Document:

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                                                                   Exhibit 10.24

James P. Clough
3291 North Buffalo Drive
Las Vegas, NV 89129

Dear Jim:

This letter agreement (the "Agreement") sets forth the terms and conditions of
your employment with PurchasePro.com, Inc. (the "Company"). In consideration of
the mutual covenants and promises made in this Agreement, you and the Company
agree as follows:

1.  Employment.

Commencing as of January 19, 2000 (the "Effective Date"), you will serve as the
Company's Executive Vice President Corporate Development. You will be given such
duties, responsibilities and authority as are appropriate to such position,
including responsibility for mergers and acquisitions and such other duties that
are consistent with your title, as determined by the Chief Executive Officer of
the Company (the "CEO"). Throughout the term of your employment, you will devote
such business time and energies to the business and affairs of the Company as
needed to carry out your duties and responsibilities, subject to the overall
supervision and direction of the CEO. You will report directly to the CEO at all
times during the term of this Agreement.

2.  Term.

The term of this Agreement will commence on the Effective Date and will continue
for two (2) years thereafter. During the term of this Agreement, your employment
with the Company will be "at-will." Either you or the Company can terminate your
employment at any time and for any reason, with or without Cause (as defined in
Section 8) and with or without notice, in each case subject to the terms and
provisions of Section 8.

3.  Salary.

For your services to the Company, you will be paid a base salary, payable in
accordance with the Company's usual payroll practices during your employment, at
an annualized rate of $190,000 per year or at such higher rate as the Company
may determine from time to time. Once the Company has increased such salary, it
thereafter will not be reduced. (The annual compensation specified in this
Section 3, together with any increases in such compensation that the Company may
grant from time to time, is referred to in this Agreement as "Base
Compensation.")

4.  Bonuses.

During the term of this Agreement, you will be eligible for bonuses in amounts
to be determined by the Company in its sole discretion.

5.  Employee Benefits.

During the term of this Agreement, you will be entitled to participate in all
Company employee benefit plans and compensation and perquisite programs made
available to the Company's executives or salaried employees generally. You will
be entitled to four weeks of paid vacation each year, provided that you will not
accumulate unused vacation of more than five weeks.

6.  Expense Allowances; Business Expenses; and Indemnification.

During your employment, the Company will pay you the following expense
allowances: (a) a monthly housing allowance sufficient to cover the expense of
leasing an apartment in the Las Vegas metropolitan area; (b) a $25,000 expense
allowance upon signing this Agreement for your relocation expenses; (c) a
monthly automobile allowance of $1,000; and (d) a monthly cellular telephone
allowance in the amount of $100. During your employment, you will be reimbursed
by the Company for (a) necessary and reasonable travel expenses that you may
incur when commuting from your California vacation home, including, without
limitation, reasonable air travel, parking, and taxis; and (b) reasonable travel
(including 1st class air travel on all flights of over two hours' duration),
entertainment and other business expenses in connection with your duties under
this Agreement.

                                      -1-
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James P. Clough, Esq.
Page 2

During your employment, you will be entitled to indemnification by the Company
to the fullest extent allowed under Nevada law and director & officer insurance
coverage in a customary amount. You and the Company will sign and deliver
counterpart copies of the Company's standard Indemnification Agreement.

7.  Stock Option. You and the Company have entered into a stock option
agreement in the form attached to this Agreement as Exhibit A.

8.  Consequences of Termination of Employment.

      (a) For Cause. If the Company terminates your employment for Cause or
if you voluntarily resign for any reason other than Good Reason (as defined
in Subparagraph (b) below), you only will be entitled to the compensation,
benefits and reimbursements described in Sections 3, 4, 5 and 6 for the
period preceding the effective date of your termination of employment. You
will be entitled to no other compensation, benefits or reimbursements from
the Company. The Company will pay you any amounts owed to you under this
Subparagraph (a) in a lump sum within ten days of the effective date of your
termination.

"Cause" will exist in the event you engage in conduct constituting willful
dishonesty, intentional fraud or persistent gross negligence, in each case in
the performance of your duties to the Company under this Agreement, that causes
substantial economic loss to the Company. The Company will give you reasonable
advance written notice that it intends to terminate your employment for Cause.
The written notice will specify the particular acts or failures to act that are
the reason or reasons for your termination for Cause. Within 20 days of your
receipt of the notice, the Company will give you the opportunity to meet with
the Board of Directors of the Company, accompanied by counsel, to defend your
acts or failures to act. The Company will give you 14 working days after the
meeting with the Board to correct such acts or failures to act. If you fail to
correct such acts or failures to act within 14 working days of your meeting with
the Board, your employment automatically will terminate for Cause.

      (b) Other Terminations. If the Company terminates your employment for any
reason other than for Cause, or if your employment terminates for Good Reason or
on account of death or Total and Permanent Disability (as defined in section
2(x) of the Plan), then (i) all stock options that you have been granted will
become fully vested and shall remain exercisable for a period of 12 months
following your termination of employment; (ii) you will be entitled to
compensation, benefits and reimbursements described in Sections 3, 4, 5 and 6
for the period preceding the effective date of your termination of employment;
and (iii) you will be entitled to a severance payment in an amount equal to two
times your annual rate of Base Compensation, as in effect on the date of your
termination. You will not be entitled to any other compensation, benefits, or
reimbursements from the Company. The Company will pay you any amounts owed to
you under this Subparagraph (b) in a lump sum within ten days of the effective
date of your termination.

      Your employment will terminate for "Good Reason" if you resign from the
Company for any one of the following reasons: (i) the Company breaches any of
its obligations to you under this Agreement and such a breach is not cured
within 10 days' written notice by you; (ii) the Company changes your title,
working conditions or duties such that your powers, duties or working conditions
are diminished, reduced or otherwise changed to include powers, duties, or
working conditions which are not generally consistent with your title,
continuing after written notice and 10 days to cure; or (iii) the Company
involuntarily relocates your primary place of employment outside of the Las
Vegas metropolitan area.

      (c) Termination Other than for Cause Following a Change in Control. If the
Company terminates your employment for any reason other than for Cause within
two years following the effective date of a Change in Control (as defined in
section 2(b) of the Plan), then you will be entitled to the payments, full
vesting, reimbursements and benefits described in Subparagraphs (b)(i), (ii) and
(iii) of this Section 8 and, in addition, you shall continue to enjoy benefits
under

                                      -2-
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James P. Clough, Esq.
Page 3

any plans of the Company in which you were a participant described in Section 5
above to the full extent of your rights under such plans during your employment,
for one year after your termination; provided, however, that the benefits under
any such plans in which the you are a participant, including any such
perquisites, shall cease upon reemployment by a new employer; provided, further,
that no benefits shall be provided to the extent such benefits cannot be
obtained under the applicable insurance policy or benefit program covering
active employees. You will not be entitled to any other compensation, benefits,
or reimbursements from the Company. The Company will pay you any amounts owed to
you under this Subparagraph (c) in a lump sum within ten days of the effective
date of your termination.

          (d) Release of Claims.

As a condition to full vesting of your stock options or your receipt of any
benefits or payments under this Section 8, you will be required to execute a
release of all claims arising out of your employment or the termination thereof
including, but not limited to, any claim of discrimination under state or
federal law, but excluding claims for indemnification from the Company under any
indemnification agreement with the Company, its certificate of incorporation and
by-laws or applicable law or claims for directors and officers' insurance
coverage.

           (e) Conditions to Receipt of Payments and Benefits.

In view of your position and access to proprietary information, as a condition
to full vesting of your option or receipt of benefits or payments described in
this Section 8, you will not, without the Company's written consent, directly or
indirectly, alone or as a partner, joint venture, officer, director, employee,
consultant, agent or stockholder (other than as a less than 5% stockholder of a
publicly traded company), within one year of your date of termination from the
Company (i) engage in any activity which is in competition with the business,
products or services of the Company; (ii) solicit or hire any of the Company's
employees, consultants or customers; or (iii) otherwise breach your proprietary
information obligations. You agree to execute and comply with the form of
proprietary information agreement adopted by the Company.

9.  Assignability; Binding Nature.

Commencing on the Effective Date, this Agreement will be binding upon you and
the Company and your respective successors, heirs, and assigns. This Agreement
may not be assigned by you, except that your rights to compensation and benefits
hereunder, subject to the limitations of this Agreement, may be transferred by
will or operation of law. No rights or obligations of the Company under this
Agreement may be assigned or transferred except by operation of law in the event
of a merger or consolidation in which the Company is not the continuing entity,
or the sale or liquidation of all or substantially all of the assets of the
Company, provided that the assignee or transferee is the successor to all or
substantially all of the assets of the Company and assumes the Company's
obligations under this Agreement contractually or as a matter of law.

10.  Governing Law.

This Agreement will be deemed a contract made under, and for all purposes will
be construed in accordance with, the laws of Nevada (without regard to its
choice of law provisions).

11.  Arbitration.

The parties agree that any disputes arising out of or related to this Agreement
will be resolved by using the following procedures:

      (a) The party claiming to be aggrieved will furnish to the other party a
written statement of the grievance and the relief requested or proposed.

      (b) If the other party does not agree to furnish the relief requested or
proposed, or otherwise does not satisfy the demand of the party claiming to be
aggrieved, the parties will submit the dispute to non-binding mediation before a
mediator to be jointly selected by the parties.

                                      -3-
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James P. Clough, Esq.
Page 4

     (c) If the mediation does not produce a resolution of the dispute, the
parties agree that the dispute will be resolved by final and binding
arbitration in Las Vegas, Nevada. The parties will attempt to agree to the
identity of an arbitrator, and, if they are unable to do so, they will obtain
a list of arbitrators from the Judicial Arbitration and Mediation Service and
select an arbitrator by striking names from that list. The arbitrator will
have the authority to determine whether the conduct complained of violates
the rights of the complaining party and, if so, to grant any relief
authorized by law. The arbitrator will not have the authority to modify,
change or refuse to enforce the terms of this Agreement.

      (d) Arbitration will be the exclusive final remedy for any dispute
between the parties, and the parties agree that no dispute will be submitted
to arbitration where the party claiming to be aggrieved has not complied with
the preliminary steps provided for above, provided however, that this Section
10 will not be construed to eliminate or reduce any right the Company or you
may otherwise have to seek and obtain from a court a temporary restraining
order or a preliminary or permanent injunction to enforce the restrictions of
Section 8(e) of this Agreement. The parties agree that the arbitration award
will be enforceable in Clark County Superior Court so long as the
arbitrator's findings of fact are supported by substantial evidence on the
whole and the arbitrator has not made errors of law.

12.  Withholding.

Anything to the contrary notwithstanding, following the Effective Date all
payments made by the Company hereunder to you or your estate or beneficiaries
will be subject to tax withholding pursuant to any applicable laws or
regulations. In lieu of withholding, the Company may, in it reasonable
discretion, accept other provision for payment of taxes as required by law,
provided it is satisfied that all requirements of law affecting its
responsibilities to withhold such taxes have been satisfied.

13.  Entire Agreement.

This Agreement, including the attached Appendix A, contains all the legally
binding understandings and agreements between you and the Company pertaining to
the subject matter of this Agreement and supersedes all such agreements, whether
oral or in writing, previously entered into between the parties.

                                      -4-
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James P. Clough, Esq.
Page 5

14.  Miscellaneous.

No provision of this Agreement may be amended or waived, unless such amendment
or waiver is agreed to by you and the Company in writing. No waiver by you or
the Company of the breach of any condition or provision of this Agreement will
be deemed a waiver of a similar or dissimilar provision or condition at the same
or any prior or subsequent time. In the event any portion of this Agreement is
determined to be invalid or unenforceable for any reason, the remaining portions
will be unaffected thereby and will remain in full force and effect to the
fullest extent permitted by law.

Please indicate your acceptance and understanding of the terms of this Agreement
by signing, dating and returning a counterpart copy to us.

                                                Sincerely,

                                                PurchasePro.com, Inc.

                                                By
                                                  ------------------------------
                                                    Charles E. Johnson, Jr.
                                                    Chairman and Chief Executive
                                                    Officer

Acknowledged and agreed:

-------------------------------------
James P. Clough

Dated:  January ____, 2000

                                      -5-
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                                   APPENDIX A

                          NOTICE OF STOCK OPTION GRANT
                            UNDER THE 1999 STOCK PLAN
                            OF PURCHASEPRO.COM, INC.

      You have been granted the following option to purchase Common Stock of
PurchasePro.Com, Inc. (the "Company") under the 1999 Stock Plan of
PurchasePro.com, Inc. (the "Plan"):

Name of Optionee: James P. Clough

Total Number of Option Shares Granted: 150,000 shares

Type of Option:  Nonstatutory Stock Option

Exercise Price Per Share: $61.94

Grant Date: January 19, 2000

Vesting Commencement Date:  January 19, 2000

      By your signature and the signature of the Company's representative below,
you and the Company agree that this option is granted under and governed by the
term and conditions of the Plan and this Stock Option Agreement, both of which
are attached to and made a part of this document.

OPTIONEE:                                PURCHASEPRO.COM, INC.

                                         By:
-----------------------------               ----------------------------
James P. Clough

                                         Title:
                                               -------------------------

                                      -6-
<PAGE>

                             STOCK OPTION AGREEMENT
                             FOR THE 1999 STOCK PLAN
                            OF PURCHASEPRO.COM, INC.

<TABLE>
<CAPTION>
<S>                   <C>
Tax Treatment         This option does not qualify as an incentive stock option under
                      Section 422 of the Internal Revenue Code of 1986, as amended (the
                      "Code") and will therefore receive tax as a nonqualified stock
                      option (an "NSO").

Vesting               Your option is fully vested and exercisable as to 75,000
                      shares. The remaining shares covered by your option will
                      vest as follows: 1/3 (25,000 shares) after 6 months after
                      the Vesting Commencement Date; another 1/3 (25,000 shares)
                      12 months after the Vesting Commencement Date, and the
                      remaining 1/3 (25,000 shares) 18 months after the Vesting
                      Commencement Date. Your option will become fully vested and
                      exercisable in the event any one of the following occurs:

                      o     The Company involuntarily terminates your employment
                            without Cause (as defined in section 8(a) of your
                            employment agreement).

                      o     You voluntarily resign your employment for Good Reason
                            (as defined in section 8(b) of your employment
                            agreement).

                      o     The Company is subject to a Change in Control (as
                            defined in Section 2(b) of the Plan).

                      o     You die or experience a Total and Permanent Disability
                            (as defined in Section 2(x) of the Plan).

Term                  Except as otherwise provided below, your option expires on
                      January 19, 2010.

Termination for       If the Company terminates your employment for Cause (as
Cause or without      defined in section 8(a) of your employment agreement) or if
Good Reason           you voluntarily resign for any reason other than Good Reason
                      (as defined in section 8(b) of your employment Cause or
                      without agreement), then this option will expire 90 days after
                      the Good Reason effective date of your termination of
                      employment.

Other                 If the Company terminates your employment for any reason
Terminations          other than Cause (as defined in section 8(a) of your
                      employment agreement), or if your employment terminates for
                      Good Reason (as defined in section 8(b) of your employment
                      agreement) or on account of your death or your experiencing
                      a Total and Permanent Disability (as defined in Section
                      2(x) of the Plan), then this option will expire at the
                      close of business at Company headquarters on the date 12
                      months after the effective date of your
                      termination of employment.

Leaves of Absence     For purposes of this option, your service does not
                      terminate when you go on a military leave, a sick leave or
                      another bona fide leave of absence, if the leave was
                      approved by the Company in writing and if continued
                      crediting of service is required by the terms of the leave
                      or by applicable law. But your service terminates when the
                      approved leave ends, unless you immediately return to
                      active work.

Restrictions on       The Company will not permit you to exercise this option if
Exercise              the issuance of shares at that time would violate any law
                      or regulation.
</TABLE>

                                      -7-
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James P. Clough, Esq.
Page 2

Notice of Exercise   When you wish to exercise this option you must notify the
                     Company by completing the attached "Notice of Exercise of
                     Stock Option" form and filing it with the Human Resources
                     Department of the Company. The notice will be effective
                     when the Company receives it. If someone else wants to
                     exercise this option after your death, that person must
                     prove to the Company's satisfaction that he or she is
                     entitled to do so.

Form of Payment      When you submit your notice of exercise, you must include
                     payment of the option exercise price for the shares you are
                     purchasing. You may purchase the shares in any of the
                     following forms:

                     o  Personal check, a cashier's check or a money order.

                     o  Shares of Company stock which have been owned by you or
                        your representative for more than 12 months and which
                        are surrendered to the Company in good form for
                        transfer.

                     o  By delivering on a form approved by the Committee of an
                        irrevocable direction to a securities broker approved
                        by the Company to sell all or part of your option
                        shares and to deliver to the Company from the sale
                        proceeds in an amount sufficient to pay the option
                        exercise price and any withholding taxes. The balance
                        of the sale proceeds, if any, will be
                        delivered to you.

Withholding Taxes    You will not be allowed to exercise this option unless you
Stock Withholding    make arrangements acceptable to the Company to pay any
                     withholding taxes that may be due as a result of the option
                     exercise. These arrangements may include withholding
                     shares of Company stock that otherwise would be issued to
                     you when you exercise this option. The value of these
                     shares, determined as of the effective date of and Stock
                     the option exercise, will be applied to the withholding
                     Withholding taxes.

Restrictions on      By signing this Agreement, you agree not to sell any option
Resale               shares at a time when applicable laws, Company policies or
                     an agreement between the Company and its underwriters
                     prohibit a sale. This restriction will apply
                     as long as you are an employee, consultant or director of
                     the Company or a subsidiary of the Company.

Transfer of Option   Prior to your death, only you can exercise this option. You
                     cannot transfer or assign this option. For instance, you
                     may not sell this option or use it as security for a loan.
                     If you attempt to do any of these things, this option will
                     immediately become invalid. You may in any event dispose of
                     this option in your will. Regardless of any marital
                     property settlement agreement, the Company is not obligated
                     to honor a notice of exercise from your former spouse, nor
                     is the Company obligated to recognize your former spouse's
                     interest in your option in any other
                     way.

Retention Rights     Neither your option nor this Agreement gives you the right
                     to be retained by the Company or a subsidiary of the
                     Company in any capacity. The Company and its subsidiaries
                     reserve the right to terminate your service at any time,
                     with or without cause.

Stockholder Rights   You, or your estate or heirs, have no rights as a
                     stockholder of the Company until you have exercised this
                     option by giving the required notice to the Company and
                     paying the exercise price. No adjustments are made for
                     dividends or other rights if the applicable record date
                     occurs before you exercise this option, except as
                     described in the Plan.

                                      -8-
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James P. Clough, Esq.
Page 3

Adjustments          In the event of a stock split, a stock dividend or a
                     similar change in Company stock, the number of shares
                     covered by this option and the exercise price per share
                     may be adjusted pursuant to the Plan.

Applicable Law       This Agreement will be interpreted and enforced under the
                     laws of the State of Nevada (without regard to their
                     choice-of-law provisions).

The Plan and Other   The text of the Plan is incorporated in this Agreement by
Agreements           reference. This Agreement and the Plan constitute the
                     entire understanding between you and the Company regarding
                     this option.  Any prior agreements, commitments or
                     negotiations concerning this option are superseded.  Only
                     another written agreement, signed by both parties may
                     amend this Agreement.

                      BY SIGNING THE COVER SHEET OF THIS AGREEMENT,
                      YOU AGREE TO ALL OF THE TERMS AND CONDITIONS
                             DESCRIBED ABOVE AND IN THE PLAN.

                                      -9-<PAGE>

                                                                   Exhibit 10.25

                                January 31, 2000

Michael Kennedy
3291 North Buffalo Drive
Las Vegas, Nevada 89129

Dear Mike:

         This letter agreement (the "Agreement") entered into January 31, 2000
sets forth the terms and conditions of your employment with PurchasePro.com,
Inc. (the "Company").

         In consideration of the mutual covenants and promises made in this
Agreement, you and the Company agree as follows:

          1.   EMPLOYMENT. Commencing as of January 31, 2000, you will serve as
Chief Information Officer for PurchasePro.com, Inc. This is a senior
vice-president level position and an officer of the company. You will be given
such duties, responsibilities and authority as are appropriate to such position.
Throughout the term of your employment, you shall devote substantially all of
your business time and energies to the business and affairs of the Company as
needed to carry out your duties and responsibilities, subject to the overall
supervision of the company's President, Christopher P. Carton.

         2.       TERM. The term of this Agreement will commence on your start
of employment date, and shall continue for three (3) years thereafter. During
the term of this Agreement, your employment with the Company will be "at-will."
Either you or the Company can terminate your employment at any time and for any
reason, with or without cause and with or without notice, in each case subject
to the terms and provisions of paragraph 7 below.

         3.       SALARY. For your services to the Company, you will be paid a
base salary, payable in accordance with the Company's usual payroll practices
during your employment, at an annualized rate $ 100,000.00 per year for the
first 60 days and $175,000.00 per year thereafter which shall be reviewed
annually for increase.

         4.       BONUS. During the term of this Agreement, you will be eligible
for a bonus in an amount to be determined by the Company in its sole discretion
based on your performance reviews.

<PAGE>

Page 2

         5.       EMPLOYEE BENEFIT PROGRAMS. During your employment, you will be
entitled to participate in all Company employee benefit plans and compensation
and perquisite programs made available to the Company's executives or salaried
employees generally. This includes family health, dental and disability
insurance consistent with the existing company policy. You will be entitled to
four weeks of vacation per year, provided that you will not accrue unused
vacation of more than five weeks. The corporation shall provide you with an
automobile allowance of $500.00 per month and a cell phone allowance of $100.00
per month.

         6.       STOCK OPTIONS. The Corporation will provide you with the
following options (collectively, "Stock Options") to acquire shares of the
Corporation's Class A Common Stock ("Shares"):

On your start of employment date (Grant day) Stock Options to purchase one
hundred thousand (100,000) Shares at a per share exercise price which shall be
the average between the price at the open of business and price at the close of
business on the grant day (subject to SEC rules and restrictions imposed upon
the officers and major shareholders of the Corporation). The Stock Options will
be exercisable at any time during the ten (10) year period commencing on vesting
of such Stock Options, as follows: (i) Stock Options on sixteen thousand five
hundred (16,500) shares shall vest three months after the grant date, (ii) Stock
Options on sixteen thousand five hundred (16,500) shares shall vest six months
after the grant date, (iii) Stock Options on thirty three thousand (33,000)
shares shall vest eighteen months after the grant date and (iv) Stock Options on
thirty four thousand (34,000) Shares shall vest three years after the grant
date. No vesting shall occur under this Section on or after the termination of
your employment except in the event the company is sold or there is a change of
control of the company or your employment is terminated without cause as
referenced in Section 7(b) below or should you die or be permanently disabled
per section 7(d) in which case you will be fully vested hereunder.

         7.       CONSEQUENCES OF TERMINATION OF EMPLOYMENT.

         (a)      FOR CAUSE. If the Company terminates your employment for Cause
you will be entitled to any unpaid salary, bonus and vacation due you pursuant
to paragraphs 3, 4 and 6 above through the date of termination, provided,
however, you will not be entitled to any other compensation from the Company.
"Cause" will exist in the event you engage in conduct constituting willful
dishonesty, intentional fraud, or persistent gross negligence in each case in
the performance of your duties to the Company that directly causes a substantial
and actual economic loss that is material to the financial condition of the
Company which is not cured within 30 days following notice from the Company.

         (b)      OTHER THAN FOR CAUSE. If the Company terminates your
employment for reasons other than Cause, you will be entitled to any unpaid
salary, bonus and vacation due you pursuant to paragraphs 3, 4 and 6 above
through the date of termination plus twelve (12) months of your base salary in
effect at the date of your termination of employment. You will not be entitled
to any other compensation from the Company. A Constructive Termination shall be
treated as a termination for reasons other than for Cause. "Constructive
Termination" will exist in the event you terminate your employment with the
Company after the Company: (i) materially breaches this Agreement, which breach
is not cured within 10 days following written notice from you; (ii)

<PAGE>

Page 3

changes your title, working conditions or duties such that your powers are
diminished, reduced or otherwise changed to include powers, duties, or working
conditions which are not generally consistent with your title, continuing after
written noticed and 10 days to cure.

         (c)      VOLUNTARY TERMINATION. If you terminate your employment with
the Company of your own volition, such termination will have the same
consequences as a termination for Cause under subparagraph (a) above.

         (d)      DEATH OR DISABILITY. If your employment with the Company
terminates as a result of your death or total and permanent disability, such
termination will have the same consequences as a termination by the Company
other than for Cause under subparagraph (b) above.

         (e)      RELEASE OF CLAIMS. As a condition to the receipt of the
payments described in this paragraph 7, you shall be required to execute a
release of all claims arising out of your employment or the termination thereof
including, but not limited to, any claim of discrimination under state or
federal law, but excluding claims for indemnification from the Company under any
indemnification agreement with the Company, its certificate of incorporation and
by-laws or applicable law or claims for directors and officers' insurance
coverage.

         (f)      CONDITIONS TO RECEIPT OF PAYMENTS AND BENEFITS. In view of
your position and access to proprietary information, as a condition to the
receipt of payments described in this paragraph 7, you shall not, without the
Company's written consent, directly or indirectly, alone or as a partner, joint
venturer, officer, director, employee, consultant, agent or stockholder (other
than a less than 5% stockholder of a publicly traded company), within one year
of your date of termination from the Company (i) engage in any activity which is
in competition with the business, the products or services of the Company, (ii)
solicit any of the Company's employees, consultants or customers, (iii) hire any
of the Company's employees or consultants in an unlawful manner or actively
encourage employees or consultants to leave the Company, or (iv) otherwise
breach your proprietary information obligations. You agree to execute and comply
with the form of proprietary information agreement adopted by the Company.

         8.       ASSIGNABILITY; BINDING NATURE. This Agreement will be binding
upon you and the Company and your respective successors, heirs, and assigns.
This Agreement may not be assigned by you except for the following: (a) that
your rights to compensation and benefits hereunder, subject to the limitations
of this Agreement, may be transferred by will or operation of law, and (b) on or
after the date this agreement is signed you may assign your rights to the stock
options in paragraph 6 above, subject to the conditions of this Agreement, to
any trust established by you or any trust established for your benefit. No
rights or obligations of the Company under this Agreement may be assigned or
transferred except by operation of law in the event of a merger or consolidation
in which the Company is not the continuing entity, or the sale or liquidation of
all or substantially all of the assets of the Company, provided that the
assignee or transferee is the successor to all or substantially all of the
assets of the Company and assumes the Company's obligations under this Agreement
contractually or as a matter of law.

<PAGE>

Page 4

         9.       GOVERNING LAW. This Agreement will be deemed a contract made
under, and for all purposes shall be construed in accordance with, the laws of
Nevada (without regard to its choice of law provisions).

         10.      ARBITRATION. The parties agree that any disputes arising out
of or related to the Agreement shall be resolved by using the following
procedures:

         (a)      The party claiming to be aggrieved shall furnish to the other
party a written statement of the grievance and the relief requested or proposed.

         (b)      If the other party does not agree to furnish the relief
requested or proposed, or otherwise does not satisfy the demand of the party
claiming to be aggrieved, the parties shall submit the dispute to non-binding
mediation before a mediator to be jointly selected by the parties.

         (c)      If the mediation does not produce a resolution of the dispute,
the parties agree that the dispute shall be resolved by binding arbitration in
Las Vegas, Nevada, before a single arbitrator knowledgeable of employment law
under the Commercial Arbitration Rules of the American Arbitration Association.
The arbitrator shall not have the authority to modify, change or refuse to
enforce the terms of this Agreement.

         (d)      Arbitration shall be the exclusive final remedy for any
dispute between the parties, and the parties agree that no dispute shall be
submitted to arbitration where the party claiming to be aggrieved has not
complied with the preliminary steps provided for above, provided however, that
this Section 10 shall not be construed to eliminate or reduce any right the
Company or the Executive may otherwise have to seek and obtain from a court a
temporary restraining order or a preliminary or permanent injunction to enforce
the restrictions of subparagraph 7(f) of this Agreement.

         11.      WITHHOLDING. Anything to the contrary notwithstanding, all
payments made by the Company hereunder to you or your estate or beneficiaries
will be subject to tax withholding pursuant to any applicable laws or
regulations. In lieu of withholding, the Company may, in its sole discretion,
accept other provision for payment of taxes as required by law, provided it is
satisfied that all requirements of law affecting its responsibilities to
withhold such taxes have been satisfied.

         12.      ENTIRE AGREEMENT. This Agreement contains all the legally
binding understandings and agreements between you and the Company pertaining to
the subject matter of this Agreement and supersedes all such agreements, whether
oral or in writing, previously entered into between the parties.

         13.      MISCELLANEOUS. No provision of this Agreement may be amended
or waived unless such amendment or waiver is agreed to by you and the Chief
Executive Officer or President of the Company in writing. No waiver by you or
the Company of the breach of any condition or provision of this Agreement will
be deemed a waiver of a similar or dissimilar provision or condition at the same
or any prior or subsequent time. In the event any portion of this Agreement

<PAGE>

Page 5

is determined to be invalid or unenforceable for any reason, the remaining
portions shall be unaffected thereby and will remain in full force and effect to
the fullest extent permitted by law.

         Please indicate your acceptance and understanding of the terms of this
Agreement by signing and dating below.

                                            Sincerely,

                                            PURCHASEPRO.COM, INC.

                                            By
                                               --------------------------------
                                               Christopher P. Carton, President

ACKNOWLEDGED AND AGREED:

--------------------------------
Michael Kennedy

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