

<PAGE>

                                                                      Annex A to
                                        Convertible Subordinated Promissory Note

                            SUBORDINATION AGREEMENT

     This Subordination Agreement (this "Subordination Agreement") is made as of
July __, 2000 by and between DoveBid, Inc. (the "Company") and Masongreene
Australasia Pty Ltd ACN 065 348 736, a Victorian company ("Creditor"), for the
benefit of all holders of Senior Debt (as defined below).

          A.   The Company concurrently herewith is issuing to Creditor its
Convertible Subordinated Promissory Note dated as of the same date as this
Subordination Agreement (collectively, the "Notes");

          B.   It is a term of the Notes that any and all amounts owing to
Creditor (or any subsequent holder of the Notes) under or pursuant to the Notes
be subordinated in right of payment to the prior payment in full of any and all
Senior Debt of the Company (as defined below); and

          C.   This Subordination Agreement sets forth the particular terms of
such subordination, and this Agreement is incorporated into and constitutes a
part of the Notes.

          Now, therefore, the parties agree as follows:

     1.   Subordination; Note Subordinated to Senior Debt.  Notwithstanding
          -----------------------------------------------
anything to the contrary contained in either of the Notes or in this Annex A,
the Company covenants and agrees and each holder of a Note, by such holder's
acceptance thereof likewise covenants and agrees, that such Note shall be and is
issued subject to the provisions of this Subordination Agreement; and each
person holding such Note, whether upon original issue or upon transfer,
assignment or exchange thereof accepts and agrees that all payments of
Subordinated Obligations (all capitalized terms used in this Subordination
Agreement that are not defined above are used as defined in Section 9 below) by
the Company shall, to the extent and in the manner set forth in this
Subordination Agreement, be subordinated and junior in right of payment, to the
prior payment in full in cash or cash equivalents of all amounts payable on or
under any and all Senior Debt (including principal, interest, fees, commissions,
expenses and indemnities in respect thereof and any interest accruing subsequent
to the commencement or filing of any petition in any bankruptcy or insolvency
proceeding at the rate provided for in the documents governing such Senior Debt,
whether or not such interest is an allowed claim enforceable against the debtor
in a bankruptcy case under Title 11 of the United States Code).

          To the extent any payment of Senior Debt (whether by or on behalf of
the Company, as proceeds of security or enforcement of any right of setoff or
otherwise) is declared to be fraudulent or preferential, set aside or required
to be paid to a trustee, receiver or other similar party under any bankruptcy,
insolvency, receivership, fraudulent conveyance or similar law, then if such
payment is recovered by, or paid over to, such trustee, receiver or other
similar party, the Senior Debt or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred. To the extent the obligation to repay any Senior Debt is
declared to be fraudulent, invalid or otherwise set aside under any bankruptcy,
insolvency, receivership, fraudulent conveyance or similar law,

<PAGE>

then the obligations so declared fraudulent, invalid or otherwise set aside (and
all other amounts which would come due with respect thereto had such obligations
not been so affected) shall be deemed to be reinstated and outstanding as Senior
Debt for all purposes hereof as if such declaration, invalidity or setting aside
had not occurred.

     2.   No Payment on Securities in Certain Circumstances.
          -------------------------------------------------

          (a)  No direct or indirect payment by or on behalf of the Company of
Subordinated Obligations, whether pursuant to the terms of the Notes or upon
acceleration or otherwise shall be made if, at the time of such payment there
exists a default in the payment of all or any portion of the obligations on any
Senior Debt and such default shall not have been cured or waived or the benefits
of this sentence waived by or on behalf of the holder of such Senior Debt.

          (b)  In the event of any other default with respect to any Senior Debt
pursuant to which the maturity thereof may be accelerated, upon the receipt by
the holder of the Notes of written notice from a Designated Senior Creditor or
the Company, no payment of Subordinated Obligations may be made by or on behalf
of the Company for a period (a "Payment Blockage Period") commencing on the date
of receipt of such notice and ending 270 days thereafter (unless such Payment
Blockage Period shall be terminated by written notice to the holder from a
Designated Senior Creditor or all defaults with respect to Senior Debt shall
have been cured or waived). For purposes of this Section 2(b), after the
commencement of a Payment Blockage Period, no subsequent Payment Blockage Period
may be commenced unless a period of 30 consecutive days has passed since the
termination of the immediately preceding Payment Blockage Period. Subject to the
preceding sentence, successive Payment Blockage Periods may be commenced
hereunder.

          (c) In the event that, notwithstanding the foregoing provisions of
this Section 2, any payment shall be received by any holder of a Note when such
payment is prohibited by Section 2(a) or 2(b) of this Subordination Agreement,
such payment shall be held for the benefit of, and shall be paid over or
delivered to, the holders of Senior Debt or their respective representatives, or
to the trustee or trustees under any indenture pursuant to which any of such
Senior Debt may have been issued, as their respective interests may appear.

     3.   Payment Over of Proceeds Upon Dissolution, Etc.
          ----------------------------------------------

          (a)  Upon any payment or distribution of assets or securities of the
Company, as the case may be, of any kind or character, whether in cash, property
or securities, upon any dissolution or winding-up or total or partial
liquidation or reorganization of the Company, whether voluntary or involuntary
or in bankruptcy, insolvency, receivership or other proceeding, all amounts due
or to become due upon all Senior Debt (including interest accruing subsequent to
the commencement or filing of any petition in any bankruptcy or insolvency
proceeding at the rate provided for in the documents governing such Senior Debt,
whether or not such interest is an allowed claim enforceable against the debtor
in a bankruptcy case under Title 11 of the United States Code) shall first be
indefeasibly paid in full in cash or cash equivalents, before the holder of any
Note shall be entitled to receive any payment on account of the Subordinated
Obligations, or any payment to acquire a Note for cash, property or securities
or any distribution with respect to a Note of any cash, property or securities.
Before any payment may be made by or on behalf of the Company of the
Subordinated Obligations, upon any such dissolution, winding-up, liquidation or

                                       2

<PAGE>

reorganization, any payment or distribution of assets or securities of the
Company of any kind or character, whether in cash, property or securities, to
which the holder of a Note would be entitled, except for the provisions of this
Subordination Agreement, shall be made by the Company or by any receiver,
trustee in bankruptcy, liquidating trustee, agent or other Person making such
payment or distribution, or by the holder of such Note if received by it,
directly to the holders of Senior Debt (pro rata to such holders on the basis of
the respective amounts of Senior Debt held by such holders) or their respective
representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Senior Debt may have been issued, as their respective
interests may appear, to the extent necessary to pay all such Senior Debt
indefeasibly in full in cash or cash equivalents after giving effect to any
concurrent payment, distribution or provision therefor to or for the holders of
such Senior Debt.

          (b)  In the event that, notwithstanding the foregoing provision of
this Section 3 prohibiting such payment or distribution, any payment or
distribution of assets or securities of the Company of any kind or character,
whether in cash, property or securities, shall be received by the holder of a
Note at a time when such payment or distribution is prohibited by Section 3(a)
of this Subordination Agreement and before all obligations in respect of Senior
Debt are indefeasibly paid in full in cash or cash equivalents, such payment or
distribution shall be received and held for the benefit of, and shall be paid
over or delivered to, the holders of Senior Debt (pro rata to such holders on
the basis of the respective amount of Senior Debt held by such holders) or their
respective representatives, or to the trustee or trustees under any indenture
pursuant to which any of such Senior Debt may have been issued, as their
respective interests may appear, for application to the payment of Senior Debt
remaining unpaid until all such Senior Debt has been indefeasibly paid in full
in cash or cash equivalents, after giving effect to any concurrent payment,
distribution or provision therefor to or for the holders of such Senior Debt.

          (c)  For purposes of this Subordination Agreement, the words "cash,
property or securities" shall not be deemed to include, so long as the effect of
this Section 3(c) is not to cause any Note to be treated in any case or
proceeding or similar event described in this Subordination Agreement as part of
the same class of claims as the Senior Debt or any class of claims on a parity
with or senior to the Senior Debt for any payment or distribution, securities of
the Company or any other corporation provided for by a plan of reorganization or
readjustment which are subordinated, to at least the same extent as such Note to
the payment of all Senior Debt then outstanding; provided that (i) if a new
corporation or entity results from such reorganization or readjustment, such
corporation or entity assumes the Senior Debt and (ii) the rights of the holders
of the Senior Debt are not, without the consent of such holders, altered by such
reorganization or readjustment. The consolidation of the Company with, or the
merger of the Company with or into, a corporation (or other entity) or the
liquidation or dissolution of the Company following the conveyance or transfer
of its property as an entirety, or substantially as an entirety, to another
corporation or entity upon the terms and conditions, if any, allowed by the
Senior Debt shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section if such other corporation shall,
as a part of such consolidation, merger, conveyance or transfer, comply with the
conditions stated in the Senior Debt.

     4.   Subrogation.  Upon the indefeasible payment in full of all Senior Debt
          -----------
in cash or cash equivalents, the holder of the Notes shall be subrogated to the
rights of the holders of Senior Debt to receive payments or distributions of
cash, property or securities of the Company made on such Senior Debt pro rata
based on the aggregate outstanding balances of

                                       3

<PAGE>

the Notes at such time until the principal of, premium, if any, and interest on
the Notes shall be paid in full; and, for the purposes of such subrogation, no
payments or distributions to the holders of the Senior Debt of any cash,
property or securities to which the holder of any Note would be entitled except
for the provisions of this Subordination Agreement and no payment over pursuant
to the provisions of this Subordination Agreement to the holders of Senior Debt
by the holder of any Note shall, as between the Company, its creditors other
than holders of Senior Debt, and the holder of such Note, be deemed to be a
payment by the Company to or on account of the Senior Debt. It is understood
that the provisions of this Subordination Agreement are and are intended solely
for the purpose of defining the relative rights of the holders of Notes, on the
one hand, and the holders of the Senior Debt, on the other hand.

     5.   Obligations of Company Unconditional.  Nothing contained in this
          ------------------------------------
Subordination Agreement is intended to or shall impair, as among the Company and
holders of Notes, the obligation of the Company, which is absolute and
unconditional, to pay to the holder of the Notes the principal of, premium, if
any, and interest on the Notes as and when the same shall become due and payable
in accordance with their terms, or is intended to or shall affect the relative
rights of the holder of the Notes and creditors of the Company other than the
holders of the Senior Debt.

     6.   Reliance on Judicial Order or Certificate of Liquidating Agent.  Upon
          --------------------------------------------------------------
any payment or distribution of assets or securities referred to in this
Subordination Agreement, each holder of a Note shall be entitled to rely upon
any order or decree made by any court of competent jurisdiction in which
bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings
are pending, or upon a certificate of the receiver, trustee in bankruptcy,
liquidating trustee, agent or other person making such payment or distribution,
delivered to such holder of such Note for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior
Debt and other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Subordination Agreement.

     7.   Subordination Rights Not Impaired by Acts or Omissions of the Company
          ---------------------------------------------------------------------
or Holders of Senior Debt.  No right of any present or future holders of any
-------------------------
Senior Debt to enforce subordination as provided herein will at any time in any
way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any act or failure to act by any such holder, or by any
noncompliance by the Company with the terms of any Notes, regardless of any
knowledge thereof which any such holder may have or otherwise be charged with.
The provisions of this Subordination Agreement are intended to be for the
benefit of, and shall be enforceable directly by, the holders of Senior Debt.

     8.   No Waiver of Subordination Provisions.  Without in any way limiting
          -------------------------------------
the generality of Section 7, the holders of Senior Debt may, at any time and
from time to time, without the consent of or notice to any holder of any Note,
without incurring responsibility to the holder of any Note and without impairing
or releasing the subordination provided in this Subordination Agreement or the
obligations hereunder of the holder(s) of the Notes to the holders of Senior
Debt, do any one or more of the following: (a) change the manner, place or terms
of payment or extend the time of payment of, or renew or alter, Senior Debt or
any instrument evidencing the same or any agreement under which Senior Debt is
outstanding or secured; (b) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Debt; (c) release any
Person liable in any manner for the collection of Senior Debt and (d) exercise
or refrain from exercising any rights against the Company and any other Person.

                                       4

<PAGE>

     9.   Definitions.  As used in this Subordination Agreement, the terms set
          -----------
forth below shall have the respective meanings set forth opposite such terms
below:

     "Designated Senior" means any holder of Senior Debt or any agent, trustee
or other similar representative for such a holder.

     "Person" means an individual, a corporation, a partnership, an association,
a trust or any other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

     "Senior Debt" means all debt and other monetary obligations of the Company
(including, without limitation, under any note, credit agreement, mortgage,
indenture, instrument or contract of any type or nature), and the Company's
guarantee of any debt or monetary obligation of any subsidiary of the Company,
in each case whether now existing or hereafter arising, and in each case
including all principal, interest, fees and expenses owing on or in connection
with such debt or other monetary obligations, as the same may be modified,
amended, restated or supplemented from to time; provided that the term "Senior
Debt" shall not include (a) any debt or other monetary obligation that expressly
provides in writing that it is subordinate to or pari passu with the Notes, (b)
                                                 ---- -----
any debt of the Company which, when incurred and without respect to any election
under Section 1111(b) of Title 11, United States Code, was without recourse to
the Company, (c) any debt of the Company to a subsidiary of the Company, (d) any
debt for borrowed money to any employee or director of the Company, and (e) any
accounts payable to trade creditors created or assumed by the Company or any
subsidiary of the Company in the ordinary course of business in connection with
the obtaining of materials or services.

     "Subordinated Obligations" means principal and interest payable under or in
respect of the Notes, any fees, expenses or rights of reimbursement under or in
respect of the Notes, and all other claims, rights of rescission or other rights
of action under or in respect of the Notes.

     10.  Suspension of Certain Remedies.  Notwithstanding anything to the
          ------------------------------
contrary contained elsewhere in the Notes, until all Senior Debt has been
indefeasibly repaid in full, no holder of any Note may commence or join with any
creditor in commencing, any bankruptcy, insolvency or similar proceeding with
respect to the Company or any of its subsidiaries.

     11.  Amendment, Supplement and Waiver.  This Subordination Agreement may be
          --------------------------------
amended, modified or supplemented only by a written instrument executed by the
Company, the holder of each Note, and each holder of Senior Debt affected
thereby.

     12.  Successors and Assigns.  This Subordination Agreement shall be binding
          ----------------------
upon and inure to the benefit of the successors and assigns of the parties
hereto.

     13.  Attorney's Fees.  If the holder of any Note files any claim to enforce
          ---------------
its rights under such Note, the holder shall be entitled to recover its
reasonable attorneys' fees from the Company; provided that the Company shall not
be required to reimburse the holder for any attorney's fees incurred or actions
taken at a time when payments are not permitted to be made on such Note pursuant
to this Subordination Agreement or for any assertion of rights by the holder
under such Note to the extent the rights being asserted are not permitted to be
exercised by virtue of the provisions of this Subordination Agreement.

                                       5

<PAGE>

     14.  Governing Law.  This Subordination Agreement shall be construed and
          -------------
enforced in accordance with, and governed by, the internal laws of the State of
California, excluding that body of law applicable to conflicts of laws.

              [The rest of this page is intentionally left blank]

                                       6

<PAGE>

     IN WITNESS WHEREOF, each party has caused this Subordination Agreement to
be executed as of the date first set forth above.

                                       DOVEBID, INC.

                                       By: ______________________________
                                       Name:  Anthony Capobianco
                                       Title: Vice President and General Counsel

                                       CREDITOR:

                                       MASONGREENE AUSTRALASIA PTY
                                       LTD

                                       By: _______________________________
                                       ________

                                       1<PAGE>

                                                                   Exhibit 10.50

Office Lease - 10218 North Port Washington Road

                                  OFFICE LEASE

     THIS LEASE AGREEMENT, made and entered into this __ day of March, 2000 (the
"Commencement Date") by and between FFI2, LLC, a Wisconsin limited liability
company (hereinafter referred to as LESSOR) and DoveBid Valuation Services,
Inc., a California corporation located at 1241 East Hillsdale Blvd., Foster
City, CA 94404 (hereinafter referred to as LESSEE).

WITNESSETH:

1. PREMISES LESSOR does hereby Lease, demise and let unto the LESSEE, and the
LESSEE does hereby take from the LESSOR, all upon the following terms and
conditions, a certain nine thousand one hundred ninety and thirty-two one
hundredths (9,190.32) square feet of office space identified in Exhibit A
attached hereto (hereinafter referred to as the "Demised Premises") which are a
part of an office building (the "Building") owned by LESSOR located at 10218
North Port Washington Road, in the City of Mequon, County of Ozaukee, State of
Wisconsin, outlined in Exhibit A to this Lease. The Demised Premises are a part
of the real property legally described on Exhibit B which is attached hereto and
incorporated by reference and containing a total of thirteen thousand seven
hundred eighty-five and forty-eight one hundredths (13,785.48) square feet (the
"Total Rentable Space").

2. PURPOSE LESSEE shall use the Demised Premises for any purposes or uses
authorized by law.

3. TERM  The term of this Lease shall be for a period of thirty-six (36) months
beginning on the Commencement Date (provided LESSEE shall have received all
necessary permits and licenses for the operation of LESSEE'S business) and
terminating on the last day of February, 2003, at 11:59 p.m. (the "Termination
Date'") unless otherwise extended upon the terms hereunder. This Lease may be
extended on the same terms and conditions contained herein by LESSEE for a
period of thirty-six (36) months (the "Extended Period") commencing on the 1st
day of March, 2003 at 12:00 a.m., provided that LESSOR receives no later than
one hundred twenty (120) days prior to the Termination Date, written notice from
LESSEE of LESSEE'S decision to extend this Lease.

4. RENT  The LESSEE shall pay to the LESSOR at its office as and for base rental
for the Demised Premises for the first thirty six (36) months of occupancy an
amount equal to Fifteen Dollars ($15.00) per square foot of the Demised Premises
in the sum of Eleven Thousand Four Hundred Eighty-seven and Fifty-one hundredths
Dollars ($11,487.50) in equal monthly installments, payable in advance on the
first day of each month during the Term of the Lease. The base rent shall
increase on March 1, 2001, and each remaining year of the Lease, including the
Extended Term, if applicable, by the lesser of the increase in the Milwaukee
Metropolitan CPI or 2.5%. The increase in the Milwaukee Metropolitan CPI is
calculated by subtracting the current year index from the previous year index
and dividing that amount by the previous year index. In the event the LESSEE
commences its occupancy of the Demised Premises on a day other than the first
day of the month, the rental for that month shall be prorated and adjusted

                                       1

<PAGE>

accordingly. In the event LESSEE fails to make a monthly payment of rent within
ten (10) days after its due date. LESSEE shall pay a late charge of one percent
(1%) per month which shall not exceed an amount otherwise prohibited by law.

5. TAXES  LESSEE agrees to timely pay when due all personal property taxes,
whether assessed against LESSOR or LESSEE, on LESSEE'S furniture, equipment and
other items or personal property owned by LESSEE and located in or about the
Demised Premises. LESSEE does not have responsibility for LESSOR'S personal
property. LESSEE will be responsible for LESSEE'S pro rata share equal to 66.7%
of the real estate taxes on the property which percentage is based on the
percentage of the total square footage of the Total Rentable Space that the
Demised Premises occupy. LESSEE agrees to pay all real estate taxes by the due
date if LESSOR provides all appropriate information with respect thereto to
LESSEE at least fifteen (15) business days prior to such due date. If the LESSOR
timely provides such information and if the LESSEE does not pay the taxes by the
due date. the LESSOR may pay the taxes and add the total amount of taxes and
penalties to the rent along with interest of 1% on the unpaid balance per month.

6. UTILITIES AND SERVICES  LESSOR shall furnish heat and air conditioning,
water, and sewer. Services which are the responsibility of the LESSOR shall be
provided as shall be reasonably necessary to the comfortable use and occupancy
of the Demised Premises during business hours, upon the condition that the
LESSOR shall not be liable for damages for failure to do so due to causes
reasonably beyond its control. The LESSEE shall be responsible for paying its
pro rata share (66.7%) of the monthly utilities bills. This allocation is based
on the percentage of the total square footage of the Total Rentable Space that
the Demised Premises occupy. This amount will be billed one month in arrears.

7. USE  The Demised Premises shall be used only for the purposes set forth in
Section 2 above and for no other purposes. LESSEE shall not do or permit
anything to be done in or about the Demised Premises which in any way will
obstruct or interfere with the rights of any other occupants of the Total
Rentable Space or use or allow the Demised Premises to be used for any improper,
immoral, unlawful or objectionable purpose or which could injure the reputation
of the Building or otherwise violate any recorded covenant or restriction
affecting the building. LESSEE shall not cause or maintain or permit any
nuisance or commit or suffer the commission of any waste in, on or about the
Building.

8. CARE OF PREMISES  The LESSEE shall keep the Demised Premises, including all
plumbing and electrical components, doors, windows, and other components
physically located within the Demised Premises, in as good a condition as when
turned over to it, reasonable wear and tear and damage by fire and elements
excepted; and shall keep the Demised Premises in an orderly, clean and sanitary
condition as required by the laws and ordinances applicable thereto; and shall
neither do nor permit to be done therein anything which is in violation of the
terms of endurance policies on said building, or in violation of laws or
ordinances applicable thereto; shall be responsible for the janitorial services
as they relate to the interior space of the Demised Premises; shall neither
commit or suffer waste in said Demised Premises. LESSEE shall be responsible for
any and all ordinary and extraordinary non-structural maintenance, repairs, of
the Demised Premises; shall pay for all glass broken by its fault or negligence,
or the fault or negligence of its employees or invitees; shall pay for the cost
of keeping or keep the sidewalks,

                                       2

<PAGE>

parking lots, and driveways located on the pad surrounding the Building free and
clear of all debris, snow and ice; shall keep the lawn on the pad surrounding
the Building mowed in a reasonable fashion; shall be responsible for the waste
removal for the Building; and shall comply with reasonable rules and regulations
as may from time to time be established by the LESSOR to govern the use,
occupancy and operation of the Demised Premises.

Except where caused by LESSEE'S negligence or willful misconduct, LESSOR shall
be responsible for providing for and the cost of any maintenance, repairs or
alterations necessary to keep the structure of the Building in a good and
functioning condition. The maintenance of the common area restrooms and supplies
used by the LESSEE is the responsibility of the LESSOR.

9. INSPECTION AND REPAIRS  LESSOR shall have the right to enter the Demised
Premises at all reasonable times for the purpose of inspection, cleaning,
repairing, altering or improving the same. All attempts shall be made to perform
such services with the LESSEE present. In the event of an emergency, the LESSOR
will supervise any outside contractors entering the LESSEE'S area. The LESSEE is
aware that utilities to the building are located in areas adjoining this space.

10. ALTERATIONS  LESSEE shall not make any alterations or improvements in or to
the Demised Premises without first obtaining the written consent of LESSOR which
shall not be unreasonably withheld or delayed.

11. OCCUPANCY PERMIT/LESSEE'S COMPLIANCE WITH GOVERNMENTAL ORDERS  LESSEE, at
its sole cost and expense, shall promptly observe and comply with, and obtain an
occupancy permit, and all other necessary licenses and permits under all present
and future laws, statutes, ordinances, rules, orders, directions or regulations
of any governmental authority having jurisdiction over the Demised Premises and
LESSEE'S business.

12. ASSIGNMENT AND SUBLETTING  The LESSEE may not sublease the Demised Premises
or otherwise assign any of its rights or delegate obligations hereunder without
the prior written consent of the LESSOR except that LESSEE may assign its rights
and obligations hereunder without the prior written consent of LESSOR in
connection with an assignment to an affiliate, a merger, consolidation or sale
of all or substantially all of such LESSEE'S assets or in connection with a
reincorporation, reorganization or other corporate recapitalization, provided
that the acquiring or surviving corporation or entity agrees to assume all of
the LESSEE'S obligations under this Lease, and provided further that, in the
case of an asset sale transaction only, the LESSEE shall remain liable if the
assignee fails to perform the delegated obligations hereunder. In any event,
LESSEE shall remain liable for the payment of all rent required to be paid
hereunder and for the performance of all terms, conditions, and covenants herein
undertaken by LESSEE and the sub LESSEE or assignee, as the case may be, shall
likewise be liable. Any sublease or assignment, regardless of the aforementioned
exception, shall require the consent of LESSOR which shall not be unreasonably
withheld or delayed, with respect to the proposed use of the Demised Premises by
such assignee or sublessee.

13. HOLDING OVER  In the event the LESSEE continues to occupy the Demised
Premises after the expiration or proper termination of this Lease, and the
LESSOR elects to accept rent thereafter, this Lease shall be deemed extended on
a month-to-month basis only,

                                       3

<PAGE>

subject to all terms, conditions, rentals provisions and obligations of this
Lease in so far as the same are applicable to a month-to-month tenancy.

14. DAMAGE BY FIRE OR OTHER CASUALTY  It is agreed that in case said Demised
Premises shall become untenantable or unfit for occupancy, in whole or in part,
by the total or partial destruction of said building by fire or other casualty,
and said LESSOR shall fail or refuse within fifteen (15) days thereafter to
agree in writing to restore the same within sixty (60) days, this Lease may be
terminated by either LESSOR or LESSEE by notice in writing; and in case said
LESSOR shall agree in writing to restore the same within said time, the rent to
be paid hereunder pending such restoration shall be abated in proportion to the
loss and impairment of the use of said Demised Premises.

If, however, any destruction or damage to the Demised Premises or Building
(regardless of whether or not the Demised Premises are affected) is so extensive
that LESSOR, in its sole discretion, elects not to repair or restore the Demised
Premises or Building, or the proceeds of insurance are not sufficient or
available to fully pay the cost of repair or restoration, then LESSOR or LESSEE
may terminate this Lease effective as of the date of the damage by written
notice to LESSEE or LESSOR as appropriate. The provisions of this Section are
subject to the rights of LESSOR'S mortgagee, if any. If any destruction or
damage shall cause the continuance of this Lease to be commercially
unreasonable, then LESSOR or LESSEE may terminate this Lease effective as of the
date of the damage by written notice to LESSOR or LESSEE, as appropriate.

15. CONDEMNATION  If all or a part of the Demised Premises or building shall be
taken by right or eminent domain or by a voluntary conveyance in lieu thereof,
and if such taking or conveyance materially interferes with the use and
occupancy of the Demised Premises by LESSEE, either party my terminate this
Lease on 15 days written notice. No part of any proceeds paid as a result of the
condemnation, including LESSOR'S insurance, shall be payable to LESSEE.

16. LESSEE'S DEFAULT  LESSEE shall remain liable for any deficiency of rent and
agrees to pay the same if it abandons or vacates the Demised Premises before the
expiration of the term hereof or in the event this Lease is terminated for any
breach of this Lease on the part of LESSEE, provided that LESSOR shall make
reasonable efforts to re-rent the Demised Premises and all proceeds received
therefrom shall be applied toward LESSEE'S obligation. If LESSEE vacates or
abandons the Demised Premises or this Lease is terminated prior to the
expiration of term hereof. LESSOR may enter to prepare the Demised Premises for
the next lessee. Such entry, unless expressly stated in writing to the contrary
by LESSOR shall not be deemed acceptance of the Demised Premises as an ultimate
surrender so as to release the LESSEE from further liability under the
provisions of this Lease and shall be deemed an entry for the purpose of
mitigating damages. Newspaper advertising shall not necessarily be required of
LESSOR to mitigate damages. Attempts to mitigate damages need not be commenced
until after LESSEE actually vacates, whether or not LESSOR has prior notice of
LESSEE'S intention to so do.

         The failure of LESSEE to pay the rent or any other charge five (5) days
after receipt by LESSEE of written notice from LESSOR that such rent or other
charge is due is hereafter called a "Rental Default". The failure of LESSEE to
comply with any other covenant

                                       4

<PAGE>

or rule or regulation which is to be performed or observed by LESSEE, is
hereafter called an "Other Default". In the case of a Rental Default. LESSOR may
terminate this Lease. In the case of an Other Default, LESSEE shall deliver up
possession of the Demised Premises if LESSOR gives LESSEE notice to cure such
default or vacate the Demised Premises on or before a date at least fifteen (15)
days after the giving of the notice and LESSEE fails to cure such default
accordingly. No act of LESSOR in terminating this Lease or recovering possession
of the Demised Premises shall discharge LESSEE from payment of any rent reserved
in this Lease for the term thereof and LESSEE shall remain liable for all of
such rent and all of the damages sustained by LESSOR on account of the breach of
this Lease by LESSEE. In case of a Rental Default or an Other Default, LESSOR,
may, in addition to terminating this Lease, or in lieu thereof, accelerate all
or any part of the rental payments and other charges, discounted at 7% per
annum, becoming due under this Lease and/or pursue such other remedy, or
combination of remedies, and recover such other damages for breach of tenancy
and/or contract as are available at law. If LESSEE fails to comply with an
obligation which cannot be cured by the payment of money, LESSOR may, after the
service of a 15-day notice, enforce the same by specific performance, mandatory
injunction or other equitable relief.

     After the service of a notice or the commencement of a suit or after final
judgment for possession of the Demised Premises, LESSOR may receive and collect
any rent due and apply the same as and for use and occupancy, and the payment
and receipt thereof shall not waive or affect any such notice, suit or judgment.
LESSEE agrees that all of the covenants and agreements on the part of LESSEE in
this Lease shall be deemed to be conditions as well as covenants, and if LESSEE
causes a Rental Default or Other Default, then LESSOR shall have the right to
re-enter and take possession of the Demised Premises and remove or cause LESSEE
to be removed from the Demised Premises in such manner as LESSOR may deem
advisable. If at any time during the term of this Lease, LESSEE voluntarily or
involuntarily (1) deserts or abandons the Demised Premises, (2) is adjudicated
as bankrupt or insolvent, or (3) has a receiver appointed for all or
substantially all of its business or assets on the ground of LESSEE'S
insolvency, or (4) has a trustee appointed for it after a petition has been
filed for LESSEE'S reorganization under the Bankruptcy Act of the United States
or any future law of the United States having the same general purpose, or (5)
makes a voluntary assignment for the benefit of its creditors (all of which are
included in the definition herein of "Other Defaults"), then, in any such event,
LESSOR shall have the right, at LESSOR'S election, to give LESSEE notice of
LESSOR'S intention to immediately terminate this Lease.

     In case of any breach or default by LESSEE followed by re-entry by LESSOR,
or in case LESSEE shall be dispossessed for any cause by LESSOR or in the event
that LESSOR shall obtain possession of the Demised Premises in any manner after
any breach or default by LESSEE, rent shall be paid up to the time of such
re-entry, dispossession or cessation of the term, and thereafter LESSOR shall
have the right to call immediately due and payable, discounted at 7% per annum
after due and payable, sue for and recover all rents and other sums due or to
become due hereunder, including damages arising out of any default on the part
of LESSEE. Alternatively, LESSOR may relet the Demised Premises for a term or
terms which may, at LESSOR'S option, exceed the period which would otherwise
have constituted the balance of the term of this Lease, and in such event LESSEE
shall also pay to LESSOR any and all deficiency there may be between the rental
and all other sums or payments to be paid by LESSEE as provided herein and the
net amount of rentals and other sum or sums collected on

                                       5

<PAGE>

account of Leases of the Demised Premises (after deducting from the gross
receipts the expenses of every kind of LESSOR in connection with letting the
Demised Premises, together with all attorney fees and also all other expenses,
costs and payments which, in accordance with the terms of this Lease, would have
been borne by LESSEE). Notwithstanding the termination of this Lease, the
dispossession of LESSEE or the re-entry by LESSOR, the liability of LESSEE
hereunder shall continue. LESSOR shall also have the right, without resuming
possession of the Demised Premises or terminating this Lease, to call
immediately due and payable, sue for and recover all rents and other sums,
including damages, at any time and from time to time accruing hereunder, subject
to LESSOR'S obligation to mitigate damages.

     In addition to any and all other remedies, LESSOR may also restrain any
threatened breach of any covenant, condition or agreement herein contained. The
mention herein of and particular remedy or right shall not preclude LESSOR from
any other remedy or right LESSOR might have either in law or equity, or by
virtue of some other provisions of this Lease; nor shall consent to or waiver of
one violation or default be a consent to or a waiver of a subsequent violation
or default. Receipt by LESSOR of rent or other payment from LESSEE or from
anyone other than LESSEE shall not be deemed to operate as a waiver of any right
of LESSOR to enforce the payment by LESSEE of any rent or other payment
previously due or which may thereafter become due or of any rights of LESSOR to
terminate this Lease or to exercise any remedy or right which might otherwise be
available to LESSOR.

     LESSEE agrees to pay all costs reasonably incurred by LESSOR in enforcing
the terms of this Lease including all costs of collection plus reasonable
attorneys' fees.

17. SIGNS  The LESSEE shall not place or cause to be placed any signs upon the
Demised Premises without the prior written consent of the LESSOR and such
consent shall not be unreasonably withheld or delayed. It is understood that any
signs requested by the LESSEE would conform to the design of the existing signs.

18. COMMON AREAS  LESSOR shall be obligated to maintain the Common Areas in the
Building. LESSOR from time to time may increase, decrease or otherwise change
the size, layout, location and nature of the Common Areas and facilities.

19. PARKING  LESSEE and LESSEE'S employees, customers and invitees shall have
the nonexclusive right to use the parking spaces located within the Common Areas
of the business park. LESSOR reserves the right to regulate parking within the
Common Areas, including the right to preclude LESSEE from parking in certain
parking spaces or requiring LESSEE to use certain parking spaces. LESSEE shall
not permit vehicles to be abandoned or stored in the Buildings parking areas.

20. SUBORDINATION  This Lease shall be subordinate in all respects to the lien
of any mortgage or mortgages placed against real estate in which the Demised
Premises are located, including subsequent mortgages and all modifications of
same. The LESSOR shall use reasonable efforts to obtain a Subordination,
Non-Disturbance and Attornment Agreement from existing mortgagees, and will
obtain a reasonable Subordination, Non-Disturbance and Attornment Agreement from
future mortgagees.

                                       6

<PAGE>

21. LIENS  LESSEE shall not suffer or permit any liens under any construction
lien law to be filed or recorded against the Demised Premises or against the
interest of either LESSOR or LESSEE herein. If any such lien is filed or
recorded, LESSEE shall immediately cause such lien to be discharged of record.

22. NON-LIABILITY OF LESSOR  Except where caused by LESSOR'S negligence or
willful misconduct. LESSOR shall not be liable for any damage or loss for
failure to furnish heat, electricity, water, gas, air conditioning service by
reason of breakdowns, the necessity for repairs or improvements to said
services, fire, explosion, strikes, or any cause beyond LESSOR'S control (nor
shall any such failure be deemed an eviction of the LESSEE or relieve the LESSEE
from any of the LESSEE'S obligations hereunder), and LESSOR shall not be liable
for personal injuries, death, or any damage from any cause about the Demised
Premises or the Building and without limiting the generality of the foregoing,
any personal injuries, death or damage resulting from the use or escape of gas,
water, steam, electricity, air conditioning, acts or neglect of co-tenants, or
other agency, or due to file, explosion or action of the elements.

Except where caused by LESSOR'S negligence or willful misconduct, LESSOR shall
not be liable to LESSEE, and LESSEE hereby waives all claims against LESSOR, for
any injury or damage to any person or property in or about the Demised Premises
resulting from the Building, Building or Demised Premises, or any part thereof
or any equipment thereof becoming out of repair: flooding of basements or other
areas; damages caused by sprinkling devices, air conditioning apparatus, snow,
frost, water leakage, steam, excessive heat or cold, falling plaster, broken
glass, sewage, gas, odors or noise or the busting or leaking of pipes or
plumbing fixtures; any act or neglect of other tenants or occupants or employees
in the Demised Premises, or any other thing or circumstance whatsoever, whether
of a like nature or of a wholly different nature. All property in or about the
Building or in the Demised Premises belonging to LESSEE, its agents, employees
or invitees shall be there at the risk of LESSEE or other person only, and
LESSOR shall not be liable for damage thereto or theft, misappropriation or loss
thereof except where caused by LESSOR'S negligence or willful misconduct. If
LESSOR shall fail to perform any covenant or condition of this Lease upon
LESSOR'S part to be performed and, as a consequence of such default, LESSEE
shall recover a money judgment against LESSOR such judgment shall be satisfied
only out of the proceeds of sale received upon execution of such judgment and
levy thereon against the right, title and interest of LESSOR in the Demised
Premises and out of rents or other income from such property receivable by
LESSOR and LESSOR shall not be personally liable for any deficiency.

23. INSURANCE  LESSEE shall maintain and provide a comprehensive general
liability insurance policy of not less than One Million Dollars ($1,000,000.00)
including property damage coverage, with respect to personal injury or death,
and property damage in any one accident. Such insurance shall be with an
insurance company which is authorized to transact business in the State of
Wisconsin and shall name LESSOR as an additional insured; said insurance policy
shall provide that the terms thereof may not be modified, amended or canceled
without thirty (30) days' prior written notice to LESSOR. LESSEE shall provide
LESSOR with a copy of said insurance policy on or before the date of execution
hereof and a certificate from the insurance company evidencing renewal thereof
within fifteen (15) business days after each renewal date of said policy. LESSOR
shall be responsible for the payment to LESSEE of LESSOR'S pro rata share of the
comprehensive liability insurance premiums which shall be

                                       7

<PAGE>

equal to 33% of such premiums. Such percentage is based on the percentage of
square footage that the LESSEE does not occupy of the Total Rentable Space.

LESSEE shall maintain fire insurance, with extended coverage, vandalism and
malicious mischief and theft and mysterious disappearance endorsements, without
deductible or coinsurance, covering the contents of the Demised Premises and all
LESSEE'S trade fixtures, alterations, additions, and lease hold improvements
made by or for LESSEE in the amount of their full replacement value, and such
other insurance as may be reasonably required from time to time by LESSOR or any
mortgagee of the Demised Premises. All of such insurance policies shall be
written by an insurance company or companies satisfactory to LESSOR, shall cover
LESSOR, LESSOR'S mortgagee said LESSEE, as their interests may appear, and all
insurers thereon shall agree not to cancel or change the same without at least
thirty (30) days prior written notice to LESSOR. A certificate of LESSEE'S
insurers evidencing such insurance shall be furnished to LESSOR prior to the
Commencement Date and at least thirty (30) days prior to the renewal date and at
such other times as may be reasonably requested by LESSOR.

24. WAIVER OF SUBROGATION  Each party hereby expressly releases the other for
liability it may have on account of any loss to the Demised Premises or Building
or contents of either due to fire or any peril included in the coverage of any
applicable fire and extended coverage and material damage insurance, however
caused, including such losses that may be due to the negligence of the other
party, its agents or employees, but only to the extent of any amount recovered
by reason of such insurance, and each party hereby waives any right of
subrogation which might otherwise exist in or accrue to such party on account
thereof, provided that such release of liability and waiver of the right of
subrogation shall not be operative in any case where the effect thereof is to
invalidate such insurance coverage under applicable state law (or increase the
cost thereof, unless the other party reimburses the insured for any cost
increase). If LESSEE fails to maintain in force any insurance required by this
Lease to be carved by it, then for purposes of this waiver of subrogation it
shall be deemed to have been fully insured and to have recovered the entire
amount of its loss.

25. ENVIRONMENTAL REQUIREMENTS  LESSEE shall comply with all applicable federal,
state and local environmental laws, ordinances and all amendments thereto and
rules and regulations implementing the same, together with all common law
requirements, which relate to discharge, emissions, waste, nuisance, pollution
control, hazardous substances and other environmental matters as the same shall
be in existence during the Lease Term. All of the foregoing laws, regulations
and requirements are hereinafter referred to as "Environmental Laws". LESSEE
shall obtain all environmental licenses, permits, approvals, authorizations,
exemptions, certificates and registrations (hereinafter collectively referred to
as "Permits") and make all applicable filings required of LESSEE under the
Environmental Laws required by LESSEE to operate at the Demised Premises. The
Permits and required filings shall be made available for inspection and copying
by LESSOR at LESSEE'S offices upon reasonable notice and during business hours.
LESSEE shall not cause or permit any flammable explosive, oil, contaminant,
radioactive material, hazardous waste or material, toxic waste or material or
any similar substance which is or may become regulated under any applicable
federal, state or local law (hereinafter collectively referred to as "Hazardous
Substances") to be brought upon, kept or used in or about the Demised Premises
except for small quantities or such substances as is necessary in the ordinary
course of LESSEE'S business provided that LESSEE shall handle,

                                       8

<PAGE>

store, use and dispose of any such Hazardous Substance in compliance with all
applicable laws and the highest standards prevailing in the industry for the
storage and use of such substances or materials, in a manner which is safe and
does not contaminate the Demised Premises, and LESSEE shall give LESSOR written
notice of the identity of such substances. If any lender or governmental agency
shall ever require testing to ascertain whether or not there has been any
release of any Hazardous Substance brought onto the Demised Premises by LESSEE,
then the reasonable costs thereof shall be reimbursed by LESSEE to LESSOR upon
demand as additional rent. In addition, LESSEE shall execute affidavits,
representations and the like from time to time at LESSOR'S request concerning
LESSEE'S best knowledge and belief regarding the presence of Hazardous
Substances on the Demised Premises. LESSEE hereby agrees to indemnify and hold
LESSOR harmless from any liability, claim or injury, including handling,
storage, disposal or release of any Hazardous Substances by LESSEE of hazardous
materials brought onto the Demised Premises by LESSEE, its agents and employees
on, under or about the Demised Premises, including, without limitation, the cost
of any required or necessary repair, cleanup, remediation or detoxification, or
arising from an actual or alleged violation of Environmental Laws in connection
with the occupancy of the Demised Premises by LESSEE or any occupant of the
Demised Premises or the operation of LESSEE'S business on the Demised Premises
during the Lease Term solely as it relates to hazardous materials brought onto
the Demised Premises by LESSEE. LESSOR hereby agrees to indemnify, and hold
LESSEE harmless from any liability, claim or injury, including handling,
storage, disposal or release of any Hazardous Substances by LESSOR of hazardous
materials brought onto the Demised Premises by LESSOR, its agents and employees
on, under or about the Demised Premises, including, without limitation, the cost
of any required or necessary repair, cleanup, remediation or detoxification, or
arising from an actual or alleged violation of Environmental Laws in connection
with the occupancy of the Demised Premises by LESSOR or any occupant of the
Demised Premises or the operation of LESSOR'S business on the Demised Premises
during the Lease Term solely as it relates to hazardous materials brought onto
the Demised Premises by LESSOR The foregoing covenants and indemnification shall
survive the expiration of the Term of this Lease.

26. SERVICE OF NOTICES  All notices or demands by LESSOR or LESSEE to or upon
each other shall be in writing, signed and served personally or mailed by
registered or certified United States mail, return receipt requested, postage
prepaid, and if intended for LESSOR shall be addressed to: FFI2. LLC. c/o
Richard E. Schmitt and David S. Gronik, 10111 North Range Line, Mequon, WI
53092, and if intended for the LESSEE shall be addressed to LESSEE at 1241 East
Hillsdale Blvd., Foster City, CA 94404.

Either party may change the place to which notices to it shall be directed, but
LESSEE shall always designate a location in Ozaukee County. Any notice, demand
or legal process so given shall be deemed to meet all legal requirements with
respect to service. Notices or demands given by mail as aforesaid shall be
deemed received on the second next business day following mailing. If there is
more than one LESSEE, or if there are any guarantors to this Lease, a notice
duly given to any of them shall be deemed duly given to all. Notwithstanding the
foregoing, any notice to be given to LESSEE prior to the commencement of this
Lease shall be given to it at 600 North Broadway, Milwaukee, Wisconsin, 53202.

                                       9

<PAGE>

27. DEFACEMENT OF WALLS AND WOODWORK  LESSEE hereby agrees that no spikes,
hooks, nails, screws or tacks will be driven into woodwork of the Demised
Premises, and nothing will be attached to the woodwork of the Demised Premises,
except by consent of the LESSOR and such consent shall not be unreasonably
withheld or delayed.

28. REMOVAL OF FURNITURE AND FIXTURES  LESSEE hereby agrees that any and all
furniture, fixtures and goods will be removed whenever such removal is requested
by the LESSOR for purposes of repair. If repair is caused by LESSOR'S negligence
or willful misconduct, LESSOR will pay for such removal.

29. LOCKS AND KEYS  LESSOR shall have the right to keep passkeys to the Demised
Premises, and to use the same to enter such Demised Premises immediately in any
emergency for inspection and repairs. No additional locks shall be placed on any
doors of the Demised Premises without the consent of the LESSOR. LESSEE shall
return keys to LESSOR when vacating.

30. WAIVER BY LESSOR  No extension of time, forbearance, neglect or waiver by
LESSOR or LESSEE with respect to any one or more of the covenants, terms or
conditions of this Lease to be performed by LESSOR or LESSEE shall be considered
a waiver or shall act to stop the LESSOR or LESSEE from enforcing any subsequent
breach or default of LESSOR or LESSEE.

31. EXECUTION OF INSTRUMENTS  Each party hereto agrees, when reasonably called
upon to do so, to execute and deliver such instruments as may be required by the
other party to effectuate or reflect the provisions of this Lease, for
mortgaging, leasing, insurance or other purposes, including but not limited to
statements and certifications with respect to the default or nondefault of the
other party hereto.

32. RIGHT TO SHOW DEMISED PREMISES  The LESSOR shall have the right to enter the
Demised Premises during the last three (3) months of the Lease Terms, and any
renewals thereof, at all reasonable times to show the same to prospective
tenants.

33. CHOICE OF LAW/SEVERABILITY OF PROVISIONS  The laws of the State of Wisconsin
shall govern the validity, performance, and enforcement of this Lease. The
parties hereby consent to jurisdiction of the courts sitting in the county where
the Demised Premises are located. It is agreed that in the event any of the
terms or provisions contained herein shall be declared to be invalid or
unenforceable by a court of competent jurisdiction, the remaining provisions and
conditions of this Lease, or the application of such to persons or circumstances
other than those to which it is declared invalid or unenforceable, shall not be
affected thereby, and shall remain in full force and effect and shall be valid
and enforceable to the fullest extent permitted by law.

34. CAPTIONS  The captions in this Lease are inserted only as matters of
convenience and for reference, and in no way define nor limit the scope or
intent of the various provisions, terms, or conditions hereof.

35. TRANSFER BY LESSOR  In the event of a sale or conveyance by LESSOR of the
Building, the same shall operate to release LESSOR from any future liability
upon any of the

                                       10

<PAGE>

covenants or conditions herein contained, and in such event LESSEE agrees to
look solely to the successor in interest of LESSOR in and to this Lease if the
transferee assumes such obligation in a writing that is reasonably satisfactory
to the LESSEE. This Lease shall not be affected by any such sale or conveyance,
and LESSEE agrees to attorn to the purchaser or grantee, which shall be
obligated on this Lease only so long as it is the owner of LESSOR'S interest in
and to this Lease.

36. BINDING EFFECT  The terms and conditions of this Lease shall be binding upon
and inure to the benefit of the parties hereto, and their respective successors
and assigns. LESSOR shall be relieved of all responsibilities hereunder (with
respect to matters thereafter occurring) upon its sale and conveyance of the
Demised Premises or the Total Rentable Space and upon notification thereof to
LESSEE.

37. LESSOR'S LIABILITY  If LESSOR shall fail to perform any covenant, term or
condition of this Lease upon LESSOR'S part to be performed, and if as a
consequence of such default. LESSEE shall recover a money judgment against
LESSOR, such judgment shall be satisfied only out of the proceeds of sale
received upon execution of such judgment and levied thereon against the right,
title and interest of LESSOR in the Building and out of rents or other income
from the Building receivable by LESSOR, or out of consideration received by
LESSOR from the sale or other disposition of all or any part of LESSOR'S right,
title and interest in the Building, and LESSOR shall not be liable for any
deficiency.

38. ENTIRE AGREEMENT  This writing constitutes the entire agreement between the
parties hereto, and may not be amended or altered in any manner except in
writing signed by both parties.

IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed in
duplicate the day and year first above written.

In the Presence of:                LESSOR: FFI2, LLC

  /s/ David S Gronik, Jr           By:   /s/ Richard E. Schmitt       3/3/2000
--------------------------             -------------------------    ------------
                                       Richard E. Schmitt           Date

                                   Its: ________________________

In the Presence of:                LESSEE: DOVEBID VALUATION SERVICES,
                                   INC.

  /s/ [ILLEGIBLE]                  By:  /s/ Anthony Capobianco        3/2/00
--------------------------             -------------------------    ------------
                                        ___________                 Date

                                   Its: VP and General Counsel
                                       -------------------------

                                       11

<PAGE>

                                    Exhibit A
                              LEGAL DESCRIPTION OF
                                DEMISED PREMISES

                                       12

<PAGE>

                                    EXHIBIT B
                    LEGAL DESCRIPTION OF TOTAL RENTABLE SPACE

     Unit 605, together with the undivided interest in the Common elements
appurtenant to said unit, in Village Green Condominium, a condominium created
and existing under the Condominium Ownership Act of the State of Wisconsin by
Declaration recorded in the office of the Register of Deeds for Ozaukee County,
Wisconsin on June 6, 1980, in Volume 450 of Records, Pages 417-431, as Document
No. 319415; as amended by Document Nos. 339922, 364831, 364836, 373872 and
373873. The post office address of said Unit is 10218 North Port Washington
Road, Mequon, Wisconsin.

                                       13

<PAGE>

                         FIRST ADDENDUM TO OFFICE LEASE

                                 BY AND BETWEEN

                           FFI2, LLC AND DOVEBID, INC.

     THIS FIRST ADDENDUM TO OFFICE LEASE ("Addendum") is made as of this 16th
day of January 2001, by FFI2, LLC, a Wisconsin limited liability company
("Lessor") and DoveBid, Inc., a Delaware corporation ("Lessee") with respect to
that certain Office Lease between Lessor and Lessee dated March 2, 2000 (the
"Lease"). Capitalized terms used but and not otherwise defined herein shall have
the meanings given to them in the Lease.

     For good and lawful consideration, the receipt and adequacy of which are
hereby acknowledged, Lessor and Lessee agree as follows:

     1.   Premises. The Premises shall be expanded to include the Total Rentable
Space of the Building described in Exhibit B attached to the Lease, which
expansion space consists of 5,068 additional square feet of office space located
in the Building (the "Expansion Space"). The base rental applicable to the
Expansion Space shall be the same rate of base rental as the Demised Premises in
the Lease. As such, the new, total monthly rental for the Demised Premises and
the Expansion Space shall be $17,822.50. Further, the last sentence of Section 1
of the Lease shall be replaced with the following: "The Demised Premises are a
part of the real property legally described on Exhibit B attached hereto and
incorporated by reference and containing a total of fourteen thousand two
hundred fifty-eight (14,258) square feet (the "Total Rentable Space")."

     2.   Term. Lessee's lease of the Expansion Space shall run contemporaneous
with the Lease, and shall terminate on February 28, 2003, unless otherwise
extended by option or sooner terminated in accordance with the Lease.

     3.   Taxes. Section 5 of the Lease shall be amended to state that Lessee
shall be responsible for 100% of real estate taxes on the property.

     4.   Utilities and Services. Section 6 of the Lease shall be amended to
state that Lessee shall be responsible for 100% of monthly utility bills on the
property.

     5.   Insurance. Section 23 of the Lease shall be amended to state that
Lessee shall maintain and provide the required general liability insurance at
Lessee's sole cost.

     6.   Parking. Section 19 of the Lease shall be amended to state that Lessee
and its employees, customers and invitees shall have the exclusive right to use
any and all parking spaces located within the Building's parking areas without
interference from Lessor, except that Lessee shall not permit vehicles to be
abandoned or stored in the Building's parking areas, and subject to the Village
Green Condominium Association's Covenants, Conditions and Restrictions,
Amendment No. 5.

<PAGE>

     7.   Counterparts. This Addendum may be executed in any number of
counterparts, each of which, when executed, will be deemed to be an original and
all of which, when taken together, will be deemed to be but one and the same
instrument.

     8.   Effect of Addendum. All of the terms and conditions of the Lease shall
continue in full force and effect except as specifically modified by the terms
of this Addendum. In the event of any inconsistency between the terms of this
Addendum and the Lease, the terms of this Addendum shall control and govern.

     9.   Governing Law. This Addendum shall be governed by and construed in
accordance with the laws of the State of Wisconsin.

     IN WITNESS WHEREOF, the parties have executed this Addendum as of January
16, 2001.

     FFI2, LLC                                          DOVEBID, INC.

By: ______________________________          By: ____________________________

Name: ____________________________          Name: __________________________

Title: ___________________________          Title: _________________________

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