Document:

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                                                                   EXHIBIT 10.21

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT is made as of September 29, 1999, between BUILDNET
INC., a corporation organized and existing under the laws of the State of North
Carolina ("BuildNet") and David Russo ("Employee").

         WHEREAS, BuildNet desires to employ Employee and Employee desires to
accept such employment on the terms and conditions hereinafter set forth; and

         WHEREAS, the parties hereby acknowledge that the goodwill, continued
patronage, names, addresses and specific business requirements of BuildNet's
clients and customers, and the designs, procedures, systems, strategies,
business methods and know-how of BuildNet, having been acquired through
BuildNet's efforts and/or the expenditure of considerable time and money, are
among the principal assets of BuildNet; and

         WHEREAS, the parties hereby acknowledge that as a result of the
position in which Employee will be employed by BuildNet, Employee will develop
special skills and knowledge peculiar to BuildNet's business, whereby Employee
has become and will continue to become, through Employee's employment with
BuildNet, acquainted with the identities of the clients and customers of
BuildNet, and has acquired and will continue to acquire access to the
techniques of BuildNet in carrying on its business, as well as other
confidential and proprietary information; and

         WHEREAS, the parties hereto acknowledge that the covenants set forth
in Sections 8 through 11 (the "Covenants") of this Agreement are necessary for
the reasonable and proper protection of BuildNet's confidential and proprietary
information (as defined herein), customer relationships, and the goodwill of
BuildNet's business, and that such Covenants constitute a material portion of
the consideration for Employee's employment hereunder;

         NOW, THEREFORE, in consideration of the premises and mutual promises
and covenants contained herein, and for other good and valuable consideration,
the receipt and legal sufficiency of which are hereby acknowledged, the parties
agree as follows.

         1.   Position; Employment. BuildNet agrees to employ Employee, and
Employee agrees to be employed, as Executive Vice President of Human Resources
of BuildNet, or in such other position as the Board of Directors may from time
to time assign. The employment of Employee shall commence and continue for the
period beginning and ending as provided in Section 7 hereof.

         2.   Performance of Duties. Employee agrees to use his best efforts to
devote his entire time and best efforts, skill, ability and attention to the
business and affairs of BuildNet and to the performance of the services and
duties as he may be assigned from time to time by the Board of Directors of
BuildNet.
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         In the performance of his responsibilities as Executive Vice President
of Human Resources, Employee shall be subject to all of BuildNet's policies,
rules and regulations applicable to its employees of comparable status.
Employee shall report directly to and be subject to the direction of the
Chairman and Board of Directors of BuildNet. Employee shall perform the duties
consistent with Employee's knowledge, experience, and position and the duties
of BuildNet employees of comparable status. Employee shall have such other
duties and responsibilities consistent with his position as the Board of
Directors of BuildNet shall from time to time reasonably assign to him. In
performing such duties, Employee shall be subject to and shall substantially
abide by all policies and procedures developed by BuildNet.

         3.    Compensation.

               (a)   Base Salary. In consideration of Employee's services
hereunder, BuildNet shall pay Employee a minimum annual base salary of One
Hundred Ninety Thousand Dollars ($190,000) per annum, less applicable statutory
deductions, payable in accordance with BuildNet's normal payroll practices (the
"Base Salary"). Employee's Base Salary shall be reviewed by the Board of
Directors of BuildNet on an annual basis and may be increased as the Board of
Directors of BuildNet deems appropriate in its sole discretion.

               (b)   Bonus. Employee shall to receive a $50,000 bonus on
December 31, 2000, provided that the Chairman of the Company and Employee
mutually determine that certain agreed upon performance criteria have been met
by Employee as of such date. Employee shall receive a bonus each calendar year
during his continued employment comparable to bonuses paid to other similarly
situated officers of BuildNet and as determined by the Board of Directors in
its sole discretion.

         4.    Stock Options. Upon the commencement of Employee's employment by
BuildNet, BuildNet shall grant to Employee incentive stock options to purchase
up to an aggregate of Fifty Thousand (50,000) shares of the Common Stock of
BuildNet, with an exercise price equal to the fair market value of the Common
Stock of BuildNet at the time of such grant. Options to purchase all such
shares shall begin to vest upon the commencement of the Term of Employment as
defined in Section 7, in monthly installments over four (4) years. Such options
shall become fully exercisable in the event of (a) a sale of all or
substantially all the assets of BuildNet or a merger or consolidation involving
BuildNet in which the shareholders of BuildNet prior to such transaction own
less than a majority of the voting securities of the entity surviving such
transaction, or (b) any transaction or series of related transactions pursuant
to which a person, entity or persons or entities under common control or acting
as a group within the meaning of Section 13(d) of the Securities Exchange Act
of 1934, as amended, acquires securities constituting at least a majority of
the voting power of BuildNet.

         5.    Employee Benefits. During the Term of this Agreement, Employee
shall be eligible to receive and/or participate in all employee benefits that
are offered by BuildNet to its employees generally.

         6.    INTENTIONALLY OMITTED.

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         7.    Term and Termination. The term of the Employee's employment
under this Agreement (the "Term of Employment") shall commence as of December
1, 1999 and continue through the date three (3) years from such date, unless
earlier terminated in accordance with the provisions of this Agreement. This
Agreement shall terminate prior to the expiration of the Term of Employment
upon the occurrence of any one of the following events.

               (a)   Cause. BuildNet may terminate this Agreement, at any time,
for Cause, with or without prior notice to Employee, in which event all
payments under this Agreement shall cease, except as provided in Section 7(d)
below. The term "Cause" as used herein shall mean (i) Employee, in carrying out
his duties hereunder, has been guilty of gross negligence or wilful and wanton
misconduct which in either case results in material harm to the financial
condition, business, assets, or prospects of BuildNet; (ii) the conviction of,
or the entering of a plea of no contest by, Employee for a felony or crime
involving moral turpitude, (iii) any act involving dishonesty in the
performance of Employee's duties hereunder, including, without limitation,
fraud, misappropriation or embezzlement, (iv) any material breach of this
Agreement by Employee, which failure cannot be cured or shall not have been
cured within thirty (30) days after receipt by Employee of written notice from
BuildNet specifying in reasonable detail the nature of such breach; or (v)
Employee fails to carry out directions (consistent with his position as set
forth in Section 1 above) of the Board of Directors of BuildNet, which failure
cannot be cured or shall not have been cured within thirty (30) days after
receipt by Employee of written notice from BuildNet specifying in reasonable
detail the failure to so carry out such directions.

               (b)   Death. This Agreement shall terminate if Employee dies
during the Term of Employment. In such event, BuildNet shall pay to the
Employee's executors, legal representatives or administrators an amount as set
forth in Section 7(d) below.

               (c)   Disability. BuildNet may terminate this Agreement if
Employee shall suffer a Disability, in which event all payments under this
Agreement shall cease, except as provided in Section 7(d) below. For purposes
of this Agreement, "Disability" shall mean that Employee has not performed his
full-time duties with BuildNet for six (6) consecutive months or an aggregate
of six (6) months within a twelve (12) month period as a result of his
incapacity due to physical or mental illness.

               (d)   Certain Payments Upon Termination. If, during the Term of
Employment, BuildNet terminates the employment of Employee for Cause, Employee
voluntarily terminates his employment with BuildNet, or upon the death or
Disability of Employee during the Term of Employment, the Term of Employment
shall terminate immediately thereafter, and BuildNet shall pay Employee or his
beneficiary such Base Salary as he may be entitled to receive for services
rendered prior to the date of such termination. In the event of any such
termination, BuildNet shall not be liable for any other payments to Employee.
If, during the Term of Employment, BuildNet terminates the employment of
Employee without Cause, the obligations of BuildNet pursuant to this Agreement,
including but not limited to Sections 3, 4 and 5, shall continue in full force
and effect for the remainder of the Term of Employment.

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         8.    Restrictive Covenants.

               (a)   Noncompetition. During the term of his employment, and for
a period of two (2) years after the termination or cessation of Employee's
employment with BuildNet, regardless of manner or cause of termination,
Employee agrees that, within the geographic area described in Section 8(e)
hereof, he will not: (i) engage in, manage, operate, control or supervise, or
participate in the management, operation, control or supervision of, any
business or entity which provides products or services competitive with those
then currently provided by BuildNet; or (ii) have any ownership or financial
interest, directly or indirectly, in any entity which provides products or
services competitive with those then currently provided by BuildNet, including,
without limitation, as an individual, partner, shareholder (other than as a
shareholder of a publicly-owned corporation in which Employee owns less than 1%
of the outstanding shares of such corporation), officer, director, employee,
member, associate, principal, agent, representative or consultant, and shall
not in any other manner, directly or indirectly, compete to any extent with
such business of BuildNet.

               (b)   Restriction on Solicitation of Customers. Employee agrees
that he will not (in addition to any other restriction on his activities), for
a period of two (2) years immediately following Employee's termination, on his
own behalf or on behalf of any other person or entity, directly or indirectly
call on or otherwise contact customers of BuildNet on or prior to the date of
termination or cessation of Employee's employment with BuildNet (the
"Restricted Customers") within the geographic area described in Section 8(e)
hereof, for the purpose of selling products or services to the Restricted
Customers that are competitive with those provided by BuildNet.

               (c)   Restriction on Solicitation of Employees. Employee agrees
that he will not, for a period of two (2) years immediately following
Employee's termination, directly or indirectly contact, solicit, interfere with
or attempt to entice in any form, fashion or manner any employee of BuildNet:
(i) for the purpose of inducing that employee to work with or for Employee (or
with a person or business entity with which employee is affiliated); or (ii) to
terminate his employment with BuildNet.

               (d)   Confidentiality. Employee will not at any time, whether
during or after the termination of his employment, reveal to any person or
entity any of the trade secrets or confidential information concerning the
organization, business or finances of BuildNet or of any third party that
BuildNet is under an obligation to keep confidential (including but not limited
to trade secrets or confidential information respecting inventions, research,
products, designs, methods, know-how, formulae, techniques, systems, processes,
software programs, works of authorship, customer lists, projects, plans and
proposals), except as may be required in the ordinary course of performing his
duties as an employee of BuildNet, and Employee shall keep secret all matters
entrusted to him and shall not use or attempt to use any such information in
any manner that may injure or cause loss to BuildNet.

               (e)   Geographic Scope of Restrictive Covenants. The geographic
area in which Employee shall not engage in any of the prohibited activities
listed in subsections 8(a) and 8(b) hereof shall be limited to the United
States.

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         9.    Employee Developments. If at any time or times during Employee's
employment, Employee shall (either alone or with others) make, conceive,
discover or reduce to practice any invention, modification, discovery, design,
development, improvement, process, software program, work of authorship,
documentation, formula, data, technique, know-how, secret or intellectual
property right whatsoever or any interest therein (whether or not patentable or
registrable under copyright or similar statutes or subject to analogous
protection) (herein called "Developments") that relates to the business of
BuildNet or any of the products or services being developed, manufactured or
sold by BuildNet or that may be used in relation therewith, such Developments
and the benefits thereof shall immediately become the sole and absolute
property of BuildNet and its assigns, and Employee shall promptly disclose to
BuildNet each such Development and hereby assigns any rights Employee may have
or acquire in the Developments and benefits and/or rights resulting therefrom
to BuildNet and its assigns without further compensation and shall communicate,
without cost or delay, and without publishing the same, all available
information relating thereto to BuildNet. Upon the request of BuildNet, the
Employee will execute and deliver all documents and do other acts which are or
may be necessary to document such transfer or to enable BuildNet to file and
prosecute applications for and to acquire, maintain, extend and enforce any and
all patents, trademark registrations or copyrights under United States or
foreign law with respect to any such developments.

         Notwithstanding the foregoing, this Agreement shall not be construed
to apply to, and shall not create any assignment of, any Developments of the
Employee that are covered by Section 66-57.1 of the North Carolina General
Statutes, a copy of which is attached hereto as Exhibit A.

         10.    Existing Developments. Employee represents that the
Developments, if any, identified on Exhibit B attached hereto comprise all the
unpatented and uncopyrighted Developments that Employee has made or conceived
prior to or otherwise not in connection with Employee's employment by BuildNet,
which Developments are excluded from this Agreement. Employee understands that
it is necessary only to list the title and purpose of such Developments but not
details thereof.

         Employee further represents that Employee's performance of all the
terms of this Agreement and as an employee of BuildNet does not and will not
breach any agreement to keep in confidence proprietary information acquired by
Employee in confidence or in trust prior to Employee's employment by BuildNet.
Employee has not entered into, and Employee agrees he will not enter into, any
agreement either written or oral in conflict herewith.

         11.    Return of BuildNet Property. Upon the termination of Employee's
employment with BuildNet for any reason, Employee shall leave with or return to
BuildNet all personal property belonging to BuildNet ("BuildNet Property") that
is in Employee's possession or control as of the date of such termination of
employment, including, without limitation, all records, papers, drawings,
notebooks, specifications, marketing materials, software, reports, proposals,
equipment, or any other device, document or possession, however obtained,
whether or not such BuildNet Property contains confidential or proprietary
information of BuildNet as described in Section 8(d) hereof.

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         12.    Enforcement of the Covenants. Employee acknowledges and agrees
that the Covenants contained in Sections 8 through 11 of this Agreement are
reasonably necessary to the protection of BuildNet's business, that a violation
of any of the Covenants contained in Sections 8 through 11 of this Agreement
would result in immediate and irreparable harm to BuildNet and that BuildNet's
remedies at law and/or the award of monetary damages would be inadequate relief
for such a violation. Therefore, Employee's violation or threatened violation
of any of the Covenants contained in Sections 8 through 11 of this Agreement
will give BuildNet the right to enforce such Covenants through specific
performance, temporary restraining order, preliminary or permanent injunction,
and other equitable relief. These remedies will be cumulative and in addition
to any other remedies that BuildNet may have. In addition, Employee agrees that
the Covenants contained in Sections 8 through 11 will be extended by a length
of time equal to the period of time running from the filing of any action to
enforce or challenge the validity of the Covenants to the date of a final
judgment (after appeals, if any) or settlement of said litigation, or the
expiration of all applicable appeal periods after the entry of judgment in said
litigation, whichever event last occurs.

         13.    Waiver of Breach. Any waiver by BuildNet of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of
any subsequent breach of such provision or any other provision hereof.

         14.    Validity and Survival of the Covenants. Employee acknowledges
and agrees that the Covenants contained in this Agreement are exchanged for
valid and reasonable consideration, are reasonably necessary to protect
BuildNet's legitimate interests, are reasonable with respect to time duration
and geographic scope, do not interfere with the interests of the public, and
that the descriptions of prohibited activities contained in the covenants are
sufficiently precise and definite to inform me of the scope of the Covenants.
The Covenants contained Sections 8 through 11 of this Agreement will survive
termination of Employee's employment. Employee agrees that the existence of any
claim or cause of action that he may have against BuildNet, whether based on
this Agreement or otherwise, will not constitute a defense to BuildNet's
enforcement of the Covenants.

         15.    Severability. Employee hereby agrees that each provision herein
shall be treated as a separate and independent clause, and the unenforceability
of any one clause shall in no way impair the enforceability of any of the other
clauses herein. Moreover, if one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to scope,
duration, territory, activity or subject so as to be unenforceable at law, such
provision or provisions shall be construed by the appropriate judicial body by
limiting and reducing it or them, so as to be enforceable to the extent
compatible with the applicable law as it shall then appear. In particular, in
the event that the provisions of Sections 8(a) and 8(b) are found to be
unenforceable or void (either in whole or in part) then the offending portion
shall be construed as valid and enforceable only to the extent permitted by
law, and the balance of this Agreement will remain in full force and effect. It
is the intention of the parties to restrict the activities of Employee only to
the extent necessary to protect the legitimate business interests of BuildNet
and not to deprive Employee of the right to earn a livelihood. Employee agrees
that this Agreement is reasonably necessary to protect BuildNet's legitimate
business interests.

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         16.   Binding Effect. Employee's obligations under this Agreement
shall survive the termination of Employee's employment regardless of the manner
of such termination and shall be binding upon Employee's heirs, executors,
administrators and legal representatives.

         17.   Assignment. BuildNet shall have the right to assign this
Agreement to its successors and assigns, and all covenants and agreements
hereunder shall inure to the benefit of and be enforceable by said successors
or assigns. This Agreement may be amended only in a writing signed by each of
the parties hereto.

         18.   Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of North Carolina. This Agreement may
be executed in counterparts.

         19.   Entirety. This Agreement, including any exhibits hereto, as it
may be amended pursuant to the terms hereof, represents the complete and final
agreement of the parties and shall control over any other statement,
representation or agreement by BuildNet (e.g., as may appear in employment or
policy manuals). This Agreement supersedes any prior negotiations, discussions
or written agreements between the parties with regard to the subject matter
hereof.

                     [THE NEXT PAGE IS THE SIGNATURE PAGE]

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         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and their seals affixed hereto as of the day and year first
above written.

                                          BUILDNET INC.

                                          By:   /s/ Keith T. Brown
                                              -----------------------------
                                          Name:    Keith T. Brown
                                               ----------------------------
                                          Title:  Chairman
                                                ---------------------------

                                          EMPLOYEE

                                            /s/ David Russo             (SEAL)
                                          -----------------------------
                                          David Russo

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                                                                       EXHIBIT A

             SECTION 66-57.1 OF THE NORTH CAROLINA GENERAL STATUTES

         Any provision in an employment agreement which provides that the
[employee] shall assign or offer to assign any of his rights in an invention to
his employer shall not apply to an invention that the employee developed
entirely on his own time without using the employer's equipment, supplies,
facility or trade secret information except for those inventions that:

         (i)    relate to the employer's business or actual or demonstrably
                anticipated research or development, or

         (ii)   result from any work performed by the employee for the
                employer.

         To the extent a provision in an employment agreement purports to apply
to the type of invention described, it is against the public policy of this
State and [is] unenforceable. The employee shall bear the burden of proof in
establishing that his invention qualifies under this section.
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                                                                       EXHIBIT B

                         PRIOR DEVELOPMENTS BY EMPLOYEE

         The following is a complete list of all unpatented and uncopyrighted
Developments relevant to the subject matter of my employment by BuildNet that
have been made or conceived by me prior to or otherwise not in connection with
my employment by BuildNet.

[X]         No inventions or improvements.

[ ]         All such inventions as are described below:

[ ]         Additional sheets attached.

                                                 /s/ David Russo
                                                 ----------------------------
                                                 David Russo<PAGE>   1

                                                                  EXHIBIT 10.22

                            MASTER SERVICES AGREEMENT
                                     between
                       ELECTRONIC DATA SYSTEMS CORPORATION
                                       and
                                 BUILDNET, INC.

Portions of this exhibit marked by [*] have been omitted pursuant to a request
for confidential treatment.

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                            MASTER SERVICES AGREEMENT

THIS MASTER SERVICES AGREEMENT (the "Agreement"), dated as of December 18, 1998,
documents the business relationship between BuildNet, Inc., a North Carolina
corporation ("BuildNet"), and Electronic Data SYSTEMS CORPORATION, a Delaware
corporation ("EDS"), and describes the terms and conditions under which EDS will
perform for BuildNet the information technology services described below.

1.       TERM. The term of this Agreement will begin on December 1, 1998 (the
         "Effective Date"), and, unless earlier terminated as provided in this
         Agreement, will continue through December 30, 2003. Such original term
         may be extended by mutual written agreement of the parties.

2.       EDS SERVICES. BuildNet agrees to afford EDS the opportunity to make a
         proposal on all information technology projects for which BuildNet
         contemplates using third party resources during the term of this
         Agreement. During the term of this Agreement, the parties may agree
         upon Work Orders, which Work Orders shall be generally in the format
         specified in ATTACHMENT A hereto, and shall consist of an Exhibit A
         which shall describe the services EDS will perform and the deliverables
         EDS will produce (the "EDS Services"); an Exhibit B describing the
         obligations of BuildNet; an Exhibit C describing the payments due to
         EDS for the EDS Services; and, if required, an Exhibit D specifying any
         terms and conditions unique to that Work Order. In the event a conflict
         between a Work Order and the body of this Agreement should arise, the
         body of this Agreement will take precedence. Work Orders shall be
         numbered sequentially beginning with the number one (1) and when
         executed shall be attached hereto and made a part hereof.

3.       REPRESENTATIVES. During the term of this Agreement, EDS and BuildNet
         will each maintain a representative who will be its primary point of
         contact in dealing with the other under this Agreement and will have
         the authority and power to make decisions with respect to actions to be
         taken by it under this Agreement. Either party may change its
         representative by giving notice to the other of the new representative
         and the date upon which such change will become effective. In
         performing its obligations under this Agreement, EDS will be entitled
         to rely upon any routine instructions, authorizations, approvals or
         other information provided to EDS by BuildNet's representative or, as
         to areas of competency specifically identified by such representative,
         by any other BuildNet personnel identified by BuildNet's
         representative, from time to time, as having authority to provide the
         same on behalf of BuildNet in such person's area of competency.
         BuildNet will inform EDS in writing of areas where BuildNet intends to
         rely on EDS as the subject matter experts, and in those areas EDS will
         incur the responsibility under this agreement for that ensuring proper
         decisions are made, subject to revision based on changes initiated by
         BuildNet. Unless EDS knew of any error, incorrectness or inaccuracy in
         such instructions, authorizations, approvals or other information, EDS
         will incur no liability or responsibility of any kind in relying on or
         complying with any such instructions, authorizations, approvals or
         other information.

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4.       BUILDNET'S ROLE. During the term of this Agreement and in addition to
         the other obligations of BuildNet described herein, BuildNet will, at
         its own cost and expense, have the obligations to EDS described in any
         Work Orders agreed to by the parties.

5.       PAYMENT. In consideration for the performance of the EDS Services,
         BuildNet will pay to EDS the charges set forth in any Work Orders
         agreed to by the parties as such charges may be adjusted from time to
         time as provided in such Work Order. In addition, BuildNet will pay or
         reimburse EDS for (a) all reasonable out-of-pocket expenses (not to
         exceed $5,000 without BuildNet's prior written consent) incurred by EDS
         in the performance of the EDS Services specified in any Work Orders
         agreed to by the parties, and (b) all taxes, assessments, duties,
         permits and fees, however designated, that are levied upon this
         Agreement, the EDS Services or the software, equipment, materials or
         other property, or their use, provided hereunder, excluding taxes based
         on the income of EDS. EDS will submit a written invoice to BuildNet
         monthly in arrears reflecting the amount owed to EDS by BuildNet for
         the previous month, with such supporting documentation as BuildNet
         reasonably requests, and BuildNet will pay the invoiced amount by the
         15th day following receipt by BuildNet of the invoice, unless otherwise
         agreed on a particular Work Order. Any past due amounts will bear
         interest until paid at a rate of interest equal to the lesser of (i)
         the prime rate established from time to time by Citibank of New York
         plus two percent (2%), or (ii) eighteen percent (18%).

6.       EMPLOYEES. The EDS personnel performing the EDS Services will be and
         remain the employees of EDS, and EDS will provide for and pay the
         compensation and other benefits of such employees, including salary,
         health, accident and workers' compensation benefits and all taxes and
         contributions which an employer is required to pay relating to the
         employment of employees. During the term of this Agreement and for a
         period of twelve (12) months thereafter, neither party will solicit,
         directly or indirectly, for employment or employ any employee of the
         other who is or was involved in the performance of the EDS Services
         without the prior written consent of the employing party.

7.       CONFIDENTIALITY AND ANNOUNCEMENTS. EDS and BuildNet will have the
         confidentiality obligations set forth in ATTACHMENT B. Neither party
         will make any media release or other public announcement relating to or
         referring to this Agreement without the other's prior written consent,
         such consent not to be unreasonably withheld.

8.       WARRANTIES AND ADDITIONAL COVENANTS. EDS and BuildNet will have the
         obligations relating to warranties and additional covenants set forth
         in ATTACHMENT C.

9.       OWNERSHIP. Each party will retain all rights it possessed prior -,o the
         date of this Agreement in any software, ideas, concepts, know-how,
         development tools, techniques or any other proprietary material or
         information that may be used by such party in connection with its role
         relating to the performance of the EDS Services. Should EDS acquire
         third party owned software on BuildNet's behalf and subsequently
         deliver such software to BuildNet either as a standalone product, or as
         part of a Deliverable hereunder,

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         such software will be and remain the property of such vendor and
         BuildNet agrees to comply with such third party software owners'
         license terms and conditions. Subject to such third party rights or
         restrictions and the other provisions of this SECTION 9, [*] the
         deliverables developed hereunder, (including source code, development
         and user documentation, test plans, build scripts and installation
         processes required for BuildNet to continue to maintain and develop the
         deliverables in the event of termination of this agreement) that (a)
         are described in an Exhibit A to a Work Order hereto, (b) are developed
         and delivered by EDS under this Agreement, and (c) are paid for by
         BuildNet (the "Deliverables"). Notwithstanding anything to the contrary
         in this Agreement, EDS (i) will retain all right, title and interest in
         and to all development tools, know-how, methodologies, processes,
         technologies or algorithms used in performing the EDS Services which
         are based on trade secrets or proprietary information of EDS or are
         otherwise owned or licensed by EDS, (ii) will be free to use the ideas,
         concepts and know-how which are developed in the course of performing
         the EDS Services and may be retained by EDS' employees in intangible
         form, and (iii) will retain ownership of any EDS-owned software or
         development tools that are used in producing any work product and
         become embedded therein. EDS hereby grants to BuildNet a perpetual
         (subject to compliance with this sentence), royalty-free, nonexclusive
         license to use, sell, copy or distribute such embedded software and
         tools (if any) solely in connection with BuildNet's use and
         exploitation of the Deliverables and only so long as such software and
         tools (if any) remain embedded in the Deliverables or any improvements
         thereto or derivative works thereof and are not separated therefrom. No
         licenses will be deemed to have been granted by either party to any of
         its patents, trade secrets, trademarks or copyrights, except as
         otherwise expressly provided in this Agreement.

10.      TERMINATION. If either party materially or repeatedly defaults in the
         performance of any of its obligations under this Agreement, which
         default (a) if of a non-monetary nature, is not substantially cured
         within thirty (30) days after notice is given to the defaulting party
         specifying the default or, with respect to those defaults that cannot
         reasonably be cured within thirty (30) days, should the defaulting
         party fail to proceed within thirty (30) days to commence during the
         default and thereafter to proceed with all reasonable diligence to
         substantially cure the default, or (b) if of a monetary nature, is not
         cured within 10 days after notice is given to the defaulting party
         specifying the default, the party not in default may, by giving notice
         thereof to the defaulting party, terminate this Agreement as of a date
         specified in such notice of termination. Upon expiration or termination
         of this Agreement for any reason, EDS will cease to perform the EDS
         Services for BuildNet, and BuildNet will pay to EDS all sums due to EDS
         as a result of the EDS Services performed and expenses incurred through
         the effective date of such expiration or termination (prorated as
         appropriate). Expiration or termination of this Agreement for any
         reason will not release either party from any liabilities or
         obligations set forth in this Agreement which (a) the par-ties have
         expressly agreed will survive any such expiration or termination or (b)
         remain to be performed or by their nature would be intended to be
         applicable following any such expiration or termination.

Portions of this exhibit marked by [*] have been omitted pursuant to a request
for confidential treatment.

                                       4
<PAGE>   5

11.      INDEMNITIES. EDS and BuildNet will have the indemnity obligations set
         forth in ATTACHMENT D.

12.      LIABILITY. Each party's liability to the other for any damages arising
         out-of or related to this Agreement, regardless of the form of action
         that imposes liability, whether in contract, equity, negligence,
         intended conduct, tort or otherwise, will be limited to and will not
         exceed. in the aggregate for all claims, actions and causes of action
         of every kind and nature, the lesser of (a) the aggregate amount which
         BuildNet has paid EDS for the nine (9) month period directly preceding
         the first event, act or omission on which such liability is based, or
         (b) two million dollars ($2,000,000) in no event will the measure of
         damages payable by EDS include, nor will EDS be liable for, any amounts
         for loss of income, profit or savings or indirect, incidental,
         consequential, exemplary, punitive or special damages of any party,
         including third parties, even if such party has been advised of the
         possibility of such damages in advance, and all such damages are
         expressly disclaimed. No claim. demand for mediation or arbitration or
         cause of action which arose out of an event or events which occurred
         more than three (3) years prior to the filing of a demand for mediation
         or arbitration or suit alleging a claim or cause of action may be
         asserted by either party against the other. The provisions of this
         SECTION 12 will survive the expiration or termination of this Agreement
         for any reason.

13.      MEDIATION ARBITRATION. Any dispute, controversy or claim arising under,
         out of, in connection with or in relation to this Agreement, or the
         breach, termination, validity or enforceability of any provision hereof
         (a "Dispute"), if not resolved informally through negotiation between
         the parties, will be submitted to non-binding mediation. The parties
         will mutually determine who the mediator will be from a list of
         mediators obtained from the American Arbitration Association office
         located in the city determined as set forth below in this SECTION 13
         (the "AAA"). If the parties are unable to agree on the mediator. The
         mediator will be selected by the AAA. If any Dispute is not resolved
         through mediation, it will be resolved by final and binding arbitration
         conducted in accordance with and subject to the Commercial Arbitration
         Rules of the AAA then applicable. One arbitrator will be selected in
         accordance with such rules, and the arbitrators will allow such
         discovery as is appropriate, consistent with the purposes of
         arbitration in accomplishing fair, speedy and cost effective resolution
         of disputes. The arbitrator will reference the rules of evidence of the
         Federal Rules of Civil Procedure then in effect in setting the scope of
         discovery. Judgment upon the award rendered in any such arbitration may
         be entered in any court having jurisdiction thereof, or application may
         be made to such court for a judicial acceptance of the award and an
         enforcement, as the law of such jurisdiction may require or allow. Any
         negotiation, mediation or arbitration conducted pursuant to this
         SECTION 13 will take place in Plano, Texas, if initiated by BuildNet,
         and in Research Triangle Park, North Carolina, if initiated by EDS.
         Other than those matters involving injunctive relief or any action
         necessary to enforce the award of the arbitrator, the parties agree
         that the provisions of this SECTION 13 are a complete defense to any
         suit, action or other proceeding instituted in any court or before any
         administrative tribunal with respect to any Dispute or the performance
         of the EDS Services by EDS. Nothing in

                                       5
<PAGE>   6

         this SECTION 13 prevents the parties from exercising their right to
         terminate this Agreement in accordance with Section 10.

14.      EXCUSED PERFORMANCE. Neither party will be deemed to be in default
         hereunder, or will be liable to the other, for failure to perform any
         of its non-monetary obligations under this Agreement for any period and
         to the extent that such failure results from acts or omissions of the
         other party, natural disasters, riots, war, civil disorder, or any
         other causes beyond that party's reasonable control (including failures
         or fluctuations in electrical power, heat, light, air conditioning or
         telecommunications equipment or lines) and which it could not have
         prevented by reasonable precautions or could not have remedied by the
         exercise of reasonable efforts.

15.      EXPORT REGULATIONS. This Agreement is expressly made subject to any
         United States government laws, regulations, orders or other
         restrictions regarding export from the United States of computer
         hardware, software, technical data or derivatives of such hardware,
         software or technical data. Notwithstanding anything to the contrary in
         this Agreement, BuildNet will not directly or indirectly export (or
         reexport) any computer hardware, software, technical data or
         derivatives of such hardware, software or technical data or permit the
         shipment of same: (a) into (or to a national or resident of) Cuba,
         North Korea, Iran, Iraq, Libya, Syria or any other country to which the
         United States has embargoed goods; (b) to anyone on the U.S. Treasury
         Department's List of Specially Designated Nationals, List of Specially
         Designated Terrorists or List of Specially Designated Narcotics
         Traffickers, or the U.S. Commerce Department's Denied Parties List; or
         (c) to any country or destination for which the United States
         government or a United States governmental agency requires an export
         license or other approval for export without first having obtained such
         license or other approval. The provisions of this SECTION 15 will
         survive the expiration or termination of this Agreement for any reason.

16.      RIGHT TO ENGAGE IN OTHER ACTIVITIES. BuildNet acknowledges and agrees
         that, EDS may provide data processing and other information technology
         services for third parties at any EDS facility that EDS may utilize
         from time to time for performing the EDS Services. Nothing in this
         Agreement will impair EDS' right, subject to the provisions of
         ATTACHMENT B, to acquire, license, market. distribute, develop for
         itself or others or have others develop for EMS similar technology
         performing the same or similar functions as the technology and EDS
         Services contemplated by this Agreement.

17.      NOTICES. All notices under this Agreement will be in writing and will
         be deemed to have been duly given if delivered personally or by a
         nationally recognized courier service, faxed or mailed by registered or
         certified mail, return receipt requested, postage prepaid, to the
         parties at the addresses set forth herein. All notices under this
         Agreement that are addressed as provided in this SECTION 17, (a) if
         delivered personally or by a nationally recognized courier service,
         will be deemed given upon delivery, (b) if delivered by facsimile, will
         be deemed given when confirmed and (c) if delivered by mail in the
         manner described above, will be deemed given on the fifth (5th)
         business day after the day it is deposited in a regular depository of
         the United States mail. Either party may

                                       6
<PAGE>   7

         change its address or designee for notification purposes by giving
         notice to the other of the new address or designee and the date upon
         which such change will become effective.

18.      MARKETING AND PROMOTIONAL ACTIVITIES. EDS will use commercially
         reasonable efforts to promote and market BuildNet and BuildNet Products
         as The electronic commerce standard for the building industry. If
         applicable, any such promotional or marketing services of BuildNet and
         BuildNet Products shall include displays of promotional material
         substantially comparable to displays for other electronic commerce
         products and services. Examples of such services would include trade
         shows, EDS web site. EDS customer literature, advertisements, event
         sponsorships, and sales agent training.

                                       7
<PAGE>   8

         A. PROMOTIONAL MATERIAL. BuildNet shall, at its own expense, provide
         EDS with marketing material that BuildNet deems necessary in order for
         EDS to fulfill its obligations pursuant to this Agreement. Any
         promotional, sample or demonstration material, including without
         limitation software on CDs or diskettes, brochures, and other printed
         material provided by BuildNet to EDS shall remain the sole property of
         BuildNet. EDS shall have full responsibility for keeping such material
         in proper condition during the entire time that the material is in its
         possession. Any reproductions made by EDS are strictly for marketing
         promotions and are not intended to be a source of revenue for EDS.

         B. RIGHT TO USE TRADEMARKS, TRADENAMES AND LOGOS OF BUILDNET. BuildNet
         hereby grants to EDS the nonexclusive right and license to use the
         BuildNet name, trade names, trademarks, logo and service marks
         (collectively referred to as the "Company Marks") solely in connection
         with the promotion and marketing of BuildNet and BuildNet Products.
         Either separately or in conjunction with any BuildNet trademark or
         tradename, EDS agrees to include any notices that BuildNet may
         reasonably request when using the Company Marks. In ' using the Company
         Marks, EDS agrees to abide by BuildNet's Trademark Usage Guidelines,
         separately provided by BuildNet to EDS, as they may be amended from
         time to time.

         C. COMMERCIALLY REASONABLE EFFORTS. EDS agrees to use commercially
         reasonable efforts to promote and market BuildNet and BuildNet Products
         to its customers, as appropriate.

19.      OTHER. Where agreement, approval, acceptance or consent of either party
         is required by this Agreement, such action will not be unreasonably
         withheld or delayed. If any provision (other than a provision relating
         to any payment obligation) of THIS Agreement or the application thereof
         to any persons or circumstances is, to any extent, held invalid or
         unenforceable, the remainder of this Agreement or the application of
         such provision to persons or circumstances other than those as to which
         it is invalid or unenforceable will not be affected thereby, and each
         provision of this Agreement will be valid and enforceable to the extent
         permitted by law. Nothing in this Agreement may be relied upon or will
         benefit any party other than EDS and BuildNet. This Agreement (a) will
         be governed by the substantive laws of the State of Texas (without
         giving effect to any choice-of-law rules that may require the
         application of the laws of another jurisdiction), (b) may not be
         assigned by either party without the prior written consent of the other
         (except that EDS will have the right to subcontract portions of the EDS
         Services to be performed by it so long as EDS remains responsible for
         such performance), and (c) together with the attachments hereto (each
         of which are incorporated into this Agreement by this reference),
         constitutes the entire agreement of the parties with respect to the
         subject matter hereof, superseding all previous representations,
         understandings or agreements with respect thereto.

In Witness Whereof, the parties have duly executed and delivered this Agreement
as of Effective Date.

                                       8
<PAGE>   9

BUILDNET, INC.
     By:   /s/ Keith T. Brown
        ----------------------------------------------------------------------
     Typed Name:    Keith T. Brown
                --------------------------------------------------------------
     Title:    President/CEO
            ------------------------------------------------------------------
     Date:     12/31/98
           -------------------------------------------------------------------
     Address: 4815 Emperor Blvd. - Suite 214 in Durham. North Carolina 27703

ELECTRONIC DATA SYSTEMS CORPORATION
     By:   /s/ Randy Wiele
        ----------------------------------------------------------------------
     Typed Name:    Randy Wiele
                --------------------------------------------------------------
     Title:    Vice President - Electronic Commerce
            ------------------------------------------------------------------
     Date:     12/31/98
          --------------------------------------------------------------------
              Address: 5400 Legacy Drive Plano, Texas 75024

                                       9
<PAGE>   10

[Date]

BuildNet, Inc.
4815 Emperor Blvd. - Suite 214
Durham, NC 27703
Attention:
          ----------------------

Re: Work Order No.
                  --------------

This letter ("Work Order No. _____") will confirm the mutual understanding and
agreement of BuildNet, Inc. ("BuildNet") and Electronic Data Systems Corporation
("EDS") as to the terms on which EDS will provide to BuildNet the Services
described in this Work Order No. ____, which terms are as follows:

1.       This Work Order No. _____ is entered into by the parties under the
         provisions of that certain Master Services Agreement, dated as of
         ____, ________ , between BuildNet and EDS (the "Agreement"), and,
         except as otherwise provided in this Work Order No._____, all
         applicable provisions of the Agreement are incorporated into this
         Work Order No.____ by this reference.

2.       The term of this Work Order No. _____ will commence ___________ ,
         _____ on ______ and, unless earlier terminated as provided in the
         Agreement or this Work Order No._____ will expire on _________. The
         term of this Work Order No._____ may be extended by the mutual
         written agreement of the Parties.

3.       During the term of this Work Order No. __________ , EDS will provide to
         BuildNet the Services described in the attached Exhibit A.

4.       In connection with the Services provided by EDS under this Work Order
         No. _____ , BuildNet will provide to EDS the support and resources
         described in the attached Exhibit B.

5.       For the Services provided by EDS under this Work Order No. _______ ,
         BuildNet will pay to EDS the amounts specified in the attached Exhibit
         C, as such amounts are adjusted from time to time as provided in
         Exhibit C.

6.       The Services provided by EDS under this Work Order No. _______ will be
         subject to the additional provisions (if any) set forth in the attached
         Exhibit D.

Please indicate your agreement to the foregoing by signing both copies of this
Work Order No.______ and returning one fully executed copy to EDS.

ELECTRONIC DATA SYSTEMS CORPORATION

                                       10
<PAGE>   11

---------------------------------------
Randy Wiele
Vice President - Electronic Commerce

Accepted and Agreed:

BUILDNET, INC.

By:
   ------------------------------------
Typed Name:
Title:
Date:

                                       11

<PAGE>   12

                                    EXHIBIT A

                                  EDS SERVICES

                                       12
<PAGE>   13

                                    EXHIBIT B

                              BUILDNET OBLIGATIONS

1.       FACILITIES. BuildNet will provide to EDS at Research Triangle Park, NC
         (the "BuildNet Facilities") the following items, which will be used by
         EDS only to provide the EDS Services: space, parking, office
         furnishings, janitorial service, computer hardware, computer software,
         voice communication services, data communication services, utilities
         (including heat and air conditioning), office-related equipment (such
         as telephones, file cabinets and desks), supplies, duplicating and
         facsimile equipment and services and premises security services, in
         each case as are required for EDS to perform the EDS Services. BuildNet
         will give EDS access to such facilities twenty-four (24) hours a day,
         seven (7) days a week, subject to any constraints imposed under
         applicable leases. BuildNet will provide the BuildNet Facilities and
         the items described in this SECTION 1 in a manner such that they (a)
         are kept free of health and safety hazards, (b) comply with and are
         maintained in compliance with all applicable local, state and federal
         laws, including the Americans with Disabilities Act, and (c) meet such
         operational, environmental and safety requirements as are required for
         EDS to perform the EDS Services.

2.       HARDWARE. BuildNet will provide to EDS access to such items of BuildNet
         hardware and related equipment (including personal computers,
         terminals, printers, remote job entry workstations and similar
         equipment), as well as telecommunications lines and equipment, at the
         BuildNet Facilities as EDS reasonably requests in connection with the
         performance by EDS of the EDS Services. Further, with respect to any
         leased hardware and related equipment, BuildNet will obtain any
         consents from its vendors as are necessary for EDS to use such hardware
         and equipment in performing the EDS Services. BuildNet will be
         responsible for obtaining any such consents and for finding an
         alternative solution in the event a vendor refuses consent. For
         purposes of this Agreement, "access" means the enjoyment of physical
         and legal use and operation of a specified item of property as required
         for EDS to perform its obligations under this Agreement.

3.       SOFTWARE. BuildNet will provide, or cause to be provided, to EDS the
         right to access BuildNet-owned software and software licensed to
         BuildNet or a customer of BuildNet by a vendor if such is required for
         EDS to perform the EDS Services, but for no other purpose. BuildNet
         will be responsible for obtaining any such consents, licenses or other
         rights and for finding an alternative solution in the event a vendor
         refuses consent.

4.       PERSONNEL RESOURCES. BuildNet will provide and make available to EDS
         appropriate management and technical personnel of BuildNet who ,&U work
         with EDS and will perform or ensure the performance of, on a timely
         basis, those activities referenced in Exhibit B of any Work Order, the
         responsibility for which is required therein to be assumed by BuildNet.
         In addition. BuildNet will cooperate with EDS through making available
         such -personnel, management decisions, information, authorizations,
         business

                                       13
<PAGE>   14

         plans, approvals and acceptances in order that EDS' performance of the
         EDS Services may be properly, timely and efficiently accomplished.

                                       14
<PAGE>   15

                                    EXHIBIT C

                                PAYMENTS DUE EDS

                                       15
<PAGE>   16

                                    EXHIBIT D

                              ADDITIONAL PROVISIONS

                                       16
<PAGE>   17

                                  ATTACHMENT B

                                 CONFIDENTIALITY

         1. SCOPE OF OBLIGATION. Except as otherwise expressively provided in
this Agreement, EDS and BuildNet each agree that (a) all information
communicated to it by the other and identified in writing as confidential, or
disclosed orally or visually if identified as confidential at the time of
disclosure and if summarized in writing and provided to the other party promptly
after such oral or visual disclosure whether before or after The date hereof,
(b) all information constituting part of the Deliverables in connection with the
EDS Services, whether before or after the date hereof, and (c) this Agreement
and the parties' rights and obligations hereunder, will be and will be deemed to
have been received in confidence and will be used only for purposes of this
Agreement, and each of E-EDS and BuildNet agrees to use the same means as it
uses to protect its own confidential information, but in no event less than
reasonable means, to prevent the disclosure and to protect the confidentiality
thereof. No such information will be disclosed by the recipient party without
the prior written consent of the other party; provided, however, that each party
may disclose this Agreement and the other party s confidential information to
those of the recipient party's attorneys, auditors, insurers (if applicable),
subcontractors and full time employees who have a need to have access to such
information in connection with their employment (or engagement, if applicable)
by the recipient party. Compliance by each of the persons referenced in the
preceding sentence with the confidentiality obligations set forth in this
ATTACHMENT B will remain the responsibility of the party employing or engaging
such persons.

2.       EXCEPTIONS. The foregoing will not prevent either party from disclosing
         information that belongs to such party or (i) is already known by the
         recipient party without an obligation of confidentiality other than
         under this Agreement, (ii) is publicly known or becomes publicly known
         through no unauthorized act of the recipient party, or (iii) is
         rightfully received from a third party. If confidential information is
         required to be disclosed pursuant to a requirement of a governmental
         authority, such confidential information may be disclosed pursuant to
         such requirement so long as the party required to disclose the
         confidential information, to the extent possible, provides the other
         party with timely prior notice of such requirement and coordinates with
         such other party in an effort to limit the nature and scope of such
         required disclosure. if confidential information is required to be
         disclosed in connection with the conduct of any mediation or
         arbitration proceeding carried out pursuant to SECTION 13 of this
         Agreement, such confidential information may be disclosed pursuant to
         and in accordance with the approval and at the direction of the
         mediator or arbitrator, as the case may be, conducting such proceeding.
         Upon written request at the expiration or termination of this Agreement
         for any reason, all documented confidential information land all copies
         thereof) owned by the requesting party will be returned to the
         requesting party or will be destroyed, with written certification
         Thereof being given to the requesting party. The provisions of this
         ATTACHMENT B will survive the expiration or termination of this
         Agreement for any reason.

                                       17
<PAGE>   18

3.       Notwithstanding the foregoing, EDS acknowledges and agrees that
         BuildNet is engaged principally m the business of offering electronic
         commerce products and services to the building industries and that
         nothing disclosed to BuildNet by EDS hereunder shall in any way
         preclude BuildNet from engaging in such business in the ordinary,
         course consistent with BuildNet's business plans.

                                       18
<PAGE>   19

                                  ATTACHMENT C

                       WARRANTIES AND ADDITIONAL COVENANTS

1.       PERFORMANCE. EDS represents and warrants that ail EDS Services will be
         performed in a professional and workmanlike manner in accordance with
         industry standards.

2.       BUILDNET INFORMATION. BuildNet represents and warrants that the
         information furnished by BuildNet to EDS on which EDS based the
         description of the EDS Services and the charges to be paid by BuildNet
         therefor, in each case as set forth in this Agreement, is accurate and
         complete in all material respects.

3.       VIRUSES. Each party will use commercially reasonable measures to screen
         any software provided or made available by it to the or-her party
         hereunder for the purpose of avoiding the introduction of any "virus"
         or other computer software routine or hardware components which are
         designed (i) to permit access or use by third parties to the software
         of the other party not authorized by this Agreement, (ii) to disable or
         damage hardware or damage, erase or delay access to software or data of
         the or-her party or (iii) to perform any other similar actions.

4.       DISABLING CODES. EDS will not, without informing BuildNet's
         Representative in writing, knowingly insert into the software used by
         it hereunder any code or other device which would have the effect of
         disabling, damaging, erasing, delaying or otherwise shutting down all
         or any portion of the EDS Services or the hardware, software or data
         used in performing the EDS Services. EDS will not invoke such code or
         other device at any time, including upon expiration or termination of
         this Agreement for any reason.

5.       YEAR 2000.

         (a) Deliverables hereunder which are developed by EDS for BuildNet will
         be Year 2000 Compliant, as that term is defined herein). The parties
         acknowledge and agree that the EDS Services do not include, and EDS
         will not be responsible for, any changes, modifications, updates or
         enhancements to any existing software, systems, hardware and related
         equipment, data, interfaces or processes (collectively, "Items") which
         may be necessary so that such Items, either alone or in conjunction
         with or-her Items will be Year 2000 Compliant. For purposes of this
         Agreement, the term "Year 2000 Compliant" means that such Items (i)
         will operate and produce data before, on or after January 1, 2000
         (including taking into effect that such year is a leap year),
         accurately and without delay, interruption or error relating to the
         fact that the time at which and the date on which such software is
         operating is on or after 12:00 a.m. on January 1, 2000, or (iii) will
         accept, calculate, process, maintain, store and out-out, accurately and
         without delay, interruption or error, any function referencing a time
         or date on or after 12:00 a.m. on January 1, 2000, or both, whether
         before, on or after 12:00 a.m. on January 1, 2000, and any time period
         determined or to be determined based on any such times or dates, or
         both. EDS will not be responsible or penalized for any adverse impact
         on BuildNet, the EDS

                                       19
<PAGE>   20

         Services or any performance standards therefor resulting from any Items
         of BuildNet or any third party not being Year 2000 Compliant or from
         any inaccuracies, delays, interruptions or errors as a result of
         receiving data in two digit year date or other formats that are not
         Year 2000 Compliant from other software, systems, hardware and related
         equipment or third parties or as a result of any changes made by
         BuildNet or any third party to the software, being operated by EDS as
         part of the EDS Services.

(b)      Except for third party owned software that EDS acquires on BuildNet's
         behalf and subsequently delivers to BuildNet as either a standalone
         product or as part of a Deliverable hereunder, EDS covenants that
         Deliverables hereunder will maintain the functionality existing as of
         the date of acceptance of such Deliverables by BuildNet taking into
         account any processing, accepting, calculating, writing and outputting
         of times or dates, or both, whether before, on or after 12:00 a.m.
         January 1, 2000, and any time periods determined or to be determined
         based on any such times or dates. or both, and BuildNet acknowledges
         and agrees that EDS will not be responsible for:

         (i)      changes, modifications, updates or enhancements to, and any
         inaccuracies, delays, interruptions or errors caused by, interfaces
         between the Deliverables hereunder and any software or systems which
         are not provided by EDS under this Agreement, and

         (ii)     any inaccuracies, delays, interruptions or errors occurring as
         a result of incorrect data or data from other systems, software,
         hardware, processes or third parties provided in a format that is
         inconsistent with the format and protocols established for the
         Deliverables including date data in two digit format, even if such data
         is required for the operation of the Deliverables; and

         (iii)    any inaccuracies, delays, interruptions or errors occurring as
         a result of data from telecommunications systems.

6.       DISCLAIMER. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS ATTACHMENT
         C, EDS MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,
         REGARDING ANY MATTER, INCLUDING THE MERCHANTABILITY, SUITABILITY,
         ORIGINALITY, FITNESS FOR A PARTICULAR USE OR PURPOSE, OR RESULTS TO BE
         DERIVED FROM THE USE, OF ANY INFORMATION TECHNOLOGY SERVICE, SOFTWARE,
         HARDWARE OR OTHER MATERIALS PROVIDED UNDER THIS AGREEMENT. EXCEPT AS
         OTHERWISE EXPRESSLY PROVIDED IN THIS ATTACHMENT C, EDS DOES NOT
         REPRESENT OR WARRANT THAT THE OPERATION OF ANY SOFTWARE WILL BE
         UNINTERRUPTED, ERROR-FREE OR YEAR 2000 COMPLIANT.

                                       20
<PAGE>   21

                                  ATTACHMENT D

                                   INDEMNITIES

D-1.     CLAIMS RELATING TO PERSONAL INJURY AND PROPERTY DAMAGE.

(a)      GENERAL. EDS and BuildNet each will be responsible for any and all
         claims, actions, damages, liabilities, costs and expenses, including
         reasonable attorneys' fees and expenses (collectively, "Losses"), to
         their respective tangible personal or real property (whether owned or
         leased), and each party agrees to look only to its own insuring
         arrangements (if any) with respect to such Losses. EDS and BuildNet
         each will be responsible for Losses for the death of or personal injury
         to any person (including any employee of either party) and Losses for
         damages to any third party's tangible personal or real property
         (whether owned or leased), in accordance with the law of the
         jurisdiction in which such Loss is alleged to have occurred. Subject to
         SECTION 12 of this Agreement and the procedures set forth below in
         SECTION D-4, each party will indemnify and defend the other party and
         hold the other party harmless from any and all Losses arising out of,
         under or in connection with claims for which the indemnitor is
         responsible under the preceding sentence.

(B)      Waiver of Subrogation. EDS and BuildNet waive all rights to recover
         against each other for any Loss to their respective tangible personal
         property (whether owned or leased) from any cause covered by insurance
         maintained by each of them, including their respective deductibles or
         self insured retentions. EDS and BuildNet will use reasonable efforts
         to cause their respective insurers to issue appropriate waivers of
         subrogation rights endorsements to all property insurance policies
         maintained by each Party. Each Party will give the other written notice
         if a waiver of subrogation is unobtainable or obtainable only at
         additional expense. If the Party receiving such notice agrees to
         reimburse the or-her Pam, for such additional expense, the other Party
         will obtain such waiver of subrogation. If a waiver is unobtainable or
         if a Party elects not to pay the additional expense of a waiver, then
         neither Party nor their insurers will waive such subrogation rights.

D-2.     INFRINGEMENT CLAIMS.

(a)      GENERAL. Subject to SECTION 12 of this Agreement, the limitations set
         forth below in this SECTION D-2 and the procedures set forth below in
         SECTION D-4, EDS and BuildNet each agree to defend the other party
         against any action to the extent that such action is based upon a claim
         that the software (other than third party software) or confidential
         information provided by the indemnitor, or any part thereof, (i)
         infringes a copyright perfected under United States statute, (ii)
         infringes a patent granted under United States law or (iii) constitutes
         an unlawful disclosure, use or

                                       21
<PAGE>   22

         misappropriation of another party's trade secret. The indemnitor will
         bear the expense of such defense and pay any damages and attorneys'
         fees that are attributable to such claim finally awarded by a court of
         competent jurisdiction.

(b)      Exclusions. Neither EDS nor BuildNet will be liable to the other for
         claims of indirect or contributory infringement. In particular, the
         indemnitor will have no liability to the indemnitee, hereunder if any
         claim of infringement is based upon the use of software provided by the
         indemnitor hereunder used in a manner for which the software was not
         designed. Also, the indemnitor will have no liability if the indemnitee
         modifies any software provided by the indemnitor hereunder and such
         infringement would not have occurred but for such modification, or uses
         the software in the practice of a patented process and there would be
         no infringement in the absence of such practice, or such claim arises
         out of the indemnitor's compliance with specifications provided by the
         indemnitee and such infringement would not have occurred but for such
         compliance.

(C)      Additional REMEDY. If software or confidential information becomes the
         subject of an infringement claim under this SECTION D-2, or in the
         indemnitor's opinion is likely to become the subject of such a claim,
         then. in addition to defending the claim and paying any damages and
         attorneys' fees as required above in this SECTION D-2, the indemnitor
         will either (A) replace or modify the software or confidential
         information to make it noninfringing or cure any claimed misuse of
         another's trade secret or (B) procure for the indemnitee the right to
         continue using the software or confidential information pursuant to
         this Agreement. Any costs associated with implementing either of the
         above alternatives will be borne by the indemnitor but will be subject
         to SECTION 12 of this Agreement. If neither option is available to the
         indemnitor through the use of reasonable, diligent efforts, (x) The
         indemnitee will return such software or confidential information to the
         indemnitor and (y) if requested by the indemnitee in good faith, the
         parties will negotiate, pursuant to SECTION 13 of this Agreement but
         subject to SECTION 12 of this Agreement. to reach a written agreement
         on what, if any, monetary damages (in addition to the indemnitor's
         obligation to defend the claim and pay any damages and attorneys' fees
         as required above in this SECTION D-2) are reasonably, owed by the
         indemnitor to the indemnitee as a result of the indemnitee no longer
         having use of such software or confidential information.

D-3.     CLAIMS RELATING TO INTERNET USAGE. Subject to SECTION 12 of this
         Agreement and the procedures set forth below in SECTION D-4, BuildNet
         will indemnify and defend EDS and hold EDS harmless from any and all
         Losses, including those associated with claims for indirect or
         contributory infringement, arising out of. under or in connection with
         any claims relating to (i) content (other than that provided by EDS, if
         any), whether of an editorial, advertising or other nature. (ii) the
         provision, use, alteration or distribution thereof, the accessibility
         thereto or the exchange of information over the Internet in connection
         therewith, including copyright infringement, libel, indecency, false
         light, misrepresentation. invasion of privacy or image or personality
         rights, (iii) statements or other materials made or made available by
         readers of the content or by persons to whom the content is linked at
         the request of BuildNet or (iv) the conduct of BuildNet's business.

                                       22
<PAGE>   23

D-4.     Procedures. The indemnification obligations set forth in this
         ATTACHMENT D will not apply unless the party claiming indemnification:
         (a) notifies the other promptly in writing of any matters in respect of
         which the indemnity may apply and of which the notifying party has
         knowledge. in order to allow the indemnitor the opportunity to
         investigate and defend the matter; provided, however, that the failure
         to so notify will only relieve the indemnitor of its obligations under
         this ATTACHMENT D if and to the extent that the indemnitor is
         prejudiced thereby; and (b) gives the other party full opportunity to
         control the response thereto and the defense thereof, including any
         agreement relating to the settlement :hereof; provided, however, that
         the indemnitee will have the right to participate in any legal
         proceeding to contest and defend a claim for indemnification involving
         a third party and to be represented by legal counsel of its choosing,
         all at the indemnitee's cost and expense. However, if the indemnitor
         fails to promptly assume the defense of the claim, the party entitled
         to indemnification may assume the defense at the indemnitor's cost and
         expense.

         The indemnitor will not be responsible for any settlement or compromise
         made without its consent, unless the indemnitee has tendered notice and
         the indemnitor has then refused to assume and defend the claim and it
         is later determined that the indemnitor was liable to assume and defend
         the claim. The indemnitee agrees to cooperate in good faith with the
         indemnitor at the request and expense of the indemnitor.

                                       23

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