Document:

<PAGE>

                                                                   EXHIBIT 10.11

February 10, 2000

Mr. Marvin Tseu
SiteSmith, Inc., A California Corporation
3283 Scott Boulevard
Santa Clara, CA  95054

Re:      Lease

Dear Marvin:

Per Paragraph 3 of the Lease, this letter will serve to define the term of the
Lease starting February 1, 2000 and ending approximately sixty (60) months
thereafter on December 31, 2005.

The following is additional information regarding your lease.

BASIC LEASE CONFIRMATION

COMMENCEMENT DATE:             February 1, 2000

EXPIRATION DATE:               December 31, 2005

RENT SHALL BE AS FOLLOWS:

<TABLE>
<CAPTION>

                       BASE RENT (3283/3281)      OPERATING EXPENSES        TOTAL RENT
                       ---------------------      -------------------       ----------
                                                   (1/1/00-12/31/00)
<S>                    <C>                        <C>                       <C>
2/1/00 - 12/31/00      $55,600.00 per month       $5,843.00 per month       $61,443.00 per month
1/1/01 - 12/31/01      $65,120.00 per month       *pls. see below
1/1/02 - 12/31/02      $67,725.00 per month       *pls. see below
1/1/03 - 12/31/03      $70,434.00 per month       *pls. see below
1/1/04 - 12/31/04      $73,251.00 per month       *pls. see below
1/1/05 - 12/31/05      $76,181.00 per month       *pls. see below

</TABLE>

* IN ADDITION TO THE BASE RENT ABOVE, TENANT SHALL ALSO PAY TENANT'S
PROPORTIONATE SHARE ESTIMATE OPERATING EXPENSES AS SET FORTH IN PARAGRAPH 29 OF
THE LEASE AGREEMENT. OPERATING EXPENSES THROUGH DECEMBER 31, 2000 ARE ESTIMATED
TO BE $5,843.00 PER MONTH ($1,859.00 PER MONTH FOR 3283 SCOTT AND $3,984.00 PER
MONTH FOR 3281 SCOTT). OPERATING EXPENSES ARE ESTIMATED A YEAR IN ADVANCE AND
COLLECTED ON A MONTHLY BASIS. ANY ADJUSTMENTS NECESSARY (UP OR DOWN) WILL BE
MADE AT THE END OF THE OPERATING YEAR.

<PAGE>

Please be informed that you will not be invoiced for rent. Please notify your
accounting department that rent is due and payable on or before the first of
each month. Please reference your Lease Id # (SITE---01) on all checks sent to
Spieker Properties. All checks should be made payable to SPIEKER PROPERTIES and
mailed to the following address:

                  Spieker Properties
                  P.O. Box 45587 (Dept. 10001)
                  San Francisco, CA  94145-0587

It is truly a pleasure having you as a Tenant at the Project and we wish you
every success at your new location.

Should you have any questions or require any additional information, please feel
free to call me at (408) 727-5600.

Sincerely,

/s/ Connie Walker

Connie Walker
Project Director

                                       2
<PAGE>

                            FIRST AMENDMENT TO LEASE

THIS FIRST AMENDMENT TO LEASE (this "FIRST AMENDMENT") is made this 7th day of
January 2000 between Spieker Properties, L.P., a California limited partnership
(the "LANDLORD"), and SiteSmith, Inc., a California corporation, (the "TENANT").

WHEREAS, Landlord and Tenant entered into a Lease dated September 15, 1999, (the
"LEASE"), for those certain premises located at 3283 Scott Blvd, Santa Clara,
California (the "PREMISES"), as more fully described in the Lease. Capitalized
terms used but not otherwise defined herein shall have the meanings given them
in the Lease; and

WHEREAS, Landlord and Tenant desire to modify the Lease as provided herein.

NOW, THEREFORE, in consideration of the covenants and agreements contained
herein, the parties hereby mutually agree as follows:

1)   PREMISES: Effective February 1, 2000, the Premises shall be expanded to
     include the adjacent portion of the building located at 3281/3283 Scott
     Blvd, Santa Clara, California. Said expansion area shall consist of the
     existing premises of approximately 11,200 square feet and the expansion
     premises of approximately 24,000 square feet. Total Premises shall be
     approximately 35,200 square feet of area. The Premises are approximately as
     shown outlined on the attached Exhibit A.

2)   TENANT'S PROPORTIONATE SHARE OF BUILDING:  73.33%

3)   EXTENSION OF TERM AND SCHEDULED TERM EXPIRATION:  The term of this Lease
     shall be extended by an additional period of fourteen (14) months. The
     Scheduled Term Expiration shall be December 31, 2005.

4)   RENT:  Total Base Rent for the new expanded Premises shall be as follows:

     February 1, 2000 through December 31, 2000        $55,600.00 per month
     January 1, 2001 through December 31, 2001         $65,120.00 per month
     January 1, 2002 through December 31, 2002         $67,725.00 per month
     January 1, 2003 through December 31, 2003         $70,434.00 per month
     January 1, 2004 through December 31, 2004         $73,251.00 per month
     January 1, 2005 through December 31, 2005         $76,181.00 per month

5)   TENANT IMPROVEMENTS: Landlord agrees to contribute a one-time tenant
     improvement allowance in the amount of One Hundred Fifty Thousand Dollars
     ($150,000.00). Terms and conditions relating to the construction of
     improvements and the disbursement of the tenant improvement allowance shall
     be as defined in the attached Improvement Agreement (Exhibit B).

<PAGE>

6)   SECURITY DEPOSIT: The existing cash security deposit in the sum of Fifty
     Eight Thousand Eight Hundred Dollars ($58,800.00) shall be increased to a
     total cash security deposit of One Hundred Forty Seven Thousand Six Hundred
     Dollars ($147,600). In addition, Tenant shall deliver an irrevocable letter
     of credit in the amount of Three Hundred Ten Thousand Eight Hundred Dollars
     ($310,800) (the "LOC AMOUNT"). Total security deposit, including the LOC
     Amount, shall be Four Hundred Fifty Eight Thousand Four Hundred Dollars
     ($458,400).

7)   LETTER OF CREDIT:

     A.   In addition to the aforementioned cash security deposit, Tenant shall,
          upon execution of this Lease Amendment, deliver to Landlord and cause
          to be in effect during the Lease Term an unconditional, irrevocable
          letter of credit ("LOC") in the amount of Three Hundred Ten Thousand
          Eight Hundred Dollars ($310,800), for an initial term extending 30
          days beyond the expiration date of this Lease. The LOC shall be in a
          form acceptable to Landlord and shall be issued by an LOC bank
          selected by Tenant and acceptable to Landlord. The text of the LOC
          shall expressly state that the LOC shall survive the termination of
          this Lease. An LOC bank is a bank that accepts deposits, maintains
          accounts and has a local office that will negotiate a letter of credit
          and the deposits of which are insured by the FDIC.

          Tenant shall pay all expenses, points, or fees incurred by Tenant in
          obtaining the LOC. The LOC shall not be mortgaged, assigned or
          encumbered in any manner whatsoever by Tenant without the prior
          written consent of Landlord. Tenant acknowledges that Landlord has the
          right to transfer or mortgage its interest in the Project, the
          Building and in this Lease and Tenant agrees that in the event of any
          such transfer or mortgage, Landlord shall have the right to transfer
          or assign the LOC and/or the LOC Security Deposit (as defined below)
          to the transferee or mortgagee, and in the event of such transfer,
          Tenant shall look solely to such transferee or mortgagee for the
          return of the LOC and/or the LOC Security Deposit.

     B.   REPLACEMENT OF LETTER OF CREDIT. Tenant may, from time to time,
          replace any existing LOC with a new LOC if the new LOC (a) becomes
          effective at least thirty (30) days before expiration of the LOC that
          it replaces; (b) is in the required LOC amount; (c) is issued by an
          LOC bank acceptable to Landlord; and (d) otherwise complies with the
          requirements of this Paragraph 7 of this First Amendment.

     C.   LANDLORD'S RIGHT TO DRAW ON LETTER OF CREDIT. Landlord shall hold the
          LOC as security for the performance of Tenant's obligations under this
          Lease. If, after notice and failure to cure within any applicable
          period provided in this Lease, Tenant defaults on any provision of
          this Lease, Landlord may, without prejudice to any other remedy it
          has, draw on that portion of the LOC necessary to (i) pay Rent or
          other sum in default; (ii) pay or reimburse Landlord for any amount
          that Landlord may spend or become obligated to spend in exercising
          Landlord's rights under Paragraph 7 (Improvements, Alterations,
          Repairs and Maintenance); and/or

                                       2
<PAGE>

          (iii) compensate Landlord for any expense, loss, or damage that
          Landlord may suffer because of Tenant's default. If Tenant fails to
          renew or replace the LOC at least thirty (30) days before its
          expiration, Landlord may, without prejudice to any other remedy it
          has, draw on the entire amount of the LOC.

     D.   LOC SECURITY DEPOSIT. Any amount of the LOC that is drawn on by
          Landlord but not applied by Landlord shall be held by Landlord as a
          security deposit (the "LOC SECURITY DEPOSIT") in accordance with
          Paragraph 5 of the Lease.

     E.   RESTORATION OF LETTER OF CREDIT AND LOC SECURITY DEPOSIT. If Landlord
          draws on any portion of the LOC and/or applies all or any portion of
          such draw, Tenant shall, within five (5) business days after demand by
          Landlord, either (i) deposit cash with Landlord in an amount that,
          when added to the amount remaining under the LOC and the amount of any
          LOC Security Deposit, shall equal the LOC Amount required under
          Paragraph 5 of the this First Amendment; or (ii) reinstate the LOC to
          the full LOC Amount.

     F.   REDUCTION OF LETTER OF CREDIT.

          The LOC Amount may be reduced if each of the following conditions is
          satisfied to Landlord's satisfaction: (i) Tenant is not and has not
          been in material default under the terms of this Lease beyond any
          applicable cure period, (ii) Tenant provides to Landlord ten (10) days
          prior written notice of any such reduction; (iii) the LOC provides
          that the issuing bank shall notify Landlord in writing at least five
          (5) business days prior to any such reduction, and (iv) each of the
          conditions precedent described in clauses A. through E., inclusive, is
          satisfied to Landlord's satisfaction.

          At any time after December 31, 2002, the LOC Amount may be reduced to
          an amount equal to One Hundred Fifty Five Thousand Four Hundred
          Dollars ($155,400) if the following conditions precedent are satisfied
          to Landlord's satisfaction: (i) Tenant has a tangible net worth in
          excess of Fifteen Million Dollars ($15,000,000), which amount shall be
          determined by Landlord to its satisfaction prior to any reduction in
          the LOC Amount, and in connection with such determination, "Tangible
          net worth" shall be determined by Landlord in its sole discretion and
          shall mean assets less intangible assets and total liabilities, with
          intangible assets including nonmaterial benefits such as goodwill,
          patents, copyrights, and trademarks. Tenant shall deliver to Landlord
          for review Tenant's financial statements prepared in accordance with
          generally accepted accounting principles and audited by a nationally
          recognized public accounting firm acceptable to Landlord, and any
          other financial information requested by Landlord ("TENANT'S FINANCIAL
          INFORMATION"); and (ii) Tenant's Financial Information reflects two
          (2) consecutive calendar quarters of profitability, as determined by
          Landlord, during the time period immediately preceding Tenant's
          request for reduction in the LOC Amount.

                                       3
<PAGE>

8)   CONTINGENCY:  This First Amendment, in its entirety, shall be contingent
     upon the full termination of the existing Lease Agreement between Spieker
     Properties, L.P. and DPSS Lasers, Inc. for the premises located at 3281
     Scott Blvd., Santa Clara, CA.

     Except as expressly modified above, all terms and conditions of the Lease
remain in full force and effect and are hereby ratified and confirmed.

     IN WITNESS WHEREOF, the parties hereto have entered into this First
Amendment as of the date first written above.

LANDLORD:                                        TENANT:
SPIEKER PROPERTIES, L.P.,                        SITESMITH, INC.
A CALIFORNIA LIMITED PARTNERSHIP                 A CALIFORNIA CORPORATION

By:  Spieker Properties, Inc.
     a Maryland corporation
     its General Partner

By:  /S/ JOSEPH D. RUSSELL, JR.                  By: /S/ MARVIN TSEU
     ------------------------------------------      ---------------------------
     Joseph D. Russell, Jr.                          Marvin Tseu

Its: PRESIDENT, SILICON VALLEY                   Its: CHIEF EXECUTIVE OFFICER
     ------------------------------------------       --------------------------

Date:1/31/00                                          Date:    1/14/00
     ------------------------------------------       --------------------------

                                       4
<PAGE>

                                   EXHIBIT "A"

                              [DIAGRAM OF PROPERTY]

                                      -5-
<PAGE>

                                    EXHIBIT B

                           LEASE IMPROVEMENT AGREEMENT

                                 SITESMITH, INC.

         This Lease Improvement Agreement ("IMPROVEMENT AGREEMENT") sets forth
the terms and conditions relating to construction of the initial tenant
improvements described in the Plans to be prepared and approved as provided
below (the "TENANT IMPROVEMENTS") in the Premises. Capitalized terms used but
not otherwise defined herein shall have the meanings set forth in the Lease (the
"LEASE") to which this Improvement Agreement is attached and forms a part.

         1.   PLANS AND SPECIFICATIONS.

              1.1  Tenant shall retain the services of API DESIGN (the "SPACE
PLANNER") to prepare a detailed space plan (the "SPACE PLAN") mutually
satisfactory to Landlord and Tenant for the construction of the Tenant
Improvements in the Premises. Tenant shall submit the Space Plan and any
proposed revisions thereto to Landlord for Landlord's approval.

              1.2  Based on the approved Space Plan, Tenant shall cause the
Space Planner to prepare detailed plans, specifications and working drawings
mutually satisfactory to Landlord and Tenant for the construction of the Tenant
Improvements (the "PLANS"). Landlord and Tenant shall diligently pursue the
preparation of the Plans. Tenant shall submit the Plans and any proposed
revisions thereto, including the estimated cost of the Tenant Improvements. All
necessary revisions to the Space Plan and the Plans shall be made within two (2)
business days after Landlord's response thereto. This procedure shall be
repeated until Landlord ultimately approves the Space Plan and Plans.

              1.3  Tenant shall be responsible for ensuring that the Plans are
compatible with the design, construction and equipment of the Building, comply
with applicable Regulations and the Standards (defined below), and contain all
such information as may be required to show locations, types and requirements
for all heat loads, people loads, floor loads, power and plumbing, regular and
special HVAC needs, telephone communications, telephone and electrical outlets,
lighting, light fixtures and related power, and electrical and telephone
switches, B.T.U. calculations, electrical requirements and special receptacle
requirements. The Plans shall also include mechanical, electrical, plumbing,
structural and engineering drawings mutually satisfactory to Landlord and Tenant
which shall be prepared by API DESIGN. Notwithstanding Landlord's preparation,
review and approval of the Space Plan and the Plans and any revisions thereto,
Landlord shall have no responsibility or liability whatsoever for any errors or
omissions contained in the Space Plan or Plans or any revisions thereto, or to
verify dimensions or conditions, or for the quality, design or compliance with
applicable Regulations of any improvements described therein or constructed in
accordance therewith. Tenant hereby waives all claims against Landlord relating
to, or arising out of the design or construction of, the Tenant Improvements.

                                      -6-
<PAGE>

              1.4  Landlord's criteria for approvals shall be based on
reasonable criteria established from time to time by Landlord, but Landlord will
be deemed to have acted reasonably if Landlord's disapproval is predicated upon
(i) effect on the structural integrity of the Building, (ii) possible damage to
the Building's mechanical, electrical, plumbing and HVAC systems, (iii)
non-compliance with applicable laws, codes and regulations, (iv) incompatibility
with the base building plans, (v) failure to use materials required by Schedule
2 pertaining to Standards, and (vi) effect on the exterior of the Building or
any of the Building's common areas. Landlord shall not be deemed to have
approved the Space Plan, the Plans, or any proposed revisions thereto, unless
approved by Landlord in writing. Landlord shall approve or disapprove any Space
Plan, Plans or proposed revisions thereto submitted to Landlord for Landlord's
approval within three (3) business days after Landlord's receipt thereof. If
Landlord has not approved in writing any Space Plan, or proposed revisions
thereto submitted to Landlord within five (5) business days after Landlord's
receipt thereof, Landlord shall be deemed to have disapproved the same.

         2.   TENANT IMPROVEMENT COST.

              2.1  The cost of the Tenant Improvements shall be paid for by
Tenant, including, without limitation, the cost of: Standards; space plans and
studies; architectural and engineering fees; permits, approvals and other
governmental fees; labor, material, equipment and supplies; construction fees
and other amounts payable to contractors or subcontractors; taxes; off-site
improvements; remediation and preparation of the Premises for construction of
the Tenant Improvements; taxes; filing and recording fees; premiums for
insurance and bonds; attorneys' fees; financing costs; and all other costs
expended or to be expended in the construction of the Tenant Improvements.

              2.2  Provided Tenant is not in default under the Lease, including
this Improvement Agreement, Landlord shall contribute a one-time tenant
improvement allowance IN THE AMOUNT OF ONE HUNDRED FIFTY THOUSAND DOLLARS
($150,000) ("TENANT IMPROVEMENT ALLOWANCE") toward the cost of the initial
Tenant Improvements. Provided Tenant is not then in default under the Lease,
including this Improvement Agreement, Landlord shall disburse the Tenant
Improvement Allowance to Tenant upon THE RECEIPT OF APPROPRIATE BILLS AND
SUPPORTING DOCUMENTATION FOR THE WORK ORDERED BY TENANT OR ITS CONTRACTOR OR ANY
SUBCONTRACTOR.

              2.3  Tenant shall be responsible for obtaining all governmental
approvals to the full extent necessary for the construction and installation of
the Tenant Improvements and for Tenant's occupancy of the Premises, in
compliance with all applicable Regulations. Tenant shall employ DSP CONSTRUCTION
as the contractor or such other contractor or contractors as shall be approved
by Landlord in writing to construct the Tenant Improvements in conformance with
the approved Space Plan and Plans. The construction contracts between Tenant and
the approved contractor shall be subject to Landlord's prior reasonable approval
and shall provide for progress payments. The contractor(s) shall be duly
licensed and Landlord's approval of the contractor(s) shall be conditioned,
among other things, upon the contractor's reputation for quality of work,
timeliness of performance, integrity and Landlord's prior experience with such
contractor.

              2.4  Landlord shall not be liable for any direct or indirect
damages suffered by Tenant as a result of delays in construction beyond
Landlord's reasonable control, including, but

                                       7
<PAGE>

not limited to, delays due to strikes or unavailability of materials or labor,
or delays caused by Tenant (including delays by the Space Planner, the
contractor or anyone else performing services on behalf of Landlord or Tenant).

              2.5  All work to be performed on the Premises by Tenant or
Tenant's contractor or agents shall be subject to the following conditions:

                   (a)  Such work shall proceed upon Landlord's written approval
of Tenant's contractor, and public liability and property damage insurance
carried by Tenant's contractor.

                   (b)  All work shall be done in conformity with a valid
building permit when required, a copy of which shall be furnished to Landlord
before such work is commenced, and in any case, all such work shall be performed
in a good and workmanlike and first-class manner, and in accordance with all
applicable Regulations and the requirements and standards of any insurance
underwriting board, inspection bureau or insurance carrier insuring the Premises
pursuant to the Lease. Notwithstanding any failure by Landlord to object to any
such work, Landlord shall have no responsibility for Tenant's failure to comply
with all applicable Regulations. Tenant shall be responsible for ensuring that
construction and installation of the Tenant Improvements will not affect the
structural integrity of the Building.

                   (c)  If required by Landlord or any lender of Landlord, all
work by Tenant or Tenant's contractor shall be done with union labor in
accordance with all union labor agreements applicable to the trades being
employed.

                   (d)  Landlord or Landlord's agents shall have the right to
inspect the construction of the Tenant Improvements by Tenant during the
progress thereof. If Landlord shall give notice of faulty construction or any
other deviation from the approved Space Plan or Plans, Tenant shall cause its
contractor to make corrections promptly. However, neither the privilege herein
granted to Landlord to make such inspections, nor the making of such inspections
by Landlord, shall operate as a waiver of any right of Landlord to require good
and workmanlike construction and improvements erected in accordance with the
approved Space Plan or Plans.

                   (e)  Tenant's construction of the Tenant Improvements shall
comply with the following: (i) the Tenant Improvements shall be constructed in
strict accordance with the approved Space Plan or Plans; (ii) Tenant's and its
contractor shall submit schedules of all work relating to the Tenant
Improvements to Landlord for Landlord's approval within two (2) business days
following the selection of the contractor and the approval of the Plans.
Landlord shall within five (5) business days after receipt thereof inform Tenant
of any changes which are necessary and Tenant's contractor shall adhere to such
corrected schedule; and (iii) Tenant shall abide by all rules made by Landlord
with respect to the use of freight, loading dock, and service elevators, storage
of materials, coordination of work with the contractors of other tenants, and
any other matter in connection with this Improvement Agreement, including,
without limitation, the construction of the Tenant Improvements.

                                       8
<PAGE>

                   (f)  Tenant shall promptly reimburse Landlord upon demand for
any reasonable expense actually incurred by the Landlord by reason of faulty
work done by Tenant or its contractors or by reason of any delays caused by such
work, or by reason of inadequate clean-up.

                   (g)  Tenant hereby indemnifies and holds Landlord harmless
with respect to any and all costs, losses, damages, injuries and liabilities
relating in any way to any act or omission of Tenant or Tenant's contractor or
agents, or anyone directly or indirectly employed by any of them, in connection
with the Tenant Improvements and any breach of Tenant's obligations under this
Improvement Agreement, or in connection with Tenant's non-payment of any amount
arising out of the Tenant Improvements. Such indemnity by Tenant, as set forth
above, shall also apply with respect to any and all costs, losses, damages,
injuries, and liabilities related in any way to Landlord's performance or any
ministerial acts reasonably necessary (i) to permit Tenant to complete the
Tenant Improvements, and (ii) to enable Tenant to obtain any building permit or
certificate of occupancy for the Premises.

                   (h)  Tenant's contractor and the subcontractors utilized by
Tenant's contractor shall guarantee to Tenant and for the benefit of Landlord
that the portion of the Tenant Improvements for which it is responsible shall be
free from any defects in workmanship and materials for a period of not less than
one (1) year from the date of completion thereof. Each of Tenant's contractor
and the subcontractors utilized by Tenant's contractor shall be responsible for
the replacement or repair, without additional charge, of all work done or
furnished in accordance with its contract that shall become defective within one
(1) year after the later to occur of (i) completion of the work performed by
such contractor of subcontractors and (ii) the Term Commencement Date. The
correction of such work shall include, without additional charge, all additional
expenses and damages incurred in connection with such removal or replacement of
all or any part of the Tenant Improvements, and/or the Building and/or common
areas that may be damaged or disturbed thereby. All such warranties or
guarantees as to materials or workmanship of or with respect to the Tenant
Improvements shall be contained in the construction contract or subcontract and
shall be written such that such guarantees or warranties shall inure to the
benefit of both Landlord and Tenant, as their respective interests may appear,
and can be directly enforced by either. Tenant covenants to give to Landlord any
assignment or other assurances which may be necessary to effect such rights of
direct enforcement.

         3.   INSURANCE REQUIREMENTS. All of Tenant's contractors shall carry
workers' compensation insurance covering all of their respective employees, and
shall also carry public liability insurance, including property damage, all with
limits, in form and with companies as are required to be carried by Tenant as
set forth in Exhibit D to the Lease.

                                       9<PAGE>
                                                                   EXHIBIT 10.12

                          CONSENT TO SUBLEASE AGREEMENT

         This  Consent  to  Sublease  Agreement  (this  "Agreement")  is made as
of January  14,  2000 by and among Spieker Properties,  L.P., a California
limited  partnership,  ("Master Landlord"),  SiteSmith,  Inc., a California
corporation ("Sublandlord"), and DPSS Lasers, Inc., a California corporation
("Subtenant").

                                    RECITALS

         This Agreement is made with regard to the following facts:

         A.   Master Landlord and Sublandlord,  as tenant, entered into a Lease
dated September 15, 1999, (the "MASTER LEASE"), for premises located at 3281
Scott Blvd., (the "BUILDING"). Initially capitalized terms not otherwise defined
herein shall have the same meanings as described in the Lease.

         B.   Under the terms of Paragraph 9 of the Master Lease, Sublandlord
has requested Master Landlord's consent to the Sublease Agreement dated January
14, 2000, between Sublandlord and Subtenant ( the "SUBLEASE"), which would
sublease to Subtenant the Premises, as more particular described in the Sublease
(the "SUBLEASED PREMISES"). A copy of the Sublease is attached to this Agreement
as EXHIBIT A.

         C.   Master  Landlord is willing to consent to the Sublease on the
terms and conditions contained in this Agreement.

         NOW THEREFORE, in consideration of the mutual covenants contained in
this Agreement, and for valuable consideration, the receipt and sufficiency of
which are acknowledged by the parties, the patties agree as follows.

              1.   MASTER LANDLORD'S  CONSENT.  Master Landlord  consents to the
Sublease. This consent is granted only on the terms and conditions stated in
this Agreement. Master Landlord is not bound by any of the terms, covenants, or
conditions of the Sublease. The Sublease is subject and subordinate to the
Master Lease.

              2.   LIMITS OF CONSENT.

                   2.1    NONRELEASE OF SUBLANDLORD;  FURTHER  TRANSFERS;
RECAPTURE RIGHTS.  Neither the Sublease nor this Agreement will:

                          (A)   release  Sublandlord  from any  liability,
whether past, present or future, under the Master Lease;

                          (B)   alter  the  primary  liability  of  Sublandlord
to pay the Rent and perform all of Tenant's obligations under the Master Lease
(including the payment of all bills rendered by Master Landlord for charges
incurred by Subtenant for services and materials supplied to the Subleased
Premises);

<PAGE>

                          (C)   be construed as a waiver of Master  Landlord's
right to consent to any proposed transfer after the date hereof by Sublandlord
under the Master Lease or Subtenant under the Sublease, or as a consent to any
portion of the Subleased Premises being used or occupied by any other party; or

                          (D)   limit  Master  Landlord's  right,  in the  event
of a proposed future sublease, to recapture any portion of the Premises,
including the Subleased Premises, affected by that proposed sublease, as
provided in Paragraph 9 of the Master Lease.

                   Master  Landlord may consent to the  subsequent  sublease and
assignment of the Sublease or any amendments or modifications to the Sublease
without notifying Sublandlord or anyone else liable under the Master Lease,
including any guarantor of the Master Lease, and without obtaining their
consent. No such action by Master Landlord will relieve those persons from any
liability to Master Landlord or otherwise with regard to the Subleased Premises.

              3.   RELATIONSHIP WITH MASTER LANDLORD.

                   3.1    ASSIGNMENT OF TENANT'S  INTEREST TO MASTER LANDLORD.
Sublandlord assigns and transfers to Master Landlord Sublandlord's interest in
the Sublease and all rentals and income arising from the Sublease, subject to
the terms of this Section 3. Master Landlord, by consenting to the Sublease,
agrees that, until Sublandlord defaults in performing its obligations under the
Master Lease, Sublandlord may receive, collect, and enjoy the rents accruing
under the Sublease.

                   3.2    EFFECT OF SUBLANDLORD  DEFAULT UNDER MASTER LEASE.  If
Sublandlord defaults in the performance of its obligations to Master Landlord,
under Paragraph 16 of the Master Lease (whether or not Master Landlord
terminated the Master Lease), Master Landlord may at its option by notice to
Sublandlord, do either of the following.

                          (A)   Terminate the Sublease; or

                          (B)   Elect to receive and collect,  directly  from
Subtenant, all rent and any other sums owing and to be owed under the Sublease,
as further set forth in Section 3.3, below.

                   3.3    MASTER  LANDLORD'S  ELECTION TO RECEIVE RENTS.  Master
Landlord will not, as a result of the Sublease, or as a result of the collection
of rents or any other sums from Subtenant under Section 3.2(b), above, be liable
to Subtenant for any failure of Sublandlord to perform any obligation of
Sublandlord under the Sublease.

                   Sublandlord  irrevocably  authorizes  and directs  Subtenant,
on receipt of any written notice from Master Landlord stating that a default
exists in the performance of Sublandlord's obligations under the Master Lease,
to pay to Master Landlord the rents and any other sums due and to become due
under the Sublease. Sublandlord agrees that Subtenant has the right to rely on
any such statement from Master Landlord, and that Subtenant will pay those rents
and other sums to Master Landlord without any obligation or right to inquire as
to whether

                                       2
<PAGE>

a default exists and despite any notice or claim from Sublandlord to
the contrary. Sublandlord will not have any right or claim against Subtenant for
those rents or other sums paid by Subtenant to Master Landlord. Master Landlord
will credit Sublandlord with any rent received by Master Landlord under this
assignment, but the acceptance of any payment on account of rent from Subtenant
as the result of a default by Sublandlord will not: (a) be an attornment by
Master Landlord to Subtenant or by Subtenant to Master Landlord; (b) be a waiver
by Master Landlord of any provision of the Master Lease; or (c) release
Sublandlord from any liability under the terms, agreements, or conditions of the
Master Lease. No payment of rent by Subtenant directly to Master Landlord,
regardless of the circumstances or reasons for that payment, will be deemed an
attornment by Subtenant to Master Landlord in the absence of a specific written
agreement signed by Master Landlord to that effect.

                   3.4    MASTER  LANDLORD'S  ELECTION  OF TENANT'S  ATTORNMENT.
In the event the Master Lease is terminated prior to the expiration of the term
of the Sublease, Master Landlord shall have the right, pursuant to notice to
Subtenant, to succeed to Sublandlord's interest in the Sublease and cause
Subtenant to attorn to Master Landlord. Master Landlord will assume the
obligation of Sublandlord under the Sublease from the time of the exercise of
the option, but Master Landlord will not be:

                          (A)   liable  for any rent paid by  Subtenant  to
Sublandlord more than one month in advance, or any security deposit paid by
Subtenant to Sublandlord;

                          (B)   liable for any act or omission of  Sublandlord
under the Master Lease or for any default of Sublandlord under the Sublease
which occurred prior to the Master Landlord's assumption;

                          (C)   subject to any  defenses or offsets  that
Subtenant may have against Sublandlord which arose prior to Master Landlord's
assumption; or

                          (D)   bound by any  changes or  modifications  made to
the Sublease without the written consent of Master Landlord.

              4.   CONSIDERATION FOR SUBLEASE. Sublandlord and Subtenant
represent and warrant that there are no additional payments of rent or any other
consideration of any type which has been paid or is payable by Subtenant to
Sublandlord in connection with the Sublease, other than as disclosed in the
Sublease.

              5.   GENERAL PROVISIONS.

                   5.1    BROKERAGE  COMMISSION.  Sublandlord  and Subtenant
agree that Master Landlord will not be liable for any brokerage commission or
finder's fee in connection with the consummation of the Sublease or this
Agreement. Sublandlord and Subtenant will protect, defend, indemnify, and hold
Master Landlord harmless from any brokerage commission or finder's fee in
connection with the consummation of the Sublease or this Agreement, and from any
cost or expense (including attorney fees) incurred by Master Landlord in
resisting any claim

                                       3
<PAGE>

for any such brokerage commission or finder's fee. The provisions of this
Section 5.1 shall survive the expiration or earlier termination of the Sublease
and this Agreement.

                   5.2    NOTICE.  Any  notice  that  may or  must  be  given by
any party under this Agreement will be delivered (i) personally, (ii) by
certified mail, return receipt requested, or (iii) by a nationally recognized
overnight courier, addressed to the party to whom it is intended. Any notice
given to the Master Landlord, Sublandlord or Subtenant shall be sent to the
respective address set forth on the signature page below, or to such other
address as that party may designate for service of notice by a notice given in
accordance with the provisions of this Section 5.2.

                   5.3    CONTROLLING  LAW. The terms and  provisions of this
Agreement will be construed in accordance with, and will be governed by, the
laws of the State of California.

                   5.4    ENTIRE AGREEMENT;  WAIVER. This Agreement  constitutes
the final, complete and exclusive statement between the parties to this
Agreement pertaining to the terms of Master Landlord's consent to the Sublease,
supersedes all prior and contemporaneous understandings or agreements of the
parties, and is binding on and inures to the benefit of their respective heirs,
representatives, successors and assigns.

                   5.5    WAIVER  OF  JURY  TRIAL;  ATTORNEY  FEES.  If any
party commences litigation against any other party for the specific performance
of this Agreement, for damages for the breach hereof or otherwise for
enforcement of any remedy hereunder, the parties waive any right to a trial by
jury and, in the event of any commencement of litigation, the prevailing party
shall be entitled to recover from the applicable party such costs and reasonable
attorney fees as may have been incurred.

                                       4
<PAGE>

         The parties have executed this Consent to Sublease Agreement as of the
above date.

MASTER LANDLORD:

SPIEKER PROPERTIES, L.P., a California limited
partnership

By:      Spieker Properties, Inc., a Maryland corporation, its
general partner

                                                  Master Landlord Address:

By:                                               3333 Bowers Avenue, Suite 153
    ----------------------------                  Santa Clara, CA 95054
         Joseph D. Russell, Jr.

Its:     President, Silicon Valley                Phone:  (408) 727-5600

SUBLANDLORD:                                      Sublandlord Address:

SiteSmith, Inc., a California corporation         3283 Scott Blvd.
                                                  Santa Clara, CA 95054

By:                                               Phone:  (408) 987-6419
    ----------------------------
         Marvin Tseu

Its:     Chief Executive Officer

SUBTENANT:                                        Subtenant Address:

DPSS Lasers, Inc., a California corporation       3281 Scott Blvd.
                                                  Santa Clara, CA 95054

By:                                               Phone:  (408) 844-9955
    ----------------------------
         Thomas M. Hogan

Its:     Chief Executive Officer

                                       5
<PAGE>

                                    SUBLEASE

1.   PARTIES

     This Sublease is entered into this 14TH day of JANUARY 2000 by and between
SITESMITH, INC., A CALIFORNIA CORPORATION, SUBLESSOR, and DPSS LASERS, INC., A
CALIFORNIA CORPORATION, SUBLESSEE, as a Sublease under the Master Lease dated
SEPTEMBER 15, 1999 entered into by SPIEKER PROPERTIES, L.P., A CALIFORNIA
LIMITED PARTNERSHIP, AS LESSOR, and SITESMITH, INC., AS SUBLESSOR, under this
Sublease as Lessee; a copy of the Master Lease is attached hereto as Exhibit
"A."

2.   PREMISES

     Sublessor leases to Sublessee and Sublessee hires from Sublessor the
following described Premises together with the appurtenances, situated in the
CITY OF SANTA CLARA, County of SANTA CLARA, State of California, commonly known
and described as that APPROXIMATELY 12,000 SQUARE FEET OF AREA LOCATED AT 3281
SCOTT BLVD., SANTA CLARA, CALIFORNIA.

3.   TERM

     (a)  The term of this sublease shall be for a period of nine (9) months,
commencing on the 1st day of February 2000, and ending on the 31st day of
October 2000.

4.   RENTAL

     Sublessor and Sublessee mutually agree that Sublessee shall occupy the
Premises free of rent, operating expenses (including property taxes and external
maintenance) and utilities for the full term of the sublease.

5.   SECURITY DEPOSIT/ESCROW ACCOUNT

     Sublessor shall establish an Escrow Account on behalf of Sublessee upon the
execution hereof in the amount of ONE HUNDRED THOUSAND DOLLARS AND NO/100THS
($100,000.00) as security for Sublessor's faithful performance of Sublessor's
obligation hereunder. If Sublessor fails to pay rent or other charges due
hereunder, or otherwise defaults with respect to any provision of this Sublease,
Sublessee may use, apply or retain all or any portion of said deposit for the
payment of any rent or other change in default or for the payment of any other
sum to which Sublessee may become obligated by reason of Sublessor's default, or
to compensate Sublessee for any loss or damage which Sublessee may suffer
thereby.

     If Sublessor performs all of Sublessor's obligations hereunder, said
deposit, or so much thereof as has heretofore not been applied by Sublessee,
shall be returned, without payment of interest or other increment for its use to
Sublessor at the expiration of the term hereof

6.   USE

<PAGE>

     Sublessee shall use the premises for general office, research and
development and light manufacturing. Sublessor shall maintain adequate lighting,
electrical, air conditioning and heat services to Sublessee during the term. If
Sublessor fails to maintain these services, then Sublessee may draw against the
escrow account to secure these services.

7.   PROVISIONS CONSTITUTING SUBLEASE

     This sublease is subject to all of the terms and conditions of the Master
Lease in Exhibit "A" and Sublessor shall assume and perform the obligations of
the Lessee in said Master Lease, to the extent said terms and conditions are
applicable to the Premises subleased pursuant to this Sublease. Neither
Sublessor or Sublessee shall commit or permit to be committed on the Premises
any act or omission, which shall violate any terms or condition of the Master
Lease. In the event of termination of Sublessor's interest as Lessee under the
Master Lease for any reason, then this Sublease shall terminate coincidentally
therewith without any liability of Sublessor to Sublessee other than those
remedies provided by the Security Deposit/Escrow Account, which would provide
the payment of the remaining balance of the Escrow Account to DPSS Lasers, Inc.

     As terms and conditions of this Sublease (with each reference therein to
Lessor and Lessee to be deemed to refer to Sublessor and Sublessee) and along
with all of the following paragraphs set out in this Sublease, shall be the
complete terms and conditions of this Sublease.

8.   CONTINUING RIGHTS AND OBLIGATIONS

     All rights and obligations of SiteSmith, Inc. and DPSS Lasers, Inc. to one
another shall also be obligations of any succeeding company to the extent that
there is a change of ownership or identity of either company.

9.   ASSIGNMENT OF SUBLEASE

     Sublessee shall not assign this sublease or any interest therein, nor
sublet the demised premises or any part thereof, or any right or privilege
appurtenant thereto, nor permit the occupancy or use of any part thereof by any
person without the written consent of Sublessor having first been obtained. Any
such assignment, further subletting, occupancy or use without the prior written
consent or the Sublessor shall at the option of the Sublessor terminate this
Sublease.

     IN WITNESS WHEREOF, the parties hereto have executed this Sublease in
duplicate.

Sublessor  SITESMITH, INC.,             Sublessee  DPSS LASERS, INC.,
           A CALIFORNIA CORPORATION                A CALIFORNIA CORPORATION

           ----------------------------            -----------------------------
           Marvin Tseu                             Thomas M. Hogan

           Chief Executive Officer                 Chief Executive Officer
           ----------------------------            -----------------------------

           DATED:                                  DATED:
                 ---------------------                   -----------------------

                                        2

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