Document:

EXHIBIT 10.1

EXHIBIT 10.1

VMH VIDEOMOVIEHOUSE.COM INC. 

RESTATED AND AMENDED

2003 NONQUALIFIED STOCK OPTION PLAN 

ARTICLE I 

Purpose of Plan 

This 2003 AMENDED AND RESTATED  NONQUALIFIED STOCK OPTION PLAN (the "Plan") of VMH VIDEOMOVIEHOUSE.COM INC. (the "Company") for persons employed or associated with the Company, including without limitation any employee, director, general partner, officer, attorney, accountant, consultant or advisor, is intended to advance the best interests of the Company by providing additional incentive to those persons who have a substantial responsibility for its management, affairs, and growth by increasing their proprietary interest in the success of the Company, thereby encouraging them to maintain their relationships with the Company.  Further, the availability and offering of Stock Options under the Plan supports and increases the Company's ability to attract, engage and retain individuals of exceptional talent upon whom, in large measure, the sustained progress growth and profitability of the Company for the shareholders depends. 

ARTICLE II 

Definitions 

For Plan purposes, except where the context might clearly indicate otherwise, the following terms shall have the meanings set forth below:  

"Board" shall mean the Board of Directors of the Company.

"Code" shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

"Committee" shall mean the Compensation Committee, or such other committee appointed by the Board, which shall be designated by the Board to administer the Plan.  The Company shall be composed of two or more persons as from time to time are appointed to serve by the Board and may be members of the Board or the entire Board. 

"Common Shares" shall mean the Company's Common Shares no par value per share, or, in the event that the outstanding Common Shares are hereafter changed into or exchanged for different shares or securities of the Company, such other shares or securities.

"Company" shall mean VMH VIDEOMOVIEHOUSE.COM INC., a British Columbia corporation, and any parent or subsidiary corporation of VMH VIDEOMOVIEHOUSE.COM INC., as such terms are defined in Section 425(e) and 425(f), respectively of the Code.  

 

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"Optionee" shall mean any person employed or associated with the affairs of the Company who has been granted one or more Stock Options under the Plan.

"Stock Option" or "NQSO" shall mean a stock option granted pursuant to the terms of the Plan.

"Stock Option Agreement" shall mean the agreement between the Company and the Optionee under which the Optionee may purchase Common Shares hereunder. 

ARTICLE III  

Administration of the Plan 

	The Committee shall administer the plan and accordingly, it shall have full power to grant Stock Options, construe and interpret the Plan, establish rules and regulations and perform all other acts, including the delegation of administrative responsibilities, it believes reasonable and proper. 

	The determination of those eligible to receive Stock Options, and the amount, price, type and timing of each Stock Option and the terms and conditions of the respective stock option agreements shall rest in the sole discretion of the Committee, subject to the provisions of the Plan. 

	The Committee may cancel any Stock Options awarded under the Plan if an Optionee conducts himself in a manner which the Committee determines to be inimical to the best interest of the Company and its shareholders as set forth more fully in paragraph 8 of Article X of the Plan.

	The Board, or the Committee, may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any granted Stock Option, in the manner and to the extent it shall deem necessary to carry it into effect. 

	Any decision made, or action taken, by the Committee or the Board arising out or in connection with the interpretation and administration of the Plan shall be final and conclusive. 

	Meetings of the Committee shall be held at such times and places as shall be determined by the Committee.  A majority of the members of the Committee shall constitute a quorum for the transaction of business, and the vote of a majority of those members present at any meeting shall decide any question brought before that meeting.  In addition, the Company may take any action otherwise proper under the Plan by the affirmative vote, taken without a meeting, of a majority of its members. 

	No member of the Committee shall be liable for any act or omission of any other member of the Committee or for any act or omission on his own part, including, but not limited to, the exercise of any power or discretion given to him under the Plan except those resulting form his own gross negligence or willful misconduct.

 

 

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	The Company, through its management, shall supply full and timely information to the Committee on all matters relating to the eligibility of Optionees, their duties and performance, and current information on any Optionee's death, retirement, disability or other termination of association with the Company, and such other pertinent information as the Committee may require.  The Company shall furnish the Committee with such clerical and other assistance as is necessary in the performance of its duties hereunder. 

ARTICLE IV 

Shares Subject to the Plan 

	The total number of shares of the Company available for grants of Stock Options under the Plan shall be 15,000,000 Common Shares, subject to adjustment as herein provided, which shares may be either authorized but unissued or reacquired Common Shares of the Company.

	If a Stock Option or portion thereof shall expire or terminate for any reason without having been exercised in full, the unpurchased shares covered by such NQSO shall be available for future grants of Stock Options.

ARTICLE V 

Stock Option Terms and Conditions 

	Consistent with the Plan's purpose, Stock Options may be granted to any person who is performing or who has been engaged to perform services of special importance to management in the operation, development and growth of the Company.

	Determination of the option price per share for any stock option issues hereunder shall rest in the sole and unfettered discretion of the Committee. 

	All Stock Options granted under the Plan shall be evidenced by agreements which shall be subject to applicable provisions of the Plan, and such other provisions as the Committee may adopt, including the provisions set forth in paragraphs 2 through 11 of this Article V.

	All Stock Options granted hereunder must be granted within ten years from the date this Plan is adopted. 

	No Stock Option granted hereunder shall be exercisable after the expiration of ten years from the date such NQSO is granted.  The Committee, in its discretion, may provide that an option shall be exercisable during such ten year period or during any lesser period of time.  The Committee may establish installment exercise terms for a Stock Option such that the NQSO becomes fully exercisable in a series of cumulating portions.  If an Optionee shall not, in any given installment period, purchase all the Common Shares which such Optionee is entitled to purchase within such installment period, such Optionee's right to purchase any Common Shares not purchased in such installment period shall continue until the expiration or sooner termination of such NQSO.  The Committee may also accelerate the exercise of any NQSO. 

 

 

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	A Stock Option, or portion thereof, shall be exercised by deliver of (i) a written notice of exercise to the Company specifying the number of Common Shares to be purchased, and (ii) payment of the full price of such Common Shares, as fully set forth in paragraph 7 of this Article V.  No NQSO or installment thereof shall be reusable except with respect to whole shares, and fractional share interests shall be disregarded.  Not less than 100 Common Shares  may be purchased at one time unless the number purchased is the total number at the time available for purchase under the NQSO.  Until the Common Shares represented by an exercised NQSO are issued to an Optionee, he shall have none of the rights of a shareholder.

	The exercise price of a Stock Option, or portion thereof, may be paid: 

A.     In United States dollars, in cash or by cashier's check, certified check, bank draft or money order, payable to the order of the Company in an amount equal to the option price; or,      

B.     At the discretion of the Committee, through the delivery of fully paid and nonassessable Common Shares, with an aggregate fair market value (determined as the average of the highest and lowest reported sales prices on the Common Shares as of the date of exercise of the NQSO, as reported by such responsible reporting service as the Committee may select, or if there were not transactions in the Common Shares on such day, then the last preceding day on which transactions took place), as of the date of the NQSO exercise equal to the option price, provided such tendered shares, or any derivative security resulting in the issuance of Common Shares, have been owned by he Optionee for at least 30 days prior to such exercise; or, 

C.     By a combination of both A and B above. 

	The Committee shall determine acceptable methods for tendering Common Shares as payment upon exercise of a Stock Option and may impose such limitations and prohibitions on the use of Common Shares to exercise an NQSO as it deems appropriate. 

	With the Optionee's consent, the Committee may cancel any Stock Option issued under this Plan and issue a new NQSO to such Optionee. 

	Except by will, the laws of descent and distribution, or with the written consent of the Committee, no right or interest in any Stock Option granted under the Plan shall be assignable or transferable, and no right or interest of any Optionee shall be liable for, or subject to, any lien, obligation or liability of the Optionee.  Upon petition to, and thereafter with the written consent of the Committee, an Optionee may assign or transfer all or a portion of the Optionee's rights and interest in any stock option granted hereunder.  Stock Options shall be exercisable during the Optionee's lifetime only by the Optionee or assignees, or the duly appointed legal representative of an incompetent Optionee, including following an assignment consented to by the Committee herein. 

 

 

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	No NQSO shall be exercisable while there is outstanding any other NQSO which was granted to the Optionee before the grant of such option under the Plan or any other plan which gives the right to the Optionee to purchase stock in the Company or in a corporation which is a parent corporation (as defined in Section 425(e) of the Code) of the Company, or any predecessor corporation of any of such corporations at the time of the grant.  An NQSO shall be treated as outstanding until it is either exercised in full or expires by reason of lapse of time. 

	Any Optionee who disposes of Common Shares acquired on the exercise of a NQSO by sale or exchange either (i) within two years after the date of the grant of the NQSO under which the stock was acquired, or (ii) within one year after the acquisition of such Shares, shall notify the Company of such disposition and of the amount realized upon such disposition.  The transfer of Common Shares may also be restricted by applicable provisions of the Securities Act of 1933, as amended.

ARTICLE VI  

Adjustments or Changes in Capitalization 

	In the event that the outstanding Common Shares of the Company are hereafter changed into or exchanged for a different number of kinds of shares or other securities of the Company by reason of merger, consolidation, other reorganization, recapitalization, reclassification, combination of shares, stock split-up or stock dividend:

A.     Prompt, proportionate, equitable, lawful and adequate adjustment shall be made of the aggregate number and kind of shares subject to Stock Options which may be granted under the Plan, such that the Optionee shall have the right to purchase such Common Shares as may be issued in exchange for the Common Shares purchasable on exercise of the NQSO had such merger, consolidation, other reorganization, recapitalization, reclassification, combination of shares, stock split-up or stock dividend not taken place;

B.     Rights under unexercised Stock Options or portions thereof granted prior to any such change, both as to the number or kind of shares and the exercise price per share, shall be adjusted appropriately, provided that such adjustments shall be made without change in the total exercise price applicable to the unexercised portion of such NQSO's but by an adjustment in the price for each share covered by such NQSO's; or, 

C.     Upon any dissolution or liquidation of the Company or any merger or combination in which the Company is not a surviving corporation, each outstanding Stock Option granted hereunder shall terminate, but the Optionee shall have the right, immediately prior to such dissolution, liquidation, merger or combination, to exercise his NQSO in whole or in part, to the extent that it shall not have been exercised, without regard to any installment exercise provisions in such NQSO. 

 

 

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	The foregoing adjustment and the manner of application of the foregoing provisions shall be determined solely by the Committee, whose determination as to what adjustments shall be made and the extent thereof, shall be final, binding and conclusive.  No fractional Shares shall be issued under the Plan on account of any such adjustments.    

ARTICLE VII

Merger, Consolidation or Tender Offer 

	If the Company shall be a party to a binding agreement to any merger, consolidation or reorganization or sale of substantially all the assets of the Company, each outstanding Stock Option shall pertain and apply to the securities and/or property which a shareholder of the number of Common Shares of the Company subject to the NQSO would be entitled to receive pursuant to such merger, consolidation or reorganization or sale of assets.

	In the event that: 

A.     Any person other than the Company shall acquire more than 20% of the Common Shares of the Company through a tender offer, exchange offer or otherwise; 

B.     A change in the "control" of the Company occurs, as such term is defined in Rule 405 under the Securities Act of 1933; 

C.     There shall be a sale of all or substantially all of the assets of the Company; any then outstanding Stock Option held by an Optionee, who is deemed by the Committee to be a statutory officer ("insider") for purposes of Section 16 of the Securities Exchange Act of 1934 shall be entitled to receive, subject to any action by the Committee revoking such an entitlement as provided for below, in lieu of exercise of such Stock Option, to the extent that it is then exercisable, a cash payment in an amount equal to the difference between the aggregate exercise price of such NQSO, or portion thereof, and, (i) in the event of an offer or similar event, the final offer price per share paid for Common Shares, or such lower price as the Committee may determine to conform an option to preserve its Stock Option status, times the number of Common Shares covered by the NQSO or portion thereof, or (ii) in the case of an event covered by B or C above, the aggregate fair market value of the Common Shares covered by the Stock Option, as determined by the Committee at such time. 

	Any payment which the Company is required to make pursuant to paragraph 2 of this Article VII, shall be made within 15 business days, following the event which results in the Optionee's right to such payment.  In the event of a tender offer in which fewer than all the shares which are validity tendered in compliance with such offer are purchased or exchanged, then only  that portion of the shares covered by an NQSO as results from multiplying such shares by a fraction, the numerator of which is the number of Common Shares acquired purchase to the offer and the denominator of which is the number of Common Shares tendered in compliance with such offer, shall be used to determine the payment thereupon.  To the extent that all or any portion of a Stock Option shall be affected by this provision, all or such portion of the NQSO shall be terminated.

 

 

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	Notwithstanding paragraphs 1 and 3 of this Article VII, the Company may, by unanimous vote and resolution, unilaterally revoke the benefits of the above provisions; provided, however, that such vote is taken no later than ten business days following public announcement of the intent of an offer of the change of control, whichever occurs earlier. 

ARTICLE VIII 

Amendment and Termination of Plan 

	The Board may at any time, and from time to time, suspend or terminate the Plan in whole or in part or amend it from time to time in such respects as the Board may deem appropriate and in the best interest of the Company. 

	No amendment, suspension or termination of this Plan shall, without the Optionee's consent, alter or impair any of the rights or obligations under any Stock Option theretofore granted to him under the Plan.

	The Board may amend the Plan, subject to the limitations cited above, in such manner as it deems necessary to permit the granting of Stock Options meeting the requirements of future amendments or issued regulations, if any, to the Code. 

	No NQSO may be granted during any suspension of the Plan or after termination of the Plan. 

ARTICLE IX 

Government and Other Regulations 

The obligation of the Company to issue, transfer and deliver Common Shares for Stock Options exercised under the Plan shall be subject to all applicable laws, regulations, rules, orders and approval which shall then be in effect and required by the relevant stock exchanges on which the Common Shares are traded and by government entities as set forth below or as the Committee in its sole discretion shall deem necessary or advisable.  Specifically, in connection with the Securities Act of 1933, as amended, upon exercise of any Stock Option, the Company shall not be required to issue Common Shares unless the Committee has received evidence satisfactory to it to the effect that the Optionee will not transfer such shares except pursuant to a registration statement in effect under such Act or unless an opinion of counsel satisfactory to the Company has been received by the Company to the effect that such registration is not required.  Any determination in this connection by the Committee shall be final, binding and conclusive.  The Company may, but shall in no event be obligated to take any other affirmative action in order to cause the exercise of a Stock Option or the issuance of Common Shares purchase thereto to comply with any law or regulation of any government authority. 

 

 

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ARTICLE X 

Miscellaneous Provisions 

	No person shall have any claim or right to be granted a Stock Option under the Plan, and the grant of an NQSO under the Plan shall not be construed as giving an Optionee the right to be retained by the Company.  Furthermore, the Company expressly reserves the right at any time to terminate its relationship with an Optionee with or without cause, free from any liability, or any claim under the Plan, except as provided herein, in an option agreement, or in any agreement between the Company and the Optionee. 

	Any expenses of administering this Plan shall be borne by the Company.

	The payment received from Optionee from the exercise of Stock Options under the Plan shall be used for the general corporate purposes of the Company.

	The place of administration of the Plan shall be in the State of British Columbia, and the validity, contraction, interpretation, administration and effect of the Plan and its rules and regulations, and rights relating to the Plan, shall be determined solely in accordance with the laws of the State of British Columbia.

	Without amending the Plan, grants may be made to persons who are foreign nationals or employed outside the United States, or both, on such terms and conditions, consistent with the Plan's purpose, different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to create equitable opportunities given differences in tax laws in other countries.

	In addition to such other rights of indemnification as they may have as members of the Board or Committee, the members of the Committee shall be indemnified by the Company against all costs and expenses reasonably incurred by them in connection with any action, suite or proceeding to which they or any of them may be party by reason of any action taken or failure to act under or in connection with the Plan or any Stock Option granted thereunder, an against all amount paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except a judgment based upon a finding of bad faith; provided that upon the institution of any such action, suit or proceeding a Committee member shall in writing, give the Company notice thereof and an opportunity, at its own expense, to handle and defend the same before such Committee member undertakes to handle and defend it on his own behalf.

 

 

 

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	Stock Options may be granted under this Plan form time to time, in substitution for stock options held by employees of other corporations who are about to become employees of the Company as the result of a merger or consolidation of the employing corporation with the Company or the acquisition by the Company of the assets of the employing corporation or the acquisition by the Company of stock of the employing corporation as a result of which it become a subsidiary of the Company.  The terms and conditions of such substitute stock options so granted my vary from the terms and conditions set forth in this Plan to such extent as the Board of Director of the Company at the time of grant may deem appropriate to conform, in whole or in part, to the provisions of the stock options in substitution for which they are granted, but no such variations shall be such as to affect the status of any such substitute stock options as a stock option under Section 422A of the Code.

	Notwithstanding anything to the contrary in the Plan, if the Committee finds by a majority vote, after full consideration of the facts presented on behalf of both the Company the Optionee, that the Optionee has been engaged in fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his association with the Company or any subsidiary corporation which damaged the Company or any subsidiary corporation, or for disclosing trade secrets of the Company or any subsidiary corporation, the Optionee shall forfeit all unexercised Stock Options and all exercised NQSO's under which the Company has not yet delivered the certificates and which have been earlier granted the Optionee by the Committee.  The decision of the Committee as to the case of an Optionee's discharge and the damage done to the Company shall be final.  No decision of the Committee, however, shall affect the finality of the discharge of such Optionee by the Company or any subsidiary corporation in any manner.  Further, if Optionee voluntarily terminates employment with the Company, the Optionee shall forfeit all unexercised stock options.

ARTICLE XI 

Written Agreement

Each Stock Option granted hereunder shall be embodied in a written Stock Option Agreement which shall be subject to the terms and conditions prescribed above and shall be signed by the Optionee and by the President or any Vice President of the Company, for and in the name and on behalf of the Company.  Such Stock Option Agreement shall contain such other provisions as the Committee, in its discretion shall deem advisable. 

ARTICLE XII 

Effective Date 

This Plan shall become unconditionally effective as of the effective date of approval of the Plan by the Board of Directors of the Company.  No Stock Option may be granted later than ten (10) years from the effective date of the Plan; provided, however, that the Plan and all outstanding Stock Options shall remain in effect until such NQSO's have expired or until such options are cancelled. 

 

 

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Number of Shares: _______________
	
Date of Grant: _______________       

NONQUALIFIED STOCK OPTION AGREEMENT 

AGREEMENT made this _____ day of __________________, 20____, between ____________________________ (the "Optionee"), and VMH VIDEOMOVIEHOUSE.COM INC., a British Columbia corporation (the "Company").

	Grant of Option.  The Company, pursuant to the provisions of the AMENDED AND RESTATED 2003 VMH VIDEOMOVIEHOUSE.COM INC. Nonqualified Stock Option Plan (the "2003 Plan"), set forth as Attachment A hereto, hereby grants to the Optionee, subject to the terms and conditions set forth or incorporated herein, an Option and Purchase from the Company all or any part of an aggregate of _______________ Common Shares, as such Common Shares are now constituted, at the purchase price of $_______________ per share.  The provisions of the 2003 Plan governing the terms and conditions of the Option granted hereby are incorporated in full herein by reference. 

	Exercise.  The Option evidenced hereby shall be exercisable in whole or in part (but only in multiples of 100 Shares unless such exercise is as to the remaining balance of this Option) on or after __________________, 20___ and on or before _________________, 20___, provided that the cumulative number of Common Shares as to which this Option may be exercised (except as provided in paragraph 1 of Article VI of this 2003 Plan) shall not exceed the following amounts:     

	
Cumulative Number of Shares 
	
Prior to Date (Not Inclusive of) 

	 	 
	 	 

The Option evidenced hereby shall be exercisable by the deliver to and receipt by the Company of (i) a written notice of election to exercise, in the form set forth in Attachment B hereto, specifying the number of shares to be purchased; (ii) accompanied by payment of the full purchase price thereof in case or certified check payable to the order of the Company, or by fully-paid and nonassessable Common Shares of the Company properly endorsed over to the Company, or by a combination thereof; and, (iii) by return of this Stock Option Agreement for endorsement of exercise by the Company on Schedule I hereof.  In the event fully paid and nonassessable Common Shares are submitted as whole or partial payment for Shares to be purchased hereunder, such Common Shares will be valued at their Fair Market Value (as defined in the 2003 Plan) on the date such Shares are received by the Company and applied to payment of the exercise price. 

	Transferability.  The Option evidenced hereby is NOT assignable or transferable by the Optionee other than by the Optionee's will, by the laws of descent and distribution, as provided in paragraph 9 of Article V of the 2003 Plan.  The Option shall be exercisable only by the Optionee during his lifetime. 

 

 

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VMH VIDEOMOVIEHOUSE.COM INC. 

	 
	 	
BY: 
	
______________________________  

	 	 	
Steven Gaspar, President  

	 
	
ATTEST: 

	 
	
_______________________________

	
Secretary 

Optionee hereby acknowledges receipt of a copy of the 2003 Plan, attached hereto and accepts this Option subject to each and every term and provision of such Plan.  Optionee hereby agrees to accept as binding,  conclusive and final, all decisions or interpretations of the Compensation Committee of the Board of Directors administering the 2003 Plan on any questions arising under such Plan.  Optionee recognizes that if Optionee's employment with the Company or any subsidiary thereof shall be terminated with cause, or by the Optionee, all of the Optionee's rights hereunder shall thereupon terminate; and that, pursuant to paragraph 10 of Article V of the 2003 Plan, this Option may not be exercised while there is outstanding to Optionee any unexercised Stock Option, granted to Optionee before the date of grant of this Option, to purchase Common Shares of the Company or any parent or subsidiary thereof.  

	
Dated: ________________________

	 
	 
	 	
___________________________________  

	 	
Optionee 

	 
	 	
___________________________________ 

	 	
Type or Print Name 

	 
	 	
___________________________________ 

	 	
Address 

	 
	 	
___________________________________ 

	 	
Social Security No.

 

 

 

 

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Attachment B 

Date:

Secretary, 

VMH VIDEOMOVIEHOUSE.COM INC. 

#14 - 34368 Manufacturer's Way

Abbotsford, British Columbia

Canada V2S 7M1 

Dear Sir: 

In accordance with paragraph 2 of the Nonqualified Stock Option Agreement evidencing the Option granted to me on _____________________ under the AMENDED AND RESTATED 2003 VMH VIDEOMOVIEHOUSE.COM INC. Nonqualified Stock Option Plan, I hereby elect to exercise this Option to the extent of __________________ Common Shares. 

Enclosed are (i) Certificate(s) No.(s) ____________________ representing fully-paid common shares of VMH VIDEOMOVIEHOUSE.COM INC. endorsed to the Company with signature guaranteed, and/or a certified check payable to the order of VMH VIDEOMOVIEHOUSE.COM INC. in the amount of $_______________ as the balance of the purchase price of $______________ for the Shares which I have elected to purchase and (ii) the original Stock Option Agreement for endorsement by the Company as to exercise on Schedule I thereof.  I acknowledge that the Common Shares (if any) submitted as part payment for the exercise price due hereunder will be valued by the Company at their Fair Market Value (as defined in the 2003 Plan) on the date this Option exercise is effected by the Company.  In the event I hereafter sell any Common Shares issued pursuant to this option exercise within one year from the date of exercise or within two years after the date of grant of this Option, I agree to notify the Company promptly of the amount of taxable compensation realized by me by reason of such sale for federal income tax purposes. 

When the certificate for Common Shares which I have elected to purchase has been issued, please deliver it to me, along with my endorsed Stock Option Agreement in the event there remains an unexercised balance of Shares under the Option, at the following address:

Include Optionee's address here.

	 	
__________________________________ 

	 	
Signature of Optionee 

	 
	 	
__________________________________ 

	 	
Type or Print Name 

 

 

12<PAGE>
                                                                   EXHIBIT 10.53

                                                    Contract No. _______________

[INTIRA LOGO]

                             NETSOURCING AGREEMENT

     THIS NETSOURCING AGREEMENT ("Agreement") is entered into as of September
29, 2000 (the "Effective Date") by and between INTIRA CORPORATION, a Delaware
corporation ("Intira"), and DOVEBID, INC., a Delaware corporation ("Customer").

                                  BACKGROUND

Intira is in the business of providing hosting and data management, Internet
access, and security services in connection with applications that can be made
available on Intira's private network and/or the Internet. Customer, on the
terms and conditions set forth in this Agreement, desires to obtain from Intira
the services set forth in the Statement of Work attached hereto. Intira, on the
terms and conditions set forth in this Agreement, has agreed to provide such
services.

Accordingly, Intira and Customer hereby agree as follows:

                            SECTION 1 - DEFINITIONS

The following defined terms and other capitalized terms defined herein and as
described in the exhibits attached to this Agreement will govern the
interpretation of this Agreement.

     "Customer Application" means the content, coding, text, applications, and
software that appear on, or are provided to Intira for which Intira will provide
the Netsourcing Services and which will be stored on the Servers (defined
below).

     "Delivery Date" means the date on which the Netsourcing Services are
successfully installed and made available to Customer. The parties acknowledge
that the Netsourcing Services to be provided hereunder shall be performed in two
(2) phases ("Phase 1" and "Phase 2"). The Delivery Date for the Netsourcing
Services for Phase 1 shall be that date on which the Netsourcing Services for
such Phase 1 are successfully installed and made available to Customer. The
Delivery Date for Phase 2 shall be the earlier of (a) the date on which the
Netsourcing Services for such Phase 2 are successfully installed and made
available to Customer, or (b) January 1, 200l.

     "Documentation" means any written, video or audio materials, including
training materials, provided by Intira to Customer for use in connection with
the Netsourcing Services.

     "Intira Network" means the telecommunications equipment, facilities and
bandwidth owned or controlled by Intira and dedicated to supporting the
Netsourcing Services.

     "Netsourcing Services" shall have the same meaning as is set forth in
Section 2.1 of this Agreement.

     "Server" means the server or servers identified by the SOW as intended for
use in connection with the Netsourcing Services to be provided hereunder.

     "Term" has the meaning ascribed to it by Section 5.1 hereof.

                       SECTION 2 - NETSOURCING SERVICES

     2.1 Services. Intira, during the Term of this Agreement, will provide the
data management services, security services, internet access services and other
services (collectively, the "Netsourcing Services") described in the Statement
of Work attached to this Agreement as Exhibit A (the "SOW").

     2.2 Service Level Agreement. The Netsourcing Services during the term will
meet the standards established by the Service Level Agreement "SLA" attached
hereto as Exhibit B. In the event Intira fails to satisfy the terms of the SLA
with respect to all or a portion of the Netsourcing Services, Intira will grant
Customer such rights and remedies as are specifically set forth in the SLA.

     2.3 Change Requests. Customer, at any time prior to or during the Term,
may request additions, deletions, or alterations (all hereinafter referred to as
a "Change") to the Statement of Work. Within a reasonable time after a request
for a Change, Intira shall submit a proposal to Customer that includes any
changes in Intira's prices or in the performance schedule resulting from the
Change. Customer, within ten (10) days of receipt of the proposal, shall either
(i) accept the proposal with a written amendment directing Intira to perform the
Change or (ii) advise Intira not to perform the Change in which event Intira
shall proceed under the SOW as previously written. No such Change shall be
effective unless made pursuant to a written amendment or other writing signed by
both parties.

                     SECTION 3 - CUSTOMER RESPONSIBILITIES

3.1 Except as expressly provided by the SOW, Customer shall be solely
responsible for:

     (a) Managing the Customer Application and all file uploads, downloads, and
transfers and other activities with respect to information on the Server
supplied or generated by Customer or Customer's customers or end users.

     (b) Providing Customer's customers and end users all services associated
with the Customer Application, including without limitation support, order entry
help desk, sales, marketing, pricing and service plans, billing and collections
(including without limitation, protection against credit card fraud and any
other type of credit fraud).

     (c) Installing, testing, operating and maintaining the interconnection
equipment or computer software programs provided by Customer or any user, other
than the equipment specifically provided by Intira under this Agreement.

     (d) Adopting and implementing such security measures as Customer deems
appropriate with respect to all facilities other than the Intira Network

     (e) Performing credit card verification, user pre-screening,
identification, login access and security procedures, address verification and
identification, and merchant bankcard transaction reconciliation.

     (f) Complying with all laws and regulations and Intira's current policies
and guidelines regarding Internet and network usage (which can be found on
Intira's website, www.intira.com, or which Intira will provide on request).
Intira may change its policies and guidelines by notice provided in accordance
with the terms of this Agreement.

Intira Proprietary and Confidential
Page 1 of 10
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                                                     Contract No._______________

         (g) Such additional activities and responsibilities as the SOW may
assign to Customer.

     3.2 Project Manager. Customer shall appoint a Project Manager to serve as
its primary representative with respect to the Statement or Work. Customer will
make the Project Manager reasonably available to work and consult with Intira to
pursue the objectives of this Agreement. Customer may change its Project Manager
by written notice provided in accordance with this Agreement.

                              SECTION 4 - PAYMENT

     4.1 Fees. Subject to the terms of this Agreement, Customer agrees to pay
Intira all Installation Fees, Monthly Service Fees and other fees and charges as
set forth in Exhibit "C" to this Agreement on the schedule established by
Exhibit "C" or, in the absence of such a schedule, within thirty (30) days of
Intira's invoice therefor. The parties acknowledge and agree that the fees set
forth on Exhibit "C" have been agreed upon by the parties solely with respect to
the specific elements of Customer's Netsourcing solution, the details of which
are attached hereto and incorporated herein as Exhibit "D" ("Configuration"). In
the event that, after the Effective Date hereof, Customer requests or otherwise
effectuates a material change to the Configuration, or in the event such a
material change to the Configuration becomes necessary as a result of final
engineering review by Intira and/or Customer, Intira reserves the right,
reasonably and in good faith, to amend the fees set forth on Exhibit "C" by
providing written notice to Customer of any change with respect thereto, in
order to take into account any such material change(s) to the Configuration;
PROVIDED, HOWEVER, Intira will not implement any change that would cause an
increase to the fees and charges hereunder without Customer's reasonable
consent.

     4.2 Taxes. The fees established by Exhibit C are exclusive of all sales,
use, value-added, and other taxes (excluding income taxes), customs and duties
(collectively, "Taxes") arising out of this Agreement or the Netsourcing
Services provided hereunder. Customer will pay all such Taxes or, if Intira is
required to pay any of the same, will reimburse Intira for the same.

     4.3 Late Charges. If Customer fails to pay any fees or expenses within
thirty (30) days after the date such payment was due, Intira may, at its option,
charge Customer a late fee at the rate of 1.5% per month or part thereof that
the payment remains delinquent (but in no event more than the maximum rate
allowed by applicable law).

                 SECTION 5 - TERM, EXPIRATION, AND TERMINATION

     5.1 Term. The term of this Agreement (the "Term") will commence on the
Effective Date and, unless otherwise terminated as provided herein, will
continue for the number of months following the Delivery Date specified by
Exhibit "C" hereto.

     5.2 Termination.

         (a) Termination for Cause. Either party may terminate this Agreement by
written notice if the other party commits a material breach of this Agreement,
and such material breach continues for a period of ten (10) days (if the breach
is a failure to pay any amounts due under this Agreement) or thirty (30) days
(in all other cases) following the nonbreaching party's notice thereof. Intira,
if it reasonably believes that Customer's breach threatens immediate or
irreparable harm to Intira or any other Intira customer, will be entitled to
suspend Netsourcing, Services to Customer during the notice period.
Notwithstanding anything to the contrary in this Agreement, Customer shall have
the right to terminate this Agreement pursuant to this paragraph, upon written
notice to Intira, in the event Customer Application is unavailable for two (2)
periods of four (4) continuous hours apiece within a sixty (60) day period;
such unavailability shall be determined in the same manner as unavailability is
determined for purposes of applying the Application Access Availability
Commitment set forth in the SLA.

     (b) Termination for Convenience. Customer may terminate this Agreement for
Convenience upon thirty (30) days prior written notice to Intira, and this
Agreement shall actually become terminated after expiration of such thirty-day
period (unless the parties agree otherwise in writing). In the event Customer so
terminates this Agreement, Customer shall pay to Intira a Cancellation Fee equal
to the sum of (a) fifty percent (50%) of the Monthly Service Fee as of the date
of such termination (without application of any discount or deferrals
hereunder), multiplied by the number of months remaining in the Term from the
date of such termination through the eighteenth (18th) full month of the
Netsourcing Services, and (b) twenty-five percent (25%) of the Monthly Service
Fee as of the date of such termination (without application of any discount or
deferrals hereunder), multiplied by the number of months remaining in the Term
from the end of the eighteenth (18th) full month of Netsourcing Services through
the end of the Term. The parties acknowledge that the foregoing Cancellation Fee
shall only apply to charges and fees solely as are specifically set forth on
Exhibit "C", in the event any amounts become charged pursuant to any Service
Change Order or amendment hereto after the date upon which the Netsourcing
Services have commenced, and in the event after implementation of the Change(s)
giving rise to such additional charges and fees, Customer terminates this
Agreement, then, solely as it relates to the additional fees charged
thereunder, Customer shall pay an additional Cancellation Fee equal to the sum
of (a) fifty percent (50%) of the increase to the Monthly Service Fee charged
under such Service Change Order or amendment multiplied by the number of months
remaining in the first eighteen months that the services in connection with the
Change are to be provided, and (b) twenty-five percent (25%) of the increase to
the Monthly Service fee charged under such Service Change Order or amendment
multiplied by the number of months in excess thereof and extending through the
remainder of the Term. In addition to any Cancellation Fee or additional
Cancellation Fee hereunder, Customer shall be responsible for all fees and
obligations accruing up to the date upon which this Agreement is actually
terminated.

     (c) Effect of Termination. Upon termination of this Agreement, (i) Intira
will be entitled to suspend or terminate the Netsourcing Services, including
restricting Customer's and, its end-users' access to the Server, and (ii)
provided Customer has paid all fees and other charges accruing under this
Agreement, Intira will grant Customer at least ten (10) days to remove Customer
data stored on the Server. Neither the expiration nor termination of this
Agreement will excuse Customer from paying Intira any and all amounts, due and
owing under this Agreement. Sections 1 5.2(b), 6, 7, 8, and 9 will survive the
expiration or termination of this Agreement.

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                                                  Contract No. _________________

                        SECTION 6 - REPRESENTATIONS AND
                                  WARRANTIES

     6.1 By Intira. Intira represents and warrants that (i) the Netsourcing
Services will be of professional and workmanlike quality and performed in a
professional and workmanlike manner, (ii) all necessary corporate action has
been taken by Intira to authorize the execution, delivery and performance of
this Agreement and this Agreement is the valid and binding obligation of Intira,
enforceable against Intira in accordance with its terms, (iii) subject to the
provisions of Section 6.2 and to the best of Intira's knowledge, no copyright,
patent, trade secret or other intellectual property rights of any third party
will be infringed by Intira's performance of the Netsourcing Services, (iv) to
the best of its knowledge and belief, the Netsourcing Services comply with all
laws, rules, legislation, and regulations of applicable jurisdictions; and (v)
Intira has made and will make commercially reasonable efforts to ensure that the
Server shall be free from viruses, worms, trojan horses and other malicious
code.

     6.2 By Customer. Customer represents and warrants that (i) all necessary
corporate action has been taken by Customer to authorize the execution, delivery
and performance of this Agreement and this Agreement is the valid and binding
obligation of Customer, enforceable against Customer in accordance with its
terms, (ii) Customer has sufficient right, title and interest in and to the
Customer Application to permit Customer to carry out its obligations pursuant to
this Agreement; (iii) to the best of Customer's knowledge and belief, Customer
Application does not infringe, and will not cause the Netsourcing Services to
infringe, any patent, copyright, trade secret, trademark, or other intellectual
property right of any third party or constitute a defamation, invasion of
privacy, or violate any right of publicity or other third-party right; (iv) to
the best of its knowledge and belief, Customer Application complies with all
law, rules, legislation, and regulations of applicable jurisdictions; (v)
Customer Application is not, and will not cause the Netsourcing Services to be,
illegal, obscene, offensive or immoral; (vi) Customer is in compliance with and
will abide by all federal, state and local laws, rules, regulations and
ordinances, specifically including but not limited to the Communications Decency
Act of 1996, as amended, and Customer will not transmit communications described
in 47 U.S.C. Section 223(b) and will restrict such access to Customer
Application accordingly; and (vii) Customer has made and will make commercially
reasonable efforts to ensure that the Customer Application shall be free from
viruses, worms, trojan horses and other malicious code.

     6.3 Exclusion of Warranties and Limitation of Liability.

         (a) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY
MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WRITTEN OR ORAL.
INTIRA DISCLAIMS ALL AND CUSTOMER RECEIVES NO FURTHER WARRANTIES, INCLUDING ANY
IMPLIED WARRANTY OF MERCHANTABILITY OR IMPLIED WARRANTY OF FITNESS FOR A
PARTICULAR PURPOSE OR ANY WARRANTY THAT THE NETSOURCING SERVICES WILL BE
UNINTERRUPTED OR ERROR-FREE. ALL WARRANTIES WITH RESPECT TO THE NETSOURCING
SERVICES ARE STRICTLY LIMITED TO THOSE SET FORTH IN THIS AGREEMENT.

         (b) (1) IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR
ANY CONSEQUENTIAL, INDIRECT, SPECIAL, INCIDENTAL DAMAGES OR ANY LOSS OF PROFIT,
REVENUE DATA OR GOODWILL WHETHER INCURRED OR SUFFERED AS A RESULT OF
UNAVAILABILITY OF THE NETSOURCING SERVICES OR THE CUSTOMER APPLICATION (AS
APPLICABLE), PERFORMANCE, NONPERFORMANCE NEGLIGENCE, TERMINATION, BREACH OR
ACTION OR INACTION UNDER THIS AGREEMENT (IN EACH CASE OTHER THAN TO THE EXTENT
INCURRED BY INTIRA AS A RESULT OF CUSTOMER'S FAILURE TO PAY FEES AND CHARGES
WHEN DUE), EVEN IF THE OTHER PARTY ADVISES THE FIRST PARTY OF THE POSSIBILITY OF
SUCH LOSS OR DAMAGE.

             (2) EXCEPT WITH RESPECT TO CUSTOMER'S OBLIGATION TO PAY ANY FEES
HEREUNDER NEITHER PARTY'S TOTAL LIABILITY FOR DAMAGES IN CONNECTION WITH THIS
AGREEMENT, WHETHER IN CONTRACT, TORT, OR OTHERWISE, SHALL EXCEED THE TOTAL
AMOUNT RECEIVED BY INTIRA UNDER THIS AGREEMENT FOR THE SIX-MONTH PERIOD
IMMEDIATELY PRECEDING THE DATE UPON WHICH SUCH LIABILITY ARISES.

         (c) NOTHING IN THIS SECTION 6.1 SHALL SERVE TO DEPRIVE CUSTOMER OF THE
REMEDIES (OR RELIEVE INTIRA OF THE RESPONSIBILITIES) IMPOSED BY THE SERVICE
LEVEL AGREEMENT ("SLA") ATTACHED HERETO AS EXHIBIT "B". CUSTOMER'S REMEDY FOR
INTIRA'S FAILURE OR INABILITY TO SATISFY ITS SLA SHALL BE LIMITED TO THE
REMEDIES SET FORTH IN SUCH SLA, AND ANY OTHER RIGHTS OR REMEDIES HEREUNDER SHALL
NOT BE CUMULATIVE TO CUSTOMER'S RIGHTS AND REMEDIES THEREUNDER, PROVIDED, THAT
NOTHING IN THIS SECTION OR THE SLA SHALL PRECLUDE CUSTOMER FROM TERMINATING THIS
AGREEMENT FOR CAUSE PURSUANT TO SECTION 5.2(a) IF INTIRA FAILS CONSISTENTLY AND
ROUTINELY TO MEET ANY ONE OF THE STANDARDS ESTABLISHED BY THE SLA.

        SECTION 7 - INDEMNIFICATION

     7.1 Indemnification by Customer. Customer will defend indemnify, and hold
Intira harmless from and against all claims by third parties, and all associated
liabilities, costs (including reasonable attorneys' fees) and/or damages to or
suffered or incurred by Intira arising out of any material breach by Customer of
the warranties established by Section 6.2 hereof. Further, Customer shall
indemnify Intira for any loss, damage costs, liability, and expenses, including
reasonable attorneys fees, sustained in connection with, and Customer shall
defend any suit and dispose of any claims or other proceedings based on, an
allegation the Customer Application or any information supplied by Customer or
any of Customer's customers hereunder violates or infringes on any patent
copyright, trademark, service mark, or other intellectual property right(s),
whether such right(s) be registered or unregistered.

     7.2 Indemnification by Intira. Intira will defend, indemnify and hold
Customer harmless from and against all third party claims, and all related
liabilities, costs (including reasonable attorneys' fees) and/or damages to or
suffered or incurred by Customer arising out of any material breach by Intira of
the warranties established by Section 6.1 hereof. Further, Intira

Intira Proprietary and Confidential
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<PAGE>

                                                Contract No. ___________________

shall indemnify Customer for any loss, damage, costs, liability, and expenses,
including reasonable attorneys' fees, sustained in connection with, and Intira
shall defend any suit and dispose of any claims or other proceedings based on,
an allegation that any product or service supplied solely by Intira or at
Intira's request (other than by Customer) hereunder violates or infringes on any
patent, copyright, trademark, service mark, or other intellectual property
right(s), whether such right(s) be registered or unregistered.

                     SECTION 8 - OWNERSHIP; CONFIDENTIALITY

     8.1 Intira Technology. Notwithstanding any other provision of this
Agreement to the contrary, Intira shall retain all right and title to and in any
software (excluding Customer provided software and Customer Application),
methodology, physical security system, access control system, databases,
computer programs, hardware, audio/visual equipment, tools, general utility
programs, libraries, discoveries, inventions, techniques, writings, know-how,
designs, or other information either owned by Intira prior to the date hereof,
acquired by Intira during the term of this Agreement, developed by Intira or at
Intira's request during the term of this Agreement or specifically created by
Intira or at Intira's request for the purpose of performing the Netsourcing
Services (collectively, the "Intira Technology"). Any Intira Technology
developed during the course of this Agreement will not be work made for hire.

     8.2 Customer Technology. Notwithstanding any other provision of this
Agreement to the contrary, Customer shall retain all right and title to and in
any Customer Application, methodology, physical security system, access control
system, databases, computer programs, hardware, audio/visual equipment, tools,
general utility programs, libraries, discoveries, inventions, techniques,
writings, know-how, designs, or other information either owned by Customer prior
to the date hereof, acquired during the Term, or developed solely by Customer
during the Term.

     8.3 Confidentiality. The Confidentiality Agreement or Nondisclosure
Agreement previously executed by the parties shall establish each party's
obligations with respect to the information received from the other party in the
course of performing or exercising the rights granted pursuant to this
Agreement.

                              SECTION 9 - GENERAL

     9.1 Force Majeure. Intira shall not be liable for any delay or failure to
carry out the Netsourcing Services provided hereunder if such delay or failure
is due to any cause beyond the control of Intira, including without limitation,
restrictions of law, regulations, order or other governmental directives, labor
disputes, acts of God, acts of third-party vendors, carriers or suppliers,
third-party mechanical or other equipment breakdowns, fire, explosions, fiber
optic cable cuts, storm or other similar events. If any force majeure event
shall prevent a party from performing its obligations pursuant to this Agreement
for a period of thirty (30) days or more, the other party shall be entitled to
terminate this Agreement for convenience by written notice.

     9.2 Security. CUSTOMER ACKNOWLEDGES AND AGREES THAT (1) ANY SECURITY
SERVICES, THAT INTIRA HAS AGREED TO PERFORM UNDER THE STATEMENT OF WORK
CONSTITUTE ONLY ONE COMPONENT OF CUSTOMER'S OVERALL SECURITY PROGRAM AND ARE NOT
A COMPREHENSIVE SECURITY SOLUTION; AND (2) THERE IS NO GUARANTEE THAT THE
SECURITY SERVICES INTIRA HAS AGREED TO PERFORM UNDER THE STATEMENT OF WORK WILL
BE ERROR FREE OR THAT NETWORKS OR SYSTEMS CONNECTED TO THE NETSOURCING SERVICES
WILL BE SECURE AND (3) THERE IS NO GUARANTEE THAT THE COMMUNICATIONS SENT BY
MEANS OF THE CUSTOMER'S FIREWALL(S) WILL BE PRIVATE.

     9.3 Arbitration. All disputes arising out of or related to this Agreement
shall be determined and resolved by arbitration in San Francisco, California in
accordance with the rules of the American Arbitration Association ("AAA"). The
arbitrators shall be appointed in accordance with the then prevailing AAA rules.
Any award rendered by the arbitrators shall be final and binding upon the
parties. Neither party shall have the right to further appeal or redress the
matters arbitrated except for the purpose of obtaining the judgment rendered by
the arbitrators. Judgment upon any arbitration award may be entered and enforced
in any court of competent jurisdiction. Notwithstanding anything to the
contrary, Intira may, at its discretion, seek judicial relief in conjunction
with collection of any amounts due hereunder from Customer. This Section shall
be severable from the other provisions of this Agreement and shall survive and
not be merged into any judgment hereunder.

     9.4 Miscellaneous Provisions. (a) This Agreement and each term hereof may
only be amended in a writing signed by all the parties. (b) No failure or delay
on the part of either party in exercising any right hereunder and no course of
dealing between the parties shall operate as a waiver of any provision hereof.
(c) In conjunction with this Agreement, each party shall at all times comply
with all applicable federal, state, and local statutes, ordinances, regulations
and orders of any commission or other government body. (d) This Agreement shall
be governed by the laws of the State of California. (e) This Agreement and its
exhibits, attachments, and documents incorporated herein comprise the complete
and exclusive statement of the agreement of the parties concerning the subject
matter hereof, and supersede all previous statements, representations, and
agreements concerning the subject matter hereof. (f) If any part of this
Agreement shall be invalid or unenforceable under applicable law, said part
shall be ineffective only to the extent of such invalidity, without in any way
affecting the remaining parts of said provision or the remaining provisions of
this Agreement, and the Customer and Intira agree to negotiate with respect to
any such invalid or unenforceable part to the extent necessary to render such
part valid and enforceable. (g) Customer will be responsible for all costs of
collection reasonably incurred by Intira, including without limitation,
litigation costs, reasonable attorneys' fees and court costs, resulting from
Customer's failure to pay any amounts when due pursuant to this Agreement.

     9.5 Counterparts; Fax Signatures. This Agreement may be executed in
multiple counterparts and delivered by facsimile transmission, each of which
shall be deemed an original but all of which shall constitute one and the same
instrument.

     9.6 Assignment. Neither party shall assign this Agreement or any rights
hereunder without the prior written consent of the other party. Notwithstanding
the foregoing neither party shall require the other party's consent for an
assignment to a purchaser of substantially all of the assignor's

Intira Proprietary and Confidential
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<PAGE>

                                               Contract No. ____________________

capital stock or substantially all of the assets to which this Agreement
relates.

     9.7 Affiliates. Intira shall be entitled to perform any obligation or
exercise any right established by this Agreement through one or more Intira
affiliates, provided that Intira remains liable for its full performance under
this Agreement.

     9.8 Publicity: Trade Reference. Intira may include Customer's name and logo
in Intira's customer list and may identify Customer by name and logo as its
Customer on its Internet site; provided, however, Intira will obtain Customer's
prior written approval of any other written materials that purport to describe
the parties' agreement or the nature of the relationship provided hereunder.
Following execution of this Agreement, the parties hereto agree to issue a joint
press release announcing the relationship established between the parties
hereunder. Further, upon execution of this Agreement Customer agrees to serve as
a "reference account" and upon reasonable notice from Intira, shall serve as a
trade reference to potential customers, vendors, investors, or other third
parties designated by Intira; provided, however, to the extent practicable,
Intira shall provide Customer with reasonable prior notice of its need to have
Customer serve as a trade reference such notice to include the identity and
basic information on the third party for whom Customer will serve as a trade
reference.

     9.9 Notices. All notices given under this Agreement must be in writing and
will be deemed effective when delivered in person or by a reputable next-day
courier, by facsimile or three (3) business days after being mailed via
certified mail return receipt requested, to the appropriate address shown below.

            THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION

                     WHICH MAY BE ENFORCED BY THE PARTIES

IN WITNESS WHEREOF, the Parties set their hands to this Netsourcing Agreement
the date and year first above written

INTIRA CORPORATION:

By:      /s/ Bernie Schneider
    ---------------------------------

Name:        Bernie Schneider
      -------------------------------

Title:        President/CEO
       ------------------------------

5667 Gibraltar Drive
Pleasanton, CA 94588
ATTN: Controller
  cc: General Counsel
Telephone: 925-924-8000
Fax: 925-924-8200

DOVEBID, INC.

By:        /s/ Jeffrey M. Crowe
    ---------------------------------

Name:        Jeffrey M. Crowe
      -------------------------------

Title:       President & CEO
       ------------------------------

1241 East Hillside Blvd.
Foster City, CA 94404
ATTN: Chief Technology Officer

Telephone:
           --------------------------
Fax:
     --------------------------------

Intira Proprietary and Confidential
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<PAGE>

                                              Contract No. _____________________

                                  EXHIBIT "A"

                               STATEMENT OF WORK

Intira Proprietary and Confidential
Page 6 of 10
<PAGE>

                                              Contract No.______________________

                                  EXHIBIT "B"

                            SERVICE LEVEL AGREEMENT

                  SEE ATTACHED

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<PAGE>

                               Intira Corporation

                      NETSOURCING SERVICE LEVEL AGREEMENT

                            CUSTOMER: DOVEBID, INC,
                                      -------------

Intira is committed to providing a scalable and highly available Netsourcing
solution for CUSTOMER's mission-critical e-business application, which is why
Intira offers the following quality of service commitments:

APPLICATION ACCESS AVAILABILITY COMMITMENT

     Intira commits to have the CUSTOMER's Netsourced application accessible, to
     the point where CUSTOMER's application leaves Intira's network, for 99.5%
     of the time within a given calendar month. Intira will credit CUSTOMER's
     account if this Application Access Availability Commitment is not met, as
     set forth below. Intira will calculate the time within a given calendar
     month that the CUSTOMER's application is inaccessible to users of
     CUSTOMER's application due to the Intira supplied Netsourcing
     infrastructure not functioning properly. Such inaccessibility shall consist
     of the number of minutes that CUSTOMER's application was not accessible by
     reason of all or a part of the Intira-provided infrastructure not
     functioning properly. For each cumulative 15-minute period in excess of the
     99.5% average that CUSTOMER's application is not accessible in any calendar
     month, CUSTOMER's account shall be credited for one day (1/30th) of the
     Monthly Service Fee (as defined in Netsourcing Agreement between the
     parties, dated September 29, 2000).

REPORTING COMMITMENT:

     Intira commits to notify CUSTOMER within 15 minutes after Intira's
     determination that all or a part of CUSTOMER's Intira-provided Netsourcing
     services are unavailable, to the extent such service is "up" or "down".
     This Reporting Commitment is applicable only if CUSTOMER provides all the
     required contact information to Intira; CUSTOMER is solely responsible for
     providing Intira accurate and current contact information for CUSTOMER's
     designated points of contact. For each additional 15-minute period that
     Intira fails to notify CUSTOMER, CUSTOMER's account shall be credited for
     one day (1/30th) of the Monthly Service Fee (as defined in Netsourcing
     Agreement between the parties, dated September 29, 2000).

Intira Corporation Netsourcing Service Level Agreement               Page 1 of 3
Customer: DoveBid, Inc.                                            Rev 2 8-01-99

<PAGE>

MAXIMUM CREDIT AVAILABLE:

     Notwithstanding anything to the contrary, the aggregate amount of credits
     to be provided under this SLA for a given month or reporting period (as the
     case may be) month, shall not exceed the Monthly Service Fee (taking into
     account any applicable discounts and deferrals) actually charged by Intira
     for such month or reporting period to provide the Netsourcing Services.
     This SLA sets forth Customer's sole remedies for any claim relating to the
     Netsourcing Service or the Intira Network, except as otherwise specifically
     agreed to in writing by an authorized officer of Intira. No credits will be
     given if the Intira's failure to meet the applicable commitment is
     attributable to or regarding: 1) maintenance performed during Intira's
     scheduled maintenance window; 2) Any CUSTOMER-owned or -ordered telephone
     company circuits; 3) Any Intira-ordered telephone company circuits outside
     the contiguous U.S.; 4) A fault in CUSTOMER's applications, equipment, or
     facilities, or CUSTOMER's failure to perform any of its obligations
     hereunder or under the Netsourcing Agreement; 5) Acts or omissions of
     CUSTOMER, or of any user of the service authorized by CUSTOMER; 6) Reasons
     of Force Majeure (as defined in the applicable Netsourcing Agreement); or
     7) Any Internet access or related problems beyond the demarcation point of
     Intira's peering partners. Further, in the event CUSTOMER has been granted
     unrestricted access to its production environment (including but not
     limited to "root access" in connection with UNIX environments or
     "administration rights" in connection with Windows NT environments) this
     SLA, and the commitments hereunder, shall cease and be of no force and
     effect during such period that CUSTOMER retains such unrestricted access,
     and for a period of not less than seventy-two (72) hours after CUSTOMER
     ceases to have such unrestricted access.

Intira Corporation Netsourcing Service Level Agreement               Page 2 of 3
Customer: DoveBid, Inc.                                            Rev 2 8-01-00
<PAGE>

CREDIT CLAIM PROCEDURE:

     Intira will monitor the accessibility of Customer Application (as defined
     herein) monthly and report to CUSTOMER on such accessibility periodically.
     Any dispute of credits issued under this SLA must be submitted y CUSTOMER
     to Intira within 90 days of the end of the month in which the disputed
     credits are attributable. Intira will acknowledge all claims within 10
     business days and will review all claims within 30 business days. CUSTOMER
     will be informed by electronic mail whether any adjustment to the credit
     will be given. In the event CUSTOMER disagrees with Intira's adjustment,
     CUSTOMER shall notify Intira of such disagreement in writing within 30 days
     of receipt of Intira's adjustment. CUSTOMER and Intira shall use best
     efforts to resolve the discrepancy in a mutually agreeable fashion. In the
     event that the discrepancy is not resolved within 30 days after such
     notice, the dispute shall be submitted to arbitration in accordance with
     Section 9.3 of the Netsourcing Agreement between the parties, dated
     September 29, 2000.

EFFECTIVE DATE:

     This SLA is effective as of 9-29-2000 ("Effective Date") and shall only
     become applicable to the Netsourcing services upon the later of (a)
     completion of the "stabilization period," as such term is defined in the
     Statement of Work, or (b) ninety (90) days from the Effective Date.

Intira Corporation Netsourcing Service Level Agreement               Page 3 of 3
Customer: DoveBid, Inc.                                            Rev 2 8-01-00
<PAGE>

                                                Contract No. ___________________

                                  EXHIBIT "C"
                                    PRICING

Customer:  DoveBid, Inc.
Billing Address: 1241 East Hillside Blvd., Foster City, CA 94404,
ATTN: Accounts Payable

The Term of the Agreement commences on the Effective Date and expires at the end
of Intira's billing cycle containing the date and months following the Delivery
Date for the Netsourcing Services in connection with Phase 1.

The fees and charges established by this Exhibit C will apply during the Term.

Except as provided below, all fees and charges will be due and payable within
thirty (30) days of Intira's invoice therefor, Intira shall submit the first
invoice to Customer for Monthly Service Fees beginning in the Intira billing
cycle after the Delivery Date for Phase

Installation Fee: Customer shall pay the sum of Thirty Thousand Two Hundred
Forty Dollars ($30,240) as a one-time Installation Fee for the equipment,
services, and circuits supplied under this Agreement in connection with the
Netsourcing Services for Phase 1. In addition thereto, Customer shall pay the
sum of Six Thousand Three Hundred Twenty Dollars ($6,320) as a one-time
Installation Fee for the equipment, services, and circuits supplied under this
Agreement in connection with the Netsourcing Services for Phase 2. The
Installation Fee for Phase 1 shall become due and payable upon execution of this
Agreement. The Installation Fee for Phase 2 shall become due and payable on the
Delivery Date of the Netsourcing Services for Phase 2. Solely with respect to
the Netsourcing Services for Phase 1, Intira commits to have installation and
activation of such equipment, services, and circuits substantially complete
within five (5) weeks of receipt of the necessary equipment and software to
complete such installation process. If Intira fails to so complete such
installation within the aforementioned time period, Intira shall credit an
amount equal to the Installation Fee actually paid by Customer for Phase 1
against any amounts that may otherwise become due from Customer under this
Agreement.

Professional Services and Consulting Fees: Customer shall pay the sum of Ten
Thousand Dollars ($10,000) as a one-time Professional Services Fee for
developing and delivering to Customer the SOW. Such amount shall become due and
payable on the date Customer executes this Agreement. Upon full payment of such
amount, such Professional Services Fee shall be credited against the Monthly
Service Fees that become due and payable for each month of the Term beginning in
the thirteenth (13th) full month of the Netsourcing Services and extending
through the Term, in equal credit installments of $833.33 per month.
Notwithstanding anything herein to the contrary, in the event this Agreement
becomes terminated for any reason prior to the thirteenth (13th) full month of
the Netsourcing Services, or in the event this Agreement becomes terminated
prior to expiration of the Term, Customer shall not be entitled to payment or
compensation for any uncredited amounts that would have otherwise been credited,
absent such termination, pursuant to the foregoing provision. In addition to the
foregoing, Customer shall pay to Intira the sum of Three Thousand Five Hundred
Dollars ($3,500) per day as a Consulting Fee for needs assessment, engineering,
and other professional consulting services provided by Intira to Customer
outside the scope of designing and implementing the SOW.

Monthly Service Fee: Each month during the Term, Customer shall pay a Monthly
Service Fee equal to Thirty Thousand Dollars ($30,000) for the Netsourcing
Services for Phase 1. In addition thereto, Customer shall pay an additional
Monthly Services Fee equal to Nine Thousand Two Hundred Dollars ($9,200) per
month for the Netsourcing Services for Phase 2. For each such Phase, such amount
reflects the sum of (a) the Monthly Data Management Services Fee, (b) the
Monthly Internet Access Services Fee, (c) the Monthly Security Services Fee, and
(d) any Miscellaneous Monthly Fees (each of which is defined below). In no event
shall the Monthly Service Fee for Phases 1 and 2 together be less than $39,200.

     A.  MONTHLY DATA MANAGEMENT SERVICES FEE. Each month, for the hosting and
data management services provided under this Agreement, Customer shall pay the
following as a Monthly Data Management Services Fee:

<TABLE>
<CAPTION>
                                                           Phase 1:                     Phase 2:
<S>                                                <C>                           <C>
Server Administration Services:                      $        886.00              $          954.00

Server Provisioning Services:                        $      4,889.00              $        3,724.00

Enhanced Reporting and Monitoring Services:          $        664.00              $          124.00

Operational Database Administration Services:        $        590.00              $          110.00

</TABLE>

Intira Proprietary and Confidential
Page 8 of 10
<PAGE>

                                                  Contract No. _________________

<TABLE>
<S>                                                <C>                   <C>
Load Balancing, Failover Services:                   $       1,107.00       $        207.00

Automated Tape Backup Services (21 Tapes):           $       1,937.00       $        362.00

Disk (online) Storage (50 GB)                        $         923.00       $        172.00
                                                     ----------------       ---------------
Monthly Data Management Services Fee:                $      10,996.00       $      5,653.00

</TABLE>

In no event shall the Monthly Data Management Services Fee be less than
$16,649.00 for Phases 1 and 2 together.

     B. MONTHLY INTERNET ACCESS SERVICES FEE. Customer shall pay a Monthly
Internet Access Services Fee for the Internet Access Services and other
connectivity services provided hereunder.

<TABLE>
<CAPTION>
                                               Phase 1:              Phase 2:
                                            -------------          -------------
<S>                                        <C>                    <C>
Data Center Connectivity Services:           $   6,126.00           $   1,144.00

Private Network Connectivity Services:       $     332.00           $      62.00
                                            -------------          -------------
Monthly Internet Access Service Fee:         $   6,458.00           $   1,206.00
</TABLE>

Notwithstanding anything herein to the contrary, in no event shall the Monthly
Internet Access Services Fee be less than $6.458.00 for Phase 1 and $7,664.00
for both Phases 1 and 2. The Private Network Connectivity Services Fee set forth
above represents the fee to be charged by Intira for Intira's services in
connection with accommodating Customer's provisioning of its own (1) T1 circuit;
Intira shall not be responsible for provisioning such circuit absent further
agreement by the parties in writing. Customer shall be solely responsible for
its own local loops, the cost of which is not included in this pricing exhibit.

     C. MONTHLY SECURITY SERVICES FEE. For the Security Services provided under
this Agreement, Intira shall charge Customer a Monthly Security Services Fee
equal to $12,546.00 for Phase 1. In addition thereto, Intira shall charge
Customer an additional Monthly Security Services Fee equal to $2,341.00 for
Phase 2. In no event shall the Monthly Security Services Fee for Phases 1 and 2
together be less than $14,887.00.

     D. MISCELLANEOUS MONTHLY FEES. In addition to the monthly fees set forth
above, Customer shall pay Miscellaneous Monthly Fees in the amount of
$____N/A______, such fees representing _______________N/A__________________.

Additional Fees. The parties acknowledge that the fee charged for Data Center
Connectivity Services, incorporated into the Monthly Internet Access Services
Fee above, includes only those fees for Two (2) 100bT Ethernet Connection(s) to
the data center and covering only the first 3 Mbps of usage for each such
Ethernet Connection. For usage in excess of such 3 Mbps on each such Ethernet
Connection, based upon 95th percentile of actual usage, used by customer in a
given month, Intira shall charge an Additional Fee of $1,200.00 for each
additional Mbps used. Such Additional Fee shall be in addition to any other fees
or charges under this Agreement, and shall be billed in conjunction with the
Monthly Service Fee above.

Intira Proprietary and Confidential
Page 9 of 10
<PAGE>

                                                Contract No. ___________________

                                  EXHIBIT "D"
                                 CONFIGURATION

See attached Visio diagrams for Phases 1 and 2.

Intira Proprietary and Confidential
Page 10 of 10
<PAGE>

                                  [GRAPHICS]
<PAGE>

                                  [GRAPHICS]

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