Document:

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                                                                   EXHIBIT 10.17

                              EMPLOYMENT AGREEMENT

          This AGREEMENT is entered into as of April 27, 2000, by and between
Daryl Horn ("Executive") and iAsiaWorks, Inc., a California corporation (the
"Company").

          1.  Duties and Scope of Employment.
              ------------------------------

                (a)  Position and Duties.  For the term of his employment under
                     -------------------
this Agreement, the Company agrees to employ Executive in the position of Vice
President of Sales. Executive shall report to the Company's U.S. President, and
his position will be based at the Company's corporate headquarters in San Mateo,
California. Executive's duties will include: developing, hiring and training
employees of a nationwide U.S. sales organization focused on selling, hosting,
colocation and managed services into Asia Pacific markets.

                (b)  Obligations to the Company.  During the term of his
                     --------------------------
employment, Executive shall devote his full business efforts and time to the
Company; provided, however, that this shall not preclude Executive from serving
as a member of the board of directors of up to three other companies to the
extent such other companies do not compete with the Company and to the extent
such service does not materially impact the ability of Executive to fulfill his
obligations to the Company. Executive shall comply with the Company's policies
and rules, as they may be in effect from time to time during the term of his
employment.

                (c)  No Conflicting Obligations.  Executive represents and
                     --------------------------
warrants to the Company that he is under no obligations or commitments, whether
contractual or otherwise, that are inconsistent with his obligations under this
Agreement. Executive represents and warrants that he will not use or disclose,
in connection with his employment by the Company, any trade secrets or other
proprietary information or intellectual property in which Executive or any other
person has any right, title or interest and that his employment by the Company
as contemplated by this Agreement will not infringe or violate the rights of any
other person or entity. Executive represents and warrants to the Company that he
has returned all property and confidential information belonging to any prior
employers.

                (d)  Commencement Date.   The employment of Executive by the
                     -----------------
Company shall be governed by this agreement as of the date first written above
(the "Effective Date").

                (e)  Term of Employment.
                     ------------------

                     (i) Basic Rule.  The Company agrees to continue Executive's
                         ----------
employment, and Executive agrees to remain in employment with the Company, from
the Commencement Date set forth in Section 1(d) until the date when Executive's
employment terminates pursuant to Subsection (ii) below (the "Employment
Period").  Executive's employment with the Company shall be "at will," which
means that either Executive or the Company may terminate Executive's employment
at any time, for any reason, with or Without
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Cause. Any contrary representations, which may have been made to Executive shall
be superseded by this Agreement. This Agreement shall constitute the full and
complete agreement between Executive and the Company of the "at will" nature of
Executive's employment, which may only be changed in an express written
agreement signed by Executive and a duly authorized officer of the Company.

                     (ii) Termination.  The Company or Executive may terminate
                          -----------
Executive's employment at any time for any reason (or no reason), and with
"Cause" or "Without Cause," by giving the other party fourteen (14) days' notice
in writing. Executive's employment shall terminate automatically in the event of
his death.

          2.  Cash and Incentive Compensation.
              -------------------------------

                (a)  Salary.  The Company shall pay Executive a Base Salary of
                     ------
$100,000, less applicable withholdings and deductions in accordance with the
Company's payroll policies. (The compensation specified in this Subsection (a),
together with any increases in such compensation that the Company may grant from
time to time, are referred to in this Agreement as "Base Salary.")

                (b) Stock Option.  The unvested shares of Executive's stock
                    ------------
option granted by the Company under the Stock Option Plan, dated _____1995 (the
"Plan") shall continue to vest pursuant to the Plan.

                (c) Commissions.  Executive shall be eligible to earn commission
                    -----------
payments on a monthly basis. The amount of commission will be based on the
revenue generated by Executive and his sales force, and will be comprised of a
cash and stock component, pursuant to the Commission Earnings Quota Schedule
attached hereto.

                (d)  Effect of Termination.
                     ---------------------

                  (i)  Termination Following Change of Control.  If, within one
                       ---------------------------------------
year following a "Change of Control," Executive resigns for "Good Reason" or the
Company terminates Executive's employment "Without Cause," then Executive shall
receive immediate vesting of the unvested shares of Executive's option, with the
Company's repurchase right lapsing as to such shares.

                  (ii) Termination Outside a Change of Control.  If the Company
                       ---------------------------------------
terminates Executive's employment "Without Cause" outside a Change of Control,
then Executive shall receive a lump sum severance payment equal to four (4)
months of his Base Salary.

                  (i)  Definitions.

                       (a)  "Change of Control."  For all purposes under this
                            --------------------
Agreement, "Change of Control" shall mean (i) a merger or consolidation in which
securities possessing at least fifty percent (50%) of the total combined voting
power of the Corporation's outstanding securities are transferred to a person or
persons different from the persons holding those securities immediately prior to
such transaction, or (ii) the sale, transfer or other disposition

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of all or substantially all of the Corporation's assets in complete liquidation
or dissolution of the Corporation.

                       (b)  "Good Reason."  For all purposes under this
                            --------------
Agreement, "Good Reason" for Executive's resignation will exist if he resigns
within sixty (60) days of any of the following events: (i) any reduction in his
Base Salary; (ii) any material reduction in his benefits; or (iii) an increase
in the quota requirements, provided such reduction or change is effected by the
Company without his written consent. A resignation by Executive under any other
circumstance or for any other reason will be a resignation without "Good
Reason."

                       (c)  Termination for "Cause."  For all purposes under
                            ------------------------
this Agreement, a termination for "Cause" shall mean a good faith determination
by the Company's Board of Directors that Executive's employment be terminated
for any of the following reasons: (i) willful misconduct which materially
damages the Company; (ii) willful failure to attempt to substantially perform
your duties with the Company after a written demand for such performance is
delivered to Executive by the Board of Directors or by the CEO, which
specifically identifies the manner in which the Board of Directors or CEO
believes Executive has not substantially performed his duties, and which
Executive does not remedy within thirty (30) days after receipt of such demand;
(iii) misappropriation of the assets of the Company; or (iv) conviction of, or a
plea of "guilty" or "no contest" to a felony under the laws of the United States
or any state thereof. A termination of Executive's employment in any other
circumstance or for any other reason will be a termination "Without Cause."

          3.  Vacation and Executive Benefits.  During the term of his
              -------------------------------
employment,  Executive shall be eligible for paid vacation, in accordance with
the Company's standard policy for similarly situated employees, as it may be
amended from time to time.  During the term of his employment, Executive shall
be eligible to participate in any employee benefit plans maintained by the
Company for similarly situated employees, subject in each case to the generally
applicable terms and conditions of the plan in question and to the
determinations of any person or committee administering such plan.

          4.   Business Expenses.  During the term of his employment, Executive
               -----------------
shall be authorized to incur necessary and reasonable travel and other business
expenses in connection with his duties hereunder.  The Company shall reimburse
Executive for such expenses upon presentation of an itemized account and
appropriate supporting documentation, all in accordance with the Company's
generally applicable policies.

          5.   Non-Solicitation and Non-Disclosure.
               -----------------------------------

                  (a) Non-Solicitation.  During the period commencing on the
                      ----------------
date of this Agreement and continuing until the first anniversary of the date
when Executive's employment terminates for any reason, Executive shall not
directly or indirectly, personally or through others, solicit or attempt to
solicit (on Executive's own behalf or on behalf of any other person or entity)
for hire any employee or consultant of the Company or any of the Company's
affiliates.

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                  (b)  Non-Disclosure.  As a condition of employment, Executive
                       --------------
will execute the Company's standard Proprietary Information Agreement, a copy of
which is attached.

          3.  Legal Fees.  The Company will pay Executive's reasonable
              ----------
attorneys' fees in connection with negotiating and drafting this Agreement.

          4.  Successors.
              ----------

                   (a)  Company's Successors.  This Agreement shall be binding
                        --------------------
upon any successor (whether direct or indirect and whether by purchase, lease,
merger, consolidation, liquidation or otherwise) to all or substantially all of
the Company's business and/or assets. For all purposes under this Agreement, the
term "Company" shall include any successor to the Company's business and/or
assets which becomes bound by this Agreement.

                   (b)  Executive's Successors.  This Agreement and all rights
                        ----------------------
of Executive hereunder shall inure to the benefit of, and be enforceable by,
Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

          5.  Indemnity.  The Company will indemnify and provide a defense to
              ---------
Executive to the full extent permitted by law and its bylaws with respect to any
claims arising out of the performance of his duties as an employee, director or
officer of the Company. To the same extent, the Company will pay, and subject to
any legal limitations, advance all expenses, including reasonable attorney fees
and costs of court-approved settlements, actually and necessarily incurred by
Executive in connection with the defense of any action, suit or proceeding and
in connection with any appeal, which has been brought against Executive by
reason of his service as an officer, director or agent of the Company, or his
acceptance of this Agreement or the performance of his duties thereunder. The
Company shall use its best efforts to obtain coverage for Executive under a
liability insurance policy or policies that cover the actions of officers and
directors of the Company.

          6.  Arbitration.  Any controversy between the parties hereto involving
              -----------
the construction or application of any terms, covenants or conditions of this
Agreement, or any claims arising out of or relating to this Agreement or the
breach thereof or with your employment with the Company or any termination of
that employment, will be submitted to and settled by final and binding
arbitration in Palo Alto, California, in accordance with the Model Employment
Dispute Resolution Rules of the American Arbitration Association (the "Rules"),
or any other applicable rules of the AAA then in effect. Any arbitrator shall be
selected pursuant to such Rules and judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof.

          7.  Miscellaneous Provisions.
              ------------------------

              (a)  Notice.  Notices and all other communications contemplated by
                   ------
this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by overnight courier, U.S. registered
or certified mail, return receipt requested and postage prepaid. Mailed notices
shall be addressed to Executive at the home

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address which he most recently communicated to the Company in writing. In the
case of the Company, mailed notices shall be addressed to its corporate
headquarters, and all notices shall be directed to the attention of its
Secretary.

              (b)  Modifications and Waivers.  No provision of this Agreement
                   -------------------------
shall be modified, waived or discharged unless the modification, waiver or
discharge is agreed to in writing and signed by Executive and by an authorized
officer of the Company (other than Executive). No waiver by either party of any
breach of, or of compliance with, any condition or provision of this Agreement
by the other party shall be considered a waiver of any other condition or
provision or of the same condition or provision at another time.

              (c)  Whole Agreement.  No other agreements, representations or
                   ---------------
understandings (whether oral or written) which are not expressly set forth in
this Agreement have been made or entered into by either party with respect to
the subject matter of this Agreement. This Agreement, the Proprietary
Information Agreement, and applicable stock option agreements and stock plans,
contain the entire understanding of the parties with respect to the subject
matter hereof.

              (d)  Taxes.  All payments made under this Agreement shall be
                   -----
subject to reduction to reflect taxes or other charges required to be withheld
by law.

              (e)  Choice of Law.  The validity, interpretation, construction
                   -------------
and performance of this Agreement shall be governed by the laws of the State of
California (except provisions governing the choice of law).

              (f)  Severability.  The invalidity or unenforceability of any
                   ------------
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

              (g)  No Assignment.  This Agreement and all rights and obligations
                   -------------
of Executive hereunder are personal to Executive and may not be transferred or
assigned by Executive at any time. The Company may assign its rights under this
Agreement to any entity that assumes the Company's obligations hereunder in
connection with any sale or transfer of all or a substantial portion of the
Company's assets to such entity.

              (h)  Headings.  The headings of the paragraphs contained in this
                   --------
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of any provision of this Agreement.

              (i)  Counterparts.  This Agreement may be executed in two or more
                   ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

          IN WITNESS WHEREOF, each of the parties has executed this Agreement,
in the case of the Company by its duly authorized officer, as of the day and
year first above written.

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                                 EXECUTIVE

                                 /s/ Daryl Horn
                                 ----------------------
                                 Daryl Horn

                                 iAsiaworks, Inc.

                                 By:  /s/ Jonathan Beizer
                                      -------------------

                                 Title:  Chief Financial Officer
                                         -----------------------

                                       6<PAGE>
                THIS DOCUMENT HAS BEEN TRANSLATED INTO ENGLISH.

                                                                   EXHIBIT 10.19

              Real Property Building Sale and Purchase Agreement

The parties to this Building Sale and Purchase Agreement (the "Agreement") are
Buyer, iAsiaWorks, Inc. (hereinafter referred to as B), and Seller, Teng Fu
Construction Co., Ltd. (hereinafter referred to as S).  For the purpose of the
transaction whereby S sells to B all property hereinafter described (the "Real
Property"), the parties have mutually agreed to and hereby set forth the
following provisions in order to facilitate mutual compliance.

Section 1: Identification of the Real Property (in the event of any discrepancy
---------
in such identification records, the records kept at the applicable government
land office shall prevail)

  [*]. Explanatory information regarding the Building (see Exhibit 2).

Section 2: Explanation of Payments
---------

  1.  The parties agree that payments shall be made in either cash or sight
      checks upon the following listed payment dates:

  2.  The total purchase price is [*] (the "Total Purchase Price").

  3.  The installment payment due upon the signing of this Agreement shall be
      five percent (5%) of the Total Purchase Price. On the day after the
      signing of this Agreement, B shall pay S the initial payment in the amount
      of [*].

  4.  The second installment payment shall be five percent (5%) of the Total
      Purchase Price, and shall be paid in the amount of [*] within one (1) week
      after the signing of this Agreement.

  5.  The third installment payment shall be five percent (10%) of the Total
      Purchase Price, and shall be paid in the amount of [*] within two (2) days
      after the completion of the curtain wall of the Building.

  6.  The fourth installment payment shall be five percent (5%) of the Total
      Purchase Price, and shall be paid in the amount of [*] within two (2) days
      after the application for the use permit.

  7.  The fifth installment payment shall be five percent (5%) of the Total
      Purchase Price, and shall be paid in the amount of [*] within two (2) days
      after the procurement of the use permit.

  8.  The sixth installment payment shall be seventy percent (70%) of the Total
      Purchase Price, and shall be paid in the amount of [*].

          a.  In the event that B does not take out a loan, twenty (20) days
              after S delivers written notification to B that title to the
              Building can be transferred, the sixth installment payment shall
              be paid to S in either cash or a sight check. At the same time, S
              shall deliver to B all paperwork and documents required for the
              transferal of registration of the Building, but in any event the
              date for such delivery shall be after October 1, 2000. In the

[*] - CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
<PAGE>

              event that title to the Building can be transferred before October
              1, 2000, such date may be moved forward upon the written agreement
              of B.

          b.  In the event that B, or any third party designated by B to hold
              title in such party's name, borrows funds:

                    i.    Within one day following (A) title registration in the
                          name of B or any such third party designated by B and
                          (B) the completion of loan application procedures with
                          the lender bank, such lender bank shall directly pay
                          such amount into the designated bank account of S.

                    ii.   Within twenty (20) days after S delivers written
                          notification to B that title to the Building can be
                          transferred, B shall complete all relevant procedures
                          to apply for a bank loan. In the event that B fails to
                          meet this deadline, it shall be deemed that B will not
                          procure a bank loan. After B pays in full the
                          installment payments listed in Section 2, clauses 3,
                          4, 5, 6 and 7 of this Agreement and delivers to S the
                          "Payment Agreement Letter" executed by the lender
                          bank, S and B shall affix their respective seals on
                          the title transfer certificate.

                    iii.  B hereby agrees that, following the procurement of a
                          collateralized loan with a bank using the Building
                          and the land on which the Building shall be located
                          [*] as collateral, the parties shall apply in a
                          single application for the registration of title
                          transfer for the Building and the land on which the
                          Building shall be located, and the establishment and
                          registration of collateral rights for the bank loan.

Section 3: Construction Schedule
---------

  1.  S estimates that the curtain wall of the Building will be completed before
      July 15, 2000, and shall make its best efforts to adhere to such estimated
      date.

  2.  S estimates that the use permit will be obtained before September 15,
      2000, and shall make its best efforts to adhere to such estimated date.

  3.  S estimates that it will make physical transfer of the Building before
      October 15, 2000, and shall make its best efforts to adhere to such
      estimated date.

Section 4: Transfer of Title
---------

  1.  In the event that B does not procure a loan:

          a.   At the time when B makes the sixth installment payment, S shall
               affix its seal to and deliver to B the paperwork and official
               documents required for the registration of the transfer of title
               of the Building. In the event that such official documents are
               incomplete or the procedure is not completed properly, so that
               the need arises for S to affix its seal to or procure additional
               official documents, S shall unconditionally cooperate in all
               respects, and may not take advantage of any such situation by
               rejecting a request for its cooperation or making any demands for
               compensation. Any

[*] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
<PAGE>

               violator of this clause shall be in breach of this Agreement and
               shall be liable to reimburse B for its losses.

          b.   When registration of the transfer of title takes place, the
               registration of such title transfer shall be in the name of B or
               any third party designee of B.

  2.  In the event that B or the third-party registrant designated by B procures
      a bank loan:

          a.   Upon discussion between the parties, they may jointly authorize
               the firm of Land Registration Agent Lin Sheng-Yi (Land Scribe) to
               execute the registration of the Real Property. Related fees shall
               be borne by B.

          b.   The parties shall, within five (5) days following the completion
               by B of the procedures set forth in Section 2, Clauses 3, 4, 5, 6
               and 7, deliver to the Land Registration Agent (Land Scribe) the
               paperwork and official documents required for the registration of
               transfer of title, with their respective seals affixed thereto,
               for execution of the procedures for registration of the
               transferal of rights.

          c.   In the event that, due to the incompleteness of such official
               documents or the improper execution of such procedures, so that
               the need arises for S to affix its seal to or procure additional
               official documents, S shall unconditionally cooperate in all
               respects, and may not take advantage of any such situation by
               rejecting a request for its cooperation or making any demands for
               compensation. Any violator of this clause shall be in breach of
               this Agreement and shall be liable to reimburse B for its losses
               resulting from such violation.

          d.   Upon the execution of title transfer registration, title shall be
               registered in the name of B or such third party registrant that
               is designated by B. In the event that, for any reason
               attributable to B, it is not possible to cooperate with the Land
               Registration Agent (Land Scribe) and procure official documents
               required for the transfer of title, so that the tax payments or
               expenses of S are thereby increased, all such additional expenses
               shall be borne by B, except for the portions of such additional
               payments that are incurred before the delay and shall be payable
               by both parties.

Section 5: Liability for Warrantee of Title and Authorization
---------

  S hereby warrants that it possesses free and clear title to the Real Property,
  that the Real Property has not been previously sold to other buyers, and that
  that the Real Property does not encroach upon the land of any third parties.
  In the event that a third party alleges any rights or establishes additional
  rights or a lessee relationship, S shall assume responsibility for clearing
  title before B makes the final installment payment so that B may take title
  free and clear of any such claims.  In the event that B incurs any losses as a
  result of such third-party claims, S shall fully compensate B therefor.

Section 6: Assumption of Tax Payments
---------
<PAGE>

  1.  The parties hereby agree that payment of the building tax, utilities and
      other miscellaneous fees shall be borne by S before physical transfer of
      the Building, and shall be borne by B after physical transfer of the
      Building.

  2.  Payment of the registration fee for this transaction, the stamp tax, the
      deed tax (including notarization fees) and witness certification fees
      shall be borne by B. The land value increment tax and construction benefit
      fee shall be borne by S. Neither party may renege on its obligations
      hereunder, but in the event of an increase in the land value increment tax
      resulting from a delay caused by B, B shall bear any resulting additional
      land value increment tax. (Deed tax paid pursuant to this Agreement shall
      be based upon the appraised value of the Building.)

Section 7: Physical Transfer of Building
---------

  1.  The Building shall be transferred and taken possession of pursuant to a
      punch-list physical inspection. B shall, at the time of transfer of the
      building as notified by S, accept transfer and take possession after an
      on-site inspection.

  2.  Before the punch-list inspection and transfer of the Building, in the
      event of (a) occupation and use of the Building by a third party, (b) a
      natural disaster or major geological change, or (c) other force majeure
      events resulting in damage or destruction, S shall assume responsibility
      for mitigation and restoration, and shall not cause B to bear any loss or
      liability, so that B takes the Building in a state of full completion.

  3.  Before the punch-list inspection and transfer of the Building, S shall
      not, commencing from the execution of this Agreement, without
      authorization take, remove or destroy any interior or exterior fixtures,
      including without limitation doors, windows, kitchen equipment, toilets,
      and public facilities, and shall transfer such fixtures to B in their
      original condition. S shall maintain public facilities and electrical
      equipment in a complete and whole state, and warrant them in accordance
      with the provisions of Section 8 of this Agreement.

  4.  The parties shall arrange a meeting with engineers and relevant personnel
      to account for any change orders in the construction of the Building on an
      item-by-item basis. B shall bear any additional cost, or enjoy any cost
      reduction, due to any increase or decrease in expenses arising from any
      such change order, after all such increases and/or decreases are totaled.

  5.  After B completes the following listed items, S shall cooperate with B to
      allow B to enter the building before physical transfer thereof to fit out
      the interior:

          a.   B shall provide a complete itemized list and detailed drawings
               relating to the fitting out of the Building, and may enter the
               interior to commence fitting out after obtaining the approval of
               S and contractor of S.

          b.   The parties shall execute a "Fitting Out Agreement" setting forth
               that the various construction items are only for the purpose of
               fitting out the premises and not for the purpose of conducting a
               punch-list inspection for acceptance thereof; provided, however,
               that the parties hereby agree that, after the completion of the
               various sale and purchase procedures set forth in this Agreement,
               S shall not again present the Building to B for punch-
<PAGE>

               list inspection and acceptance, and that such punch-list
               inspection and acceptance shall be deemed complete.

          c.   B shall assume liability for any danger within the construction
               area for fitting out works. In the event of any destruction or
               loss to the construction site of S due to fitting out activities
               of B, B shall be liable for compensating S, but S shall assume
               such liability in the event that the construction activities of S
               are the sole cause of such destruction or loss.

          d.   B shall pay [*] per every six (6) square feet as a fitting out
               deposit; provided, however, that such deposit shall not be used
               to defray any construction activities conducted by S.

          e.   B may enter the premises to engage in fitting out activities only
               after obtaining the prior written approval of S.

Section 8: Liability for Breach
---------

  1.  In the event that either of the parties does not carry out its obligations
      pursuant to this Agreement, and fails to cure such breach within two (2)
      weeks after notification and request for cure from the non-breaching
      party, the non-breaching party may immediately terminate this Agreement.

  2.  Upon the execution of this Agreement, the parties may not renege on this
      Agreement or fail to execute their obligations hereunder; otherwise, such
      breaching party shall be found in breach of this Agreement and shall be
      dealt with accordingly.

  3.  In the event that B breaches this Agreement by refusing to purchase the
      Real Property or acts in any other way so as to breach this Agreement, S
      may, in addition to immediately terminating this Agreement, refuse to
      refund any and all payments made by B up to the time of the applicable
      breach. In the event that B makes any payment more than two (2) weeks
      after such payment is due, B shall pay S a late penalty after the
      expiration of such two-week cure period to be assessed in the amount of
      two hundredths of one percent (0.02%) of the Total Purchase Price per day.
      S may also terminate this Agreement, and may refuse to refund to B any and
      all payments made by B up to the time of such termination; provided,
      however, that in the event that title shall have already been transferred
      to B and the Real Property shall have been transferred to B for B's use, B
      shall unconditionally return the Real Property to S. B shall bear any
      related costs.

  4.  In the event that S refuses to sell in violation of this Agreement, is
      unable to make any payment pursuant hereto, refuses to accept any payment
      made to it pursuant hereto, or commits any other act in breach of this
      Agreement, B may terminate this Agreement. In such event, S hereby agrees
      to immediately refund in full to B all payments made by B pursuant to this
      Agreement, and within five (5) days to return an amount to B equivalent to
      twice the amount of all payments made by B to S up to the time of such
      termination so as to compensate B for any losses due to the breach of this
      Agreement. The parties shall apply at the same time to cancel any title
      transfer that may be in progress at such time, and S shall bear any
      resultant taxes or fees.

[*] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
<PAGE>

  5.  In the event that S is unable to (a) complete the curtain wall of the
      Building within forty-five (45) days after the estimated completion date,
      (b) is unable to obtain a use permit within sixty (60) days after the
      estimated date for obtaining such use permit, or (c) is unable to execute
      the physical transfer of the Building within sixty (60) days of the
      estimated date for such physical transfer, each such estimated date being
      set forth in Section 3 of this Agreement, then S shall pay B a late
      penalty after the expiration of such relevant estimated date to be
      assessed in the amount of two hundredths of one percent (0.02%) of the
      Total Purchase Price per day. B may also terminate this Agreement, and
      following such termination S hereby agrees to immediately refund in full
      to B all payments made by B pursuant to this Agreement up to the date of
      such termination, plus interest calculated at an annual rate of eight
      percent (8%).

  6.  This Agreement shall become effective at the same time as the Real
      Property Land Sale and Purchase Agreement, and any failure to carry out
      obligations pursuant to one agreement shall be deemed a breach of both
      agreements.

  7.  S estimates that title to the Building will be transferred to B before
      October 15, 2000. In the event that S is unable to transfer title within
      sixty (60) days following such estimated date, then S shall pay B a late
      penalty after the expiration of such relevant estimated date to be
      assessed in the amount of two hundredths of one percent (0.02%) of the
      Total Purchase Price per day. B may also terminate this Agreement, and
      following such termination S hereby agrees to immediately refund in full
      to B all payments made by B pursuant to this Agreement up to the date of
      such termination, plus interest calculated at an annual rate of eight
      percent (8%).

  8.  In the event that B makes payment pursuant to this Agreement by sending
      wired funds, the date of payment shall be the date when B wires such
      funds, so that B shall be deemed to make payment in accordance with this
      Agreement if the date when such payment is wired is within the date
      specified herein. The date when S receives such wired funds shall not be
      deemed the date of payment of such funds.

Section 9: Warranty
---------

  1.  S hereby warrants that the Building shall meet quality standards that are
      not lower than those for buildings constructed by S in the Neihu District
      within one (1) year before the execution of this Agreement.

  2.  S hereby warrants the structure of the Building (including the foundation,
      the primary load-bearing beams and rafters, and the floors) for ten years
      from the physical transfer of the Building, and warrants fixtures
      (including doors, windows, elevators, electrical generators, air
      conditioning, fire extinguishers and toilets) for one year after the
      physical transfer of the Building; provided, however, that loss or
      destruction due to natural disaster, geological changes, intentional
      destruction due to human activities, other events for which S cannot
      assume responsibility, and inappropriate use of the Building by B, shall
      be excluded herefrom.

  3.  S hereby warrants that the structure of the Building is not irradiated or
      composed of beach sand, and does not contain any construction materials
      that are harmful to
<PAGE>

      human health or affect the safety of the general public; otherwise, S
      shall be obligated to unconditionally repurchase the Building at the
      original purchase price.

Section 10: In regard to the rights and obligations related to the Building, B
----------
has already carefully read the Agreement over a period of seven (7) days and
agrees to act in accordance with the provisions of this Agreement.  In the event
that B transfers the rights and obligations pursuant to this Agreement to a
third party, B shall obtain the approval of S; provided, however, that such
approval shall not be required if B is acquired by or merges with a company
possessing comparable financial strength to that of B.

Section 11: Unperformed Works
----------

In the event that works pursuant to this Agreement are not fully performed, all
such matters shall be resolved in accordance with applicable laws, regulations
and good practices, and in good faith.

Section 12: The exhibits to this Agreement shall have the same effect as this
----------
Agreement.  This Agreement shall become effective at the same time as the Real
Property Land Sale and Purchase Agreement, and a breach of any part of either
agreement shall be deemed a breach of both agreements.

Section 13: Severability
----------

The parties have executed this Agreement by signing it and affixing their seals
to it, and neither party shall renege.  This Agreement has been executed in two
copies for the purpose of preventing the parties from relying upon unverifiable
oral understandings.  This Agreement shall be signed and shall have seals
affixed by both parties.  Each party shall hold one copy of this Agreement.
(When the parties contact each other or notify each other of works to be
performed, written notice shall be delivered via registered mail to the parties
at the addresses listed on this Agreement, and in the event that delivery of
such notices is refused or such notices are returned to the sender, then notice
shall be deemed given on the date of attempted delivery.  If either party has a
change of address, such party shall give immediate written notification to the
other party; otherwise the other party may still deliver notice to the address
listed on this Agreement.)

Section 14: Jurisdiction
----------

All works that are contemplated by this Agreement but that are not fully
performed shall be negotiated and handled in accordance with applicable laws and
regulations, practices, good faith and fair dealing.  In the event of any
dispute giving rise to litigation, the parties hereby agree that jurisdiction
for initial proceedings shall be laid at the local court serving the
jurisdiction encompassing the land upon which the Building is located.

This Agreement is hereby executed by the following parties:
<PAGE>

Buyer (B):     iAsiaWorks, Inc.      /s/ David Holub
               Legal Representative/Responsible Party:   David S. Holub
               Address:             2000 Alameda de las Pulgas, Suite 125
                                    San Mateo, CA 94403 U.S.A.

Seller (S):    Teng Fu Construction Co., Ltd.
               Legal Representative/ /s/Bruce Hsieh
               Responsible Party:   Bruce Hsieh
               Mailing Address:     Ho Hsing Road, Alley 6, No. 10, 3rd Floor
                                    Wen Shan District, Taipei City
               GUI Number:          96951978
               Tel.:                2362-3966

May 17, 2000

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