Document:

<PAGE>

                                                                   EXHIBIT 10.01

                                 DoveBid, Inc.
                            1999 Stock Option Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       2
<PAGE>

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

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

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

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

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

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

            6.3  Grace Periods.  Following a Termination of Eligibility Status:
                 -------------

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

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

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

                                       3
<PAGE>

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

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

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

          6.5 Exercise of the Option; Issuance of Share Certificate.
              -----------------------------------------------------

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

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

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

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

                                       4
<PAGE>

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

          6.7  Restrictions on Transfer.
               ------------------------

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

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

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

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

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

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

                                       5
<PAGE>

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

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

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

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

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

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

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

                                       6
<PAGE>

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

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

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

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

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

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

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

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

                                       7
<PAGE>

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

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

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

                                       8
<PAGE>

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

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

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

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

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

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

                                       9
<PAGE>

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

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

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

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

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

                                       10
<PAGE>

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

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

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

Date Plan Approved by the Shareholders:            October _____, 1999

                                       11
<PAGE>

                                 DoveBid, Inc.
                            1999 Stock Option Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      A-1
<PAGE>

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

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

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

          "Holder" means the holder of any Option Shares.

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

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

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

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

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

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

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

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

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

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

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

                                      A-2
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

                                      A-3
<PAGE>

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

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

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

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

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

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

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

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

                                      A-4
<PAGE>

                                                                   EXHIBIT 10.01

                                 DOVEBID, INC.

                             STOCK OPTION AGREEMENT

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

        The parties agree as follows:

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

          Number of Shares subject to the Option:                      ___

          Exercise Price per Share:                                   $ __

          Vesting Start Date                                   _____, 2000

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

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

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

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

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

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

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

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

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

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

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

                                      -2-
<PAGE>

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

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

                                    DOVEBID, INC.

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

                                    Title:  Vice President and General Counsel

                                    Optionee:
                                    --------

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

                                    Address:

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

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

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

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

Exhibit A:  Form of Notice of Exercise of Stock Option

                                      -3-
<PAGE>

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

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

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

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

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

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

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

                                         Date:
                                               -------------------------
<PAGE>

                                                                       Exhibit A
                                                                       ---------

                                 DOVEBID, INC.

                       NOTICE OF EXERCISE OF STOCK OPTION

To the Secretary of DoveBid, Inc.

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

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

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

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

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

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

                                                                   EXHIBIT 10.02

                                 DOVEBID, INC.

                          2000 EQUITY INCENTIVE PLAN

                           As Adopted March 3, 2000

     1.   PURPOSE.  The purpose of this Plan is to provide incentives to
          -------
attract, retain and motivate eligible persons whose present and potential
contributions are important to the success of the Company, its Parent and
Subsidiaries, by offering them an opportunity to participate in the Company's
future performance through awards of Options, Restricted Stock and Stock
Bonuses.  Capitalized terms not defined in the text are defined in Section 23.

     2.   SHARES SUBJECT TO THE PLAN.
          --------------------------

          2.1  Number of Shares Available.  Subject to Sections 2.2 and 18, the
               --------------------------
total number of Shares reserved and available for grant and issuance pursuant to
this Plan will be 10,000,000 Shares plus Shares that are subject to: (a)
issuance upon exercise of an Option but cease to be subject to such Option for
any reason other than exercise of such Option; (b) an Award granted hereunder
but are forfeited or are repurchased by the Company at the original issue price;
and (c) an Award that otherwise terminates without Shares being issued.  In
addition, any authorized shares not issued or subject to outstanding grants
under the Company's 1999 Stock Option Plan (the "Prior Plan") on the Effective
Date (as defined below) and any shares issued under the Prior Plan that are
forfeited or repurchased by the Company or that are issuable upon exercise of
options granted pursuant to the Prior Plan that expire or become unexercisable
for any reason without having been exercised in full, will no longer be
available for grant and issuance under the Prior Plan, but will be available for
grant and issuance under this Plan.  In addition, on each January 1, the
aggregate number of Shares reserved and available for grant and issuance
pursuant to this Plan will be increased automatically by a number of Shares
equal to 5% of the total outstanding shares of the Company as of the immediately
preceding December 31, provided that no more than 50,000,000 shares shall be
issued as ISOs (as defined in Section 5 below).  At all times the Company shall
reserve and keep available a sufficient number of Shares as shall be required to
satisfy the requirements of all outstanding Options granted under this Plan and
all other outstanding but unvested Awards granted under this Plan.

          2.2  Adjustment of Shares.  In the event that the number of
               --------------------
outstanding shares is changed by a stock dividend, recapitalization, stock
split, reverse stock split, subdivision, combination, reclassification or
similar change in the capital structure of the Company without consideration,
then (a) the number of Shares reserved for issuance under this Plan, (b) the
number of Shares that may be granted pursuant to Sections 3 and 9 below, (c) the
Exercise Prices of and number of Shares subject to outstanding Options, and (d)
the number of Shares subject to other outstanding Awards will be proportionately
adjusted, subject to any required action by the Board or the stockholders of the
Company and compliance with applicable securities laws; provided, however, that
                                                        --------  -------
fractions of a Share will not be issued but will either be replaced by a cash
payment equal to the Fair Market Value of such fraction of a Share or will be
rounded up to the nearest whole Share, as determined by the Committee.

     3.   ELIGIBILITY.  ISOs (as defined in Section 5 below) may be granted only
          -----------
to employees (including officers and directors who are also employees) of the
Company or of a Parent or Subsidiary of the Company.  All other Awards may be
granted to employees, officers, directors, consultants, independent contractors
and advisors of the Company or any Parent or Subsidiary of the Company; provided
                                                                        --------
such consultants, contractors and advisors render bona fide services not in
connection with the offer and sale of securities in a capital-raising
transaction.  No person will be eligible to receive more than 5,000,000 Shares
in any calendar year under this Plan pursuant to the grant of Awards hereunder,
other than new employees of the Company or of a Parent or Subsidiary of the
Company (including new employees who are also officers and directors of the
Company or any Parent or Subsidiary of the Company), who are eligible to receive
up to a maximum of 5,500,000 Shares in the calendar year in which they commence
their employment.  A person may be granted more than one Award under this Plan.
<PAGE>

     4.   ADMINISTRATION.
          --------------

          4.1  Committee Authority.  This Plan will be administered by the
               -------------------
Committee or by the Board acting as the Committee.  Except for automatic grants
to Outside Directors pursuant to Section 9 hereof, and subject to the general
purposes, terms and conditions of this Plan, and to the direction of the Board,
the Committee will have full power to implement and carry out this Plan.  Except
for automatic grants to Outside Directors pursuant to Section 9 hereof, the
Committee will have the authority to:

          (a)  construe and interpret this Plan, any Award Agreement and any
               other agreement or document executed pursuant to this Plan;

          (b)  prescribe, amend and rescind rules and regulations relating to
               this Plan or any Award;

          (c)  select persons to receive Awards;

          (d)  determine the form and terms of Awards;

          (e)  determine the number of Shares or other consideration subject to
               Awards;

          (f)  determine whether Awards will be granted singly, in combination
               with, in tandem with, in replacement of, or as alternatives to,
               other Awards under this Plan or any other incentive or
               compensation plan of the Company or any Parent or Subsidiary of
               the Company;

          (g)  grant waivers of Plan or Award conditions;

          (h)  determine the vesting, exercisability and payment of Awards;

          (i)  correct any defect, supply any omission or reconcile any
               inconsistency in this Plan, any Award or any Award Agreement;

          (j)  determine whether an Award has been earned; and

          (k)  make all other determinations necessary or advisable for the
               administration of this Plan.

          4.2  Committee Discretion.  Except for automatic grants to Outside
               --------------------
Directors pursuant to Section 9 hereof, any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or Award, at any later time, and such determination will be final and binding on
the Company and on all persons having an interest in any Award under this Plan.
The Committee may delegate to one or more officers of the Company the authority
to grant an Award under this Plan to Participants who are not Insiders of the
Company.

     5.   OPTIONS.  The Committee may grant Options to eligible persons and will
          -------
determine whether such Options will be Incentive Stock Options within the
meaning of the Code ("ISO") or Nonqualified Stock Options ("NQSOs"), the number
of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of
the Option, subject to the following:

          5.1  Form of Option Grant.  Each Option granted under this Plan will
               --------------------
be evidenced by an Award Agreement which will expressly identify the Option as
an ISO or an NQSO ("Stock Option Agreement"), and, except as otherwise required
by the terms of Section 9 hereof, will be in such form and contain such
provisions (which need not be the same for each Participant) as the Committee
may from time to time approve, and which will comply with and be subject to the
terms and conditions of this Plan.

                                       2
<PAGE>

          5.2  Date of Grant.  The date of grant of an Option will be the date
               -------------
on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee.  The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

          5.3  Exercise Period.  Options may be exercisable within the times or
               ---------------
upon the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be
                                 --------  -------
exercisable after the expiration of ten (10) years from the date the Option is
granted; and provided further that no ISO granted to a person who directly or by
             ----------------
attribution owns more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any Parent or Subsidiary of the
Company ("Ten Percent Stockholder") will be exercisable after the expiration of
five (5) years from the date the ISO is granted.  The Committee also may provide
for Options to become exercisable at one time or from time to time, periodically
or otherwise, in such number of Shares or percentage of Shares as the Committee
determines.

          5.4  Exercise Price.  The Exercise Price of an Option will be
               --------------
determined by the Committee when the Option is granted and may be not less than
85% of the Fair Market Value of the Shares on the date of grant; provided that:
(i) the Exercise Price of an ISO will be not less than 100% of the Fair Market
Value of the Shares on the date of grant; and (ii) the Exercise Price of any ISO
granted to a Ten Percent Stockholder will not be less than 110% of the Fair
Market Value of the Shares on the date of grant.  Payment for the Shares
purchased may be made in accordance with Section 8 of this Plan.

          5.5  Method of Exercise.  Options may be exercised only by delivery to
               ------------------
the Company of a written stock option exercise agreement  (the "Exercise
Agreement") in a form approved by the Committee (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price for the number of Shares being
purchased.

          5.6  Termination.  Notwithstanding the exercise periods set forth in
               -----------
the Stock Option Agreement, exercise of an Option will always be subject to the
following:

          (a)  If the Participant is Terminated for any reason except death or
               Disability, then the Participant may exercise such Participant's
               Options only to the extent that such Options would have been
               exercisable upon the Termination Date no later than three (3)
               months after the Termination Date (or such shorter or longer time
               period not exceeding five (5) years as may be determined by the
               Committee, with any exercise beyond three (3) months after the
               Termination Date deemed to be an NQSO), but in any event, no
               later than the expiration date of the Options.

          (b)  If the Participant is Terminated because of Participant's death
               or Disability (or the Participant dies within three (3) months
               after a Termination other than for Cause or because of
               Participant's Disability), then Participant's Options may be
               exercised only to the extent that such Options would have been
               exercisable by Participant on the Termination Date and must be
               exercised by Participant (or Participant's legal representative
               or authorized assignee) no later than twelve (12) months after
               the Termination Date (or such shorter or longer time period not
               exceeding five (5) years as may be determined by the Committee,
               with any such exercise beyond (a) three (3) months after the
               Termination Date when the Termination is for any reason other
               than the Participant's death or Disability, or (b) twelve (12)
               months after the Termination Date when the Termination is for
               Participant's death or Disability, deemed to be an NQSO), but in
               any event no later than the expiration date of the Options.

                                       3
<PAGE>

          (c)  Notwithstanding the provisions in paragraph 5.6(a) above, if a
               Participant is terminated for Cause, neither the Participant, the
               Participant's estate nor such other person who may then hold the
               Option shall be entitled to exercise any Option with respect to
               any Shares whatsoever, after termination of service, whether or
               not after termination of service the Participant may receive
               payment from the Company or Subsidiary for vacation pay, for
               services rendered prior to termination, for services rendered for
               the day on which termination occurs, for salary in lieu of
               notice, or for any other benefits.  In making such determination,
               the Board shall give the Participant an opportunity to present to
               the Board evidence on his behalf.  For the purpose of this
               paragraph, termination of service shall be deemed to occur on the
               date when the Company dispatches notice or advice to the
               Participant that his service is terminated.

          5.7  Limitations on Exercise.  The Committee may specify a reasonable
               -----------------------
minimum number of Shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent Participant from exercising
the Option for the full number of Shares for which it is then exercisable.

          5.8  Limitations on ISO.  The aggregate Fair Market Value (determined
               ------------------
as of the date of grant) of Shares with respect to which ISO are exercisable for
the first time by a Participant during any calendar year (under this Plan or
under any other incentive stock option plan of the Company, Parent or Subsidiary
of the Company) will not exceed $100,000.  If the Fair Market Value of Shares on
the date of grant with respect to which ISO are exercisable for the first time
by a Participant during any calendar year exceeds $100,000, then the Options for
the first $100,000 worth of Shares to become exercisable in such calendar year
will be ISO and the Options for the amount in excess of $100,000 that become
exercisable in that calendar year will be NQSOs.  In the event that the Code or
the regulations promulgated thereunder are amended after the Effective Date of
this Plan to provide for a different limit on the Fair Market Value of Shares
permitted to be subject to ISO, such different limit will be automatically
incorporated herein and will apply to any Options granted after the effective
date of such amendment.

          5.9  Modification, Extension or Renewal.  The Committee may modify,
               ----------------------------------
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant's rights under
any Option previously granted.  Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code.  The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;

provided, however, that the Exercise Price may not be reduced below the minimum
--------  -------
Exercise Price that would be permitted under Section 5.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

          5.10 No Disqualification.  Notwithstanding any other provision in this
               -------------------
Plan, no term of this Plan relating to ISO will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

     6.   RESTRICTED STOCK.  A Restricted Stock Award is an offer by the Company
          ----------------
to sell to an eligible person Shares that are subject to restrictions.  The
Committee will determine to whom an offer will be made, the number of Shares the
person may purchase, the price to be paid (the "Purchase Price"), the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

          6.1  Form of Restricted Stock Award.  All purchases under a Restricted
               ------------------------------
Stock Award made pursuant to this Plan will be evidenced by an Award Agreement
("Restricted Stock Purchase Agreement") that will be in such form (which need
not be the same for each Participant) as the Committee will from time to time
approve, and will comply with and be subject to the terms and conditions of this
Plan.  The offer of Restricted Stock will be accepted by the Participant's
execution and delivery of the Restricted Stock Purchase Agreement and full
payment for the Shares to the Company within thirty (30) days from the date the
Restricted Stock Purchase Agreement is

                                       4
<PAGE>

delivered to the person. If such person does not execute and deliver the
Restricted Stock Purchase Agreement along with full payment for the Shares to
the Company within thirty (30) days, then the offer will terminate, unless
otherwise determined by the Committee.

          6.2  Purchase Price.  The Purchase Price of Shares sold pursuant to a
               --------------
Restricted Stock Award will be determined by the Committee on the date the
Restricted Stock Award is granted, except in the case of a sale to a Ten Percent
Stockholder, in which case the Purchase Price will be 100% of the Fair Market
Value.  Payment of the Purchase Price may be made in accordance with Section 8
of this Plan.

          6.3  Terms of Restricted Stock Awards.  Restricted Stock Awards shall
               --------------------------------
be subject to such restrictions as the Committee may impose.  These restrictions
may be based upon completion of a specified number of years of service with the
Company or upon completion of the performance goals as set out in advance in the
Participant's individual Restricted Stock Purchase Agreement.  Restricted Stock
Awards may vary from Participant to Participant and between groups of
Participants.  Prior to the grant of a Restricted Stock Award, the Committee
shall:  (a) determine the nature, length and starting date of any Performance
Period for the Restricted Stock Award; (b) select from among the Performance
Factors to be used to measure performance goals, if any; and (c) determine the
number of Shares that may be awarded to the Participant.  Prior to the payment
of any Restricted Stock Award, the Committee shall determine the extent to which
such Restricted Stock Award has been earned.  Performance Periods may overlap
and Participants may participate simultaneously with respect to Restricted Stock
Awards that are subject to different Performance Periods and having different
performance goals and other criteria.

          6.4  Termination During Performance Period.  If a Participant is
               -------------------------------------
Terminated during a Performance Period for any reason, then such Participant
will be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Restricted Stock Award only to the extent earned as of the date of
Termination in accordance with the Restricted Stock Purchase Agreement, unless
the Committee will determine otherwise.

     7.   STOCK BONUSES.
          -------------

          7.1  Awards of Stock Bonuses.  A Stock Bonus is an award of Shares
               -----------------------
(which may consist of Restricted Stock) for services rendered to the Company or
any Parent or Subsidiary of the Company.  A Stock Bonus may be awarded for past
services already rendered to the Company, or any Parent or Subsidiary of the
Company pursuant to an Award Agreement (the "Stock Bonus Agreement") that will
be in such form (which need not be the same for each Participant) as the
Committee will from time to time approve, and will comply with and be subject to
the terms and conditions of this Plan.  A Stock Bonus may be awarded upon
satisfaction of such performance goals as are set out in advance in the
Participant's individual Award Agreement (the "Performance Stock Bonus
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan.  Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company, Parent or Subsidiary and/or
individual performance factors or upon such other criteria as the Committee may
determine.

          7.2  Terms of Stock Bonuses.  The Committee will determine the number
               ----------------------
of Shares to be awarded to the Participant.  If the Stock Bonus is being earned
upon the satisfaction of performance goals pursuant to a Performance Stock Bonus
Agreement, then the Committee will: (a)  determine the nature, length and
starting date of any Performance Period for each Stock Bonus; (b) select from
among the Performance Factors to be used to measure the performance, if any; and
(c) determine the number of Shares that may be awarded to the Participant.
Prior to the payment of any Stock Bonus, the Committee shall determine the
extent to which such Stock Bonuses have been earned.  Performance Periods may
overlap and Participants may participate simultaneously with respect to Stock
Bonuses that are subject to different Performance Periods and different
performance goals and other criteria.  The number of Shares may be fixed or may
vary in accordance with such performance goals and criteria as may be determined
by the Committee.  The Committee may adjust the performance goals applicable to
the Stock Bonuses to take into account changes in law and accounting or tax
rules and to make such adjustments as the

                                       5
<PAGE>

Committee deems necessary or appropriate to reflect the impact of extraordinary
or unusual items, events or circumstances to avoid windfalls or hardships.

          7.3  Form of Payment.  The earned portion of a Stock Bonus may be paid
               ---------------
currently or on a deferred basis with such interest or dividend equivalent, if
any, as the Committee may determine.  Payment may be made in the form of cash or
whole Shares or a combination thereof, either in a lump sum payment or in
installments, all as the Committee will determine.

     8.   PAYMENT FOR SHARE PURCHASES.
          ---------------------------

          8.1  Payment.  Payment for Shares purchased pursuant to this Plan may
               -------
be made in cash (by check) or, where expressly approved for the Participant by
the Committee and where permitted by law:

          (a)  by cancellation of indebtedness of the Company to the
               Participant;

          (b)  by surrender of shares that either:  (1) have been owned by
               Participant for more than six (6) months and have been paid for
               within the meaning of SEC Rule 144 (and, if such shares were
               purchased from the Company by use of a promissory note, such note
               has been fully paid with respect to such shares); or (2) were
               obtained by Participant in the public market;

          (c)  by tender of a full recourse promissory note having such terms as
               may be approved by the Committee and bearing interest at a rate
               sufficient to avoid imputation of income under Sections 483 and
               1274 of the Code; provided, however, that Participants who are
                                 --------  -------
               not employees or directors of the Company will not be entitled to
               purchase Shares with a promissory note unless the note is
               adequately secured by collateral other than the Shares;

          (d)  by waiver of compensation due or accrued to the Participant for
               services rendered;

          (e)  with respect only to purchases upon exercise of an Option, and
               provided that a public market for the Company's stock exists:

               (1)  through a "same day sale" commitment from the Participant
                    and a broker-dealer that is a member of the National
                    Association of Securities Dealers (an "NASD Dealer") whereby
                    the Participant irrevocably elects to exercise the Option
                    and to sell a portion of the Shares so purchased to pay for
                    the Exercise Price, and whereby the NASD Dealer irrevocably
                    commits upon receipt of such Shares to forward the Exercise
                    Price directly to the Company; or

               (2)  through a "margin" commitment from the Participant and a
                    NASD Dealer whereby the Participant irrevocably elects to
                    exercise the Option and to pledge the Shares so purchased to
                    the NASD Dealer in a margin account as security for a loan
                    from the NASD Dealer in the amount of the Exercise Price,
                    and whereby the NASD Dealer irrevocably commits upon receipt
                    of such Shares to forward the Exercise Price directly to the
                    Company; or

          (f)  by any combination of the foregoing.

          8.2  Loan Guarantees.  The Committee may help the Participant pay for
               ---------------
Shares purchased under this Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.

                                       6
<PAGE>

     9.   AUTOMATIC GRANTS TO OUTSIDE DIRECTORS.
          -------------------------------------

          9.1  Types of Options and Shares.  Options granted under this Plan and
               ---------------------------
subject to this Section 9 shall be NQSOs.

          9.2  Eligibility.  Options subject to this Section 9 shall be granted
               -----------
only to Outside Directors.

          9.3  Initial Grant.  Each Outside Director who first becomes a member
               -------------
of the Board on or after the Effective Date, will automatically be granted an
Option for 100,000 Shares (an "Initial Grant") on the date such Outside Director
first becomes a member of the Board, unless such Outside Director received a
grant of Options before the Effective Date.

          9.4  Succeeding Grant.  Immediately following each Annual Meeting of
               ----------------
stockholders, each Outside Director will automatically be granted an Option for
25,000 Shares (a "Succeeding Grant"), provided the Outside Director is a member
of the Board on such date and has served continuously as a member of the Board
for a period of at least one year since the date of such Outside Director's
Initial Grant.  If an Outside Director did not receive an Initial Grant on or
after the Effective Date, such Outside Director will automatically be granted a
Succeeding Grant on the one (1) year anniversary of such Outside Director's last
option grant from the Company.

          9.5  Vesting.  The date an Outside Director receives an Initial Grant
               -------
or a Succeeding Grant is referred to in this Plan as the "Start Date" for such
Option.

          (a)  Initial Grant.  Each Initial Grant will vest as to 25% of the
               -------------
               Shares on the first one year anniversary of the Start Date for
               such Initial Grant, and thereafter as to 6.25% of the Shares
               after each subsequent 3 month period, so long as the Outside
               Director continuously remains a director or a consultant of the
               Company.

          (b)  Succeeding Grant.  Each Succeeding Grant will vest as to 25% of
               ----------------
               the Shares on the first one year anniversary of the Start Date
               for such Succeeding Grant, and thereafter as to 6.25% of the
               Shares after each subsequent 3 month period, so long as the
               Outside Director continuously remains a director or a consultant
               of the Company.

Notwithstanding any provision to the contrary, in the event of a Corporate
Transaction described in Section 18.1, the vesting of all options granted to
Outside Directors pursuant to this Section 9 will accelerate and such options
will become exercisable in full prior to the consummation of such event at such
times and on such conditions as the Committee determines, and must be exercised,
if at all, within three months of the consummation of said event.  Any options
not exercised within such three-month period shall expire.

          9.6  Exercise Price and Exercisability.  The exercise price of an
               ---------------------------------
Option pursuant to an Initial Grant and Succeeding Grant shall be the Fair
Market Value of the Shares, at the time that the Option is granted.  Initial
Grants and Succeeding Grants shall be immediately exercisable although the
Shares issued upon exercise of the Option will be subject to the restrictions on
transfer and the Company may reserve to itself and/or its assignee(s) in the
Award Agreement a right to repurchase a portion of or all Unvested Shares held
by an Outside Director following such Outside Director's termination as a
director or a consultant of the Company.

     10.  WITHHOLDING TAXES.
          -----------------

          10.1 Withholding Generally.  Whenever Shares are to be issued in
               ---------------------
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares.  Whenever, under this Plan,
payments in satisfaction of Awards are to be made in cash, such payment will be
net of an amount sufficient to satisfy federal, state, and local withholding tax
requirements.

                                       7
<PAGE>

          10.2 Stock Withholding.  When, under applicable tax laws, a
               -----------------
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined.  All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee and be in writing in a form acceptable to the
Committee.

     11.  TRANSFERABILITY.
          ---------------

          11.1 Except as otherwise provided in this Section 11, Awards granted
under this Plan, and any interest therein, will not be transferable or
assignable by Participant, and may not be made subject to execution, attachment
or similar process, otherwise than by will or by the laws of descent and
distribution or as determined by the Committee and set forth in the Award
Agreement with respect to Awards that are not ISOs.

          11.2 All Awards other than NQSO's.  All Awards other than NQSO's shall
               ----------------------------
be exercisable: (i) during the Participant's lifetime, only by (A) the
Participant, or (B) the Participant's guardian or legal representative; and (ii)
after Participant's death, by the legal representative of the Participant's
heirs or legatees.

          11.3 NQSOs.  Unless otherwise restricted by the Committee, an NQSO
               -----
shall be exercisable: (i) during the Participant's lifetime only by (A) the
Participant, (B) the Participant's guardian or legal representative, (C) a
Family Member of the Participant who has acquired the NQSO by "permitted
transfer;" and (ii) after Participant's death, by the legal representative of
the Participant's heirs or legatees.  "Permitted transfer" means, as authorized
by this Plan and the Committee in an NQSO, any transfer effected by the
Participant during the Participant's lifetime of an interest in such NQSO but
only such transfers which are by gift or domestic relations order.  A permitted
transfer does not include any transfer for value and neither of the following
are transfers for value:  (a) a transfer of under a domestic relations order in
settlement of marital property rights or (b) a transfer to an entity in which
more than fifty percent of the voting interests are owned by Family Members or
the Participant in exchange for an interest in that entity.

     12.  PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES.
          -----------------------------------------------------

          12.1 Voting and Dividends.  No Participant will have any of the rights
               --------------------
of a stockholder with respect to any Shares until the Shares are issued to the
Participant.  After Shares are issued to the Participant, the Participant will
be a stockholder and have all the rights of a stockholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
                                                        --------
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided, further, that the Participant will have no right to
                  --------  -------
retain such stock dividends or stock distributions with respect to Shares that
are repurchased at the Participant's Purchase Price or Exercise Price pursuant
to Section 12.

          12.2 Financial Statements.  The Company will provide financial
               --------------------
statements to each Participant prior to such Participant's purchase of Shares
under this Plan, and to each Participant annually during the period such
Participant has Awards outstanding; provided, however, the Company will not be
                                    --------  -------
required to provide such financial statements to Participants whose services in
connection with the Company assure them access to equivalent information.

          12.3 Restrictions on Shares.  At the discretion of the Committee, the
               ----------------------
Company may reserve to itself and/or its assignee(s) in the Award Agreement a
right to repurchase a portion of or all Unvested Shares held by a Participant
following such Participant's Termination at any time within ninety (90) days
after the later of Participant's Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or

                                       8
<PAGE>

cancellation of purchase money indebtedness, at the Participant's Exercise Price
or Purchase Price, as the case may be.

     13.  CERTIFICATES.  All certificates for Shares or other securities
          ------------
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
law, or any rules, regulations and other requirements of the SEC or any stock
exchange or automated quotation system upon which the Shares may be listed or
quoted.

     14.  ESCROW; PLEDGE OF SHARES.  To enforce any restrictions on a
          ------------------------
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates.  Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant's obligation to the
Company under the promissory note; provided, however, that the Committee may
                                   --------  -------
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of
the Participant's Shares or other collateral.  In connection with any pledge of
the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve.  The
Shares purchased with the promissory note may be released from the pledge on a
pro rata basis as the promissory note is paid.

     15.  EXCHANGE AND BUYOUT OF AWARDS.  The Committee may, at any time or from
          -----------------------------
time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards.  The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, Shares (including
Restricted Stock) or other consideration, based on such terms and conditions as
the Committee and the Participant may agree.

     16.  SECURITIES LAW AND OTHER REGULATORY COMPLIANCE.  An Award will not be
          ----------------------------------------------
effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance.
Notwithstanding any other provision in this Plan, the Company will have no
obligation to issue or deliver certificates for Shares under this Plan prior to:
(a) obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable; and/or (b) completion of any registration
or other qualification of such Shares under any state or federal law or ruling
of any governmental body that the Company determines to be necessary or
advisable.  The Company will be under no obligation to register the Shares with
the SEC or to effect compliance with the registration, qualification or listing
requirements of any state securities laws, stock exchange or automated quotation
system, and the Company will have no liability for any inability or failure to
do so.

     17.  NO OBLIGATION TO EMPLOY.  Nothing in this Plan or any Award granted
          -----------------------
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any 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.

     18.  CORPORATE TRANSACTIONS.
          ----------------------

          18.1 Assumption or Replacement of Awards by Successor.  Except for
               ------------------------------------------------
automatic grants to Outside Directors pursuant to Section 9 hereof, in the event
of (i) a dissolution or liquidation of the Company, (ii) a

                                       9
<PAGE>

merger or consolidation in which the Company is not the surviving corporation
(other than a merger or consolidation with a wholly-owned subsidiary, a
reincorporation of the Company in a different jurisdiction, or other transaction
in which there is no substantial change in the stockholders of the Company or
their relative stock holdings and the Awards granted under this Plan are
assumed, converted or replaced by the successor corporation, which assumption
will be binding on all Participants), (iii) a merger in which the Company is the
surviving corporation but after which the stockholders of the Company
immediately prior to such merger (other than any stockholder that merges, or
which owns or controls another corporation that merges, with the Company in such
merger) cease to own their shares or other equity interest in the Company, (iv)
the sale of substantially all of the assets of the Company, or (v) the
acquisition, sale, or transfer of more than 50% of the outstanding shares of the
Company by tender offer or similar transaction (each, a "Corporate
Transaction"), any or all outstanding Awards may be assumed, converted or
replaced by the successor corporation (if any), which assumption, conversion or
replacement will be binding on all Participants. However, in the event a
Participant is Terminated within one (1) year from the date of the Corporate
Transaction for any reason except for death, Disability or Cause, then the
vesting of all outstanding Awards for such Participant will accelerate as to an
additional 25% of the Shares that are unvested on the date of such Termination.
In the alternative, the successor or acquiring corporation may substitute
equivalent Awards or provide substantially similar consideration to Participants
as was provided to shareholders (after taking into account the existing
provisions of the Awards). The successor corporation may also issue, in place of
outstanding unvested Shares of the Company held by the Participants,
substantially similar shares or other property subject to repurchase
restrictions no less favorable to the Participant. In the event such successor
corporation (if any) refuses to assume or substitute Awards, as provided above,
pursuant to a Corporate Transaction described in this Subsection 18.1, such
Awards will expire on such Corporate Transaction at such time and on such
conditions as the Committee will determine. Notwithstanding anything in this
Plan to the contrary, the Committee may, in its sole discretion, provide that
the vesting of any or all Awards granted pursuant to this Plan will accelerate
upon a Corporate Transaction described in this Section 18. If the Committee
exercises such discretion with respect to Options, such Options will become
exercisable in full prior to the consummation of such event at such time and on
such conditions as the Committee determines, and if such Options are not
exercised prior to the consummation of the Corporate Transaction, they shall
terminate at such time as determined by the Committee.

          18.2 Other Treatment of Awards.  Subject to any greater rights granted
               -------------------------
to Participants under the foregoing provisions of this Section 18, in the event
of the occurrence of any Corporate Transaction described in Section 18.1, any
outstanding Awards will be treated as provided in the applicable agreement or
plan of merger, consolidation, dissolution, liquidation, or sale of assets.

          18.3 Assumption of Awards by the Company.  The Company, from time to
               -----------------------------------
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either; (a) granting an Award under this Plan in substitution of
such other company's award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan.  Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant.  In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged

(except that the exercise price and the number and nature of Shares issuable
 ------
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code).  In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

     19.  ADOPTION AND STOCKHOLDER APPROVAL.  This Plan will become effective on
          ---------------------------------
the date on which the registration statement filed by the Company with the SEC
under the Securities Act registering the initial public offering of the
Company's Common Stock is declared effective by the SEC (the "Effective Date").
This Plan shall be approved by the stockholders of the Company (excluding Shares
issued pursuant to this Plan), consistent with applicable laws, within twelve
(12) months before or after the date this Plan is adopted by the Board.  Upon
the Effective Date, the Committee may grant Awards pursuant to this Plan;

provided, however, that: (a) no Option may be exercised prior to initial
--------  -------
stockholder approval of this Plan; (b) no Option granted pursuant to an increase
in the number of Shares subject to this Plan approved by the Board will be
exercised prior to the time such

                                       10
<PAGE>

increase has been approved by the stockholders of the Company; (c) in the event
that initial stockholder approval is not obtained within the time period
provided herein, all Awards granted hereunder shall be cancelled, any Shares
issued pursuant to any Awards shall be cancelled and any purchase of Shares
issued hereunder shall be rescinded; and (d) in the event that stockholder
approval of such increase is not obtained within the time period provided
herein, all Awards granted pursuant to such increase will be cancelled, any
Shares issued pursuant to any Award granted pursuant to such increase will be
cancelled, and any purchase of Shares pursuant to such increase will be
rescinded.

     20.  TERM OF PLAN/GOVERNING LAW.  Unless earlier terminated as provided
          --------------------------
herein, this Plan will terminate ten (10) years from the date this Plan is
adopted by the Board or, if earlier, the date of stockholder approval.  This
Plan and all agreements thereunder shall be governed by and construed in
accordance with the laws of the State of California.

     21.  AMENDMENT OR TERMINATION OF PLAN.  The Board may at any time terminate
          --------------------------------
or amend this Plan in any respect, including without limitation amendment of any
form of Award Agreement or instrument to be executed pursuant to this Plan;

provided, however, that the Board will not, without the approval of the
--------  -------
stockholders of the Company, amend this Plan in any manner that requires such
stockholder approval.

     22.  NONEXCLUSIVITY OF THE PLAN.  Neither the adoption of this Plan by the
          --------------------------
Board, the submission of this Plan to the stockholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific
cases.

     23.  DEFINITIONS.  As used in this Plan, the following terms will have the
          -----------
following meanings:

          "Award" means any award under this Plan, including any Option,
Restricted Stock or Stock Bonus.

          "Award Agreement" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award.

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

          "Cause" means the commission of an act of theft, embezzlement, fraud,
dishonesty or a breach of fiduciary duty to the Company or a Parent or
Subsidiary of the Company.

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Committee" means the Compensation Committee of the Board.

          "Company" means DoveBid, Inc. or any successor corporation.

          "Disability" means a disability, whether temporary or permanent,
partial or total, as determined by the Committee.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended.

          "Exercise Price" means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

          "Fair Market Value" means, as of any date, the value of a share of the
Company's Common Stock determined as follows:

                                       11
<PAGE>

          (a)  if such Common Stock is then quoted on the Nasdaq National
               Market, its closing price on the Nasdaq National Market on the
               date of determination as reported in The Wall Street Journal;
                                                    -----------------------

          (b)  if such Common Stock is publicly traded and is then listed on a
               national securities exchange, its closing price on the date of
               determination on the principal national securities exchange on
               which the Common Stock is listed or admitted to trading as
               reported in The Wall Street Journal;
                           -----------------------

          (c)  if such Common Stock is publicly traded but is not quoted on the
               Nasdaq National Market nor listed or admitted to trading on a
               national securities exchange, the average of the closing bid and
               asked prices on the date of determination as reported in The Wall
                                                                        --------
               Street Journal;
               --------------

          (d)  in the case of an Award made on the Effective Date, the price per
               share at which shares of the Company's Common Stock are initially
               offered for sale to the public by the Company's underwriters in
               the initial public offering of the Company's Common Stock
               pursuant to a registration statement filed with the SEC under the
               Securities Act;  or

          (e)  if none of the foregoing is applicable, by the Committee in good
               faith.

          "Family Member" includes any of the following:

          (a)  child, stepchild, grandchild, parent, stepparent, grandparent,
               spouse, former spouse, sibling, niece, nephew, mother-in-law,
               father-in-law, son-in-law, daughter-in-law, brother-in-law, or
               sister-in-law of the Participant, including any such person with
               such relationship to the Participant by adoption;

          (b)  any person (other than a tenant or employee) sharing the
               Participant's household;

          (c)  a trust in which the persons in (a) and (b) have more than fifty
               percent of the beneficial interest;

          (d)  a foundation in which the persons in (a) and (b) or the
               Participant control the management of assets; or

          (e)  any other entity in which the persons in (a) and (b) or the
               Participant own more than fifty percent of the voting interest.

          "Insider" means an officer or director of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Exchange Act.

          "Option" means an award of an option to purchase Shares pursuant to
Section 5.

          "Outside Director" means a member of the Board who is not an employee
of the Company or any Parent, Subsidiary or Affiliate of the Company.

          "Parent" means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company if each of such corporations other
than the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

          "Participant" means a person who receives an Award under this Plan.

                                       12
<PAGE>

          "Performance Factors" means the factors selected by the Committee from
among the following measures to determine whether the performance goals
established by the Committee and applicable to Awards have been satisfied:

          (a) Net revenue and/or net revenue growth;

          (b) Earnings before income taxes and amortization and/or earnings
              before income taxes and amortization growth;

          (c) Operating income and/or operating income growth;

          (d) Net income and/or net income growth;

          (e) Earnings per share and/or earnings per share growth;

          (f) Total stockholder return and/or total stockholder return growth;

          (g) Return on equity;

          (h) Operating cash flow return on income;

          (i) Adjusted operating cash flow return on income;

          (j) Economic value added; and

          (k) Individual confidential business objectives.

          "Performance Period" means the period of service determined by the
Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Bonuses.

          "Plan" means this DoveBid, Inc. 2000 Equity Incentive Plan, as amended
from time to time.

          "Restricted Stock Award" means an award of Shares pursuant to Section
6.

          "SEC" means the Securities and Exchange Commission.

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

          "Shares" means shares of the Company's Common Stock reserved for
issuance under this Plan, as adjusted pursuant to Sections 2 and 18, and any
successor security.

          "Stock Bonus" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 7.

          "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

          "Termination" or "Terminated" means, for purposes of this Plan with
respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director, consultant, independent
contractor, or advisor to the Company or a Parent or Subsidiary of the Company.
An employee will not be deemed to have ceased to provide services in the case of
(i) sick leave, (ii) military leave, or (iii) any other

                                       13
<PAGE>

leave of absence approved by the Committee, provided, that such leave is for a
period of not more than 90 days, unless reemployment upon the expiration of such
leave is guaranteed by contract or statute or unless provided otherwise pursuant
to formal policy adopted from time to time by the Company and issued and
promulgated to employees in writing. In the case of any employee on an approved
leave of absence, the Committee may make such provisions respecting suspension
of vesting of the Award while on leave from the employ of the Company or a
Subsidiary as it may deem appropriate, except that in no event may an Option be
exercised after the expiration of the term set forth in the Option agreement.
The Committee will have sole discretion to determine whether a Participant has
ceased to provide services and the effective date on which the Participant
ceased to provide services (the "Termination Date").

          "Unvested Shares" means "Unvested Shares" as defined in the Award
Agreement.

          "Vested Shares" means "Vested Shares" as defined in the Award
Agreement.

                                       14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}]]