Document:

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                                                                   Exhibit 10.21

                       International Services Agreement

THIS INTERNATIONAL SERVICES AGREEMENT (the "Agreement") is entered into as of
April 7th, 2000 (the "Effective Date") between iAsiaWorks Corporation
("iAsiaWorks"), a California corporation with its principal offices at 2000
Alameda de las Pulgas, Ste. 125, San Mateo, California 94403, and Digital Island
("Client"), a Delaware corporation with its principal offices at 45 Fremont St.
Suite 1200, San Francisco, California 94105.

WHEREAS, Digital Island desires to transmit Internet traffic over iAsiaWorks'
telecommunications network in Asia, the Philippines and New Zealand (the
"Territory") and obtain the benefit of iAsiaWorks' related maintenance and other
services and iAsiaWorks desires to service Digital Island's traffic;

IT IS AGREED, in consideration of the covenants set forth below, as follows:

1.     iAsiaWorks' Services.

iAsiaWorks will provide to Client Internet Protocol ("IP")-capable services as
described in Attachment I, including its Exhibit A, attached hereto and
             ------------                ---------
incorporated herein by this reference (collectively, the "Services") to transmit
Client's Internet traffic over iAsiaWorks' backbone network (the "Network")
and/or other networks in the Territory with which iAsiaWorks maintains direct
connections from time to time. If necessary, the Network will support Client's
use of Border Gate Protocol routing to reach the Network.

2.     Clients' Obligations. iAsiaWorks' performance hereunder is conditioned
upon Client's performance of or compliance with the following:

2.1  Client shall provide Domain Name Server ("DNS") registrations and all DNS
name service functions for itself and its customers. Client shall give
iAsiaWorks reasonable prior written notice of (i) Client's need for additional
IP network numbers or (ii) changes in existing routing information.

2.2  At Client's sole expense, Client will connect its own computer hardware and
other telecommunications equipment (collectively, the "Equipment") directly to
the Network and, as between the parties hereto, shall be fully and solely
responsible for the Equipment and any damage thereto and the installation and
maintenance of full connectivity between the Equipment and the Network,
including the addition from time to time of any and all Equipment required to
support the then-current volume of Client's Internet traffic over the Network.
At Client's request, iAsiaWorks will assist Client in the maintenance and repair
of its Equipment for fees to be mutually agreed or as otherwise set forth in
Exhibit A to Attachment I; provided that iAsiaWorks will not be liable to Client
---------    ------------
for any damage to the Equipment other than to the extent arising out of
iAsiaWorks gross negligence or misconduct.

2.3  The Client may only use the Services and/or access the Network for the
purposes expressly identified herein. Any other use or access is expressly
prohibited, including but not limited to any unlawful or illegal use by Client
in any jurisdiction where a transmission commences, transits or is terminated or
any other jurisdiction asserting control over any such transmission, a breach by
Client of any copyright, privacy, libel or obscenity laws, email spamming and/or
bulk transmission of messages to Internet users, service providers and/or
newsgroups, and unsolicited e-mail.

2.4  Client is wholly responsible for insuring the safety and security of the
Equipment and its connection to the Network and must restrict access thereto and
otherwise safeguard the operation thereof with the same degree of care which
employs to protect its own network. At a minimum, Client must promptly notify
iAsiaWorks in writing of any breach of security involving the Equipment,
Client's own network and/or the connection to the Network.

     2.4.1  The Client will be liable for, and will indemnify and defend
iAsiaWorks against, any claims arising out or related to any demonstrable breach
of security on the Network resulting from the acts or omissions of Client or its
employees, agents and/or users and other customers.

2.5  Client is wholly responsible for obtaining a complete copy of adhering to
and fully complying with the People's Republic of China's ("PRC") "Appropriate
Use" policies with respect to Internet transmissions and content filtering,
including policies concerning the filtering and exclusion of pornography, anti-
government content and

[*]-Certain Information in this exhibit has been omitted and filed separately
with the commission.  Confidential treatment has been requested with respect to
the omitted portions.

                                                                               1
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encrypted content. Client will be liable for, and will indemnify and defend
iAsiaWorks against, any claims arising out of or related to Client's failure to
fulfill its obligations hereunder, including any claims made or actions
instituted by the PRC to the extent such claims result from the actions of
Client or its employees, agents and/or users and other customers.

3.     Term of the Agreement.

This Agreement will commence as of the Effective Date and run for 12 full
calendar months thereafter (the "Initial Term") unless terminated as set forth
below. Upon expiration of the Initial Term, the Agreement will automatically
renew for successive 12-month periods until terminated (the Initial Term and all
renewal terms, collectively, the "Term").

Client may cancel the Services and terminate this Agreement on 30 days' prior
written notice to iAsiaWorks; provided that, on any cancellation more than 30
days prior to the end of the Initial Term, Client will pay iAsiaWorks an amount
equal to 50% of the Monthly Fees which would have been due for the remainder of
the Initial Term (the "Termination Payment"). Following the Initial Term, Client
may terminate this Agreement on 30 days' prior written notice with any
obligation to remit the Termination Payment.

iAsiaWorks may cancel the Services and terminate the Agreement on 90 days' prior
written notice to Client and, on such a termination, will refund to Client
prorated payments and deposits returned to iAsiaWorks by any third party, if
any. In addition, on one party's material breach of this Agreement, the other
party may terminate this Agreement on 30 days' written notice unless the
defaulting party cures such breach within that 30-day period. If Client
terminates this Agreement on iAsiaWorks uncured material breach, Client will not
be obligated to remit the Termination Payment.

       On any termination of this Agreement, Client shall pay iAsiaWorks all
Service Fees and other amounts due and owing as of the termination date. The
following provisions will survive termination, cancellation or expiration of
this Agreement: 2.3, 2.4, 2.4.1, 4.5, 6.2 through 6.5 and 7 through 9.

4.     Disclaimer of Warranty; Limitation of Liability; Indemnity.
4.1  iASIAWORKS MAKES NO WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED,
ORAL OR WRITTEN, WITH RESPECT TO THE NETWORK, THE OPERATION OR MAINTENANCE
THEREOF OR THE SERVICES PROVIDED HEREUNDER AT ANY TIME AND FROM TIME TO TIME,
iASIAWORKS DISCLAIMS (1) ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, (2) ANY WARRANTY THAT THE NETWORK OR iASIAWORKS' EQUIPMENT
OR SOFTWARE THEREON IS ERROR-FREE, WILL OPERATE WITHOUT INTERRUPTION OR IS
COMPATIBLE WITH ALL OTHER NETWORKS OR EQUIPMENT AND SOFTWARE CONFIGURATIONS, AND
(3) ANY WARRANTY THAT THE NETWORK WILL OPERATE WITHOUT INTERRUPTION.

       4.1.1  iASIAWORKS WILL NOT BE RESPONSIBLE OR LIABLE FOR ANY INDIRECT,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, (1)
THE LOSS OF PROFITS OR REVENUE (2) THE LOSS OF DATA OR INFORMATION, (3) THE COST
OF PROCUREMENT OF SUBSTITUTE SERVICES , AND (4) COSTS OR DAMAGES RESULTING FROM
DELAY, NON-DELIVERIES, MISDELIVERIES, SERVICE INTERRUPTIONS OR OTHER LOSS OF
ACCESS TO OR USE OF THE NETWORK, INCURRED BY EITHER PARTY OR ANY THIRD PARTY IN
CONNECTION WITH THIS AGREEMENT AND CLIENT'S USE OF AND ACCESS TO THE NETWORK,
WHETHER IN AN ACTION IN CONTRACT, TORT, BASED ON A WARRANTY OR OTHERWISE, EVEN
IF THE OTHER PARTY OR ANY OTHER PERSON HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES. IN NO EVENT SHALL iASIAWORKS' LIABILITY HEREUNDER EXCEED THE
AGGREGATE FEES PAID BY CLIENT HEREUNDER IN THE CALENDAR QUARTER IMMEDIATELY
PRECEDING THE DATE OF ANY CLAIM MADE BY CLIENT HEREUNDER.

       4.1.2  THE USE OF ANY INFORMATION OBTAINED VIA iASIAWORKS' NETWORK OR
SERVICES IS AND WILL BE AT THE SOLE RISK OF CLIENT AND ITS USERS AND OTHER
CUSTOMERS. CLIENT EXPRESSLY ACKNOWLEDGES AND AGREES THAT (I) IASIAWORKS

                                                                               2
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EXERCISES NO CONTROL WHATSOEVER OVER THE CONTENT, NATURE OR SCOPE OF THE
INFORMATION PASSING OVER ITS NETWORK AND (II) IASIAWORKS WILL NOT BE RESPONSIBLE
IN ANY WAY FOR THE ACCURACY, COMPLETENESS OR QUALITY OF INFORMATION OBTAINED
OVER THE NETWORK OR OTHERWISE THROUGH ITS SERVICES. CLIENT SHALL INDEMNIFY AND
DEFEND IASIANETWORKS AGAINST ANY CLAIMS BROUGHT AGAINST IASIAWORKS BY ANY OF
CLIENT'S USERS OR CUSTOMERS WITH RESPECT TO ANY INFORMATION OBTAINED OVER THE
NETWORK OR THROUGH THE SERVICES.

4.2  In addition to, and without limitation of, the indemnities set forth in
Sections 2.4.1, 2.5, 4.1.2 and 6.4.2 above, Client will indemnify, defend and
hold iAsiaWorks harmless from and against any and all claims, losses,
liabilities and actions to the extent arising out of (i) the Client's breach of
this Agreement, (ii) Client's business operations, including the provision of
Internet services to its own users and customers and the operation of a
telecommunications network, and (iii) any unlawful or illegal use of the Network
or related Services by Client's users or customers.

4.3  iAsiaWorks will defend, indemnify and hold Client and its directors,
officers, employees, agents and subcontractors harmless from and against any and
all third party suits, actions and proceedings, claims, liabilities, losses,
expenses (including reasonable attorney's fees), damages and costs (collectively
referred to herein as "Claims") arising out of: (a) any negligent or intentional
act of iAsiaWorks or its directors, officers, employees, agents or
subcontractors or (b) any breach by iAsiaWorks' of Section 8 below except to the
extent that (i) Client is obligated to indemnify iAsiaWorks from and against any
such Claim hereunder and/or (ii) such Claim arises out of Client's negligent or
intentional acts or omissions.

5.     Scheduled Interruptions in Service.
Although, as clearly set forth in Section 4 above, iAsiaWorks provides Client
with Services and use of and access to the Network on an "as is" basis without
warranty of any kind, iAsiaWorks will use reasonable commercial efforts to
maintain the Network in a manner that minimizes errors and interruptions in the
course of providing the Services. Client acknowledges that, in the ordinary
course of business, the Network or related Services may be temporarily
unavailable due to scheduled maintenance, either by iAsiaWorks or by a third
party provider or for any other reason. However, iAsiaWorks will use reasonable
commercial efforts to provide seven days prior written notice of any scheduled
Network or Services disruption. Should such a disruption arise out of the
failure of any equipment or services wholly or majority owned and operated by
iAsiaWorks and continue for more than 24 hours, Client may immediately terminate
this Agreement without any Termination Payment; provided that Client will remit
payment to iAsiaWorks for Services rendered through the termination date and
further provided that, on such a termination, iAsiaWorks will refund to Client
prorated payments and deposits returned to iAsiaWorks by any third party, if
any.

6.     Payments; Taxes.
6.1  iAsiaWorks shall assist Client in the connection of the Equipment to the
Network at the sites listed in Attachment I. Excluding amounts previously
                               ------------
remitted by Client to iAsiaWorks hereunder, applicable per-installation charges
will be payable upon completion of each installation. iAsiaWorks will invoice
Client for such charges within three business days after the completion of each
installation hereunder with payment due net 30 days thereafter.

6.2  Monthly Service fees (the "Service Fees") will be invoiced in advance on
the first of each month in which Services will be rendered, commencing in the
first month after an iAsiaWorks hub and functioning circuit have been connected
to the Equipment and are operational. If Client fails to notify iAsiaWorks
within three business days after installation that the connection is non-
operational, iAsiaWorks may commence invoicing for its Service Fees. The first
month of operation will be billed in arrears on a pro rata basis with the
                                                  --------
Service Fees therefor included in iAsiaWorks' invoice for the Service Fees for
the next month.

6.3  Payment of all Service Fees and, except as set forth above, other amounts,
if any, due hereunder, is due in U.S. dollars net 30 days after date of invoice,
payable via wire transfer or other mutually agreed upon method in accordance
with instructions provided by iAsiaWorks. iAsiaWorks may charge a late fee equal
to the lesser of 12% per annum or the maximum interest rate permitted by law on
undisputed amounts not paid when due for as long as such amount remains unpaid.
However, if Client disputes any invoiced amount in good faith, it must submit to
iAsiaWorks, within 45 days following the date of invoice (the "Challenge
Period"), full payment of the undisputed

                                                                               3
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portion of the invoice and written documentation identifying and substantiating
the disputed amount. Any amount not disputed in writing within the Challenge
Period will be deemed accepted for payment in full by Client.

6.4  Notwithstanding anything set forth above or in Attachment 1, Client
                                                    ------------
acknowledges and agrees that China Telecom or any successor entity and any third
party in the PRC or any successor entity (the "Third Party") through which
iAsiaWorks obtains access to telecommunications circuits in the People's
Republic of China ("PRC") require monthly deposits against future service.
Accordingly, within 10 business days of the Effective Date, Client will remit
the amount set forth in Attachment I (the "PRC Funds") in payment of the first
                        ------------
month's Services in the PRC and two separate one-month security deposits in the
amounts set forth therein. iAsiaWorks will promptly remit the PRC Funds to the
Third Party for disbursement as appropriate to China Telecom.*

     6.4.1  At such time as Client elects to terminate the services provided by
China Telecom for any reason Client will promptly notify iAsiaWorks in writing
and iAsiaWorks will take the actions necessary to terminate such services.
Following termination of the services, assuming that Client is current in the
payment of all Service Fees and in compliance with all rules and regulations
imposed by China Telecom, the Third Party or any other successor or replacement
entity, iAsiaWorks will refund to Client all PRC Funds, including any prorated
payments and deposits, returned to iAsiaWorks, if any, or, at Client's option,
apply those Funds to future Service Fees.

     6.4.2  Client acknowledges and agrees that, with respect to the payment of
the PRC Funds and the arranging for telecommunications services to be provided
in the PRC, iAsiaWorks is acting solely as Client's agent and will bear no
liability or responsibility for the PRC Funds (other than on iAsiaWorks'
misappropriation thereof), China Telecom's provision of telecommunications
services and circuits in the PRC, the repayment of each of the two separate
security deposits by the PRC and the Third Party, respectively, or any other
related matter. Client will indemnify and defend iAsiaWorks against any claims
arising out iAsiaWorks' acts or omissions on Client's behalf under this Section
6.4 and acknowledges that it is fully liable therefor.

6.5  All Service Fees and other amounts quoted to the Client herein are
exclusive of any federal, state, municipal or other governmental taxes, duties,
fees, tariffs or withholding obligations now or hereafter imposed on Client's
use of the Network and related Services. Such taxes, if any, other than taxes
assessed against iAsiaWorks' net income, will be invoiced separately by
iAsiaWorks and paid by Client or Client shall provide iAsiaWorks and/or the
appropriate authority with proof of exemption. If, in any international
jurisdiction, taxes must be withheld on any amounts to be paid by Client to
iAsiaWorks, the Client shall promptly notify iAsiaWorks, and, unless instructed
otherwise by iAsiaWorks, may deduct such taxes from the amount due and remit the
taxes to the appropriate authority.

7.     Assignment

Neither party may assign this Agreement or any of its rights or obligations
hereunder without the other party's prior written consent other than to an
affiliated entity or upon the merger, acquisition or sale of all or
substantially all the assets of the assigning party; provided that the assigning
party will promptly notify the other party of such an assignment and further
provided that provided that each and every assignee hereunder must agree in
writing to be bound by all the terms and conditions hereof.

8.     Confidential Information; Publicity.

Each party acknowledges that (i) all information relating to the business and
operations of the other party which it learns or has learned during or prior to
the term of this Agreement, including all operation data pertaining to the
Client's use of the access to the Network and the Services, including routing
data and outage information, (ii) the terms and conditions of this Agreement and
(iii) all information disclosed in or arising out of any dispute or arbitration
between the parties, including the outcome thereof, is and will be the valuable,
confidential and proprietary information of the disclosing party. The receiving
party will maintain all confidential information disclosed hereunder by the
disclosing party in confidence and will not disclose such information to any
third party other than those of its employees, contractors, agents or
representatives with a need to know such information; provided that each such
employee or contractor must have executed a confidentiality agreement or be
otherwise bound by the obligations of the receiving party hereunder. The
receiving party will safeguard the confidential information with the same degree
of care which it uses to protect its own confidential information.

                                                                               4
<PAGE>

This Section will not apply to any information which (i) is already lawfully in
the receiving party's possession (unless received pursuant to a nondisclosure
agreement); (ii) is or becomes generally available to the public through no
fault of the receiving party; (iii) is disclosed to the receiving party by a
third party who may transfer or disclose such information without restriction;
(iv) is required to be disclosed by the receiving party as a matter of law or
judicial or governmental order; provided that the receiving party will use all
reasonable efforts to provide the disclosing party with prior notice of such
disclosure so that the disclosing party may seek a protective order therefor;
and (v) is independently developed by the receiving party without any use of
confidential information. Each party acknowledges that any breach of this
Section by a receiving party will irreparably harm the disclosing party and on
any such breach, the disclosing party shall be entitled to promptly seek
injunctive relief in addition to any other remedies which it may have at law or
in equity.

Further to the foregoing, other than Client's right to identify iAsiaWorks to
Client's users and customers as an Internet service provider providing Services,
neither party shall publicize the existence of this Agreement without the other
party's prior written consent except as required by law. All press releases and
related marketing materials and other communications relating to this Agreement
or the Services provided hereunder shall be subject to the reasonable and timely
pre-approval of each party.

9.     General

9.1  Client and iAsiaWorks are entering into this Agreement as independent
parties and nothing herein shall be construed to create a partnership, joint
venture or agency relationship between the parties except as expressly set forth
in Section 6.4 with respect to matters concerning the PRC. Neither party will
have any authority to enter into agreements of any kind on behalf of the other
party or to bind or obligate the other party in any manner to any third party.

9.2  Notices required to be given pursuant to this Agreement shall be effective
when received, and shall be sufficient if given in writing, hand-delivered, sent
by telefax with confirmation of receipt, sent by First Class Mail, return
receipt requested (for all types of correspondence), postage prepaid, or sent by
overnight courier service and addressed as first set forth above.

9.3  This Agreement and the rights of the parties hereunder will be governed by
and interpreted in accordance with the laws of the State of California, without
reference to its conflict of law rules, and applicable federal law. The United
Nations Convention On Contracts For The International Sale Of Goods will not
govern or apply to this Agreement. All disputes arising out of or in connection
with this Agreement will be referred to and finally resolved by binding
arbitration in accordance with the rules of the International Chamber of
Commerce consistent with California and federal law. The arbitration proceedings
will be conducted in San Francisco, California in English before a three-person
panel knowledgeable about telecommunications, consisting of one arbitrator
selected by Client, one selected by iAsiaWorks and one arbitrator selected by
the other two arbitrators. The arbitrator may award any legal or equitable
remedy and may, in his discretion, require one party to pay the costs of the
arbitration as well as the fees and expenses, including reasonable attorneys'
fees, of the other party. In the absence of any such ruling, each party shall
bear its own costs in connection with an arbitration proceeding hereunder and
the parties shall share the costs of the arbitration equally.

9.4  Neither party shall be in default hereunder if its failure to perform any
of its obligations, excluding all payment obligations, is caused solely by
supervening conditions beyond that party's control, including acts of God, civil
commotion, strikes, labor disputes, third party telecommunications network
problems or down-time and governmental demands or requirements.

9.5  This Agreement including Attachment 1, (i) embodies the final, complete and
exclusive understanding between the parties, (ii) replaces and supercedes all
previous oral or written agreements, understandings or arrangements between the
parties, (iii) may be signed in counterparts, each of which shall be an original
and all of which shall constitute one and the same document and (d) may only be
amended in a writing signed by an authorized officer of each party hereto. The
failure of either party to enforce the provisions of this Agreement shall not be

                                                                               5
<PAGE>

deemed a waiver of such provisions or of the right of such party thereafter to
enforce such provisions or any other provisions hereof. If any provision of this
Agreement is held invalid or unenforceable by a court of competent jurisdiction,
the remaining provisions will remain in full force and effect and the parties
shall negotiate in good faith a substitute a valid and enforceable provision
which most nearly effects the parties' intent in entering into this Agreement

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the
Effective Date.

IASIAWORKS CORPORATION              DIGITAL ISLAND, INC.

/s/ Jonathan Beizer                 /s/ J.W. Bendrick
___________________________         ------------------------------
Signature                           Signature

Jonathan Beizer                     J.W. Bendrick
___________________________         ------------------------------
Name                                Name

CFO                                 Director of Carrier Relations
___________________________         ------------------------------
Title                               Title

4/7/00                              4/7/00
___________________________         ------------------------------
Date                                Date

                                                                               6
<PAGE>
                                ATTACHMENT I

                      INTERNATIONAL COLOCATION SERVICES
                      ---------------------------------
    (All pricing set forth herein is based upon the continuation of the
                  Agreement for at least the Initial Term.)

One-Time Rack Installation Charges
----------------------------------
* per rack

Montly Recurring Charges - Rack and Bandwidth
---------------------------------------------

Location                        Item                    Monthly Charges
--------                        ----                    ---------------
   *                              *                            *

                                  *                            *

   *                              *                            *

   *                              *                            *

Client Initials _____________

Charges for * Circuits
-----------------------
  *

     Item                       Monthly Charge                One Time Charge
     ----                       --------------                ---------------
International circuit                 *                             *
Local loop                            *                             *
Equipment (Optional)                  *                             *
Application fee                       *                             *
Data Center fee                       *                             *
Cross Connect                         *                             *
--------------------------------------------------------------------------------
Total Charge                          *                             *
Total Charge for 3 Circuits           *                             *

       *
     Item                       Monthly Charge                One Time Charge
     ----                       --------------                ---------------
       *                              *                             *
Equipments(*)                         *                             *
Equipments(*)                         *                             *
Application fee(*)                    *                             *
Application fee(*)                    *                             *
Data Center fee                       *                             *
Cross Connect                         *                             *
Total Charge                          *                             *

[*] -- Certain information on this page has been omitted and filed separately
with the commission. Confidential treatment has been requested with respect to
the omitted portions.

<PAGE>

PRC Funds
---------
Deposit: *

The Third Party receiving the deposit will provide a receipt for a deposit in
the amount of one month's prepayment under the ChinaTel contract. The Third
Party will also remit one month's prepayment to ChinaTel and will negotiate
with ChinaTel to apply that prepayment against last month's usage fees.

Deposit Consists of the following:

1.  ChinaTel Prepayment: *
2.  Agent Deposit: *
3.  ChinaTel Deposit: *
4.  Install Charges: *

          Client Initials___________

     Location                        Item                    Monthly Charge
--------------------------------------------------------------------------------
        *                              *                           *

        *                              *                           *

        *                              *                           *

Client Initials_________

Features
--------

[X] 19" Rack
[X] 30 amp power supply
[X] Secure facility w/ battery backup and emergency generator

[*] -- Certain information on this page has been omitted and filed separately
with the commission. Confidential treatment has been requested with respect to
the omitted portions.

<PAGE>

[X]  "Remote Hands" services (as described in Exhibit A hereto, including all
                                              ---------
     separate charges therefor)
[X]  Enclosed cabinet available upon request at cost
[X]  IP Addresses (class C) per country at cost

* Burstable traffic is based on sustained average over committed amounts, as
determined by traffic samples taken every five minutes, seven days per week.
The Client's bandwidth charges are determined by usage level under which 95%
of samples fall during the average month's usage. iAsiaWorks reserves the
right to renegotiate pricing should International traffic surpass 10% of total
traffic.

                                                                               9
<PAGE>

                           EXHIBIT A TO ATTACHMENT 1
                Remote Hands Services Descriptions and Pricing

Basic Remote Hands, provided at no additional cost, involves the most basic
------------------
activities of an on-site technician, performed with "eyes", "ears", and
"fingers", but without involvement of tools, equipment, physical labor, keyboard
or other data input. Examples of RH services include:

 .  Pushing a button
 .  Switching a toggle
 .  Setting a dip switch
 .  Power cycling (turning on and off) the equipment
 .  Securing cabling to connections
 .  Observing, describing, or reporting on indicator lights or display
   information on machines or consoles
 .  Tape swap (pre-labeled, one change per incident)
 .  Circuit testing
 .  Basic observation and reporting on local environment in AUNET premises

Advanced Remote Hands, provided for the fee outlined below, involves all the
above Basic RH services plus some configuration or running of certain basic
                        ----
operations pursuant to specific real-time instructions of Licensee. Examples of
Advanced RH services include:

 .  Running single, built in diagnostic equipment
 .  Typing commands on a keyboard console
 .  Changing of pre-labeled tapes
 .  Cable organization, ties, or labeling
 .  Modifying basic cable layout, such as Ethernet or FDDI connections
 .  Re-labeling equipment
 .  Installation of previously received equipment in existing track space
 .  Replacing hardware components with spares or upgrades
 .  Adding memory
 .  Upgrading drive capacity by installation of new or additional disk drives

Pricing. Remote Hands services may be purchased on a per hour basis as needed at
-------
the following prices:

         Basic RH Services                       No additional charge
         Advanced RH                             $125/Hour

For Advanced RH Services there is a 1 hour minimum per request, with 15 minute
increments thereafter.<PAGE>

                                                                    EXHIBIT 4.03

                           MICRON ELECTRONICS, INC.
                  AMENDED NONQUALIFIED STOCK OPTION AGREEMENT

     This Stock Option Agreement ("Agreement") is made and entered on April 6,
                                   ---------
2000 to be effective as of the date of grant set forth below (the "Date of
                                                                   -------
Grant") by and between Micron Electronics, Inc., a Minnesota corporation (the
-----
"Company"), and the participant named below ("Participant").  Capitalized terms
 -------                                      -----------
not defined herein shall have the meaning ascribed to them in the Company's 1995
Stock Option Plan (the "Plan").
                        ----

Participant:                       Joel J. Kocher
Social Security Number:            ###-##-####

Address:                           Micron Electronics, Inc.
                                   900 E. Karcher Road
                                   Nampa, Idaho 83687

Total Option Shares:               75,000
Exercise Price Per Share:          $9.0062
Date of Grant:                     January 13, 1998
Vesting Start Date:                See Section 2.1 below
Expiration Date:                   January 13, 2008

     1.   Grant of Option. The Company hereby grants to Participant an option
          ---------------
(the "Option") to purchase the total number of shares of Common Stock, $0.01 par
      ------
value, of the Company set forth above (the "Shares") at the Exercise Price Per
                                            ------
Share set forth above (the "Exercise Price"), subject to all of the terms and
                            --------------
conditions of this Agreement. The Option is intended to be a Nonstatutory Stock
Option.

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

          2.1  Vesting and Exercise Periods of Option.
               --------------------------------------

          Fifty Thousand (50,000) of the Option Shares will vest on April 6,
     2000.

          Twenty Five Thousand (25,000) of the Option Shares will vest at the
end of seven (7) full years of the Participant's Continuous Status as an
Employee or Consultant, subject to the provisions related to option vesting
contained in any Employment and Noncompete Agreement entered into between the
Company and the Participant.  Notwithstanding the vesting described in the
previous sentence, such Option Shares will vest immediately in full if prior to
such seven year period the Company: (i) achieves year over year net revenue
growth for one fiscal quarter in the Core PC Business, and (ii) achieves
positive operating income for the Core PC Business during such fiscal quarter,
in each case as determined by the Company's regularly established accounting
practices.  Provided, however, that in no event shall this Option be exercised
            --------  -------
while any portion of options granted to Participant under the Plan are vested
and exercisable.  The

                                      -1-
<PAGE>

Compensation Committee of the Company may, at any time at its discretion, lower
the financial conditions for accelerated vesting described above.

          The term "Core PC Business" includes the Company's personal computer,
server and related peripheral equipment business, together with any affiliated
businesses, but expressly excludes SpecTek and the Internet Services Business.
The term "Internet Services Business" shall mean Micron PC Web Services, Inc.
and its subsidiaries, currently referred to collectively as HostPro.

          2.2  Expiration. The Option shall expire on the Expiration Date set
               ----------
forth above and must be exercised, if at all, on or before the Expiration Date.

          2.3  Change in Control. In the event of a Change in Control or the
               -----------------
sale of all or substantially all of the Core PC Business, the unexercised
portion of the Option shall become immediately exercisable.

          2.4  Adjustments Upon Changes in Capitalization, Dissolution, Merger
               ---------------------------------------------------------------
or Assets Sale, other than a Change in Control. Subject to Section 2.3 hereof,
----------------------------------------------
the provisions of Sections 11(a), (b) and (c) of the Plan shall apply to this
Option.

     3.   Termination. Upon termination of the Participant's Continuous Status
          -----------
as an Employee or Consultant, the following provisions shall govern the exercise
of this Option in the event the Participant is terminated.

          3.1  Termination for Any Reason Except Death or Disability. If
               -----------------------------------------------------
Participant is terminated for any reason, except death or Disability,
notwithstanding any other provision in this Agreement to the contrary, the
Option, to the extent that it would have been exercisable by Participant on the
date of termination pursuant to this Agreement, may be exercised by Participant
no later than thirty (30) days after the date of termination, but in any event
no later than the Expiration Date.

          3.2  Termination Because of Death or Disability. If Participant is
               ------------------------------------------
terminated because of death or Disability of Participant, notwithstanding any
other provision in this Agreement to the contrary, the Option, to the extent
that it is exercisable by Participant on the date of termination, may be
exercised by Participant (or Participant's legal representative) no later than
twelve (12) months after the date of termination, but in any event no later than
the Expiration Date.

          3.3  No Obligation to Employ. Nothing in this Agreement shall confer
               -----------------------
on Participant any right to continue in the employ of, or other relationship
with, the Company or any Parent or Subsidiary of the Company, or limit in any
way the right of the Company or any Parent or Subsidiary of the Company to
terminate Participant's employment or other relationship at any time, with or
without cause.

                                      -2-
<PAGE>

     4.   Manner of Exercise
          ------------------

          4.1  Stock Option Exercise Agreement.  To exercise this Option,
               -------------------------------
Participant (or in the case of exercise after Participant's death, Participant's
executor, administrator, heir or legatee, as the case may be) must deliver to
the Company an executed stock option exercise notice substantially in the form
approved by the Company (the "Exercise Notice"), which shall set forth, among
                              ---------------
other things, Participant's election to exercise the Option and the number of
Shares being purchased. If someone other than Participant exercises the Option,
then such person must submit documentation reasonably acceptable to the Company
that such person has the right to exercise the Option.

          4.2  Limitations on Exercise.  The Option may not be exercised unless
               -----------------------
such exercise is in compliance with all applicable federal and state securities
laws, as they are in effect on the date of exercise.

          4.3  Payment.  The Exercise Notice shall be accompanied by full
               -------
payment of the Exercise Price for the Shares being purchased:

               (a)  in cash;

               (b)  by check:

               (c)  delivery of a properly executed Exercise Notice together
                    with such other documentation as the Administrator and the
                    broker, if applicable, shall require to effect an exercise
                    of the Option and delivery to the Company of the sale or
                    loan proceeds required to pay the exercise price;

               (d)  any combination of the foregoing methods of payment; or

               (e)  such other consideration and method of payment for the
                    issuance of Shares to the extent permitted by Applicable
                    Laws and approved by the Administrator.

          4.4  Tax Withholding.  In connection with the issuance of the Shares
               ---------------
upon exercise of the Option, Participant must pay or provide for any applicable
federal or state withholding obligations of the Company.

          4.5  Issuance of Shares.  Upon the exercise of the Option in
               ------------------
accordance with this Section 4, the Company shall issue the purchased Shares
registered in the name of Participant, Participant's authorized assignee, or
Participant's legal representative, and shall deliver certificates representing
the Shares with the appropriate legends affixed thereto.

     5.   Compliance with Laws and Regulations. The exercise of the Option and
          ------------------------------------
the issuance and transfer of Shares shall be subject to compliance by the
Company and Participant with all applicable requirements of federal and state
securities laws and with all applicable

                                      -3-
<PAGE>

requirements of any stock exchange on which the Company's Common Stock may be
listed at the time of such issuance or transfer.

     6.   Nontransferability of Option. The Option may not be transferred in
          ----------------------------
any manner other than by will or by the laws of decent and distribution and may
be exercised during the lifetime of Participant only by Participant. The terms
of the Option shall be binding upon the executors, administrators, successor and
assigns of Participant.

     7.   Tax Consequences. Set forth below is a brief summary as of the Date
          ----------------
of Grant of some of the federal and state tax consequences of exercise of the
Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT SHOULD
CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

          7.1  Exercise of Nonqualified Stock Option. Participant will be
               -------------------------------------
treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the fair market value of the Shares on
the date of exercise over the Exercise Price. Prior to the delivery of the
Shares, the Company will be required to withhold from Participant's compensation
or collect from Participant and pay to the applicable taxing authorities an
amount equal to a percentage of this compensation income at the time of
exercise.

          7.2  Disposition of Shares. If the Shares are held for more than
               ---------------------
twelve (12) months after the date of the transfer of the Shares pursuant to the
exercise of the Option, any gain or loss realized on disposition of the Shares
will be treated as long term capital gain or loss for federal and state income
tax purposes.

     8.   Privileges of Stock Ownership. Participant shall not have any of the
          -----------------------------
rights of a shareholder with respect to any Shares until Participant exercises
the Option and pays the Exercise Price.

     9.   S-8 Registration. The Company shall register the Shares issuable
          ----------------
under this Option on a Form S-8 Registration Statement and shall keep such
Registration Statement in effect for the entire period that this Option
thereafter remains outstanding.

     10.  Entire Agreement. This Agreement and any Employment and Noncompete
          ----------------
Agreement entered into between the Company and the Participant constitute the
entire agreement of the parties and supersede all prior undertakings and
agreements with respect to the subject matter hereof. The provisions set forth
herein replace and supersede Section 4(c) of the Employment Offer dated January
10, 1998 to Joel J. Kocher and any previous option agreements or notices
regarding the options described herein.

     11.  Notices. Any notices required to be given or delivered to the Company
          -------
under the terms of this Agreement shall be in writing and addressed to the
Corporate Secretary of the Company at its principal corporate offices. Any
notice required to be given or delivered to Participant shall be in writing and
addressed to Participant at the address indicated above or to such other address
as such party may designate in writing from time to time to the Company. All
notices shall be deemed to have been given or delivered upon; personal delivery;
three (3) days after deposit in the United States mail by certified or
registered mail (return receipt requested);

                                      -4-
<PAGE>

one (1) business day after deposit with any return receipt express courier
(prepaid); or one (1) business day after transmission by rapifax or telecopier.

     12.  Successor and Assigns. The Company may assign any of its rights under
          ---------------------
this Agreement. This Agreement shall be binding upon and inure to the benefit of
the successors and assigns of the Company. Subject to the restrictions on
transfer set forth herein, this Agreement shall be binding upon Participant and
Participant's heirs, executors, administrators, legal representatives,
successors and assigns.

     13.  Governing Law. This Agreement shall be governed by and construed in
          -------------
accordance with the laws of the State of Minnesota.

     14.  Acceptance. Participant hereby acknowledges receipt of this
          ----------
Agreement. Participant has read and understands the terms and provisions
thereof, and accepts the Option subject to all the terms and conditions of this
Agreement. Participant acknowledges that there may be adverse tax consequences
upon exercise of the Option or disposition of the Shares and that Participant
should consult a tax advisor prior to such exercise or disposition.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in duplicate by its duly authorized representative and Participant has
executed this Agreement in duplicate.

MICRON ELECTRONICS, INC.,               PARTICIPANT
a Minnesota corporation

                                           /s/ Joel J. Kocher
                                        -------------------------------------
                                        Signature

By:  /s/ Sid Ferrales                        Joel J. Kocher
   -------------------------            -------------------------------------
                                        Print Name
Sid R. Ferrales, SVP, HR

Date:          5/23/00                  Date:     5/23/00
     -----------------------                 --------------------------------

____________________________

                                      -5-

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